"K" Line

Kawasaki Kisen Kaisha, Ltd. (“K” Line) has been selected again as a constituent of the FTSE Blossom Japan Index, one of the most recognized ESG (Environmental, Social, Governance) index developed by FTSE Russell, wholly owned subsidiary of London Stock Exchange Group, for five years in a row since the index was launched in 2017.　

The FTSE Blossom Japan Index selects Japanese companies that demonstrate strong ESG practices, and as of June 2021, 229 companies have been selected as constituents from among the 1,391 Japanese companies that constitute the FTSE Japan All Cap Index. The index has been adopted as a benchmark of ESG investing by Government Pension Investment Fund (GPIF) in Japan, the world’s largest public pension fund.

We have been addressing sustainability issues, mainly the environmental, and our initiatives are moving into full swing, with the reform of the organization and the promoting system to strengthen our sustainability management, with effect from April 1, 2021, so as to contribute to the solution of social issues, including climate change, thus to fulfill our mission as a lifeline that will support people’s lives and economies in the future.

Specifically, in March 2021, we have launched a next-generation environmentally friendly car carrier fueled by LNG (liquefied natural gas). Part of the construction funding for the vessel was procured through Climate Transition Loan as a first case in Japan.

Furthermore, earlier this month, we have signed a long-term consecutive voyage charter regarding the upcoming new built capesize bulk carrier (210,000 DWT), who will also be fueled by LNG and is scheduled to be delivered in 2024. The vessel aims to further reduce the environmental burden by installing an automated kite system, utilizing wind power, called “Seawing”.

Through our sustainability management, we will continue to contribute to the realization of a sustainable society, as well as strive to promote our own growth strategy and improve our corporate value.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has signed a long-term consecutive voyage charter with JFE Steel Corporation regarding the upcoming new built capesize bulk carrier (210,000 DWT) fueled by liquified natural gas (LNG)

The construction of our first LNG-fueled bulk carrier will be ordered to NIHON SHIPYARD CO., LTD. and the vessel is scheduled to be delivered in 1^st half of 2024.

The vessel is called a “next-generation vessel” coping with environmental issues. It will reduce the emissions of CO₂, by 25 to 30 %, SOx by almost 100%, and NOx by around 85% with the use of LNG instead of conventional heavy fuel oil. Moreover, the vessel reaches more 40% of CO₂ emission reduction in the Energy Efficiency Design Index (EEDI) which fully aligns with the reduction target of the International Maritime Organization (IMO). ^*1“K” LINE will also install “Seawing”^*2, an automated kite system utilizing wind power supplied by Airseas, to increase the effects of decarbonization.

“K” LINE has been promoting a corporative policy of “sustainable management” in terms of environment, society, and economy to satisfy global needs concerning climate change and SDGs continuously now and future. The introduction of the next-generation vessel is one of the projects within this sustainable management approach. It will be a significant step for us to stimulate the well-being of society as an integrated logistics company.

With “K” LINE Environmental Vision 2050^*3, “K” LINE will flexibly and proactively listen to customer demands including environmental issues and find the best solution to contribute to the sustainable development of the society.

Outline of the Vessel

Dimension    ：   approx. LOA 299.99 meters x Breadth 50.00 meters x Depth 25.00 meters x Draft 18.40meters

D/W          ： approx.210,000 tons

G/T           ： approx.110,800

(^*1)   EEDI and Regulations of SOx and NOx

https://www.kline.co.jp/en/csr/environment/regulation.html

(^*2)   June 7, 2019 release:

Installation of “Seawing”, an automated kite system utilizing natural energy.

https://www.kline.co.jp/en/news/csr/csr7510328279625406497/main/0/link/190607EN%20.pdf

(^*3)   “K” LINE Environmental Vision 2050 “Blue Seas For the Future”

https://www.kline.co.jp/en/csr/environment/management.html#002

Kawasaki Kisen Kaisha, Ltd. (hereinafter ”K” LINE), Nippon Gas Line Co., Ltd. (hereinafter NGL) and Ochanomizu University will participate in the New Energy and Industrial Technology Development Organization (NEDO) project, “CCUS R&D and Demonstration Related Project / Large-scale CCUS Demonstration in Tomakomai / Demonstration Project on CO2 Transportation” on consignment from Engineering Advancement Association of Japan (hereinafter ENAA) and promote the development for social implementation of liquified CO2 maritime transportation.

CCUS (Carbon dioxide Capture, Utilization and Storage) is a technology that can capture, effectively utilize and store the CO2 emissions from fossil power generation and industrial processes. CCUS is expected to play a key role in contributing to the achievement of Carbon Neutrality by 2050. “K” LINE, NGL, Ochanomizu University and ENAA will jointly develop technologies for liquefied CO2 marine transportation and contribute to the realization of long-distance / large-scale CO2 transportation enabling cost reduction through the development of CCUS technology in the demonstration project.

“K” LINE has a long history and diversified track-record in ownership and technical management of liquefied gas carriers. Utilizing our expertise in liquefied gas (LNG/LPG) transportation business and know-how accumulated over many years, we are committed to the safe operation of liquefied gas carriers and professional handling of liquefied gas cargoes. Additionally, “K” LINE is participating in “CO₂-Free Hydrogen Energy Supply-Chain Technology Research Association” (HySTRA) and is cooperating in domestic demonstration test of the world’s first liquefied Hydrogen Carrier “SUISO FRONTIER”, as an initiative to realize a carbon-neutral society. Based on such extensive experience of safe navigation and cargo operation of liquefied gas carriers and demonstration project of HySTRA(R1), “K” Line will conduct a safety / environmental evaluation during navigation and cargo operation for the demonstration liquefied CO2 carrier and establish technical guidelines.

The “K” LINE Group is promoting its efforts to reduce greenhouse gas (GHG) emissions in accordance with its “K” LINE Environmental Vision 2050 and will contribute to the realization of a carbon-neutral society through this demonstration project of liquefied CO2 marine transportation.

Kawasaki Kisen Kaisha, Ltd. (hereafter, “the Company”) will account following dividends income on Non-Operating Income of non-consolidated financial results for the fiscal year ending March 31, 2022.

1) Outline of dividends

The Company will receive dividends of about 61 million U.S. Dollars from OCEAN NETWORK EXPRESS PTE. LTD., the affiliate company accounted with the equity method in the first quarter of the current fiscal year. The dividend is scheduled to be received on June 21, 2021.

2) Impact on The Companyʼs business performance

The Company will account aforementioned dividends income on Non-Operating Income of non-consolidated financial results for the fiscal year ending March 31, 2022.

There will not be impact on consolidated financial results at the period, as it is dividends from the affiliate company accounted with the equity method.

“K” Line Group Environmental Awards 2021 Ceremony held online on June 4, 2021.

The awards were established to honor and give recognition to outstanding environmental-preservation-contributive activities undertaken by both executives and employees working throughout the “K” LINE Group according to the direction developed in “K” LINE Environmental Vision 2050. This year marks the 7th awards since establishment of the awards in 2015, and we also have accepted many entries from our group companies both in Japan and overseas. Activities of seven companies have been selected from such standpoints as “originality,” “challenge level,” “degree of contribution,” “continuity” and “potential for pervasiveness”, and have received the awards from our President and CEO, Yukikazu Myochin.

The “K” LINE Group will continue to share environmental preservation activities being addressed within our Group companies broadly in order that we can further advance dissemination and enlightenment of environmental preservation activities as an entire Group effort by the presentation of these “K” Line Group Environmental Awards. Through this emphasis on continuing aggressively to contribute to environmental preservation and biodiversity protection, we should successfully accomplish our mission, i.e., “Passing on a sustainable society and this blue and beautiful ocean to the next generation” expressed in “K” LINE Environmental Vision 2050.

Awardees of the “K” Line Group Environmental Awards are as follows:

(Grand Award)

Recycling a shrink films to reduce cost , industrial wastes and CO2 emissions.

Nitto Total Logistics Ltd

At the CFS warehouse, when receiving loose cargo and/or unstable cargo, shrink film was wrapped around the cargo to prevent from cargo collapsing. It was peeled off during vanning and discarded as industrial waste.

In FY2019, they discharged plastic-based industrial waste seven times during the period from April to December, but by making it possible to recycle, the number of exports to industrial waste in FY2020 was reduced to three times.

(Excellence Award)

• ECO DRIVING TRAINING PROGRAM

(Training on how to drive a trailer that is environmentally friendly and reduces fuel consumption)

Prixcar Services Australia

• Raising employees’ awareness of environmental conservation by issuing environmental reports and participating in social and environmental conservation activities

”K” Line (China) Ltd.

• Raise the crew’s awareness of energy saving by distributing energy-saving stickers

Kawasaki Kisen Kaisha, Ltd.  Advanced Technology Group

(Special Award) 

SEAGATE CORPORATION（20 entries / Second Achievement Award since 2018）

Organizing a Future Vision for a Hydrogen Society and Quantifying Supply and Demand

The Kobe/Kansai Hydrogen Utilization Council (hereinafter, ”Council”), in which Kawasaki Kisen Kaisha, Ltd. (hereinafter ‘“K” LINE) participates as a member, has prepared a report entitled “Kobe/Kansai Hydrogen Utilization Council Report – Organizing a Future Vision for a Hydrogen Society and Quantifying Supply and Demand-”.

Overview　KobeKansai Hydrogen Utilization Council Report

The Council has formulated a future vision for the Kobe/Kansai area, and estimated the potential hydrogen demand, supply volume and price based on this vision. The Council subsequently quantified the hydrogen supply chain around 2030, identified potential issues, and formulated an action plan for realizing its vision.

Through the activities of this council, “K” LINE Group will promote social implementation of CO2 free hydrogen and contribute to the realization of carbon-free society.

COUNCIL MEMBERS

Electric Power Development Co., Ltd., ENEOS Corporation, Iwatani Corporation, The Kansai Electric Power Company, Incorporated, Kawasaki Heavy Industries, Ltd., Kawasaki Kisen Kaisha, Ltd., Kobe Steel, Ltd., Marubeni Corporation, Mitsubishi Power, Ltd., Obayashi Corporation, Panasonic Corporation, Shell Japan Limited (Alphabetized)

SECRETARIAT

Deloitte Tohmatsu Consulting LLC, Iwatani Corporation, Marubeni Corporation (Alphabetized)

Contact for Inquiries

LEADERS OF THE COUNCIL

Iwatani Corporation : Public Relations Dept. Tel：+81-6-7637-3468 (Direct)

Hydrogen Division Tel：+81-6-7637-3458(Direct)

Marubeni Corporation  : Corporate Communications Dept. Tel：+81-3-3282-2435 (Direct)

New Energy Business Development Dept. Tel：+81-3-3282-7896(Direct)

Member of the Council

Kawasaki Kisen Kaisha, Fuel Strategy & Procurement Group  Tel：+81-3-3595-5619 (Direct)

Please be advised that “K” Line Tokyo Head Office, issued the following press release today, please refer to the attached PDF file.

https://www.kline.co.jp/en/news/other/other9162967076542076848/main/0/link/210430EN.pdf

It is also available on the “K” Line website in both English and Japanese.

https://www.kline.co.jp/en/

Kawasaki Kisen Kaisha, Ltd, and Kawasaki Kinkai Kisen Kaisha Ltd. are pleased to announce the agreement to establish a joint venture company (“K” Line Wind Service, Ltd) for the purpose of providing marine related services for offshore wind power business

1. Target and Purpose of “K” Line Wind Service, Ltd.

Japanese Government has announced its Green Growth Strategy for carbon neutrality by 2050. Offshore wind power is a prerequisite to the decarbonization of the electricity sector and it started to promote its supply chain development.

“K” Line Wind Service is established for the target of contributing to offshore wind power development and carbon neutrality of the society by gathering the whole “K” Line group’s worldwide experience and expertise in the offshore vessel operations. “K” Line Wind Service will provide offshore support vessel services with 150T bollard pull Anchor Handling vessel “AKATSUKI” and 6,000 PS Offshore Support vessel “KAIKO” owned and operated by Kawasaki Kinkai Kisen Kaisha group and further expand the expertise to various types of offshore wind vessels.

• Corporate Profile

Company Name “K” Line Wind Service, Ltd.

Address 2-1, Kasumigaseki 3-Chome, Chiyoda-ku, Tokyo

Shareholders Kawasaki Kisen Kaisha, Ltd. 50%, Kawasaki Kinkai Kisen Kaisha, Ltd. 50%

President Yutaka Kuge

• Schedule

Start of Operation to be scheduled as June 1^st, 2021 (Tue) ,subject to approval from relevant authorities.

~ Ensuring safe operation through an organization culture that values openness ~

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has decided to introduce the “K”ARE programme (Note 1) on a full scale utilizing Norway based SAYFR’s (Note 2) insight and gamified learning apps.

In order to achieve safe operation and to continuously improve service quality, “K” LINE believes that a combination of technical and non-technical skills (Note 3) is important. Technical skills refer to professional marine and technical knowledge/skills whereas non-technical skills are about improving communication and collaboration through respect and care for each other.

Through the “K”ARE programme, everyone in the “K” LINE group both onboard and ashore will share its societal mission and values, and develop a truly open culture where each individual can naturally demonstrate leadership regardless of title or background.

By maturing its organizational culture, the group will foster a sense of unity and through continuous efforts to preserve the environment, will deliver safe, high quality and sustainable transportation service that will contribute to society.

(Note 1) “K”ARE programme: https://klinelnguk.com/continuous-improvement/ 

The programme initiated by group subsidiary “K” Line LNG Shipping (UK) Limited in 2015 with the objective of improving service quality through maturing its safety culture. Now recognizing the validity of this initiative, “K” LINE has decided to roll out this programme on a group-wide basis.

(Note 2) SAYFR: https://sayfr.com

A Norway based consulting/SaaS(Software as a Service) company with a unique mix of data (approx. 10 million data points from 200,000 employees working in global organizations) and digital tools such as gamification and simulation learning apps, SAYFR helps its customers shape culture at scale – a culture that turn failures into something that benefits everyone.

(Note 3) Non-technical Skills

Non-Technical Skills are social and interpersonal skills such as communication, teamwork, leadership, situation awareness and decision-making skills.

Learning non-technical skills deeply through the case which can happen on the ship as a part of “K”ARE programme by utilization of gamified educational application in smart phone and tablet.

”K” LINE is pleased to announce that we establish new recycling scheme for used lashing materials, that create and support working opportunity for the challenged people.

Lashing materials are used to tightly secure cars on deck of PCC(Pure Car Carrier) to keep stability while transportation on sea. It is necessary to replace deteriorated lashing materials with new ones on regular basis. We used to treat them as industrial waste, however, with cooperation from Global Technos, Ltd in Yokohama (Note 1) and Daito Corporation (Note 2), recycling process of these materials from Port of Yokohama was newly established since 2016 to reduce environmental burden. All those recycle steps such as disassembling and recycling are consolidated in Kanagawa Pref to minimize running distance by truck to reduce CO2 emission.

In April, we decided to request “Dekkaisora”, non profit organization/self-reliance support facility for the challenged people in Yokohama (Note 3), to participate in disassembling process on this recycling flow at “Seiten”, continuous employment support TYPE B (Note 4) work place, which create employment opportunity for challenged people.

We are considering next step to reuse these lashing materials after damaged belt replaced, moreover, we are planning to invite staff working at “Seiten” to visit our PCC for onboard tour to see how their work actually connect to our business.

“K” LINE group set recycling promotion in our environmental policy and keep continuous effort to make recycling society.

(Note 1)               Global Technos, Ltd : http://www.global-technos.jp/top.html

(Note 2)               Daito Corporation :  https://www.daitocorp.co.jp/

(Note 3)               Dekkaisora, non profit organization : http://www.dekkaisora.jp/

(Note 4)               Continuous employment support TYPE B : Welfare service to offer work place with support for people under 65 years having difficulty in employment at general company. There is no working agreement and no limit for working period.