"K" Line

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has been selected as a constituent of the “FTSE4Good Index Series”, one of the leading global indices for ESG investing, for the third year straight and 20^th time in total. “K” LINE has also been listed as a constituent of “FTSE Blossom Japan Index” for seven years in a row and “FTSE Blossom Japan Sector Relative Index for the third consecutive year respectively, since those indices were initially launched.

Created by the global index provider FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company), the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices, selecting 1,158 companies from developed countries including 263 Japanese companies, and 714 companies from emerging countries. On the other hand, FTSE Blossom Japan Index and FTSE Blossom Japan Sector Relative Index reflect the performance of Japanese companies that demonstrate strong ESG practices (346 companies and 662 companies are selected respectively out of 1,373 constituents of FTSE Japan All Cap Index). These indices have been adopted as a benchmark of ESG investing by Government Pension Investment Fund (GPIF) in Japan. Those indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.

“K” LINE has been addressing sustainability as a priority issue of its corporate management and advancing various initiatives　through its business to contribute to solving various social issues, including environmental issues such as reducing emission/decarbonization of both its own and society, as well as protection of biodiversity. Going forward, “K” LINE will continue to pursue growth opportunities and greater corporate value, creating social values through proactive sustainability efforts.

The “K” LINE Group conducted worldwide cleanup activities during a period before and after World Oceans Day* on June 8, with employees from Group companies joining voluntarily, for the second time following last year.

The Group’s businesses depend on the sea and other natural resources, so we view initiatives to tackle biodiversity conservation in the sea as an important theme in our business activities, along with climate change. The Group started these cleanup activities last year as an opportunity to reconsider marine environmental issues, as the ocean is the main stage for our business activities. This year, more than 330 employees and their families volunteered from 11 Group companies around the world during the roughly two-month period from the end of May to early July around World Oceans Day. They collected garbage on beaches, area around offices, rivers, and other places on land, which is said to account for 70 to 80% of marine plastic. The total volume of garbage collected amounts to about 6,370 liters.

Moving forward, the “K” LINE Group will continue to make every effort to realize one of the Group’s values – contributing to the global environment and a sustainable society – by raising employees’ awareness of environmental conservation through such activities.

* World Oceans Day was established by the United Nations in 2009 to think about and acknowledge the oceans. On this globally recognized day, seaside cleanup activities and educational events are held in more than 100 countries worldwide.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that HAMBURG HIGHWAY and CAPE GARNET, two vessels managed by “K” Line RoRo Bulk Ship Management Co., Ltd., “K” LINE’s in-house ship management company, received the 2023 Best Quality Ship Awards from the Japan Federation of Pilots’ Associations (JFPA). *¹

The Best Quality Ship Awards were founded in 2003 with the aim of enhancing awareness of not only safe navigation but also the protection of ports and the marine environment. The vessels were evaluated in several aspects, such as the condition of vessels’ boarding arrangements, navigation equipment, and discipline on board, the high-level safety awareness of crew members, and etc.

The JFPA comprehensively evaluated vessels that had requested pilot services in pilotage districts in Japan during the months of September and October 2023, and then presented awards to eight vessels, including two “K” LINE Group managed vessels that they recognized as excellent. Certificates and plaques were presented by the JFPA in the award ceremony held on June 26.

The “K” LINE Group includes “providing safe and optimized services” in its corporate principle and vision. To fulfill its social responsibilities through safety in navigation, “K” LINE Group has established the following three policy pillars. *²

(1) Enhancing management structure for ensuring safety in navigation
(2) Strengthening the ship management structure
(3) Reinforcing the securing and training of maritime technical personnel

The “K” LINE Group will continue to work toward the realization of both social and economic value through excellence in safe navigation and transportation quality management, sustainable growth and the increase of corporate value by supporting the infrastructure of the global  community as a partner trusted by all of its stakeholders.

*¹  Japan Federation of Pilots’ Associations:

Under the revised Pilotage Law, the JFPA was founded by a number of Pilots’ Associations in Japan in 2007.

https://pilot.or.jp/english/e_frame.htm

*²　 “K” LINE’s policy on promoting safe navigation:

https://www.kline.co.jp/en/sustainability/social/safety.html

Kawasaki Kisen Kaisha, Ltd. and its group companies (“K” LINE Group), are pleased to announce that they have provided free ocean transportation of new desks and chairs for students of Santiago Japanese School^*1 (the School) in Santiago, the capital city of Chile. The free transportation was carried out through collaboration among several “K” LINE group companies, including “K” LINE CHILE LIMITADA. (KCL) in Chile which lead the project.

KCL, responded to the request from the School, applying its expertise as a freight forwarder^*2 and comprehensive logistics service provider in Chile. It made a series of arrangements, including ocean transport from Yokohama to San Antonio in Chile where they were unloaded, customs clearance and delivery to the School, so as to ensure the seamless transportation of the desks and chairs.

Within Japan, upon receiving the desks and chairs at the Port of Yokohama, Daito Corporation, another “K” LINE group company, did the customs clearance process and the loading of the desks and chairs onto the vessel. “K” LINE took charge of ocean transport with its car carrier, which regularly calls San Antonio. KCL was responsible for delivering the desks and chairs from the port to the School. The cross-functional teamwork of the “K” LINE Group, specifically Daito Corporation, the “K” LINE car carrier division and KCL, made the seamless transportation of the desks and chairs possible.

The “K” LINE Group hopes its effort will enable Japanese children in Chile who are living away from home to study successfully in a well-equipped environment. The “K” LINE Group, including KCL, will continue to undertake similar initiatives to help raise the next generation of children.

*1             Formerly known as Santiago Japanese Supplementary School, the school opened in 1972 to educate Japanese children. Santiago Japanese School was established in 1982 in the same building. The School relocated to the Vitacura area in 1984. It relocated again to its current location (in the Lo Barnechea area of northeastern Santiago) in 1992, and celebrated its 40th anniversary in 2022. The School is managed by the Fundacion Cultural y Educacional Japonesa established by Camara Chileno Japonesa de Comercio e Industria A.G. It provides a curriculum that is in line with the compulsory education system in Japan.

*2             A company that provides fully integrated comprehensive logistics services, including freight transportation arrangements, customs clearance and insurance arrangements using different modes of transport, such as maritime shipping, air freight and land transportation.

Brussels and Tokyo, 12 June 2024 –Tree Energy Solutions (TES), a global green energy company leading the way in the production of e-NG (electric natural gas derived from green hydrogen), and Kawasaki Kisen Kaisha, Ltd. (“K” LINE), a prominent Japanese logistics company renowned for its diverse fleet, are teaming up with each other to lead the transition towards net-zero greenhouse gas emissions in the maritime sector by 2050.

With a mission to deliver reliable and affordable green energy through giga-scale projects, TES is developing a global portfolio of e-NG production and import projects. e-NG, a green molecule obtained by combining green hydrogen with biogenic or recycled CO2, is poised to revolutionise the decarbonisation of the maritime transport sector. In parallel, “K” LINE is strategically advancing towards 2030 interim milestones, which include transitioning its vessel to cleaner fuels such as hydrogen and e-NG.

“K” LINE and TES are exploring potential collaboration opportunities, including broadening the scope of e-NG partnerships and the various facets of the value chain to accelerate the adoption of cleaner fuels in maritime transport. This collaboration entails blending captured CO2 emissions with green hydrogen to produce e-NG, thereby facilitating the transition to cleaner bunker fuels for “K” LINE’s vessels. Such discussions aim to secure and procure e-NG, a sustainable fuel to meet the “K” LINE’s or its subsidiaries’ bunkering needs in Europe, originating from the TES green energy hub in Wilhelmshaven, Germany.

Moreover, both parties will consider the regulatory landscape surrounding low/non-carbon fuels, carbon intensity, CO2 accounting, certification, and incentive schemes. By such a consideration of supportive regulatory frameworks, “K” LINE and TES aim to bolster the development of e-NG projects, driving forward transition to a more sustainable energy future.

In addition to commercial endeavours, technical collaboration is also on the agenda, encompassing the operation and management of e-NG carriers and Liquified CO2 carriers and the exchange of information relating to CO2 capture and utilisation onboard vessels.

Marco Alverá, CEO and Co-Founder of TES, commented: “The partnership between “K” LINE and TES marks a significant milestone in our collective efforts to drive decarbonisation within the maritime transport sector. By leveraging TES’ expertise in green fuels and “K” LINE’s commitment to decarbonise long-haul shipping, we aim to pioneer cleaner and more efficient maritime operations, setting a precedent for the industry worldwide.”

Satoshi Kanamori, Managing Executive Officer of “K” LINE, commented: “At “K” LINE, we are deeply committed to realizing our vision of a carbon-neutral future for maritime transport. Partnering with TES allows us to combine our strengths and resources to accelerate the adoption of e-NG, laying the groundwork for a more sustainable shipping and logistics industry.”

About TES

TES is a global green energy company leading the way in the production of e-NG (electric natural gas derived from green hydrogen). Headquartered in Europe, TES is committed to making reliable and affordable green energy accessible to all by implementing giga-scale projects using a proven, scalable and cost-effective method. With a presence in North America, Middle East, Asia and Australia, the company’s green hydrogen model uses solar and wind energy in low-cost areas with abundant sunlight or wind. The green hydrogen is then combined with climate-neutral CO2 and transformed into e-NG, a renewable molecule, easy to transport and store using existing infrastructure. Through the supply of e-NG to various industries, TES aims to win the climate race ensuring the mass adoption of green molecules across the globe.

www.tes-h2.com

About “K” LINE

“K” LINE, which was established in 1919, is a logistics company with rooted in the shipping industry. It operates a diverse fleet of more than 400 vessels worldwide. “K” LINE has a long history and diversified track record in the ownership and technical management of liquefied gas carriers, having delivered its first LPG carrier in 1974 and its first LNG carrier in 1983. In addition, “K” LINE is engaged in a number of peripheral businesses, including LNG bunkering in Japan and Singapore, and is also actively involved in expanding its LCO2 transport business. “K” LINE will continue to work towards the realization of low-carbon and carbon-free business operations and society as a whole, with the aim of contributing to the creation of a sustainable society and the enhancement of its corporate value, in accordance with its corporate philosophy of “helping make the lives of people more affluent”.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that the “K” LINE Group Environmental Awards 2024 Ceremony was held on June 7, 2024.

The awards were established to honor and give recognition to outstanding environmental-preservation activities undertaken by both executives and employees working throughout the “K” LINE Group. This year marks the 10th awards ceremony since the establishment of the awards in 2015. We accepted many entries from our group companies both in Japan and overseas. The activities of six companies — one “Grand Award”, four “Excellence Awards” and two “Special Award” — were selected from such standpoints as “originality,” “challenge level,” “degree of contribution,” “continuity” and “potential for pervasiveness”, and they received the awards from our President.

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

GRAND AWARD

Initiatives for reducing fuel consumption in tugboats. (Daito Corporation)

The tugboats operated by Daito Corporation implemented slow steaming operations to reduce fuel consumption and CO2 emissions. In addition to slow steaming, the tugboat “Kagayaki” further reduced fuel consumption by proper trim adjustment (inclination of the vessel), which led to a reduction in fuel consumption of approximately 5%.

EXCELLENCE AWARD

• Drone delivery

 “K” Line Pte Ltd.

Normally, deliveries of supplies to ships are carried out by service boats, but KLPL switched them to drones, so as to reduce GHG emissions, improve operational efficiency, and enhance safety.

• Hull cleaning of car carriers by robot

“K” Line (Deutschland) GmbH

The effect of the cleaning is not only to reduce GHG emissions, but also to protect

Biodiversity by collecting microplastics.

The collected algae are reused to generate biogas.

• Recycling of packaging materials for imported cargo

“K” Line Logistics, Ltd.

Established a scheme to reuse packaging materials in cooperation with related parties

such as customers and delivery companies.

This will lead to cost saving and reduced resource consumption.

• No Print Week

“K” Line America, Inc.

Promoted reduction of paper consumption during the period by going paperless.

Encouraged participation of all employees through tree planting and other efforts.

SPECIAL AWARD 　*Accumulation 10 entries

Daito Corporation

Nitto Total Logistics Ltd.

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

Kawasaki Kisen Group (“K” LINE Group) is pleased to announce that the vessel TEXAS HIGHWAY, managed by “K” Line RoRo Bulk Ship Management Co., Ltd. (“K” Line RoRo Bulk Ship Management), our in-house ship management company,  received the Minister of Land, Infrastructure, Transport and Tourism Award at the Meteorological Memorial Day ceremony on June 3. The award recognizes the vessel’s longstanding contributions to maritime weather observation and reporting, which have greatly advanced the country’s meteorological services.

The Japan Meteorological Agency (JMA) presents the Minister of Land, Infrastructure, Transport and Tourism Award and the Director-General of the Japan Meteorological Agency Award to vessels engaged in maritime weather observation and reporting  every June 1^*1 which is the Meteorological Memorial Day.

The “K” LINE Group will continue to contribute to the development of meteorological services in Japan by providing maritime observation data to the JMA.

*1    Meteorological Memorial Day:

The Tokyo Meteorological Observatory, the JMA’s predecessor, began Japan’s first meteorological and seismological observations on June 1, 1875. To commemorate this event, the Central Meteorological Observatory declared June 1 to be Meteorological Memorial Day in 1942. The annual Meteorological Memorial Day ceremony honors individuals and organizations that have significantly contributed to meteorological services. This year marks 149 years since the Tokyo Meteorological Observatory began its observations.

[TEXAS HIGHWAY receiving the Minister of Land, Infrastructure, Transport and Tourism Award]

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) held an online seminar focusing on women in maritime for around 60 female students in maritime college in conjunction with the International Day for Women in Maritime*¹ on May 18.

The seminar, held on May 20, aimed to provide the opportunity to resolve anxiety and questions for women who are considering becoming seafarers. In addition to explaining life onboard for female seafarers and career paths that consider various milestones in life, the seminar also featured a Q&A session for the students hosted by six female seafarers at “K” LINE and based on their real-life experiences.

Female seafarers at “K” LINE work in various fields and build up their careers as they adapt to work at sea and on land (including international posts), maternity leave, and other aspects of life. On the seas, we welcomed the first female “K” LINE ship captain this month who is taking command of an LNG carrier (LAGENDA SURIA).

“K” LINE supports the philosophy of the International Day for Women in Maritime. We will continue our efforts to maintain and improve a safe and comfortable environment where onshore and offshore personnel with diverse values and different nationality, gender can make full use of their skills.

*1. International Day for Women in Maritime

https://www.imo.org/en/MediaCentre/PressBriefings/pages/A32WomenInMaritimeDay2021.aspx

(Reference) Action Plan to Promote the Active Participation of Women and Support Raising of the Next Generation Children

https://www.kline.co.jp/en/sustainability/social/diversity_inclusion/main/01/teaserItems1/0/linkList/0/link/Action%20Plan%20to%20Promote%20the%20Active%20Participation%20of%20Women%20and%20Support%20Raising%20of%20the%20Next%20Generation%20Children.pdf

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) announced today that three “K” LINE Group ship management companies—K Marine Ship Management Pte. Ltd. (KMSM), “K” Line Ship Management (Singapore) Pte. Ltd. (KLSM SGP), and “K” Line LNG Shipping (UK) Ltd. (KLNG UK)—have obtained certification from Nippon Kaiji Kyokai (ClassNK) for the Competency Management System (CMS), a seafarer competency management system being implemented by “K” LINE Group ship management companies. With this system, it will be possible to use it on vessels managed by each company.

The Group’s CMS — which was introduced to facilitate the improvement of seafarer knowledge — not only defines the competency requirements for each seafarer’s position, but also provides specific training and assessment guidelines to achieve those requirements. It includes a variety of training, including onshore training at the “K” Line Maritime Academy training facilities, onboard training programs by auditing and training superintendents*¹ and guidance by senior personnel aboard ship, assessments, and computer-based learning.

The system is operated on the MACK/KONeCT*² digital ship management platforms, custom-designed for KLSM SGP, KLNG UK, and KMSM by SVM Solutions and Technologies Pte. Ltd. (Solverminds). It enables seafarers and onshore staff to seamlessly access their training requirements online, from either aboard ship or ashore, via their platform’s training portal.

Through the use of this system, we clarify the required competencies and aim for the following,

• For career advancement both at sea and on land
• To provide equal opportunities regardless of nationality
• To ensure that the right personnel are assigned to the right positions at the right time.

We aim at a safe and comfortable environment where onshore and offshore personnel with diverse values and different nationality, gender can make full use of their skills.

*1. Auditing and training superintendents

Former “K” LINE Group captains or chief engineers, stationed aboard vessels managed by the Group for a certain period of time to provide on-board training and supervision for other seafarers aboard ship.

*2. MACK/KONeCT

Ship management system platforms. MACK is used by KLSM SGP, and KONeECT is used by KMSM. These platforms have many functions serving as integrated solutions, such as a safety control system and safety and quality control, ship inspection management, scheduled maintenance, procurement and training functions.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that we have conducted our first trial use of marine B100 biofuel which was supplied by global energy management company World Fuel Services on car carrier “APOLLON HIGHWAY” operated by “K” LINE.

The marine B100 biofuel was delivered to the vessel at the Belgium port of Zeebrugge on March 31, 2024. After leaving Europe Emission Control Area, the vessel started using the B100 biofuel. The trial was completed on April 30th.

Marine biofuel has the potential to become an environmentally friendly alternative fuel, it will be able to reduce CO2 by about 80-90% in the well-to-wake (from fuel generation to consumption) process without changing current engine specifications. We conduct this trial by using marine B100 biofuel composed of 100% biodiesel.*¹

In “K” LINE Environmental Vision 2050 -Blue Seas for the Future-*², we have set the 2030 interim target of improving CO2 emission efficiency by 50% over 2008, surpassing the IMO target of 40% improvement. Furthermore, we set our new target for 2050 as “The Challenge of Achieving Net-Zero GHG Emissions”. As an action plan, we will continue to work on the introduction of new fuels, which have a low environmental impact and take on the challenge of achieving the targets set forth.

*¹ This marine biofuel uses renewable organic resources such as biomass which don’t utilize as foodstuff and feed crop.

*² “K” LINE Environmental Vision 2050 “Blue Seas For the Future”

As an action plan for GHG reduction, we are introducing zero-emission fuels such as ammonia and hydrogen fuels, as well as carbon-neutral fuels such as bio-LNG and synthetic fuels.

https://www.kline.co.jp/en/sustainability/environment/management.html