"K" Line

Kawasaki Kisen Kaisha, Ltd. (“K” Line) is pleased to announce publication of “K” LINE REPORT 2019.

The purpose of the report is to provide all “K” Line stakeholders with a better understanding of the Group’s basic policies and activities for improving our corporate values as well as providing both financial and non-financial information.

This report is composed of the following contents.

“K” Line Group Value Creation : Explains our group’s philosophy, vision and strengths amassed during its history with “Value Creation Model”.
”Special Feature” describes our 100-year history and efforts to improve corporate value.

Value Creation Initiatives : Explains overview of both financial and non-financial information and gives outline of each business as a basis
for Value Creation.

Foundation of Value Creation : Explains ESG Initiatives. In “ESG Interview,” the importance of ESG in corporate management and management issues is discussed by our President.

“K” LINE REPORT 2019 is available on “K” Line’s website at :

https://www.kline.co.jp/en/ir/library/report.html

Kawasaki Kisen Kaisha, Ltd. (“K” Line) has been selected again as an Asia Pacific Index component of the Dow Jones Sustainability Indices (DJSI), one of the leading global indices for ESG investing (*), for the 9th consecutive year since 2011.

DJSI, jointly operated by S&P Dow Jones Indices LLC of the United States and Robeco SAM AG of Switzerland, measures the performance of companies in terms of economic, environmental and social criteria, through a corporate sustainability assessment, and only includes companies with remarkable performance. Among those indices, Asia Pacific Index selects 148 companies in the Asia-Pacific developed region (including 76 Japanese companies) as components, as a result of sustainability assessment of 600 largest companies in the region. Launched in 1999, DSJI is one of the first global sustainability benchmarks for investors which integrate sustainability consideration into their portfolios.

We have raised ESG as one of the important initiatives in our medium-term management plan. We will continue striving to fulfill our social responsibility through our business activities and contribute to sustainable progress of the society.

*ESG investing describes an investment strategy which takes account of enterprises’ social, ethical and environmental aspects as well as financial performance.

In order to cooperate with project “Zero Emission Tokyo” (note 1) which aims for not emitting CO2 that is being tackled by Tokyo Metropolitan Government (TMG), on Sept. 6,　“K” Line offered 3,628 tons of CO2 reduction credit which is based on the “Tokyo Cap-and-Trade Program” (note 2) as a donation to TMG. Please see website of TMG’s Environment Bureau (note 3) for details about the project.

In our medium-term management plan, we have set ESG (Environment, Society and Government) initiatives as a key management issue. As for the field of the environment, we are advancing measures in accordance with “K” LINE Environmental Vision 2050 – Securing Blue Seas for Tomorrow- (note 4). In particular, with regard to tasks for climate change, “CO2 emission reduction of 25% by 2030” which is set in our “K” LINE Environmental Vision 2050, was approved to be scientifically consistent with the level achieving the “Paris Agreement” set binding “2℃ goal” for rise of global temperature and obtained certification (note 5).

In addition, we started activities for promoting the environmental management system “DRIVE GREEN NETWORK (DGN)” (note 6) with 14 affiliates of the “K” Line Group (Phase 1) in 2017, and we have expanded its range to cover our major overseas companies as Phase 3 during our 100^th Anniversary this year.

As an environmental front runner, we will continue to work toward the goal for 2050, aiming for the realization of our marine transportation business being more environmentally low-loaded and highly efficient from which more people throughout the world can benefit.

(note 1) A vision set out by Tokyo Metropolitan Government (TMG): “Zero Emission Tokyo” which aims to make Tokyo a city that does NOT emit CO2 substantially in 2050 by following up 1.5℃ IPCC special report.

(note 2) A program that TMG imposes a duty to reduce CO2 emission below their own requirement for major-scale businesses (which usage of fuel, heat and electricity calculated as crude oil is more than 1,500 KL per year); giving them permission to make a deal with others by credits which reduce CO2 more than the amount of their duty.

(note 3) Website: Bureau of Environment Tokyo Metropolitan Government

http://www.kankyo.metro.tokyo.jp/en/climate/index.html

(note 4) ”K” LINE Environmental Vision 2050 – Securing Blue Seas for Tomorrow-：CO2 emission by 50% for 2050 as one of the goals

https://www.kline.co.jp/en/news/other/other2292932378768149328.html

(note 5) “K” Line’s CO2 Reduction Target Certified as “Science Based Target (SBT)”（News Release: Feb. 14, 2017）

https://www.kline.co.jp/en/news/other/other6417039574512811908.html

(note 6) DGN: “K” LINE REPORT 2018 P.38 (*2019 version is coming soon)

https://www.kline.co.jp/en/ir/library/report/main/01111/teaserItems1/00/file/KLINE%20REPORT2018E-S.pdf

Kawasaki Kisen Kaisha, Ltd., Tokyo, (hereafter called “K” Line) is proud to announce the delivery of “CORONA DYNAMIC,” a 91,000 DWT-type special coal carrier at Oshima Shipbuilding Co., Ltd. on July 11, 2019.

 CORONA DYNAMIC is same type as “K” Line’s specialized fleet for transport of thermal coal known as the “Corona-series.” The Corona-series consists of epoch-making coal carriers equipped with wide beam and shallow draft, which are the most suitable type to enter ports of Japanese Thermal Power Stations to discharge cargo.

 CORONA DYNAMIC is equipped with latest energy-saving and ecological technology such as Advanced Flipper Fins and Rudder Bulb which promote her propeller efficiency as well as ballast water management system which saves marine ecosystem.

CORONA DYNAMIC will be principally involved in long-term service carrying thermal coal to Hokuriku Electric Power Company’s Thermal Power Plant.

Kawasaki Kisen Kaisha, Ltd. (“K” Line) has been selected again as a constituent of the “FTSE4Good Index Series”, one of the leading global indices for ESG investing (*), for the 17th consecutive year since its initial inclusion in 2003 and “FTSE Blossom Japan Index” for three consecutive years since 2017.

FTSEFTSE4Good Global Index is an index developed by FTSE Russell, wholly owned subsidiary of London Stock Exchange Group, whose constituents are selected by measuring their performance in terms of management and information disclosure utilizing globally-recognized Environmental, Social and Governance (ESG) standards (1,034 companies selected world-wide, including 175 Japanese companies). FTSE Blossom Japan Index reflects the performance of Japanese companies that demonstrate strong ESG practices (179 companies selected). This index has been adopted as a benchmark of ESG investing by Government Pension Investment Fund (GPIF) in Japan.  4Good Global Index is an index developed by FTSE Russell, wholly owned subsidiary of London Stock Exchange Group, whose constituents are selected by measuring their performance in terms of management and information disclosure utilizing globally-recognized Environmental, Social and Governance (ESG) standards (1,034 companies selected world-wide, including 175 Japanese companies). FTSE Blossom Japan Index reflects the performance of Japanese companies that demonstrate strong ESG practices (179 companies selected). This index has been adopted as a benchmark of ESG investing by Government Pension Investment Fund (GPIF) in Japan.  

In addition, we have also been selected as a constituent of the “MSCI Japan Empowering Women Index” (WIN, 224 companies selected) and “S&P/JPX Carbon Efficient Index (1,733 companies selected). Those indices have also been adopted by GPIF as a benchmark of ESG investing.

We have raised ESG as one of the important initiatives in our medium-term management plan. We will continue striving to fulfill our social responsibility through our business activities and contribute to sustainable progress of the society.

*ESG investing describes an investment strategy which takes account of enterprises’ social, ethical and environmental aspects as well as financial performance.

“K”Line  Group has long-term voyage contract with Emirates Global Aluminium(EGA) to carry Bauxite in bulk by capesize vessels, and the first vessel(MV Cape Taweelah) arrived at Port Khalifa, UAE on 23rd June 2019 from loading port at Kamsar, Guinea.

Upon her arrival an inaugural ceremony was held by EGA, where Mr.Abdulla Kalban Managing Director & CEO of EGA, Mr.Abdullah Humaid Al Hameli Executive Vice President of Corporate and Acting CEO of Abu Dhabi Ports, Mr. Atsuo Asano Representative Director of “K”Line and many concerned parties celebrated the first memorable arrival of this fully-laden capesize vessel at GCC port.

EGA is equally-owned by Mubadala Investment Company of Abu Dhabi and the Investment Corporation of Dubai, which is the largest industrial company in UAE outside the oil and gas industry and the largest company jointly owned by the two Emirates. EGA began production at its new Al Taweelah Alumina refinery in April. Alumina refineries process Bauxite ore into Alumina, the feedstock for Aluminium smelters.

“K”Line shall provide the safe and competitive service of the seaborne transportation for the customers’ project.

Kawasaki Kisen Kaisha, Ltd. (hereinafter “K” Line), Taiwan Power Company (hereinafter Taipower), U-Ming Marine Transport Corporation (hereinafter U-Ming), and Kuang Ming Shipping Corporation (hereinafter Kuang Ming) have agreed to establish a new joint venture shipping company, and jointly signed Memorandum of Understanding（MOU）in Taipei, Taiwan on July 1. This new joint venture will own both coal and LNG carriers, and operate them for transporting these raw materials to Taipower.

With respect to managing and transporting coal and LNG, “K” Line has accumulated an abundance of experience and specialized skills.  We, therefore, will devote ourselves to contribute to the safety of Taiwan’s energy requirements by providing our many years of accumulated know-how in ship management and safe ship operations to this new joint venture.

Overview of Joint Venture Company

Kawasaki Kisen Kaisha, Ltd. (“K” Line) is pleased to announce that National Ocean and Atmosphere Administration (NOAA) has honored “K” Line with a gold award for the company’s participation with the high level of compliance rate during 2018 voluntary Vessel Speed Reduction (VSR) Incentive program.

The program aims to protect whales in Santa Barbara Channel and San Francisco Bay Area, and calls for vessels’ speed reduction sailing these waters.

We have been participating in this program since last year and have been highly evaluated for the eco-friendly slow steaming of our car carrier vessels in the waters between July and November last year.

In addition, at the Port of Long Beach, we have been commended for the program called ”Green Flag Program” by the port authority for fourteen consecutive years since 2005, which is asking vessels to reduce its speed within 40 nautical miles (about 74 kilometers) from the port in order to prevent air pollution. In 2018, we achieved a high compliance rate of over 90% for vessels’ slow steaming.

“K” Line Group continues its focus on contributing to environmental and biodiversity conservation through its active participation in environmental initiatives taken by port authorities around the world in order to fulfill our mission to hand down a sustainable society as well as this blue and beautiful ocean to the next generation under “K” Line Environmental Vision 2050.