"K" Line

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has posted to its official website a video that explains progress in the implementation of the medium-term management plan and the financial results for fiscal 2023. The video is also posted on “K” Line With, a video communication site for “K” LINE Group’s employees.

A video explaining progress in implementing the medium-term management plan and the financial results for fiscal 2023

https://www.kline.co.jp/en/corporate/kline_with.html

In line with the announcement of the financial results, the beginning of this video explains the financial performance for FY2023 and the forecast for FY2024 as well as the raised earnings targets for FY2026, which is the final year of the mid-term management plan, and the new earnings targets for fiscal year 2030.

Furthermore, as one of the important themes of the mid-term management plan, this video explains “K” LINE’s growth strategy that leverage environmental measures based on its long-term management vision. It presents a coherent story of how “K” LINE plans to evolve towards the raised earnings targets for FY2026 and the new earnings targets for FY2030, as disclosed in its latest financial report.

The video details “K” LINE’s efforts to gain a competitive advantage by strategically responding to environmental needs relating to vessel operation as a part of promoting low-carbon/zero carbon emissions for our company. Along with promoting low-carbon/zero carbon emissions for society, it highlights that the demand for the transport of transition energy is expected to grow. Accordingly, new business opportunities will arise to meet this demand and to supporting energy mix conversion.

We will strengthen our partnerships with customers who can share growth opportunities with us by promoting low-carbon/zero-carbon emissions for our company and society. “K” LINE intend to promote business management with an awareness of capital costs, the company as a whole, achieve sustainable growth, and enhance our corporate value.

“K” LINE has posted the video on its official website in addition to “K” Line With to make outside stakeholders more aware of the Company’s activities. “K” LINE also aims to deepen understanding of the medium-term management plan among business sites on land and sea within the Group, globally promote internal communication and information sharing, encourage a sense of solidarity as a source of the Group’s strength, and reinforce the foundation of its business operations.

(A news release related to “K” Line With)

November 17, 2023: Sharing Information within the Group Using Video Communication Site for Employees “K” Line With

https://www.kline.co.jp/en/news/other/other-20231117.html

Kawasaki Kisen Kaisha, Ltd. (“K” LINE), announced today that, together with ITOCHU Corporation(“ITOCHU”), Nihon Shipyard Co., Ltd., MAN Energy Solutions (MAN), Mitsui E&S Co., Ltd., and NS United Kaiun Kaisha, Ltd. have signed a memorandum of understanding (MOU) regarding joint development efforts for the commercialization of ammonia-fueled ships.

Ammonia is advancing as a key zero-emission marine fuel solution and if it becomes possible to commonly use ammonia as a marine fuel, this will greatly contribute to the reduction of greenhouse gas (GHG) emissions. The development and commercialization of ammonia dual fueled engines using ammonia as their primary fuel (ammonia-fueled engines) is essential for widespread use of ammonia-fueled ships. In particular, the ensuring of safety in the handling of toxic ammonia and the confirming of stable operations at sea are important milestones on the road to the social implementation. This MOU is based on the premise that 200,000 deadweight ton class bulk carriers to be built by Nihon Shipyard will be equipped with ammonia-fueled engines being developed by MAN as a pilot project prior to commercialization, and that the necessary operational data will be collected after the delivery of the ships for the commercialization of ammonia-fueled engines and ammonia-fueled ships in cooperation with other parties involved.

The signing of this MOU is an important milestone for the implementation of ammonia-fueled ships, a new challenge being taken on by the maritime industry, and also an important step in the ongoing implementation of the Integrated Project being facilitated by ITOCHU.

ITOCHU and its partners will proceed with the development of the ammonia-fueled engines and ships based on this MOU, aiming to begin social implementation once the engines and ships are ready in accordance with the integrated project for the development and social implementation of ammonia fueled ships selected by the New Energy and Industrial Technology Development Organization (NEDO) in October 2021 to be a part of its publicly solicited Green Innovation Fund Project/Development Project for Next-Generation Ships/Development of Ammonia Fueled Ships*

As a logistics company rooted in the shipping industry, the “K” LINE Group will continue to work to reduce its environmental impact to aim for sustainable growth and greater corporate value based on its corporate principle of “we help make the lives of people more affluent.”

* October 26, 2021: Joint project on “Development of Ammonia-fueled ship” adopted as Green Innovation Fund

https://www.kline.co.jp/en/news/Liquefied_gas/Liquefied_gas-20211026.html

Key Roles

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) registered as an “TNFD Early Adopter” *¹ on March 28, 2024.

The Taskforce on Nature-related Financial Disclosures (TNFD) is an international initiative that establishes a framework for the appropriate assessment and disclosure of risks and opportunities for natural capital and biodiversity. By registering as a “TNFD Early Adopter”, “K” LINE aims to disclose information in line with TNFD recommendations during fiscal year 2024 or 2025.

Our business is dependent on natural capital, mainly from the ocean, and we consider our efforts to address not only climate change issues but also biodiversity conservation, especially in the ocean, to be one of the most important themes in our business activities. Last year, in conjunction with our participation in the TNFD Forum*², as part of our information disclosure based on the TNFD Framework*³, we conducted a comprehensive assessment of risks and opportunities by introducing the LEAP approach*⁴ proposed by the TNFD, to evaluate environmental risks and nature-related impacts of our business and consider appropriate responses as part of our information disclosure under the TNFD framework.

As a TNFD Early Adopter, “K” LINE will enhance information disclosure based on a comprehensive understanding of climate change and natural capital and aim to achieve sustainable growth and increase corporate value as a trusted partner to all stakeholders.

*1. TNFD Early Adopters are companies and organizations that have registered on the TNFD website their intention to disclose information in accordance with the TNFD recommendations and are required to do so for either FY2024 or FY2025.

https://tnfd.global/engage/tnfd-adopters/

*2. The TNFD Forum consists of companies, financial institutions, and research organizations that have joined to support the discussions at TNFD and assist in the establishment of the framework.

November13, 2023: Participation in the Taskforce on Nature-related Financial Disclosures (TNFD) Forum.

https://www.kline.co.jp/en/news/csr/csr-20231113.html

*3. October 17, 2023: Disclosure of information based on the TNFD Framework

https://www.kline.co.jp/en/news/csr/csr-20231017-2.html

*4. It is an integrated evaluation process for managing nature-related risks and opportunities advocated by the TNFD for information disclosure, consisting of four phases: Locate (interface with nature), Evaluate (dependencies and impacts on nature), Assess (significant nature-related risks and opportunities), and Prepare (for responses and reporting).

Please refer to the following website page of “K” LINE for details on LEAP analysis.

https://www.kline.co.jp/en/sustainability/environment/impact_mitigation/main/0119/teaserItems1/05/linkList/0/link/20231011TNFD%20report3_eng.pdf

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and Nippon Gas Line Co., Ltd. (Nippon Gas Line) are pleased to announce the agreement to establish a marketing company for the purpose of providing the seamless and efficient integrated liquefied CO2 transportation service for carbon dioxide capture and storage (CCS) projects over the boundaries.

The Japanese government is advancing the development a business environment to initiate CCS projects by 2030 in its “Basic Policy for Realizing of GX” (*1). They plan to support the research and business development to scale up the CCS value chain at the same time to cost reduction by introducing hub and cluster structure. In relation to its development, cross-border CO2 transportation and the establishment of integrated transportation system by combination of various sized liquefied CO2 carriers has been studied.

“K” LINE group is promoting a variety of initiatives to support the low-carbon and carbon-free of its own operations and society in accordance with its long-term environmental policy, “K” LINE Environmental Vision 2050. “K” LINE will start operation of liquefied CO2 carriers for Northern Lights, the world’s first full-scale CCS project this year. “K” LINE set up a dedicated team for ship management of liquefied CO2 carrier in “K” LINE LNG Shipping (UK) Ltd. and is working to realize safe and reliable operation.

Nippon Gas Line, the only operator specializing in domestic LPG carriers, has accumulated extensive knowledge and experience in the operation, cargo handling, and ship management of pressurized gas carriers for over 60 years. Regarding CCS projects in particular, Nippon Gas Line is undertaking operation and ship management of a liquefied CO2 carrier and developing operation and cargo handling technology for low-temperature and low-pressure liquefied CO2.

“K” LINE and Nippon Gas Line determined to take initiatives in liquefied CO2 shipping for CCS projects. This collaboration of both companies will provide safe, stable and high-quality liquefied CO2 seamless transportation services by leveraging knowledge and experience together. Both companies will contribute to the realization of a carbon-neutral society through CO2 shipping.

*1 “Basic Policy for the Realization of GX” (Released as of Feb 10th, 2023 by METI (Ministry of Economy, Trade and Industry, JAPAN) ：

https://www.meti.go.jp/english/press/2023/0210_003.html

On March 12th, 2024, Satoshi Kanamori (Managing Executive Officer of Kawasaki Kisen Kaisha, Ltd.) took the stage at the 2024 Australia and Southeast Asia Forum on Carbon Capture and Storage to present “K” LINE’s initiatives regarding CCS business development.*¹

At the Forum, he presented the “K” LINE’s challenges on the technical development of liquified CO₂ transportation in low-pressure conditions, the feasibility studies we are implementing together with our valuable customers and consortium members for the establishment of the CCS value chain in the Asia Pacific region, and our activities in the Northern Lights project, the world’s first full value chain CCS Project in Norway. The forum participants from various regions are engaged in lively discussions and the exchange of opinions regarding how to establish an entire CCS value chain in the Asia-Pacific region.

The “K” LINE group is pursuing a variety of initiatives to support low-carbon and carbon-free for both ourselves and society in accordance with its long-term environmental policy “K” LINE Environmental Vision 2050. In the field of CCS, we are planning to participate in the world’s first full-scale carbon capture and storage (CCS) program. We will apply the knowledge we gain through the operation of these vessels*², which will be launched sequentially in Japan and overseas, in the development of future businesses, including this project, with the aim of realizing a sustainable society and enhancing corporate value.

*¹ The HP of GCCSI

https://www.globalccsinstitute.com/

*²The webpage for press releases about “K” LINE’s activities concerning liquefied CO₂ transportation:

https://www.kline.co.jp/en/news/carbon-neutral.html

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce a publication of ESG DATA BOOK 2023.

ESG DATA BOOK has been issued since FY2021 to summarize policies, systems, specific initiatives and relevant data related to “K” LINE Group’s environmental (E), social (S), and governance (G) aspects. It has been published as a tool for dispatch of information to, and for communication with, stakeholders who are interested in the Group’s ESG initiatives.

ESG DATA BOOK 2023 features new contents such as a disclosure in accordance with the framework of the Taskforce on Nature-related Financial Disclosures (TNFD) and a list of key performance indicators (KPIs) for readers’ better understanding of the goals and progress of our sustainability management.

From this fiscal year’s issue, we have changed the layout of the booklet to A4 horizontal for easier viewing on screens such as personal computers and tablets. Furthermore, links are provided on various pages, such as table of contents, to improve operability and searchability.

ESG DATA BOOK 2023 can be found on our website.

HOME > Sustainability > ESG Data

https://www.kline.co.jp/en/sustainability/esg_data.html

Downloads:

https://www.kline.co.jp/en/sustainability/esg_data/main/0111/teaserItems2/0/linkList/00/link/ESGDATABOOK2023_EN.pdf

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has entered into a joint research and development agreement with NIPPON HAKUYO electronics, ltd. ※1) and OPT Gate Co., LTD. (※2) for the development of a new fire detection system for vessels, using optical technology.

In recent years, the transportation of electric vehicles in addition to conventional gasoline vehicles has been increasing in car carriers. It is said that lithium-ion batteries installed in electric vehicles tend to rapidly escalate combustion in the event of a fire, making it crucial to detect fires at an earlier stage and to engage in firefighting activities promptly. This research aims to develop a fire detection system that detects fires earlier and with higher accuracy than existing smoke detectors for vessels, addressing the challenges.

“K” LINE is committed to enhancing safety and ship quality management. We will continue to pursue initiatives for safety in navigation utilizing cutting-edge technologies.

※1  NIPPON HAKUYO electronics, ltd.  (Head office: Kanagawa)

Established in 1981, taking over the business of the marine equipment division of the Oki Electric Industry Group. They manufacture and sell various electronic products for vessels, including fire detection system, surveillance camera system, marine automatic telephone exchange, marine public address, and clock system.

※2 OPT Gate Co., LTD.  (Head office: Tokyo)

Established in 2005, they specialize in manufacturing and design of optical products, with focus on the optoelectronics business. They also provide services such as reliability evaluation, analysis, and technical support for optical products.

Yukikazu Myochin, President & CEO of Kawasaki Kisen Kaisha, Ltd. (“K” LINE) delivered a message in recognition of “K” Line’s placement onto the CDP2023 “A List” of companies. The video message is posted on “K” LINE’s YouTube channel.

“K” LINE YouTube channel　 https://youtu.be/PzzG4Dwib7U

“K” LINE corporate website  https://www.kline.co.jp/en/index.html *accessible from banner

“K” LINE was selected for the “A List 2023”, the top rating, on climate change from CDP, which is a non-profit global organization engaging in activities for realizing a sustainable economy, on February 7, 2024. This is the eighth consecutive year that “K” LINE has been selected as an “A List” company, after being selected an “A List” company in 2016, in recognition of its leadership in transparency and performance in corporate sustainability on climate change. This year, the number of companies certified as “A List” companies for CDP Climate Change totaled 346 worldwide, with 109 Japanese companies including “K” LINE.

In our long-term management vision, we are committed to a smooth energy transition for ourselves and society, and we will promote activities to realize a low-carbon, decarbonized society. We are engaged in the introduction of alternative fuel vessels, energy-saving activities utilizing big data systems, offshore wind power generation support business, hydrogen and ammonia transportation businesses, and CCS (carbon dioxide capture and storage) projects. The “K” LINE Group will aim for sustainable growth and increased corporate value as a partner trusted by all stakeholders.

References

February 7, 2024: “K” LINE Awarded CDP’s “A List 2023” on Climate Change

https://www.kline.co.jp/en/news/csr/csr-20240207.html

“K” LINE Environmental Vision 2050.

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

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has reached an agreement with TOKYO GAS CO., LTD. (“Tokyo Gas”) regarding a joint study of liquefied carbon dioxide (CO2) marine transportation with a view towards achieving carbon dioxide capture and storage (CCS).

The Japanese government believes CCS to be one of the significant methods for achieving carbon neutrality and aims to enable the storage of 120 to 240 million tons of CO2 per year in 2050. The final report of the study group for a long-term CCS roadmap suggests that the use of the promising storage potential overseas is one strong option. This requires the liquefaction of CO2 and marine transportation of the liquefied CO2 to a place suitable for CO2 storage.

The two companies will carry out a simulation of marine transportation of liquefied CO2 to storage sites in Japan and in the Asian-Pacific region for CO2 emitted in the Tokyo metropolitan area, as well as studying its economic efficiency and operations relating to the transportation of liquefied CO2 by ship. Based on the findings of this study, both companies aim to help achieve carbon neutrality in the Tokyo region with various types of carbon management solutions including CCS.

“K” LINE group is promoting a variety of initiatives to support the low-carbon and carbon-free of its own operations and  society in accordance with its long-term environmental policy, “Environmental Vision 2050”. In the field of CCS, we are planning to start the world’s first full-scale carbon capture and storage (CCS) transport from next year. It is expected that liquefied CO₂ carriers will sequentially begin to operate in Japan and overseas in the future. “K” LINE will incorporate knowledge*¹ acquired from operations, including this study, into its future development of businesses with the aim of realizing a sustainable society and increasing its corporate value.

*¹The webpage for the press releases about “K” LINE’s activities concerning liquefied CO2 transportation:

https://www.kline.co.jp/en/news/carbon-neutral.html

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that on March 6, 2024, the company was listed on the “Supplier Engagement Leaderboard” for the sixth consecutive year, the top rating, on “Supplier Engagement Rating” from CDP, which is a non-profit global organization (NGO) engaged in investigating and disclosing environmental information.

The “Supplier Engagement Rating” evaluates the companies’ initiatives for climate change and greenhouse gas emissions throughout the supply chain and ranks the companies in line with their efforts. Our strategies and initiatives were evaluated via the “Supplier Engagement Rating”.

This year 450 companies, including 110 Japanese companies were recognized on the “Supplier Engagement Leaderboard” worldwide. 

Going forward, the “K” LINE Group will continue to enhance information disclosure based on a comprehensive understanding of climate change and natural capital and aim for sustainable growth and increased corporate value as a partner trusted by all its stakeholders.