～Earning Highest Rating “A” for Six Consecutive Years～

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that the company was recognized as “A List 2021”, the top rating, on climate change from CDP, which is a non-profit global organization (NGO) engaging in activities for realizing sustainable economy, on December 7. The “A List” is awarded to companies that are evaluated as global leaders in their response to climate change. We have been selected as “A List” for 6 consecutive years.

In this year, due to stricter evaluation criteria, the number of recognized “A List” companies have decreased from 280 in the previous year to 200 in this year, of which 55 are Japanese companies.

We have set environmental measures as one of the major pillars of our management plan. In November 2021, we revised our GHG (greenhouse gas) emission reduction target of the long-term environmental guideline “K” LINE Environmental Vision 2050 -Blue Seas for the Future-(Note1), which we released the revised version in June 2020, and we are taking on the challenge of raising our target even further to net zero GHG emissions by 2050.

We have already introduced the first LNG-fueled car carrier and are also working to introduce various energy efficiency technologies, such as wind power propulsion “Seawing”. In the second half of the 2020 s, we aim to introduce zero emission vessels powered by new fuels and will not only reinforce initiatives for reducing our in-house GHG emissions but also actively support projects aimed at a decarbonized society. These initiatives include support vessels for projects related to the renewable energy field, such as offshore wind power, transportation of new energy sources, such as hydrogen and ammonia, and carbon capture and storage (CCS) transportation.

The “K” LINE Group will put its full effort into the decarbonization of the Company and society with the aim of achieving a sustainable society and enhance corporate value.

(Note1) Please see the following for details of our “K” LINE Environmental Vision 2050.

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

Kawasaki Kisen Kaisha, Ltd.(herein called “K” Line) and SHIN KURUSHIMA DOCKYARD CO., LTD.(herein called Shin Kurushima Dock) have joint AIP for the concept design of Ammonia Fueled Car Carrier from NIPPON KAIJI KYOKAI(herein called ClassNK).

As ammonia fuel does not emit carbon dioxide (CO2) during combustion, it is attracting attention as a next-generation marine fuel that will greatly contribute to the International Maritime Organization’s (IMO) strategic goal of GHG reduction by 2050, which is to reduce total GHG emissions by 50% from the 2008 level.

In this joint study, Shin Kurushima Dock, ClassNK and “K” Line formulated a potential risk assessment and safety measures for using ammonia as a fuel. Based on the safety evaluation of ammonia fuel, Shin Kurushima Dock and “K” Line worked on the development of a ship that can both reduce environmental impact and meet actual operational requirements.

While watching international regulations tendency of Ammonia fueled and infrastructure situation, we are planning to study ammonia fueled vessels in more detail.

“K” Line has revised a part of its long-term environmental guideline, “K” LINE Environmental Vision 2050*1, and has set a new goal for 2050 ” to achieve net zero GHG emissions”.

The world is facing an urgent need to strengthen its measures to climate change, and governments and industries are accelerating their efforts to achieve net zero GHG emissions in 2050. Under such circumstances, our group is challenging to achieve a higher goal of “Net Zero GHG Emissions in 2050”, and this research is one of the initiatives that will lead to the goal in 2050.

As a comprehensive logistics group based on the shipping industry, “K” Line Group will continue to work to reduce its environmental impact in order to realize a sustainable society and increase its corporate value, based on its corporate philosophy of “contributing to the enrichment of people’s lives”.

*1 “K” LINE ENVIRONMENTAL VISION 2050 can be seen in below link:

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

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has obtained certification of “Vessel Seasonal Pest Scheme” (VSPS) from Australia Department of Agriculture, Water and Environment for car carriers under “K” LINE’s operation on November 18^th, 2021.

The Australian Government has reinforced their quarantine at vessels calling at Australian port to prevent invasion of an alien species such as stink bugs which would harm agriculture, and car carriers and cargo will be strictly inspected.

Agricultural pest, like stink bugs that are inspection target invade vessels during loading operation in winter season in the Northern Hemisphere. Stink bugs tend to be more active as the temperature rises near Australian ports.

Therefore, from September to May, which are summertime in Australia, are regarded as high-risk season.

VSPS certification has been granted to shipping company that meets standards set by Australian Government. “K” LINE’s measures (conducting thoroughness of cleaning inside cargo holds before cargo loading, checking cargo inside cargo holds while voyage and so on) have been determined to meet their criteria.

VSPS approval enables to proceed quarantine smoothly when vessels call Australian port, and we expect it will reduce vessels’ schedule delay risk.

“K” LINE continues to make efforts to reduce risks of invasion of an alien species into Australia in compliance with Australian environmental policy and provide high quality and stable services.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that we have conducted a trial use of marine biofuel which was supplied by global integrated energy company bp on car carrier “POLARIS HIGHWAY”.

“K” LINE signed a deal for marine biofuel supply with bp.  The marine biofuel was delivered to the vessel at the Dutch port of Flushing on Nov 6^th, 2021. After leaving Europe Emission Control Area, the vessel conducted the trial use of the marine biofuel.

Marine biofuel (Note 1) 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.

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

In “K” LINE Environmental Vision 2050 -Blue Seas for the Future- (Note2), 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.

(Note1) Biofuel

Biofuels are made from renewable organic resources like biomass. Therefore, although CO2 is emitted after its combustion, those emissions are compensated with the CO2 absorbed during the growth of the biogenic sources used as raw materials.

Furthermore, for its production, waste and residues that need to be disposed of can be reused. Some examples are Used Cooking Oil collected from restaurants and residential households and animal fats. This will avoid the use of raw materials that compete with food or feed market.

Both the biofuels feedstocks origination and its production along the supply chain are sustainability certified following the criteria of international recognized standards so its generation and traceability are guaranteed by independent third party, ultimately contributing to deployment of biofuels as an environmentally friendly alternative to fossil fuels around the world.

(Note2) “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.

We, Kawasaki Kisen Kaisha Ltd. (“K” LINE), have decided to introduce a cloud-based AI-powered “Contract Intelligence Platform”（Evisort）provided by Evisort Inc. (Note1) in our contract ecosystem.

We have invested a significant amount of effort in the management and risk control of the vast and diverse contract documents generated by global business operations. By utilizing Evisort, we will improve operational efficiency by centrally managing contracts in the cloud. It also works with other systems to optimize and standardize complex and fragmented end-to-end contract lifecycles, from contract creation and negotiation to approval and post-contract management including reporting. In addition, we will be able to recognize and manage contract related risks efficiently and effectively by Evisort with cutting-edge AI to enable immediate analysis of marine transportation and logistics specific contracts.

We will strengthen risk management and governance through the utilization of Evisort. At the same time, we will strive to improve corporate value through better use of digital technology and operational efficiency through company-wide BPR, as stipulated in the management plan.　(Note2)

(Note1) Evisort Inc. (https://www.evisort.com/):

Evisort is the leading provider of contract management and AI technology for legal, procurement, sales, finance, and IT teams,founded in 2016 by Harvard Law and MIT alumni. Evisort’s Contract Intelligence Platform delivers rapid ROI in 30 days by centralizing contracts without requiring migration, using AI to track and search metadata and provisions without manual data entry, and enabling teams to draft, redline, approve, sign, report on, and renew contracts. Evisort is headquartered in Silicon Valley and backed by leading strategic and institutional investors including General Atlantic, Vertex Ventures, M12 (Microsoft’s venture fund), Amity Ventures, Village Global, and Serra Ventures.

(Note2) Management Plan (Released on May 10th, 2021)

https://www.kline.co.jp/en/ir/management/strategy.html

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce publication of “K” LINE REPORT 2021.

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

In the message from the CEO, we state our mission to continuously improving corporate value together with society and the global environment conservation by providing safe, environmentally friendly and high-quality service, while fulfilling its social mission as a shipping company to continue providing an indispensable piece of social infrastructure that supports people’s lives.

In the special features, as examples of providing new value, we present roundtable discussions with employees involved in construction of our first LNG fueled car carrier, efforts toward carbon neutrality and exploration of growth markets, and improvement of safety, environmental performance and quality with digital technologies.

We also explain sustainability management, efforts for safety in navigation and environmental protection, human resource management and corporate governance as a basis of sustainable growth.