NYK puts ESG at the center of business strategy

Japanese shipping major Nippon Yusen Kaisha (NYK) has released the NYK Group ESG Story, presenting detailed activities to advance the integration of Environmental, Social, and Corporate Governance (ESG) into the company’s management strategy.

Illustration. Image Courtesy: Kees Torn on Flickr under CC BY-SA 2.0 license

In the future, NYK Group aims to be a sustainable solution provider that creates new value while maximizing profits and achieving social and environmental sustainability from a long-term perspective.

Illustration. Image Courtesy: Kees Torn on Flickr under CC BY-SA 2.0 license

The ESG strategy also focuses on activities to create new value, human resource and organizational structures to create measures that will strengthen the management foundation to support ESG management.

“I am convinced that precisely those companies able to set out growth strategies sincerely addressing society’s expectations with respect to climate change and other well-known issues are the ones that will survive,” Hitoshi Nagasawa, Executive Chief of ESG Management at NYK, stressed.

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Going forward, the group plans to keep logistics lifelines operational, reduce environmental burden, foster collaboration with stakeholders and drive the evolution of its business.

As part of the newly unveiled strategy, NYK intends to pursue goals in existing and new fields. Existing fields include ensuring safe ship operations and reducing GHG emissions. In the new fields, Japanese shipping company will take on ambitious initiatives in the energy fields and address social issues.

Reflecting on Japan’s pledge to reduce GHG emissions to net zero by 2050, NYK said that the reduction of emissions will be a prerequisite for business continuity. By FY2030, NYK wants to phase out GHG emissions by 30 per cent and by FY2050 by 50 per cent. To achieve this, the group will work together with clients and partners to acquire a competitive advantage through an environment-friendly value chain.

The entire process for achieving environmental targets will encompass fuel conversion, improvement of ships and ship operations, collaboration with clients, digitalization and surveys of new technologies, according to NYK.

As of September 2020, NYK controlled a fleet of 777 ships comprising containerships, bulkers, wood-chip carriers, PCTCs, tankers, LNG carriers and other vessels.