SRTI: Owners’ Ship Recycling Transparency Picks Up

The first report of the Ship Recycling Transparency Initiative (SRTI) indicates that there is a growing movement stepping up the pressure on shipowners to disclose their approaches to ship recycling.

Illustration; Image Courtesy: Pixabay under CC 2.0 license

Launched on March 6 at Tradewinds Ship Recycling Forum 2019 in Hong Kong, the report presented data collected through a disclosure questionnaire circulated among shipowners as part of the transparency initiative.

Since the SRTI online platform went live in December 2018, eight large shipowners, operating a combined total of more than 1,800 vessels, have voluntarily shared data on their company’s ship recycling policies and practice. All disclosing shipowners have a written policy on ship recycling for their own vessels covering issues related to the environment, labour and human rights in accordance with the Hong Kong Convention.

“We’re seeing increasing pressure on shipowners from key stakeholders including investors, retailers and manufacturers,”Andrew Stephens, Executive Director of the Sustainable Shipping Initiative, said.

“Conversations with cargo owners, lenders and insurance companies have highlighted that they too want more information on ship recycling to inform their decision-making.”

“Shipowners feel the effects of the market as they are being held accountable; the simple act of being transparent about their approach to ship recycling is leading to improved policy, practice and performance,” Stephens added.

The SRTI report also revealed how shipowners implement their responsible ship recycling commitments through the use of standard contracts such as BIMCO’s RECYCLECON for the sale of vessels for green recycling; and/or explicit requirements for ship recycling facilities to follow a specific ship recycling plan. All of disclosing shipowners said they monitor facilities’ compliance during the ship recycling process, mostly by way of ongoing supervision and assigning a company representative, and conduct follow-up onsite and spot checks.