Odfjell SE Annual Report 2012

and Jannicke Nilsson. The Audit Committee has consisted
of Terje Storeng (chair) and Irene Waage Basili and the
Nomination Committee has since the same date consisted
of Arne Selvik (chair), Christine Rødsæther and Laurence
Ward Odfjell.
CORPORATE SOCIAL RESPONSIBILITY
Odfjell signed up for the UN Global Compact programme
in 2011. The corporate policy was amended accordingly,
and we established an internal working group to ensure
compliance and to facilitate a gradual implementation
of the United Nations' ten principles within the areas of
Human Rights, Labour, Environment and Anti-Corruption.
The first annual report outlining the Company’s efforts to
implement the ten principles was submitted in March 2012.
QUALITY HEALTH, SAFETY AND ENVIRONMENT (QHSE)
Also in 2012 we have continued our strong focus on the
environment through, amongst other, seeking improved
fuel efficiency and thereby reduced emissions. We track
our progress by means of the Carbon Disclosure Project
(CDP), where our particular scope in 2012 was shipping,
the Bergen office and the terminals in Rotterdam and
Houston. The Energy Efficiency Operational Indicator
(EEOI), defined as the amount of CO 2
emitted per unit of
transport work, for the Odfjell fleet was 17.48 grams of CO 2
per tonne cargo transported one nautical mile (g/tnm) in
2012. This is a slight improvement compared to 2011. In
2012 Odfjell operated about half of the fleet in slow speed
mode. This generated a net fuel saving of about 90,000,
tonnes, corresponding to emission savings of approximately
280,000 tonnes of CO 2
, and 4,400,000 tonnes of SO X
. Use of
advanced weather routing contributed to emission savings
of about 5,000 tonnes CO 2
. Further, in 2012 Odfjell started
to carry out hull cleaning and propeller polishing between
scheduled dry-dockings. This, together with installation of
propeller ducts, is expected to give significant fuel reductions
and subsequent lower CO 2
, NO X
and SO X
emissions.
Incidents and compliance issues at our Rotterdam terminal
have pointed to potential weaknesses in part of our governance
model and have served as strong reminders of the
importance of fit for purpose personnel, processes and
assets. Odfjell has therefore further increased our focus on
risk awareness, process safety, use of preventive barriers
and enhancement of our safety culture as part of a proactive
QHSE drive ranging from the Board down to the front-line
operative units. In terms of personal safety indicators,
our shipping-related Lost-Time Injury Frequency (LTIF)
indicator improved marginally from 1.23 in 2011 to 1.21 in
2012. Odfjell Terminals’ LTIF improved more significantly
from 2.90 to 1.30, which is very positive. We had no incidents
involving fatalities in 2012.
Piracy continues to be a concern for shipping. Attacks in the
Gulf of Aden and the Indian Ocean have abated significantly
in 2012, with no successful hijackings since May. Suspicious
approaches, however, are frequently being reported, so
we still use privately contracted security personnel in
the high risk areas. On the other hand, violent attacks on
ships in Western Africa have increased substantially, thus
posing a new threat to ships and their crews. Boarding
robberies of ships in the Malaccan Strait area is also again
a growing concern.
Odfjell Corporate QHSE conducts system audits on operative
and staff units to ensure compliance with corporate and
management level requirements and expectations, in order
to promote a robust QHSE culture and thereby to continually
lift our operating standards and to ensure compliance with
the ever-increasing and changing regulatory demands on
our complex activities. 12 audits were carried out in 2012
while 21 are planned for next year.
Odfjell has recycled seven ships in 2012. To ensure a
controlled process we have a programme in place that
includes obtaining Green Passports for ships that are ready
to be phased out. The programme meets the requirements
of IMO Resolutions A 962 and 179 as certified by Lloyds.
A Green Passport requires mapping of materials and
potential hazards on board that can impact the environment
and working conditions. It also requires follow-up by the
recycling yard. We inspect the yards used to ensure that
they are ISO 30000 certified and comply with respective
IMO guidelines and our own particular requirements as
to QHSE standards.
The Rotterdam terminal has been a major challenge to
Odfjell in 2012. Following several incidents and observations
from Dutch authorities, Odfjell Management decided to
temporarily effectuate a safety shutdown of the terminal
in July 2012. Investigations were initiated to uncover the
root cause of the events that led up to the safety shutdown.
Findings were addressed, corrective and preventive measures
put in place and compliance verified by Odfjell and the
authorities, and during the last quarter tanks have gradually
been put back into service. As of end 2012, about 700,000
cbm were up and running, and the distillation units were
operating at limited capacity. Key issues to sustainable
safe performance as we re-commission the terminal
have been the rigorous and systematic implementation
of preventive maintenance using a state of the art platform.
The terminal has also adopted a state of the art Risk Based
Inspection system to validate mechanical integrity of tanks
and furthermore is using a system for Reliability Based
Mechanical Integrity on other systems.
CORPORATE GOVERNANCE
The framework for the Company’s Corporate Governance is
the Norwegian Code of Practice for Corporate Governance
of 23 October 2012. Odfjell is committed to ethical business
practices, honesty, fair dealing and full compliance with
all laws affecting our business. This includes adherence
to high standards of Corporate Governance. See also the
Board’s statement regarding corporate governance, which
is part of the Group’s annual report. Odfjell’s Corporate
Social Responsibility Policy also encompasses high focus on
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odfjell annual report 2012