Odfjell SE Annual Report 2012

SUSTAINABLE BUSINESS
IS GOOD BUSINESS
Odfjell aims to achieve sustainable development for its
investors, customers, employees and the local communities
in which the Company operates by balancing
financial results and corporate social responsibility.
Safety is paramount and the Company actively promotes
a sustainable proactive QHSE culture.
Towards the end of 2011 Odfjell Terminal Rotterdam (OTR)
experienced several incidents including vapour emissions.
Some of the incidents were not properly reported to the
authorities. OTR became a major challenge for Odfjell in 2012
with regard to safety, operations, workload, personnel and
the high level of scrutiny from the authorities and the media.
Corporate Social Responsibility – CSR
CSR Council
In 2011 Odfjell signed up to the UN Global Compact programme
and a Corporate Social Responsibility Council
was established to facilitate gradual implementation of the
United Nations’ ten principles within the areas of Human
Rights, Labour, Environment and Anti-Corruption. In
March 2012 Odfjell submitted its first ‘Communication on
Progress’ report, which is an annual submission outlining
the Company’s work to implement the ten principles to its
stakeholders. The Communication on Progress report can
be viewed at www.odfjell.com.
Quality, Health, Safety and Environmental
Protection (QHSE)
General
No incidents involving fatalities were recorded in 2012.
The lost time injury frequency (LTIF) indicator for Odfjellmanaged
ships was 1.21, compared with 1.23 in 2011,
and was the Company’s best-ever figure. The LTIF for the
terminals was 1.33, compared with 2.90 in 2011, which is
a very positive development.
A number of successful measures were introduced in 2012.
These include risk management, investigation/root cause
analysis training, competency improvement, Hazard and
Operability Studies (HAZOP) and fall protection training.
Odfjell Academy in the Philippines arranged nearly 11,000
course days for more than 3,300 participants. About 2,600
in-house training days were held for 1,900 participants.
Two Officers’ Conferences were held in 2012, one in Bergen
and one in Manila, where topics covered included safety
culture, crewing operations, risk management and a review
of operational, performance and technical issues. A total of
around 2,500 training days were arranged in the terminal
divisions.
Corporate QHSE audits
Corporate QHSE conducts system audits on operative
and staff units to ensure compliance with corporate- and
management level requirements and expectations, promote
a robust QHSE culture and to raise standards. 12 audits
were carried out in 2012, while 21 are planned for next
year. This includes both owned and managed terminals
and shipping units.
Piracy
Piracy is still a concern for shipping in many parts of
the world. In 2012 Somali-based piracy in the open seas
almost disappeared and activities in the Gulf of Aden, the
southern Red Sea, the East African and Yemeni/Omani
coast dropped significantly with no successful hijackings for
several months. However, frequent suspicious approaches
continue to be reported and privately contracted security
personnel are still being used throughout the high risk
area, which extends across the Indian Ocean from the
north end of Madagascar to the southern tip of India and
north into the Arabian Gulf and Red Sea entrances. Piracy
activities have risen in the Gulf of Guinea, in West Africa, and
have recently involved kidnapping and so-called extended
duration robberies where the ship is sailed away and cargo
unloaded. Kidnapping in this area is criminally rather than
politically motivated and the time in captivity is generally
relatively short. Robberies from ships, mostly in port or at
anchor, are also increasingly being reported in the East
Asia region, particular in Indonesia.
Environment
Carbon Disclosure Project – CDP
In 2012 Odfjell’s response to the annual Carbon Disclosure
Project covered the shipping business, Company headquarters
and the terminals in Rotterdam and Houston.
The total CDP footprint in 2012 was on a par with in 2011
and the majority of the emissions came from fuel used by
ships. There was a 4% increase in emissions from ships in
2012 compared with 2011 caused by a rise in the number of
vessels in the fleet from 91 in 2011 to 104 in 2012. The CDP
score in 2012 was 68, which is close to the average score
for all Nordic companies. This represented an improvement
of 6.3% compared with 2011 when the score was 64. The
maximum score is 100.
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odfjell annual report 2012