Overall Approach

We support the ratification of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (“the Hong Kong Convention”), the EU Ship Recycling Regulation (“SRR”) and the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (“Basel”) Convention, which bans export of hazardous waste from OECD countries to non-OECD countries.

We will act in accordance with the SRR in relation for all European flagged vessels and comply with the Basel and Hong Kong Conventions for vessels flagged to other countries to prevent and minimise risk and potential harm to people and the environment caused by ship recycling operations.

We have completed an Inventory of Hazardous Materials (IHM) for all vessels in our fleet and have been issued the necessary certification.

Recycling our vessels

In case an BW Epic Kosan-owned vessel is to be recycled, we will select an authorised recycling facility based on thorough reviews and inspections. The facility must hold a statement of compliance in accordance with the Hong Kong Convention and/or the SRR as applicable and be able to present a statement of compliance with all applicable environmental and social regulations awarded by a competent and independent party and provide maximum level of information.

In areas of environment and health & safety issues, our standards must as a minimum comply with the Hong Kong Convention. We uphold high standards of anti-corruption across all areas of its operations, as demonstrated through our active participation in the Maritime Anti-Corruption Network. To guarantee full compliance with applicable laws and regulations, we remain committed to taking all necessary legal measures to closely monitor the recycling process. In addition, our Whistle-blower procedure provides a confidential and secure channel for internal and external parties to report any potential violations of laws, regulations, BW Epic Kosan’s policies, guidelines, or other serious irregularities.

Sale of Vessels

In cases where the proposed sale of a vessel may possibly lead to near-term scrapping, a clause must be applied to the contract specifying responsible recycling practices. The clause must specify that if the buyer wishes to recycle the vessel, this must be done at a facility in accordance with the applicable Convention.

Furthermore, the clause must specify that the buyer is required to include the same contract clause with its buyer if the vessel is resold within 6 months from the date of purchase. We will monitor the vessel location for 6 months and reserve the right to take legal action.

The same principles apply for vessels in J/V where our ownership is at least 50%.

We are committed to responsible ship recycling practices and ensuring compliance with the regulations of the Hong Kong Convention for all vessels in our fleet, including those being sold. We take the necessary steps to ensure that all relevant documentation, including the Inventory of Hazardous Materials (IHM), is provided to the buyer of such vessels to ensure responsible recycling. Our commitment to sustainability and responsible practices extends beyond vessel ownership and includes all stages of the vessel’s lifecycle.