Responsible Business
Freight
As responsible freight operators, we are committed to working closely with industry partners to shape a more sustainable maritime sector.
In 2022, we took important steps forward in our sustainability journey, broadening our analysis spectrum with regard to Energy Saving Devices (ESDs), deepening our understanding and use of alternative fuels for the industry, and strengthening our team working on sustainable freight projects. We also delivered our first independently verified Sea Cargo Charter emissions report together with other leading industry players.
Working with Shipowners
New regulations pertaining to how vessels are built and used are also coming into play.
From January 1, 2023, International Maritime Organization (IMO) Energy Efficiency Existing Ship regulation applies, imposing a certain level of energy efficiency to the design of every vessel on the water. The Carbon Intensity Indicator (CII) regulation has also been implemented, which means that by April 2024, and using data collected throughout 2023, each vessel will receive a rating (A to E) of their Operational Efficiency.
These two measures will help set the industry on the right decarbonization path and facilitate the uptake of carbon footprint reduction solutions.
Throughout 2022, we worked closely with shipowners in order to help them prepare for compliance with these new regulations. Ensuring our operating profile does not negatively impact fleet efficiency and proactively working alongside shipowners to find new ways to improve our fleet efficiency, LDC has followed collaboration avenues including co-investing in innovative ESDs on our vessels, implementing digital tools within our team, sharing knowledge and analytics on efficiency at sea, and experimenting with alternatives to standard marine fossil fuels.
For example, we partnered with shipowners on a study exploring the possibility to retrofit a wake equalizer duct on a vessel during drydocking, with the goal to improve ship energy efficiency by 3-5%.
Embracing Innovation
At LDC, we see innovation as key to accelerating shipping industry decarbonization.
In 2022, we carried out two successful biofuel trials – one with our Juice fleet in the Atlantic, another for a third-party client in the Pacific.
We also expanded our comparative study of wind-assisted propulsion, adding a fifth new wind-assisted technology to explore, alongside the four we already studied.
Hull smoothness is a key efficiency driver in marine freight, with the potential to reduce energy consumption and CO2 emissions by as much as 3-8%. Yet traditional paints use biocide chemicals to prevent marine growth on the hull, which have been criticized as harmful to the environment. Accordingly, we partnered with Lloyds Register to launch a hull paint comparative study with the goal to discover a paint that delivers maximum performance with minimal ecological drawbacks.
We also continued to investigate different digital solutions to optimize the efficiency of our fleet at sea. Based on daily data collection and onboard sensors, these solutions monitor vessel hull performance, routing adjusted for weather events at sea, day-to-day chartering of the most efficient vessels, and more.
Investing in the Future
Investment in new talent is also essential for the sustainability of any organization. In 2022, we reinforced expertise and capacity in our operations and laytime team, including through the launch of a Freight Operations Graduate Program, and also doubled the team dedicated to investigating, piloting and driving adoption of innovative solutions toward more efficient and, ultimately, sustainable freight operations.
Sea Cargo Charter Report
The initial results from our first independently verified Sea Cargo Charter emissions report allowed us to clearly identify improvement areas in our operations. The report provided a transparent baseline to measure our year-on-year progress going forward, while underlining LDC’s intent to help improve global shipping industry transparency.
These 2022 figures show a decrease in CO2 emissions and an improvement in fleet efficiency, due mostly to market externalities, including a decrease in waiting times at port and a decrease in the world’s average fleet speed.
Targets
Reduce our fleet emissions per ton-mile by 15%, compared to 2017
Completion: 2022
Status: Missed*
*Due mainly to exogenous factors impacting fleet efficiency over the period last 5 years (including port congestion), despite increased control over vessel selection and performance, and investments in efficiency measures, the results of which will be reflected in energy efficiency indicators over the coming years.
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Environment
Responsible in everything we do, we work with stakeholders across our value chains to conserve the natural resources and ecosystems we all depend on.
Social
We are committed to protecting and empowering people working for and with us, supporting communities connected with our activities, and upholding human rights across our supply chains.
Governance
A solid governance framework supports responsible business decisions, guided by our sustainability policies and protocols, and our Group code of conduct.