Sustainability Governance

Amid globally accelerating changes in values and behavior, as well as accelerating GHG reductions and environmental regulations, “K” LINE considers sustainability management as a priority issue for enhancing corporate value over the medium to long term and discusses the issue as necessary at the Board of Directors’ meetings. In April 2021, we reorganized the existing organization and reformed the promotion system for sustainability to ensure it is a key management objective.
   The Corporate Sustainability Management Committee, chaired by the president & CEO, is enhancing corporate value by reviewing and formulating a promotion system for
“K” LINE Group’s sustainability management.
   The Environmental Sub-Committee, a subcommittee under the Corporate Sustainability Management Committee, is responsible for operating the environmental management System (EMS) formulated in accordance with the “K” LINE Group Environmental Policy and the standards of the International Organization for Standardization (ISO). The sub-committee is also responsible for promoting other environmental activities.
   The second sub-committee, the Sustainability Sub-Committee, is responsible for promoting management that will contribute to the sustainability of “K” LINE’s businesses and the enhancement of corporate value. This is achieved by developing ship safety navigation technology, economic navigation technology, and environmental technology, including next-generation fuel compatibility, and through initiatives for low-carbon and zero-carbon businesses, digital transformation (DX) compatibility, and our response to social issues, as well as further reinforcement of governance and compliance.
   In October 2021, we integrated the functions of our Alternative Fuel Project Committee and our Environment/Technology Committee, and established the new GHG Reduction Strategy Committee. We established three project teams, the CII and 2030 Environmental Target Project Team, the Next-Generation Alternative Fuel Promotion Project Team, and the Safety and Environmental Technology Project Team, as sub-committees under the GHG Reduction Strategy Committee. They are responsible for reinforcing the organizational response to urgent issues, such as the Energy Efficient Existing Ship Index (EEXI) and the Carbon Intensity Indicator (CII), accelerating initiatives to develop ships fueled by liquefied natural gas (LNG) and the LNG fuel supply business and examine next-generation fuels and new technologies, and formulating the latest measures for compliance with environmental guidelines, including technical aspects.

Sustainability Management Structure

The following five groups are responsible for the practical implementation of sustainability management: the Corporate Sustainability, Environment Management, IR and Communication Group; the GHG Reduction Strategy Group; the Carbon-Neutral Promotion Group, the Fuel Strategy & Procurement Group, and Advanced Technology Group.