Amid global changes in values and behavior, as well as increasing awareness of the need to reduce the burden of climate change on the environment, “K” LINE considers sustainability management a priority issue for enhancing corporate value over the medium to long term and discusses the issue as necessary at Board of Directors’ meetings. To strengthen our management focus on these issues, we have established the Corporate Sustainability Management Committee and the GHG Reduction Strategy Committee, chaired by Representative Exective Officer, President & CEO.
The Corporate Sustainability Management Committee is enhancing corporate value by reviewing and formulating a promotion system for the “K” LINE Group’s sustainability management.
The general managers of each business group are members of the Sustainability Sub-Committee, a subcommittee under the Corporate Sustainability Management Committee that addresses materialities identified by the Group. The Sustainability Sub-Committee monitors the implementation of initiatives related to materialities and regularly reports on their progress to the Corporate Sustainability Management Committee.
The second committee, the Environmental Sub-Committee is responsible for operating the environmental management system formulated in accordance with the “K” LINE Group Environmental Policy and the standards of the International Organization for Standardization (ISO), and engaging in other environmental activities.
Meanwhile, the GHG Reduction Strategy Committee formulates GHG reduction strategies, primarily focusing on fuel conversion, for the Group in response to the urgent need for various environmental countermeasures. The committee is also responsible for formulating policies for, and overseeing the implementation of, comprehensive response strategies, technical measures such as equipment selection, and preparations for smooth operations.
Specifically, we established three project teams, the CII and 2030 Environmental Target Project Team, the Fleet Decarbonization Project Team, and the Safety and Environmental Technology Project Team, as subcommittees 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.
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Committees |
Month |
Main agenda |
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Corporate Sustainability Management Committee (Number of meetings held: two） |
July |
・Setting KPIs related to material issues |
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・Report on the development of a sustainable procurement system |
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・Revision of Charter of Conduct for the “K” LINE Group Companies and “K” LINE Implementation Guidelines for Charter of Conduct |
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・Participation in the seaweed bed regeneration project |
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December |
・Revision of Charter of Conduct for the “K” LINE Group Companies and “K” LINE Implementation Guidelines for Charter of Conduct |
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・Report on the progress of development of a sustainable procurement system |
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・Trend of mandatory sustainability disclosure |
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・The FuelEU Maritime operation policy |
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・Updating information disclosure based on the TNFD (Task Force on Nature-related Financial Disclosures) framework |
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・Reevaluation of internal carbon pricing applicable to FY2024 investment appraisal |
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Sustainability Sub-Committee (Number of meetings held: two) |
June |
Same agenda as the Corporate Sustainability Management Committee meeting held in July 2024 |
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December |
Same agenda as the Corporate Sustainability Management Committee meeting held in December 2024 |
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Environmental Sub-Committee (Number of meetings held: two) |
December |
・Results of environmental management system (EMS) internal audit |
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・Management review on the environmental management system |
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・Report on chronological changes in environmental impact (CO2 emission efficiency in vessels under “K” LINE’s operation) |
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・Report on chronological changes in environmental impact (total CO2 emissions from the entire “K” LINE Group) |
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・Disclosure based on TCFD (Task Force on Climate-Related Financial Disclosures) and TNFD |
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・Result of the MEPC 82 meeting and future outlook |
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・Progress of EU-ETS and FuelEU Maritime setup |
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March |
・Status of achievement of environmental targets for 2024 |
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・Setting environmental targets for 2025 |
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・Progress of EU-ETS and FuelEU Maritime setup |
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・Results of the ISWG-GHG 18 discussion and future outlook |
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・Results of DNV external audit on our environmental management system |
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・Results of DRIVE GREEN NETWORK audit |
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・Chronological changes in environmental impact (CO2 emissions per ton-mile) |
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GHG Reduction Strategy Committee （Task force for the promotion of vessels that use next-generation fuels） (Number of meetings held: 12) |
May to August |
・Plan for improvement and maintenance of fleet of ships that use next-generation fuel |
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・Plan for introduction of next-generation fuel |
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・Assumption and additional cost of IMO environmental regulations |
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・Approach to FuelEU Maritime |
As a part of our efforts to raise awareness among officers and employees at the “K” LINE Group worldwide, we offered e-learning program on sustainability, covering human rights, environmental issues, sustainable procurement, etc., in fiscal 2023.
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Fiscal 2023 |
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Headquarters(all executives and employees) |
89.2% |
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Group companies in Japan(nominated employees, including persons in charge of sustainability) |
86.4% |
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Group companies overseas(nominated employees, including persons in charge of sustainability) |
93.1% |
