Promotion System for Sustainability

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 the 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 SubCommittee, 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.

As an organization responsible for promoting sustainable management, we are accelerating sustainability efforts through the activities of the Corporate Sustainability, Environment Management, IR and Communication Group, the Carbon-Neutral Promotion Group, the GHG Reduction Strategy Group, the Fuel Strategy & Procurement Group, and the Advanced Technology Group.