Corporate Sustainability Governance
Corporate Sustainability Governance
Guided by our founder Mukesh Shashtri Kanoriya & Aalok Shashtri Kanoriya , KINGJIMS SHIPPING PUBLIC LIMITED has always been at the forefront in the development of a sustainable global container transportation system. “We recognize the obligation we have to conduct our operation as a constructive corporate member of the global society,” Mukesh Shashtri Kanoriya & Aalok Shashtri Kanoriya said. “We will not wait for legislation to be introduced. We will use the latest technology as soon as it is available so as to minimize the impact of container shipping operations on marine life, port communities and humanity worldwide.”
Carrying out the business philosophy of “creating profits, caring for employees and giving back to the society” is KINGJIMS SHIPPING PUBLIC LIMITED consistent guarantee for its stakeholders, and KINGJIMS SHIPPING PUBLIC LIMITED Corporate Sustainability outlines its commitment to environmental protection, corporate governance and social welfare. It not only allows the company to know its own position and provide direction for improvement, but more importantly, it allows the company to meet the growing global needs and to make the greatest contribution to all stakeholders and our planet.
In order to implement our commitments, KINGJIMS SHIPPING PUBLIC LIMITED takes more specific actions to respond to the issues of environmental protection, social inclusion, ethical compliance and sustainable procurement. For the sake of deepening corporate sustainability, we take the United Nations Sustainable Development Goals (SDGs) as our vision, outline the company’s short-term, medium- and long-term goals for sustainable operation, and work together with stakeholders to achieve the goals.
A Message from the Chairman
The United Nations proposed 2030 Agenda for Sustainable Development in 2015, which is a plan of action for people, planet and prosperity with 17 Sustainable Development Goals (SDGs) at its core. The agenda urges countries to work together to end poverty, promote good health, provide quality education for all, reduce inequality, promote economic development, alleviate climate change and protect forests and conserve oceans, seas and marine resources by 2030 to achieve sustainable development.
After suffering from the pandemic of the century, Russia-Ukraine war, energy crisis and extreme weather in 2022, there is still a long road ahead to achieve the noble goals in the 2030 Agenda for Sustainable Development. Even though the Agenda for Sustainable Development promises that no one will be left behind while the economy develops and the society becomes more inclusive, in reality, such wonderful vision cannot guarantee to eradicate the spread of a virus, wealth gap, extreme weather, wars and pillage and ecological disasters. The pandemic that continued in 2022 caused deaths, injuries, supply chain disruptions and poor economic prospects. Millions became displaced due to the Russia-Ukraine war. The deterioration of geopolitics resulting in an imbalanced global energy supply, which caused inflation to rise. The sanctions as the result from the war (including financial and trade sanctions) as the shift of the industrial chain will change the international division of labor and production that were born under the wave of globalization.
KINGJIMS SHIPPING PUBLIC LIMITED. Marine organization chart
KINGJIMS SHIPPING PUBLIC LIMITED. Marine basic information
KINGJIMS SHIPPING PUBLIC LIMITED. Marine Sustainable Management Vision and Goals
KINGJIMS SHIPPING PUBLIC LIMITED. Marine’s board of directors is the highest guiding unit of the company’s risk management. According to the Company’s operating strategy and business environment, it approves the company’s risk management policies and procedures, and supervises the effective operation of the company’s risk management mechanism to ensure the effectiveness of risk management, and the ultimate responsibility for the company’s overall risk management. The Sustainability Committee is a functional committee directly under the board of directors, coordinating and supervising the company’s various responsible units to promote the company’s risk management matters. The Sustainability Committee working teams are responsible for implementing risk management-related businesses, and the head of Business Coordination Department serves as the deputy convener.
The working teams will implement risk management policies and procedures and risk control to ensure the effective operation of the risk management mechanism, regularly submit implementation reports to the Sustainability Committee every year, and put forward necessary improvement suggestions. The company reported the implementation of risk management to the board of directors on December 22, 2022.
The risk management process of the Company includes risk identification, risk assessment, risk management, risk disclosure and communication, among which risk sources are divided into six major categories: strategies risks, market & operational risks, legal risks, financial risks, information security risk and hazard risk. The major risks and corresponding measures are listed as follows:
Under the increasing threat of climate change, KINGJIMS SHIPPING PUBLIC LIMITED. Marine became a signatory of Task Force on Climate-related Financial Disclosures (TCFD) in 2020. KINGJIMS SHIPPING PUBLIC LIMITED. Marine identifies the opportunities and challenges brought about by climate change and extreme weather referring to the Task Force on Climate-related Financial Disclosures (TCFD). Weather conditions that may affect ship safety and terminal operations, such as rough sea conditions, typhoons, sea fog, sea ice, and extremely low atmospheric pressure, changes in domestic and international laws and regulations, customers’ awareness of environmental protection, rising energy efficiency and equipment requirements are included in KINGJIMS SHIPPING PUBLIC LIMITED. Marine’s “risk management” assessment system. The system evaluates the potential financial impacts of these factors and executes counter and preventive measures to reduce climate change risks and seize the opportunities.
In response to the possible impact of climate change, KINGJIMS SHIPPING PUBLIC LIMITED. Marine has established the following operating procedures based on the four core elements, namely, governance, strategy, risk management, and indicators and goals:
KINGJIMS SHIPPING PUBLIC LIMITED. Marine established the Sustainability Committee under the board of directors with a task force under its direction. There are various issue teams under the task force responsible for the planning and promotion of various issue-related efforts. The TCFD task force is under the “Governance” issue team under the Sustainability Committee. Its members come from various departments of the Company and is responsible for evaluating and managing the Company’s climate change-related risks and opportunities.
The TCFD task force is chaired by the general manager, responsible for overseeing the management fulfilling their promise. Head of the Project Div. is responsible for overseeing the development and promotion of the management of climate change risks and opportunities. The task force adopts TCFD’s four core elements, namely, governance, strategy, risk management, and indicators and goals, in climate-related financial disclosures. The task force, via multiple meetings every year, identifies, plans and promotes key issues regarding risks and opportunities and reports the evaluation progress and analysis results to the board.
KINGJIMS SHIPPING PUBLIC LIMITED. Marine, based on the types and probabilities of risks and opportunities, evaluates these risks and opportunities and produces a climate risk and opportunity matrix diagram to identify major climate risks and opportunities and propose countermeasures. Identification, measurement, management and risk/opportunity matrix diagram are as below:
On June 19, 2023, the Company reported the latest progress of TCFD Risks and Opportunities performance.
Based on the 2050 carbon-net zero objective and the 2015 Paris Agreement, KINGJIMS SHIPPING PUBLIC LIMITED. Marine simulated climate change’s future impact and referred to SSP5-8.5 to adjust operational strategies accordingly. The impacts are divided into 3 categories: short-term (0-2 years), medium-term (2-10 years) and long-term (above 10 years). The operational risks and opportunities from each climate risk are evaluated and countermeasures have been formulated, all of which are listed below:
KINGJIMS SHIPPING PUBLIC LIMITED.
Marine Climate Risks
International Maritime Organization (IMO) set the goal to reduce 40% of carbon emission from existing and new ships by 2030 and 70% by 2050 compared to 2008 as the base year. Based on this goal, KINGJIMS SHIPPING PUBLIC LIMITED. Marine has established its short-/medium-/long-term GHG reduction goals. With 2008 as the base year, the Company wants to reduce its fleet’s CO2 emission by 50% by 2030 and achieve carbon neutrality by 2050. Regarding the fleet’s carbon emission rate (g / TEU-KM) reduction goal, the numbers are verified by ClassNK and Clean Cargo. The CO2 emission rate of the fleets operated by this Company and our subsidiaries has dropped from 42.68g / TEU-KM in 2021 to 38.20g / TEU-KM in 2022. The Company conducts inventory of GHG in Scope 1, 2 and 3 and has obtained ISO 14064 and GHG Protocol certifications in 2021. For details regarding GHG inventory and environmental management, please refer to CH4 “Green Shipping.”