MESSAGE FROM MANAGEMENT
I am pleased to present ONE’s fifth annual sustainability report, which covers the calendar year of 2021. While the COVID-19 pandemic has shown nascent signs of subsiding, the recovery from its aftermath has been largely uneven, with countries continuing to struggle from the broader implications of this unprecedented health crisis. At the same time, we enter the year of 2022 in a world polarised by political tensions and socio-economic divisions, which send rippling effects throughout global supply chains.
These are certainly choppy waters ahead, but I am certain that as ONE, we can navigate them successfully, as we did in 2021. I am immensely proud of the team for overcoming this year’s challenges and ensuring the continuity of our vessel operations and liner services. While the persistent and volatile COVID-19 situation posed significant operational disruptions to global port and landside infrastructure, the close teamwork between our Global Headquarters (GHQ), Regional Headquarters (RHQ) and country offices enabled us to take on multiple operational bottlenecks, even as many of us worked from home. Our seamless transition to remote working was in turn made possible by our early adoption of digital technologies and platforms, which continue to permeate our workflows today.
We have made strong progress onto the next phase of our digitalisation roadmap and our processes, both internal and external, are at a high level of digital intensity. This has enabled us to operate more efficiently and elevate customer experience. In 2021, for example, we launched our mobile application which provides an all-in-one platform for customers to complete core transactions and access critical information on-the-go. Looking ahead in 2022, we will be launching a new end-to-end e-commerce platform. Covering everything from scheduling to finance, the platform will serve as a one-stop solution for all of our customers’ shipping needs.
One of the key highlights for ONE in 2021 is launching our Green Strategy, which will be driven by the newly established Green Strategy Department. This is a concrete step towards accelerating our decarbonisation ambition, which we have further cemented with an enhanced GHG emissions reduction target to achieve net zero emissions by 2050. To do this, we have developed a decarbonisation plan covering five focus areas, spanning carbon management, operational efficiency, green investment, alternative fuels and ecosystem building. Initiatives for each focus area are detailed in this report.
Besides continuing to implement measures that enhance our operational and fleet fuel efficiency and ensure we achieve IMO 2030 targets on EEXI and CII, we are embarking on new strategic initiatives to aid us in our net zero transition. These include the adoption of an internal carbon price for future investment decision making and the incorporation of carbon intensity as a key factor throughout the asset lifetime.
To underscore the importance of collaboration in solving the climate change issue, we became a founding partner of the Global Centre for Maritime Decarbonisation, joining hands with six other industry partners and the Maritime and Port Authority of Singapore. ONE will contribute S$10million to support the establishment of the centre, fund maritime-decarbonisation-related research and technology development projects, and collaborate with institutes of higher learning and research institutes. Collectively, our decarbonisation initiatives will help us realise our vision of becoming a global leader in environmentally sustainable shipping.
Ultimately, it is the dedication and support of our people that will determine if we reach our envisioned destination. Developing and engaging our employees so they can reach their professional and personal potential is thus a key focus for us, as we seek to strengthen and diversify our talent base for the crucial years ahead. To this end, we launched a 1 year mini MBA programme with Rutgers Business School to upskill senior management and developed the “Knowing ONE” training onboard to new hires more efficiently. We will continue to prioritise training on leadership and management skills, empower our employees to diversify their skills sets and exposure, and invest in initiatives that promote greater diversity and internationalism in our organisation.
Besides our direct workforce, we are also conscious of the duty of care we owe to our seafarers, who have risked their lives and wellbeing to keep global supply chains stable and cargo moving. To help resolve the crew change crisis keeping seafarers stranded at sea and separated from loved ones, ONE initiated and signed the Neptune Declaration on Seafarer Wellbeing and Crew Change in 2021 alongside 850 fellow signatories across the maritime supply chain.
In the same year, we walked the talk on welfare support by donating £60,000 to The Mission to Seafarers Charity, allowing us to finance a holistic range of initiatives including emergency support and mental health programmes.
Looking ahead to 2022 and beyond, we will continue to innovate and improve upon our fundamentals. Following the launch of our mobile application, we will refocus our efforts on the development and roll-out of the ONE FORCE and e-commerce platforms, offering our customers a comprehensive suite of digital solutions for all their shipping needs. In line with our prevailing environmental philosophy and net zero commitment, we will also double down on our fuel efficiency efforts and lead the way in signalling demand for green fuels in the maritime sector.
I would like to express my sincere gratitude to our employees, customers, shareholders and partners for their unrelenting support throughout these trying times. While materialising zero-emission vessels and fuels at the scale required by the green transition remains a monumental challenge, I am confident that with all hands-on deck, we can work towards a more sustainable and inclusive future.
Chief Executive Officer
VISION AND COMMITMENT
While shipping is universally recognized as one of the most efficient means of commercial transport, the industry still has significant impacts on the environment and society that need to be managed. This is compounded by the rise of international trade driving continued growth in maritime traffic, which is expected to translate to a nearly threefold increase in Greenhouse Gas (GHG) emissions by 2050, according to estimations by the International Maritime Organization (IMO).
As the sixth largest container carrier in the world by fleet size, ONE recognizes the role we can play to mitigate such impacts and advance sustainability efforts in the industry. In 2019, we developed our sustainability strategy to focus our efforts around four areas of priority:
4. Operational Excellence
These priorities are based on the material sustainability topics that drive long-term value for our business and our stakeholders. Underpinning our priorities, is our Business Credo, which forms the core of ONE’s commitment to embedding responsible business practices.
ONE recognizes our role in providing safe and reliable services while meeting our customers’ expectations and maintaining their trust. At the helm of our brand, ONE’s Business Credo enshrines eight principles reflecting how we want to do business.
ONE’s Business Credo
1. Good-faith business activities
2. Environmental and safety initiatives
3. Enhanced security
4. Compliance with laws and ordinances, respect for human rights
5. Exclusion of antisocial activities
6. Disclosure of information and communication with society
7. Social contribution activities
8. Preservation of favourable work environments
ONE’S COMMITMENT TO THE UNITED NATIONS GLOBAL COMPACT (UNGC) PRINCIPLES
With our broad business activities spanning across 120 countries around the world, ONE is inherently confronted with worldwide ethics, human rights, labour and environmental issues, be it from a direct or an indirect manner. In turn, to responsibly mitigate the impacts of our operations on the global environment, ONE has sought to become a member of the Global Compact Network Singapore (GCNS), the local chapter of the United Nations Global Compact (UNGC) network.
As a member, ONE supports the ten UNGC Principles and has pledged to adopt and promote sustainable and responsible business practices. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption.
Sustainable Development Goals (SDGs)
The Sustainable Development Goals are a suite of 17 actionable guidelines for all nations to adhere regardless of their income status, for the promotion of global prosperity and environmental protection. The initiative accentuates the importance of counteracting poverty which is perceived as a barrier to economic growth and emphasises on the tackling of social and environmental issues, as the precursors of the problem.
As a corporate member of Global Compact Network Singapore, ONE commits to the SDGs via the incorporation of the recommended best practices to its business strategies and operations.
While our business activities touch on all 17 interrelated SDGs, directly or indirectly, we have identified four priority SDGs (as shown below) which we believe we can have the biggest impact on through our core business activities as well as through partnering with others. These SDGs are of greatest relevance and alignment to ONE’s business and sustainability priorities, representing opportunities where we can best contribute to sustainable development. In addition, we identified SDGs 4, 5, 8, 12, 16 and 17 as also relevant to ONE’s overall sustainability agenda, constituting secondary focus areas where ONE’s activities can positively contribute to.
Green Vision, Mission and Targets
In April 2022, ONE announced our new Green Strategy. ONE’s Green Strategy sits at the top of our management agenda, as does our commitment to achieve carbon neutrality by 2050, thereby playing an important role in global environmental conservation.
To be a global leader in the realization of environmentally sustainable shipping
We will achieve carbon net-zero shipping in order to protect our planet via lean and agile best practices and open collaboration
Environmental Management System (EMS)
The environmental management system was first established in 2018 to serve as a the backbone of ONE's environmental protection plan, where all employees were guided and trained. Additional training was also conducted for management team and ISO project team members.
ISO 14001 is an international EMS standard set by the International Organization for Standardization (ISO). Requirements for the EMS are stipulated in ISO 14001.
We have received our ISO14001:2015 certificate on 05 Nov 2018 from ClassNK. The validity of this certificate has been renewed until 17 Oct 2024.
Click here to download copy (PDF).
Achievements & Partnerships
Since its establishment in 2018, ONE has clinch several awards and partnerships in her journey towards decarbonisation. We believe in close collaboration and proactive partnerships in order to deliver our sustainability commitments. As such, ONE maintains strong relationships with industry partners, associations, government and business partners.
Certificates & Awards
Industry Membership & Partnerships
(1) Oil Spills Prevention
At ONE we are also prepared for the unexpected. Unplanned events and loss of containment can result in some of the most significant environmental impacts in our industry. To address this risk, our marine safety & quality team developed a Crisis Management Manual that sets out the appropriate response procedures in the event of cargo trouble or maritime accidents such as spills, ship collisions, ship damage, engine trouble, cargo damage and typhoons. In addition, the manual provides clear roles and responsibilities including CEO and reporting procedures when an accident occurs. Our regional managers went through a crisis management training to ensure the emergency preparedness of our organization. Large-scale maritime accident response training will be conducted at least once a year to ensure the effectiveness of the Crisis Management Manual and build capabilities amongst employees, ensuring our staff are equipped to respond to maritime accidents promptly and effectively.
(2) Ballast Water Management
Taking on and discharging ballast water during voyage can provide a pathway for species transfer between different ecosystems. This could result in the release of harmful invasive and non-native algae, plants or animals into new environments. The IMO adopted the Ballast Water Management (BWM) Convention in 2004, with its provisions entering into force from September 2017. The Convention requires ships in international traffic to implement a Ballast Water and Sediments Management Plan, to carry a Ballast Water Record Book, and to apply ballast water management procedures to meet the standards set. Our operating fleet at this stage comprises of more than 200 ships. These ships are chartered from our parent companies and ship owners who are compliant with environmental regulations and committed to reducing their environmental footprint. Our fleet management team will work with ship owners to select the appropriate ballast water treatment system and establish operational guidelines to protect biodiversity during transportation.
(3) Marine Species Protection
Plant-A-Coral, Seed- A-Reef
As part of ONE's effort to conserve the marine biodiversity, we have worked with The Garden City Fund's Plant-A-Coral, Seed-A-Reef programme to support the habitat enhance efforts at Singapore Sister's islands Marine Park through ONE's donation. The main objective is to strengthen our marine biodiversity by providing areas for marine organisms to grow and reef fish to seek refuge. With this donation, ONE want to raise awareness of the exisitng issue on the environment and hope like minded individuals can be more environemntally aware on how we can play a part in preserving our biodiviesity and environment.
We envision ONE to be a global leader in the realisation of environmentally sustainable shipping and green strategy is a top of our management agenda. We have also placed great emphasis in our commitment to achieve carbon neutrality by 2050, as well as global environmental conservation.
Besides our pledge to become carbon neutral, ONE recognises the need to make continuous investment in green assets and technologies while taking appropriate actions to meet our target.
We must all work differently and put sustainability at the heart of our business in order to ensure the long term sustainability of ONE and as such, we have identified seven key initiatives:
Green investments are crucial for incremental efficiency increase and innovative technologies to achieve net-zero emissions. You may also be aware of our fleet modifications to enhance fuel performance, such as the attachment of the energy-saving propeller boss cap and modification of the bulbous bow. These are forms of technologies that enhance our efficiency incrementally, alongside frequent maintenance of our existing vessels is necessary to keep them in best conditions.
Beyond these technologies, we are also looking into various forms of green investments such as talents, who have the operational knowledge and expertise, particularly for zero-emission vessels, as well as hardwares, where we will engage in the replacement of the older fleet with new and more fuel-efficient vessels. By 2030, ONE will deploy its first alternative fuel ships which are able to achieve both net zero GHG emissions while increasing vessel capacity simultaneously.
Presently, there is no clear answer to which alternative fuel can help achieve net-zero for the maritime industry and each alternative fuel is in different stages of development and has different characteristics. ONE has conducted several biofuel trials in the past few years and while we recognize the supply constraints for scaling up biofuel usage, biofuels are still useful as a support fuel in specific cases such as pilot fuel for green ammonia and green methanol.
While we do not eliminate any alternative fuels currently, ONE plans to reduce reliance and replace existing conventional fuel vessels by 2050. ONE will thus prioritise R&D and investments for green ammonia, green methanol and green methane related vessels and technologies.
We have highlighted three main actions for carbon management.
Firstly, we have introduced an internal carbon pricing system on a trial basis since 2021 and we intend to use it continuously as one of the indicators to guide investment decisions.
Secondly, we will develop low-emissions service offerings for our customers using low-carbon fuels. At present, we are also preparing a carbon calculator to measure the emissions from our services to enable our customers to identify their carbon footprint accurately.
Lastly, we are studying green-related technologies such as carbon capture and storage. This will be conducted in tandem with regulatory authorities in each country.
On top of existing methods, such as improving vessel size, vessel speed reduction and the use of inhouse fleet monitoring systems, ONE recognise the importance of improving fuel efficiency through other programs. We have made several efforts to pursue operational efficiency in order to reduce our greenhouse gas emissions and this includes optimising product performance, such as the continuous review of vessel proforma, improving asset portfolio through the modification for safe bunker and loadability such as the use of antifouling paint or Alternative Maritime Power (AMP) retrofit.
Besides new technology and efficiency programs, we will also continue to evaluate and invest in digitalisation tools and initiatives which allows improvement of our operational efficiency and to achieve fuel consumption savings. Existing milestones such as the Digitalisation Strategy Roadmap have commenced since 2020 and we are looking into investing in future technologies to continually improve our operational efficiency and reduce carbon emissions.
We believe that ship recycling is critical to ensure sustainable vessel operations from start to end of life. As we plan to own vessels in the near future, we will audit dismantling sites used by third party organisations to minimise the damage and emissions associated with ship breaking and ship recycling. Additionally, this will ensure the recovery of scrap metal, and the reduction of both greenhouse gas emissions and pollution to the environment.
Besides ship recycling, ONE’s new green strategy also places emphasis on environmental conservation. As frequent users of the ocean, we also play the role of a custodian to the ocean. ONE aims to prevent ecological damage and proactively lead initiatives to help regenerate the ecosystem. In order to meet this objective, we plan to participate in ecological conservation programs, such as the conservation of marine life, and ensure zero significant spills for all vessels.
Furthermore, we aim to establish our Environment Fund in 2022 to finance environmental related activities which will support long-term efforts towards material environmental themes and serve as a platform to educate employees and stakeholders on our environment.
Ocean Network express aims to deliver goods safely, timely while priotitising environmental protection and energy conservation. In order to achieve this mission, ONE place great emphasis in reducing our greenhouse gas (GHG) emissions and we have been making progress since our establishment in 2018.
To work towards our targets, we have implemented initiatives aimed at improving our operational and fleet fuel efficiency to reduce energy consumption and CO2 emissions.
In 2020, we made some new progress to improve our fleet fuel efficiency. These include modification of bulbous bow to reduce wave resistance, replacement with high efficiency propellers and attachment of special propeller boss cap. These measures are expected to reduce up to 10% of emission from fuel use per vessel. We will continue to implement these modifications progressively across our fleet.
(1) Improving operational efficiency
(2) Enhancing fleet fuel efficiency
As ONE envisions to be a global leader in the realization of environmentally sustainable shipping, we place great importance in measuring and tracking our environmental footprint to achieve our net-zero GHG emissions target in 2050.
Scope 1 Emissions Intensity (grams of CO2 Equivalent per TEU-Km, gCO2e/TEU-Km)
Emission intensities from 2019-2020 were calculated based on the calendar year in line with the Clean Cargo's methodology while emission intensity in 2021 has been calculated based on voyage leg completion basis. ONE’s 2021 emission intensity based on the Clean Cargo's methodology is 45.18 gCO2/TEU-km. The increase in emission intensity from 2020 to 2021 is mainly due to the increase of the vessel's speed to recover the delay arising from port congestion.
Scope 1 Emission from Fuel Consumption (Tonnes of CO2 equivalent, TCO2e)
ONE's Scope 1 emissions are emissions arising from our ocean-going vessels.
|Oil Type (tCO2e)||2019||2020||2021|
Scope 2 Emissions from Electricity Consumption (Tonnes of CO2 Equivalent, TCO2e)
Previously, ONE had only reported Scope 2 emissions at GHQ level and in 2021, we have since expanded its Scope 2 reporting boundary to all offices globally and OPS consumption under an operational control approach to uphold the principles of GHG reporting stated by the GHG Protocol. We have also started reporting our emissions under the location-based and market-based approach in 2021.
|Year||GHQ||Other Offices and OPS||Total|
Note: Scope 2 emissions from reefers in CY2021 were excluded due to a lack of accurate data during the reporting period. Moving forward, ONE aims to account for all Scope 2 emissions under our operational control.
About ONE Eco Calculator & Methodology
At ONE we believe that reaching decarbonisation is not an individual effort but the effort from across the industry. To encourage our customers to measure and manage their cargo emissions, we would like to introduce ONE Eco Calculator. ONE Eco Calculator allows you to calculate the emissions of your container transport from the start to end of the journey.
ONE Eco Calculator follows industry recognised methodology for their inland and ocean-going transportation. In addition, ONE’s ocean-going carbon emissions data are verified by ClassNK via the Clean Cargo methodology.
For our inland transportation, carbon dioxide emissions are calculated according to the GLEC Framework.
For our ocean-going transportation, carbon dioxide emissions are calculated according to the methodology developed by the Clean Cargo. However, full utilization capacity is used for this calculation.
Eco Calculator for CO2 Emission
Marine Accident Report System (MARS)
ONE launches our Marine Accident Report System (MARS), with aims of processing accident cases appropriately and swiftly, analysing accident trends, and formulating effective prevention measures.
We are taking various steps aimed at eliminating accidents, by using this system to analyse accident details and trends and the deeply explore root cause of accidents. By creating a database of accident information, moreover, we are able to share information with our worldwide network in a timely manner and establish optimal safety measures.
ONE has created an emergency response network based on five overseas regions, allocating Marine Super Intendent (MSI) to regional vessel operators, which aims to be ready for maritime accidents and problems around the world.
ONE Vessel Quality Standard (ONE-VQS) system
Safety is and will remain our utmost priority. It is our mission to provide quality and reliable service through constant safety in the operation of our ships and the transportation of the cargo.
What is the ONE-VQS system?
ONE installs ONE-VQS, a rigorous self-imposed safe ship management system, in order to better discharge our responsibilities to achieve safety and protect the environment. The standard covers approximately 280 items, including international treaties, international quality standards, measures to prevent accidents from recurring, and requirements from customers. The standards have been applied to all of the approximately 250 vessels in operation.
Use of Downtime to Measure Safety
We use the time that ships are stopped due to accidents or problems as a means of measuring the degree to which we have achieved safe ship operation. Our sea and land operations work together to bring us closer to the target of 'zero' downtime.
Prior to embarkation, vessel operators and Marine Safety & Quality department conduct a pre-embarkation briefing for captains. This is an opportunity to explain the Company’s basic policies on safety, as well as to provide the latest specific information and instruction through safety management manuals and related written procedures adopted by each management company.
Large-Scale Accident Drill
In the unfortunate event of an accident, timely and accurate responses are crucial. To ensure such responses, we regularly conduct drill assuming “worst-case scenarios involving ships under our operation.” This drill involves practical training and cover everything from assembling an early emergency response team to establishing an accident response headquarters and setting up information-sharing systems within it, as well as establishing systems for communicating with overseas parties.
Navigation Policy (Anti-piracy activity)
The number of piracy incidents off the coast of Somalia and the Gulf of Aden has remained low in recent years due to countermeasures undertaken by various national troops, including Japan’s Maritime Self-Defence Force. Nevertheless, the situation could easily be reversed if the international community weakens its efforts. Moreover, piracy-related losses still occur frequently in Gulf of Guinea (West Africa) and in Southeast Asia. Accordingly, conditions for merchant ship navigation remain unpredictable.
Off the coast of Somalia and in the Gulf of Aden, we endeavour as much as possible to receive protection from Japan’s Maritime Self-Defence Force and navies of various countries. For our own self-defence, we do everything possible to ensure the safety of crew as top priority. This includes avoiding problematic areas, maintaining at high speeds, using high-pressure water nozzle, installing razor wire to prevent unauthorized embarkation, and wearing bullet-proof vests and helmets.
PDCA cycle for Safety
Marine Safety & Quality department publish up-to-date safety information to share accident case and good practice from our operating vessels. Lessons learned from the accidents, and environmental measures are notified to the shipowners, ship management companies, and all operational vessels through the monthly newsletter, and information is shared between onshore and offshore personnel.
Vessel Operation – day to day Monitoring
Global Vessel Operations conduct day-to-day operation meeting to check navigate risks timely and discuss measures against on-going issues if there is. ONE global head quarter has vessel operation room which monitor operating vessels by tracking vessel’s position together with the latest weather condition.
ONE periodically conducts safety enhancement campaigns to foster a corporate culture that embodies safety. Personnel engaged in onshore and offshore operations exchange opinions and deepen their mutual understanding about a main theme that is set based on current priorities. During the campaign period, Executive officers and management involving in the campaign will be conducting vessel visits to emphasize the importance of navigation safety with the captain & crews and discuss what measures can be taken on board to achieve this goal. ONE also creates opportunities for further discussion with representatives from shipowners and ship-management companies to get its safety activities to the frontline of vessel operations.
As a member of Global Compact Network Singapore, we support universal principles regarding human rights and labour standards. Our commitment to human rights is expressed through our Credo and Code of Conduct. We will work to ensure that we do not contribute to human rights violations as a result of our global business activities. As a trusted employer, we will also ensure that all our employees are treated in a manner consistent with the applicable laws and labour conventions.
We will work to ensure that we do not contribute to human rights violations as a result of our global business activities.
A compliance committee has been established in 2018 whose responsibility is to ensure that ONE respects human rights throughout its operations and will integrate human-rights considerations into its existing management systems.
At Ocean Network Express (ONE), we create value for our stakeholders and society at large. Our operating vessels, being the frontline of our service, is the key element to achieving this.
We continuously monitor condition of fleet vessels considering both aspects of hardware and software. We then try to improve the conditions together with owners in order to pro-actively prevent accidents or detentions. We also endeavour to ensure that requirements of ONE for saving of bunker and other activities are properly understood and complied by those on board.
We are committed to comply with applicable requirements and continually improve the effectiveness of the Quality Management System.
This is our commitment, and together we shall achieve this.
Established in Nov. 2020
Revised in Mar. 2021
By Chief Executive Officer
COMMITMENT TO MAINTAINING Vessel QUALITY
Safety and Quality are and will remain our utmost priority.
It is our mission to provide quality and reliable service by incorporating highest standards of safety in the operation of our vessels and the transportation of cargo.
We understand that only with good safety and quality standard of our vessels, can we instil trust in our customers and achieve customer satisfaction.
In April 2018, we established ONE VESSEL QUALITY STANDARD (ONE-VQS) SYSTEM to fulfil this objective.
Vessels chartered by ONE undergo periodic Vessel Quality Standard (VQS) inspections to enable us in monitoring the condition of fleet vessels with respect to both hardware and software. We then try to improve the conditions on board together with owners, so as to meet our requirements. These inspections are carried out by third-party survey companies, in close collaboration with our Marine Safety & Quality department.
We established our Quality Management System (ISO 9001:2015 certified) in 2020. All related personnel have been trained to familiarise with related processes to ensure quality is not compromised. The quality policy is readily made available to all interested parties and such information can be passed down easily so that requirements of the standard are complied with.
QUALITY MANAGEMENT SYSTEM (ISO 9001:2015)
ISO 9001 is an international Quality Management System (QMS) standard set by the International Organization for Standardization (ISO). Requirements for the QMS are stipulated in ISO 9001.
In 2020, the top management decided to adopt a QMS, built upon the basis of our internal vessel quality system, ONE-VQS. The QMS serves to implement our work processes smoothly and systematically, furthermore, strengthen both safety and quality aspects of our fleet.
We have received our ISO 9001:2015 certificate in March 2021 from ClassNK.
Click here to download copy (PDF).
ONE VESSEL QUALITY STANDARD (ONE-VQS) SYSTEM
ONE has established ONE-VQS, a rigorous, self-imposed safe ship management system, to better discharge our responsibilities with respect to safe navigation, safe cargo operation, protection of environment and achieving customer satisfaction. The standard covers more than 260 items, including international treaties, international quality standards, measures to prevent accidents from recurring, and requirements from customers. ONE-VQS has been applied to all our operational vessels, has been reviewed and continuously improved based on the QMS.
ONE actively organises and participates in the various CSR activities. Please find below a listing of some recent activities of interest.
Corporate Governance Structure
ONE was born from the integration of the container shipping businesses of three companies - Kawasaki Kisen Kaisha, Ltd., Mitsui O.S.K. Lines, Ltd., and Nippon Yusen Kabushiki Kaisha. ONE Holding Company, based in Japan, oversees the governance of operational global headquarters based in Singapore (GHQ). With GHQ, ONE’s global presence through regional offices, branches, subsidiaries and joint-ventures will span across more than 120 countries and GHQ oversees the governance with delegation to regional headquarter(RHQ) based in Hong Kong, Singapore, London, U.S.A and Brazil.
Supply chain Management Policy
Ocean Network Express (ONE) recognizes the importance in establishing mutual trust and harmony with our business partners, who are essential to our business network. To accomplish a high service level, we aim to serve our customers with enhanced efficiency, compliance and integrity. We request the agreement and observance of "ONE’s Supply Chain Management Guideline” to support our efforts of fulfilling ONE's corporate social responsibility (CSR) project.
>> For more details, please visit here.
As tax laws and regulations are evolving and becoming more complex, the risk of unintentional compliance breaches is significantly increasing.
ONE is committed to ensuring compliance with local requirements and working towards tax transparency and disclosure.
ONE does not condone the behaviour of profit shifting with a tax avoidance intent to minimize its tax obligation and commits to be a responsible taxpayer in all relevant countries. As a starting point, our tax department will conduct a research study in view of analysing local tax laws and reporting requirements in various countries where ONE may operate. This study will help us prepare for our country-to-country reporting to local tax authorities in accordance with the OECD’s Base Erosion and Profit Shifting project. Global tax policies and an internal control framework will be developed by April 2018, following our commitment to comply with tax laws and regulations in each jurisdiction. ONE will therefore formalize the approach it will take to carry out its tax planning strategy without compromising the integrity of its corporate governance and tax morality. Tax matters will be monitored by our tax department at our global headquarters which also manages country and regional tax departments
Reliability is one of ONE’s core values and we are committed to carry out our business in a reliable manner. All directors, managers and employees adhere to ONE’s Business Credo and Code of Conduct which includes our pledge to work in accordance with the law and social ordinances as an absolute obedience.
The Compliance Committee, held twice a year, establishes ONE’s compliance framework and is the driver for solidifying the culture of compliance in ONE Group chaired by Chief Compliance Officer and attended by Directors, senior management, and department heads. It determines actions required to establish, monitor and further enhance ONE’s compliance initiatives. The Committee is designed and run for each department in charge to take responsibility of its compliance including the monitoring and work as one team to tackle challenges as an organization.
A global hotline system has been set up for early detection of the concurrent issues, and so to receive whistleblower reports and provide immediate consultation on various matters related to compliance.
Bribery and Corruption
As elaborated in ONE’s Basic Anti-Bribery Policy, all directors and employees – whether directly or through third parties – are prohibited from engaging in any form of corrupt practice, including bribery and extortion.
OCEAN NETWORK EXPRESS
Modern Slavery Statement
This statement is made pursuant to Section 54(1), of the Modern Slavery Act 2015 (UK) and constitutes Ocean Network Express Pte. Ltd. and Ocean Network Express (Europe) Ltd.’s (together as “ONE”) slavery and human trafficking statement for the financial year ending 31 March 2022.
This is our third Modern Slavery Statement. Building upon our past statements, ONE further underscores our continued commitment to prevent modern slavery and human trafficking in global business and supply chains, through the introduction of material goals and key performance indicators (“KPIs”) to measure the effectiveness of our actions and progress.
ONE is a global container shipping business operating worldwide with headquarters in Singapore.
Our policies on countering Modern Day Slavery and human trafficking
‘Modern Day Slavery’ is an umbrella term, which in the context of global supply chains often relates to cases where individuals are subject to human trafficking, forced labour, or debt servitude; or where coercion, threats or deception are used to intimidate, penalize, or deceive workers, thereby creating situations of involuntary work and exploitation.
ONE Credo and Code of Conduct
We are committed to ensuring that there is no Modern Day Slavery, human trafficking, forced labour or debt servitude in our supply chains nor in any part of our business. Our Credo and Code of Conduct reflects our commitment to act ethically, and with integrity in all business relationships. Ensuring the implementation and enforcement of effective systems and controls against Modern Day Slavery within our supply chains.
United Nations Global Compact
To be part of a global movement towards conducting business in a responsible and sustainable manner, ONE is a member of Global Compact Network Singapore (GCNS), the local chapter of the United Nations Global Compact (UNGC) network. ONE supports the ten UNGC Principles and has pledged to adopt and promote sustainable and responsible business practices. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment, and anti-corruption.
ONE is committed to respecting all ten principles, including Principle 4: the elimination of all forms of forced and compulsory labour. ONE’s Code of Conduct also reflects this respect in Chapter 4: “Respect for Human Rights and Diversity of Cultures”, Clause 4-4: “Prohibiting Forced Labour or Child Labour”, which states ‘ONE does not engage in inhumane acts such as forced labour or child labour and ONE does not conduct trade with business enterprises engaged in such acts.’
Due diligence processes in our supply chain
As part of our initiatives to identify and mitigate risk, we have taken steps (detailed below) to integrate sustainability and compliance into our purchasing processes, by measuring and ensuring compliance with social and environmental standards.
ONE Supply Chain Management Guideline
ONE recognises that to achieve our sustainability and compliance ambitions, we must bring our suppliers and business partners on board. Critical to our operations are terminal operators, inland and coastal transportation companies, ships and container owners, bunker suppliers, and IT vendors, without whom our core business activities cannot take place.
To ensure our high standards of sustainability and business conduct are upheld along our supply chain, ONE launched our Supply Chain Management Guideline (“the Guideline”). The Guideline calls on all ONE's suppliers and business partners to respect human rights, business norms and compliance. Accordingly, our Guideline encourages –
- Elimination of forced, bonded or child labour
- Compliance with labour-related laws and regulations of each country
- Equal terms of employment and treatment
- Improvement of working environment concerning safety and health
- Fair wages treatment
Procurement staff are required to share the Guideline with potential vendors: Supply Chain Management Guideline
Monitoring and review
ONE has taken steps to ensure that there is no Modern Day Slavery or human trafficking in any part of our business.
The Corporate & Innovation Division in GHQ has responsibility for implementing this statement and providing adequate resources to ensure that Modern Day Slavery is not taking place within ONE's business or its supply chains. Additionally, ONE undertakes an annual EcoVadis1 sustainability assessment comprising 21 sustainability criteria definitions, with 4 measures being of direct pertinence to Modern Slavery issues.
As ONE continues to expand our scope of operations, we recognize that our risk landscape continues to evolve. In view of this, ONE undertakes an annual review of our measures to combat Modern Slavery, to ensure adequate coverage and governance.
|Goals||FY 2021/22 Status||FY 2022/23 Status|
|Awareness of Modern Slavery Act in the Organization||92% completion rate for e-learning module||100% completion rate for e-learning Training Refresh through gamification|
|Enhanced Employee Engagement||Training via e-learning platform||Further initiatives like the EUA Modern Slavery Act SmartCard - an internal tool which details concisely key aspects of compliance matters and their importance; and GHQ Compliance Poster roll-out|
|Extended Scope for Supplier Contracts||MSA clauses are currently incorporated into Vendor Contracts originating from the UK||Incorporation of MSA clauses in globally managed Vendor Contracts across the Organization|
|Downstream Audit and Monitoring||Not Applicable||Introduction of Supplier Declaration|
|Supply Chain Management Guideline||Kickstarted efforts to collaboratively work with Procurement team in the exploration of digital solutions.||Full Implementation of digital tools (SAP Ariba) to achieve 100% Supplier Acknowledgement of Compliance from Q4 2022|
We provide training to ensure that managers in ONE have a thorough knowledge of the ONE Credo, Code of Conduct, and the Guideline and can act accordingly, sharing knowledge of these documents and ensuring a culture of compliance within their own organisation.
The year 2020-21 saw the development and rollout of bespoke Modern Day Slavery training via our e-learning platform. This training is provided to all staff across the organisation, with materials and quizzes to re-enforce organisational awareness of the company’s commitment to recognise the risks of Modern Day Slavery in its business, and all the pertinent steps ONE is taking to prevent modern slavery and human trafficking in its business and supply chains.
Employees are encouraged, via our Whistleblowing program, which seeks to encourage effective communication, and to identify any potential violations of applicable laws, internal rules and procedures, the ONE Credo, Code of Conduct and the Guideline. All reports are processed, investigated as applicable, and when justified, appropriate measures are taken.
OUR COVID-19 PANDEMIC RESPONSE
COVID-19 has shed a spotlight on the exacerbated vulnerability of crew at sea. Accordingly, as a founding signatory to the Neptune Declaration2 for Seafarer Wellbeing and Crew Change, and platinum sponsor of the Mission to Seafarers “Sustaining Crew Welfare” campaign, ONE will continue to be committed to addressing this increased vulnerability; ensuring the sustained wellbeing of our maritime frontliners and the enhancement of our culture of care, through the pandemic and beyond.
MODERN SLAVERY STATEMENT REGISTRY
From October 2022, ONE will make this statement available via the UK Government's Modern Slavery Statement Registry. The Registry has been designed to make it easier for consumers and investors to search for the Modern Slavery Statements of businesses.
This statement was approved by the Board of Directors on 06 October 2022.
Please find the signed statement here: ONE Modern Slavery Statement 2022
Operational excellence is a mindset and way of working that we embrace at ONE.
When we first started operations in 2018 as one of the newest players in the industry, we knew we had to bring our best to the table to successfully compete in the market. This strategy has enabled us to strive for sustainable improvements within our operations and high levels of service quality.
RAISING THE BAR ON SERVICE QUALITY
Innovation and digitalization are critical enablers of operational excellence at ONE. In 2019, we established our Digital Strategy Committee and Digitalization Roadmap, to build our digital capabilities and enhance existing business models and services, with a focus on delivering better customer experience and operational efficiency.
DELIVERING BETTER CUSTOMER EXPERIENCE
We commenced the first stage of our Digitalization Roadmap in December 2020, digitalizing our channels, operations and assets to provide an end-to-end customer experience within a single digital environment from quotation to e-invoice.
We continue to enhance our Customer Relationship Management (CRM) system to provide full visibility of customer information and interactions across global and regional offices for key accounts, in order to improve customer communication and experience. We also started deploying Robotic Process Automation (RPA) for our booking documentation process to improve quality, accuracy and turnaround time. We aim to have 100% of customer bookings done via our digital platform by 2025.
MAINTAINING OUR OPERATIONAL EDGE
High levels of customer satisfaction and service quality cannot be met if we do not execute on-time delivery of our customers’ goods. That, in turn, requires us to achieve the best operational efficiency at sea and on land.
One of the initiatives implemented is the ONE Agile Supply Chain Integrated System (OASIS) which is a centralized inventory management system that uses data analytics to forecast container demand and supply from shippers (export) and consignees (import) so we can optimise our container positioning strategy. It has been implemented in 99% of locations in ONE’s depot network, with realized savings on equipment cost and empty container reposition costs.
Another initiative is our Terminal Partnership Program (TPP), launched in 2018 to partner terminal operators to improve productivity and service reliability through close cooperation on scheduling, stowage planning and equipment deployment. It is now expanded to more than 10 terminals including a number of major terminal operators all over the world.
CARGO AND CONTAINER SAFETY
The safe transportation of cargo is fundamental to delivering the highest standards of customer service and enabling a smooth flow of operations. It also protects ship and land crew from unnecessary harm. We ensure safe cargo transportation and operations onboard by enforcing strict safety standards and inculcating safety awareness in our employees and contractors.
ONE’s stringent Vessel Quality Standard (VQS) drives our approach to vessel safety. The VQS ensures high safety standards are maintained on ships, based on requirements for ship safety and quality management systems that are in line with industry standards.
To ensure the safe operation of ships, we developed and implemented an Operational Standard to provide guidance to ship crews on how to manage and respond to issues such as cargo damage, heavy weather, accidents and fires, as well as on safe navigation of areas at high-risk of piracy and conflict zones. Issues such as robbery and theft, unauthorized stowaways, and the smuggling of firearms, drugs, and other illegal contraband are also addressed in the Operational Standard.