Sustainability Begins with Accountability: The 2021 EPS ESG Policy
28 January 2021
The 2021 ESG Policy reveals EPS surpassed its CO2 reduction target two years ahead of schedule
Reduction attributed to fleet renewal, green-tech, operational excellence, and the use of alternative marine fuels
SINGAPORE, 28 January 2021 – Last year, to showcase that sustainability begins with accountability, Eastern Pacific Shipping (EPS) started disclosing a fleetwide CO2 emissions report, which was part of its inaugural Environmental, Social & Governance (ESG) Policy. Using the industry-accepted Annual Efficiency Ratio (AER), EPS reported a 2019 AER of 4.7, which showed a steady decline from 2015, where it had an AER of 5.1. This downtrend prompted EPS management to set a target of achieving an AER of 4.5 by 2022.
Today, EPS released its 2021 ESG Policy, where the company announced it achieved an AER of 4.4, meeting its target a full two years ahead of schedule. EPS CEO Cyril Ducau states that the company’s ability to align its forces towards a common green goal can be credited to the philosophy of ‘not letting the perfect be the enemy of the good.’ This same philosophy attracted like-minded charterers such as BHP, CMA CGM, and Equinor which awarded EPS with landmark time charter contracts in 2020.
“EPS is fully committed to the green and technology-driven growth of the industry on all fronts. While the ultimate objective is zero emissions, that is simply not feasible today. What is feasible is using various resources currently available to significantly lower CO2 emissions and greenhouse gas emissions in general. Vessel optimisation technology, alternative marine fuels, like LNG, LPG, and biofuels, and a workforce dedicated to the greater good, has proven that cleaner shipping is achievable today,” says Ducau. “While our 2020 emissions report is good news, it’s important for us not to become complacent. We need to maintain a low AER at a time when our diverse fleet across the container, dry bulk, and tanker segments is expanding, with over 40 newbuilds on the horizon. Fortunately, most of these vessels will be powered by alternative marine fuels, making them the cleanest ships on water in their respective categories.”