Reduce the effects of ship recycling on human health, safety and the environment.
This is a new performance indicator added to the 2020 program, therefore, reporting on this issue is optional for the first year of the performance indicator’s introduction.
See below the criteria each ship owner has to fulfill to achieve each level of performance.
Monitoring of regulations.
2.1. The participant has a written Policy (or Procedure within a management plan that has been approved by senior management) detailing how their written/documented commitment will assure that all ships at the end of their economic lives will be recycled in a sustainable, safe, responsible and environmentally sound manner.
This Policy or Procedure must be applicable to all of the participants’ vessels at the end of their economic life that are not sold for onward trading and are thus sent for recycling.
Note: At level 2, the policy/procedure does not need to be made public.
2.2. Develop Part 1 of an Inventory of Hazardous Materials (IHM) for all new builds that meets the requirements set out in the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships and is certified as such by a third party.
Note: If the participant has no new builds on order, they must have at minimum an internal written policy/procedure stating their intentions to develop an IHMs for all new builds, should any vessels be ordered in the future.
2.3. Adopt a formal plan to develop Part 1 of an IHM for all existing vessels.
2.4. If towing a vessel to a recycling facility, review tow plan and towing company before making final selection.
3.1. Develop a hazardous material removal plan that promotes the substitution of hazardous materials during the maintenance of ships (during layup, repair, dry dock, or as other opportunities present themselves) by less hazardous, or preferably, non-hazardous materials.
3.2. In accordance with the IHM plan created in level 2.3, develop Part 1 of an IHM for at least one existing vessel. IHM must meet the requirements set out in the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
3.3. When seeking to recycle a vessel, the participant will only tender to (or via Cash Buyer warranting to use) Ship Recycling Facilities that are:
4.1. Develop Part 1 of an IHM for 50% of vessels. IHMs must meet the requirements set out in the Hong Kong International Convention for the Safe and Environmentally Sounds Recycling of Ships.
4.2. Implement the hazardous material removal plan adopted in level 3.
4.3. Make the ship recycling Policy publicly available; or make public the written/documented commitment (Procedures within management plans) demonstrates your company’s ship recycling management practices and accountability.
4.4. Require the ship recycling facility, through a contractual clause, to provide regular recycling progress reports, from the time of vessel arrival to the time of receiving a Certificate of Completion of Recycling.
Note: See Annex 7-A for minimum progress report content requirements.
5.1. Require all vessels to have completed Part 1 of an IHM.
5.2. Validate all IHM with accompanying statements of compliance and renew on a 5-year basis.
5.3. Remove all hazardous materials not essential to the classification, certification or operation of vessel as part of pre-cleaning procedures prior to departure for the recycling facility.
5.4. Hire a third party auditor to undertake announced and unannounced visits to the recycling facility during the dismantling. The frequency to be agreed between the participant and the recycling facility. The “Audit During Recycling” (ADR) will be undertaken on site involving the participant (or third party auditor representing the participant) and the recycling facility senior management team. Each ADR report will be shared with the participant and recycling facility.
Note: See Annex 7-B for minimum audit report content requirements.