Climate Charge Management

Ocean transportation has a significantly lower environmental footprint per transport work when compared to other major modes of transportation. That said, in aggregate, it is still a major source of carbon dioxide and GHG emissions.

When it comes to decarbonization, the maritime sector must play an even larger role in addressing climate change as the sector is a key stakeholder when it comes to both the causes and solutions related to the issue. To address climate change and its impact, we have adopted the TCFD framework to identify climate change-related risks and incorporate them into our management policies. The TCFD framework provides a progress update across each of the TCFD pillars: Governance, Strategy, Risk Management, and Metrics and Targets.


Governance

Board oversight of climate-related risks and opportunities >>>> The Board of Directors (“the Board”), through the Risk Management Committee, fosters sound risk management oversight and effective corporate governance to ensure the Company creates sustainable long-term value for stakeholders. The Board has oversight across the Company’s Environmental, Social, and Governance (ESG) risks, opportunities, and policies, including those pertaining to climate change and to support management in achieving strategic and business objectives. The Risk Management Committee oversees the implementation of risks and controls related to climate issues that affect the Company and its stakeholders, as well as the delivery of strategies to manage climate-related risks & opportunities to ensure that all climate change-related risks and opportunities are elevated at the Board level.

Management’s role in assessing and managing climate-related risks and opportunities >>>> The Managing Director is a member of the Risk management Committee and is responsible for monitoring the Company’s risks in all areas. The Director (Technical) is responsible for all the vessel operations, including the implementation of measures to improve operational performance, while the Director (Finance) is responsible for monitoring the expectations of external stakeholders and recommending strategies to address climate change that meets these expectations and reports the results thereof to the Managing Director and the Risk Management Committee.


Challenges and Opportunities

Our Strategy: Future Ready Shipping

Shipping is the most efficient low-cost transportation and is important to the growth and development of any economy. That said, the Shipping industry does take a toll on the environment as it accounts for between 2.5-3% of global CO2 emissions. Climate change is unequivocally one of the major long-term risks that need our undivided attention.

Extreme climate change and its cascading effect could negatively impact the growth of shipping industries. An assessment of the impact of shipping on our environment and society will enable us to foster sustainable economic growth while preserving the environment for our future generations.

PSL’s core philosophy has been to embrace ESG principles into its governance. This report represents our commitment towards a low carbon pathway and our vision for ESG driven growth. We aim to imbibe in every part of our operations, long-term measures which will serve to minimize our environmental impact.

Identification of Climate Risks & Opportunities

 

Risks and Opportunities Potential Impact to the Company Strategy & Risk Management
Transition Risk Policies, Laws & regulations · Meeting new carbon and climate related regulations.
(Medium & long term: 3-20 years)
· Increased costs from complying with complex and newly evolving regulations.
· Increased costs from operating low carbon ships and an inability to pass on these costs to end users
· Surge in carbon prices
· Impact ability to charter vessels due to poor environmental ratings.
· Participating in programs to reduce fuel consumption
· Investing in fuel saving devices
· Integrating carbon pricing into operations and strategic decisions
· Incorporating climate change and ESG consideration into Governance
Technology · Commercial Viability of Green Vessels and transition to zero emission fuels
(Long Term: more than 10-20 years)
· Use of energy efficient fuel saving devices and retrofits
(Medium-Term: more than 3-10 years)
· Use of voyage and emission data to correlate and draw patterns
(Medium-Term: more than 3-10 years)
· Reduction in carbon footprint
· Reduction in overall fuel consumption
· Improved performance of our Ships
· Increased capital expenditure
· Increased operating cost
· Endeavor to explore and invest in new technologies to continue improvement in emission related performance
· Highly experienced technical team to identify and implement new technologies and top emerging trends
· Committed to continuous advancement and automation of operations to ensure the highest level of operational efficiency
· Balancing risk and rewards
Market · Increased operational concerns
(Long-Term: more than 10-20 years)
· Path to carbon neutrality
(Long-Term: more than 10-20 years)
· Increased demand for low carbon ships
· Adverse impact on earning and valuation of older ships which have higher consumption
· Leading position in the industry in adoption of commercially viable zero-emission ships
· Tracking the Company’s carbon emissions
· Setting internal targets to minimize environmental Impact
· Investing in commercially viable carbon neutral ships
· R&D in low emission technologies
· Explore the use of commercially viable zero/low emission fuels
Reputation · Stakeholders’ Concern – Delay in Zero-emission fleet
(Medium Term: more than 3-10 years)
· Impact on company’s operations and market share · Work on the development of low carbon ships
· Participate in industry programs such as the Getting to Zero coalition to explore commercially viable options
Physical Risks Acute Climate Change – Increase temperature
· Increased frequency and severity of weather events.
(Medium Term: 3-10 years)
· Damage to people, assets, and environment
· Increase in costs due to unexpected re-routing of ships
· Integrating weather conditions and climatic changes in our operational strategy
· Using shipping data to track weather patterns and events
Chronic · Long-term changes in climate patterns could result in new storm patterns
(Long Term: more than 10-20 years)
· Increase in costs due to mitigating and potential operating expenses including legal and insurance
This is us

Precious Shipping Public Company Limited is a ship-owner providing global dry-bulk transportation services. The Company operates predominantly in the tramp freight market where its vessels are employed on a time charter as well as on a voyage charter basis.

Find Us at

Precious Shipping PCL
No. 8, North Sathorn Road,
G, 7th, 8th, and 9th floors,
Silom, Bangrak,
Bangkok 10500 Thailand

 

Contact
Tel: +66-2-6968800
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