川崎汽船（9107） – ESG DATA BOOK 2021

ESG D ATA BOO K2021C O N T E N T S01 Corporate Principle04 Social 3 Corporate Principle and Vision30 Labor Practices / Occupational Health and Safety02 “K” LINE Group’s Sustainability 41 DiversityManagement43 Safety in Navigation and Cargo Operations 5 “K” LINE Group’s Sustainability Management11 ESG Performance03 Environment16 Environment19 Climate Change (Decarbonization and Low-Carbon Transition) 25 Reduce “K” LINE’s Impact on the Sea and Air27 Support the Environmental Activities of Society38 Human Resource Development46 Human Rights48 Supply Chain Management51 Stakeholder Engagement52 Relationship with the Community05 Governance55 Corporate Governance66 Risk Management70 Compliance06 Reference Table and Index74 GRI Guidelines Reference Table84 ISO 26000 Comparison TableEditorial Policy The “K” LINE Group is an integrated logistics company that owns and operates various fleets tailored to worldwide marine transportation needs. We also engage in Value (“K” LINE Value) as a symbol of its corporate value. We produce the land transportation and warehousing businesses. The “K” LINE Group has defined the Value.“K” LINE report, which provides explanations from both a financial and non-financial perspective, to ensure that our wide range of stakeholders understand From fiscal 2021, we are producing an ESG data book to supplement the “K” LINE report. This data book will mainly summarize environmental, social, and governance (ESG) information and act as a communication tool for sharing this information with our stakeholders, who have a particularly high awareness of the “K” LINE Group’s ESG initiatives.Reporting Period Fiscal 2020 (April 1, 2020–March 31, 2021) Some information regarding activities and initiatives will be from before this period or more recent than other information.Scope of Reporting In principle, this data book covers the activities and data of Kawasaki Kisen Kaisha, Ltd., and its subsidiaries and affiliates. When there are limits to the scope of our activities and data, we will add the information in notes throughout this report.Guidelines Referred to • International Integrated Reporting Framework • GRI standards for sustainability reporting• ISO 26000 • The United Nations Global Compact• Environmental Reporting Guidelines 2018, Ministry of the Environment of Japan • Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation, Ministry of Economy, Trade and Industry of JapanForward-Looking Statements The Company’s plans, strategies, and future financial results indicated in this data book reflect the judgment made by its management based on information currently available and include risk and uncertainty factors. Consequently, the actual financial results may be different from the Company’s forecasts due to changes in the business environment, among other factors.S E C T I O N01Corporate Principle12Corporate Principle and VisionIn shipping business, which serves as key logistics infrastructure supporting worldwide economic activity, the “K” LINE Group earns the trust of customers through the provision of safe, reliable marine transportation and logistics services. As an integrated logistics company grown from shipping business, our corporate principle is to help enrich the lives of people. Under this principle, we will make further improvements to Value, which represents our unique value as a group.As an integrated logistics company grown from shipping business, the “K” LINE Group contributes to society so that people live well and prosperously. We always recognize this principle in our operations.Corporate PrincipleVisionOur aim is to become an important infrastructure for global society, and to be the best partner with customers by providing the high-quality logistics services based on customer-first policy.Values the “K” LINE Group prizesProviding reliable and excellent servicesContributing to societyA fair way of business Fostering trust from societyRelentless efforts to achieve innovationGenerating new valuesRespecting humanity Corporate culture that respects individuality and diversity34S E C T I O N02“K” LINE Group’s Sustainability Management0101Corporate PrincipleCorporate Principle“K” LINE Group’s Sustainability Management“K” LINE Group’s Sustainability ManagementThe “K” LINE Group monitors the compliance status of its fundamental differences in wording between the Charter of Charter of Conduct within the Group on a regular basis, and the Group and those of individual Group companies.reviews the contents of the Charter as necessary to ensure that it keeps up with the times. Group companies have their own guidelines conforming to their respective country’s regulatory mandates, business fields, and area characteristics. There are necessary but not Basic CSR Policy“K” Line Implementation Guideline for Charter of Conducthttps://www.kline.co.jp/en/csr/group/charter/main/01/teaserItems1/0/linkList/0/link/guideline_12.pdfAs an integrated logistics company grown from the shipping activities and creating new values. The aim of our CSR activities business, the “K” LINE Group’s corporate principle is to help is to build a management structure that emphasizes social enrich people’s lives. Under this principle, we believe our cor-responsibility. We will help create a sustainable society by porate social responsibility (CSR) obligations cover two large addressing material issues within these frameworks and imple-frameworks; namely, managing the impact of our business menting measures to address them. Building a Management Structure That Emphasizes Social ResponsibilityThe “K” LINE Group strives to achieve sustainable growth and improved corporate value by consistently implementing initiatives for the realization of its corporate principles and vision. It aims to build a management structure, mainly by further strengthening corpo-rate governance, in order to fulfill its CSR through initiatives to address material issues that have been identified through dialogue Managing the Impact of Our Business ActivitiesOne of the key aspects of the “K” LINE Group’s social responsibility as a globally operating corporate group is to be aware of the potential impacts of our business activities on local and global communities, and to promote business activities based on the above perception. The Group endeavors to provide services with consideration for environmental preservation and safety in navigation and cargo operations, to conduct fair business activities, and to give due consideration to the human rights, health, and safety of the people linked to the Group’s business. Creating New ValuesAnother aspect of the “K” LINE Group’s social responsibility is to create new values in order to contribute to and grow with society. The Group aims to create new values and offer them to society by developing human resources who can succeed on the global stage through a corporate culture that allows free and open-minded discussions, observing customer needs, and creating new technologies and ideas that contribute to the reduction of our environmental impacts and the improvement of the quality of our services. Approach to Sustainability Charter of Conduct: “K” Line Group Companies The “K” LINE Group has adopted the following Charter of Conduct for the “K” LINE Group companies as standards of behavior for the entire Group.Charter of Conduct: “K” Line Group CompaniesKawasaki Kisen Kaisha, Ltd. and its group companies (hereinafter “K” Line Group) reemphasize that due respect for human rights and compliance with applicable laws, ordinances, rules are the fundamental foundations for corporate activities and that group companies’ growth must be in harmony with society and therefore, in order to contribute toward sustainable develop-ment of society, we herein declare to abide by “Charter of Conduct” spelled out below: 1. Human rights 2. Compliance The “K” Line Group will consistently respect human rights and we will positively consider personality, individuality and diversity of its corporate members and improve work safety and conditions to offer them comfort and affluence. with its stakeholders. The “K” Line Group promises to comply with applicable laws, ordinances, rules and other norms of behavior both in the domestic and international community and conduct its corporate activities through fair, transparent and free competition. 3. Trustworthy company group 4. Proactive environmental efforts The “K” Line Group continues to pay special attention to safety in navigation, achieving customer satisfaction and garnering trust from the community by providing safe and beneficial services. The “K” Line Group recognizes that global environmental efforts are a key issue for all of humanity and that they are essential both in business activities and existence of the company and therefore we are committed to a voluntary and proactive approach to such issues to protect and preserve the environment. 5. Protection, proper management and disclosure of information and communication with society The “K” Line Group will protect personal and customer data, properly manage corporate information through timely and appropriate disclosure, widely promoting bi-directional communication with society including shareholders. 6. Contribution to society The “K” Line Group as a Good Corporate Citizen will make ongoing efforts to contribute to social development and improvement and support employees’ voluntary participation in such activities. 7. Harmony in the international society 8. No relations with anti-social forces The “K” Line Group will contribute to the development of international society in pursuance of its business pertaining to international logistics and related businesses, respecting each country’s culture and customs. The “K” Line Group will resolutely confront any anti-social force or organization which may threaten social order and public safety and never have any relationship with them. The management of each “K” Line Group Company recognizes that it is its role to realize the spirit of the Charter and takes the lead in an exemplary manner to implement the Charter while setting up effective mechanics throughout the company. The management also seeks cooperation from its business counterparts. The management, from the viewpoint of risk manage-ment, sets up an internal system to prevent incidents in breach of this Charter and should such an event occur, the management of respective “K” Line Group member companies will demonstrate decisiveness to resolve the problem, conduct a thorough investigation to determine the cause and take preventative measures. Additionally, such management will expeditiously and accurately release information and fulfill its accountability to society. Adopted December, 2006 Revised August, 20125ValueCorporate PrincipleVisionBuilding a Management Structure That Emphasizes Social Responsibility6Managing the Impact of Our Business ActivitiesCreating New ValuesCharter of Conduct: “K” Line Group Companies0202“K” LINE Group’s Sustainability Management0202“K” LINE Group’s Sustainability Management“K” LINE Group’s Sustainability ManagementThe United Nations Global Compact“K” LINE endorses the United Nations Global Compact The “K” LINE Group has also joined the Global Compact (UNGC), an initiative proposed by the United Nations, and has Network Japan (GCNJ), which comprises Japanese companies been participating in it since April 20, 2020. The UNGC is a and organizations that participate in the UNGC. Through the voluntary initiative in which companies and organizations act as GCNJ’s subcommittees, which focus on specific themes, good members of society and participate in the creation of a member companies and organizations actively conduct global framework for sustainable growth by demonstrating discussions and exchange information on approaches to responsible and creative leadership. Signatory companies and initiatives and methods for proceeding with them. In fiscal organizations are required to support and implement the 2020, we participated in the Human Rights Due Diligence UNGC’s Ten Principles on human rights, labour, the environment, (HRDD) Subcommittee, the Anti-Corruption Subcommittee, and anti-corruption.the ESG Subcommittee, and the Reporting Research “K” LINE has defined initiatives toward sustainability as an Subcommittee. At meetings of subcommittees, we collected important management issue, and is strengthening its efforts information on the latest trends and the initiatives of to contribute to the realization of a sustainable society, the aim progressive companies in relation to each theme and shared of the UNGC.information on our own initiatives.The Ten Principles of the United Nations Global CompactHuman rightsPrinciple 1: Businesses should support and respect the protection of internationally proclaimed human rights; andPrinciple 2: make sure they are not be complicit in human rights abuses. Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;Labourcompulsory labour;Principle 4: the elimination of all forms of forced and Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.Principle 7: Businesses should support a precautionary approach to environmental challenges; Environment Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.Anti-corruptionPrinciple 10: Businesses should work against corruption in all its forms, including extortion and bribery.United Nations Global Compacthttps://www.unglobalcompact.org/Global Compact Network Japanhttps://www.ungcjn.org/ “K” LINE Group’s Materiality Process to Identify Materialityaddressed, through the following process.By promoting sustainability management, the “K” LINE Group has identified materiality, major social issues that need to be Step 1 Specify Themes Related to the “K” LINE Group’s Step 3 Formulate CSR Action Plans Business Activities The Group has set medium- and long-term targets for the 12 mate-The “K” LINE Group, through dialogue with internal and external rial issues designated in Step 2 and formulates annual CSR action stakeholders and by referring to the OECD Guidelines for plans geared to each target.Multinational Enterprises, ISO 26000, the GRI Guidelines, and other frameworks, has specified environmental and social themes that the Step 4 Match with the SDGs Group’s operations around the world may affect or contribute to.The Group has aligned the CSR action plans outlined in Step 3 with the 17 SDGs adopted by the United Nations in 2015 to ensure that Step 2 Select Material Issues the objectives are compatible.The Group has selected 10 of the themes identified in Step 1 to prioritize in terms of the significance of their economic, environ- Step 5 Review mental, and social impacts and the effects on stakeholder evalua-The Group reviews the progress of the CSR action plans semiannu-tions and decision-making. These themes, and two additional ally, and revises or modifies them as necessary. At the end of each themes deemed essential to establish the relevant management fiscal year, the Group evaluates the progress and results of the CSR structure to address them, have been designated as material issues action plans and, based on the progress toward the medium- and requiring action by the Group.long-term goals and the social changes relevant to its businesses, formulates new plans for the next fiscal year.SDGs Related to Material Issues“K” LINE Group’s MaterialityBuilding a Management Structure That Emphasizes Social Responsibility ThemesMaterial IssuesCorporate governanceEstablishment of a management structure that responds to the demands of societyRelated SDGs—Stakeholder engagement Promotion of dialogue with stakeholdersManaging the Impact of Our Business Activities ThemesMaterial IssuesRelated SDGsHuman rights Labor practices Compliance Prevention of discrimination Respect for basic labor rights Prevention of forced labor and child laborPrevention of overlong working hours Promotion of diverse workstyles Improvement of occupational health and safetyPrevention of corruption Prevention of anticompetitive behaviorSafety in navigation and cargo operations Prevention of major accidentsEnvironmental preservation Reinforcement of environmental management Environmentally friendly business activitiesRisk management Business continuity plans (BCPs) to respond to large-scale disasters Enhancement of response capabilities for major accidents Crisis and risk management systems—780202“K” LINE Group’s Sustainability Management“K” LINE Group’s Sustainability Management0202“K” LINE Group’s Sustainability Management“K” LINE Group’s Sustainability ManagementCreating New ValuesThemesMaterial IssuesRelated SDGsHuman resource developmentImprovement of corporate culture Development of global leaders Promotion of diversityInnovation New value proposals through reduction of environmental impacts and improvement of service qualityCommunity involvement and developmentAssistance in recovery / reconstruction from natural disasters Promotion of social contribution activities using corporate resourcesEmployment creation and skills development Support for education and employment creation Promotion System for Sustainability Sustainability GovernanceAmid globally accelerating changes in values and behavior, as of corporate value. This is achieved by developing ship safety well as accelerating GHG reductions and environmental regula-navigation technology, economic navigation technology, and tions, “K” LINE considers sustainability management as a priority environmental technology, including next-generation fuel com-issue for enhancing corporate value over the medium to long patibility, and through initiatives for low-carbon and zero-carbon term and discusses the issue as necessary at the Board of businesses, digital transformation (DX) compatibility, and our Directors’ meetings. In April 2021, we restructured the existing response to social issues, as well as further reinforcement of organization and reformed the promotion system for sustainability governance and compliance.to ensure it is a key management objective. In October 2021, we integrated the functions of our Alternative The Corporate Sustainability Management Committee, chaired Fuel Project Committee and our Environment/Technology by the President & CEO, is enhancing corporate value by review-Committee, and established the new GHG Reduction Strategy ing and formulating a promotion system for the “K” LINE Group’s Committee. We established three project teams, the CII and 2030 sustainability management. Environmental Target Project Team, the Fleet Decarbonization The Environmental Sub-Committee, a subcommittee under the Project Team, and the Safety and Environmental Technology Corporate Sustainability Management Committee, is responsible Project Team, as subcommittees under the GHG Reduction for operating the environmental management system (EMS) Strategy Committee. They are responsible for reinforcing the formulated in accordance with the “K” LINE Group Environmental organizational response to urgent issues, such as the Energy Policy and the standards of the International Organization for Efficient Existing Ship Index (EEXI) and the Carbon Intensity Standardization (ISO). The subcommittee is also responsible for Indicator (CII), accelerating initiatives to develop ships fueled by promoting other environmental activities. liquefied natural gas (LNG) and the LNG fuel supply business and The second subcommittee, the Sustainability Sub-Committee, examine next-generation fuels and new technologies, and formu-is responsible for promoting management that will contribute to lating the latest measures for compliance with environmental the sustainability of “K” LINE’s businesses and the enhancement guidelines, including technical aspects.Board of DirectorsSupervisingPresident & CEOManagement Conference Executive Officers’ MeetingEntrusting ReportingCorporate Sustainability Management CommitteeGHG Reduction Strategy CommitteeSupervising/Directing ReportingReportingSupervising/Directing Entrusting ReportingEnvironmental Sub-Committee Sustainability Sub-CommitteeCII and 2030 Environmental Target Project Team Fleet Decarbonization Project Team Safety and Environmental Technology Project TeamSustainability Management Structure As part of the reinforcement of the promotion system for Group, which are responsible for the practical implementation sustainability management implemented on April 1, 2021, of sustainability promotion. They will accelerate sustainability “K” LINE established three new groups: the Corporate initiatives together with the existing Environment Management Sustainability, IR, and Communication Group; the GHG Group, the Fuel Strategy & Procurement Group, and the Reduction Strategy Group; and the Carbon-Neutral Promotion Advanced Technology Group.Board of Directors President & CEO Management ConferenceCorporate Sustainability, IR, and Communication GroupSustainability Management Promotion (Corporate Sustainability Management Committee / Sustainability Sub-Committee Office)Environment Management GroupCarbon-Neutral Promotion GroupGHG Reduction Strategy GroupFuel Strategy & Procurement GroupAdvanced Technology GroupEMS Monitoring (Environmental Sub-Committee Office)Renewable Energy-Related BusinessTechnology InnovationLow-Carbon Business (Fleet Decarbonization Project Team)Advanced Technology (CII and 2030 Environmental Target Project Team / Safety and Environmental Technology Project TeamEnvironment Management GroupCarbon-Neutral Promotion GroupCorporate Sustainability, IR, and Communication GroupIntegrates the existing CSR, IR, and PR functions to promote communication with stakeholders inside and outside the Group as the driving force behind sustainability management.Manages “K” LINE’s environmental strate-gies in an integrated manner, formulates comprehensive strategies and a road map for realizing environmental management, and implements specific measures to reduce the Company’s environmental impact.The demand for carbon-neutral businesses is increasing. This includes businesses related to renewable energy, including offshore wind power, carbon capture, use and storage (CCUS) businesses, fuel con-version (LNG value chain) businesses, and the emissions trading system. Promotes business development to achieve net-zero CO2 emissions in collaboration with relevant internal organizations and affiliated compa-nies to respond to these trends and launch businesses as soon as possible.GHG Reduction Strategy GroupFuel Strategy & Procurement GroupAdvanced Technology GroupSupervises the technical aspects of next-generation environmental vessel strategies, with GHG reduction as the focus. Engages in research and implementation of GHG reduction initiatives, such as new fuels, including ammonia and hydrogen, electric vessels (EVs), carbon capture and storage (CCS), and methanation. Also promotes the introduction of LNG-fueled vessels, which are in the practical stage of development.Carries out procurement of fuel oil, LNG fuel, and lubricating oil to ensure safe navigation and cargo operations of “K” LINE and “K” LINE Group companies and improve earnings. Also examines and drafts basic policies for new fuel compatibility aimed at reducing greenhouse gases and CO2 emissions in the future.Promotes the examination and develop-ment of innovative technology that contrib-utes to improving ship safety and economic efficiency and reducing environmental impact. Also carries out appropriate energy management for chartered ships and vessels controlled by “K” LINE and formu-lates and implements specific measures to reduce fuel consumption.9100202“K” LINE Group’s Sustainability Management“K” LINE Group’s Sustainability Management0202“K” LINE Group’s Sustainability Management“K” LINE Group’s Sustainability ManagementESG Performance Sustainable Finance Significance of Sustainable FinanceSince setting 2030 interim milestones in the “K” LINE – Improve CO2 emission efficiency by 50% compared with 2008 Environmental Vision 2050, we have been trying to minimize (beyond the International Maritime Organization (IMO) target all kinds of environmental impacts resulting from our business of 40%)activities. In this vision, we set the following interim milestones:– Pursue transportation and supply of new energy for a low-Case Study: Climate Transition Loan“K” LINE has arranged an operating lease for our (ICMA) and it achieved the highest recognition, Green1 (T), next-generation environmentally friendly LNG-fueled car as an overall evaluation. carrier through a climate transition loan with Mizuho Bank Ltd. The aim of climate transition finance is to accelerate the (MHBK) and Sumitomo Mitsui Trust Bank, Limited (SMTB).This efficient flow of financing to companies that address climate loan is recognized as the very first climate transition finance change risk as material issues for their core business activities, transaction in Japan. and to move beyond conventional business procedures to The loan was evaluated by the Japan Credit Rating Agency, achieve their GHG emission reduction target to contribute to Ltd., in line with the Climate Transition Finance Handbook global goals for decarbonization.published by the International Capital Market Association Finance OutlineFinance schemeChartererOwner/BorrowerAgreement dateLoan amountLoan arrangerLoan co-arrangerLenderUse of proceedsEvaluatorOverall evaluation“K” LINE (seller)Ship buy / sell contractShip charter contract“K” LINE (charterer)“K” LINELeasing companies’ special purpose company (SPC)Operating leaseMarch 10, 2021About ¥5.9 billionMizuho Bank, Ltd. (MHBK)Sumitomo Mitsui Trust Bank, Limited (SMTB)MHBK, SMTBJapan Credit Rating Agency, Ltd.Green1 (T)carbon societyPurchase of a next-generation environmentally friendly LNG-fueled car carrierTransition structuring agentMHBK, Mizuho Securities Co., Ltd., SMTBShip building contractShip building yardSPCTransition-linked loanLenderAssessmentAssessment of ESG policyRating company Use of Loan Proceeds• The loan was used toward the purchase of an LNG-fueled car carrier, one of the concrete action plans in our environmental strategy.• When compared with vessels powered by conventional heavy fuel oil, the vessel carrier is expected to be about 45% more energy efficient (Energy Efficiency Design Index (EEDI) basis), reduce sulfur oxides by about 100%, and reduce nitrogen oxides by 80% to 90% through the use of exhaust gas recirculation (EGR).Transition-Linked Loanwith sustainability performance targets (SPTs). Sustainability Performance Targets (SPTs)• The project is officially supported by the Ministry of the Environment and Ministry of Land, Infrastructure, Transport and Tourism as This transition-linked loan stipulates the following three SPTs:Below are details of Japan’s first transition-linked loan, and one of the largest-scale unspecified purpose loans to be linked “a model business using alternative fuels to reduce ship CO2 emissions.” Project Evaluation and Selection Processapproved by the Board. Management of Loan Proceeds• Following an evaluation and selection process by relevant departments to ensure that it met eligibility criteria, the project was • The proceeds of the loan will be managed by cash flows determined by contracts among the relevant parties.• All the loan proceeds are tied to this specific project.• The proceeds are tracked and managed through our internal accounting system. Reporting• All the funds procured from the loan have been used toward the purchase of the LNG-fueled vessel.• GHG (CO2) emissions from the vessel will be disclosed to the lenders annually.• Our environmental strategy KPIs will be updated on our website accordingly.SPT 1: Total yearly GHG emissions throughout the loan term (Target: 50% reduction by 2050 compared with 2008)SPT 2: Yearly CO2 emissions per ton-mile throughout the loan term (Target: 50% reduction by 2030 compared with 2008)SPT 3: CDP rating of A- or higher Note: All of the above SPTs are connected with a matrix table of loan interest to promote our transition strategy.11120202“K” LINE Group’s Sustainability Management“K” LINE Group’s Sustainability Management0202“K” LINE Group’s Sustainability Management“K” LINE Group’s Sustainability ManagementTransition-linked loanContentsMajor Awards and RecognitionCDP 2021 Climate Change A List“K” LINE has achieved the highest rating, A, for five consecutive years.https://www.cdp.net/en/companies/companies-scoresNikkei SDGs Management SurveyNikkei Research Inc. evaluated “K” LINE with a 4.0-star rating.https://www.nikkei-r.co.jp/service/survey/sdgs_survey/ (Japanese)Ministry of Health, Labour and Welfare“K” LINE was granted Kurumin certification for the second time, as a company that provides superior support for childcare.https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/kodomo/shokuba_kosodate/kurumin/index.html (Japanese)Daiwa Investor Relations Co. Ltd.“K” LINE was granted the Excellence Award in 2021.Each year, Daiwa Investor Relations Co. Ltd. evaluates and grades the online disclosure of information by listed companies through their investor relations (IR) websites, granting awards to the top-performing companies.https://www.daiwair.co.jp/news/internet_IR2021.html (Japanese)EcoVadishttps://ecovadis.com/“K” LINE was awarded a Bronze rating for overall sustainability initiatives in 2021 by EcoVadis, an internationally recognized provider of business sustainability ratings based in France.“K” LINEAbout ¥110 billion5 yearsLoan agreement dateSeptember 27, 2021Mizuho Bank, Ltd. (MHBK) Finance OutlineFinance schemeBorrowerLoan amountLoan termLoan arrangerLoan co-arrangerLenderEvaluatorTarget SPTsDevelopment Bank of Japan Inc. (DBJ), Sumitomo Mitsui Trust Bank, Limited (SMTB)Kansai Mirai Bank, Limited, THE SAIKYO BANK, LTD., THE SAN-IN GODO BANK, LTD., San ju San Bank, Ltd., Shinkin Central Bank, Suruga Bank Ltd., The Chugoku Bank, Limited, THE TOCHIGI BANK, LTD., DBJ, The Norinchukin Bank, The Hachijuni Bank, Ltd., The Higo Bank, Ltd., The Hyakujushi Bank, Ltd., The Hokuriku Bank, Ltd., MHBK, Mizuho Trust & Banking Co., Ltd., SMTB, The Yamaguchi Bank, Ltd., The Bank of Yokohama, Ltd., and other lendersTransition structuring agentMizuho Securities Co., Ltd., MHBKJapan Credit Rating Agency, Ltd.Note: By linking all of the above SPTs and interest rate terms in a matrix, it becomes a system for committing to the implementation of each of our transition strategies. Total GHG emissions CO2 emissions per ton-mile CDP rating“K” LINE has been included in global socially responsible investment (SRI) indices and received a range of awards in recognition of its efforts to enhance its initiatives for non-financial issues including corporate social responsibility (CSR) and environmental, social, External Recognition and governance (ESG) issues.SRI/ESG EvaluationContents• Dow Jones Sustainability Asia/Pacific IndexProvided by US-based S&P Dow Jones Indices LLC, this ESG index evaluates the sustainability of the world’s leading companies based on economic, environmental, and social criteria.https://www.spglobal.com/esg/csa/indices/djsi-index-family• FTSE Blossom Japan IndexCreated by the global index provider FTSE Russell, the FTSE Blossom Japan Index is designed to measure the performance of Japanese companies demonstrating strong ESG practices. The FTSE Blossom Japan Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.https://www.ftserussell.com/products/indices/blossom-japan• MSCI Japan Empowering Women Index (WIN)The MSCI Japan Empowering Women Index (WIN), developed by US-based Morgan Stanley Capital International (MSCI), is a stock price index that was created to classify companies with outstanding gender diversity based on MSCI’s unique Gender Diversity Score.https://www.msci.com/our-solutions/indexes/japan-empowering-women-index Note: The inclusion of “K” LINE in the MSCI Japan Empowering Women Index (WIN) and the use of the MSCI logo, trademark, service mark, and index name are not equivalent to support, promotion, or assistance of “K” LINE by MSCI and its affiliates. The MSCI index is the exclusive property of MSCI. MSCI, the MSCI index name, and the MSCI index logo are the trademark and service mark of MSCI and its affiliates.• S&P/JPX Carbon Efficient IndexOne of the ESG indeces adopted by Government Pension Investment Fund (GPIF), this index focuses on environmental issues and measures the performance of companies by evaluating their levels of information disclosure on carbon emissions, as well as their carbon emissions per unit of revenue.https://www.jpx.co.jp/english/markets/indices/carbon-efficient/index.html13140202“K” LINE Group’s Sustainability Management“K” LINE Group’s Sustainability Management0202“K” LINE Group’s Sustainability Management“K” LINE Group’s Sustainability ManagementS E C T I O N03EnvironmentEnvironmentEnvironment “K” LINE Group Environmental Policy “K” LINE Group Environmental PolicyThe “K” LINE Group is aware that our business activities can The Environmental Sub-Committee meets twice a year, bringing impact on the global environment, and we therefore set forth together top management and the environmental managers, in our environmental policy our determination and commit-assistant environmental managers, and sub-assistant environ-ment to minimize the impact of our business activities on the mental managers from each division of the Company to prepare global environment. basic plans and set targets on environmental matters for the So that we can successfully promote our environmental Group, monitor progress toward these targets, evaluate the activities in accordance with the environmental policy, the results, and reconfirm or review the targets.Corporate Sustainability Management Committee, which is led In addition, all Group companies come together so that the by the President & CEO, discusses and develops policies for entire staff working for the “K” LINE Group unites to promote promoting the sustainability activities of the entire “K” LINE environmental activities, and we hold a Group Environmental Group with two subcommittees: the Sustainability Conference every year to discuss and share awareness of Sub-Committee and the Environmental Sub-Committee. current environmental issues. “K” LINE Group Environmental Policy Core Concept The “K” LINE Group is aware and recognizes that addressing environmental concerns is an issue shared by all mankind. Therefore, the “K” LINE Group is taking proactive measures as an essential condition for its existence and for conducting a business enterprise, striving to reduce the environmental impact of its business activities, and seeking to contribute to the development of a sustainable society. Conduct Guidelines1. We are setting objectives and targets for environmental preservation and making improvements on an ongoing basis to reduce the impact on the environment from our business activities. Furthermore, we are complying with all environmen-tal treaties, laws and regulations as well as policies and voluntary standards to which the “K” LINE Group has consented.2. We are striving to protect the global and marine environment through fleet-wide implementation of safe operation practices and are establishing the organizations and structures necessary for such implementation.3. We are promoting research, development and introduction of ship facilities and equipment to improve ship energy efficiency and operating efficiency, which results in reduction of greenhouse gas emissions and the prevention of atmospheric pollution.4. In consideration of biodiversity, we are maintaining an awareness of the impact that the transport of ballast water and living organisms that attach to ship hulls have on ecosystems and working to protect those ecosystems.5. We are contributing to establish a recycle-based society by promoting the 3Rs (reduce, reuse and recycle) and promoting the effective re-use of resources, including ship recycling.6. The entire “K” LINE Group is and will continue to support and participate in social contribution activities intended to protect the environment.7. We are conducting education and training programs to elevate awareness and understanding of environmental preservation issues among each member of the entire “K” LINE Group.Revised in August 20121516Environment0303 Acquisition Status of Environmental Certification “K” LINE Group companies have acquired various environmen-tal certifications, including ISO 14001, and we are making a Groupwide commitment to environmental protection. Group companies that have acquired ISO 14001 certification account GREENKAIKEI%20EG.pdffor around 79% of our Groupwide net sales. Acquisition Status of Environmental Certificationhttps://www.kline.co.jp/en/csr/environment/management/main/07/teaserItems1/01/linkList/0/link/EMS%20 Environmental Targets and Results Action Plan / Environmental TargetsBased on our environmental management system (EMS), we continuously run our PDCA cycle. We have set our environmen-tal target for the year in line with the “K” LINE Environmental Vision 2050 and “K” LINE Group Environmental Policy. We have appropriately reviewed our achievements and have used these outcomes to set our target for next year. These environ-mental targets include not only measures related to ship oper-ations but also specific measures for office sites, such as the reduction of both water consumption and waste.Results of Our Environmental ActivitiesEnvironmental targets for 2021https://www.kline.co.jp/en/csr/environment/data/main/03/teaserItems1/01/linkList/00/link/2021KANKYOMOKUHYOU%20EN.pdf2020 Results of Our Environmental Activitieshttps://www.kline.co.jp/en/csr/environment/data/main/03/teaserItems1/01/linkList/0/link/2020KANKYOKATSUDO%20JISSEKI%20EN.pdf “K” LINE Environmental Vision 2050: Long-Term Environmental Guidelines for 2050 Revised “K” LINE Environmental Vision 2050: 2050 Goals and 2030 Interim MilestonesWe successfully achieved most of the 2019 interim milestones “Decarbonization” and “Aim for Zero Environmental Impact.” of the “K” LINE Environmental Vision 2050, which was formu-This vision shows the formulation of new 2050 goals and 2030 lated by the “K” LINE Group in March 2015. At the same time, interim milestones. “K” LINE Environmental Vision 2050https://www.kline.co.jp/en/csr/environment/management/main/010/teaserItems2/01/linkList/0/link/K-LINE_E-vision_en_2020_v2.pdfwe recognize that the business environment and demands of customers have changed since the formulation of the vision and there is a need to respond to the impact of climate change and the increasing demands for decarbonization. Accordingly, in June 2020, we announced our revised “K” LINE Environmental Vision 2050, with targets reorganized around the two issues of Revision of 2050 Targets: The Challenge of Achieving Net-Zero GHG EmissionsIn November 2021, we revised the 2050 goals for decarbonization in the “K” LINE Environmental Vision 2050. Reinforcement of global climate change countermeasures has become an urgent gaining momentum in every country and every industry. Amid these circumstances, the Group is also taking on the challenge of raising our target even further to net-zero GHG emissions by 2050. System Environmental Management System Establishment of an Environmental Management System (EMS)issue and the drive to achieve net-zero GHG emissions by 2050 is minaoshi_EN.pdfThe Challenge of Achieving Net-Zero GHG Emissionshttps://www.kline.co.jp/en/csr/environment/management/main/010/teaserItems1/01/linkList/0/link/2111vision%20We have established an EMS based on ISO 14001*1 and operate it to make constant improvements by identifying environmental impacts and minimizing them. We imple-mented the EMS in February 2002, after obtaining certi-fication from a third-party organization. Since then, we have been striving to enhance our environmental activi-ties by using annual reviews and renewal periods to check and ensure that our EMS complies with the ISO 14001 standard, is conducted in line with the PDCA cycle,*2 and is improved and corrected accordingly.*1 ISO 14001 is an international EMS standard set by the International Organization for Standardization (ISO). Requirements for the EMS are stipulated in ISO 14001.*2 Processes are separated into four steps: plan, do, check, and act. Following this cycle is one management method to continuously improve business activities.Continuous ImprovementACDPActCheckISO 14001 Certificationhttps://www.kline.co.jp/en/csr/environment/management/main/05/teaserItems2/00/file/isocert2022eng.pdfPlanDo1718EnvironmentEnvironment03030303EnvironmentEnvironmentLINE Group’s sustainability management. Additionally, in sible for operating the environmental management system Intensifying natural disasters Climate Change (Decarbonization and Low-Carbon Transition) Approach Environmental Initiatives and Response to TCFDClimate change is expected to expose humankind to major results of scenario analysis recommended by the Task Force on physical risks, such as serious natural disasters. To prevent Climate-related Financial Disclosures (TCFD).these risks, it is widely believed that global warming must be Since climate change countermeasures are an important prevented from increasing, and achieving this will require management issue, we have also adopted “expansion of worldwide effort, such as environmental regulations to signifi-safety, environmental, and quality initiatives” as a strategy in cantly reduce greenhouse gas (GHG) emissions.our medium-term management plan from fiscal 2020 and are In June 2020, we revised the “K” LINE Environmental Vision promoting effective initiatives.2050 and reviewed key issues and some targets based on the Environmental Governance Governance System for Environmental Risks and OpportunitiesIn April 2021, the “K” LINE Group restructured the existing technologies, with the Environment/Technology Committee, organization and reformed the promotion system for which formulates measures for compliance with environmental sustainability to ensure it is a key management objective. The regulations, including technical aspects. Each of these two Corporate Sustainability Management Committee, chaired committees functions as a forum for strategic discussions. The by the President & CEO, is enhancing corporate value by Environmental Sub-Committee, a subcommittee under the reviewing and formulating a promotion system for the “K” Corporate Sustainability Management Committee, is respon-October 2021, we established the new GHG Reduction (EMS) formulated in accordance with the “K” LINE Group Strategy Committee by integrating the Alternative Fuel Project Environmental Policy and the standards of the International Committee, which is in charge of accelerating initiatives for Organization for Standardization (ISO). The subcommittee is conventional LNG-fueled vessels and the LNG fuel supply also responsible for promoting other environmental activities.business and examining next-generation fuel and new Risks and Opportunities Implementing Scenario AnalysisThe Paris Agreement sets out a long-term target to pursue emissions may be insufficient, and that the 4°C warming efforts to limit the average global temperature rise to 1.5°C, scenario and the intensification of physical risk is a possibility. well below 2°C, compared to preindustrial levels.The Group must build the resilience to adapt to those In the spirit of the Paris Agreement, the International conditions to ensure that its business operations will continue. Maritime Organization (IMO), a specialized United Nations We have formulated road maps for how the Group should agency for maritime issues, has set targets and measures for prepare for the anticipated negative (risks) and positive international shipping activities. We are working to reduce the (opportunities) aspects of both the “below 2°C warming GHG emissions from our business activities in line with the scenario” and the “4°C warming scenario.”IMO’s policies, but we recognize that efforts to reduce GHG Scenario 1 Mainly transition risks related to the decarbonization of societyWhat We Must Do Stricter regulations, such as a carbon tax Customer actions to realize low or zero-carbon emissions Carbon capture and reuse, hydrogen and other technologies enabling low-carbon and decarbonized energy Need for new low-carbon and decarbonized energy supply and transportationHardware Install energy-saving equipment to improve ship operating efficiency Launch ships with low-carbon or decarbonized new fuel and propulsion technologies Make ships physically stronger Scenario 2 Mainly physical risks due to climate changeNatural disasters (acute risk) More typhoons and cyclonesChanges in the natural environment (chronic risk) Rising sea levels Changes in the land environment Changes in the ocean environmentSoftware Enhance digital and automation technologies to make opera-tions safer and more efficient Raise employee awareness and provide training in new technologies Construct a corporate structure capable of flexibly responding to needs, such as for reconstruction assistance Business activities Develop and enter new energy supply and transportation businesses Prepare fleet for new transportation technologies Increase capability for green ship recycling Participate in collection and study of marine plastic pollution Increase dialogue with administrators involved in improving port facilities, roads, and other infrastructure Increase involvement in policy-making with governments, the United Nations, and NGOsManagement Conference Executive Officers’ Meeting Entrusting Reporting Board of Directors SupervisingPresident & CEOEntrusting Reporting Indicators and Targets Aim for Net-Zero GHG EmissionsCorporate Sustainability Management Committee GHG Reduction Strategy Committee We will steadily promote an action plan for achieving the We will take on the new challenge of achieving net-zero Supervising/Directing Reporting Reporting Supervising/Directing interim milestones for 2030 that have been set out in our GHG emissions as a target for 2050. We will aim to help enrich Environmental Sub-Committee Sustainability Sub-Committee CII and 2030 Environmental Target Project TeamFleet Decarbonization Project Team Safety and Environmental Technology Project Team “K” LINE Environmental Vision 2050. the lives of people by also promoting support for the decar-2030 Interim Milestones“K” LINE low-carbon transition: Improve CO2 emissions by 50% compared with 2008 levelsThe challenge of net-zero GHG emissionsSupport development of a low-carbon society: Support the decarbonization of society: Transport and supply new energy for a low-carbon societyBe the transporter and supplier of new energybonization of society.2050 Targets “K” LINE decarbonization: 1920EnvironmentEnvironment03030303EnvironmentEnvironment Strategies and Initiatives “K” LINE Decarbonization and Low-Carbon TransitionWhile taking on the challenge of achieving net-zero GHG emissions in 2050, we will first work toward achieving the 2030 interim milestones set out in the “K” LINE Environmental Vision 2050 by making the shift toward ships fueled by liquefied natural gas (LNG), ships fueled by liquefied petroleum gas (LPG), and ships that use new zero-emission fuels such as ammonia and hydrogen, from the perspective of achieving decarbonization and low-carbon transition at “K” LINE. Additionally, we will promote initiatives for reducing 2. Seawing Automated Kite System That Utilizes Wind Power Propulsion • Developed in collaboration with French company AIRSEAS, a spin-off from AIRBUS • Considering expanding the use of this new technology, which can be installed on any type of vessel, including existing ones, to all vessels Installation on a capesize bulk carrier scheduled to begin in fiscal 2022CO2 emissions, such as using the Seawing automated kite system (wind propulsion) and Kawasaki Integrated Maritime Solutions Expecting a reduction in CO2 emissions of more than 20%LNG-fueled capesize bulker(integrated vessel operation and performance management system).Pursuing a 45% to 50% reduction in CO2 emissions through the synergistic effect of installation on LNG-fueled vessels 1. New Fuels (Fuel Conversion)Expand introduction of LNG-fueled ships• Expanding introduction of LNG-fueled ships in the 2020s, investing in approximately 40 vessels by 2030 Delivered “K” LINE’s first LNG-fueled car carrier, CENTURY HIGHWAY GREEN, in March 2021 Plan to deliver “K” LINE’s first LNG-fueled capesize bulk carrier in 2024 Decided to invest in a further eight LNG-fueled car carriers by 2025Approximately 25% to 30% reduction in CO2 emissions, compared with heavy-oil fueled vesselsCENTURY HIGHWAY GREENIntroduce LPG-fueled ships• A very large gas carrier (VLGC), which is mainly fueled by LPG and capable of carrying LPG or ammonia, with a view to transporting ammonia in the future (planned delivery in 2023)Approximately 20% reduction in CO2 emissions, compared with heavy-oil fueled vesselsIntroduce zero-emission vessels that use new fuels such as ammonia and hydrogen• Considering the introduction of zero-emission fuels, such as ammonia and hydrogen, and carbon-neutral fuels, such as bio-LNG and synthetic fuel • Participating in a joint study framework for researching the use of ammonia as a maritime fuel that crosses industrial boundaries, such as those between shipping companies, trading companies, shippers, and manufacturers, with the aim of using • Considering the target of commercialization and the introduction of zero-emission ammonia-fueled vesselsvessels in the second half of the 2020sZero CO2 emissions 3. Improvement of Operational EfficiencyKawasaki Integrated Maritime Solutions (Integrated vessel operation and performance management system) • Collects vessel operation data in real time, including fuel consumption, output power, and ship speed, and pursues the improved operational management of the vessel by using an optimum navigation system that calculates safe and fuel-efficient DATA COLLECTING & MONITORINGrecommended routes• Recently achieved visualization of performance degradation and impact of external disruption for each individual vessel using AI data analysis technology to further maintain and improve operational efficiencyApproximately 3% to 5% reduction in CO2 emissions through installation of Kawasaki Integrated Maritime SolutionsKawasaki Integrated Maritime SolutionsPERFORMANCE ANALYSISOPTIMUM NAVIGATION Photograph provided by Kawasaki Heavy Industries, Ltd.Hybrid propulsion system Shaft generatorMain engineDiesel generator 4. Other Energy-Efficient and Decarbonization Technology and Equipment• Considering a hybrid propulsion system that combines a shaft generator, binary cycle power generation,* and lithium-SGion batteries * A method of generating electricity by heating and evaporating a working fluid with a low boiling point through low-level heat sources, such as warm water, low-pressure steam, or air, and using the steam to turn a turbineLithium-ion batteryPhotographs provided by the Japan Ship Technology Research AssociationBinary cycle power generation Power generationCO2 capture plant on vesselin August 2021• World’s first CO2 capture plant on a vessel installed on coal carrier CORONA UTILITY • Carrying out project demonstration in collaboration with Mitsubishi Shipbuilding Co., Ltd., and Nippon Kaiji Kyokai, aiming for commercialization of the plant2122EnvironmentEnvironment03030303EnvironmentEnvironment 5. Raising Funds through Climate Transition 4. Other Initiatives • Raised funds through Japan’s first climate transition loan (purpose specified finance) for the LNG-fueled car carrier, CENTURY • Collaborate with Chubu Electric Power Co., Inc., on a tidal energy project in Canada (aim to begin operation in 2023) HIGHWAY GREEN, in March 2021 • Looking into carbon credits, carbon offsets, etc. • Raised approximately ¥110 billion through Japan’s first transition-linked loan (TLL) (purpose unspecified finance) in September Note: The offsetting of carbon emissions may be carried out through an internationally accepted method in the future.2021. Funds to be used to finance a range of environmental countermeasures aimed at decarbonization Related Data CO2 Emissions of “K” LINE GroupScope 1Scope 2Scope 3Category2016201720182019202012,971,19213,417,62512,536,13410,325,2249,202,613Location basisMarket basis31,02527,66930,50525,01927,30623,13526,39726,2201,551,0141,516,4451,424,1981,304,8031,219,525Fuel Oil ConsumptionFuel oil3,872,2094,101,5143,823,7763,140,0392,809,07420162017201820192020Greenhouse Gas (GHG) Emissions per Deadweight Ton-Mile*20162017201820192020All types of vesselsContainer shipsBulk carriers and tankers5.319.113.045.369.252.995.328.432.984.827.702.86(Tons)25,19121,780 (Tons)(g-CO2/ton-mile)4.497.032.75Offshore support vessel* Index for transporting one ton of cargo one nautical mile (1,852 meters). 6. Launch of Internal Carbon Pricing future earnings contribution of ¥4,000 per ton of CO2• Full-scale internal launch of operation in April 2021. Calculated with reference to an economic index that takes into account a • Promote low-carbon transition and decarbonization projects by using them as an indicator for the evaluation of investment projectsSupporting the Development of a Decarbonized and Low-Carbon SocietyWe will promote initiatives, such as supporting the offshore wind power business, participating in and creating a fuel supply network for the hydrogen and ammonia transportation business, and participating in the CO2 transportation business, as a target for support-ing the development of a decarbonized and low-carbon society set out in the “K” LINE Environmental Vision 2050, which aims to achieve net-zero GHG emissions by 2050. 1. Support Offshore Wind Power Business• Established “K” Line Wind Service, Ltd., together with Kawasaki Kinkai Kisen Kaisha, Ltd., and provided offshore support vessels and transport vessels for offshore wind farm businesses• Supporting target set by the Japanese government for the introduction of offshore wind power generation of 30 gigawatts to 45 gigawatts by 2040 from an operational and transportation perspective 2. Participate in Transportation of Hydrogen and Ammonia, and Create Fuel Supply Network• Participate in CO2-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA) with the aim of creating an international supply chain for the transportation to Japan of CO2-free hydrogen made from Australian brown coal• Considering re-entering the ammonia transportation business • Considering participation in the project to create a supply network for hydrogen and ammonia at all sitesPhotograph provided by Kawasaki Heavy Industries, Ltd. 3. Participate in CO2 Transportation Business• Participate in R&D and demonstration project for CO2 marine transportation together with the Engineering Advancement Association of Japan, Nippon Gas Line Co., Ltd., and Ochanomizu UniversityEmission / collectionExtractionTankLiquefactionJoint development of transportation vesselReceivingRe-vaporizationLiquefied CO2 carrierTankHeatingSeparation / collection Transportation ReceivingShipping terminal Marine transportation Receiving terminal2324EnvironmentEnvironment03030303EnvironmentEnvironmentReduce “K” LINE’s Impact on the Sea and Air Approach Basic Principle Key Targets Safety in navigation and cargo operations is an immutable our corporate principle and vision. At the same time, we will mission in a shipping business. The “K” LINE Group contrib-contribute to reducing our impact on the sea and air, continue utes to society through safety in cargo and navigation opera-promoting efforts to reduce oil spill accidents to zero, and tions by providing reliable and excellent services, as stated in reduce the environmental impact from vessel operations.Promoting Efforts to Reduce Oil Spill Accidents to Zero• Strengthen safety in navigation (use the optimal navigation support system and develop automatic ship navigation for vessel steering and engine plant operation) • Enhance ship resilience, such as seaworthiness, and maneuverability • Strengthen all other safety measures, including safety training for staff Reducing the Environmental Impact of Ship Operations• Continue measures to manage ballast water, reduce emissions of sulfur oxide (SOx) and nitrogen oxide (NOx), and install Safe Operations with Kawasaki Integrated Maritime Solutions (Integrated Vessel Operation equipment to comply with regulations• Reduce the impact of shipping operations on marine mammals • Increase staff environmental awareness Initiatives and Performance Management System)Kawasaki Integrated Maritime Solutions rolled out across our fleet in March 2016 continues to focus on developing engine plant operation support and failure prediction and diagnosis. Together, these enhance our safety in navigation and environ-mental protection measures.DATA COLLECTING & MONITORINGKawasaki Integrated Maritime SolutionsPERFORMANCE ANALYSISOPTIMUM NAVIGATIONThe “K” LINE Group Environmental AwardThe “K” LINE Group Environmental Award recognizes Group officers and employees who take action to protect the environment and biodiversity and provide a significant contribution to the sustainability of our business operations.Raising Environmental Awareness through E-LearningThe “K” LINE Group’s environmental management system (EMS) provides education and training programs to maintain and raise the environmental awareness of Group staff.EnvironmentalE-learning 2021General editionKawasaki Kisen Kaisha, Ltd.Environment Management GroupMar/20211 Related Data SOx and NOx Emissions from VesselsSOx emissions NOx emissions183,292274,430195,166284,326188,102262,226129,786202,67820162017201820192020(Tons)35,983181,429SOx and NOx Emissions per Deadweight Ton-MileUnit20162017201820192020SOx emissions g-SOx/ton-mileNOx emissionsg-NOx/ton-mile0.0820.1180.0810.1150.0800.1120.0670.0970.0220.089Other Environmental Data of “K” LINE’s vessels Waste Generation, etc. (All Types of Vessels)20162017201820192020BilgeSludge* Garbage on board 4.984.23.74.143.64.05.544.14.04.153.93.5* The residue left over after cleaning and processing fuel and lubricating oil Gray Water from “K” LINE Vessels (Owned Ships) (m3/ship-month)4.024.03.5(Metric tons) All types of vessels (owned ships)82,887.878,768.890,841.882,485.064,421.6201620172018201920202526EnvironmentEnvironment03030303EnvironmentEnvironmentSupport the Environmental Activities of Society Related Data Office Environmental Data ElectricityTo contribute to the realization of a sustainable future, we are reinforcing collaboration between industry, academia, and govern-ment, including countries, local government, and universities, to carry out various environmental preservation initiatives.Annual consumptionAnnual consumption per person841,007912825,971881821,109866789,97186020162017201820192020Annual consumption4,845,6444,619,2494,406,9683,852,2242,178,527Annual consumption per person5,2564,9514,6494,1962,47320162017201820192020In-House Enlightenment through Environmental Volunteer ActivitiesAnnual consumptionAnnual consumption per person5990.905840.865460.795090.7520162017201820192020Implementation of Responsible Ship Dismantling and Resource RecoveryAll types of vessels76,26818,5095,92313,774114,05520162017201820192020 Approach Basic PrincipleKey Targets Initiatives • Promote volunteer environmental protection activities• Increase the capability to accommodate green ship recycling • Participate in the collection and study of marine plastic pollution We engage in various activities to raise the environmental consciousness of our employees further, including initiatives to protect biodiversity and create pleasing landscapes. We also are collaborating with the NPO Chiba University Students Committee for Environmental Management System to protect community nature areas and to clean business sites and seashores.Ship dismantling enables the recovery of metals that can be recycled into new products and services and provides work and community economic activity. When disposing of our vessels, we follow our own environmental impact assessment checklist to select dismantling yards taking into account occupational health and safety and environmental performance. Office Paper Water Waste WasteAll officesAll vesselsTotal Quantity of Recycling Ship Recycling201620172018201920201,3641,5641,0228232016201720182019202010,6298,4759,1107,4776,361(kwh)736,212836(Sheets)(m3)3180.50(Tons)(Tons)571Joint Research on Marine Plastic Waste with Tokyo University of Marine Science and Technology“K” LINE has signed an agreement with Tokyo University of Proposed method for sample collection to be carried out by Marine Science and Technology to start joint research on “K” LINE vesselmarine plastics. The joint research will evaluate how much plastic waste can be collected from common seawater intake that is filtered by ships on voyages. Specifically, ”K” LINE vessels will take samples from t