Anglo American is one of 14 Sea Cargo Charter Signatories whose climate score remains within the limits of the permitted alignment trajectory, consistent with targets set by the International Maritime Organisation in its Initial GHG Strategy.
Anglo American is one of 14 Sea Cargo Charter (SCC) Signatories whose chartering activities fall within the limits of a decarbonisation trajectory that corresponds with the International Maritime Organisation’s (IMO) ambition to reduce total annual GHG emissions from the sector by at least 50% by 2050, based on 2008 levels.
As outlined in the Charter’s Annual Disclosure Report 2023, and resulting from efforts to enhance the efficiency of our shipping operations, we have improved our annual climate alignment score from -0.9% to -3.7%, based on a 12-month monitoring period from January to December 2022.
The simple average score of all organisations that disclosed the climate footprint of their chartering activities – a total of 33, representing more than 17% of total bulk cargo transported by sea in 2022 – was 1.6%. Alignment scores are based on an average reporting rate of 90% from Signatories1.
The Sea Cargo Charter, of which Anglo American is a founding signatory, was formed with the aim of addressing the environmental impacts of global, seaborne trade. It provides a framework to align chartering activities with responsible environmental behaviour and stewardship, and seeks to drive transparent climate reporting and behavioural change throughout the maritime value chain.
Peter Lye, Head of Shipping at Anglo American, said: “The work we are doing to decarbonise our shipping activities relies on a comprehensive approach, underpinned by the trial of alternative fuels and the deployment of new technologies onboard our chartered vessels, to achieve greater efficiency and a reduced footprint.
“By adopting the Sea Cargo Charter framework, we can rely on transparent and accurate methodologies to guide and track our decarbonisation trajectory, helping to ensure consistency with IMO standards and alignment with our ambition to reach carbon neutrality for our controlled ocean freight by 2040.”
While shipping is one of the most efficient sectors emissions-wise, its sheer size (it carries around 90% of world trade) means it is responsible for approximately 3% of global GHG emissions2. In line with our ambition to reduce our Scope 3 emissions by 50% by 2040, our aim is to achieve carbon neutrality across our controlled ocean freight activities by 2040, with an interim 30% reduction in emissions by 2030. This exceeds targets set out in the IMO’s Initial GHG Strategy.
We are employing various measures to achieve this, such as improving the efficiency of our shipping operations – including transporting most of our volume on bigger bulk carriers, which can significantly impact overall climate alignment scores.
Minimising reduced ballast legs across our diverse cargo portfolio through backhaul trade, and conscious decision making in terms of vessel selection, improved vessel utilisation rates, proactive voyage monitoring and exploring vessel design improvements, are also among the actions we are taking to drive greater operational efficiency.
The use of alternative, lower carbon marine fuel options, like Liquefied Natural Gas (LNG), is one such example. The introduction of the Ubuntu LNG dual-fuelled Capesize+ vessels to our chartered fleet is a core component of our efforts to decarbonise our controlled ocean freight activities. Combining the use of LNG with innovative technology will allow the fleet to achieve an estimated 35% reduction in carbon emissions, while alternative, carbon neutral fuel options such as sustainable biofuels and green ammonia are advanced.
We now have eight Ubuntu vessels in operation – including the most recent additions to our fleet, Ubuntu Empathy and Ubuntu Humanity. The remaining two of the 10-strong fleet are scheduled to be delivered by the first quarter of 2024.
To see a timelapse video of the Ubuntu fleet’s construction and launch, click here. You can also learn why dual-fuel technology is an attractive solution for shipping companies keen to reduce their environmental footprint here.
As part of a comprehensive framework of medium- and long-term complementary measures Anglo American is exploring to decarbonise our shipping activities, we are also collaborating across the industry to help embed sustainability best practices and accelerate change. In September 2019, we were one of 110 companies to join the Getting to Zero Coalition, an alliance committed to getting commercially viable deep sea zero emission vessels powered by zero emission fuels into operation by 2030.
More recently, we joined an industry consortium convened by the Global Maritime Forum – together with Tata Steel, CMB, Freeport Saldanha and ENGIE – to explore options to develop a maritime green corridor for the zero-emission shipping of iron ore between South Africa and Europe..
As of June 2023, the Sea Cargo Charter has 36 signatories comprising bulk cargo owners from a variety of segments, including grains and agricultural products, chemicals, energy and metals and mining. Membership includes both commodity traders and ship owners interested in advancing good environmental stewardship.
Learn more about the Sea Cargo Charter and read its Annual Disclosure Report 2023: www.seacargocharter.org
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1 Sea Cargo Charter (Signatories have different portfolios, different ship types and different numbers of voyages. The simple average score of reporting Signatories in the Sea Cargo Charter report – all reported climate alignment scores calculated with equal weight – was 1.6%).
2 S&P Global Platts Analytics