A report on the
human rights and environmental risks related to ship breaking on the Indian
sub-continent was released last week that highlights on-going controversy
regarding Statements of Compliance with the Hong Kong Convention and
limitations of the E.U. Ship Recycling Regulation.
The report entitled
Shipbreaking practices in Bangladesh, India and Pakistan. An investor
perspective on the human rights and environmental impacts of beaching was
commissioned by KLP, Norway’s largest pension fund, and produced by the
International Law and Policy Institute. It examines the shipbreaking practices
in Bangladesh, India and Pakistan.
Since September
2015, the Japanese classification society ClassNK has issued Statements of
Compliance (SOC) to four shipbreaking yards in Alang, India. ClassNK issues a
SOC to ship recycling facilities which verifies that they are in compliance
with the Hong Kong Convention.
However, the report
states that the certifications have caused debate over which criteria ClassNK
uses to meet certifications and how they interpret the Hong Kong Convention.
The environmental organization Bellona has stated that even at yards that have
built some permanent structures, the waste is still dumped in the tidal zone
and the organization queries why media and NGOs are denied access to the yards
to ascertain whether the requirements of the Hong Kong Convention are indeed
fulfilled.
ClassNK lists
impermeable flooring as a key criterion for compliance certification, but the
NGO Shipbreaking Platform points out that the yards certified do not all have
impermeable flooring where ship-cutting is conducted.
Additionally, the
report states: Whilst there is clearly a development for the better at some
shipbreaking yards in India, it remains an open question to what extent the
human rights and environmental concerns are addressed. Leading NGOs and media
were hoping to join the delegation that visited shipyards in Alang in April
2016, but were in the end denied access.
The report states
that the new E.U. Ship Recycling Regulation can easily be circumvented by
shipowners reflagging their vessels. The regulation aims to direct ships flying
the flag of a Member State to E.U.-approved ship recycling facilities that
practice safe and environmentally sound methods of dismantling ships
“Weak enforcement
systems will continue to challenge implementation of international standards in
the states that are home to the shipbreaking yards. Hence to a large degree
addressing the environmental and human rights issues related to shipbreaking on
the beaches in South Asia is, and will continue to be, a matter of how the
shipping companies respond to the calls for sustainable and safe ship recycling
practices.”
The report argues
that the responsibility of companies operating in the global market place does
not stop at its own doorstep, but extends to adverse human rights impacts in the
entire value chain. International standards by which corporate responsibility
can be measured include the OECD Guidelines for Multinational Enterprises and
the UN Guiding Principles for Business and Human Rights (UNGP). Companies are
required to carry out a risk-based due diligence with respect to the human
rights as well as environmental impact of their business activities, including
their value chain. For shipping companies, this would entail taking
responsibility of their ships from cradle to grave, as recommended by the
Norwegian Shipowners’ Association, states the report.
In the report’s
foreword, CEO of KLP, Håvard Gulbrandsen, states: “We hope that the report can
help raise awareness of the severe human and environmental risks beaching can
entail for shipping industry companies, their customers, and also for other
investors. […] KLP hopes to encourage investors to work together to engage with
companies on improving labor and environmental conditions. The shipping
industry is and will be an important part of Norwegian investors' portfolios
for the foreseeable future. KLP's goal is to work towards a future where
responsible shipbreaking is the industry standard.”
Source: the
maritime executive. 1 June 2016.
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