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: maritime-executive.
01 June 2016
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