NYK and its subsidiary, NYK Bulk & Projects Carriers Ltd., recently accomplished the dismantling of a heavy-lift vessel named Kamo at the PHP Ship Recycling Facility in Bangladesh. This achievement marked a significant milestone as NYK became the first Japanese shipping company to carry out ship dismantling at the yard, in full compliance with the ship recycling regulations outlined in the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009, commonly referred to as the Hong Kong Convention.
Operated by PHP Ship Breaking and Recycling Industries Ltd., the facility adheres to the requirements of the Hong Kong Convention and has been certified by NYK. To ensure strict adherence to these standards, the NYK Group dispatched supervisors and seafarers to oversee environmental pollution prevention and industrial accident prevention measures. In line with the UN Guiding Principles on Business and Human Rights (UNGPs), the NYK Group conducted thorough human rights due diligence through a third-party assessment, confirming the utmost respect for human rights throughout the entire process.
Ship-recycling yards, primarily located in developing countries like India and Bangladesh, have garnered international attention due to the pressing need for implementing appropriate measures to prevent environmental pollution and industrial accidents. Bangladesh’s ratification of the Hong Kong Convention on June 26 is a significant step toward its enforcement, set to take effect on June 26, 2025. In the interim, the international community is expected to actively address the challenges faced by ship-recycling yards.
NYK has proactively engaged in enhancing anti-pollution measures and safety controls within the ship-recycling industry, participating in the Japanese government’s monitoring committee for Bangladesh yards. On July 3, NYK granted certification to two ship-recycling yards in Bangladesh that meet the company’s stringent standards. By promoting ship recycling exclusively at yards that align with both NYK’s standards and the Hong Kong Convention, the NYK Group aims to contribute to the realization of a sustainable society and environment.
On March 10, 2023, the NYK Group unveiled its medium-term management plan, “Sail Green, Drive Transformations 2026 – A Passion for Planetary Wellbeing.” This plan emphasizes growth strategies centered around environmental, social, and governance (ESG) principles, in alignment with the Group’s mission of “Bringing value to life” and its new corporate vision for 2030, which focuses on creating value beyond the scope of a comprehensive global logistics enterprise through core business advancement and the development of new ventures.
The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009, was adopted by the International Maritime Organization in May 2009 to ensure occupational safety and environmental protection during ship dismantling. To come into force, the Convention requires:
- Ratification by at least 15 countries
- Merchant shipping tonnage of the signatory countries comprising at least 40%
- The annual dismantled tonnage of the signatory countries in the last 10 years amounting to at least 3% of the maximum annual dismantled tonnage.
As of June 2023, 22 countries, including Japan, India, and Bangladesh, have ratified the treaty, paving the way for its implementation.
NYK’s certification process ensures that ship-recycling yards meet rigorous standards in environmental protection, worker health and safety management, and the respect for human rights. Additionally, the UN Guiding Principles on Business and Human Rights (UNGPs), established in 2011, serve as guidelines for states and companies to prevent, address, and rectify human rights abuses committed within business operations.
Human rights due diligence encompasses a series of procedures aimed at analyzing and evaluating human rights risks, as well as implementing appropriate measures to address them.