Wan Hai Lines

Wan Hai Lines has set a target to reduce its scope 1 emissions intensity by 70% by 2050 compared to 2008 and, to date, has reduced emissions intensity by about 33% – due to energy conservation projects increasing the fleet’s efficiency. In 2020, the company spent more than USD 108 million on energy conservation projects. The company aims to carry out a fleet replacement plan, where new vessels will be equipped with energy-saving engines and equipment to reduce emissions, but no details of this plan are currently provided.

Wan Hai Lines participates in and has senior level governance roles at several international associations and organisations. The Vice Chairman of the company sits on the boards of the World Shipping Council and the Global Maritime Forum. The company should use this opportunity to influence climate decision-making on a global industry level.

Based on its current fleet, the company is projected to greatly exceed its cumulative 1.5°C carbon budget between 2021 and 2035. The company invests in low-carbon vehicles, but only for the company’s terminals. The company can benefit from adding low-carbon alternatives to its fleet.

Wan Hai Lines has set a target to reduce its scope 1 emissions by 41.5% by 2030 and by 70% by 2050 compared to 2008. Neither of these targets is ambitious enough to align with the company’s 1.5°C pathway in the target year.

The company plans to increase the efficiency of its fleet, by using slow steaming and equipping it with more efficient technologies, and through the use of low-carbon ships and renewable energy at the company’s terminals.

The company is investing in developing fuel oil and material management systems, has installed propeller boss cap fins on its ships and has equipped new vessels with energy-saving equipment. It spent about USD 15 million on research and development in 2021, but did not disclose how much went to low-carbon technologies. In 2020, the company spent more than USD 108 million on energy conservation projects.

The company’s reported emissions intensity reduced by 33% by 2020 compared to 2008. The emission intensity is trending downward but not at the rate required by the company’s 1.5°C pathway. In order to align with its decarbonisation pathway, the company needs to reduce emissions by about 5% annually. Since 2015, the emissions reduction was equal to 2% on average.

Wan Hai Lines has not set a target to become net zero but aims to reduce its scope 1 emissions by 70% by 2050 compared to 2008. This plan is supported by a 2030 interim target and is based on increasing the fleet’s efficiency. However, the company’s reliance on technology solutions does not match its relatively low spending on R&D.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of a company commitment to gender equality and women’s empowerment in the broad sense. Furthermore, the company can strengthen its disclosure on its living wage and working hours practices, and its collective bargaining and workforce diversity fundamentals.

While the company includes anti-bribery and anti-corruption clauses in its contracts with business relationships, no evidence was found of a corresponding policy for the company’s own activities. Furthermore, no policies or commitments of the company related to other key ethical business topics of personal data protection for employees and customers, tax, lobbying and prohibition of political contributions were found in the public domain.