Pan Ocean will solidify its position as a global leading shipping and logistics company by enhancing corporate and shareholder value based on transparent management.
With the increasing impact of climate change, policy regulations are being strengthened. The IMO (International Maritime Organization) is preparing technical (EEDI, EEXI), operational (CII rating), and market-based (carbon trading schemes) measures to achieve greenhouse gas reduction targets. Moreover, in 2017, the European Union implemented regulations to monitor, report and verify greenhouse gas emissions from ships, and in 2023, included the shipping sector in the EU ETS (Emissions Trading System).
Impact on External Stakeholders
Pan Ocean aims to mitigate negative environmental impacts through efforts to reduce greenhouse gas emissions and improve energy efficiency, including resource recycling and biodiversity conservation. By establishing eco-friendly logistics infrastructure, we not only enhance our environmental performance but also positively influence customers and local communities within our value chain, thereby contributing to the creation of a better society.
Goals and Implementation Status
In 2022, to lead the carbon neutrality efforts in the bulk shipping industry, Pan Ocean declared its commitment to 2050 carbon neutrality. Pan Ocean has established and is pursuing the 2030 Carbon Reduction Strategy, a concrete action plan. The company plans to align with the SBTi (Science-Based Targets initiative) by 2024, adhering to the 1.5°C scenario and revising its overall environmental roadmap accordingly.
Goal: Establish and Implement a Carbon Neutrality Plan
* The reduction metrics were calculated by comparing the greenhouse gas emissions from Pan Ocean's existing HFO ships with those from newly introduced LNG ships. For details, please refer to page 37.
** Source: TU Delft, Eco-costs emissions 2022 V1.1
Issue 2 Enhancement of Safety and Health Management
Impact on Business
Pan Ocean holds the safety and health of its employees and stakeholders as its top priority. To this end, the company has established the Safety Management Office, a dedicated organization focused on safety and health. By declaring its safety and health objectives and management policies, Pan Ocean has committed to establishing a safety management system, setting safety goals, providing systematic training, proactively preventing accidents, strengthening cooperative frameworks with stakeholders, and ensuring employee communication and participation.
Impact on External Stakeholders
We place significant emphasis on safety and health management in providing logistics infrastructure services. Strengthening internal safety and health management helps protect employee safety and health while boosting productivity. For customers, we ensure a safe logistics environment to guarantee business continuity and build trust while also fostering a culture of safety throughout the industry by promoting safety and health management practices among suppliers.
Goals and Implementation Status
To advance as a global leading shipping & logistics company that prioritizes safety and health, we have set a goal of maintaining zero serious occupational accidents. The company has developed strategies and action plans to build a systematic framework for managing safety and health goals. In 2023, the major accident rates for both land and sea operations were 0%, with onshore employee accident rates at 0% and offshore employee accident rates at 0.4%. Pan Ocean also conducts risk assessments to further reduce accidents among suppliers. In the first half of 2023, 56 companies were evaluated, and in the second half, 55 companies.
Goal: Achieve Zero Serious Occupational Accidents
* LTIFR: Lost time injury frequency rate (per million hours)
Issue 3 Establishment of Ethics and Compliance Management
Impact on Business
Pan Ocean is committed to building trust with stakeholders through ethical management. In line with its anti-corruption policy, the company strictly prohibits any form of direct or indirect political contributions. Violations of the ethical management guidelines are addressed immediately and in accordance with company regulations, and we have a zero-tolerance policy. In addition, compliance with key ethical requirements, such as the prohibition of bribery, solicitation and insider trading, is assessed as part of employee performance reviews, and the results are directly tied to the compensation system.
Impact on External Stakeholders
Pan Ocean actively mitigates compliance risks through robust ethics and compliance management, thereby enhancing its credibility with shareholders and investors and increasing shareholder value. In addition, Pan Ocean is strengthening its reputation by improving the satisfaction of external stakeholders, including customers and suppliers, which has a positive impact on financial performance.
Goals and Implementation Status
Recognizing the importance of integrity and ethical management for corporate sustainability, Pan Ocean has implemented an AP(Anti-corruption Program). The company conducts regular risk assessments to identify potential corruption risks and develop response strategies, and aims to establish a system that effectively prevents and addresses corruption.
Goal: Achieve Zero Ethical Violations (Anti-Corruption)
Issue 4 Collaborative Growth Activities and Supply Chain Sustainability Management
Impact on Business
Pan Ocean manages supply chain risks and opportunities by integrating sustainability into every stage of supplier selection, operation and evaluation as it strives for mutual growth with its suppliers. The company has established a code of conduct for suppliers that covers safety, human rights, the environment, ethics and management systems, and requires voluntary compliance. Through these signed compliance agreements, we ensure the sustainability of the supply chain.
Impact on External Stakeholders
Pan Ocean collaborates with its numerous suppliers to manage sustainability and mitigate supply chain risks. Through collaborative growth initiatives, Pan Ocean helps to boost the competitiveness of its suppliers, leading to positive outcomes and increased customer satisfaction through efficient supply chain management.
Goals and Implementation Status
Pan Ocean selects key suppliers based on various factors, including purchase volume and financial criteria, and applies advanced management procedures to these suppliers. In 2023, the company distributed its code of conduct and obtained signed compliance agreements from 51 designated key suppliers. We plan to expand the code of conduct signing process across the entire supply chain to further strengthen sustainability.
Goal: Ensure Compliance with the Supply Chain Code of Conduct
