The Company is aware that the surrounding environment and communities may be affected by its business operations. Therefore, it has set the policy encouraging environmentally-friendly business activities. To reduce aforementioned impacts caused by the business operation, the Company has conducted a risk assessment prior to a launch of new projects and sought to find the most effective solution. Moreover, the Company sets goals to minimize the use of non-eco-friendly materials, as well as initiates campaigns on a responsible use of natural resources and the limited use of non-renewable energy. The Company also encourages and activates an environmentally responsible mindset among employees through continuous participation in various activities such as reforestation.
The Company is committed to be more environmentally responsible and determined to improve its role in environmental protection. At the same time, it never ceases to find the best practice for sustainable organizational development. For this reasons, its business operations are conducted in accordance with environmental legal requirements and international standards to promote constant development and to move towards its sustainable goals. The Company inspires employees via business communication to ensure that in all its operations, at every value chain, it will benefit environmental management. There are 4 major environmental management issues: waste management and product life cycle, energy management, greenhouse gasses emission, and water and wastewater management.
The Group places importance on environmentally responsible business operations and realizes that effective environmental management and stewardship are the engine that drives the business to sustainable growth. The Company is committed to integrating environmental management into its operations, thus formulating an environmental policy, in order to achieve effective and efficient practice. More details can be found at the Company’s website (www.thoresen.com)
Environmental Performance of the Company
Nowadays, the demand for energy has increased globally due to the increasing demands from consumers for various energy. The Company realizes the importance of non-renewable energy and that it is a significant factor in business operations. Efficient energy management will not only cut production costs but also mitigate negative impacts on the environment and global community.
The Company policy supports energy efficiency in its buildings and smart choice making, such as turning the lights off during lunch break to save energy or using eco-friendly LED light bulbs. The Company’s Administrative Department is responsible for energy management in its offices. Furthermore, the Company is also determined to find eco-friendly alternative energy and control pollution to make sustainable business operations happen.
For Thoresen Shipping, standard light bulbs in the office and container ships were replaced by LED tubes, which generate less heat, more energy-saving. In the year 2020, the Company had changed the lighting system to be LED tubes on every vessel. Furthermore, the Alpha Lubricator control system for large machines fuel pumping and the tool Mewist Duct on the tilter are installed on the ships to improve engine performances, cut energy use in each sailing, and save fuel. At the same time.
Mermaid realizes that energy usage, such as electricity purchased or generated via gas turbine and diesel engines, could impact environment. Mermaid identifies the main source of energy consumption from its office and its marine operation sites. The company has therefore been monitoring the amount of energy usage and impact at every site and offices. In order to reduce carbon emissions from energy consumption, the management requires the company to manage the energy usage effectively and comply with the updated standards and requirements. As a result, Mermaid’s vessel fuel oil consumption further declined in 2021, despite a recovery in business activities and vessel operations due to rising client’s demand from Saudi Arabia.
Apart from Carbon Dioxide emissions, emissions of Nitrogen Oxides (NOx) and Sulphur Oxides (SOx) are also detrimental to humans and nature ecosystem. Mermaid’s vessels follow the MARPOL (International Convention for the Prevention of Pollution from Ships) guidelines and the company has Pollution Prevention Protocol in place to set boundaries and requirements for company equipment to limit emissions of certain key pollutants. Continued efforts in increasing energy efficiency and reducing fuel oil consumption have also led to a decease in NOx and SOx emissions.
Fuel oil usage and associated air pollutants
Units 2019 2020 2021 Fuel Oil Consumption M3 9,692 9,079 8,850 SOx Tonnes 1,061 994 968 NOx Tonnes 1,108 1,038 1,011
For food business, such as PHC, there is a selection and modification of energy-saving equipment in the restaurants, such as light bulbs, air conditioners, ovens and fryers to the more energy-saving models.
Energy Saving Project
In 2021, PHC pays attention to the selection of energy-saving equipment in the restaurants , for example, choosing a ceiling-mounted inverter air conditioner which is different from general air conditioners in that the inverter, when turning on, the temperature will gradually decrease to the set level. After that, the compressor will adjust the duty cycle to always maintain a constant temperature in the room to help reduce the temperature inside the branch restaurant. There are also other forms of energy saving that PHC has used in the construction and development of the restaurants, by using materials that can help reduce energy consumption, such as fiber cement / artificial wood, changing the light bulbs to LED for all new construction restaurants, for existing branches, there will be a gradual replacement at the damaged point, etc.
In addition, PHC will provide training and manuals on the use of equipment, maintenance, on-off electrical appliances for employees to practice in using the equipment to save the most energy.
At present, the government has a policy to support the Solar Rooftop project in residential and industrial groups to promote environmental conservation, which is a long-term saving on electricity costs and turn to invest more in this alternative energy source. The company operates electric boats in canals in Bangkok by starting operations at Khlong Phadung Krung Kasem to help reduce pollution, be environmentally friendly, and develop renewable energy businesses such as using solar energy for hospitals such as Samitivej Sukhumvit Hospital, Sri Rayong Hospital, Samitivej Chonburi Hospital.
Greenhouse Gas Emissions
Greenhouse Gas Emissions
Climate change is now the issue every country in the world pays attention to, as well as Thailand, which has joined the United Nations Framework Convention on Climate Change (UNFCCC) since 1994. Moreover, Thailand also ratified the Kyoto Protocol in 2002, along with the Paris Agreement, which the member countries made the pledge to control world greenhouse gas emissions. Thailand, as one of the associate members, has planned Nationally Determined Contributions (NDC) while focusing on these three fields: Energy and Transport, Waste, and Industrial Process by aiming to reduce its greenhouse gas emissions by 20-25 percent by 2030.
Since every stakeholder highly values world climate change, the increased temperature control commitment in global is formed. Although the greenhouse gas emissions during the industrial process are strictly controlled, it turns to be a new challenge for the private sector, including the Company, which is a leading company investing in a variety of businesses, as well as a shipping business. While the shipping business seems to have some effects on climate change, it is also affected by the issue in some ways as well.
Climate Change Risks to Measures to Reduce Greenhouse Gas Emissions
The Group has managed its business by focusing on being a part of reducing energy consumption, reducing the cause and amount of carbon dioxide and greenhouse gas emissions as follows:
Opportunities and Risks Impact on the Company Technology Risks arising from changes in technology that may affect organizational adaptation as well as the risks arising from consumer expectations for environmentally friendly products that require new technologies to manage. The cost of changing or improving technology as well as improving products and goods that require new technologies. Reputation Risks arising from stakeholder expectations of products, services, and business practices that may affect product reputation and value. The ambiguity of the response to climate change. Physical Risks Risks arising from the acute physical impacts from climate change such as flooding, transport restrictions, and employee difficulty in traveling, etc. Increased rate of employee absenteeism that can be caused by health problems affecting job performance.
The greenhouse gas emission data in this report covers Thoresen Shipping and Mermaid. The AIM is in the process of collecting data.
From the beginning, the Company always gives priority to the use of natural resources for maximum benefit and minimum environmental impact by using efficient, energy-saving, and green technologies. Presently, the Company has concrete policies and measures to reduce greenhouse gas emissions as well as short and long term goals and strategies; moreover, there are also innovations used during the processes. Thoresen Shipping has Marine Department, is in charge of establishing policies and managing greenhouse gas to ensure effective processes while also establishing energy management approach and looking for alternative energy source. The Company, furthermore, has policies for its invested companies to set measures for reducing greenhouse gas emissions and effective energy management in order to strictly comply with each industry’s regulations and to successfully solve the greenhouse gas emission issue along with society.
Greenhouse Emission Mitigation of Thoresen Shipping
- Thoresen Shipping reduces the emissions of greenhouse gas by strictly follows the MARPOL Annex VI which is the regulations for the prevention of air pollution from ships adopted by the International Maritime Organization (IMO) in order to lower the impact on the ecosystem and environment, as well as climate change in every area within shipping service.
- Thoresen Shipping uses IMO Data Collection System (DCS) to record every ship’s carbon dioxide emissions in order to help with the eco sailing project which can reduce the emissions of carbon dioxide.
- Thoresen Shipping stands strictly in accordance with the IMO regulation by switching to low-sulfur fuel oil (LSFO) to reduce the sulfur content of the fuels that ships use (Sulfur Cap 2020).
- Thoresen Shipping received a certificate of the prevention of carbon dioxide emission from the company ship by following the regulation of EU MRV (Monitoring, Reporting, and Verification) which includes monitoring, reporting, and verifying each ship’s carbon dioxide emissions.
- Controlled the emissions of sulfur dioxide or any greenhouse gas to be lower than 3.5 percent as the recent regulation
- Able to reduce sulfur dioxide to be lower than 0.5 percent as stated in the recent IMO regulation which is going to apply since 1st January 2020 onwards.
Goals in 2022
Continue to comply with IMO rules and regulations.
Greenhouse Emission Mitigation of Mermaid
Mermaid aims to continually reduce greenhouse gas emissions as planned while also improves energy efficiency and strictly follows up to dated ISO standard and other requirements. Mermaid has been reporting on emissions since 2016. In response to Thailand’s updated nationally determined contributions (NDCs) to the United National Framework Convention on Climate Change, Mermaid plans to continue to achieve improvements in emissions reduction. In comparison to 2020, Mermaid’s scope 1 emissions decreased substantially by 17 percent y/y, thanks primarily to reduced fuel oil consumption. However, due to rising purchased electricity, Mermaid’s scope 2 emissions rose 23 percent y/y in FY2021. Mermaid’s scope 1 and scope 2 emissions decreased by 16 percent from the previous year.
- Short term: Mermaid will be able to reduce its greenhouse gas emissions (Scope 1, 2) by 5 percent compared to the previous year.
- Long term: Mermaid will be able to reduce its greenhouse gas emissions (Scope 1, 2) every year.
Combined direct and indirect operational greenhouse gas emissions of Mermaid
Units 2019 2020 2021 Purchased electricity kWh 1,343,241 1,061,667 1,473,503 Total distance travelled Km 138,177 96,907 130,980 Scope 1 tCO2e 30,265 28,351 23,607 Scope 2 (location based) tCO2e 733 588 723 Scope 3 (employee travel-company car) tCO2e 24 17 22 Scope 3 (employee travel - third party car) tCO2e - - 9
Direct (Scope 1) GHG Emissions
Direct emissions are GHG emissions from an organization's direct operations. Direct (or scope 1) emissions are derived from consumption of fuels such as natural gas, petrol and diesel. Mermaid’s scope 1 emissions during FY2021 were 23,607 tCO2e, and the intensities of GHG emissions normalized by revenue and total employees were 249.9 tCO2e/mUSD and 153.3 tCO2e/employee, respectively.
Indirect (Scope 2) GHG Emissions
The second component of Mermaid’s GHG emissions relates to indirect (or scope 2) emissions from the consumption of purchased electricity. Mermaid’s scope 2 emissions (location-based) during FY2021 were 723 tCO2e. 100% of the electricity was purchased from the grid. The intensities of GHG emissions normalized by revenue and total employees were 7.7 tCO2e/mUSD and 4.7 tCO2e/employee, respectively.
Indirect (Scope 3) GHG Emissions
The third component of Mermaid’s GHG emissions comes from its employee traveling (scope 3). Mermaid’s scope 3 emissions as a result of employee traveling covering warehouses were 22 tCO2e during FY2021. The intensities normalized by total employees were 0.15 tCO2e. Additionally, Mermaid also had 8 tCO2e of scope 3 emissions contributed by travel from third-party vehicles.
1. Carbon dioxide emission plans of Thoresen Shipping
Carbon dioxide is one of the greenhouse gases causing global warming. According to IMO study in 2014, it is stated that the shipping business caused around 2.2 percent of the world greenhouse effect. Being aware of the effect, TTA has established measures to help reduce the greenhouse effect and initiated various projects as follows.
1. Raising awareness of the fleet in reducing gas emission and monitoring the emission of each ship
2. Formulating strategies and actions to reduce gas emissions for the fleet:
- Use fuel with lower sulfur dioxide and try mixing special fluids with fuel to help complete combustion and reduce fuel wastage
- Use an alpha lubricant control system to reduce waste of fuel in the cylinder
- Maintain the equipment to be in proper condition to be able to operate at full capacity
- Study the feasibility of applying the Green Passport Certification to vessels
With its commitment and continuous effort in mitigating greenhouse gas emissions, Thoresen Shipping was granted a certificate of the prevention of carbon dioxide emission from the company vessel by following the regulation of EU MRV (Monitoring, Reporting, and Verification) which includes monitoring, reporting, and verifying each ship’s carbon dioxide emissions. By following the regulations perfectly, not only is it benefit the environment, Thoresen Shipping service is trusted by most important customers around the world, especially, when shipping to a strict area such as ECA (Emission Control Area) in Europe and North America. Moreover, the company also achieved the certificate of data collection on fuel consumption during Europe shipping from EUMRV and IMODCS which certified that the company’s ships are verified and report the CO2 emissions according to the global requirements.
In this day and age, human exploitation of natural resources has caused climate change and environmental problems. Deforestation increases surface temperature, while droughts and water scarcity are becoming more frequent. Therefore, it is critical to recognize the cruciality of water conservation, resource finding, and optimum use of water. A complete water management system can reduce not only the costs of untreated water used in production but also the amount of wastewater and the expenses of wastewater management. The Company places importance on environment conservation, imposing an environmental policy, which is available on the Company’s website at www.thoresen.com In the same way, the environmental policy has also been set out by its affiliates.
Thoresen Shipping and Mermaid
For shipping and offshore services businesses, the wastewater is treated before being discharged into the ocean. For Thoresen Shipping, regulations on ship’s ballast water treatment (BWT) are formulated and an innovative tool to destroy invasive and alien species in ballast water before releasing into the ocean is installed. There are 24 vessels that completed retrofitted with BWT plant within 2020 already.
The company is both a manufacturer and a service provider especially Maritime transport and subsea services. The company directly affect on water resources by wastewater discharges. Thoresen Shipping and Mermaid have established Technical Department to monitor water and wastewater management. Furthermore, to comply with the International Maritime Organization’s Regulations, Thoresen Shipping also has measures for reducing contaminated water from oil spills by installing oily water separator to filter out oil generated from operations from the wastewater before discharging into the sea. The separators have been installed on every ship and used before discharging wastewater into the sea. The wastewater quality testing is also carried out before all wastewater discharges to save environment and the ocean from being contaminated. Previous test results show that the amount of oil content in the wastewater discharged into the ocean is less than 15 ppm. Owing to its continuous effort to improve water and wastewater management and strict adherence to the regulations, Thoresen Shipping has earned the International Oil Pollution Prevention Certificate (IOPP Certificate). In addition to this, Mermaid Maritime and Thoresen Shipping have installed a wastewater management system (separator), which was certified and inspected by surveyors.
Mermaid’s water consumption comprises usage in vessel operations and warehouse operations. On vessel operations, total water consumption reached 16,043 m3 in 2021, with 24,262 m3 water withdrawal and 8,219 m3 water discharge. The water discharge purely came from vessel Enduerer. Mermaid does not operate in regions where fresh water is scarce. The biggest source of water came from water produced on board, accounting for 49 percent of total water withdrawal. Vessel Asiana withdrew water from seawater directly.
Mermaid’s water consumption for warehouse operations reached 3,578 m3 in 2021, 24 percent y/y higher than FY2021, which could be in part due to a recovery of business activities. The bulk of water consumption took place in Thailand, and Qatar and Saudi Arabia shared the rest (36 percent). Mermaid manages its water footprint by ensuring the efficient usage of water and the management of produced wastewater.
PHC, STC and PMTA
For food businesses such as PHC or STC, grease traps were installed to intercept grease before releasing the water into the mall’s pipeline. Furthermore, water quality tests are conducted randomly by an external public health organization. For agrochemical business, PMTA has recruited certified contractors to manage its waste. Consequently, the wastewater management system was installed, inspected, followed-up and reported to the governmental authority.
For the water resource management business, AIM is a fully integrated water and utility management company. The company’s main activity is the service of non-revenue water reduction in the water supply system for the Provincial Waterworks Authority and the Metropolitan Waterworks Authority. In addition, the company has expanded its business in 2021 in the area of wastewater treatment of industrial plants, rivers and canals as well as to support and drive important projects such as electricity in Khlong Phadung Krung Kasem or solar power systems of BDMS hospitals, etc. The business that AIM operates in is not only creating positive economic value, but also encompassing the reduction of negative social and environmental impacts, through new technology innovations in parallel with the Company’s business operations. AIM has a goal and determination to conduct business for continuous and sustainable growth and give back to society and the environment throughout the Company’s business operations such as environmental management through 2 perspectives, namely, water and wastewater management and energy management, details are as follows:
- Innovative biological media for industrial wastewater treatment with the Industrial Estate Authority of Thailand.
- Water supply systems that use less space and energy and the service of non-revenue water reduction management with the Metropolitan Waterworks Authority and the Provincial Waterworks Authority by using high technology to increase the efficiency of tap water production and mobile drinkable water production.
- Increase the potential of treating rotten water in the canals to be clean, reducing the accumulation of germs.
- Develop renewable energy business such as using solar energy for hospitals such as Samitivej Sukhumvit Hospital, Sri Rayong Hospital, Samitivej Chonburi Hospital.
In 2021, the Company was able to reduce water loss from broken pipes and leaking pipes in the areas responsible for 4 provinces, namely, Khon Kaen, Ubon Ratchathani, Surat Thani and Phuket, totaling 29,346,706 cubic meters, amounting to Baht 146,733,530 (calculated for water costs at 5 Baht per cubic meter).
In 2021, the Company was able to reduce electricity usage by generating electricity from solar energy totaling 426.4 megawatts per hour, amounting to Baht 1,789,798.38 (calculated for electricity costs at 4 Baht per kilowatt).
Waste and Product Life Cycles Management
Waste and Product Life Cycles Management
Nowadays, the demand for products and services has increased as a result of the rapid growth of the world population. This has led to higher consumption and the problems regarding the management of waste and product life cycles, which is one of the main concerns in many countries around the world. It has been predicted that, in the year 2050 or thirty years in the future, the global waste will increase by 3.40 million tons – around two to three times of the present waste – with East Asia and Pacific Regions as the biggest source of the waste. Therefore, good and effective waste management should be done to reduce the impact on the environment. For example, in the Company’s shipping business, the determination to decrease greenhouse gas emissions and the amount of waste dumped into the oceans has been set to help save the marine environment and build Company's image and reputation at the same time. Moreover, good waste management can also help promote the company’s credibility, attracting more customers as various stakeholders nowadays have more awareness of the environmental problems and waste management.
The Company has been fully aware of waste and product life cycles management and focused on more effective usage of resources by running the business in accordance with the environmental policy, managing waste properly, making full use of resources throughout the value chain, and continuously reducing the amount of waste production to the least. The Company has introduced the environmental policy, including waste management (for more information, please visit www.thoresen.com and encourage all of the Company’s employees to apply 4Rs in waste management at workplace. 4Rs consists of:
Furthermore, the Company has developed the waste management system for handling, following up, and preventing the impacts of the production process on the community, the society, and the environment, starting from sorting, keeping, moving, to destroying waste. The quantity of waste production and the quantity of waster destruction are recorded and reviewed regularly, in order to find ways to make full use of limited resources and to reduce costs for waste management. Some sorted waste, such as cartons, used paper, used oil, etc. are sold or reused for more value.
Thoresen Shipping and Mermaid
For Thoresen Shipping and Mermaid, the system for managing waste and reducing waste has been implemented. All employees have been trained in on-board waste management, which partly fulfills the requirements of the International Convention for the Prevention of Pollution from Ships (MARPOL) and helps raise awareness among the employees.
Thoresen Shipping’s Plastic Reduction and Plastic Formation Campaign
In 2021, Thoresen Shipping has a campaign to reduce the use of plastic and reduce the formation of plastic by creating a poster to promote awareness among seafarers and office workers about the impact of waste on the environment and how to help save the planet such as the use of cloth bags, waste separation, systematic waste management. Thoresen Shipping has received a certificate from the Shore Facility, certifying that the Company has managed waste in a systematic and environmentally friendly manner.
Mermaid is conscious of the need to preserve the marine environment and has identified the main source of waste generation as from office (general waste) and the marine operation sites (chemicals). Mermaid produces both hazardous and non-hazardous waste. It adheres to ISO 14001 requirements and guidelines for vessel-specific garbage management plans. The total waste in FY2021 rose to 570 metric tonnes, with waste oil, plastic and soda lime being the top 3 biggest sources. Compared to FY2021, Mermaid effectively reduced waste volume in sludge. The bulk of the non-hazardous waste generated on vessels was disposed of ashore by port reception facilities while the hazardous waste mostly went to landfill. In addition to vessel waste, 288 metric tonnes of office waste were generated in FY2021. These are composed of a mix of waste such as food, paper, plastics etc.
The amount of waste is categorized by different types
The amount of waste directed to disposal by disposal operations
For agrochemical business, PMTA has hired the certified contractors to manage both hazardous waste and non-hazardous waste, complying with the Vietnam law. PMTA has also implemented the system for wastewater treatment and the control of air pollutant emissions, with the processing costs of US$ 10,000 -15,000 per month. The performance is regularly reviewed, followed up, and reported to the government.
Since the year 2019, PMTA launched a project to reduce fuel costs and decrease the amount of sulfur dioxide emissions that negatively affect the environment by reclaiming and reusing tires as fuel.
The Company is in the process of studying Disclosure, Topic, Waste Management and Product Cycle.