SUSTAINABILITYREPORT
2020

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OCEAN NETWORK EXPRESS (ONE)SUSTAINABILITY REPORT 2020

3

About This
Report6

3

About This Report

Table ofContents

4

Message from our CEO

6

Our COVID-19 Response

8

Our COVID-19
Response

2019 Key Highlights

10

10

28

About
ONE

About ONE• Company Profile• Value Chain of our Business• Scale of Operations• Our Core Values• Memberships, Associations,Certificates and Awards

Operational
Excellence

16

Approach to Sustainability• Sustainability at ONE• Materiality Assessment• Stakeholder Engagement• Our Commitment to the United
Nations Global Compact (UNGC)
and Sustainable Development
Goals (SDGs)• Managing Sulphur Oxides (SOx)
Emissions• Marine Pollution and Conservation• Recycling and Disposal of Materials

24

28• Our Environmental Policy andManagement System• Climate Change (including GHG andother emissions)• Innovation and Digitalization• Customer Experience• Operational Efficiency• Cargo and Container Safety

Environment

24

Environment

Operational Excellence32

38• Taking Care of Our Employees• Human Rights and Labour Practices• Talent Management• Employee Health, Safety and
Well-being• Supporting Local Communities• Ethical Business Conduct• Corporate Governance• Compliance• Risk Management

SocialGovernance43

GRI Content Index

49

United Nations Global Compact COP

This is Ocean Network
Express’s (ONE) third annual
sustainability report andcommunicates our progress
towards implementing oursustainability commitments. It
is the second year we follow
the disclosures set out by the
Global Reporting Initiative(GRI) Standards, as the basisof our annual reporting. The
report has been preparedwith reference to the GRI
Standards. For a full list of
disclosures referenced in thisreport, please refer to the GRI
Content Index on page 43.

SCOPE AND BOUNDARYThis report contains information pertaining to the period
1st January 2019 to 31st December 2019, covering our liner
network services, provided through 211 local offices in
106 countries, five Regional Headquarters (RHQs) and our
Global Headquarters (GHQ). The performance data includedin this report does not cover our inland services nor terminal
operations.
EXTERNAL ASSURANCE
This year, we have sought to provide a deeper understanding
into our sustainability context and performance, referencing
additional GRI disclosures as we work towards reporting inaccordance with the GRI Standards: Core option. We havenot sought independent external assurance of the information
contained in this report at this time but will explore theopportunity to do so in the coming years.
CONTACTWe value your opinion to help us improve and progress in our
approach to sustainability and sustainability communication.
We welcome your comments and feedback which may bedirected to: sustainability@one-line.com

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OCEAN NETWORK EXPRESS (ONE)SUSTAINABILITY REPORT 2020

5

Message from
our CEO
2019 was our second year of operations
since we launched officially in April 2018
and we focused our efforts on integrating
sustainability within our wider businessstrategy and objectives.
Dear stakeholders,
I am pleased to present Ocean
Network Express’s (ONE) third
sustainability report. It reflects
our continued commitment to
responsible and sustainablebusiness amidst these
unprecedented times, as oneof the major container shipping
companies in the world.

2019 was our second year ofoperations since we launchedofficially in April 2018 and
we focused our efforts on
integrating sustainability
within our wider businessstrategy and objectives.
The development of oursustainability strategy was
key to this progression in
our sustainability journey. We
defined what sustainability
means to us through a set offour clear priorities:
1. Environment;
2. Society;3. Governance; and4. Operational Excellence.
This will guide us in embedding
responsible and sustainable
practices throughout thebusiness and help us work
towards our vision to besustainable and resilient,and a trusted partner for ourcustomers in delivering global
shipping solutions.
We also reviewed theassessment of our mostmaterial sustainability topics,

taking into account the viewsof our valued customers. Witha constantly evolving externallandscape, we recognize theneed to regularly review bothcurrent and emerging issues
for any shift in importance andimpact on the business, society
and environment. Building
on previous assessments,
we identified eight material
topics that form the focus our
strategy and reporting, and an
additional seven topics thatare still of importance to ourbusiness and stakeholders
to warrant disclosure as
appropriate. We discuss these
topics in detail in subsequent
chapters of our report.
Ensuring high levels ofservice quality and customer
satisfaction is key to our
success in this competitive
industry. In 2019, we set up a
Digital Strategy Committee todrive the ONE Digitalization
roadmap and initiatives,
aimed at achieving new levelsof operational and service
excellence and efficiency thatcan deliver greater value to ourcustomers through innovation.

We also launched several
initiatives to enhance customer
experience, such as ourLive Chat function as well
as a global customer
satisfaction survey.
We continue to push ahead
with several initiatives toaddress climate change, which
remains a key challenge forthe shipping industry. These
include measures to improveenergy efficiency, such as
retrofitting our propellers toboost propulsion efficiency,
and to reduce CO2 emissions,such as slow steaming androute optimization. This has
allowed us to reduce our GHG
emission intensity and to stayon track with our ambitious
target of 50% reduction of CO2
emissions (in gram/teu-km) by
2050 from a 2018 baseline.
As of end 2019, ONE is fullycompliant with the MARPOL
2020 global sulphur limit set
by the International Maritime
Organization (IMO), thanks tothe active preparation andresponses by ourcross-functional taskforce set

up to respond to this regulation.
We are committed to prevent
pollution that may result
from our ship operations andcontinue to enforce the ONE
Vessel Quality Standard on all
our chartered vessels to ensure
they meet safety requirementsfor preventing accidents.
Another priority for us islooking after the wellbeingof our employees and thecommunities in which we
operate. We not only seek
to provide a safe work
environment but a respectful
and conducive place where
diversity is embraced, andemployees can grow. We
continue to support local
communities through our
corporate social responsibility
activities, with a focus onenvironmental, children andeducation, as well as disaster
relief through the provision offree vessel transportation.
This year, the world wasupended by the COVID-19
pandemic, which took a heavy
toll on global supply chains
and trade. The vital role thatthe shipping sector playsin the global economy was
accentuated, as it kept up the
supply of essential goods towhere they are most needed.
We will undoubtedly play a rolein the post-pandemic recovery
to keep trade moving between
nations. It is more important
than ever that we operate ina responsible and sustainable
manner, to increase resiliencein a post-COVID-19 world.
Looking ahead, we will staystrongly committed to thecourse, steered by our Core
Values, while continuing tostrengthen our position on
key sustainability issues andcommunicating our progress
openly and transparently.
I hope this report provides
you with useful andrelevant information on oursustainability commitments andactivities. We look forward tocontinuing this journey withyour support and to grow our
future involvement together.
Sincerely,

Jeremy Nixon

Chief Executive Officer

CO2 emissions
reduction
target50%
by 2050

6

OCEAN NETWORK EXPRESS (ONE)Our COVID-19
Response

SUSTAINABILITY REPORT 2020

Supporting our local communities

We continue to support our local communities in the fight against COVID-19, through different ways.

The COVID-19 pandemic has caused massive
disruption to business-as-usual and to people’s
lives and livelihoods. As ONE, we managed toadapt relatively seamlessly through our BusinessContinuity Plan and new ways of working.
Keeping thebusiness running

We have set up our BusinessContinuity Management
System (“BCMS”) since day
one, and it has enabled thecontinuity of our core business
functions during this period.
Our Crisis Management
Committee has also been
activated to implement
measures to minimize impact
to the Company, including
sharing information about
operational disruption suchas yard congestion, ship
inspection, port control, inland
traffic situation among relevant
parties across the regions.
With many of our businessprocesses digitalized
and standardized acrossregions, such as booking,documentation, customer
service, stowage planning,etc., we were able to transitionsmoothly to working fromhome (WFH) for the majorityof employees.

Ensuring our people
stay safe and connected
But WFH has its downsides
too and we are aware that
employees may experience
heightened feelings ofworkplace loneliness or stressfrom juggling both work andfamily priorities. One of theways we have tried to address
this is to adopt a combinationof remote and on-site working
globally. For example, inSingapore, we ensure “safedistancing” in the office andimplemented split teams andstaggered working hours, toallow employees the optionof working at the office ifthey choose to. Employees
who work from the office
are required to follow safetymeasures including mandatory
mask wearing, temperature
self-screening twice daily anddisinfection of common areas
after use.

7

We implemented virtual
gatherings for ONE colleagues
to stay connected to one
another at GHQ, RHQ and local
levels. In GHQ, we called it the
STAY CONECTed programme
and we shared WFHexperiences during COVID-19
and brainstormed ideas towork efficiently together.
In our Global Headquarters(GHQ), employees also
received specially preparedcare packs consisting
reusable masks, hand sanitizer
and snacks, as a token of
appreciation from the company
for their hard work to keep thebusiness operations running.

ONE donated 11 containers to
the Red Cross in Italy, one of thehardest-hit countries, for storage
and transportation of medical
equipment and medication.

In Singapore, we donated to The
Mission to Seafarers to support
them in caring for the welfareof those at sea during thischallenging time.

Our ONE Uruguay colleagues
also donated essential food andhygiene products to a local NGO
who cares for children at risk.

Our employees at ONE Brazil
banded together to raise funds
for buying basic food baskets forslum residents in Sao Paulo.

ONE France supported Le Chat
Bleu Restaurant in Le Havre tooffer free lunches to healthcare
workers in local hospitals.

ONE donated 1,000 single-use
masks to a children’s home inGdańsk, Poland.

We are committed to play our part not only as a business but as a member of society, and we will continue to support
efforts to combat the spread of COVID-19 while delivering essential container shipping service around the world.

We can overcome this crisis together. As ONE, we can!

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OCEAN NETWORK EXPRESS (ONE)SUSTAINABILITY REPORT 2020

92019 KeyHighlights
Protecting the Environment

3%

reduction in GHG emissions
intensity from 2018100%

compliant with MARPOL 2020

Global Sulphur Limit

Taking Care of Our PeopleZerosignificant
spills reported by our vessels

14.9

average training hours
per employee globally

work-related
fatalities recorded

Supporting Local Community

Driving Operational Excellence
Launched our Digitalization Roadmap with formation of the Digital Strategy Committee (DSC)
Implementation of several digitalization initiatives for customer service enhancement
Live Chat function across
10 countries to handle
e-commerce enquiries

Zero

Customer RelationshipManagement system

ONE’s container vessels “NYK SWAN” and “MOL TRIBUTE” achieved highest productivity records at
PSA Singapore, our Terminal Partnership Program partner

1,360
employees
volunteered

41

community
engagement activities

22,830volunteering hours

Achieved

EcoVadisGold
Medal
for CSR rating

10

OCEAN NETWORK EXPRESS (ONE)

About
ONE

Ocean Network Express(ONE) is a container shipping
company which offers anextensive liner network service
portfolio covering more than
120 countries internationally.
ONE was established throughthe formal integration of thecontainer shipping servicesof three Japanese shipping
companies Kawasaki Kisen
Kaisha, Ltd. (K Line), Mitsui
O.S.K. Lines (MOL) and Nippon
Yusen Kaisha (NYK) and began
operations on 1 April 2018. NYK

11

Our Regional and Global Headquarters

RHQ
LondonOcean Network Express(ONE) is a container
shipping company which
offers an extensive liner
network service portfolio
covering more than 120
countries internationally.

Company Profile

SUSTAINABILITY REPORT 2020

GHQ/RHQ
Singapore

RHQ
Sao Pauloowns a 38% holding in ONE
while MOL and K Line own 31%
each. As a new player in the
shipping industry, we will ensure
the legacy of our three founding
companies, who historicallyprided themselves in processexcellence to deliver customers
superior service quality, lives on.

Value Chain of ourBusiness

RHQ
Richmond

RHQ
Hong Kong

Our shipping services
include capability to transport
container types such as Dry
containers for general cargo,

All vessels are chartered
vessels, the majority from ourparent companies, which meansthat we do not own any of thevessels. As a ship operator, ONE
is responsible for the logistics,
including time and routescheduling, providing accessto service maps, and ability to
track cargo. We work closelywith the vessel owners who areresponsible for the maintenanceof vessels and for the crew onboard. Our Marine Safety andQuality (MSQ) Department works

Reefer containers capable ofmaintaining the temperature offrozen or chilled cargo, Flat Rack
containers for heavy lift, overheight and/ or over-width cargo
and Open Top cargo for overheight and/or lengthy cargo.
We ship a wide range of goods,
with major categories including
consumer products, machinery,auto-parts, electrical goods,
industrial and construction
goods, chemicals, food products,
wood products, agricultural
goods, metal products, andpharmaceutical products.

US$

11.7Billion
in salesclosely with the ship owners toensure safe operations.

Scale of Operations

ONE operates a service
network covering more than
120 countries. Supported bya workforce of approximately
8,000 employees, including
offshore, we have established
211 local offices in 106 countries
and five regional headquarters(RHQ) in Hong Kong, Singapore,
United Kingdom, United Statesof American (USA) and Brazil.

7,680
employees

As of end 2019, our fleet size
stood at 1,593,793 Twentyfoot Equivalent Unit (TEU),
making us the 6th largest in
the world. Operations are
performed through a fleet of
224 vessels with a service
network covering over 130
services loops around theworld. Our fleet includes 30
super-large ships, definedas container-ships with
20,000 TEU and 14,000 TEU
capacity, one of the largest
in the world.

Fleet of224
vessels

ONE’s Value Chain
Research &Development

Procurement

Production

Sales

Utilise resources
to determine
market demandand supply, vessel
specifications andmarket growth

Obtaining vessels,containers, fuelsterminal, inland
supply chain and
IT infrastructureManaging ocean
services andinland services,
e-commerce
platforms andsales agencies

E-commerce
platform
management,
publicity andoutreach, space
confirmation andbooking

Shipping

Services

Vesselsand Cargo
operation

Documentation,
vessel andcargo tracking.
E-commerce
functions, freights
settlements andsales support

1,593,793
TEU capacity

257

vessel port calls

Serving more than

14,00063
customers in
different
countries

service
network
covering
more than120
countries

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OCEAN NETWORK EXPRESS (ONE)SUSTAINABILITY REPORT 2020

13

Our Core Values

ONE has eight Core Values, underpinning our vision, which guide the work that we do. These values
are embedded in our Business Credo, Code of Conduct and other policies.

LEAN & AGILE

BEST PRACTICEQUALITY

Breaking through conventions
to make ideas into reality
quickly

Continuing to improve ourselves
based on the knowledge
cultivated internally and externallyto deliver the best services

Pursuing the best qualitythat always exceeds
customer expectations

INNOVATIONTEAMWORKCHALLENGE

Delivering services that
contribute to the customer’sbusiness through self innovationand creativity

Respect individual diversity
to build a team that can work
together to create new value

Exploiting individual strengths
and continuing to meetchallenge without fear of failure

ONE recognizes our rolein providing safe andreliable services while
meeting our customers’
expectations andmaintaining their trust.
At the helm of our brand,
ONE’s Business Credoenshrines eight principles
reflecting how we want to
do business.

ONE’s Business Credo
1. GOOD FAITH BUSINESS ACTIVITIESWe respect national competition laws, engage in business practices thatare fair, transparent, freely competitive, and appropriate, and do not tolerate
bribery or corruption in any form.
2. ENVIRONMENTAL AND SAFETY INITIATIVES
We undertake initiatives to enhance safety and to preserve the marine
environment and natural ecosystems, and seek to develop and refine safe,
environment-friendly transportation technologies.
3. ENHANCED SECURITY
We have established strong security measures to prevent the disruption andabuse of international logistics networks, prohibiting any type of illegal activity
and the unauthorized access and leakage of information.

RELIABILITYCUSTOMERSATISFACTION

Delivering stable,
sustainable andprofessional services

Focus on customer needs welland deliver satisfaction thatexceeds expectations

4. COMPLIANCE WITH LAWS AND ORDINANCES, RESPECT FOR
HUMAN RIGHTS
We recognize our role in society and act in a manner that is fair and justby complying with national laws and ordinances and international norms.
Corporate activities should adhere to social mores, respect human rights,
honour local customs and practices, and address the concerns and interestsof stakeholders.
5. EXCLUSION OF ANTISOCIAL ACTIVITIESWe resolutely stand against all antisocial forces and organizations thatthreaten the order and safety of civic life.
6. DISCLOSURE OF INFORMATION AND COMMUNICATION WITH SOCIETY
We disclose corporate information in a proactive and fair manner, rigorously
protect and manage the privacy and personal information of our customers,
employees and everyone involved in our business activities.
7. SOCIAL CONTRIBUTION ACTIVITIESWe proactively contribute to social activities as a good corporate citizen.
8. PRESERVATION OF FAVOURABLE WORK ENVIRONMENTS
We respect the diversity, individuality, and humanity of employees andfacilitate the activities of a diverse workforce. We make every effort topreserve favourable work environments.

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OCEAN NETWORK EXPRESS (ONE)SUSTAINABILITY REPORT 202015

Memberships, Associations, Certificates and Awards
At ONE, we recognize that collaboration and working in partnership with other industry players is important inachieving our sustainable and responsible business ambitions. We are proud to take part in initiatives led by thefollowing organizations whom we believe share our objectives and values of a sustainable shipping industry.

CLEAN CARGO:
A business-to businessleadership initiative that involves
major brands, cargo carriers,and freight forwarders dedicatedto reducing the environmental
impacts of global goods
transportation and promoting
responsible shipping.

DIGITAL CONTAINER SHIPPINGASSOCIATION (DCSA):
A non-profit organization
established to further
digitalization of container
shipping through technology
standards. ONE, A.P.Moller–
Maersk, Hapag-Lloyd and MSC
are founding members.

ECOVADIS:
A trusted provider of businesssustainability ratings, intelligenceand collaborative performance
improvement tools for global supply
chains. ECOVADIS awarded ONE
with a Gold medal for CSR ratingin November 2019, measuring
the quality of a company’s CSR
management system – through its
policies, actions, and results.

GLOBAL COMPACT NETWORKSINGAPORE (GCNS):
The local chapter of the United
Nations Global Compact(UNGC). As a member, ONE
endorses the ten UNGC
Principles in the areas of
Human Rights; Labour;
Environment; andAnti-corruption.

GLOBAL MARITIME FORUM:
An international non-profit
organization committed topromoting the shipping industry.
ONE is a signatory to the
Global Maritime Forum’s Call for
Action on the decarbonizationof shipping in line with
the International Maritime
Organization’s (IMO) strategy.

ISO14001 (ENVIRONMENTMANAGEMENT SYSTEM):
An international EMS standard
set by the International
Organization for Standardization(ISO). We have received ourISO14001:2015 certificate in 2018from ClassNK.

LLOYD’S LIST ASIA
PACIFIC AWARDS:
This award recognizes
containerships owners or
operators that have best
responded to the changing
commercial and regulatory
landscape through new ocean
shipping configurations andport pairings, simplified booking
and documentation processes,
action to reduce ship pollution
and other innovations that havemade the supply chain more
efficient. ONE emerged aswinner of the prestigious Lloyd’s
List “Excellence in Container
Shipping” Asia Pacific award.

SINGAPORE SHIPPINGASSOCIATION (SSA):
Singapore’s national tradeassociation to serve andpromote the interests of its
members and to enhance thecompetitiveness of Singapore
as an International Maritime
Centre. As a member, ONE
actively participates in forums,
feedback and dialogue
sessions with key regulatory
agencies and international
maritime organizations.

TREASURY MANAGEMENT INTERNATIONAL (TMI)
AWARDS FOR INNOVATION AND EXCELLENCE:
This Award recognizes best practices andinnovations in treasury management. ONE wasawarded “Best Digital Project” for its transformationof three individual treasury departments into a single
efficient structure in just 9 months, as well as ONE’s
determination to employ the latest technologies.

WORLD SHIPPING COUNCIL:
A trade group representing theinternational shipping industry. Asa member, ONE collaborates withother companies and governments todevelop actionable solutions for global
transportation issues and promote
environmental stewardship.

16

OCEAN NETWORK EXPRESS (ONE)Approach to
Sustainability

SUSTAINABILITY REPORT 2020

17

Our Sustainability Strategy

To be sustainable and resilient, and a trusted partner for ourcustomers in delivering global shipping solutions.

As the sixth largest
container carrier in theworld by fleet size, we areproud of our unique role inconnecting people with newexperiences, cultures andideas from around the world.

Sustainability at ONE

Shipping is the moving force
behind the global economy,
making intercontinental trade,the bulk transport of raw
materials, and the import/
export of affordable food andmanufactured goods possible.
The international shipping
industry is responsible for the
carriage of around 90% ofworld trade.1
ONE recognizes thatsustainable transport is oneof the major challenges of
our times. While shipping is
considered relatively safe andclean, compared with otherforms of commercial transport,
the industry still has significant
impacts on the environmentand society that need to be
managed. As cargo continues
to grow, so does the industry’s
impacts and responsibilities.

1

As the sixth largest container
carrier in the world by fleet
size, we are proud of our role
as a globally essential service
in connecting people withnew experiences, culturesand ideas from around theworld through our network.
This is why we have made it
our vision to be sustainable
and resilient, and a trusted
partner for our customers indelivering shipping solutions.
We have focused our efforts
in integrating sustainability
within our wider businessstrategy and objectives.
As part of this process, wedefined what sustainability
means to us throughfour areas of priority:
1. Environment;
2. Social;
3. Governance; and4. Operational Excellence

https://unctad.org/en/PublicationsLibrary/rmt2019_en.pdf

OUR SUSTAINABILITYPRIORITIES

These priorities are basedon the material sustainability
topics that drive long-termvalue for our business and our
stakeholders. Underpinningour priorities, is our Business
Credo, which forms thecore of ONE’s commitment
to embedding responsible
business practices.

Four areas of priority
1

Environment2Social3

Governance4

Operational
Excellence

Environment

SocialWe protect theenvironment andecosystems we alldepend on by taking
action on climate change,
preventing marine
pollution and using
resources responsibly.

We nurture and empower
people in our businessand the communities we
operate in, by managing
our talent, protecting
their health and safety,
respecting their humanrights and supporting
local communities.

Governance

We uphold the highest
standards of ethicalbusiness conduct andcorporate governance,in compliance withregulation and our own
internal policies.

Operational
Excellence

We drive operational
excellence throughdigitalization, to enhancecustomer experience andensure safe operations.

Sustainability GovernanceOur commitment to sustainability stems from the top. The Board of Directors (theBoard) at Global Headquarters (GHQ), which includes our Managing Director
and CEO, drives the company’s sustainability and growth strategy. The Board
is supported by the Business Planning Team who initiates and coordinates
sustainability initiatives across the company at GHQ, Regional Headquarters (RHQs)
and local offices.

18

OCEAN NETWORK EXPRESS (ONE)Materiality Assessment
In 2020, we worked withspecialist sustainability
consulting firm Corporate
Citizenship to conduct anassessment of our mostmaterial sustainability topics.
This exercise built on fromour previous assessments.

This year, we have prioritizedengagement with three
key stakeholder groups:
Employees, shareholders
and customers. Since
customers had not been
consulted on materiality inprevious years, we wanted
to ensure their views werereflected in our results. We
followed a four-stage process
which included:
1. Context and Topic
Identification;
2. Surveys;
3. Interviews; and4. Analysis and Validation

Our Material
Sustainability Topics

1

2

3

4

Context
and Topic
Identification

SurveysInterviews

Analysis andValidation

To ensure we remain on theright path, it is key to keep
an eye on the horizon andunderstand which issues are
current and which ones are
arising. Going forward, weare committed to conducting
a light-touch review of ourmaterial topics every year,with more comprehensive
assessments undertaken
every few years.

Launched an online
survey for internal andexternal stakeholders
to prioritize the shortlistof sustainability topics
identified in theprevious stage.

Conducted a series
of interviews withcustomers andshareholders to gather
further insights into thesustainability context of
ONE and the industry.

As 2020 has seen
unprecedented changes
globally as a result of the
COVID-19 pandemic, we will
be reviewing our priorities forthe next reporting cycle, todetermine whether any newmaterial topics have emerged,
as well whether we haveseen a shift in the importanceand impact of the topics
currently identified.

19

Direct Impact:

Topics ONE can directly
influence and manage

Indirect Impact:

Topics ONE can indirectly
influence and manage,
working with partners
including vessel owners
and other stakeholders
along the value chain

Material Topics: Sustainability topics that are of high importance to the business and medium to high importanceto stakeholders. These form the focus of ONE’s strategy and reporting.

Four-stage process

Conducted deskbased research and abenchmarking exercise to
identify relevant industry
trends and sustainabliliyissues, developing ashortlist of sustainablity
topics to be prioritized.

SUSTAINABILITY REPORT 2020

Analyzed andpresented the findings
and results to the senior
management team at
ONE, before finalizing
the list of material
sustainability topics.

COVID-19 pandemic

CustomerExperience

Ensuring high-levels of service
quality and reliability to maintaincustomer satisfaction and loyalty.

MarinePollution andConservation

Preventing ocean pollution andprotecting marine life throughthe responsible management ofballast water and the preventionof spills/leakages.

Container and
Cargo Safety

Ensuring the safe operationof ships and the safe handlingof containers.

Employee
Health, Safety
and Wellbeing

Protecting the health, safety andwellbeing for our employees
and contractors.

EthicalBusiness
Conduct

Ensuring adequate systems andprocesses are in place to upholdthe highest standard of ethicalbusiness conduct, including
measures to promote anticorruption and fair competition.

ClimateChangePutting measures in place
to reduce energy use andgreenhouse gas (GHG) emissions,
including SO2 and NOx, across
our operations. Building resilienceagainst climate change risks.

Innovation and
Digitalization

Engaging in industry collaborationand partnerships for innovationin marine technology andstreamlining our operations
through digitalization.

TalentManagement

Attracting highly-skilledindividuals, providing training anddevelopment opportunities andpromoting a diverse and inclusive
workplace, to build a highperforming shipping company.

20

OCEAN NETWORK EXPRESS (ONE)

Direct Impact:

Topics ONE can directly
influence and manage

Indirect Impact:

Topics ONE can indirectly
influence and manage,
working with partners
including vessel owners andother stakeholders along
the value chain

Relevant Topics: Sustainability topics that are of medium importance to the business and of sufficient interest to
stakeholders to warrant disclosure as relevant.

Supply Chain
Management

Supporting Local
Communities

Mitigating the environmental,social and governance risks
in our supply chain throughresponsible procurement
practices.
Supporting communities in
need, through education
programmes, logistical support
during natural disasters, andenvironmental awareness.

Human Rights andLabour Practices

Respecting human rights andhaving zero tolerance for all
forms of child labour, forced
labour or other forms of
exploitation.

Recycling andDisposal of
Materials

Minimizing the amount ofwaste generated and ensuring
the safe disposal of hazardous
materials, including during thedismantling of ships at the endof their lifecycle.

Responsible
Tax Practices

Managing increasingly
complex tax laws and ensuringtransparency on our approachto tax payments.

Illicit Trade

Piracy andSecurity

SUSTAINABILITY REPORT 2020

Stakeholder
Engagement

An important tenet of oursustainability strategy is
being accountable andresponding to stakeholders’expectations in a timely andtransparent manner. We
also value stakeholders’opinion and feedback toensure we are continuously
improving our practices
and performance.

Our stakeholders have been
identified and prioritizedbased on the impact ouractivities have on them, theirknowledge of the sector andONE, as well their importanceto the success of our business.
They include:y Customers
y Employees
y Local Communityy Shareholdersy Suppliers

Throughout the year, we
make a conscious effort toengage with our stakeholders
through a variety of channels.
ONE material topic owners
formally and informallyengage with external
stakeholders from each ofthese groups as part of their
daily work. The table below
summarizes some of the key
engagements that took place
during 2019:

Stakeholder
Group

Engagement Method andFrequency

Topics andConcerns Raised

ONE’s
Response

Customers• Materiality survey and interviews(every 2-3 years)• Customer feedback forms(annually)• One-on-one communicationfrom sales team through emails,
meetings, etc. (regularly)• Sustainability Report (annually)• Cargo and data
security• CO2 Emissions• Traceability, track andtrace, and just-in-time
shipment• Shared ONE’s policy ondata security• Disclosed CO2 emissions
and reduction strategy• Implemented end-to-end
cargo tracking systemwith customer visibility.

• Equal opportunities• Training anddevelopment

Employee• Materiality survey and interviews(every 2-3 years)• ONE’s internal online portal(ongoing)• Facebook Workplace platform internal social network (ongoing)• ONE Townhall session (annually)• Employee appraisals (annually)• Training and development
programmes (ongoing)• Reiterated fair appraisal
process• Conducted a wider
and richer variety ofeducational and training
courses• Partnerships with Non-Profit
Organizations (ongoing)• Community engagement and CSR
programmes (regularly)• Promote education• Continued to participate• Create environmental
in community
awarenessengagement activities• Requests for free freight(Details can be foundtransportation andon the ONE CSR
fundraising support
homepage).

• Materiality survey and interviews(every 2-3 years)• Sustainability Report (annually)• Updates through email andmeetings (as needed)• Timely information on
business performance,
strategy, operatinglandscape andbusiness outlook• Provided timely
and comprehensive
information as requested• Corresponding email exchangewith major suppliers (ongoing)• Sustainability Report (annually)• Operational mattersand business issues• CommunicatedONE’s Supply Chain
Management Guidelines
to suppliers andencouraged them toadopt them

Local
community

Combatting human trafficking
and the illegal trafficking ofgoods such as narcotics andendangered wildlife.
Adopting proper measures
to prevent attacks and the
hijacking of our commercial
vessels as well as protecting
our business systems throughcyber security.

21

Shareholders

Supplier

22

OCEAN NETWORK EXPRESS (ONE)Our Commitment to theUnited Nations Global
Compact (UNGC) andSustainable Development
Goals (SDGs)

The UNGC calls on all companies
to align their practices with ten
universally accepted principles in
the areas of human rights, labour,
environment and anti-corruption,and to take action in supportof the SDGs. Progressively, we
continue to support the UNGC byincorporating the ten principles
in the way we do business.
As an active participant of the
UNGC, this report also serves
as our Communication on
Progress Report (COP). Pleaserefer to the UNGC referencetable for our implementation of
the ten principles of UNGC on
page 49.
Adopted in 2015, the SDGs
provide an internationally-

agreed roadmap to build abetter and more sustainable
future by 2030. ONE believes
that businesses play animportant role in contributing
to and achieving the SDGs.
We have mapped our material
sustainability topics in the tablebelow against all 17 goals. In
addition, we have also mapped
our business activities andinitiatives against the goals andtheir underlying targets.

Material Topics

SDG
4.4 By 2030, substantially increase thenumber of youth and adults who haverelevant skills, including technical andvocational skills, for employment, decent jobs
and entrepreneurship

5.1 End all forms of discrimination against all
women and girls everywhere• Supporting
local
communities• Talent
management

Example of activities and initiatives
ONE conducts educational activities as part of our
CSR and community engagement initiatives, suchas hosting student groups to understand more
about the container shipping business, Adopt-aSchool programme.
For more details, please see the Social chapter,on page 32.

We have anti-discrimination and harassment
policies in place, as well as a 24/7 whistleblowing
hotline to report any incident of discrimination.

To improve our energy efficiency and reduce ourCO2 emissions, we have implemented measures
such as:

7.3 double the global rate of improvement inenergy efficiency by 2030

• Climate
Change• Ensuring optimum scheduling and shorter port
stay times to increase trip efficiency• Slow steaming

SUSTAINABILITY REPORT 2020

SDG
10.3 Ensure equal opportunity and reduce
inequalities of outcome, including througheliminating discriminatory laws, policies
and practices and promoting appropriate
legislation, policies and actions in this regard
12.4 By 2020, achieve environmentally soundmanagement of chemicals and all wastes
throughout their life cycle in accordancewith agreed international frameworks andsignificantly reduce their release to air, waterand soil to minimize their adverse impacts onhuman health and the environment
12.5 By 2030, substantially reduce waste
generation through prevention, reduction,
recycling, and reuse
13.1 Strengthen resilience and adaptive
capacity to climate related hazards andnatural disasters in all countries
13.3 Improve education, awareness raisingand human and institutional capacity on
climate change mitigation, adaptation,
impact reduction, and early warning

23

Material Topics

Example of activities and initiatives• Talent
management

We work to ensure fair personnel treatment in
employment, personnel administration, wages,
training and promotion.

• Supply chain
management• Recycling anddisposal ofmaterials• Climatechange• Supporting
local
communities• Marine
Pollution andConservation

14.3 Minimize and address the impactsof ocean acidification, including throughenhanced scientific cooperation at all levels

8.8 Protect labour rights and promote safe
and secure working environments for all
workers, including migrant workers, inparticular women migrants, and those in
precarious employment

9.5 Enhance scientific research, upgrade thetechnological capabilities of industrial sectors
in all countries, in particular developing
countries, including, by 2030, encouraging
innovation and substantially increasing
the number of research and development
workers per 1 million people and public andprivate research and development spending• Human Rights
and Labour
practices• Employee
health, safety
and wellbeing• Retrofitting vessels with propellers that improve
propulsion efficiency

Respect for human rights, including eliminationof forced and child labour, is incorporated into
our Supply Chain Management Guidelines, which
all our business partners, including suppliers arerequested, to adhere to.

As part of our CSR programmes, we holdenvironmental-related activities such as beachand park cleaning, collection of recyclables andplanting to raise awareness on environmental
issues among our employees.

Vessels chartered by ONE will undergo a periodic
Vessel Quality Standard (VQS) inspection toensure their Safety Management System (SMS)
meets our requirements to prevent accidental
spills and operational discharge.
ONE has committed to medium and long-term
reduction targets for CO2 emissions.
ONE has implemented measures to be fullycompliant with IMO’s latest regulation on sulphur
limit in fuel oil, which will limit SOx emissions.
For more details, please see the Environment
chapter, on page 24-26.
ONE’s Code of Conduct and other policies
including our Basic Anti-Bribery Policy andProcurement Policy hold all employees to thehighest standards of ethical business conduct inall our activities.

For more details, please see the Environment
chapter, on page 24.

8.7 Take immediate and effective measures tosecure the prohibition and elimination of theworst forms of child labor, eradicate forcedlabor, and by 2025 end child labor in all its
forms including recruitment and use of childsoldiers

Recycling bins are provided at our office buildings
and e-waste such as batteries and laptops aredisposed through licensed recycling companies.
For more details, please see the Environment
chapter on page 27.

14.1 By 2025, prevent and significantly reduce
marine pollution of all kinds, particularly fromland-based activities, including marine debris
and nutrient pollution
14.2 By 2020, sustainably manage and protect
marine and coastal ecosystems to avoid
significant adverse impacts, including bystrengthening their resilience, and take action
for their restoration, to achieve healthy andproductive oceans

ONE works closely with owners of the vessels
we charter to ensure relevant regulations arecomplied with - we arrange for MARPOL (IMO)
compliance checks on waste management to be
conducted on board our chartered vessels.

16.3 Promote the rule of law at the national
and international levels and ensure equal
access to justice for all
16.5 Substantially reduce corruption andbribery in all their forms

We implement OHS policies and proceduresin accordance with all applicable laws andregulations in the jurisdictions in which we
operate.

• Ethical
business
conduct• Responsible
tax practices• Illicit Trade

Our Supply Chain Management Guidelines call on
all suppliers to comply with local and international
codes of practice, covering the areas of corporate
governance including issues of anti-competition,
anti-bribery and prevention of money laundering.
ONE’s Global Tax Policy sets out the guiding
principles and process protocols to being a
responsible taxpayer.
ONE has a cargo screening process as part ofour booking system to conduct due diligence anddetect questionable goods.
For more details, please see the Responsible
Business chapter, on page 38-42.

• Innovation and
Digitalization• Piracy andsecurity• Customer
experience

ONE invests in implementing digitalization
to deliver new value for the market and ourcustomers.
For more details, please see the Operational
Excellence chapter, on page 28.

17.16 Enhance the global partnership forsustainable development, complemented bymulti-stakeholder partnerships that mobilize
and share knowledge, expertise, technology
and financial resources, to support theachievement of the sustainable development
goals in all countries, in particular developing
countries

ONE has joined a number of industry andsustainability initiatives, including the Global
Compact Network Singapore (GCNS) to enhance
our collaboration with like-minded stakeholders
and work towards a more sustainable shipping
industry.
For more details, please see the About ONE
chapter, on page 14-15.

24

OCEAN NETWORK EXPRESS (ONE)

Environment

ONE’s environmental
policy encompasses:

Our Environmental
Policy and Management
System• Ensuring that theenvironmental management
system achieves its intended
outcomes

As stated in our Environmental
Responsibility Policy, ONE iscommitted to incorporating
leading environmental
practices into our businessstrategy and operations, andto fostering environmental
awareness and responsibility
among our stakeholders.

• The protection of theenvironment including
prevention of pollution• Environmental objectives
that are compatible with thestrategic direction and thecontext of the company• The integration of theenvironmental management
system requirements into
the company’s businessprocesses• The use of the process
approach and risk-based
thinking• The resources needed
for the environmental
management system areavailable

In October 2018, we achieved
the ISO14001 certificationfor our operations. Our
Environmental Management
System (EMS) Team, which
includes top management,is responsible for policy
and objectives setting,

reduction of CO2
emissions(in gram/teu-km)
by 2030 from2018 baseline• Use of shore electric power
through an Alternative Marine
Power (AMP) system whenberthing, reducing the needfor the use of onboard diesel
generators at specified ports
which have the facilities

50%

reduction of CO2
emissions(in gram/teu-km)
by 2050 from2018 baseline

Climate Change(including GHG andother emissions)

Based on the third International
Maritime Organization (IMO)
report, shipping contributes toabout three percent of global
anthropogenic carbon dioxide
emissions and may continue
to grow by 50% to 250%
by 2050. In 2018, the IMO
announced a target to reduce
the total annual greenhousegas (GHG) emissions from theshipping sector by at least 50%
by 2050 compared to a 2008
baseline. This is to meet theParis Agreement goals, whichaims to keep global warming toless than 2 degrees Celsius.
As part of our commitment to
reduce our emissions and tomeet the IMO’s objective, wehave developed medium- andlong-term carbon dioxide (CO2)
reduction targets*.

• Replacement with highefficiency propellers

Medium-term target:

Long-term vision:

implementation and executionof the environmental
management systems. The
EMS Top Management andProject Teams meet at least
once a year to discuss issues
and areas for improvement.

25• Use of larger vessels for thetransport of more containers
per trip25%

Ocean shipping is anefficient and cost-effectivemeans for transporting
goods internationally,
accounting for 90% of
global trade in 2019.

However, with issues suchas climate change, loss of
biodiversity and impacts fromwaste threatening the health ofthe environment we live in, as
well as the lives and livelihoodsof people, it is crucial that the
shipping industry continues
to implement and improveon its sustainable practices.
Environmental impacts fromthe shipping industry include
air pollution, sea pollution andother effects on marine life. As a
responsible container shipping
business, we aim to ensure, tothe best of our ability, that ouroperations are handled in a waythat minimizes environmental
impact. We also comply withthe relevant international
industry regulations.

SUSTAINABILITY REPORT 2020

*The reduction targets apply to
our direct shipping fleet and does
not include emissions from otheroperations such as our office buildings
and those from our supply chain suchas terminal operations.

To improve our energy efficiency
and reduce our CO2 emissions,
we have implemented measuresand new initiatives, someof which involved working
with vessel owners andmanufacturers. These measuresand initiatives include:• Ensuring optimum schedulingand shorter port stay times toincrease trip efficiency• Slow steaming, which is the
reduction of the operational
speed of the vessel, thus
saving fuel and reducing CO2
and other air emissions• Management of engine room
machinery (i.e. boiler andgenerator) through monthly
evaluation for performance
improvement• Occasional inspection andmaintenance of hulls andpropellers which reduces thefriction caused by build-up ofmarine fouling, thus optimizing
operational performance andreducing fuel consumption.
Initiatives completed in 2019 forselected vessels:• Upgraded the autopilot system
to an advanced-control system
to minimize vessel resistance,
optimizing routing and fuelconsumption• Downsized the Cooling Sea
Water Pump Motor, which uses
less energy• Installed special fins forpropellers to improve
propulsion efficiency andreduce fuel consumption
Initiatives to be undertaken
in 2020:• Modification of bulbous bow
to reduce resistance madeby waves
To monitor the energy
efficiency performance of ourvessels, ONE has developed
an in-house system thatcollects voyage data fromeach vessel and feeds it intoa monthly fleet performance
report. These performance
reports analyze the monthly
fuel oil consumption in the main
engine, generator engines andauxiliary boiler. We also identify
best practices amongst our
fleet and share this information
with vessels and vessel owners.
As a result of our energy
efficiency initiatives, our CO2
emissions intensity reduced by
3% from 2018.
Our Global Vessel Operations
and Fleet Management
Department will continue to rollout initiatives for fuel efficiency
which include the managementof vessel speed and schedule,monitoring of navigational
and technical performance,
marine weather analysis andclose ship-shore coordination.
We will also be exploring theuse of biofuels through a trial
project in 2020. Use of biofuels
can improve combustion
efficiency as well as reduce
pollutant emissions.

• Attachment of special
propeller boss cap, anenergy saving device

Fuel Consumption from non-renewable sources (TJ)
Oil Type

2018

2019

Fuel Oil

119,229

157,715

Gas Oil

12,056

17,230

Total

131,285

174,945

Fuel Oil consists of Heavy Fuel Oil and Very-Low Sulphur Fuel Oil.
ONE did not consume fuel from renewable sources in 2019
Conversion from fuel quantity to TJ is based on conversion factors provided in CDP Technical Note: Conversion of fuel data to MWh, CDP Climate
Change Questionnaire 2020

26

OCEAN NETWORK EXPRESS (ONE)Marine Pollution andConservation

Scope 1 emissions from consumption of fuels (tonnes of carbon dioxide equivalent, tCO2)
Oil Type

2018

2019

Fuel Oil

9,191,451

12,163,491

Gas Oil

898,882

1,284,634

Total

10,090,333

13,448,125

Note: As ONE only began operations in April 2018, the emissions data only cover April to December 2018, whereas the 2019 data covers the fullyear.
The operational control approach is used for the consolidation of data based on the GHG protocol.
Emission factors are referenced from the Clean Cargo Working Group (CCWG) and only CO2 is included. Based on CCWG, “Given that all relevantenergy consumption from ocean container transportation stems from fuel combustion on vessel engines, CO2 emissions is an appropriate
approximation of total GHG emissions.”

CO2 Emissions Intensity (g/TEU-km)
50

48.35

46.79

45
40

36.26

35
30

2018
Performance

2019
2030 Target

Note:
The emissions intensity data only includes Scope 1 emissions from the use of fuel on vessels
Emission factors are referenced from Clean Cargo Working Group and the Global Logistics Emissions
Council Framework.

Managing Sulphur Oxides(SOx) Emissions
The combustion of crude oil in the
ship’s engine results in the releaseof SOx, which are harmful to humanhealth and can lead to acid rain.
The limitation of SOx emissions will
therefore improve air quality andprotect the environment. The IMO
has been regulating SOx emissions
from ships under the International
Convention for the Prevention of
Pollution from Ships (known as the
MARPOL Convention). With effect fromJanuary 2020, the IMO has further
tightened regulations to limit sulphur
content in fuel oil to less than 0.5%.
In response to this new requirement,
ONE has established a cross-functional task force to evaluate
the technical requirements andplan actionable responses. Several
options have been evaluated to
identify the best and most costefficient method to comply with theregulation. This includes:• Using low-sulphur compliant
hybrid oil - Hybrid oil is one of
the compliant oils and ONE’scontainer vessels are equipped
to adopt low-sulphur content
hybrid oil without requiring special
modification, making this the mostviable way to meet the regulationsin the short-term.
• Installing a scrubber systemon vessels - There are several
existing ONE ships that meet therequirements for scrubber system

SUSTAINABILITY REPORT 2020

In 2019, our energy consumption
at global headquarters in
Singapore was 376,837.39 kwh,a decrease of about 2% from2018 at 384,286.88kwh. Our
Scope 2 emissions* wastherefore 157.82 tCO2, down from161.10 tCO2 in 2018.
Our total energy consumption
in 2019 including fuel use on
vessels and purchased electricity
for our global headquarters
in Singapore was 174,946 TJ
in 2019.
*Based on the Electricity Grid
Emissions Factors provided by theSingapore Energy Market Authority

installation, but long installation
times make it possible only as alater phase approach. We are also
looking to charter vessels withscrubber systems to expand thenumber of compliant ships.
• Using Liquified Natural Gas (LNG)- LNG is another category ofcompliant oil but the lack of LNG
powered engines on ONE’s ships
and limitations on the availability of
LNG bunkering facilities makes thisoption one that requires further
evaluation for implementation.
As of end 2019, 100% of vessels
chartered by ONE are compliant with
the new regulation. More details on
how we are complying with thisnew regulation can be found on
ONE’s website.

Accidental spills and operational
discharges can have an adverse
impact on marine life. While
ONE does not own any vessels
currently, we work very closelywith the owners of the vessels
we charter to ensure that bestpractices are implemented,
and all relevant regulations arecomplied with.
Vessels chartered by ONE
will undergo a periodic
Vessel Quality Standard (VQS)
inspection to ensure their Safety
Management System (SMS)
meets our requirements. These
inspections are carried out by
third-party survey companies,
in close collaboration with
our Marine Safety and Quality
Department. Checks are
conducted on the vessel’sequipment, compliance with theship management company’s
Safety Management System(SMS), compliance with the
MARPOL requirements throughcertification checks and whether
proper records are kept for
waste and effluents treatment/
discharge.

27

Quarterly feedback sessions
are carried out between ONE
and the third-party companies
involved in carrying out VQS
inspection of the ships to identify
areas of improvement.
All incidents involving any sort ofspillage is investigated, analyzed
and dealt with utmost importance.
Procedures are modified if
necessary, to prevent recurrence.
Employees can report any
observed negligent actions that
could result in damage to theenvironment via ONE’s Hotline
system. There were no significant
spills* reported in 2019 by ourvessels in 2019.
As part of our CSR activities,
we organize beach cleaning
events, for example, the one
conducted by ONE Mexico at
Manzanillo port to remove trash
and prevent them from entering
the ocean. A total of fifteen
employees took part in the eventin 2019. Two waste drums whichwere recovered from the port
and repurposed as trash bins
were also placed on the beachto encourage proper waste
disposal habits.

Recycling and Disposalof Materials

At ONE, we aim to reuse andrecycle the waste generated
by our operations where
opportunities exist. Recycling
bins are provided at our officebuildings and e-waste suchas batteries and laptops aredisposed through licensed
recycling companies. We also
arrange for MARPOL (IMO)
compliance checks on waste
management to be conductedonboard our chartered vessels.

Ship recycling

In 2009, the IMO adopted theShip Recycling Convention.
ONE does not currently own
any vessels and will comply
with the Convention if we dohave ownership in the future.
For the scraping of ship hulls,
we carry out preliminary surveys
on dismantling yards to ensurethat proper practices are inplace to reduce impact on theenvironment and workers
before they can be engaged byship owners.
*A significant spill is defined as more than
150 litres overboard/case

28

OCEAN NETWORK EXPRESS (ONE)Operational
Excellence

Value
BundleInnovation and
Digitalization

Digitalization is no longer
just a nice-to-have but thekey to long-term survival
and success in the container
shipping industry. At ONE, we
believe in delivering value
through big data analytics
and superior digital capability.

experience and renamed it ROOT.
ROOT is literally the part of theplant attached to the ground or
support (typically underground)that conveys water and nutrientsto the rest of the plant throughnumerous branches and fibres.
It is such named that it will sprout
and produce large flowers in
the future.

Stage 3
Digital businessConvergenceStage 1Channeldigitalization
Stage 1Asset
digitalization

Stage 2
Digital enabled
new services

Stage 1
Operation
digitalization

Capability
BundleBusiness as usual
A Digital Strategy Committee(DSC) has been set up in
2019 as the steering body for
ONE’s digitalization efforts andto coordinate the businessand technology capabilities
needed to achieve our vision.
We established the ONE
Digitalization roadmap to
guide us in building a robustinternal digital foundation,enhance existing businessmodels and services, develop
new ones through digitaltechnologies, and ultimately
to create new value forthe market.

One of the first initiatives under
the roadmap is the EnterpriseArchitecture Blueprint Project,

As ONE, we deliver value through big data analytics and digital capability to achieve excellent customer experience.
Ambition
Most data-driven & digitally savvy inindustry

Capabilities
High expertise, high commitment
and big data as assets

which seeks to provide acommon frame of reference
for both business and IT toalign on what and how ONE
will be building for the future,setting a firm foundation tomove forward on. We havesince refined the scope of
the Enterprise Architecture
Blueprint Project to focus onachieving a superior customer

We will commence the first stageof our roadmap in December
2020 with digitalizing ourchannels, operations and assets.
Integration of our e-commerce
platforms will provide an end-toend customer experience within
a single digital environment
from quotation to e-invoice.
Digitalizing our core operations
will enable greater efficiency
through automation and using
predictive analytics for operational
optimization, as well as betterrisk management with increased
supply chain visibility through realtime data exchange.
We believe that evolving into a
digital organization will not only
allow us to serve our customers
better, it will improve our agility
and decision-making abilities, andserve to attract the right talent tohelp keep the business growing
and running more effectively.

Digitalization Roadmap

Digital commerce
platforms
integration

North Star

Expectation
Timely, accurate and transparent
services with digital technologies

29

ONE’s Digitalization Model

Being one of the newest
players in the industry,
within a competitive climate
dictated by low unit costs
and economies of scale, we
see customer service andoperational excellence as
the key drivers for us
to differentiate and stake
our place in a futurecontainer market.
Innovation and digitalsolutions offer a way toreimagine new levels of
operational and service
excellence and efficiency,
enabling us to capture
new opportunities anddeliver more benefits tocustomers.

SUSTAINABILITY REPORT 2020

2021

2020

Data analytics
model build
micro service
architecture start

2023

2022

Underpinned by our values
Excellent customer experiencethrough digitalized platform

Sales strength by competitive
salesforce and customer
intelligence

Operational excellence in cost,
accuracy, efficiency and governancewith digitised process and analytics

New service
model & data
platform build

Continuous
apps build
expand big data

30

Customer Experience

Focusing on our customer
needs to deliver beyond
expectations and drive
customer satisfaction is oneof our core values. Ensuringhigh levels of service reliability
for customers and optimizing
the performance of ourcustomer service platforms,
such as the speed at which
we can turn around customer
bookings, form the focus of
our efforts to drive superior
customer experience.
In 2019, we launched a numberof initiatives to improve leadtime of quotation, rate filingand booking process, to further
enhance customer service.
We implemented the Live Chatfunction across 10 countries
to handle e-commerceenquiries, to enhance directcommunications with ourcustomers and improve
productivity. We plan to rollthis out to 8 more countries by
the end of 2020 and develop
a chatbot application that
can handle a greater volume
of enquiries.
We developed a Customer
Relationship Management(CRM) system where customer
feedback can be systematically
captured to allow improvementin our service quality. The
CRM system makes sharing
of information among global
and regional offices, different
departments and between
loading and discharging ports
easier and more seamless.
The timely information updates
improve communication
lead-time and customer
engagement. We are further
implementing and reinforcing
use of the CRM system.
In the third quarter of 2019,
we also launched a customer
satisfaction survey to global key
accounts in each region. This
helped us understand which

OCEAN NETWORK EXPRESS (ONE)of our customer support andsales activities met customer
expectations and which areas
could be improved.

A good example of suchinitiatives is our Terminal
Partnership Program (TPP),
originally launched in 2018with 9 terminals in the world.
This program was expanded
in 2019 to more terminals,
with the objective of reducing
vessel port stay and improving
productivity, which is mutually
beneficial to both carrier andterminal. Schedule integrity andvessel speed optimization are
improved for the carrier, which
also reduces environmental
footprint during navigation,
while the terminal can boost
the efficiency and utilizationof their berths and equipment.
Another benefit of this programis being able to work andONE VESSEL QUALITY STANDARD(ONE-VQS)

Vessel Safety

Our approach to vessel safety
is anchored in ONE’s stringent
Vessel Quality Standard (VQS).
The VQS ensure high safety
standards are maintained on
ships, based on requirements
for ship safety and quality
management systems that are
in line with industry standards.

Operational Efficiency

We are deepening partnerships
with service providers along
the whole value chain andimplementing various
initiatives globally to improve
our operational efficiency end
to end.

31

It is fundamental to deliveringon our customer promise
and building trust with them.
Beyond that, we also havea responsibility towards our
employees to ensure safety
across our operations.

While the implementation ofdigital solutions improves ourquality of service, it also brings
an increased responsibility
to protect both customer
and corporate data fromdigital security threats. Our
digitalization is governed by awell-designed IT infrastructure
and our Security Information
Policy, to ensure IT security anddata protection. There wereno substantiated complaints
concerning breaches ofcustomer privacy and losses ofcustomer data in 2019.
ONE also strives to achieve thebest operational efficiency, notonly at sea but also on land andshore, such as terminal, inlandtransport, barge and container
depot operations.

SUSTAINABILITY REPORT 2020

communicate more closelywith the terminals, which will
improve our service reliability
and benefit our customers
through better service levels.
In January 2019, ONE andPSA Singapore (PSA) jointly
celebrated the highest
productivity record achievedby ONE’s container vessel“NYK SWAN” at PSA
Singapore’s Pasir Panjang
Terminal, one of the terminals
under the TPP. In February
2019, another of ONE’s
vessels “MOL TRIBUTE” alsoachieved productivity record
with 19,190 TEUs (including
38 TEUs void space) loaded.
These achievements weremade possible by the strong
customer support, cooperation
between the terminal operator,
ONE’s stowage planners andshipping crew.

Cargo andContainer Safety

Safe transportation of cargo
is of utmost priority for ONE.

ONE’s Marine Safety &Quality Department (MSQ) is
responsible for managing andmonitoring vessel safety. They
carry out ship inspections inaccordance with ONE’s VQS. In
2019, a total of 99 inspections
were carried out. A target has
been set to ensure a minimumof 100 vessels are inspected
every year.
The Fleet Management
Department ensures that the
shipowners of our chartered
vessels comply with ONE’ssafety policies and processes.
If ships and ship owners arefound to be in violation of any
ONE safety standards, remedialactions will be taken as apriority. ONE will work together
with the ship owners to build
capacity and operational
controls, to ensure that risks
are addressed and minimized.
One incident of violation ofONE’s safety standards wasfound during VQS inspection
in 2019. We terminated thecontract for the vessel andreplaced it with one that met
our safety standards.
Safety campaigns are carriedout periodically to foster asafety awareness culture in
the company and ensure that
ONE’s safety standards arecommunicated with importanceMarine Safety& Quality

Inspection
company

to shipowners and ship
management companies.

Safe Ship Operation andTransportation

ONE is committed to ensuring
the safe operation of ships. We
developed and implemented
an Operational Standard toprovide guidance to shipcrews on how to manage andrespond to issues such as
cargo damage, heavy weather,
accidents and fires, as well as
provide instructions on safely
navigating areas at high-riskof piracy and conflict zones.
Issues such as robbery andtheft, unauthorised stowaways,
and the smuggling of firearms,
drugs, and other illegal
contraband are also addressedin the Operational Standard.
The Global Vessel Operations
department conducts daily
monitoring of our vessels’
position together with thecurrent weather condition toensure timely response to any
navigation risks. They are alsoin charge of stowage planningto ensure cargo safety.
Our ‘Marine Accident Report
System’ (MARS) was launchedwith the aim of both processing
accident cases swiftly andanalyzing accident trends. This
allows us to better understandthe root causes of accidents
and formulate effective
preventative measures.
The database of accident

Owner / Ship
Manager

information allows us to share
information with all our global
offices and establish optimalsafety procedures.
In addition, the MSQ
department publishes amonthly newsletter to updateon safety information and sharelessons from accident caseswith onshore and offshore
personnel, all operational
vessels, shipowners and ship
management companies.
We use the hours of downtimeof vessels due to accidents
or problems as a means ofmeasuring the degree towhich we have achieved safe
ship operation. For the year
2019, the average downtime
per vessel was 19.94 hours
and we are working towards
bringing it below 14 hours,with the ultimate target of‘zero’ downtime.
Maintaining high vessel safety
standards and ensuring thesafe transportation of cargoremains a top priority forONE. Annually, our senior
management also takes part ina Safety Management Review
to evaluate our policies andperformance and implement
any changes if necessary.
We also conduct an annual
large-scale accident drill tomaintain our preparedness
and response capability inthe unfortunate event ofan accident.

Vessel

32

OCEAN NETWORK EXPRESS (ONE)SocialTalent Management

The success of our business
depends on hiring, retaining
and developing a talented
and engaged workforce. ONE
embraces the diversity of ouremployees and recognizes
the importance of building ateam that works together tocreate new value by tapping
into a wide range of talents.

At ONE, we believe wehave the responsibility
to support and empower
our people and ourcommunities, wherever we
operate. This is enshrinedin our Business Credo,
which guides our day-today business conduct.

We commit to respecting
the diversity, individuality,and humanity of employees,
and contributing proactively
to society as a good
corporate citizen.

Taking Care of Our
Employees

We are dedicated to ensuring
our employees have aconducive, respectful and safe
work environment and aresupported in their professional
and personal development.
At the end of 2019, our global
workforce consisted of 7,494
employees in 46 entities
across 49 countries. Turnoverrate for the year was 7.92%.

Human Rights andLabour Practices

As a member of Global
Compact Network Singapore,
we support universal
principles regarding human

SUSTAINABILITY REPORT 2020

Averagetraining hours
by employee
category33

All employees undergo
an annual performance
review to determine
promotion opportunities,
rewards, bonuses andsalary increments. It is alsoa feedback channel for
employees on their level ofwork satisfaction. Employees
can also have a dialogue
about their career aspirations

and developmental needs.
Training and development
programmes on a range
of development topics areavailable for employees
to attend for upskilling,such as leadership andmanagement, technicaltraining on dangerous goods
management, customer
service and e-commerce, etc.

Non-Executive & JuniorManagement

Middle/Senior
Management

Board

12.1

19.0

10.7

Averagetraining hours

per employee

14.9
hours

Note: the figures exclude our South Africa office

Global Employee Figures 2019
Male

Female

3rd Gender

Total

Permanent Full-Time

3,552

3,740

0

7,292

Contract/Part-time

29

172

1

202

Our CEO Jeremy Nixon
highlighted the importanceof embracing all employees
as ONE from the beginning,irrespective of our diverse
backgrounds. Under our Codeof Conduct, all directors andemployees are expected totreat one another with respectand dignity, and to respect
the cultures and customs ofcountries and regions in which
we conduct business.
We have zero tolerance forany form of discrimination orharassment on the basis ofrace, creed, religion, gender,
national or regional origin,age, disability, or disease,and strive to create a fair andinclusive work environment
in which each employee isable to work with a sense ofsatisfaction and fulfilment.
The Human Resources
Department is responsible
for managing the antidiscrimination and harassment
policies and procedures ofour company and addressing
any incidences that arise. All
employees at GHQ, RHQ andlocal offices have access toONE’s whistleblowing hotline(run by a third-party service
provider), to report any
incidence of discriminationor harassment that theyexperience or observe, alongwith other issues. This service
is available 24/7, 365 daysa year in all languages usedat ONE.
There was an incident ofgrievance reported in 2019
which was duly investigatedand resolved with no further
action required.

Employees per employee category by gender (percentage)rights and labour standards.
This commitment is inline
with our Code of Conduct
and we work to ensure that
we do not contribute tohuman rights violations as aresult of our global businessactivities. We comply with allapplicable labour agreements
and regulations relating to
the protection of the rights ofworkers in the countries andregions in which we operate.
Respect for human rights,
including elimination offorced and child labour, isalso incorporated into our
Supply Chain Management

Guidelines, which werequest all our business
partners, including
suppliers, to adhere towhen providing products
and services to ONE. They
are required to formallyacknowledge and ratify
these guidelines before
entering into a formal
contract with ONE.
We also seek to ensure
equal opportunity inemployment, personnel
administration, wages,
training and promotion aspart of our commitment tofair personnel treatment.

Non-Executive & JuniorManagement

Middle/Senior
Management

Board

Male

53.3

71.8

93.3

Female

46.7

28.2

6.7

3rd Gender

1.0

0

0

Employees per employee category by age group (percentage)
Non-Executive & JuniorManagement

Middle/Senior
Management

Board< 30 years

22.1

0.4

0

So far,30-50 years

61.0

61.0

27.7

> 50 years

16.6

27.7

72.3

92%

In 2019, e-learning modules
on workplace harassment
and discrimination were
implemented for all

employees. The courses
cover actions and scenariosthat constitute workplaceharassment and discriminationand provides guidelines
on how to prevent such
incidences from occurring.

more thanof employees
in our global
offices havecompleted thise-learning

34

Employee Health,
Safety and Well-being

Providing a safe and healthy
work environment for our
employees is of utmost
importance. ONE is fullycompliant with all applicablelaws and regulations on
occupational health and safety
in the jurisdictions in which
we operate.
Occupational health &safety (OHS) is managed
in compliance with thelegal requirements of therespective countries in which
we operate, with reference
to the Global HR policy ofproviding a safe and healthy
environment for employees.
The respective countries’
OHS policies and procedures
incorporate the ONE Codeof Conduct and local labour
regulations or guidelines,
covering all workers, activities
and workplaces. For example,
in Thailand, it is requiredby law to establish an OHS
policy and an OHS committee
comprising employer andemployees to oversee andevaluate the implementationof safety measures in the

OCEAN NETWORK EXPRESS (ONE)workplace to ensure a safe
working environment.
The Human Resources (HR)Department and General
Affairs (GA) Department at each
ONE entity are responsible formanaging their respective OHS
systems. They conduct OHS
risk assessments on a regularbasis which are reviewed andendorsed by board members.
Employees must report any
accident, injury or workrelated hazard to the HR or GA
Department who will follow up
to investigate and review formeasures that should be put
in place to prevent recurrence
and minimize risks. As partof OHS policy, employees
can stop work due to safety
reasons without reprisals.
An occupational health services
function exists in majority ofthe offices to support risk
and safety management,
encourage safe working
practices and healthy work
habits among employees. OHS
information is disseminatedthrough online channels suchas email and website, as wellas through town hall sessions,0

Occupational
Health & Safety
Performance for2019

Number of
fatalities

workshops and trainings.
OHS trainings provided to
employees include workplacefirst aid, administering CPR
and AED, and safety andhygiene practices.
Employees are also covered
under group medical/
healthcare insurance, personal
accident and group term life
insurance, as an employment
benefit. To promote employee
wellbeing and engagement,
the ONE Recreation Committee(ORC) plans various eventsat discounted prices for
employees, such as movie
night, racing night, prawn
fishing, jogging, cooking, etc.
Social spaces are provided
in the offices for employees
to interact and to hold eventsand informal gatherings.
For example, in GHQ, theOcean Café provides coffee,
snacks and fruits during
office hours. On Fridays, acomplementary lunch buffet iscatered for people to socialiseover a meal.
ONE consistently monitors thenumber of work-related injuries
and fatalities that may occur.

0

Number of high-consequencework-related injury

Occupational Health and Safety
management system onboard
our chartered vessels are under35

Supporting Local Communities
ONE believes incontributing positively tothe communities in which
we work and live. Whether
it is through cash donations,employee volunteering orleveraging on our container
shipping services for freetransportation, these are ways
in which we actively contributeback to society as a good
corporate citizen.
Our support is predominantly
channelled towards
environmental activities,
children’s causes, education,
disaster relief and otherfundraising events. ONE
manages requests for inkind donation of free freighttransportation and larger
cash donations throughthe GHQ Planning &Administration department.
Smaller contributions can beapproved at local or regional
levels with each office having
the autonomy to decide
the type of local community
initiative they wish to sponsor.

Free Transportation

In 2019, ONE contributed 31 TEUs of free container shipping over 8 trips to transport donated items
as well as humanitarian and disaster relief goods to communities in need in Africa, South-East Asia,
Japan and China.

831

Used wheelchairsfor disadvantaged
children in
Paraguay

trips
TEUS of freecontainer shipping

9

English books to
Africa for SAPESI(South African
Primary Education
Initiative)

Number of recordable
work-related injury

Ambulancesand medical
equipment toCambodia

Lost-time Injury Frequency Rate (LTIFR)

Singapore GHQ 1.19

Global LTIFR figure is currently unavailable but we are working towards providing thisinformation in the coming years.

The recordable work-related
injury sustained by our
employees include accidental
tripping and injuries sustainedin traffic accident duringcommute to work.

SUSTAINABILITY REPORT 2020

the purview of the shipowners/ ship management companies.
We are nevertheless committed
to ensuring high level of safety
standards at sea. Our Fleet
Management Department
ensures that the shipowners of
our chartered vessels comply
with ONE’s safety policies
and processes. Marine Safety& Quality department also
conduct a pre-embarkation
briefing for captains to explain
safety policies and procedures.
More information how weensure safe ship operations andthe safe transportation of cargo
can be found in the Innovation
and Operational Excellence
chapter.

In 2019, across our various global offices, we contributed

22,830volunteering hours

1,360

By
employees

41

Over
CSR activities

36

OCEAN NETWORK EXPRESS (ONE)environmental-related suchas beach and park cleaning,collection of recyclables
and planting, social impactrelated, such as volunteering

India

Collection of food
donations for local
charity FeedMore

Donation to school forrural community

Empowering
under-privilegedchildren through rugby

Volunteering at
Foodbank

Tree planting
event

MexicoBeach cleaning

United ArabEmirates

Seedling planting andrepainting at NGO

Collection ofrecyclables to fundraise
for terminally ill children

Green Box Collection of Waste
Paper to saveEnvironment

Letter writing to Santa
Claus activity fordisadvantaged
children

Peru
Fundraisingthrough marathon
for local schools

ThailandBlood donation drive

Hosting overseas
students to learn
about containershipbusiness

LEGEND
ENVIRONMENTALEDUCATION

SOCIALDONATION

The region of Izmir suffered a fire that destroyed 500
hectares of forest. 9 NGOs in the city, together with the
Aegean Forest Foundation launched the “Target 1 million
Saplings” campaign.

with children charities andpromoting education, or
donation and fundraising
campaigns.

United States

Brazil37

Donation to “Target 1 Million Saplings”

CSR and Community Engagement Activities
Each of our global office isgiven the autonomy to decideon the local community causes
they would like to support andto initiate CSR activities, be it

SUSTAINABILITY REPORT 2020

Bangladesh
Donation to NGO
helping young girls
separated from theirfamilies

ONE Turkey donated to this campaign to raise funds for
new saplings to be planted that would help to ensure there-greening of forest areas darkened with fire.

China

Seedling planting and repainting at NGO

Donation of clothes
and stationery tochildren in need

12 employee volunteers from ONE Sao Paulo officepainted walls and planted seedlings at NGO “Gotas
de Flor com Amor”, which supports street children
and orphans in Brazil. The office also donated organic
compost for the plants. This has benefited the qualityof life and welfare of around 130 children who staythere. It was also a great and meaningful experience
for the employees.

Litter picking
at parks

Japan

Fundraising activities
for Typhoon Hagibis
victims

Educating elementary
school students about
container shipping
industry

Indonesia
Visiting elderly at
nursing home

Australia
Fundraiser fordeaf children:
Loud Shirt Day

Vietnam
Cleaning up park

Malaysia

Singapore

Adopt-a-School cum
Volunteerism project

Volunteering at Care Cornersenior activity centre

Cleaning of old folks’home

Cooking event forunderprivileged children

Volunteering withChildren’s Protection
Society fundraiser

Adopt-a-School Programme

SMK Pulau Carey (Carey Island High School) is anunderprivileged school where 35% of student population
is made up of aborigines from the “Mah Meri” tribe. Due tothe school’s location on an island and its close proximity
to sea water, it is exposed to harsh weather and in quite
a deplorable condition. School teachers are known tomultitask as general workers e.g. gardener, carpenter, etc. tomake ends meet.
ONE is keen to make positive changes by committing
to undertake small projects each year. In half a day, 29
volunteers from ONE Malaysia office managed to rebuild
its Reading Corner and fish pond, renew its outdoor garden
furniture, repair and repaint the decayed walkway pillars andcreate a foot reflexology area for the teachers and students.

38

OCEAN NETWORK EXPRESS (ONE)GovernanceTo maintain the trustand confidence of
our stakeholders, it isparamount that we act
responsibly and conduct
our business activities
with integrity.

This involves fostering aculture of ethical businessconduct and implementing aneffective governance structure.
It also requires having in placea proper risk management
system, and addressing key
risks associated with tax
transparency, supply chain
management, piracy andsecurity, and illicit trade.

Ethical BusinessConduct

ONE is committed to
upholding the highest
standard of ethical businessconduct in all our activities,
as set out in our Business
Credo. We have implemented
a number of policies andpractices that helps us do
this. Primarily, the company’s
Code of Conduct, which all
directors and employees
are expected to adhere to,sets out the principles thatguide the behaviours anddecisions we take in our dayto-day business activities. The
Code of Conduct covers thefollowing:• Improvement of service
quality, pursuit of safety,
and preservation of thenatural environment• Fair business activities• Prohibition of conflict ofinterest• Respect for human rights
and diversity of cultures• Relationship with society• Assurance of a safe andhealthy work environment• Treatment of information• Responsibility of top
management• Report and consultationof suspicious behaviour
The Business Credo andother compliance-related
policies are provided toall employees via ONE’sinternal online portal. As partof the onboarding process,new joiners are required
to complete a mandatorye-learning module which
includes a quiz to ensure they
have understood and areable to apply these policies ineveryday situations.

Whistleblowing andRaising Concerns

Employees have access toa Hotline System as a safe
avenue to raise, without the fearof reprisal, any improprieties or
non-compliances with regulationor our policies. Issues raised
may relate to:• Violation of any applicablelaws and regulations,
violation of any legal or
professional obligation;• Conduct that is inconsistent
with any of ONE’s internal
policies and procedures;• Bribery, corruption, conflictof interest, anti-competitive
practices, breach of
sanction regulations;• Financial fraud or
mismanagement;• Discrimination or
victimization; harassment;
unethical behaviour;• Abuse or theft of ONE’s
resources and assets;• Danger to health and safety,
criminal activity, damage tothe environment; and/or• Deliberate concealment of
any of the above.

SUSTAINABILITY REPORT 2020

Individuals have the option
to use ONE’s internal hotline
to report issues directly
to our legal department.
Alternatively, we haveappointed SAFECALL Ltd. as
an independent third-party
to run our external hotline.
Contact details are madeavailable to all employees
through posters in the office,ONE’s internal online portal
and compulsory e-learning.
All employees can makeuse of this service, which isavailable in all languages
used at ONE. If a concern israised, senior management
will carefully examine issues
and contact the whistleblower
to determine the best
next step. Depending on
the severity of the issue,
they will either conduct aninvestigation or escalate
the issue to the Compliance
Committee headed by our
Chief Compliance Officer
for further review. Once theissue has been resolved,
ONE will ensure disciplinary
actions against the offender
are taken if required andpreventative measures are
implemented.

Corporate GovernanceONE’s Holding Company(Hold Co) in Japan oversees
the governance of our
Global Headquarters (GHQ)in Singapore. As a company
registered in Japan, Hold Co
is held to comply with theCompanies Act, Corporate
Governance code which
includes the need for an
audit by external auditors
for internal control systems.
ONE’s presence throughregional offices, branches,
subsidiaries and jointventures span the globe,
and ONE GHQ oversees thegovernance with delegation
to Regional Headquarters(RHQs).

39

RHQs are situated in Hong
Kong, Singapore, the United
Kingdom (UK), the UnitedStates of America (USA) andBrazil. RHQs oversee over 160
local representative officesthat handle cargo coming into
the local ports.

responsible for overseeing
the company’s sustainability
strategy. To support theBoard, the Corporate& Innovation division
takes the lead on internal
governance issues, issues
involving or relating to theBoard of Directors, budget
planning and developing
the company’s approachto sustainability, working
closely with the Compliance
Committee and Business
Strategy Committee.

The Board has overall
responsibility for performing
the duties of strategicplanning and providing
oversight. As part of theirmandate, the Board is also

Corporate Governance chart
HOLDING COMPANY(HoldCO)

HoldCo Shareholder
meeting

Board of Directors• Audit-Supervisory
Board Member• External Auditor

Representative
Directors

Internal Audit(HoldCo)OPERATING COMPANY(OpCO)

OpCo Shareholder
meeting
Compliance
Committee

Board of Directors

Risk Management
Committee

GLOBAL HEADQUARTER(GHQ)

External
AuditorCEO

Corporate strategy
meeting

Internal Audit(GHQ)

Divisions of GHQ

Corporate & Innovation

Product & Network

Marketing & Commercial

40Compliance

The GHQ Compliance
Committee – headed by the
Chief Compliance Officer(CCO) and comprises the CEO,Managing Directors as well as
GHQ department heads – has
responsibility for governing
ONE’s compliance programme.
Taking a risk-based approach,the committee approvesand monitors complianceinitiatives. Respective GHQ
departments are responsible
for the implementation ofsuch initiatives at GHQ, RHQs
and frontline offices in eachcountry, following business
reporting lines. On-going
communication between
RHQ and frontline offices, aswell as collaboration acrossdepartments is essential
to ensure our complianceinitiatives are consistently
applied and remain practicalfor each market.
Some of the key initiatives
that have been rolled out asa result of cross department
collaboration include theintegration of compliancerelated topics in our SalesManagers’ training, the creationof anti-fraud e-learning, thecreation of a workplaceharassment e-learning module,
the implementation of anannual compliance declaration
and a compliance/anti-fraud
workshop.
To set the tone from thetop, the Board reinforced
ONE’s commitment toethical business conductand compliance to all GHQ
employees via an annual
video message. In response,
all GHQ employees submitted
a compliance declarationof adherence to ONE’s
Credo, Code of Conduct andother applicable policies.
Any concerns raised by theemployees shall be followed
up by our legal, compliance or

OCEAN NETWORK EXPRESS (ONE)Our Approach to Compliance
Compliance Committee

Board
Department Head

Annual top message
for compliance

Reporting LineBusiness sideGHQ

RHQ Legal

RHQs

Local Legal

Local Offices

ComplianceDeclaration

supports
e-Learning (Foundation)

HR teams, depending on thenature of the issue.
A number of training sessions
have been conducted on
key compliance topics, some
online and others face-toface. For example, a numberof e-learning modules havebeen rolled out on topics that
include but are not limited
to our Business Credo andCode of Conduct, competition
law, anti-bribery, economic
sanctions, conflicts of interest,
anti-fraud, IT and Information
Security. During 2019, an
average of five e-learning
courses were taken by each
employee, with a total of
39,214 courses completed
globally. In 2019, we also
held a seminar, conductedby external experts, attended
by 24 members of the Board
and Senior Management
covering key complianceissues that are relevant tothem. Eight compliance andanti-fraud workshops werealso conducted, with a total of
91 employees attending.

41

Risk Management

Legal

GHQ Legal

SUSTAINABILITY REPORT 2020

Bribery and Corruption

Bribery, anti-corruption andcompliance with legislationis also an important part ofONE’s Code of Conduct. The
provision or acceptance ofbribes, whether at home orabroad, directly or indirectly,
is strictly prohibited. In
addition, the ONE Basic
Anti-Bribery Policy sets outthat no employee of ONE,
whether directly or throughthird-parties, are to engage inany form of corrupt practices,
including bribery and extortion.

Briberya total of

39,214courses
completedglobally

As a global shipping company,
ONE is exposed to various
risks, including market volatility,
compliance, vessel operations,disasters and emergencies,
geographic specific risks,
information security andenvironmental risks. To
manage the company’s
approach to risk, we have inplace a Risk Management
Committee (RMC), tasked withevaluating the business impactof risks. The RMC reports
to ONE’s Board of Directors
and is made up of company
Directors, with the Business
Planning Team acting as asecretariat for the group. The
RMC reports to ONE’s Boardof Directors. Responsibilities of
the RMC include:• Sustainability• Stipulation, evaluation andclassification of risks andregular review• Initiating and minimizing loss
risks in terms of amount andfrequency• Initiate recovery planwith related division andcommittee• Control various risk
management activities
across the Organization
In 2019, we reviewed our risks
at a group level, creating aheat map which categorises
the various risks and organizes
counter-measures according
to “Prevention Plans”,“Minimization Plans” and“Recovery Plans”. We have also
checked to ensure each risk iscovered by a relevant policy.
The internal Audit Teamreviews and evaluates theoverall risk management
process, providing independent
assurance and advice on ONE’s
risk management, corporate
governance and internal
control processes to ensure
we are operating as effectively
as possible. The team also

Responsible
tax practices

promotes risk and control
awareness within the company.

Responsible tax practices

As tax laws and regulations
around the world are
constantly evolving andbecoming more complex,
the risk of unintentional
compliance breaches issignificantly increasing. ONE
is committed to being a
responsible taxpayer, working
towards tax transparency anddisclosure. In line with ourvalues, we do not condone
the behaviour of profit shiftingwith a tax avoidance intent
for the purpose of minimizing
our tax obligation. Our Global
Tax Policy (GTP) sets out theguiding principles and process
protocols for the in-scope
tax processes.
ONE’s Tax Team is responsible
for ensuring the appropriate
tax filings and tax obligations
are met.

Supply Chain
Management

ONE recognizes that in orderto achieve our sustainability
ambitions, we must bringon-board our suppliers
and business partners. Asa business, we purchaseproducts and services from a
range of companies. Criticalto our operations are terminal
operators, inland and coastaltransportation companies,
ships and container owners,
bunker suppliers and IT
vendors, without whom ourcore business activities cannot
take place.
To ensure our high standardsof sustainability and businessconduct are upheld along our
supply chain, ONE launched
our Supply Chain Management
Guidelines. The guidelines callon all suppliers to:• Respect human rights,
particularly aroundemployee health and safety
and labour rights.
• Comply with local andinternational codes ofpractice, covering the areasof corporate governanceincluding issues of anticompetition, anti-bribery
and prevention of money
laundering.
• Provide safe and trusted
services, training employees
to undertake activities suchas operation of machinerysafely and have establishedemergency response
capabilities.

42• Improve environmental
practices including the
reduction of resource andenergy consumption.
• Manage and protect
intellectual property andinformation responsibly.
Procurement staff areencouraged to share theseguidelines with potential
vendors. Vendors that agree
to follow our guidelines canregister their name on our
website, in order to recognize
their efforts in following
stringent social, environmental
and governance standards.
Since launching this, we arepleased to see that the numberof registered companies is
steadily increasing, a testament
to our ability to influence
suppliers and their willingness
to join us on this journey.
We have also developed aninternal Procurement Policy
which has been disseminatedto all procurement related
divisions. Our Procurement
Policy encourages employees
to make purchasing decisions
through the following criteria:• Fair and unbiased evaluation• Compliance with laws andsocial norms• Responsibility towards
respecting human rights,
safety and environmental
protection optimal quality
and reasonable cost

Piracy and Security

The threat of piracy andhijacking of commercial
vehicles at sea has been on
the agenda of ship operators.
An important aspect of thisis that a ship’s onboard
information technology andoperational technology systems
can be hacked just as easily
as systems ashore, potentiallycausing considerable harm to
the safety and security of ships,
ports and marine facilities.
Adopting proper measures toprotect our business systems

OCEAN NETWORK EXPRESS (ONE)through cyber security and toprevent attacks and hijackingof our commercial vehicles isimportant to ONE.
Our Security Information Policy
has been developed to protect
ONE’s information assets –both in digital and non-digitalformat. It details the minimum
requirements and responsibilities
for all our employees to ensure
confidentiality and data privacy ismaintained, as well how to report
data security incidences. We also
have an IT Management Policy
which defines the requirements
for managing ONE’s information
technology assets throughout
the entire lifecycle.
Piracy incidents off the coast ofSomalia and the Gulf of Aden
have dropped in recent years as
a result of the measures takenby the international community,
including Japan’s Maritime SelfDefence Force. The situation still
remains fragile should efforts be
dropped. Piracy-related losses in
Gulf of Guinea (West Africa) andin Southeast Asia are howeverstill frequent.
We seek to receive protection
from Japan’s Maritime Self-

SUSTAINABILITY REPORT 202043

GRI Content
Index

Defence Force and navies ofvarious countries as much as
possible but cannot rely solely
on this type of defence. On
our side, we aim to ensure thesafety of crew is a top priority.
We seek to avoid high-risk areas,use high-pressure water nozzle
and install razor wire to prevent
unauthorized embarkation, as
well as provide bullet-proof vests
and helmets.

This report has been prepared with reference to the GRI Standards. The
table below presents our GRI content index, which specifies each of the
GRI Standards and disclosures referenced in the report, including where
the information can be found.

There were no information
security breaches, as well as nocases of piracy in 2019.

GRI Standard

Illicit Trade

We recognize that the sheer
volume of trade that is carriedout at sea provides opportunities
for criminals to move illegal andunethical goods across borders.
Illicit trade – whether in the formof arms, narcotics, endangered
wildlife and other illicit goods on
the black markets – damages
the global economy and harms
public health worldwide. ONE
has zero tolerance towards thetrade of illicit goods. We havea cargo screening process as
part of our booking system
to conduct due diligence anddetect questionable goods.

GRI Disclosure
NumberGRI Disclosure Title

Page references

General Disclosures
GRI 102:
Organizational Profile
General102-1
Name of the organization
Disclosures 2016

Piracy and Secrity

10

102-2

Activities, brands, products, andservices

102-3

Location of headquarters

Singapore

102-4

Location of operations

11

102-5

Ownership and legal form

10

102-6

Markets served

11

102-7

Scale of the organization

11

102-8

Information on employees and otherworkers32

102-9

Supply chain

41

102-10

There were no significant
Significant changes to the organization
changes to our organizationand its supply chain
and supply chain in 2019.

102-11

Precautionary Principle or approach24

102-12External initiatives

14102-13

Membership of associations

14

Statement from senior decision-maker

4

3, 10

Strategy102-14

Ethics and Integrity
102-16

Values, principles, standards, andnorms of behaviour

102-17

Mechanisms for advice and concerns
about ethics

Governance

12, 3838

44

GRI Standard

OCEAN NETWORK EXPRESS (ONE)GRI Disclosure
NumberGRI Disclosure Title

Page references102-18Governance structure

39102-19Delegating authority

39

102-20Executive-level responsibility foreconomic, environmental, and social
topics39102-21

Consulting stakeholders on economic,
environmental, and social topics

21

Stakeholder Engagement

SUSTAINABILITY REPORT 2020

GRI Standard

GRI Disclosure
NumberGRI 305:
Emissions 2016

25

305-2

Energy indirect (Scope 2) GHG
emissions

25

305-4

GHG emissions intensity

25

103-1

Explanation of the material topic andits Boundary

19

103-2

The management approach and its
components

27

103-3

Evaluation of the management
approach

27

103-1

Explanation of the material topic andits Boundary

20

103-2

The management approach and its
components

27

103-3

Evaluation of the management
approach

27

103-1

Explanation of the material topic andits Boundary

19

103-2

The management approach and its
components

30

103-3

Evaluation of the management
approach

30

418-1

Substantiated complaints concerning
breaches of customer privacy andlosses of customer data

30

103-1

Explanation of the material topic andits Boundary

19

103-2

The management approach and its
components

28

103-3

Evaluation of the management
approach

28

103-1

Explanation of the material topic andits Boundary

19

103-2

The management approach and its
components

31

103-3

Evaluation of the management
approach

31

Marine Pollution and Conservation
GRI 103:
Management
Approach 2016

21102-42

Identifying and selecting stakeholders

21102-43

Approach to stakeholder engagement

21

Recycling and Disposal of Materials

102-44

Key topics and concerns raised

21

102-45

Entities included in the consolidated
financial statements

GRI 103:
Management
Approach 20163

102-46

Defining report content and topic
Boundaries

3, 19

102-47

List of material topics

19

102-48

Restatements of information

No information or data wasreinstated.

102-49Changes in reporting

There were no changes inreporting.

102-50

Reporting period

3102-51

Date of most recent report3102-52

Reporting cycle

3

Contact point for questions regarding
the report3102-54Claims of reporting in accordance with
the GRI Standards

3102-55

GRI content index

43102-56External assurance

3

Operational Excellence
Customer Experience
GRI 103:
Management
Approach 2016

GRI 418: Customer
Privacy 2016

Innovation and Digitalization
GRI 103:
Management
Approach 2016

Material Issues
Environment

Page references

Direct (Scope 1) GHG emissions

List of stakeholder groups engaged

102-53

GRI Disclosure Title

305-1

102-40

Reporting PracticeCargo and Container Safety

Climate Change (including GHG and other emissions)
GRI 103:
Management
Approach 2016

45

103-1

Explanation of the material topic andits Boundary

19

103-2

The management approach and its
components

24

103-3

Evaluation of the management
approach24

GRI 103:
Management
Approach 2016

46

GRI Standard

OCEAN NETWORK EXPRESS (ONE)GRI Disclosure
NumberGRI Disclosure Title

Page references

SocialEmployee Health, Safety and Wellbeing
GRI 103:
Management
Approach 2016

GRI 403:
Occupational
Health and Safety
2018

GRI Disclosure
NumberGRI 405:
Diversity andEqual Opportunity

405-1

Diversity of governance bodies andemployees

33

GRI 406:
Non-Discrimination
2016

406-1

Incidents of discrimination andcorrective actions taken

33

103-1

Explanation of the material topic andits Boundary

20

103-2

The management approach and its
components

35

103-3

Evaluation of the management
approach

35

203-1

Infrastructure investments andservices supported

35

103-1

Explanation of the material topic andits Boundary

19

103-2

The management approach and its
components

38

103-3

Evaluation of the management
approach

38

205-2

Communication and training
about anti-corruption policies andprocedures

40

103-1

Explanation of the material topic andits Boundary

20

103-2

The management approach and its
components

41

103-3

Evaluation of the management
approach

41

19

103-2

The management approach and its
components

34

103-3

Evaluation of the management
approach

34

403-1

Occupational health and safety
management system

34

403-2

Hazard identification, risk assessment,
and incident investigation

34

403-3

Occupational health services

34

403-5

Worker training on occupational healthand safety

34

403-6

Promotion of worker health

34

403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships

34

Work-related injuries

34

103-1

Explanation of the material topic andits Boundary

20

103-2

The management approach and its
components

32

103-3

Evaluation of the management
approach

32

103-1

Explanation of the material topic andits Boundary

19

Responsible Tax Practices

103-2

The management approach and its
components

33

103-3

Evaluation of the management
approach

GRI 103:
Management
Approach 2016

33

404-1

Average hours of training per year per
employee

33

404-2

Programs for upgrading employee
skills and transition assistanceprograms

33

GRI Disclosure Title

Page references

Supporting Local Communities
GRI 103:
Management
Approach 2016

GRI 203:
Indirect Economic
Impacts 2016

Governance
Ethical Business Conduct

Talent Management

GRI 404:
Training and
Education 2016

GRI Standard

Explanation of the material topic andits Boundary

Human Rights and Labour Practices

GRI 103:
Management
Approach 2016

47

103-1

403-9

GRI 103:
Management
Approach 2016SUSTAINABILITY REPORT 2020

GRI 103:
Management
Approach 2016

GRI 205:
Anti-Corruption
2016

Piracy and Security

48

GRI Standard
GRI 103:
Management
Approach 2016

GRI 418:
Customer Privacy

OCEAN NETWORK EXPRESS (ONE)GRI Disclosure
NumberGRI Disclosure Title

Page references

103-1

Explanation of the material topic andits Boundary

20

103-2

The management approach and its
components

42

103-3

Evaluation of the management
approach

42

418-1

Substantiated complaints concerning
breaches of customer privacy andlosses of customer data30, 42

103-1

Explanation of the material topic andits Boundary

20

103-2

The management approach and its
components

42

103-3

Evaluation of the management
approach42

Illicit Trade
GRI 103:
Management
Approach 2016SUSTAINABILITY REPORT 2020

49

United Nations
Global Compact
COP
As a corporate member of the Global Compact Network Singapore(GCNS), the local chapter of the United Nations Global Compact (UNGC)
network, ONE supports the ten UNGC Principles. Please refer to the
UNGC reference table below for coverage of our efforts in relation to theten principles. We will continue to support UNGC by incorporating theten principles in the sustainable development of our business
Human Rights
Principle 1

Businesses should support and respect theprotection of internationally proclaimed humanrights; andPrinciple 2

make sure that they are not complicit in humanrights abuses.

p. 32, 38, 41

LabourPrinciple 3

Businesses should uphold the freedom of
p. 32, 33, 38, 41
association and the effective recognition of the rightto collective bargaining;

Principle 4

the elimination of all forms of forced andcompulsory labour;

Principle 5

the effective abolition of child labour; andPrinciple 6

the elimination of discrimination in respect of
employment and occupation.

Environment
Principle 7

Businesses should support a precautionary
approach to environmental challenges;

Principle 8

undertake initiatives to promote greater
environmental responsibility; andPrinciple 9

encourage the development and diffusion ofenvironmentally friendly technologies.

p. 24, 35, 41

Anti-Corruption
Principle 10

Businesses should work against corruption in all its
forms, including extortion and bribery.

p. 38, 40, 41

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Tower Singapore 018936
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