SUSTAINABILITYREPORT2018

TABLE OF
CONTENTS

1.

A Message from our CEO

04

2.

About ONE
2.1 ONE Ambition
2.2 Our Core Values
2.3 Our Governance

06
06
06
07

3.

Sustainability at ONE
3.1 Our Commitment
3.2 Our Sustainability Priorities

09
09
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Responsible Business Partner
4.1 Our Commitment to the		UN Global Compact Principles
4.2 Human Rights
4.3 Anti-Corruption
4.4 Tax Principles

125.

Delivering Safety and Security
5.1 Safe Transportation

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6.

Commitment to the Environment
6.1 GHG and Other Emissions
6.2 Energy Efficiency in Ship Operation
6.3 Oil and Marine Pollutant Substance Spills
6.4 Ballast Water Management

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7.

ONE Protecting and Empowering People
7.1
Management Approach
7.2 Recruitment, Training and Development

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4.

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A MESSAGEFROM OUR CEO
security of people and cargo
onboard is our utmost priority.
In addition to developing andimplementing strict standards
and procedures, we actively
work with our partners toensure their ships and people
are fully equipped and capableof meeting our customers’
needs and commitments tosafety and security.

The safety andsecurity of people
and cargo onboard
is our utmost priority.

Dear reader,
As we have been preparing
for the launch of Ocean
Network Express (ONE)in 2018, we have worked
to build a foundation forsuccess: operate in a
responsible and sustainable
manner while exceeding
customers’ expectations
through better service andmore shipping routes.
This sustainability reportoutlines our position,commitments and futureplans on environmental andsocial issues that are critical toaddress in our industry.
OCEAN NETWORK EXPRESS (ONE)We first joined Global
Compact Network Singapore,
the local chapter of the United
Nations Global Compact(UNGC) network in 2018.
As a member, we want todemonstrate our commitment
to the UNGC Ten Principles
and our intention to manage
our operations while helping
advance the situation onhuman rights, labor standards,
corruption and the protectionof the environment.
As ONE continues to unlock
new routes across more than
100 countries, the safety andTo manage our environmental
impact, and help ourcustomers manage the effects
of climate change, ONE isdeveloping an environmental
management system which
will be ISO14001 certified in
2018. We will also leverage on
the expertise and technologyof our three parent companies
to identify innovative ways tofurther reduce our emissions.
ONE’s objective is to deliver
enhanced service andinnovation in a responsible
and sustainable manner. The
development of ONE’s firstsustainability report was also
the opportunity to better
understand the environmental,social and governance issues

This sustainability reportoutlines our position,commitments and futureplans on environmental andsocial issues that are critical toaddress in our industry.
that can have a material
impact on our company, which
will allow us to better manage
risks and capture growth
opportunities contributing
towards ONE’s businesssuccess over the long term.
We intend to regularly
communicate our sustainability
progress, successes andchallenges openly andtransparently to develop
closer relationships with our
stakeholders. We welcome
your feedback and ideas on
our sustainability efforts.
Best Regards,
Jeremy Nixon
Chief Executive Officer

SUSTAINABILITY REPORT 2018

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6

ABOUT
ONE
2.1

2.3

Ocean Network Express will
be operational on April 1st 2018with the ambition to provide
a new and unique approachto container shipping. Our
name conveys our integrity three leading marine transportcompanies working together tospark a revolution.

ONE was born from theintegration of the container
shipping businesses of threecompanies - Kawasaki Kisen
Kaisha, Ltd., Mitsui O.S.K.
Lines, Ltd., and Nippon Yusen
Kabushiki Kaisha.

ONE AMBITION

Ours is to champion humanpotential and combine ourstrengths to deliver better
service, more diverseroutes, and ICT solutions
born to change the way theworld moves. We manage
our containers to exacting
perfection, forming the world’s
leading container shipping
network and delivering a newlevel of service with innovative
new technologies.

OUR GOVERNANCE
LEAN & AGILE
Breaking through conventions tomake ideas into reality quickly

BEST PRACTICE
Continuing to improve ourselves
based on the knowledge cultivatedby three shipping companies todeliver the best services

ONE Holding Company,
based in Japan, oversees
QUALITY
Pursuing the best quality that always
exceeds customer expectations

CHALLENGE
Exploiting individual strengths
and continuing to meet challenge
without fear of failure

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

RELIABILITY
Delivering stable, sustainable andprofessional services

2.2

OCEAN NETWORK EXPRESS (ONE)OPERATING
COMPANY(OpCo)GLOBALHEADQUARTER(GHQ)OUR CORE VALUES

Our values reflect ONE’s
new world standard, moving
beyond the traditional and into
the innovative.

HOLDINGCOMPANY(HoldCo)INNOVATION
Delivering services that contributeto the customer’s business throughself-innovation and creativity

CUSTOMER SATISFACTION
Focus on customer needs well anddeliver satisfaction that exceeds
expectations

the governance of all
operating companies
globally. With operational
global headquarters basedin Singapore, ONE’s global
presence through regional
offices, branches, subsidiaries
and joint-ventures will span
across more than 100 countries.

HoldCoShareholder
meeting

OpCo
Shareholder
meeting

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

Representative Directors

Internal Audit(HoldCo)

Board of Directors
External Auditor
CEO

Corporate strategy meeting
Internal Audit (GHQ)
Divisions of GHQ

SUSTAINABILITY REPORT 2018

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SUSTAINABILITY
AT ONENUMBER ONE
Our customers come first, andwe intend to exceed themthrough constant quality andreliability. Now and well into
the future.
✓ ONE is creating the world’s
highest-level network
providing seamlessservices to our customers✓ ONE has the ability to finetune services based on
customer’s perspectives✓ ONE is rethinking customer
services by utilizing latest
technology

ONLY AT ONE
We believe that cuttingedge technology will help us
broaden the essence of ourindustry, explore new services
and reimagine new levels of
efficiency to break tradition forthe better.
✓ ONE sustainable safety
vessel operation✓ ONE accelerated
environmental response✓ ONE has developed
optimal economic ship
operations by real timelinkage of big data
✓ ONE focuses our efforts
to be a lean and agileorganization in order tomake swift decisions andmanage our business mostefficiently

ONE TEAM✓ To deliver on ourcommitment, ONE relies
on a corporate culture that
fosters collaboration andleveraging best practices✓ Our approach to attract andmanage talent is critical in
the success of our business✓ Our goal is to develop
a diversity-rich andmulticultural organization

3.1

OUR COMMITMENT

As a critical connector in theworld’s supply chains, ONE
is committed to conducting
its business in a responsible
manner recognizing thewider economic, social andenvironmental impact of ouractivities.
ONE is also committed topromote sustainable practices
with its suppliers and business
partners. Sustainability matters

to our customers and ourintention is to work closely withthem to help reduce their risks
and improve the transparencyof their own supply chain,delivering greater value anda common purpose throughtheir journeys.
This is integral to the way we
do business at ONE, and willremain an essential part of ourcompany in the future.

SUSTAINABILITY
AT ONE
Commitment
to theEnvironment

Delivering
Trust and
Security

EmpoweringandProtecting
PeopleA Responsible Business Partner

OCEAN NETWORK EXPRESS (ONE)SUSTAINABILITY REPORT 2018

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3.2

OUR SUSTAINABILITYPRIORITIESAs a first step, we worked
with independent consultants
to identify and prioritize theissues that matter most across
our whole value chain - toour business and our key
stakeholders. This materiality
assessment will help informthe development of oursustainability strategy andallow us to report in line with
the interests and needs of ouraudiences.
In 2018, we will further engage
with key stakeholders to review
and update our materiality
assessment, reflecting possible
changes in our business aswell as socio-economic andenvironmental trends.

OCEAN NETWORK EXPRESS (ONE)

2017

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3

4

20 18

With global trends andchanges affecting our industry,
it is critical we stay on top of
emerging risks and respondquickly. Our first goal is toembed sustainability in ourbusiness strategy and in allareas of our operations.

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IDENTIFY AND CATEGORIZEKEY SUSTAINABILITY ISSUES
An assessment was carried out to identify sustainability
risks and opportunities relevant to ONE and the shipping
industry. 28 sustainability topics were identified using a wide
variety of sources including peer materiality assessment,
industry association trends analysis and reports as well as
global frameworks such as the United Nations Sustainable
Development Goals.
ANALYZE SUSTAINABILITY ISSUES AND PRIORITIESThe 28 sustainability topics became the basis forbenchmarking analysis, engagement with internal
stakeholders and an internal review that examined our areasof strength, weakness and opportunities.

The 28 sustainability issues
identified have been mappedon a materiality matrix toshow their relative level ofstakeholder interest and theirpotential impact on ONE
business.

Hazardous
Materials
Greenhouse Gas(GHG) Emissions
and Other
Emissions

SUSTAINABILITY STRATEGY PLANNING
Based on the findings of this materiality assessment, ONE
will be able to review its current approach to sustainabilityaligning to the most material topics and defining its
strategic priorities.
TRACK AND REPORTAs ONE will constantly continue to innovate and implement
new initiatives, we will monitor and report our objectives,
targets and progress made to deliver our sustainability strategy.

Food Safety
Anti-Corruption

Fair Competition

Container Weight
Oil and Marine
Pollutant
Substance Spills

Energy Efficiency
in Ships

PRIORITIZE SUSTAINABILITY ISSUES
Each sustainability topic was assessed and prioritized basedon its impact on the business, stakeholder concern andONE’s ability to influence.
STAKEHOLDER ENGAGEMENT
ONE will conduct a survey with both internal and external
stakeholders globally. This initiative will help review andupdate our sustainability materials topics.

Human Rights

Diversity &Inclusion
Health and Safety

Water Pollution

Anti-Fouling
Systems
Biodiversity andConservation

Tax Practices &Transparency

Use ofRenewable
EnergySupporting Local
Communities

SafetyTransportation

End-of-Life of
Ships

Supply-Chain
Management
Cargo Security

Ballast Water
Management

Talent Attraction
and Development

PiracyInfrastructural
Development
Industry
Collaboration andPartnerships
Disaster
Response

Customer Service

Very High

Important but not adopted for 2018

SUSTAINABILITY REPORT 2018

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A RESPONSIBLE
BUSINESS PARTNER

In order to be part of a global
movement towards conducting
business in a responsible
and sustainable manner, ONE
became a member of Global
Compact Network Singapore(GCNS), the local chapter of
the United Nations Global
Compact (UNGC) network.
As a member, ONE supports
the ten UNGC Principles andhas pledged to adopt andpromote sustainable andresponsible business practices.
This means operating in ways
that, at a minimum, meet

OCEAN NETWORK EXPRESS (ONE)As a member, ONE supports
the ten UNGC Principles andhas pledged to adopt andpromote sustainable andresponsible business practices.

fundamental responsibilities
in the areas of human rights,
labor, environment and anticorruption.

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4

LA

HUMAN RIGHTS

Principle 1: Businesses
should support andrespect the protection ofinternationally proclaimed
human rights.
Principle 2: Businesses
should make sure thatthey are not complicit inhuman rights abuses.

T

Through our own businessactivities, we can either cause,
contribute or be linked topotential adverse impact inthese areas.

1

AN
CORR TIUPT
ION

BO

5

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7

IR O N M E N

With global activities anda presence in more than
100 countries around theworld, ONE will inevitably be
confronted with ethics, humanrights, labor and environmental
issues. Through our own
business activities, we caneither cause, contribute or belinked to potential adverse
impact in these areas.

AN

HTS
RIG

ENV

OUR COMMITMENT
TO THE UN GLOBALCOMPACT PRINCIPLES

HU
M

4.1

R

LABOR

Principle 3: Businesses
should uphold thefreedom of associationand the effective
recognition of the right tocollective bargaining.
Principle 4: Businesses
should uphold theelimination of all forms offorced and compulsory
labor.
Principle 5: Businesses
should uphold the effective
abolition of child labor.

ENVIRONMENT

Principle 7: Businesses
should support aprecautionary approach toenvironmental challenges.
Principle 8: Businesses
should undertake
initiatives to promote
greater environmental
responsibility.

ANTI-CORRUPTION
Principle 10: Businesses
should work against
corruption in all its forms,
including extortion andbribery.

Principle 9: Businesses
should encourage thedevelopment and diffusionof environmentally friendly
technologies.

Principle 6: Businesses
should upholdthe elimination of
discrimination in respectof employment andoccupation.

SUSTAINABILITY REPORT 2018

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4.2

HUMAN RIGHTS

As a member of Global
Compact Network Singapore,
we support universal
principles regarding humanrights and labor standards.
Our commitment to humanrights is expressed throughour Credo and Code of
Conduct. We will work
to ensure that we do notcontribute to human rights
violations as a result of ourglobal business activities.
As a trusted employer, we
will also ensure that all our
employees are treated in amanner consistent with theapplicable laws and labor
conventions.

We will work toensure that we
do not contributeto human rights
violations as aresult of our global
business activities.
OCEAN NETWORK EXPRESS (ONE)

A compliance committee willbe established in 2018 whose
responsibility is to ensure that
ONE respects human rights
throughout its operations andwill integrate human-rights
considerations into its existing
management systems.

4.3

ANTI-CORRUPTION

4.4
ONE is committed
to work against all
forms of corruptionin accordance withthe law and thefundamental valuesof our organisation.

Operating globally increases
the risk of corrupt practices inour businesses which could
result in potential financial andreputational risks.

ONE global headquarters are
responsible for driving ourcompliance with necessaryanti-corruption laws across all
ONE companies worldwide.

ONE is committed to work
against all forms of corruptionin accordance with the law
and the fundamental valuesof our organization. It is in
our Credo, Code of Conduct
and Basic Anti-Bribery Policythat no employee – whether
directly or through third parties– are to engage in any formof corrupt practice, including
bribery and extortion.

All staff in ONE’s global
headquarters and managers
from regional headquarters
have been informed on ONE’s
position on anti-corruption
through ONE’s Credo, Codeof Conduct and Basic AntiBribery Policy. ONE global
headquarters will work withthe regional legal departments
to further develop and executea broader communication planin order to educate all local
employees in their respective
regions in 2018.

The legal department andcompliance committee at

TAX PRINCIPLESAs tax laws and regulations
are evolving and becoming
more complex, the risk ofunintentional compliancebreaches is significantly
increasing.
ONE is committed to ensuring
compliance with local
requirements and working
towards tax transparency anddisclosure. ONE does notcondone the behavior of profit
shifting with a tax avoidance
intent to minimize its tax
obligation and commits to bea responsible taxpayer in all
relevant countries.
As a starting point, our tax
department will conduct a
research study in view ofanalyzing local tax laws andreporting requirements invarious countries where
ONE may operate. This study
will help us prepare for ourcountry-to-country reporting
to local tax authorities inaccordance with the OECD’s
Base Erosion and Profit
Shifting project.

Global tax policies and aninternal control framework will
be developed by April 2018,
following our commitment
to comply with tax laws
and regulations in eachjurisdiction. ONE will therefore
formalize the approach it
will take to carry out its tax
planning strategy withoutcompromising the integrity of
its corporate governance andtax morality.

ONE is committed
to ensuring
compliance withlocal requirements
and working
towards tax
transparency anddisclosure.

Tax matters will be monitoredby our tax department at our
global headquarters which
also manages country andregional tax departments.
SUSTAINABILITY REPORT 2018

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DELIVERING SAFETY
AND SECURITY
In order to exceed ourcustomers’ expectations,the safe transportationof their cargo cannot becompromised. Safety is andwill remain our utmost priority.

5.1

SAFE TRANSPORTATION

It is our mission to provide
quality and reliable service
through constant safety in theoperation of our ships and thetransportation of the cargo.
In 2018, ONE is implementing
a series of initiatives toensure that customers canfully rely on us for the safe
transportation of their cargo toits destination:
1. ONE is developing an
Operational Standard
that focuses on shipsafety and navigation.
The Operational Standard
provides guidance onvarious scenarios suchas navigating in heavy
weather, cargo damage
and fire prevention. It also
provides guidance on
preventing and managing
OCEAN NETWORK EXPRESS (ONE)

Safety is and will remain ourutmost priority. It is our mission
to provide quality and reliable
service through constant safety
in the operation of our ships andthe transportation of the cargo.

personnel safety incidenceson ships.
2. ONE is developing a Vessel
Deployment Standard
that stipulates the safety
distance and navigationof ships in the proximity ofports and harbors.
3. ONE has a Vessel Quality
Standard (ONE-VQS) thatindicates our requirements
for ship safety & quality
management system.
ONE will conduct ship
inspections in accordance

5. Ships on voyage may
face other types of risks
such as piracy or risks
associated with navigating
to, from or through conflictzones. These threaten the
security of transportingcargo. ONE’s Operational
Standard provides specificinstructions on navigatingin various piracy areas andguidance on preventionof robberies, stowaways
as well as smuggling
firearms and drugs. As an

operator, ONE will also
cooperate with ship owners
that ONE is chartering
ships from to prepare theships in accordance to therequirements provided
by ONE.
From the launch of operationsin April 2018, ONE willcontinue to implement
operational safety and security
measures to keep the cargo
secured.

to the ONE-VQS. The firstinspection will take placein April 2018. Remedialactions are to be takenby ship owners basedon the inspections and
ONE will work together
with them to improve theships’ conditions to further
minimize the risks ofaccidents or detention.
4. ONE will also ensurethat all ships it operates
are certified under theInternational Safety
Management (ISM) Code.
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COMMITMENT TO
THE ENVIRONMENT
6.1

GHG ANDOTHER EMISSIONS

Carbon dioxide (CO2)emissions from shipping
currently represent
around 3% of the total
global greenhouse gas(GHG) emissions annually.
The industry as a wholecontributes to poor air
quality through emissionsof nitrogen oxides (NOx),sulphur oxides (SOx) andparticulate matter (PM).
From climate change todecreasing environmental
quality, the shipping industry
can contribute to a numberof adverse environmental
impacts if not properly
managed. As a container
shipping business, it is our
responsibility to ensure ouroperations are handled tominimize our environmental
impact. We also recognize
the business value of positiveenvironmental practices
in a globally changing
regulatory landscape andproviding ocean transport
services that have a low
OCEAN NETWORK EXPRESS (ONE)environmental burden forour customers. As such, we
commit to using best industry
practices and accelerating ourenvironmental response withnew technologies.
We will focus on an effective
approach to environmental
management as a key aspectof our business. We areestablishing an environmental
management system andaiming to be ISO14001 certified
in 2018. Personnel involvedin this process will receive
training to understand andimplement the requirements

to be certified. Thereafter wewill establish an environmental
committee to manage ourenvironmental impact.
As part of our environmental
management system we will
also define our environmental
goals and aspirations,developing key performanceindicators (KPIs) to track andmonitor our progress. Our
environmental performance
will be shared with our
stakeholders in our futuresustainability reports.

Reducing our GHG emissions
along with other air emissions
is ONE’s priority and an
integral part of our operations.
ONE aims to join the Clean
Cargo Working Group withthe objective to track andbenchmark our CO2 emission
performance and reportback to our customers andstakeholders in a standardized
industry-recognized format.
All three of our motherWe also plan toreduce our CO2
emissions bychartering ships
from ONE’s parent
companies that
also apply cuttingedge technology
to improve theships’ efficiency andreducing emissions.
companies are alreadymembers of this business-tobusiness leadership initiative
and ONE will pursue bestpractice on this front.
We also plan to reduce ourCO2 emissions by chartering
ships from ONE’s parent
companies that also apply
cutting-edge technology to
improve the ships’ efficiency
and reducing emissions.

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6.2

ENERGY EFFICIENCYIN SHIP OPERATION

Maximizing the energy
efficiency of our fleet not
only results in cost savings
that can be passed on to
our customers, but ensuresconservation of resources
such as fuel and a key
measure in achieving ouremission reductions.
ONE will develop acomprehensive datacollection system tomeasure and monitor
energy consumption
from both renewable andnon-renewable sources,
including our bunker fuelconsumption. As part of ourenergy efficiency measures,
we will also develop andimplement the International
Maritime Organization’s(IMO’s) Ship Energy Efficiency
Management Plan (SEEMP)
and will work with shipowners to monitor andimprove energy efficiency
going forward.
CASE STUDY:
Reducing fuel consumption
through IBIS PLUS
The IBIS PLUS system will

facilitate the optimizationand micromanagement ofship operations including
fuel consumption byconsolidating real time
data from ships. Thissystem will allow ONE topromptly decide on the mostappropriate steps to take.
We expect the use of the
IBIS PLUS system to assist us
in reducing our bunker fuelconsumption.

6.3

OIL AND MARINEPOLLUTANTSUBSTANCE SPILLSAt ONE we are also
prepared for the unexpected.
Unplanned events and lossof containment can result insome of the most significant
environmental impacts in our
industry. To address this risk,
our marine safety & quality
team developed a Crisis
Management Manual that sets
out the appropriate response
procedures in the event ofcargo trouble or maritime
accidents such as spills, ship
collisions, ship damage, engine
trouble, cargo damage andtyphoons. In addition, themanual provides clear roles andresponsibilities including ONE
CEO and reporting procedures
when an accident occurs.
In December 2017, ourregional managers went
through a crisis management
training to ensure theemergency preparedness of
our organization. As a next
step, our regional managers
will then pass along their

OCEAN NETWORK EXPRESS (ONE)knowledge and train their own
teams in their respective local
operations in 2018.
Large-scale maritime
accident response training
will be conducted at least
once a year to ensure theeffectiveness of the Crisis
Management Manual andbuild capabilities amongst
employees, ensuring our staff
are equipped to respond tomaritime accidents promptly
and effectively.

6.4

BALLAST WATERMANAGEMENT

Taking on and discharging
ballast water during voyage
can provide a pathway forspecies transfer between
different ecosystems. This
could result in the releaseof harmful invasive and nonnative algae, plants or animals
into new environments.

force from September 2017.
The Convention requires
ships in international traffic
to implement a Ballast Waterand Sediments Management
Plan, to carry a Ballast Water
Record Book, and to apply
ballast water management
procedures to meet thestandards set.
Our operating fleet at
this stage comprisesof approximately 220
ships. These ships arechartered from our parent
companies and ship owners
who are compliant withenvironmental regulations
and committed to reducing
their environmental footprint.
Our fleet management teamwill work with ship owners
to select the appropriate
ballast water treatment
system and establish
operational guidelines toprotect biodiversity duringtransportation.

The IMO adopted the Ballast
Water Management (BWM)
Convention in 2004, with
its provisions entering into
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ONE PROTECTING
AND EMPOWERINGPEOPLE
7.1

MANAGEMENTAPPROACH

As a service-based company
that intends to exceed
customers’ expectations, ourpeople are our most precious
asset to deliver quality
service. Our core values“Lean” and “Agile” define thecharacteristics of our team.
Our organization is structured
around three core teams- Corporate & Innovation,
Product & Network as wellas Marketing & Commercial.
This structure will allow
swift decision-making andbusiness efficiency at ONE.

benefits and collating
employee data.
ONE has also developed
an Code of Conduct thataligns our employees’
behaviour and decisions
making process with ourcompany values. Having a
Code of Conduct declares
ONE’s position on a setof standards, values
and principles. By 2018,
all employees will be
communicated about theCode of Conduct.

7.2
Our people are ourmost precious asset
to deliver quality
service. Our corevalues “Lean” and“Agile” define thecharacteristics of
our team.

RECRUITMENT, TRAINING
AND DEVELOPMENT
Creating a lean and agile
team extends beyond
recruiting the right people
but also providing quality
training and education
programs that maximize
people’s potential to perform
and take pride in their work.
We emphasize on providing
a continuous learning
environment that empowers
employees to reach theirfullest potential. In 2018,
ONE will develop systematictraining programs customized
to each level of employees
from junior to middle
management focusing
on work-related courses,
specific technical skills andsoft skill such as languages
and people management.
Learning does not stop forour senior employees as
well, courses on leadershipand business management
skills will be provided.

In 2018, employees fromthe shipping container
business units of the threeparent companies will cometogether as ONE employees.
ONE particularly focuses its
efforts on developing theright capabilities and building
a culture that supports
innovation and efficiency.
Our Human Resource Policy
guides us on recruitment,
managing employment
relationships that includes
OCEAN NETWORK EXPRESS (ONE)SUSTAINABILITY REPORT 2018

OCEAN NETWORK EXPRESS PTE. LTD.

7 Straits View #16-01 Marina One East Tower Singapore 018936
E. general.inquiry@one-line.com