Global mining company Anglo American has teamed up with RightShip and South Pole to offset the carbon emissions for a shipment of iron ore from South Africa to Europe on a baby cape vessel.
Anglo American, who has set a goal for a 30% reduction in net GHG emissions by 2030, was offered to offset the emissions by the shipowner as part of the charter party agreement.
The voyage from Saldanah Bay, South Africa to Europe equates to 5,880 tonnes of CO2 equivalent, and is the first bulk voyage reported to be entirely carbon offset.
RightShip’s GHG Rating was used to calculate the emissions from the voyage, and the carbon credits purchased to offset the journey will support South Pole’s Gunung Salak Geothermal Energy project in Indonesia. The upgrade project enables the plant to generate more clean electricity from the same source of geothermal steam.
Peter Lye, head of shipping at Anglo American, commented: “We’ve used RightShip’s GHG Rating for many years as a core element of our safety and environmental sustainability practices. Anglo American has set ambitious goals for its overall sustainability agenda including carbon emissions and a verified tool like RightShip’s GHG Rating is a key part of monitoring and meeting those targets.
“When the shipowner suggested boosting the GHG Rating with carbon offsetting, ensuring that the entire journey had a carbon neutral environmental outcome in line with our environmental policies, we were happy to agree.”
Kris Fumberger, sustainability manager at RightShip, added: “As the calls from industry grow louder for dramatic action to reduce carbon emissions, more and more companies are seeing the need to account for the carbon emissions along their supply chains.”
Speaking with Splash today, Fumberger said RightShip was increasingly seeing shipowners and charterers approach the company to facilitate discussions about emissions reduction and offsetting.
“In 2017 Incitec Pivot emerged as leaders in this space by offsetting their entire supply chain emissions over a 24 month period, and with this particular journey Anglo American are signalling the next evolution of the low-carbon movement – and our indicators are that where they have led, others will follow,” Fumberger said.
“What’s good for the environment is good for business, and shipowners and charterers alike are beginning to understand that taking action to reduce emissions and overall supply chain impact can give them an edge in a competitive charter market,” he concluded.