At Nor-Shipping in Oslo yesterday, Dutch banks ABN AMRO, ING Bank and NIBC, together with the Scandinavian DNB, announced that they are all introducing responsible ship recycling standards (RSRS) for their ship financing. The banks took the opportunity of making this announcement during the biannual industry gathering in order to raise awareness with the intention of including more banks into the initiative. The Norwegian fund, KLP, who in 2016 commissioned a report by the International Law and Policy Institute on shipbreaking, had also already taken a stance to reject beaching practices.
A collective move to include ship recycling conditions on loans by leading banks and financial institutions with large shipping portfolios may force change in shipowners’ recycling preferences.
“We welcome the leading role taken by the banks to ensure a departure from the unnecessarily dirty and dangerous practice of beaching, and expect that investors and clients of shipping that are increasingly pushing for higher standards for ship recycling will join the initiative,” said Ingvild Jenssen, founder and director of the NGO Shipbreaking Platform.