German bank KfW IPEX-Bank has become the first German bank to join the initiative Responsible Ship Recycling Standards (RSRS), which aims to include scrapping clauses in accordance with international standards into loan agreements.
The clauses also include an obligation for shipping companies to ensure that all ships carry a “green passport” that provides an overview of all the hazardous materials on board.
“Joining this global initiative is another significant step for us in further strengthening the sustainability aspect in the maritime industry together with our clients,” said Andreas Ufer, Member of the Management Board of KfW IPEX-Bank. “This is an important way to raise awareness about the significance of sustainable ship recycling. We view the RSRS initiative as a long-term project that will continue to develop and welcome more and more members around the world,” Ufer added.
RSRS was jointly established by ABN Amro, ING and NIBC in May 2017. The initiative now has eight members worldwide, with Nordea, DNB, SEB and Export Credit Norway having joined the three founding banks.
The aim of the RSRS initiative is for shipping companies to observe minimum standards of occupational safety and environmental protection when scrapping their ships, and therefore to view scrapping as part of their own value-added chains.