MESSAGE FROM MANAGEMENT
Dear Stakeholders,
I am pleased to present ONE’s sixth annual sustainability report, covering our performance and progress. 2022 has been a year of growth and progress for ONE. As the effects of the pandemic subside and the global economy normalises, we have been presented with unprecedented new challenges within the global environment, including rising geopolitical tensions, as well as a continued emphasis on strengthening resilience of supply chains. I am proud to say ONE has done well to navigate these challenges, remaining lean and agile, adapting quickly to a fast-changing environment.
Core to our strategy at ONE, is our focus on operational excellence in our processes and remaining at the forefront of innovation through our drive towards digitalisation to transform our business and improve efficiency. Our all-in-one mobile application platform provides our customers with convenient access to critical information at their fingertips, such as their shipment status and updates. Continued enhancements to the platform in 2022 have also improved user experience. This has not only elevated our services and the customer experience immensely, but also aided in our efforts towards decarbonisation. Digitalisation also represents an opportunity for us to improve the efficiency of our staff and their wellbeing. We are able to ensure we continue to develop their skills as they progress in terms of their professional development.
Being in an industry that is a major source of global emissions, taking climate action continues to remain front and centre of the shipping sustainability agenda. As we strive to become a global leader in sustainable shipping, we established a new Corporate Strategy & Sustainability department in July 2022, which sits within the Corporate & Innovation Division. The Corporate Strategy & Sustainability department has two units, the strategy and green unit, which together help various teams or departments in ONE to integrate green initiatives into our mid-to long-term business strategy and implement key programmes. Through this, we are able to accelerate our efforts and the approach outlined in our decarbonisation roadmap, prioritising initiatives under our five key focus areas, spanning carbon management, operational efficiency, green investment, alternative fuels and ecosystem building. Some key areas we have our eyes on include reducing our GHG emissions, investing in greener initiatives, protecting marine life and ensuring that we comply with relevant industry regulations and collaborating with our stakeholders. We have participated in the Rotterdam-Singapore green corridor and our technical department is currently working closely with the shipyard and class society on the design and blueprints of our first zero emission. With these designs and blueprints, we will be able to obtain the “AiP (Approval in Principle)”. These zero emission vessels can be retrofitted for the use of ammonia and methanol as fuel, carbon capture and storage. We expect to receive these vessels in 2025. These various initiatives will no doubt serve as a catalyst to propel us on our journey towards decarbonisation and our ambition to achieve net zero by 2050.
Beyond our own operations, we firmly believe that the decarbonisation of the shipping needs industry-wide collaboration from all industry players and stakeholders. To facilitate our customer’s decarbonisation efforts, we developed an in-house carbon calculator that adopts industry recognised standards and aims to help customers understand their carbon footprint. To that end, we also provide avenues for customers to collaborate and decarbonise through our key initiatives in green procurement. Some of the initiatives include setting up a carbon credit system and working out the assurance by a third-party verifier that we are aiming to launch at the end of 2023. These efforts and our detailed and comprehensive approach towards decarbonisation through these initiatives and our interim targets will ensure we remain on track in achieving our 2050 goals.
We also aim to contribute to international efforts and partner closely with other carriers and regulators to develop ground-breaking technology that can be shared throughout the industry. In 2022, in line with the recommendations of the International Advisory Panel on Maritime decarbonisation, we jointly founded the Global Centre for Maritime Decarbonisation with six other industry players and established a fund dedicated to researching decarbonisation technology in the maritime sector. An area of key interest is biofuel, which although having demonstrated potential as a low carbon fuel, still presents challenges related to availability and quality. We are working with partners to establish an assurance framework to shape standards for the use of biofuels for shipping. Our biofuel pilot project is in its third trial, making good progress towards establishing a reliable biofuel supply chain. Besides biofuels, we are also exploring emerging alternative solutions such as ammonia, methanol and methane.
The progress we have made in sustainability and the successful navigation of the recent pandemic are, without a doubt, due to the dedication, ingenuity and efforts of all our employees. It is evident that our people are our greatest assets, and we seek to provide value not only to our customers, but to all the lives and livelihood we touch across our value chain. The safety and wellbeing of all our employees remains a foundational essential priority for ONE. We have stepped up our efforts to not only focus on safety, but develop initiatives that care for our employee’s overall wellbeing. This includes allowing flexible working arrangements and putting in place measures to facilitate close working relationships between the management and our employees. These close relationships in turn create open channels for employees to provide transparent and honest feedback.
For our employees to reach their full potential, we are proud to announce the launch of the ONE Academy, our group-wide talent management and people development initiative. The ONE Academy is our marquee development program which sets the strategic direction and consolidates our training and development initiatives under four key pillars. These four pillars will help to engage and empower our employees and cultivate a sense of belonging. These programmes will ensure our people are well taken care of and that ONE’s talent pipeline remains future-ready and resilient.
Clear, consistent and transparent ethical business conduct is a fundamental and indispensable bedrock at ONE. We conduct our affairs with the highest standards of corporate governance set out in our business credo in full compliance with all regulations, with zero tolerance towards bribery, corruption or any form of anti-trust and competitive activity. In a move to further deter potential adverse practices, we established the Anti-Bribery Risk Assessment Guidelines to assess and mitigate the risk of bribes being paid through third parties, including suppliers and business partners. These guidelines also include a comprehensive process to screen third parties. As we move ahead towards digitalisation, we have increased our attention to cybersecurity, safeguarding the interests of all stakeholders.
Looking ahead, I am excited about our prospects. The challenges of geopolitical tension and rising inflation remain. However, I am confident that the foundations we have built and our unwavering commitment towards sustainability have positioned us to be agile, resilient and create value for our stakeholders over the long-term. We will continue to drive innovation and collaborate closely with all our core business partners, to achieve our vision of a sustainable shipping industry.
This report is a valuable part of our accountability and transparency to our stakeholders. Through it we reflect on our performance and progress, as we strive to drive continuous improvement across our business. I would like to thank all employees, customers and partners for your continued support and trust in ONE. Together, we continue to chart a path toward a more sustainable future.
Sincerely,
Jeremy Nixon
Chief Executive Officer
VISION AND COMMITMENT
While shipping is universally recognized as one of the most efficient means of commercial transport, the industry still has significant impacts on the environment and society that need to be managed. This is compounded by the rise of international trade driving continued growth in maritime traffic, which is expected to translate to a nearly threefold increase in Greenhouse Gas (GHG) emissions by 2050, according to estimations by the International Maritime Organization (IMO).
As the sixth largest container carrier in the world by fleet size, ONE recognizes the role we can play to mitigate such impacts and advance sustainability efforts in the industry. In 2019, we developed our sustainability strategy to focus our efforts around four areas of priority:
1. Environment
2. Social
3. Governance
4. Operational Excellence
These priorities are based on the material sustainability topics that drive long-term value for our business and our stakeholders. Underpinning our priorities, is our Business Credo, which forms the core of ONE’s commitment to embedding responsible business practices.
ONE recognizes our role in providing safe and reliable services while meeting our customers’ expectations and maintaining their trust. At the helm of our brand, ONE’s Business Credo enshrines eight principles reflecting how we want to do business.
ONE’s Business Credo
1. Good-faith business activities
2. Environmental and safety initiatives
3. Enhanced security
4. Compliance with laws and ordinances, respect for human rights
5. Exclusion of antisocial activities
6. Disclosure of information and communication with society
7. Social contribution activities
8. Preservation of favourable work environments
ONE’S COMMITMENT TO THE UNITED NATIONS GLOBAL COMPACT (UNGC) PRINCIPLES
With our broad business activities spanning across 120 countries around the world, ONE is inherently confronted with worldwide ethics, human rights, labour and environmental issues, be it from a direct or an indirect manner. In turn, to responsibly mitigate the impacts of our operations on the global environment, ONE has sought to become a member of the 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 and has pledged to adopt and promote sustainable and responsible business practices. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption.
Sustainable Development Goals (SDGs)
The Sustainable Development Goals are a suite of 17 actionable guidelines for all nations to adhere regardless of their income status, for the promotion of global prosperity and environmental protection. The initiative accentuates the importance of counteracting poverty which is perceived as a barrier to economic growth and emphasises on the tackling of social and environmental issues, as the precursors of the problem.
As a corporate member of Global Compact Network Singapore, ONE commits to the SDGs via the incorporation of the recommended best practices to its business strategies and operations.
While our business activities touch on all 17 interrelated SDGs, directly or indirectly, we have identified four priority SDGs (as shown below) which we believe we can have the biggest impact on through our core business activities as well as through partnering with others. These SDGs are of greatest relevance and alignment to ONE’s business and sustainability priorities, representing opportunities where we can best contribute to sustainable development. In addition, we identified SDGs 4, 5, 8, 12, 16 and 17 as also relevant to ONE’s overall sustainability agenda, constituting secondary focus areas where ONE’s activities can positively contribute to.
Green Vision, Mission and Targets
In April 2022, ONE announced our new Green Strategy. ONE’s Green Strategy sits at the top of our management agenda, as does our commitment to achieve carbon neutrality by 2050, thereby playing an important role in global environmental conservation.
Green Vision
To be a global leader in the realization of environmentally sustainable shipping
Green MISSION
We will achieve carbon net-zero shipping in order to protect our planet via lean and agile best practices and open collaboration
Environmental Target
Environmental Management System (EMS)
The environmental management system was first established in 2018 to serve as a the backbone of ONE's environmental protection plan, where all employees were guided and trained. Additional training was also conducted for management team and ISO project team members.
ISO 14001 is an international EMS standard set by the International Organization for Standardization (ISO). Requirements for the EMS are stipulated in ISO 14001.
We have received our ISO14001:2015 certificate on 05 Nov 2018 from ClassNK. The validity of this certificate has been renewed until 17 Oct 2024.
Click here to download copy (PDF).
Achievements & Partnerships
Since its establishment in 2018, ONE has clinch several awards and partnerships in her journey towards decarbonisation. We believe in close collaboration and proactive partnerships in order to deliver our sustainability commitments. As such, ONE maintains strong relationships with industry partners, associations, government and business partners.
Sustainability Awards and Certifications
Memberships & Associations
Preservation/ Biodiversity
(1) Oil Spills Prevention
At ONE we are also prepared for the unexpected. Unplanned events and loss of containment can result in some 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 of cargo trouble or maritime accidents such as spills, ship collisions, ship damage, engine trouble, cargo damage and typhoons. In addition, the manual provides clear roles and responsibilities including CEO and reporting procedures when an accident occurs. Our regional managers went through a crisis management training to ensure the emergency preparedness of our organization. Large-scale maritime accident response training will be conducted at least once a year to ensure the effectiveness of the Crisis Management Manual and build capabilities amongst employees, ensuring our staff are equipped to respond to maritime accidents promptly and effectively.
(2) Ballast Water Management
Taking on and discharging ballast water during voyage can provide a pathway for species transfer between different ecosystems. This could result in the release of harmful invasive and non-native algae, plants or animals into new environments. The IMO adopted the Ballast Water Management (BWM) Convention in 2004, with its provisions entering into force from September 2017. The Convention requires ships in international traffic to implement a Ballast Water and Sediments Management Plan, to carry a Ballast Water Record Book, and to apply ballast water management procedures to meet the standards set. Our operating fleet at this stage comprises of more than 200 ships. These ships are chartered from our parent companies and ship owners who are compliant with environmental regulations and committed to reducing their environmental footprint. Our fleet management team will work with ship owners to select the appropriate ballast water treatment system and establish operational guidelines to protect biodiversity during transportation.
(3) Marine Species Protection
Plant-A-Coral, Seed- A-Reef
As part of ONE's effort to conserve the marine biodiversity, we have worked with The Garden City Fund's Plant-A-Coral, Seed-A-Reef programme to support the habitat enhance efforts at Singapore Sister's islands Marine Park through ONE's donation. The main objective is to strengthen our marine biodiversity by providing areas for marine organisms to grow and reef fish to seek refuge. With this donation, ONE want to raise awareness of the exisitng issue on the environment and hope like minded individuals can be more environemntally aware on how we can play a part in preserving our biodiviesity and environment.
Key Initiatives
We envision ONE to be a global leader in the realisation of environmentally sustainable shipping and green strategy is a top of our management agenda. We have also placed great emphasis in our commitment to achieve carbon neutrality by 2050, as well as global environmental conservation.
Besides our pledge to become carbon neutral, ONE recognises the need to make continuous investment in green assets and technologies while taking appropriate actions to meet our target.
We must all work differently and put sustainability at the heart of our business in order to ensure the long term sustainability of ONE and as such, we have identified seven key initiatives:
Decarbonisation Initiatives
Investment
Fuels
Management
Efficiency
Ecosystem Building
Environmental Initiatives
Recycling
Conservation
Decarbonisation Initiatives
Investment
Green investments are crucial for incremental efficiency increase and innovative technologies to achieve net-zero emissions. You may also be aware of our fleet modifications to enhance fuel performance, such as the attachment of the energy-saving propeller boss cap and modification of the bulbous bow. These are forms of technologies that enhance our efficiency incrementally, alongside frequent maintenance of our existing vessels is necessary to keep them in best conditions.
Beyond these technologies, we are also looking into various forms of green investments such as talents, who have the operational knowledge and expertise, particularly for zero-emission vessels, as well as hardwares, where we will engage in the replacement of the older fleet with new and more fuel-efficient vessels. By 2030, ONE will deploy its first alternative fuel ships which are able to achieve both net zero GHG emissions while increasing vessel capacity simultaneously.
Fuels
Presently, there is no clear answer to which alternative fuel can help achieve net-zero for the maritime industry and each alternative fuel is in different stages of development and has different characteristics. ONE has conducted several biofuel trials in the past few years and while we recognize the supply constraints for scaling up biofuel usage, biofuels are still useful as a support fuel in specific cases such as pilot fuel for green ammonia and green methanol.
While we do not eliminate any alternative fuels currently, ONE plans to reduce reliance and replace existing conventional fuel vessels by 2050. ONE will thus prioritise R&D and investments for green ammonia, green methanol and green methane related vessels and technologies.
Management
We have highlighted three main actions for carbon management.
Firstly, we have introduced an internal carbon pricing system on a trial basis since 2021 and we intend to use it continuously as one of the indicators to guide investment decisions.
Secondly, we will develop low-emissions service offerings for our customers using low-carbon fuels. At present, we are also preparing a carbon calculator to measure the emissions from our services to enable our customers to identify their carbon footprint accurately.
Lastly, we are studying green-related technologies such as carbon capture and storage. This will be conducted in tandem with regulatory authorities in each country.
Efficiency
On top of existing methods, such as improving vessel size, vessel speed reduction and the use of inhouse fleet monitoring systems, ONE recognise the importance of improving fuel efficiency through other programs. We have made several efforts to pursue operational efficiency in order to reduce our greenhouse gas emissions and this includes optimising product performance, such as the continuous review of vessel proforma, improving asset portfolio through the modification for safe bunker and loadability such as the use of antifouling paint or Alternative Maritime Power (AMP) retrofit.
Besides new technology and efficiency programs, we will also continue to evaluate and invest in digitalisation tools and initiatives which allows improvement of our operational efficiency and to achieve fuel consumption savings. Existing milestones such as the Digitalisation Strategy Roadmap have commenced since 2020 and we are looking into investing in future technologies to continually improve our operational efficiency and reduce carbon emissions.
Ecosystem Building
Environmental Initiatives
Recycling
We believe that ship recycling is critical to ensure sustainable vessel operations from start to end of life. As we plan to own vessels in the near future, we will audit dismantling sites used by third party organisations to minimise the damage and emissions associated with ship breaking and ship recycling. Additionally, this will ensure the recovery of scrap metal, and the reduction of both greenhouse gas emissions and pollution to the environment.
conservation
Besides ship recycling, ONE’s new green strategy also places emphasis on environmental conservation. As frequent users of the ocean, we also play the role of a custodian to the ocean. ONE aims to prevent ecological damage and proactively lead initiatives to help regenerate the ecosystem. In order to meet this objective, we plan to participate in ecological conservation programs, such as the conservation of marine life, and ensure zero significant spills for all vessels.
Furthermore, we aim to establish our Environment Fund in 2022 to finance environmental related activities which will support long-term efforts towards material environmental themes and serve as a platform to educate employees and stakeholders on our environment.
Operational efficiency
Ocean Network express aims to deliver goods safely, timely while priotitising environmental protection and energy conservation. In order to achieve this mission, ONE place great emphasis in reducing our greenhouse gas (GHG) emissions and we have been making progress since our establishment in 2018.
To work towards our targets, we have implemented initiatives aimed at improving our operational and fleet fuel efficiency to reduce energy consumption and CO2 emissions.
Since 2020, we have been introducing measure to improve our fleet fuel efficiency. These include modification of bulbous bow to reduce wave resistance, replacement with high efficiency propellers and attachment of special propeller boss cap. These measures are expected to reduce up to 10% of emission from fuel use per vessel. We will continue to implement these modifications progressively across our fleet. Other measures taken to improve efficiency in our service are as follows:
(1) Improving operational efficiency
(2) Enhancing fleet fuel efficiency
GHG Footprint
As ONE envisions to be a global leader in the realization of environmentally sustainable shipping, we place great importance in measuring and tracking our environmental footprint to achieve our net-zero GHG emissions target in 2050.
In line with our emission reduction targets, we seek to minimise the impacts of our operations and implement initiatives to work towards our carbon reduction targets. Our efforts to reduce emissions from our fleet through operational and fuel efficiency improvements have yielded a 14% reduction in emissions intensity from 2018 to 2022. We expect even greater reductions in the future as we continue to implement and develop green solutions for our operations.
Scope 1 Emissions Intensity (grams of CO2 Equivalent per TEU-Km, gCO2e/TEU-Km)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 |
| Emission Intensity | 48.36 | 46.79 | 43.67 | 44.81 | 41.50 |
Emission intensities from 2018-2020 were calculated based on voyage completion basis in line with the Clean Cargo Methodology while emission intensity from 2021 onwards have been calculated based on voyage leg completion basis. Both methods are calculated based on the calendar year. ONE’s emission intensity based on the Clean Cargo’s methodology is 45.18 gCO₂/TEU-km in 2021 and 41.64 gCO₂/TEU-km in 2022.
Scope 1 Emission from Fuel Consumption (Tonnes of CO2 equivalent, TCO2e)
ONE's Scope 1 emissions are emissions arising from our ocean-going vessels.
| Oil Type (tCO2e) | 2018 | 2019 | 2020 | 2021 | 2022 |
| Fuel Oil | 9,191,451 | 12,163,491 | 10,638,466 | 9,946,604 | 8,614,645 |
| Gas Oil | 898,882 | 1,284,634 | 949,117 | 981,151 | 774,152 |
| Total | 10,090,333 | 13,448,125 | 11,587,582 | 10,927,754 | 9,388,797 |
Scope 2 Emissions from Electricity Consumption (Tonnes of CO2 Equivalent, TCO2e)
Previously, ONE had only reported Scope 2 emissions at GHQ level and in 2021, we have since expanded its Scope 2 reporting boundary to all offices globally and OPS consumption under an operational control approach to uphold the principles of GHG reporting stated by the GHG Protocol. We have also started reporting our emissions under the location-based and market-based approach in 2021.
| Year | GHQ | Other Offices and OPS | Total |
| 2018 | 161 | No Data | 161 |
| 2019 | 158 | No Data | 158 |
| 2020 | 140 | No Data | 140 |
| 2021 (market-based) | 143 | 10,284 | 10,427 |
| 2021 (location-based) | 143 | 10,333 | 10,476 |
| 2022 (market-based) | 218 | 10,381 | 10,599 |
| 2022 (location-based) | 218 | 10,330 | 10,549 |
Note:
Scope 2 emissions from reefers in CY2021 were excluded due to a lack of accurate data during the reporting period. Moving forward, ONE aims to account for all Scope 2 emissions under our operational control.
The amount in 2021 has been restated due to improved data collection and refined methodologies in 2022
About ONE Eco Calculator & Methodology
At ONE we believe that reaching decarbonisation is not an individual effort but the effort from across the industry. To encourage our customers to measure and manage their cargo emissions, we would like to introduce ONE Eco Calculator. ONE Eco Calculator allows you to calculate the emissions of your container transport from the start to end of the journey.
ONE Eco Calculator follows industry recognised methodology for their inland and ocean-going transportation. In addition, ONE’s ocean-going carbon emissions data are verified by ClassNK via the Clean Cargo methodology.
Inland
For our inland transportation, carbon dioxide emissions are calculated according to the GLEC Framework.
Ocean-going
For our ocean-going transportation, carbon dioxide emissions are calculated according to the methodology developed by the Clean Cargo. However, full utilization capacity is used for this calculation.
Safety
Marine Accident Report System (MARS)
ONE launches our Marine Accident Report System (MARS), with aims of processing accident cases appropriately and swiftly, analysing accident trends, and formulating effective prevention measures.
We are taking various steps aimed at eliminating accidents, by using this system to analyse accident details and trends and the deeply explore root cause of accidents. By creating a database of accident information, moreover, we are able to share information with our worldwide network in a timely manner and establish optimal safety measures.
Crisis Management
ONE has created an emergency response network based on five overseas regions, allocating Marine Super Intendent (MSI) to regional vessel operators, which aims to be ready for maritime accidents and problems around the world.
Use of Downtime to Measure Safety
We use the time that ships are stopped due to accidents or problems as a means of measuring the degree to which we have achieved safe ship operation. Our sea and land operations work together to bring us closer to the target of 'zero' downtime.
Pre-embarkation Briefing
Prior to embarkation, vessel operators and Marine Safety & Quality department conduct a pre-embarkation briefing for captains. This is an opportunity to explain the Company’s basic policies on safety, as well as to provide the latest specific information and instruction through safety management manuals and related written procedures adopted by each management company.
Large-Scale Accident Drill
In the unfortunate event of an accident, timely and accurate responses are crucial. To ensure such responses, we regularly conduct drill assuming “worst-case scenarios involving ships under our operation.” This drill involves practical training and cover everything from assembling an early emergency response team to establishing an accident response headquarters and setting up information-sharing systems within it, as well as establishing systems for communicating with overseas parties.
Navigation Policy (Anti-piracy activity)
The number of piracy incidents off the coast of Somalia and the Gulf of Aden has remained low in recent years due to countermeasures undertaken by various national troops, including Japan’s Maritime Self-Defence Force. Nevertheless, the situation could easily be reversed if the international community weakens its efforts. Moreover, piracy-related losses still occur frequently in Gulf of Guinea (West Africa) and in Southeast Asia. Accordingly, conditions for merchant ship navigation remain unpredictable.
Off the coast of Somalia and in the Gulf of Aden, we endeavour as much as possible to receive protection from Japan’s Maritime Self-Defence Force and navies of various countries. For our own self-defence, we do everything possible to ensure the safety of crew as top priority. This includes avoiding problematic areas, maintaining at high speeds, using high-pressure water nozzle, installing razor wire to prevent unauthorized embarkation, and wearing bullet-proof vests and helmets.
PDCA cycle for Safety
Marine Safety & Quality department publish up-to-date safety information to share accident case and good practice from our operating vessels. Lessons learned from the accidents, and environmental measures are notified to the shipowners, ship management companies, and all operational vessels through the monthly newsletter, and information is shared between onshore and offshore personnel.
Vessel Operation – day to day Monitoring
Global Vessel Operations conduct day-to-day operation meeting to check navigate risks timely and discuss measures against on-going issues if there is. ONE global head quarter has vessel operation room which monitor operating vessels by tracking vessel’s position together with the latest weather condition.
Safety Campaign
ONE periodically conducts safety enhancement campaigns to foster a corporate culture that embodies safety. Personnel engaged in onshore and offshore operations exchange opinions and deepen their mutual understanding about a main theme that is set based on current priorities. During the campaign period, Executive officers and management involving in the campaign will be conducting vessel visits to emphasize the importance of navigation safety with the captain & crews and discuss what measures can be taken on board to achieve this goal. ONE also creates opportunities for further discussion with representatives from shipowners and ship-management companies to get its safety activities to the frontline of vessel operations.
QUALITY
QUALITY POLICY
At Ocean Network Express (ONE), we create value for our stakeholders and society at large. Our operating vessels, being the frontline of our service, is the key element to achieving this.
We continuously monitor condition of fleet vessels considering both aspects of hardware and software. We then try to improve the conditions together with owners in order to pro-actively prevent accidents or detentions. We also endeavour to ensure that requirements of ONE for saving of bunker and other activities are properly understood and complied by those on board.
We are committed to comply with applicable requirements and continually improve the effectiveness of the Quality Management System.
This is our commitment, and together we shall achieve this.
Established in Nov. 2020
Revised in Mar. 2021
By Chief Executive Officer
COMMITMENT TO MAINTAINING Vessel QUALITY
Safety and Quality are and will remain our utmost priority.
It is our mission to provide quality and reliable service by incorporating highest standards of safety in the operation of our vessels and the transportation of cargo.
We understand that only with good safety and quality standard of our vessels, can we instil trust in our customers and achieve customer satisfaction.
In April 2018, we established ONE VESSEL QUALITY STANDARD (ONE-VQS) SYSTEM to fulfil this objective.
Vessels chartered by ONE undergo periodic Vessel Quality Standard (VQS) inspections to enable us in monitoring the condition of fleet vessels with respect to both hardware and software. We then try to improve the conditions on board together with owners, so as to meet our requirements. These inspections are carried out by third-party survey companies, in close collaboration with our Marine Safety & Quality department.
We established our Quality Management System (ISO 9001:2015 certified) in 2020. All related personnel have been trained to familiarise with related processes to ensure quality is not compromised. The quality policy is readily made available to all interested parties and such information can be passed down easily so that requirements of the standard are complied with.
QUALITY MANAGEMENT SYSTEM (ISO 9001:2015)
ISO 9001 is an international Quality Management System (QMS) standard set by the International Organization for Standardization (ISO). Requirements for the QMS are stipulated in ISO 9001.
In 2020, the top management decided to adopt a QMS, built upon the basis of our internal vessel quality system, ONE-VQS. The QMS serves to implement our work processes smoothly and systematically, furthermore, strengthen both safety and quality aspects of our fleet.
We have received our ISO 9001:2015 certificate in March 2021 from ClassNK.
Click here to download copy (PDF).
ONE VESSEL QUALITY STANDARD (ONE-VQS) SYSTEM
ONE has established ONE-VQS, a rigorous, self-imposed safe ship management system, to better discharge our responsibilities with respect to safe navigation, safe cargo operation, protection of environment and achieving customer satisfaction. The standard covers more than 260 items, including international treaties, international quality standards, measures to prevent accidents from recurring, and requirements from customers. ONE-VQS has been applied to all our operational vessels, has been reviewed and continuously improved based on the QMS.
Human Resources
Human Rights
As a member of Global Compact Network Singapore, we support universal principles regarding human rights and labour standards. Our commitment to human rights is expressed through our Credo and Code of Conduct. We will work to ensure that we do not contribute to human rights violations as a result of our global business activities. As a trusted employer, we will also ensure that all our employees are treated in a manner consistent with the applicable laws and labour conventions.
We will work to ensure that we do not contribute to human rights violations as a result of our global business activities.
A compliance committee has been established in 2018 whose responsibility is to ensure that ONE respects human rights throughout its operations and will integrate human-rights considerations into its existing management systems.
CSR Activities
ONE actively organises and participates in the various CSR activities. Please find below a listing of some recent activities of interest.
JUN 2023 - ONE Terminal Run at Gdynia, Poland Returns for the 3rd Year
APR 2023- Sustainability meets Education in ONE Thailand’s Container Library
MAR 2023 - Light’s Out at ONE HK Office in Support of Earth Hour 2023
FEB 2023 - ONE collaborates with PSA to deliver an immersive educational experience
DEC 2022 - ONE Brazil’s Heartbike rides into the hearts of 40 children beneficiaries
NOV 2022 - ONE East Asia Joins Dress Pink Day to Support Breast Cancer Patients
Corporate Governance
Corporate Governance Structure
ONE was born from the integration of the container shipping businesses of three companies - Kawasaki Kisen Kaisha, Ltd., Mitsui O.S.K. Lines, Ltd., and Nippon Yusen Kabushiki Kaisha. ONE Holding Company, based in Japan, oversees the governance of operational global headquarters based in Singapore (GHQ). With GHQ, ONE’s global presence through regional offices, branches, subsidiaries and joint-ventures will span across more than 120 countries and GHQ oversees the governance with delegation to regional headquarter(RHQ) based in Hong Kong, Singapore, London, U.S.A and Brazil.
Supply chain Management Policy
Ocean Network Express (ONE) recognizes the importance in establishing mutual trust and harmony with our business partners, who are essential to our business network. To accomplish a high service level, we aim to serve our customers with enhanced efficiency, compliance and integrity. We request the agreement and observance of "ONE’s Supply Chain Management Guideline” to support our efforts of fulfilling ONE's corporate social responsibility (CSR) project.
>> For more details, please visit here.
Tax principle
As tax laws and regulations are evolving and becoming more complex, the risk of unintentional compliance breaches is significantly increasing.
ONE is committed to ensuring compliance with local requirements and working towards tax transparency and disclosure.
ONE does not condone the behaviour of profit shifting with a tax avoidance intent to minimize its tax obligation and commits to be a responsible taxpayer in all relevant countries. As a starting point, our tax department will conduct a research study in view of analysing local tax laws and reporting requirements in various countries where ONE may operate. This study will help us prepare for our country-to-country reporting to local tax authorities in accordance with the OECD’s Base Erosion and Profit Shifting project. Global tax policies and an internal control framework will be developed by April 2018, following our commitment to comply with tax laws and regulations in each jurisdiction. ONE will therefore formalize the approach it will take to carry out its tax planning strategy without compromising the integrity of its corporate governance and tax morality. Tax matters will be monitored by our tax department at our global headquarters which also manages country and regional tax departments
Compliance Framework
Reliability is one of ONE’s core values and we are committed to carry out our business in a reliable manner. All directors, managers and employees adhere to ONE’s Business Credo and Code of Conduct which includes our pledge to work in accordance with the law and social ordinances as an absolute obedience.
The Compliance Committee, held twice a year, establishes ONE’s compliance framework and is the driver for solidifying the culture of compliance in ONE Group chaired by Chief Compliance Officer and attended by Directors, senior management, and department heads. It determines actions required to establish, monitor and further enhance ONE’s compliance initiatives. The Committee is designed and run for each department in charge to take responsibility of its compliance including the monitoring and work as one team to tackle challenges as an organization.
A global hotline system has been set up for early detection of the concurrent issues, and so to receive whistleblower reports and provide immediate consultation on various matters related to compliance.
Bribery and Corruption
As elaborated in ONE’s Basic Anti-Bribery Policy, all directors and employees – whether directly or through third parties – are prohibited from engaging in any form of corrupt practice, including bribery and extortion.
OCEAN NETWORK EXPRESS
Modern Slavery Statement
October 2022
This statement is made pursuant to Section 54(1), of the Modern Slavery Act 2015 (UK) and constitutes Ocean Network Express Pte. Ltd. and Ocean Network Express (Europe) Ltd.’s (together as “ONE”) slavery and human trafficking statement for the financial year ending 31 March 2022.
This is our third Modern Slavery Statement. Building upon our past statements, ONE further underscores our continued commitment to prevent modern slavery and human trafficking in global business and supply chains, through the introduction of material goals and key performance indicators (“KPIs”) to measure the effectiveness of our actions and progress.
Our Structure
ONE is a global container shipping business operating worldwide with headquarters in Singapore.
Our policies on countering Modern Day Slavery and human trafficking
‘Modern Day Slavery’ is an umbrella term, which in the context of global supply chains often relates to cases where individuals are subject to human trafficking, forced labour, or debt servitude; or where coercion, threats or deception are used to intimidate, penalize, or deceive workers, thereby creating situations of involuntary work and exploitation.
ONE Credo and Code of Conduct
We are committed to ensuring that there is no Modern Day Slavery, human trafficking, forced labour or debt servitude in our supply chains nor in any part of our business. Our Credo and Code of Conduct reflects our commitment to act ethically, and with integrity in all business relationships. Ensuring the implementation and enforcement of effective systems and controls against Modern Day Slavery within our supply chains.
United Nations Global Compact
To be part of a global movement towards conducting business in a responsible and sustainable manner, ONE is a member of Global Compact Network Singapore (GCNS), the local chapter of the United Nations Global Compact (UNGC) network. ONE supports the ten UNGC Principles and has pledged to adopt and promote sustainable and responsible business practices. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment, and anti-corruption.
ONE is committed to respecting all ten principles, including Principle 4: the elimination of all forms of forced and compulsory labour. ONE’s Code of Conduct also reflects this respect in Chapter 4: “Respect for Human Rights and Diversity of Cultures”, Clause 4-4: “Prohibiting Forced Labour or Child Labour”, which states ‘ONE does not engage in inhumane acts such as forced labour or child labour and ONE does not conduct trade with business enterprises engaged in such acts.’
Due diligence processes in our supply chain
As part of our initiatives to identify and mitigate risk, we have taken steps (detailed below) to integrate sustainability and compliance into our purchasing processes, by measuring and ensuring compliance with social and environmental standards.
ONE Supply Chain Management Guideline
ONE recognises that to achieve our sustainability and compliance ambitions, we must bring our suppliers and business partners on board. Critical to our operations are terminal operators, inland and coastal transportation companies, ships and container owners, bunker suppliers, and IT vendors, without whom our core business activities cannot take place.
To ensure our high standards of sustainability and business conduct are upheld along our supply chain, ONE launched our Supply Chain Management Guideline (“the Guideline”). The Guideline calls on all ONE's suppliers and business partners to respect human rights, business norms and compliance. Accordingly, our Guideline encourages –
- Elimination of forced, bonded or child labour
- Compliance with labour-related laws and regulations of each country
- Equal terms of employment and treatment
- Improvement of working environment concerning safety and health
- Fair wages treatment
Procurement staff are required to share the Guideline with potential vendors: Supply Chain Management Guideline
Monitoring and review
ONE has taken steps to ensure that there is no Modern Day Slavery or human trafficking in any part of our business.
The Corporate & Innovation Division in GHQ has responsibility for implementing this statement and providing adequate resources to ensure that Modern Day Slavery is not taking place within ONE's business or its supply chains. Additionally, ONE undertakes an annual EcoVadis1 sustainability assessment comprising 21 sustainability criteria definitions, with 4 measures being of direct pertinence to Modern Slavery issues.
As ONE continues to expand our scope of operations, we recognize that our risk landscape continues to evolve. In view of this, ONE undertakes an annual review of our measures to combat Modern Slavery, to ensure adequate coverage and governance.
| Goals | FY 2021/22 Status | FY 2022/23 Status |
|---|---|---|
| Awareness of Modern Slavery Act in the Organization | 92% completion rate for e-learning module | 100% completion rate for e-learning Training Refresh through gamification |
| Enhanced Employee Engagement | Training via e-learning platform | Further initiatives like the EUA Modern Slavery Act SmartCard - an internal tool which details concisely key aspects of compliance matters and their importance; and GHQ Compliance Poster roll-out |
| Extended Scope for Supplier Contracts | MSA clauses are currently incorporated into Vendor Contracts originating from the UK | Incorporation of MSA clauses in globally managed Vendor Contracts across the Organization |
| Downstream Audit and Monitoring | Not Applicable | Introduction of Supplier Declaration |
| Supply Chain Management Guideline | Kickstarted efforts to collaboratively work with Procurement team in the exploration of digital solutions. | Full Implementation of digital tools (SAP Ariba) to achieve 100% Supplier Acknowledgement of Compliance from Q4 2022 |
Training
We provide training to ensure that managers in ONE have a thorough knowledge of the ONE Credo, Code of Conduct, and the Guideline and can act accordingly, sharing knowledge of these documents and ensuring a culture of compliance within their own organisation.
The year 2020-21 saw the development and rollout of bespoke Modern Day Slavery training via our e-learning platform. This training is provided to all staff across the organisation, with materials and quizzes to re-enforce organisational awareness of the company’s commitment to recognise the risks of Modern Day Slavery in its business, and all the pertinent steps ONE is taking to prevent modern slavery and human trafficking in its business and supply chains.
Whistleblowing Program
Employees are encouraged, via our Whistleblowing program, which seeks to encourage effective communication, and to identify any potential violations of applicable laws, internal rules and procedures, the ONE Credo, Code of Conduct and the Guideline. All reports are processed, investigated as applicable, and when justified, appropriate measures are taken.
OUR COVID-19 PANDEMIC RESPONSE
COVID-19 has shed a spotlight on the exacerbated vulnerability of crew at sea. Accordingly, as a founding signatory to the Neptune Declaration2 for Seafarer Wellbeing and Crew Change, and platinum sponsor of the Mission to Seafarers “Sustaining Crew Welfare” campaign, ONE will continue to be committed to addressing this increased vulnerability; ensuring the sustained wellbeing of our maritime frontliners and the enhancement of our culture of care, through the pandemic and beyond.
MODERN SLAVERY STATEMENT REGISTRY
From October 2022, ONE will make this statement available via the UK Government's Modern Slavery Statement Registry. The Registry has been designed to make it easier for consumers and investors to search for the Modern Slavery Statements of businesses.
This statement was approved by the Board of Directors on 06 October 2022.
Please find the signed statement here: ONE Modern Slavery Statement 2022
Operational Excellence
Operational excellence is a mindset and way of working that we embrace at ONE.
When we first started operations in 2018 as one of the newest players in the industry, we knew we had to bring our best to the table to successfully compete in the market. This strategy has enabled us to strive for sustainable improvements within our operations and high levels of service quality.
RAISING THE BAR ON SERVICE QUALITY
Innovation and digitalization are critical enablers of operational excellence at ONE. In 2019, we established our Digital Strategy Committee and Digitalization Roadmap, to build our digital capabilities and enhance existing business models and services, with a focus on delivering better customer experience and operational efficiency.
DELIVERING BETTER CUSTOMER EXPERIENCE
We commenced the first stage of our Digitalization Roadmap in December 2020, digitalizing our channels, operations and assets to provide an end-to-end customer experience within a single digital environment from quotation to e-invoice.
We continue to enhance our Customer Relationship Management (CRM) system to provide full visibility of customer information and interactions across global and regional offices for key accounts, in order to improve customer communication and experience. We also started deploying Robotic Process Automation (RPA) for our booking documentation process to improve quality, accuracy and turnaround time. We aim to have 100% of customer bookings done via our digital platform by 2025.
MAINTAINING OUR OPERATIONAL EDGE
High levels of customer satisfaction and service quality cannot be met if we do not execute on-time delivery of our customers’ goods. That, in turn, requires us to achieve the best operational efficiency at sea and on land.
One of the initiatives implemented is the ONE Agile Supply Chain Integrated System (OASIS) which is a centralized inventory management system that uses data analytics to forecast container demand and supply from shippers (export) and consignees (import) so we can optimise our container positioning strategy. It has been implemented in 99% of locations in ONE’s depot network, with realized savings on equipment cost and empty container reposition costs.
Another initiative is our Terminal Partnership Program (TPP), launched in 2018 to partner terminal operators to improve productivity and service reliability through close cooperation on scheduling, stowage planning and equipment deployment. It is now expanded to more than 10 terminals including a number of major terminal operators all over the world.
CARGO AND CONTAINER SAFETY
The safe transportation of cargo is fundamental to delivering the highest standards of customer service and enabling a smooth flow of operations. It also protects ship and land crew from unnecessary harm. We ensure safe cargo transportation and operations onboard by enforcing strict safety standards and inculcating safety awareness in our employees and contractors.
ONE’s stringent Vessel Quality Standard (VQS) drives our approach to vessel safety. The VQS ensures high safety standards are maintained on ships, based on requirements for ship safety and quality management systems that are in line with industry standards.
To ensure the safe operation of ships, we developed and implemented an Operational Standard to provide guidance to ship crews on how to manage and respond to issues such as cargo damage, heavy weather, accidents and fires, as well as on safe navigation of areas at high-risk of piracy and conflict zones. Issues such as robbery and theft, unauthorized stowaways, and the smuggling of firearms, drugs, and other illegal contraband are also addressed in the Operational Standard.
