NYK Wins Major Funding for Green Initiatives
Japanese shipping company Nippon Yusen Kaisha (NYK) has announced its entry into a loan agreement worth US$81.2 million, which will fund a number of environmentally-friendly projects.
The loan is part of the company’s medium-term management plan, which includes its aim to integrate environmental, social, and governance (ESG) initiatives into management strategy.
According to a statement, NYK plans to achieve this goal by establishing new medium to long-term environmental targets.
Simon Bennett overviews the IMO greenhouse gas strategy for a sustainable future in a recent Port Technology technical paper
NYK’s reduction targets for greenhouse gas (GHG) emissions are 30% per ton-kilometre by 2030 and 50% by 2050, compared with the base year of 2015.
In addition to this, scrubber systems will be implemented across the shipper’s fleet to decrease sulphur emissions from ship exhaust gases by an estimated 86%.
The installation of a scrubber system (Credit: NYK)
NYK was also the first player in the global shipping sector to issue labelled green bonds, which led to the company receiving a green loan from Taiyo Life Insurance Company in December 2018. Along with the new round of funding, this has brought NYK’s total green financing to over $180 million.
In the future, the shipping firm has stated that it will promote green finance and continue its efforts to keep a wide range of stakeholders involved in its “proactive approach to environmental investment”.