NYK is pleased to announce that for a second consecutive year, CDP,* an international environmental non-profit organization, has recognized NYK as an "A-list" company for climate change.

 

CDP’s annual environmental disclosure and scoring process is widely recognized as the gold standard of corporate environmental transparency. In 2021, about 590 investors with over US$110 trillion in assets and 200 major purchasers with US$5.5 trillion in procurement spend requested companies to disclose data on environmental impacts, risks, and opportunities through CDP’s platform. Over 13,000 responded — the highest ever.

Of the approximately 12,000 companies worldwide that were assessed, 201 companies were selected for the A-list, out of which 55 are Japanese companies and 2 are shipping companies, including NYK. (As of December 8, 2021)

We believe that our selection as an A-list company, the highest rating, is a comprehensive recognition of our achievements as a global leader in reducing greenhouse gas (GHG) emissions and the following series of initiatives to mitigate the risks of climate change.

  • The effective functioning of an EMS (Environmental Management System) based on a clear commitment by top management to climate change measures
  • Appropriate recognition and assessment of risks and opportunities for environmental issues
  • Highly transparent disclosure of environment-related information, including GHG emissions and reductions
  • Active involvement in various types of green finance, such as green bonds, green loans, and sustainability linked loans
  • Proactive efforts to introduce and promote the use of LNG fuel and to reduce GHG emissions
  • Active engagement in research and demonstration projects for the practical use of zero-emission fuels such as hydrogen and ammonia


On February 3, NYK released the NYK Group ESG Story, which aims to further integrate ESG into the company’s management strategy and promotes activities that contribute to the achievement of the SDGs through business activities.
Moreover, in September we set a long-term target of net-zero emissions of greenhouse gas (GHG) by 2050 for the NYK Group's oceangoing businesses.
The NYK Group will continue to strive to disclose relevant information as a global leader in addressing climate change, and to create new value as a sustainable solution provider needed by society and industry.

* CDP
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states, and regions. Founded in 2000 and working with more than 590 investors with over $110 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources, and protect forests. Over 14,000 organizations around the world disclosed data through CDP in 2021, including more than 13,000 companies worth over 64% of global market capitalization, and over 1,100 cities, states, and regions. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable, and resilient economy.

The CDP score is widely used around the world as a leading indicator in making sustainable investment and procurement decisions. Responding companies are allocated a score from A to D- depending on the comprehensiveness of their disclosure. Those that don’t disclose or provided insufficient information are marked with an F.

The full list of companies that made this year’s CDP A List is available at the link below, along with other publicly available company scores:

https://www.cdp.net/en/companies/companies-scores


NYK and NYK Group company MTI Co., Ltd. (“MTI”), together with the American Bureau of Shipping (“ABS”) and Winterthur Gas & Diesel Ltd. ("WinGD"), have started joint research for optimization of ship design by utilizing a battery-hybrid system to aid ship propulsion and thus reduce GHG (greenhouse gas) emissions from vessels.

A vessel’s main-engine revolutions may increase significantly when a vessel tries to maintain its sailing speed during strong waves and winds. This phenomenon is called “load fluctuation.” The shaft generator may also increase the burden on the main engine. The shaft generator is connected to the ship’s propeller shaft to generate electricity within the ship as the main engine rotates.

The battery-hybrid system is a mechanism that decreases the burden that the shaft generator places on the main engine. This battery-hybrid system supplies electricity from the battery when the load on the main engine fluctuates. As a result, the power that the ship can use for its propulsion can be increased, and the operation of the main engine thus becomes more efficient. For these advantages, this system is being introduced to more oceangoing vessels. In addition, the use of the battery-hybrid system will lead to a reduction of GHG emissions since instead of a generator, which requires oil, it can supply electricity for the operation of onboard equipment during daily operations.

In this joint research, NYK, MTI, ABS, and WinGD aim to create an integrated simulation model of ships by combining the modeling technologies* of each company to maximize GHG emission reduction through use of this battery-hybrid system.

Specifically, an integrated model of an entire ship will be created by combining NYK and MTI's modeling technologies for actual sea performance** and WinGD's modeling technology for engine plants that include batteries. Then, using ABS’s advice on the evaluation of the effect of GHG reduction. NYK, MTI and WinGD will then jointly design a ship in digital space and together with ABS conduct simulations of navigation using a scenario that assumes meteorological conditions in actual seas. By considering the issues clarified within the simulation, NYK, MTI and WinGD will further improve the simulation model to optimize ship design. This joint research is an epoch-making initiative in the maritime industry that has the ship users, NYK and MTI, collaborating with the marine equipment manufacturer WinGD and with the advice of the marine classification society ABS develop a digital model of a ship, perform simulations, and build a ship. The ship model will be verified in accordance with a modeling and simulation framework to be developed by ABS.

Image of processing a simulation

 

In the future, NYK and MTI, together with ABS, WinGD, and shipyards, will improve the accuracy of the simulation by collating the simulation results, obtained through the joint research, with the performance data of actual ships in actual seas. NYK and MTI aim to nurture this simulation technology as a core technology in the shipbuilding plans of the NYK Group. NYK and MTI will also utilize simulations to optimize the method of operation and control of the battery-hybrid system. This joint research is the first step for such future-aiming initiatives.

On February 3, NYK released the NYK Group ESG Story, which aims to further integrate ESG into the company’s management strategy and promotes activities that contribute to the achievement of the SDGs (Sustainable Development Goals) through business activities. Conducting this joint research reflects the company’s initiative to provide an eco-friendly transportation mode through the improvement of ships (hardware) and ship operations (software), as well as the promotion of digitalization. To strongly promote ESG management, the NYK Group will encourage new value creation as a sustainable solution provider.

 

<Company Overviews>

Nippon Yusen Kabushiki Kaisha
Head office: 2-3-2 Marunouchi, Chiyoda-ku, Tokyo, Japan
President: Hitoshi Nagasawa
Website: https://www.nyk.com/english


MTI Co., Ltd.
Head office: 2-3-2 Marunouchi, Chiyoda-ku, Tokyo, Japan
President: Kazuo Ishizuka
Website: https://www.monohakobi.com/en/


* Modeling technology
Describing the act or specifications of an equipment mainly through mathematical formulas.

** Actual sea performance
The vessel’s performance, such as navigation speed or fuel efficiency, in actual sea conditions with waves, winds, etc.

*** NYK Group ESG Story
A guideline detailing concrete efforts to integrate ESG into management strategies of the NYK Group. Details: https://www.nyk.com/english/news/2021/esg-story_01.html

 

It has been bought to our attention that there is a copy website active online using a very similar NYK RORO domain name making reference to NYK RORO & using NYK RORO vessel images and logos.

Please be advised that this website ''nykroro.com'' is the only official global website for NYK RORO business. 

On November 26, United European Car Carriers (UECC), which is equally owned by NYK and Wallenius Lines, took delivery of the world’s first dual-fuel LNG battery hybrid pure car and truck carrier (PCTC). The vessel was built by Jiangnan Shipyard (Group) Co. Ltd. in China and will be named “Auto Advance.” The ship will be used to transport finished vehicles within Europe.

The vessel is equipped with a dual-fuel engine that can use LNG or heavy fuel oil. This is the third such vessel for UECC after Auto Eco and Auto Energy.

Additionally, the ship comes equipped with the world’s first dual-fuel LNG battery hybrid system, allowing the vessel to further improve fuel consumption by operating the main engine and power generation engine more efficiently than before.

The battery hybrid system uses a combination of a shaft generator driven by the main engine and a battery to efficiently supply onboard power and reduce the environmental burden. In addition, in the event of a generator failure, power is supplied from the battery to the ship to avoid power loss and thus contribute to safe operation. The use of LNG fuel, in addition to the battery hybrid system to improve fuel economy, will result in virtually 90% less sulfur oxide (SOx) emissions, 85% less nitrogen oxide (NOx), and 25% less carbon dioxide (CO2) compared to conventional vessels fueled with heavy oil. As a result, the vessel will also meet the IMO’s Tier 3 NOx emissions limitations* for the North Sea and Baltic Sea.

 

 

Outline of Vessel:
Length overall: 169.10 meters
Breadth: 28.00 meters
Gross tonnage: 35,667 tons
Total car capacity: 3,661 units
Shipbuilder: Jiangnan Shipyard (Group) Co., Ltd.
Flag: Madeira

On February 3, NYK released the NYK Group ESG Story, which aims to further integrate ESG into the company’s management strategy and promotes activities that contribute to the achievement of the SDGs through business activities. To strongly promote ESG management, the Automotive Transportation Headquarters has set up the Sail GREEN project** to expand the network of environmental value chains at each company of the NYK Group and thus create new value as a sustainable solution provider.

 

* IMO’s Tier 3 NOx emissions limitations
Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL) regulates NOx emissions from vessels. The diesel engines used on vessels built after 2021 are required to reduce NOx emissions by more than 80% from the Tier I NOx emissions limitations in Emission Control Areas, including the North Sea and Baltic Sea.

** Sail GREEN project
A project being promoted by NYK’s Automotive Transportation Headquarters to reduce CO2 emissions at all the transportation stages of vehicles and contribute to the eco-friendly supply chains of customers. The chief component of the project is a switch to LNG-fueled PCTCs, which emit less CO2 compared to conventional heavy-fueled vessels. In addition, reducing CO2 emissions at finished-car logistics terminals that NYK operates throughout the world, as well as during short sea and inland transportation, is also an important target of this project.

Environmental value chain model
(Transportation from Yokohama to Norway via Belgium)

Overview of each company:

Wallenius Lines
Head office: Stockholm, Sweden
CEO: Jonas Kleberg
Website: https://www.walleniuslines.com

United European Car Carriers
Head office: Oslo, Norway
CEO: Glenn Edvardsen
Website: https://www.uecc.com

NYK has agreed to a memorandum of understanding (MoU) for the consecutive building of LNG-fueled PCTCs at Shin Kurushima Dockyard Co., Ltd. and Nihon Shipyard Co., Ltd. Twelve new ships are planned to be built, six ships each at the two shipyards. The newly built ships will be delivered successively from fiscal 2025 to fiscal 2028.

This consecutive building of LNG-fueled PCTCs is in accordance with the PCTC fleet replacement plan to achieve NYK’s environment management target, *which is to reduce CO2 emissions per ton-kilometer of transport by 50% by 2050. The use of LNG fuel, in addition to hull modification to improve fuel economy, will contribute to a reduction of CO2 emissions by approximately 40% compared to ships using conventional heavy fuel oil.

Through its “Sail GREEN” project,** NYK’s Automotive Transportation Headquarters has been promoting the transition of upcoming newly built PCTCs to vessels that are LNG-fueled, and this began with Sakura Leader, which was delivered in October 2020 and was the first LNG-fueled PCTC to be built in Japan. In fact, the company already has firm plans to launch eight LNG-fueled PCTCs by 2024. Including these additional 12 new vessels, NYK’s total number of LNG-fueled PCTCs will increase to 20 by fiscal 2028 through a total investment of about 200 billion yen.

NYK aims to further advance to zero-emission vessels utilizing marine fuels that have a lower environmental impact, such as hydrogen and ammonia, from around 2030. For the moment, NYK is positioning LNG fuel as a bridge solution until future zero emission ships can be realized.

On February 3, NYK released the NYK Group ESG Story, which aims to further integrate ESG into the company’s management strategy and promotes activities that contribute to the achievement of the SDGs (Sustainable Development Goals) through business activities. To strongly promote ESG management, the NYK Group will actively promote replacement of its PCTC fleet to next-generation eco-friendly ships and encourage new value creation as a sustainable solution provider.

Outline of vessels

Length overall: about 199.95 meters
Breadth: about 38.00 meters
Total car capacity: 6,800 – 7,000 units
Flag: To be decided

NYK Group ESG Story
A guideline detailing concrete efforts to integrate ESG into management strategies of the NYK Group. Details can be found in the following press release.

* NYK’s environment management target
Website: https://www.nyk.com/english/esg/envi/plan/

** “Sail GREEN” project
A project being promoted by NYK’s Automotive Transport Headquarters to reduce CO2 emissions at all the transportation stages of vehicles and contribute to the eco-friendly supply chains of customers. The chief component of the project is a switch to LNG-fueled PCTCs, which emit less CO2 compared to conventional heavy-fueled vessels. In addition, reducing CO2 emissions at finished-car logistics terminals that NYK operates throughout the world, as well as during short sea and inland transportation, is also an important target of this project.

 

Overview of each company

<Shin Kurushima Dockyard Co., Ltd.>
Head office: Tokyo, Japan
President: Tetsushi Soga
Website: https://www.skdy.co.jp/en/index.html

< Nihon Shipyard Co., Ltd.>
Head office: Tokyo, Japan
President: Yoshinori Maeta
Website: https://www.nsyc.co.jp/en/

Reference