SYDNEY, LONDON – 20 March 2018 – By marrying a carbon offset programme with its proprietary solution for measuring scope 3 emissions, RightShip, in partnership with CBL Markets, has assisted global diversified chemicals manufacturer Incitec Pivot Limited (IPL) to operate its shipping requirements as a carbon neutral activity.
In the past, measuring emissions from the shipping activities of a major charterer was often difficult, however RightShip’s robust and verifiable Carbon Accounting tool was launched in 2016 to address an increasing demand from large users of ocean transport to measure their ship-sourced (or scope 3) emissions. An early adopter of the tool, IPL now uses the RightShip method to measure emissions from the activities of the 200 vessels it charters each year.
Having delivered a measurement solution, RightShip now offers charterers the ability to offset their carbon emissions by purchasing voluntary carbon credits from CBL Markets, who operate a leading spot exchange for carbon offsets and other environmental commodities. Taking up this initiative, IPL has successfully offset approximately 73,000 tonnes of CO2 for each of the financial years 2016-17 and 2017-18 to make its shipping activities carbon neutral.
Martin Gleeson, National Shipping & Chartering Manager at Incitec Pivot Limited said “A key element of IPL’s Sustainability Agenda is around working with our suppliers to reduce the impact on the community and environment. Working with RightShip, we have been able to take proactive measures to quantify, manage and even offset carbon emissions from our shipping and chartering operations. This not only has significant environmental benefits, it is also enabling us to positively influence action on climate change in the maritime industry”.
CBL Markets, as a leading spot exchange for carbon offsets, is pleased to facilitate the carbon offsetting process between both IPL and RightShip. Commenting on this partnership, Ben Stuart, Managing Director Australia at CBL Markets said: “We are very excited to be working with Incitec Pivot Limited and RightShip, supporting them to play a leading role in sustainable shipping operations by taking voluntary action to reduce their emissions and environmental impact. It’s a positive step towards business sustainability for the broader shipping industry.”
Based on its Greenhouse Gas (GHG) Emissions Rating and compliant with EU standard EN 16258, the development of RightShip’s Carbon Accounting tool was part of an ongoing global drive for companies with a focus on environmental sustainability to accurately measure, monitor and manage total emissions relating to their business activities.
Kris Fumberger, Sustainability Manager, RightShip said: “More and more blue-chip companies want to measure their ship sourced emissions and our verified carbon accounting process allows charterers to achieve this simply and cheaply. The offsetting of almost 150,000 tonnes of carbon dioxide by IPL demonstrates real industry leadership and is a significant step towards the reduction of overall shipping emissions, and the creation of a safer and more sustainable industry”.
Through the carbon offsetting programme IPL is supporting two verified carbon projects in China which support renewable energy generation and more efficient energy generation via natural gas. These projects have a direct link to a region where IPL’s shipping operations have an environmental impact.
Established in 2001, RightShip is the world’s leading maritime risk management and environmental assessment organisation, with almost 300 customers and over 3,000 users of their predictive online vetting platform, RightShip Qi.
RightShip’s Greenhouse Gas Emissions Rating (GHG Rating) enables customers to include the growing importance of supply-chain carbon emissions in their vessel selection process. Providing instant comparison of the CO2 efficiency of over 76,000 vessels, the GHG Rating is now used as a vessel selection tool for one in every five ships chartered, equating to over 2 billion DWT per annum.
The GHG Rating is housed in the organisation’s comprehensive online risk management platform RightShip Qi. Qi brings all the benefits of big data and predictive analytics to enhance maritime risk and environmental management, providing users with sophisticated, real-time vetting insights and enhanced reporting capabilities.
RightShip has three equal equity shareholders: BHP Billiton, Rio Tinto and Cargill.
About Incitec Pivot Limited (IPL)
IPL is a Top 100 ASX Company, owning and operating manufacturing plants in the US, Canada, Australia, Mexico, Indonesia and Turkey, with joint venture operations in South Africa, Malaysia, China and Australia.
A global diversified industrial chemicals company, with manufacturing excellence and core competencies in nitrogen, Incitec Pivot Limited produces industrial explosives and blasting services to the mining, quarrying, seismic and construction industries in North America and across Australia and the Asia Pacific. It is also Australia’s largest supplier of fertilisers, dispatching around two million tonnes each year for use in the Australian grain, cotton, pasture, dairy, sugar and horticulture industries.
About CBL Markets
CBL Markets is a global exchange providing market participants with access to the world’s environmental commodity markets. With a vision of bringing efficiency, transparency and liquidity to environmental markets, our exchange connects buyers and sellers around the world to facilitate the secure and seamless trading of environmental commodities, including Compliance Carbon, Voluntary Carbon, Renewable Energy and Water.