IMPACT REPORT - NGO Shipbreaking Platform

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IMPACT REPORT - NGO Shipbreaking Platform
IMPACT
REPORT
2018
2019
IMPACT REPORT - NGO Shipbreaking Platform
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ABOUT US                                                                                                                                    EDITORIAL
The NGO Shipbreaking Platform is a                   The coalition quickly evolved from                                                                                                 requirement for recycling of EU flagged       Cases such as the FPSO North Sea
coalition of environmental, human-                   being a European Platform to a global                                                                                              vessels at EU audited and approved            Producer, whose import, beaching and
and labour rights organisations                      one, including NGOs based in the                                                                                                   ship recycling yards. After hearing           breaking the Bangladesh Supreme
working to promote safe and                          major shipbreaking countries India,                                                                                                the Platform’s evidence that EU list of       Court ruled illegal; the detainment
environmentally sound ship recycling                 Bangladesh, Pakistan and Turkey. It                                                                                                approved ship recyclers had sufficient        of Diamond Offshore units by the
                                                                                                                                                                                        capacity to recycle Europe’s end-of-life      Scottish     Environment     Protection
globally. The Platform was first                     now has 18 member organisations
                                                                                                                                                                                        ships, Commissioner Vella determined          Agency following an alert by the
created in September 2005 after                      and six partners in 12 countries. The
                                                                                                                                                                                        to put the list into operation without        Platform; and notifying Bangladesh
the few NGOs working on the issue                    Platform is recognised by United                                                                                                   delay.                                        and Indian authorities on exports of
noticed that a broader base of support,              Nations agencies, the European Union                                                                                                                                             mercury-laden floating units exemplify
a stronger network of organisations                  and leading media outlets as the pre-                                                                                              The Platform worked closely with law          our efforts to counter this trend. In
from ship-owning and shipbreaking                    eminent international civil society                                                                                                enforcement officials and legal firms in      2019 with support from Norway’s
countries, and a long-term approach                  advocacy organisation on ship                                                                                                      2019 to hold shipowners accountable           government pension fund, KLP, and the
were needed to challenge the political               recycling.                                                                                                                         for breaking ships in dangerous and           European Commission, the Platform
clout of the shipping industry.                                                                                                                                                         polluting yards. The Leigh Day law            reported on the demolition for end-of-
                                                                                                                                                                                        firm broke new ground when it sued            life floating oil and gas units. We will
                                                                                                                                                                                        the shipping consortium, Maran UK,            continue to focus on the oil and gas
                                                                                                                                            These past two years the Platform           for the fatal accident of a worker who        sector in 2020 with support from Royal
                                                                                                                                            has won support for sustainable ship        died breaking the company’s ship in           Academy of Engineering and Lloyds

VISION                                               MISSION                                                                                recycling in the financial sector while
                                                                                                                                            raising the stakes for ship owners
                                                                                                                                            who break their ships irresponsibly on
                                                                                                                                                                                        Bangladesh and for failing to exercise
                                                                                                                                                                                        due diligence when the company sold
                                                                                                                                                                                        its ship for breaking at the substandard
                                                                                                                                                                                                                                      Register Foundation.

                                                                                                                                                                                                                                      Looking forwards change will come
                                                                                                                                            South Asian beaches. New milestones         yard.      Elsewhere, the Norwegian           through leadership, incentives and
Our vision is that vessels are recycled              To advocate for clean, safe and just                                                   in international law and corporate          police economic crime unit, alerted           accountability. This year the Board
                                                                                                                                            accountability have made these past         by the Platform, is for the first time        added a new position to the Secretariat
in facilities that ensure clean, safe and            ship recycling globally in respect of
                                                                                                                                            two years encouraging and motivating.       investigating a Norwegian ship-owner,         to cultivate leadership within the
just practices, offering decent and                  human rights, core labour standards
                                                                                                                                                                                        as well as its insurance company and          shipping and financial sectors. We
safe jobs. Our commitment to finding                 and environmental justice, and for                                                     Recognizing the power of the financial      surveyor, for intent to illegally export a    continue to push for incentives such
sustainable global solutions is based                the prevention of dirty and dangerous                                                  sector to motivate the decisions of         vessel for scrapping in South Asia. Taking    as using recycled scrap steel in public
on the respect for human rights and                  practices, such as the dumping of                                                      ship owners, the Platform Secretariat       note of the Platform’s contribution to        procurement or levying port fee
the principles of environmental justice,             end-of-life vessels on the beaches of                                                  reached out to marine insurers in           these and other criminal cases, Europol       deposits that return to the owner
producer responsibility, ‘polluter pays’             developing countries.                                                                  2019. As a result of these efforts,         last year invited the Platform to brief its   after a ship is recycled at an approved
and clean production.                                                                                                                       the International Union of Marine           organization on illegal exports of end-       yard. Integrating ship recycling with
                                                                                                                                            Insurers, which represents over 40          of-life ships.                                ship building may innovate design,
                                                                                                                                            national marine insurance associations                                                    provide a stable recycling platform
                                                                                                                                            and 90 percent of the world’s marine        On the ground, the “Life Boat Project”        or new opportunities for currently
                                                                                                                                            insurance premium, announced that           led by Platform members, BELA, OSHE           marginalized shipbreaking workers. Yet
                                                                                                                                            ship recycling would be one of their        and YPSA empowered workers by                 despite its complexities, shipbreaking
                                                                                                                                            environmental, social and governance        providing a safe space where workers          isn’t rocket science. Technologies for
                                                                                                                                            focus areas. Our work with banks            could meet in solidarity, learn about         safer recycling exist. The Platform
                                                                                                                                            and investment funds further saw the        their rights, and receive legal and           has documented over 400 deaths in
                                                                                                                                            Norwegian Central Bank divest from          medical assistance. The Secretariat           the shipbreaking yards since 2009.
                                                                                                                                            Evergreen shipping company in 2018          managed a three-year grant from the           Companies can save lives by recycling
                                                                                                                                            for selling its ships for breaking on the   US State Department to coordinate             their ship on a quayside or in drydock,
                                                                                                                                            beaches of Bangladesh.                      the project, which is now self-directed       in countries with capacity to manage
                                                                                                                                                                                        by workers in Chattogram. In India, our       hazardous waste and to provide human
                                                                                                                                            We are further thrilled to report new       data and research were instrumental           and environmental protections.
                                                                                                                                            laws that will move ship owners away        in helping journalists and researchers
ABOUT THIS REPORT                                                                                         FIND US ONLINE                    from dangerous scrapping and towards        expose the appalling labor conditions
                                                                                                                                            sustainable ship recycling. The Basel       behind the greenwash campaigns in
                                                                                                                                            Ban Amendment, long advocated               Alang.
                                                                                                                                            by the Basel Action Network and
Published by: NGO Platform on Shipbreaking (asbl)   Printed on 100% recycled, chlorine-free paper using   www.shipbreakingplatform.org      other Platform members, became              High levels of mercury and other              Helen Périvier
Rue de la Linière 11, B - 1060 Brussels             vegetable ink.
                                                                                                                                            international law in 2019 and bans          hazardous wastes make scrapping of            President of the Board
                                                                                                          Twitter: @NGOShipbreaking
Edited by: Ingvild Jenssen, Nicola Mulinaris,       Special thanks to photographers C. F., Cato           Facebook: /shipbreakingplatform
                                                                                                                                            developed EU and OECD nations               floating oil and gas units especially         NGO Shipbreaking Platform
Sara Costa, Teg Malla                               Gustavson, Konstantin Novakovic, Andreas                                                from exporting hazardous wastes to          dangerous and are a concern as their
                                                    Ragnarsson and Stefan Tschumi                                                           developing countries.     In addition,      oversupply is sending more of such
Design: Giulia Morandini                                                                                                                    the Platform Secretariat successfully       units for breaking on the beaches
                                                    We thank the European Commission and                                                    countered industry efforts to delay the     of India, Bangladesh and Pakistan.
Cover photo: © C. F.                                the LIFE programme for their support.
IMPACT REPORT - NGO Shipbreaking Platform
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                         TABLE OF CONTENTS

    4                6   Editorial                             01   Getting the Legal Framework Right        14

                         What is the Problem?                  04   Making Business do the Right Thing       17

              8 10                                             06                                            20
                         Facts & Figures                            Our Outreach in the Press
                                                                    and on Social Media

                         Monitoring the Problems of            08   A Vibrant Global Network                 22
                         Shipbreaking in India

        12        13
                         Monitoring the Problems of            10   Financial Statement                      23
                         Shipbreaking in Bangladesh

             14
                         Monitoring the Problems of            12   Who We Are                               24
                         Shipbreaking in Pakistan

                  17
                         Monitoring Ship Recycling Elsewhere   13   Support our work                         26
IMPACT REPORT - NGO Shipbreaking Platform
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WHAT IS THE PROBLEM?

                                                                                                                                                                                                                                                                        © C.F.
Just as the goods they transport,          DIRTY PRACTICES                                  DANGEROUS PRACTICES                         exposed to toxic fumes and substances       by the worst yards. By using middlemen
ships too become waste when they           Millions of tons of hazardous wastes             Shipbreaking is according to the            at the shipbreaking yards.                  that change the registration, flag and
reach the end of their operational         are exported to South Asia in the form           International Labour Organisation                                                       name of the vessel on its final voyage,     SUSTAINABLE
lives. When compared to sinking or
abandonment, recycling is by far the
                                           of end-of-life ships each year. Ships            (ILO) one of the most dangerous jobs
                                                                                            in the world. When conducted on tidal
                                                                                                                                        Carried out in large part by the informal
                                                                                                                                        sector, shipbreaking in South Asia is
                                                                                                                                                                                    ship owners also seek to avoid any
                                                                                                                                                                                    legal or reputational risks linked to the
                                                                                                                                                                                                                                SOLUTIONS
                                           contain numerous toxic materials such
most environmentally-friendly and          as asbestos, polychlorinated biphenyl            beaches, without proper infrastructure      rarely subject to occupational health       increasingly criticised beaching yards.
economically sound way of getting rid      (PCBs), oil residues and heavy metals.           to allow for rapid emergency response       and safety controls or inspections. Most    Hiding behind concealed corporate
of old ships, as it ensures the reuse      Unless these materials are properly              and the safe use of heavy lifting cranes,   workers are employed on day-contracts.      structures and flags known for their
of valuable resources such as steel.       managed, there is a risk of exposure             the danger workers are exposed to, of       They work long hours without holidays,      poor implementation of international
Ship recycling is, however, a heavy                                                         course, increases.                          and trade unions are prevented from         maritime law and which are particularly     Clean and safe methods of ship
                                           that can harm both workers and the
and hazardous industry that exposes                                                                                                     effectively organising them. Children       popular with cash buyers, such as           recycling are available. The
                                           environment. When ships are grounded,
both workers and the environment                                                            On the South Asian beaches unskilled        are especially vulnerable to toxins         Comoros, Palau and St Kitts and             most sophisticated method is to
                                           pulled and broken apart on intertidal
to a great number of risks, and                                                             migrant workers are deployed by the         and dangerous conditions, and child         Nevis, it is extremely challenging for      dismantle the ship in a dry dock
                                           mudflats, there are no means to contain
today, only a fraction of end-of-life      or remediate pollution. Instead, the             thousands to break down the vessels         labour in hazardous industries, such        authorities to trace and hold ship          where it can be recycled under
vessels are disposed of in a safe and      tide washes away debris, paint chips             manually. Without protective gear, they     as shipbreaking, is therefore banned        owners accountable for these illicit        similar conditions to those under
environmentally sound manner.              and oil spillages. The pollution, as well        cut wires, pipes and blast through ship     by both international and national          practices.                                  which it was built, maintained and
                                           as the uprooting of coastal vegetation,          hulls with blowtorches. Accidents kill or   legislation. Yet, in Bangladesh an                                                      repaired throughout its operational

                                                                                                                                                                                                       !
Most ships are taken apart under           including protected mangrove forests,            maim numerous workers each year, and        estimated 13 percent of the workforce                                                   life: in a fully contained industrial
rudimentary conditions on the beaches      endanger the biodiversity of the coastal         the situation is worsened by the fact       are children.                                                                           site with the help of heavy
of Alang in India, Chattogram in           areas and affect the livelihoods of the          that in the vicinity of the shipbreaking                                                                                            machinery. A more widely practised
Bangladesh and Gadani in Pakistan.         local fishing communities.                       beaches there are no hospital facilities    AVOIDING RESPONSIBILITY: CASH BUYERS                                                    alternative is pier-side demolition,
There,     vessels     are     grounded                                                     capable of providing the necessary          AND FLAGS OF CONVENIENCE                     SHIPBREAKING ON THE BEACH                  as in China, Europe and the US.
deliberately during high tide. Breaking    In most cases, the hazardous substances          medical treatment to severely injured       With the exception of responsible                                                       Here the ship is moored long-side at
operations usually take place during low   built into the structure of the vessels          workers.                                    shipping companies that directly                                                        a quay, cut horizontally, and heavy
                                                                                                                                                                                       HIGH RISK OF ACCIDENTS AND
tide when the ship is not submerged by     are not even properly identified and                                                         engage with recycling facilities in            OCCUPATIONAL DISEASES                    parts are lifted onto shore with the
the sea. The human and environmental       therefore harm workers unknowingly.              Loss of life and serious injuries are       Europe, Turkey, US or China, the vast                                                   help of cranes. The lower part of
toll of the shipbreaking activities on     Large amounts of hazardous materials             caused by suffocation, explosions, fall     majority of ship owners sell their             LACK OF PROPER MEDICAL AND               the hull is then brought on a slipway
these three beaches is devastating due     are further either illegally dumped or           from great height and crushing down         obsolete vessels to so-called ‘cash            HEALTHCARE FACILITIES                    and cut in a contained environment
to the lack of adequate infrastructure,    resold in local markets. In Bangladesh           of heavy steel plates. Since 2009, the      buyers’. Cash buyers are scrap-dealers                                                  and impermeable surface. Under
equipment and procedures to prevent        and Pakistan there is no waste                   Platform and its local members have         specialised in the trade of end-of-life        BREACH OF LABOUR RIGHTS                  the EU Ship Recycling Regulation,
accidents and pollution.                   treatment, storage and disposal facility.        documented at least 400 fatalities          vessels, Any deal struck with a cash                                                    the European Union (EU) maintains
                                           In India, it is furthermore still legal to re-   at the beaching yards. Due to the           buyer is hence a demolition deal.              EMISSIONS TO AIR, SEA AND GROUND         a list of approved ship recycling
Ship owners, on the other hand, earn       sell asbestos contaminated materials.            lack of transparency in the industry,                                                      IN INTERTIDAL ZONE                       facilities. This list provides ship
(USD) millions more by selling their                                                        it is expected that the actual number       Ship owners obtain the highest price,                                                   owners, and all stakeholders in the
obsolete vessels to yards that use         The beaching yards were set up without           of workers that have been killed or         upfront and in cash, for their end-of-         POOR OR NO TREATMENT OF                  supply chain management, with
the low-cost method of beaching                                                             maimed is much higher. Many more            life asset when selling to a cash buyer.       HAZARDOUS WASTES
                                           environmental impact assessments                                                                                                                                                     a clear reference for sustainable
and exploit vulnerable workers, local      having been made, and they continue              workers suffer from occupational            Price is a clear and primary indicator                                                  solutions.
                                                                                                                                                                                       LACK OF TRANSPARENCY
communities and fragile ecosystems.        to operate without being subject to              diseases, including cancer and              of the final scrapping destination, and,
                                           thorough environmental monitoring.               asbestosis, years after having been         currently, the highest prices are offered
IMPACT REPORT - NGO Shipbreaking Platform
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THE GLOBAL SHIPBREAKING CRISIS
FACTS & FIGURES

                                                                                                                                                                                                                                       © C.F.
                                        Each year the NGO Shipbreaking                 number of ships sold to South Asian         their poor implementation of maritime
                                        Platform collects data and publishes           shipbreaking yards: 106 ships in total.     law. Legislation based on flag state

TOTAL                                   an annual list of ships dismantled
                                        worldwide. In 2018 and 2019, 1418
                                        vessels were dismantled. 987 of these
                                                                                       Since the Platform’s first compilation
                                                                                       of data in 2009, Greek shipping
                                                                                       companies have unceasingly topped
                                                                                                                                   jurisdiction alone will not be successful
                                                                                                                                   in shifting the industry towards better
                                                                                                                                   practices. The Platform is therefore
                                                                                                                                                                               MAIN SHIPBREAKING
                                                                                                                                                                               DESTINATIONS
                                                                                                                                                                                                   WORLD’S WORST SHIPPING
                                                                                                                                                                                                   NATIONS

                                        ships were sold for dirty and dangerous        the list of owners that opt for dirty and   calling for incentives that incorporate
NUMBER OF SHIPS DISMANTLED              breaking on the beaches of South Asia.         dangerous shipbreaking.                     the polluter pays principle, such as a      BANGLADESH             BEACHED SHIPS
WORLDWIDE                               Whilst ship owners are increasingly                                                        return-scheme for ships collected at        419 ships              SHIPS DISMANTLED
                                        portraying themselves as conscious of          The number of European-owned and/           ports during operational life.                                     OFF THE BEACH
                                        the problems caused by shipbreaking,           or European-flagged vessels beached                                                      15,785,755 GT
    70%       987 vessels were          the Chattogram shipbreaking yards              in 2018 and 2019 amounted to 271                                                                            UNITED ARAB EMIRATES
              sold to South Asian
              beaching yards
                                        in Bangladesh – where the protection           ships. In terms of tonnage, European                                                    INDIA                108                           04
                                        of the environment and workers’                ship owners, from the EU and EFTA

                                                                                                                                                   “”
                                        health and safety is particularly poor         states, are responsible for almost one                                                  453 ships
                                        – remained the preferred scrapping             third of all ships sold for breaking to                                                                     GREECE
    1418                                destination worldwide in terms of              the beaching yards. The EU controls                                                      8,584,610 GT
                                                                                                                                                                                                    97                            17
                                        tonnage dismantled.                            40% of world operational fleet and
                                                                                       thus has a particular responsibility to                                                 PAKISTAN
                                                                                                                                                                                                   UNITED STATES OF AMERICA
                                        Most vessels scrapped in the biennium          find solutions to the shipbreaking crisis                                               115 ships
                                        were tankers, followed by general cargo        and reverse the trend of unsustainable      “Companies sell their end-of-life tonnage                        81                            44
                                        ships, container ships, bulk carriers, roll-   recycling.                                  to the beaching yards as that is where       4,500,306 GT
                                        on roll-offs, passenger vessels and oil                                                    they can make the highest profit. But                           INDIA
                                        platforms. Looking at the size of vessels      Out of the 271 European vessels             these are profits made on the back of
GROSS TONNAGE (MILLION)                 scrapped on the beaches of South Asia,         that were beached, only 10 were still
                                                                                                                                                                               CHINA                62
DISMANTLED WORLDWIDE                                                                                                               exploited workers and fragile ecosystems.
                                        Pakistan received the largest vessels          sailing under a European flag during                                                    51 ships
                                                                                                                                   The beaching yards are furthermore toxic
                                        followed by Bangladesh, while Indian           the last voyage. 27 vessels that had                                                                        SOUTH KOREA
                                                                                                                                   hotspots, and, without a proper clean-up,    728,352 GT
                                        yards scrapped more medium-sized               otherwise been operating under                                                                               51                            05
    89%       28,9 million GT beached                                                                                              the pollution caused by more than three
                                        ships. Turkey tends to recycle smaller         European flag, swapped to a non-EU
                                        vessels on average. Thus, the larger the       flag of convenience just weeks before       decades of reckless shipbreaking will       TURKEY
                                                                                                                                   continue to harm the local environment                          SINGAPORE
                                        vessel the more likely that it will end up     hitting the beach in an attempt to
                                                                                                                                                                               220 ships
                                        on a beach in Pakistan or Bangladesh –         circumvent EU law. The most popular         and the communities that depend upon it                          49                            01
    32,4                                where the conditions are known to be           end-of-life flags for vessels scrapped      for many years to come.”                     2,132,149 GT
                                        the worst.                                     on the beaches in 2018 and 2019 were                                                                        RUSSIA
                                                                                       Comoros, Liberia, Palau, Panama and St      Ingvild Jenssen, NGO Shipbreaking                                45                            28
                                        United Arab Emirates (UAE) and                 Kitts and Nevis. The flags of Comoros,                                                  REST OF THE WORLD
                                                                                                                                   Platform Executive Director and
                                        Greece top the list of country dumpers         Palau and St Kitts and Nevis are almost     Founder                                      160 ships
                                        in 2018 and 2019. UAE owners were              exclusively used by cash buyers at                                                                          CHINA
                                        responsible for the highest absolute           end-of-life. These are flags known for                                                   671,929 GT          33                            40
IMPACT REPORT - NGO Shipbreaking Platform
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MONITORING THE PROBLEMS OF
SHIPBREAKING IN INDIA
                                             higher. Furthermore, serious injuries           Disregard        of     the     negative     ALERTING AUTHORITIES OF ILLICIT            detect mercury contamination beyond           recordings and discussions with
                                             are rarely recorded and occupational            environmental impact of the beaching         PRACTICES: THE YETAGUN
WHAT IS THE ISSUE?                           diseases are not documented at all.             method,        including      hazardous      The Platform, European Environmental
                                                                                                                                                                                     the slops. E-mails and confidential
                                                                                                                                                                                     documents obtained by Dutch
                                                                                                                                                                                                                                   several workers that dismantled the
                                                                                                                                                                                                                                   YETAGUN revealed a shocking account
                                                                                             operations in the intertidal zone,           Bureau (EEB) and Zero Mercury              investigative journalists at Zembla           of the actual conditions at the beaching
The beach in Alang, India is one of          The companies involved, as well as              remain serious concerns, as does the         Group warned Indian authorities of         show that SBM Offshore, the owner of          yard. Workers are not provided with
the main destinations for end-of-            local authorities, seek to thwart public        lack of proper accommodation and             the breach of international waste laws     the FSO, attempted to conceal the high        appropriate      personal     protective
life vessels. Dangerous working              scrutiny of the deplorable conditions           medical facilities for workers. Asbestos     related to the export of the mercury-      concentration of mercury in the ship’s        equipment and were completely
conditions and pollution in Alang were       in Alang. They also seek to greenwash           contaminated materials can be resold         laden FSO YETAGUN, and urged India         steel, in order to avoid clean-up costs.      unaware of the poisonous mercury
first documented by Greenpeace in            the beaching method with the handing            in India and there is no proper disposal     to halt the import of the contaminated     In their statements to Zembla, SBM            contamination. Several stated that full
1998. Following legal actions taken          out of misleading and privately issued          site for PCBs.                               ship. Despite an initial rejection, the    Offshore and the Indian shipbreaker           safety gear is distributed only when
by local NGOs, the Indian Supreme            certificates (see box on Statements                                                          permission to import the vessel was        maintained that the demolition was            inspections take place. Toxicologists
Court directed the industry to align         of Compliance with the Hong Kong                                                             eventually given. The circumstances        carried out in a safe way, and held forth a   that have reviewed the documents on
itself with national and international       Convention).                                                                                 under which the beaching and breaking      so-called Statement of Compliance with        the hazardous materials onboard the
labour and environmental laws. The                                                                                                        of the vessel were allowed remain          the Hong Kong Convention (see box)            YETAGUN say it is impossible that no
Government responded by adopting                                                             WHAT HAVE WE DONE?                                                                      and inspection report - both issued by        high levels of mercury were detected

                                                               “”
                                                                                                                                          unclear, but documents obtained by
the Ship Recycling Code in 2013 and                                                                                                       the Platform show that the Indian          Japanese classification society ClassNK       during cutting operations, as claimed by
the setting up of a waste reception                                                                                                       authorities admitted lacking capacity to   - as evidence. However, undercover            ClassNK.
facility. Workers now receive a very                                                         DEBUNKING INDUSTRY GREENWASHING
basic training. Yet, the conditions in                                                       In the reports “Where ships go to die”
Alang remain deplorable as revealed by                                                       and “The Hypocrisy of Better Beaches”,
the Platform, independent journalists                                                        the Platform teamed up with Belgian
and researchers that have been able to       “There are serious breaches of national         journalist Gie Goris, Editor in Chief of
visit the yards despite access becoming      laws aimed at the protection of workers’        MO* Magazine, to have a closer look at
increasingly challenging. Reports and
undercover footage expose breaches
                                             rights at the shipbreaking yards.               the practices in Alang and the political
                                                                                             context behind the illegal trade of toxic    WHAT ARE STATEMENTS OF COMPLIANCE
                                             Enforcement and monitoring of labour
of labor rights, disregard for even the
most basic health and safety standards,
                                             laws continue to be a major challenge in
                                                                                             waste ships. In Alang, Gie Goris met
                                                                                             workers deprived of their rights and
                                                                                                                                          WITH THE HONG KONG CONVENTION?
and extremely polluting practices. Yard
                                             Alang. Local authorities do not even have       risking their health and safety on a daily
owners are operating with impunity.          an updated database on the number of            basis for a meagre wage. With a focus
                                             workers at the shipbreaking yards, which                                                     From four yards in Alang receiving the     comply with Hong Kong Convention              are unreliable or blatantly deceptive,
                                                                                             on Swiss ship owners, it was revealed
                                                                                                                                          first Statements of Compliance (SoC)       requirements, the standards set by            will for example qualify for obtaining
According to local sources at least          renders it difficult to ensure the welfare of   how companies such as container giant
                                                                                                                                          with the Hong Kong Convention in           the convention have been strongly             a Statement. For these reasons, it is
14 workers died at the yards in 2018,        the workforce. There is an urgent need for      MSC, use the Alang beach to dispose of
                                                                                                                                          2015, more than 90 yards, out of a         criticised for being too weak, ignoring       widely acknowledged by experts on
making it one of the worst years for the     coordination at all levels, involving local     their floating toxic waste while boosting
                                                                                                                                          total of 154 yards, are now reported       also crucial issues such as labour rights     ship recycling that the Statements do
Alang shipbreakers in terms of fatalities.   and national authorities.”                      their profits. The stark contradiction
                                                                                                                                          to have obtained such a Statement.         and downstream waste management.              not provide the guarantee that the
In 2019, two deaths were recorded                                                            between sustainability promises and
                                                                                                                                          The industry push to make beaching         The Statements do not look into a             conditions at the yard are safe and
at yards that are upheld by industry                                                         actual practices, as well as the lobbying
                                             Dr Geetanjoy Sahu, Associate                                                                 yards seem “green” has been promoted       given practice of a yard, nor do they         environmentally sound. Yet, they are
stakeholders as having undergone the                                                         for double standards by embedded
                                             Professor at Tata Institute of Social                                                        through the proliferated hand-outs         look into the adequacy of the claimed         used to mislead stakeholders to believe
most improvements. Due to the lack                                                           policymakers in Europe was uncovered.
                                             Sciences (TISS)                                                                              of these Statements. Whilst these          compliance. With a check-list approach,       that operations are sustainable.
of transparency in the sector, the real                                                      The research received Public Eye’s
                                                                                                                                          privately issued Statements assess         poor quality environmental monitoring,
number of fatalities is expected to be                                                       “Investigation Award”.
                                                                                                                                          the possibility for a given yard to        even when the results of the monitoring
IMPACT REPORT - NGO Shipbreaking Platform
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                                                                                                                                          Of particular concern at the                law; trainings on occupational health        The Platform was quick to alert both
                                                                                                                                          shipbreaking yards in Bangladesh            and safety; and alternative vocational       the UK and Bangladesh authorities
                                                                                                                                          is the employment of children. It is        trainings to child workers so that they      about the illegal export. Platform
                                                                                                                                          illegal under Bangladesh’s Labour Act       can gain the skills to find an employment    member organisation BELA succeeded
                                                                                                                                          to employ children and adolescent           which does not put their health and life     in requesting an injunction on the
                                                                                                                                          workers in hazardous industries such        at risk.                                     breaking of the vessel in 2017 based
                                                                                                                                          as shipbreaking. Yet, in a recent study                                                  on the detection of radiation levels
                                                                                                                                          issued by the University of Chattogram,     More than 100 complaints were filed in       higher than permitted. In a milestone
                                                                                                                                          it was found that 13 percent of the         the Labour Court under the LIFEBOAT          judgement, on 14 November 2019, the
                                                                                                                                          workers were under the age of 18.           project on issues including verbal           Supreme Court of Bangladesh finally
                                                                                                                                          Whilst exploitation of the youngest         termination, lack of medical treatment       declared that the import, beaching and
                                                                                                                                          children seems to have ceased since the     and unpaid wages. The vast majority of       breaking of the FPSO NORTH SEA

MONITORING THE PROBLEMS OF                                                                                                                publication of a previous report by the
                                                                                                                                          Platform and member organisations,
                                                                                                                                                                                      the cases were successfully resolved.
                                                                                                                                                                                      One particular case set an important
                                                                                                                                                                                                                                   PRODUCER was illegal. The Court
                                                                                                                                                                                                                                   further noted with dismay the incessant
                                                                                                                                          Young Power in Social Action (YPSA)         precedent for increased compensation         violations of national and international
SHIPBREAKING IN BANGLADESH

                                                                                                                                 © C.F.
                                                                                                                                          and International Federation for Human      in the case of injury or death of a          laws by the shipbreaking industry, and
                                                                                                                                          Rights (FIDH) in 2008, many young           worker. With the help of the LIFEBOAT        passed several directions upon the
                                                                                                                                          teenagers between 15-17 years old are       project, the mother of Shochindra, an        government to regulate the sector in
                                                                                                                                          now offered work during nightshifts.        under-aged worker who was killed in          line with earlier rulings.
                                                                                                                                                                                      an accident on 21 May 2017, issued
                                                                                                                                          Holding the industry to account at the      charges against one of the largest           After winning the case on the illegal
                                                                                                                                          local level for the damage it causes        shipbreaking companies, Kabir Steel.         import and beaching of the NORTH
                                            National laws are poorly implemented       emergency first aid equipment is                   is challenging. The yard owners are         Kabir Steel’s Managing Directors were        SEA PRODUCER, the Platform is now
                                            due to weak enforcement capacity,          available at many yards, nor do workers            well connected both economically and        summoned to appear in Court and              urging the UK to hold the ship owners
WHAT IS THE ISSUE?                          or deliberately ignored as a result of     automatically receive financial support            politically. The capacity of local labour   ordered to pay 500.000 BDT (5.500            and cash buyer GMS accountable for
                                            industry pressure. End-of-life vessels     for necessary medical treatment.                   inspectors is almost non-existent.          EUR) as compensation to Shochindra’s         the illegal export of the FPSO. Criminal
In terms of tonnage, the Chattogram         are imported with fake documents                                                              Local activists, journalists and workers    mother. Whilst the amount remains            investigations have been initiated by
yards have become the world’s top           claiming that they are toxic-free. As a                                                       who have been vocal about the dire          meagre, it was five times more than          the UK environmental agency.
destination for end-of-life vessels. The    consequence, toxins are not properly                                                          conditions at the yards have thus found     the average compensation fixed by
conditions there are abysmal. Concerns      detected nor safely removed. The                                                              little support, and have even been          the Bangladesh Labour Act. Risking
include dire working conditions, high       coastal ecosystem and the local                                                               threatened.                                 three months imprisonment if the
fatality rates, exploitation of child       communities depending on it are                                                                                                           amount was not paid, Kabir Steel’s

                                                                                                                                                                                                                                                    “”
workers, severe pollution of air and        devastated by toxic spills. Currents and                                                                                                  Directors settled. The case prompted
the marine environment as well as the       tides distribute the pollutants not only                                                                                                  an important milestone for the
uncontrolled dumping of hazardous           along the coast, but also further inland                                                      WHAT HAVE WE DONE?                          increase of compensation amounts,
                                                                                                                                                                                      which effectively became double by
wastes. Journalists, including from         during the monsoon season. Since
National Geographic, the Guardian and       Bangladesh has no storage, treatment                                                                                                      an amendment of the Bangladesh
Al Jazeera, have brought back shocking      and disposal facility for hazardous                                                           LIFEBOAT PROJECT                            Labour Law in 2018. Now, shipbreaking
reports on the human rights abuses and      wastes, these toxics are simply dumped                                                        With support from the US State              workers are entitled to 200.000 BDT          “The judgment is important in that it has
environmental degradation caused by         or re-sold on the second-hand market,                                                         Department, the Platform and its            (2.200 EUR) compensation from yard           expressly called the import, beaching
the shipbreaking activities.                causing further harm to surrounding          *At least 44 workers died                        members Bangladesh Occupational             owners via the Labour Court.
                                                                                                                                                                                                                                   and breaking permits illegal, and for the
                                            communities. The World Bank has                                                               Safety, Health and Environment
                                                                                                                                          Foundation       (OSHE),     Bangladesh     MAERSK’s TOXIC TRADE: THE NORTH SEA          first time a breaker has been put off the
In 2009, a land-mark decision by            estimated that between 2010 and 2030
                                                                                                                                          Environmental Lawyers Association           PRODUCER                                     breaking operation and the government
the Supreme Court ordered the               Bangladesh will have imported 79.000
closure of the shipbreaking industry        tons of asbestos; 240.000 tons of PCBs                                                        (BELA), and YPSA implemented a three-       In August 2016 the FPSO NORTH                has been given the steering. It is even
as none of yards held the necessary         and 69.200 tons of toxic paints that                                                          year project, the LIFEBOAT project,         SEA PRODUCER was beached in                  more important because it has required
environmental clearance to operate.         originate from end-of-life ships.                                                             aimed at promoting internationally          Chattogram, Bangladesh. The ship             the government to regulate the dubious
After only two months of closure the                                                                                                      recognised labour rights in the             was allowed to leave the UK based on         roles of the cash buyers and restrict import
yards were, however, allowed to re-         Out of the three South Asian                                                                  shipbreaking sector and strengthening       false claims that it would be further        from grey- and black-listed flag registries.
open with incomplete authorisations         shipbreaking beaches, the Platform has                                                        the engagement of the Child Labour          operationally used in the Tin Can port       This will surely make it difficult for the
in hand and little change in practice. In   by far recorded the highest number of                                                         Elimination Committee. The Platform’s       in Nigeria. The owners of the FPSO,          unscrupulous players to treat Bangladesh
2016, the Supreme Court therefore           fatalities in Bangladesh. In 2018 and                                                         member organisations in Bangladesh          Danish A.P. Moeller Maersk and
                                                                                                                                                                                                                                   as a dumping ground.”
issued a contempt ruling against both       2019, the Platform documented the                                                             assisted the most vulnerable workers        Brazilian Odebrecht had in fact sold the
the authorities and shipbreaking yard       stories of 44 workers who were killed                                                         by providing free medical camps; legal      ship to the largest vessels’ scrap dealer,
                                                                                                                                          assistance to workers that have suffered    cash buyer GMS, through a St. Kitts and      Syeda Rizwana Hasan, Supreme Court
owners for continued breaches of            and 46 who suffered severe injuries.
national environmental and labour laws.     There is no ambulance available to                                                            injuries, or to the families left behind    Nevis post box company, and the FPSO         Lawyer and Director of Bangladesh
Whilst the case is still ongoing, yards     bring injured workers to the closest                                                          following a fatal accident, so that they    was towed thereafter directly all the        Environmental Lawyers Association
continue to operate in blatant breach of    specialised hospital located an hours’       *At least 46 workers were                        can obtain the compensation they are        way from the UK to the shipbreaking
                                                                                                                                          entitled to get according to Bangladesh     yards in Bangladesh.
the Courts decisions.                       drive away from the yards. Not even                severely injured
IMPACT REPORT - NGO Shipbreaking Platform
12                                                                                                                                                                                                                                                                          13

MONITORING THE PROBLEMS OF

                                                                                                                                       © Novakovic

                                                                                                                                                                                                                                                                                           © Navaleo
SHIPBREAKING IN PAKISTAN                                                                                                                             OTHER RECYCLING DESTINATIONS

                                                                                                         “”
                                            available at the yards, it was also a                                                                                                                                                              the back of China’s efforts to crack

WHAT IS THE ISSUE?
                                            major challenge to bring severely burnt
                                            workers to the nearest hospital in                                                                       TURKEY                                       REST OF THE WORLD                            down on pollution and waste producing
                                                                                                                                                                                                                                               industries in the country, and follows a
                                            Karachi. Despite attempts by local and                                                                                                                                                             ban on the import of a large number of
The conditions at the shipbreaking          regional authorities to better regulate                                                                                                                                                            hazardous wastes, including plastics.
                                                                                                                                                     Turkey dismantled 220 ships in 2018          EUROPEAN UNION
yards in Pakistan are not any better. As    safety procedures at the yards, in the
                                                                                                                                                     and 2019, including several drilling         In December 2016, the EU published
in India and Bangladesh, the yards in       beginning of 2017, five workers lost                                                                                                                                                               INDONESIA
                                                                                       “Gadani, once one of the world’s largest                      ships and platforms. In comparison to        the list of ship recycling facilities that
Gadani operate directly on the beach        their lives in another explosion on a                                                                                                                                                              Smaller vessels are known to be
                                                                                       shipbreaking hubs, has now lost that                          South Asia, Turkey dismantles smaller        are approved according to the EU
without any impermeable and drained         tanker. This led to a moratorium on                                                                                                                                                                broken in Indonesia. Recent media
                                                                                                                                                     vessels, many of them either EU-owned        Ship Recycling Regulation and located
working areas to protect the sea and        the import of tankers imposed by the       status. There is no doubt that the major                                                                                                                investigations   revealed     appalling
                                                                                                                                                     or EU-flagged. Aliaga is also a preferred    in EU Member States. 34 out of 41
sand from pollution. As there is no         government. Yet the ban was lifted in      explosion on 1 November 2016 that killed                      destination for EU navy vessels.             facilities approved so far are located       social and environmental conditions
infrastructure to deal with hazardous       2018, without concrete measures in         at least 30 workers on the spot and severely                                                                                                            at a breaking yard located in Cilincing,
                                                                                                                                                                                                  in the EU. These yards are currently
waste in Gadani, dangerous and              place, such as mandatory gas-free-for-     burnt even more, revealed the catastrophic                                                                                                              North Jakarta.
                                                                                                                                                     Although Turkish yards do not beach          mainly recycling government-owned
polluting substances – such as asbestos,    hot-work, to prevent the reoccurrence      conditions at the yards and prompted both                     vessels, the landing method which            and smaller vessels, and operate grossly
PCBs and residue oils – are simply          of these tragedies.                                                                                                                                                                                PHILIPPINES
                                                                                       inquiry and adoption of more stringent                        is used also poses environmental             under-capacity. They have signalled that
dumped behind the shipbreaking area.                                                                                                                                                                                                           In the Philippines, the government has
                                            Figures, however, clearly show a
                                                                                       safety regulations. However, whilst the                       challenges, as the risk of slag and paint    the promise of a larger market share
                                                                                                                                                     chips falling into the water is high.        would prompt investments to enlarge          planned the construction of a ship recy-
Workers’ health and safety are              significant decline in shipbreaking        safety at workplace as a result has slightly
                                                                                                                                                     Through engagement with NGOs                 the yards so that they could recycle         cling yard on the island of Negros. The
blatantly ignored in Gadani, and            activities in 2018 and 2019. This          improved, no change occurred in beaching                                                                                                                construction is financed by Japanese
                                                                                       practices. That the coastal environment is                    and labour rights groups, the Turkish        more as well as larger commercial ships.
trade unions, such as the IndustriAll-      development is caused by several                                                                                                                                                                   corporation Tsuneishi Heavy Indus-
                                                                                                                                                     Ship Recyclers Association remains
affiliated Pakistan National Trade          factors, including the devaluation of      now slowly showing signs of recovery is                                                                                                                 tries Inc. The Platform is assisting rep-
                                                                                                                                                     attentive to constantly improving the        UNITED STATES
Union Federation (NTUF), have voiced        the Pakistani Rupee and imports of         not due to any upgraded environmental                         industry practice, and the yards are         In the US, facilities are able to            resentatives of local NGOs PDG and
strong concerns related to the systemic     cheap metal billets from neighbouring      management at the yards, but is rather                                                                                                                  Save Hinoba-an Movement in halting
                                                                                                                                                     open to independent researchers.             recycle vessels in a safer and more
breaches of basic labour rights. Most       countries, and has resulted in the         is a result of the significant decrease in                                                                                                              the project, which currently involves
                                                                                                                                                                                                  environmentally friendly way than
of the shipbreaking workers in Gadani       closure of the majority of the yards and   the number of ships coming for breaking                                                                                                                 land-grabbing of agricultural grounds
                                                                                                                                                     Six yards in Aliaga are currently included   on the beaches of South Asia. Most
are migrant workers from the poorest        thus the return of migrant workers to                                                                                                                                                              and will negatively affect local commu-
                                                                                       on the beach. Any attempts to revive the                      on the EU list of approved ship recycling    facilities are located in Brownsville,
regions of Pakistan.                        their home villages.                                                                                                                                                                               nities, their livelihoods, as well as the
                                                                                       industry in Pakistan must ensure that the                     facilities. In order to make it on the EU    Texas. One of these facilities has been
                                                                                                                                                     list, the yards are subject to on-site       included on the EU List.                     coastal environment.
Following the explosion of 1 November                                                  recycling operations take place in industrial
                                                                                       zones where both the environment and                          assessments of their environmental and
2016 of the ACES tanker, there has
                                                                                       workers can be protected.”                                    social performance.                          CHINA
been increased awareness, nationally
                                                                                                                                                                                                  Several Chinese yards that have the
and internationally, of the dangers faced
                                                                                                                                                                                                  capacity to recycle a substantial amount
by the workers in the shipbreaking                                                     Dr. Irfan Khan, NGO Shipbreaking                                                                           of large vessels alongside piers and in
yards in Pakistan. Many workers lost                                                   Platform Board Member                                                                                      docks are currently out of business.
their lives in the explosion that took
                                                                                                                                                                                                  As of 1 January 2019, China closed
the Pakistani military three days to
                                                                                                                                                                                                  the market for the recycling of foreign
extinguish. Without any ambulances
                                                                                                                                                                                                  flagged ships. This decision comes on
IMPACT REPORT - NGO Shipbreaking Platform
14                                                                                                                                                                                                                                                      15

GETTING THE
LEGAL FRAMEWORK RIGHT

                                                                                                                                                                                                                                                                      © C. F.
                                            the Hong Kong Convention which does         supported by Belgium and Greece and                                                 In January 2018, the Platform alerted       Warranty Surveyor Aqualis Offshore
                                                                                                                                                                            Scottish Environmental authorities          are now scheduled to be heard by the
WHAT IS THE ISSUE?
                                            not ban beaching; does not regulate
                                            the downstream management of
                                                                                        it became apparent that there was
                                                                                        an urgent need to counter the fake           MILESTONE                              (SEPA), of the imminent illegal export of   Court. After having been detained

Under international environmental
                                            hazardous wastes; sets no standards
                                            for labour rights; and provides no
                                                                                        news with reliable data. The Platform
                                                                                        reviewed historic data on the breaking       SEATRADE CASE                          three floating rigs from the Cromarty
                                                                                                                                                                            Firth. The rigs had been sold to cash
                                                                                                                                                                                                                        in Norway for more than a year, the
                                                                                                                                                                                                                        HARRIER was allowed to leave for
law, end-of-life vessels are considered     independent certification and auditing      of EU flagged vessels and effectively                                               buyer GMS by Diamond Offshore. SEPA         recycling in Aliaga, Turkey. However,
hazardous waste. The export of              scheme for the recycling facilities.        showed that all EU flagged ships, both                                              halted the movement of the platforms        a major oil spill in the Izmir region
                                                                                                                                     On 15 March 2018, the Rotterdam
hazardous wastes to developing                                                          in terms of tonnage and size, could have                                            and pre-defined the cold-stacked rigs       caused by the vessel on its final voyage
                                                                                                                                     District Court sentenced, on the
countries from the EU is prohibited         On 30 December 2018 the new EU              easily been recycled at one of the 35                                               as hazardous waste. The units are           to the Turkish recycling yard led to
                                                                                                                                     basis of the EU Waste Shipment
under the EU Waste Shipment                 Ship Recycling Regulation became            facilities that at the time were approved                                           currently still being detained, and are     the arrest of the ship. The HARRIER
                                                                                                                                     Regulation, shipping company
Regulation. On 5 December 2019 the          applicable. The standard for safe and       by the EU. Indeed, many of these sites                                              not able to leave Scotland unless the       remained stuck at the Turkish recycling
                                                                                                                                     Seatrade for the intent to illegally
Basel Convention’s Ban Amendment,           environmentally sound ship recycling        are operating grossly under-capacity.                                               recycling destination is allowed under      yard for more than one year as cash
                                                                                                                                     export four vessels for scrapping in
which prohibits the export of hazardous     set by the EU is an important step in the   The conclusions of the report were                                                  the EU Waste Shipment Regulation. The       buyer Wirana simply “vanished” after
                                                                                                                                     India.
waste, including end-of-life ships, from    right direction.                            picked up by the press, enforcement                                                 Platform also alerted local oil and gas     having delivered the ship, dodging
developed to developing countries                                                       authorities and Members of the                                                      trade unions of the case and has worked     both the clean-up costs and fine issued
                                                                                                                                     Seatrade was heavily fined, and two
became applicable at the international                                                  European Parliament. This left the ship                                             with National Union of Rail, Maritime       by Turkish authorities . The recycling
                                                                                                                                     of its executives were also banned
level.    However,     European       and                                               owners in quite an embarrassing                                                     and Transport Workers (RMT) to raise        operations finally started in February
                                                                                                                                     from exercising the profession as
international law governing the trade of
end-of-life ships is easy to circumvent
                                            WHAT HAVE WE DONE?                          position, and also convinced EU
                                                                                        Commissioner Karmenu VELLA that
                                                                                                                                     director, commissioner, advisor or
                                                                                                                                                                            the issue of the decommissioning
                                                                                                                                                                            of floating oil and gas structures in
                                                                                                                                                                                                                        2020 – three years after the attempt
                                                                                                                                                                                                                        to illegally export the vessel to Gadani,
                                                                                                                                     employee of a shipping company
for ship owners. Under the pretext of       DEBUNKING FALSE INDUSTRY ARGUMENTS          there was no need to postpone the                                                   both the Scottish Parliament and UK         Pakistan.
                                                                                                                                     for one year. This decision was a
continued operational use or repair         The Platform published a report on the      application date of the new law..                                                   Parliament, demanding that the UK
                                                                                                                                     major milestone in the Platform’s
work, most ship owners do not declare       recycling capacity that is available on                                                                                         government develop a strategy for the       The Platform is now engaging with also
                                                                                                                                     campaign as, for the first time,
their intent to dispose their vessels and   the EU List of approved ship recycling      Today, the EU List has been expanded                                                safe and clean recycling of the North       Europol and Interpol on ‘illegal ship-
                                                                                                                                     a shipping company was held
thus escape from law enforcement.           facilities in September 2018 together       to include 41 approved ship recycling                                               Sea structures.                             breaking’. They aim at enhancing col-
                                                                                                                                     criminally liable for the illegal
                                            with member organisation Transport          facilities. Whilst several Indian beaching                                                                                      laboration between different national
                                                                                                                                     trade of end-of-life ships. The
The industry-driven International           & Environment. As the application date      yards have applied for approval, none                                               In Norway, the HARRIER case is under        police forces. To raise broader public
                                                                                                                                     Prosecutor’s request that the
Maritime Organisation (IMO) adopted         for the EU Ship Recycling Regulation        of them have been able to prove that                                                investigation by the Economic Crimes        awareness, the Platform has worked
                                                                                                                                     Seatrade executives face prison
the Hong Kong Convention in 2009. It        was approaching, the European               they meet the standards set by the                                                  Division of the police. The ship owner      closely with investigative journalists fo-
                                                                                                                                     was only waived in light of this
has so far not entered into force due to    shipping industry sought to undermine       Regulation.                                                                         and cash buyer have been charged            cusing on specific cases of illegal exports
                                                                                                                                     being the first time such criminal
the lack of ratifications, and has been     the Regulation by claiming that it                                                                                              for their attempt to illegally export       of waste ships: Dutch investigative
                                                                                                                                     charges had been pressed. This
denounced for its weak standards by         could not become applicable without         HOLDING INDUSTRY TO ACCOUNT FOR                                                     the vessel to Pakistan. The insurance       journalists published a damning report
                                                                                                                                     ground-breaking judgement sets
more than 100 global environmental          considerable recycling capacity added       ILLICIT PRACTICES                                                                   company and Marine Warranty                 for offshore company SBM that sold a
                                                                                                                                     an important precedent for holding
and human rights organisations, the         to the list. Their call was for the EU to   The Platform has prompted several                                                   Surveyor are both under investigation       mercury contaminated tanker to Alang,
                                                                                                                                     ship owners accountable for selling
UN Special Rapporteur on Human              accept facilities in Alang, India, under    criminal     investigations    by    EU                                             for having aided the intended illegal       India; BBC investigative journalists re-
                                                                                                                                     vessels, via shady cash-buyers, for
Rights and Toxics, legal experts and        the false pretext that without those        enforcement       authorities    against                                            export. Cash buyer Wirana has already       leased their report on the illicit practic-
                                                                                                                                     dirty and dangerous breaking in
European policy makers. 90 yards at         yards, EU flagged vessels would not         shipping companies involved in the                                                  been fined 7 million NOK (approx.           es of Diamond Offshore and cash buyer
                                                                                                                                     order to maximise profits.
the Alang beach in India already claim      have enough capacity available for          illegal export of end-of-life vessels to                                            640.000 EUR), and the cases against         GMS, as well as the connivance of local
that they meet the requirements of          their recycling. The industry push was      South Asia beaches.                                                                 both ship owner EIDE and Marine             Indian authorities, in March 2020.
IMPACT REPORT - NGO Shipbreaking Platform
16                                                                                                                                                                                                                                                                               17

                                                                                                                                      © Cato Gustavson / KLP
                                                                                                                                                               MAKING BUSINESS
                                                                                                                                                               DO THE RIGHT THING

                                                                                                                                                                                                                                                                                               © C.F.
Criminalising illegal conduct plays           bonds and inclusion of requirements       transition to Circular Economy models.                                                                              Ship owners’ lack of due diligence when
a key role in changing corporate
incentive structures. Sufficiently high
                                              to use sustainably recycled scrap
                                              steel originating from ships in public
                                                                                        BELA and FIDH joined the Belgian
                                                                                        Federal Police in a second debate that                                 WHAT IS THE ISSUE?
                                                                                                                                                                                                            selling to cash buyers is increasingly
                                                                                                                                                                                                            highlighted by law enforcers and the      MILESTONE
and dissuasive penalties, also for
inciting, aiding and abetting offences
                                              procurement would further encourage
                                              investments in high quality recycling.
                                                                                        focused on corporate liability for toxic
                                                                                        trade. The event was organised during                                  The vast majority of ship owners do not
                                                                                                                                                                                                            financiers of shipping.
                                                                                                                                                                                                                                                      INVESTORS
need to be ensured. Within that scope,
the liability of auditors, insurers and       To raise awareness on how to boost
                                                                                        the Brussels 15 Days for International
                                                                                        Solidarity with the support of the City
                                                                                                                                                               take responsible decisions when getting
                                                                                                                                                               rid of their old ships. Instead, they sell
                                                                                                                                                                                                            Companies globally are increasingly
                                                                                                                                                                                                            expected to make sure that their
                                                                                                                                                                                                                                                      DIVESTING
private certification schemes, should be      a toxic-free future in line with the      of Brussels, and included also the                                     their vessel to scrap dealers known as       business, including their supply chain    In January 2018, the Norwegian
explored and accounted for.                   Circular Economy, the Platform and its    performance With Bare Hands LIVE.                                      cash buyers. These companies offer           management, operate in line with          Central Bank decided to exclude four
                                              member organisation FIDH, organised                                                                              ship owners the highest price – upfront      international human rights standards      ship owners, including Evergreen,
FOCUS ON THE CIRCULAR ECONOMY                 in October 2019 two panel debates                                                                                and in cash – for end-of-life vessels.       and does not cause harm to the            from the Government Pension
The Platform advocates for the adoption       moderated by chief editor of MO*                                                                                 They will manage the ship on its last        environment. Faced with this demand       Fund Global (GPFG), the world’s

                                                                                                         “”
of incentives to facilitate a level playing   Magazine. The UN Special Rapporteur                                                                              voyage, as well as rename and reflag         - and often with a much more public       largest sovereign fund. The exclusion
field and increase the supply of ships        on Toxics and Human Rights gave an                                                                               it, often to the worst performing flags      profile than most ship owners - banks,    was made public and with written
to facilities with high environmental         opening key-note speech. Platform                                                                                in the world, as part of their business      pension funds and consumer brands,        explanations. Both the breach of
and safety standards. A return-scheme         member organisation Basel Action                                                                                 model.                                       upon which international shipping         international human rights and
for ships where moneys are collected          Network (BAN) presented the                                                                                                                                   depends, are taking steps to ensure       the severe environmental damage
during operational life from all vessels      Circular Economy and waste trade,                                                                                Registering also the ships under             responsible ship recycling.               caused by beaching were highlighted
trading in European waters has                before being joined on stage by the                                                                              anonymous post box companies, it                                                       as reasons for the divestments.
                                                                                                                                                                                                                                                      According to the Council on Ethics
been proposed at the EU level and is          European Environmental Bureau (EEB)       “Repeated legal calls in the importing                                 becomes challenging for authorities to
supported by NGOs, trade unions and           and the UN Special Rapporteur to                                                                                 hold cash buyers accountable for their                                                 of GPFG, selling a vessel to a
                                                                                        countries are falling into deed ears simply                                                                                                                   beaching yard via a cash buyer “is a
industry stakeholders. The use of green       discuss measures that will support the    because the rich nations are declining                                 illicit business practices. Ship owners
                                                                                                                                                               will claim that their responsibility                                                   consequence of an active choice on
                                                                                        to take care of their waste. While the EU                                                                                                                     the part of the company that owned
                                                                                                                                                               ends upon concluding a deal with a
                                                                                        has come forward with a set of rules, it is
                                                                                                                                                               cash buyer, and thus seek to avoid any       WHAT HAVE WE DONE?                        the vessel to maximise its profit. In
                                                                                        high time that the public agencies work                                                                                                                       the Council’s opinion, that company
                        CALL FOR ACTION                                                 to bridge the gap between laws and their
                                                                                        implementation and save lives and the
                                                                                                                                                               financial, liability or reputational risks
                                                                                                                                                               linked to the scraping of their vessels      PROMPTED ENGAGEMENT FROM FINANCIERS       must shoulder an independent
                                                                                                                                                                                                                                                      responsibility for doing so. There
                                                                                                                                                               at the increasingly criticised beaching      Profits made on the back of people and
                                                                                        environment.”                                                          yards.                                       the environment are not acceptable        are better ways of dismantling ships
   We call upon the European Union to         lowcost method of beach-breaking.
                                                                                                                                                                                                            with the slowly increasing focus on       that are readily available to the ship
   maintain high standards when               Wa also call upon the Member
                                                                                                                                                                                                                                                      owner, but these are more expensive”.
   publishing its list of approved ship       States to support the introduction        Syeda Rizwana Hasan, Supreme Court                                     Selling to a cash buyer has, however,        environmental, social and governance
                                                                                                                                                               become increasingly difficult to use         criteria for investments. Through         This precedent-setting divestment
   recycling facilities and not to give       of a financial scheme based on the        Lawyer and Director of Bangladesh                                                                                                                             was followed by Norwegian pension
   in to shipping interests that want         polluter pays principle that would        Environmental Lawyers Association                                      as a pretext for not knowing that the        what is known as “negative screening”,
                                                                                                                                                               asset will be scrapped. The higher price     investors are using the annual lists      fund KLP that excluded the same
   to continue earning dirty money by         incentivise ship owners to opt for a
                                                                                                                                                               offered by the cash buyer is also a clear    that the Platform publishes on global     companies. Both investors have
   using the dangerous, polluting and         ship recycling facility on the EU list.
                                                                                                                                                               indication of where the vessel will be       dumpers to screen their asset values.     signalled that they may take further
                                                                                                                                                               scrapped.                                                                              action on companies that break their
                                                                                                                                                                                                                                                      vessels also in India.
18                                                                                                                       17                                                                                                                                   19

                                                                                                                                                                                                                                                                        © Stefan Tschumi
ENSURED ENGAGEMENT FROM                         to screening their business up against     So far, the only structure which operated   authorities on the export of three          Platform was also asked to share its
MARITIME INSURERS                               Environmental, Social and Governance       in the North Sea and has been traced        tankers owned by Petrobras that were        experiences working on human rights         WORST SHIP-DUMPING
Following investigations in Norway              (ESG) issues.                              to a South Asian beaching yard is the       exported to India in breach of UNEP’s       corporate liability at events organised     COMPANIES
on the possible criminal liability of                                                      FPSO NORTH SEA PRODUCER. The                Basel Convention, and also in relations     by Amnesty International and partner
insurance companies in aiding illegal           HIGHLIGHTING EMERGING CHALLENGES           Platform has, however, revealed that        to the auctioning of the French aircraft    organisation European Coalition for         2018
waste trafficking, the Platform has been        With the oil and gas sector seeing a       units operating in East Asia have been      carrier Clemenceau’s sister ship, the       Corporate Justice (ECCJ).                   SINOKOR
solicited to present the shipbreaking           downturn since 2014, the Platform          sold for scrapping to the beaching yards    SÃO PAULO. In the latter case, and due
issue to the insurance sector. In June                                                                                                                                                                                           11
                                                has documented an increasing number        with false inventories claiming that they   to the large amounts of asbestos still      RECOGNISING BEST PRACTICE
2019 the Platform spoke at an event             of offshore units sold for scrap. More     are free of mercury contamination.          on-board, the Platform has effectively      Recycling       vessels      sustainably
organised by the largest P&I ship               than 200 floating oil and gas structures   With support from the Royal Academy         worked with the global Ban Asbestos         is possible. In 2019, the NGO               2018
insurer, Gard. Underwriters, brokers            have been documented by the Platform       of Engineering and Lloyds Register          Network and urged both French and           Shipbreaking Platform commended             NORDIC AMERICAN TANKERS
and shipping companies were present,            as scrapped globally since 2015 – an       Foundation, the Platform will continue      Brazilian authorities to ensure the         Dutch ship owner Van Oord for best            8
and co-presenters on the ship recycling         estimated 40% of these assets ended        to focus on the particular end-of-life      proper dismantling of the vessel in an      corporate practice. Van Oord sold its
issue included DNB bank, Wilhelmsen             up on South Asian beaches, where they      challenges of the oil and gas sector.       EU approved facility.                       end-of-life ships to EU-listed yards for    2019
shipping company and a shipping                 were broken up under conditions that                                                                                               recycling and has had a long-standing
                                                                                                                                                                                                                               EVERGREEN
lawyer. Jointly, all presentations offered      cause irreparable damage to the coastal    FOCUS ON BRAZIL                             FOCUS ON HUMAN RIGHTS DUE DILIGENCE         commitment to safe and clean ship
strong arguments for sustainable ship           environment and put workers’ lives         Also in Brazil there is an increasing       The Platform has engaged with the UN        recycling. Other companies that have          11
recycling from an environmental, labour         and health and safety at risk. Mercury     inventory of oil and gas units that         Special Rapporteur on Human Rights          had a sustainable ship recycling policy
rights, legal, financial and ethical point of   and radioactive contamination are of       will need to be decommissioned in           and Toxics, as well as NGOs, lawyers and    in place for many years include Boskalis,   2019
view. In September 2019, the Platform           particular concern on so-called floating   the coming years. Via presentations         researchers that focus on corporate         CSL, Deme Group, Grieg Star, Hapag          BERGE BULK
was invited to speak at the Annual              production and storage units.              at conferences on ship recycling and        accountability. These exchanges have        Lloyd, Heerema, Jan de Nul, Samskip
Conference of the International Union                                                      offshore decommissioning organised by       brought valuable insights in other          and Wallenius Wilhelmsen.                     4
of Marine Insurers (IUMI) in Toronto,           The Platform published a report on         SOBENA in Rio de Janeiro, the Platform      sectors, such as coco-farming and
Canada. IUMI represents more than               the decommissioning of floating oil        has engaged with Brazilian ship recycling   textiles, that also face similar problems
40 national marine insurance and
                                                                                                                                                                                                          CALL FOR ACTION
                                                and gas structures that have operated      yards, environmental authorities and        with regards to poor conditions and
reinsurance associations, and through           in the North Sea. These units are          major shipping and oil & gas companies      weak auditing schemes that are not
their respective memberships cover              effectively covered by the EU Ship         such as Petrobras and Vale. The aim         able to detect violations, in some cases
more than 90 per cent of the world’s            Recycling Regulation and / or the          has been to enhance awareness on            even designed not to detect violations         We call upon ship owners globally        list of ship recycling facilities. We
marine insurance premium. Following             EU Waste Shipment Regulation. The          the issue in Brazil, where several          as a way of hiding exploitation. The EU        to use modern industrial ship            also call on cargo owners and the
the conference, the Platform has                report outlines clear indicators for       yards could potentially meet the EU         Ship Recycling Regulation provides             recycling facilities - off the beach     financers of shipping to demand
been contacted by several insurance             when assets in the North Sea are           standard and recycle regional tonnage       in that sense for a strong case of EU          - that can ensure clean and safe         clean and safe ship recycling from
companies for advice on how they can            likely to be decommissioned and            in a sustainable manner. Currently,         auditing practices in third countries and      practices in line with international     the ship owners they do business
contribute to raising the standards of          identifies solutions for their safe and    Brazilian companies are selling their       could be used as an example to follow          environmental and labour rights’         with by including contractual clauses
ship recycling. IUMI further announced          environmentally sound recycling. The       obsolete tonnage for breaking on the        in also other sectors and supply chains.       standards. We expect shipping            that require the use of ship recycling
that ship recycling would be one of             report was launched during an event        beaches of South Asia. The Platform         In light of the Platform’s successes in        companies to exercise due diligence      facilities on the EU list.
their future focus areas with regards           hosted by pension fund KLP in Oslo.        has alerted Brazilian environmental         prompting criminal investigations, the         and use the upcoming European
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