Trading and shipowning giant Gunvor has pledged to phase out its own non-eco ships this year — and severely limit the number of older vessels it charters in.
The company revealed in its first sustainability report that 100% of owned ships will be eco tonnage by 2022.
And only 25% of the time-chartered fleet will be non-eco ships over the same time frame.
Before 2027, Gunvor has promised to have a 100%-eco chartered fleet.
UK shipbroker Clarksons defines eco-ships as those built from 2015. Gunvor said eco vessels meet standards for design, construction and operation beyond statutory requirements.
The group, through its subsidiary Clearlake Shipping, has already begun to transform its vessel profile.
From 73% to 100%
Gunvor's owned fleet used to consist of 73% non-eco ships. Further details have been sought from the company.
The trader has also pledged to make carbon intensity part of its ship vetting process.
Any vessel rated D or E on the International Maritime Organization's efficiency scale will require special internal approvals, the company said.
Route modelling and live tracking will also be used to optimise each ship's voyage.
Gunvor wants low and zero-emission fuel-ready ships in the chartered fleet. It mentioned ammonia as a way forward.
The group, owned and led by chief executive Torbjorn Tornqvist, owns or operates more than 100 vessels, including tankers.
The fleet also includes a "sizeable" number of managed LNG ships, and the sheer volume of its gas trading creates "substantial optionality" in the spot market, Tornqvist has said.
About 50% of Gunvor’s trading today consists of "transitional" commodities like biofuels and LNG.
The group has ceased physical coal trading and acquired biofuels plants.
Sustainable financing
Gunvor was the first physical energy trader to launch a sustainability-linked financing round.
Scope 1: Direct emissions from owned or controlled sources.
Scope 2: Indirect emissions from purchased energy sources.
Scope 3: Various other indirect emissions in a company’s value chain.
"To build on this record, Gunvor now commits to both further improve the environmental impact of its current trading portfolio and invest in new sustainable commodities and businesses," the company said.
"Decisions made will be done not only in response to our desire to uphold our position as a responsible company, but because Gunvor believes it is possible to do well by doing good."
Gunvor admitted that due to fundamental economic and logistics reasons, hydrocarbons will continue to be a part of the global energy mix for the foreseeable future.
"Therefore, steps must be taken today to effectively manage, limit, and where possible eliminate emissions," the company added.
The company has set up a new Swedish company called Nyera, which means new era, to make non-hydrocarbon investments.
These will be worth at least 10% of net equity — an amount totalling more than $500m.
Nyera will focus on carbon capture and storage, renewable fuels, renewable power and alternative fuels, including ammonia and hydrogen.
Gunvor is also in the process of finalising measurements of indirect Scope 3 emissions, including those linked to traded commodities and voyage charters.
The trader has committed to reduce or compensate Scope 1 and 2 emissions by 35% and 95%, respectively, by 2025, compared to 2019.
The group will also continue to expand in LNG and natural gas, while reviewing opportunities in the gas-to-power space.
