7 th Asia-Pacific Manning & Training Conference, Manila 8 November 2006 Meeting Corporate Social Responsibilities “More than Compliance – Sharing Responsibility” Peter M. Swift Managing Director, INTERTANKO

International Association of Independent Tanker Owners Represents responsible oil and chemical tanker owners worldwide, promoting their interests and providing members with technical, operational, legal, documentary and other support services, information and advice members representing > 80% of the independent oil tanker fleet and > 85% of the chemical carrier fleet, with strict membership criteria associate members in oil and chemical tanker related businesses 15 Committees - 4 Regional Panels Representative Offices in Europe, US and Asia

Mission and Vision MISSION “Provide leadership to the Tanker Industry in serving the world with the safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products.” VISION FOR THE TANKER INDUSTRY “A responsible, sustainable and respected Tanker Industry, committed to continuous improvement and constructively influencing its future.”

More than Compliance - Sharing Responsibility As owners: What are we responsible for besides making money ? Shipping is expected to be: Safe and secure Environmentally responsible Reliable Efficient (low cost) But has also additional responsibilities, including: A shared responsibility for ensuring good governance of the industry Responsibility for our personnel afloat and ashore - their safety, welfare and training Responsibility for protection of the environment Responsibility to society and much more !

Total Losses by Number (Ships over 100gt) A “loss” refers to ships damaged beyond economic repair Source: Lloyd’s Register Fairplay Number of Ships

Number of Bulk Carrier Losses Source:INTERCARGO Year No. of Losses Number of losses by structural failure Total number of losses

Source: ITOPF. Number of spills above 700 tonnes. Development of Oil Spills

Pollution from tankers Tonnes / billion tonne mile Tanker accidental pollution rate tonnes spilt per bn tonne miles trade Source: ITOPF spills, Fearnleys: Tonne miles

War Hull & Machinery Fire/Explosion Grounding Collision/Contact Other Reported tanker incidents (1978 – 2005)

Safely and Reliably

Cost Effectively Freight rate and oil price (USD/bbl) deflated by the US consumer price index Oil price 2006 is approx price end April and not average price for the year. Oil price and tanker freight rate

Shipping Industry Performance Has a record of “continuous improvement” But the industry is not complacent ! and is “Striving for Zero” Zero fatalities, zero pollution, zero detentions

The POSEIDON Challenge

BUILDERS MANAGERS EQUIIP SUP CLASS FINANCIERS CARGO BROKERS P&I HULL INSR FLAG STATE COASTAL STATE WATERWAYS PORTTERMINALS BUNKERERS PILOTS TUGS LABOUR CREW AGENTS REPAIRERS SALVORS INCIDENT MGT SHIPBREAKERS EDUCATION TRAINING DESIGN OWNER OPERATOR STAKEHOLDERS AGENCIES GOV IMO STATESLOCAL GOV CARGO

POSEIDON Challenge: An invitation to - commit to continuous improvement – in all that we do - commit to working with all partners

Shipping Industry : Has a record of “continuous improvement” Q: How has this been achieved ? A: A combination of Regulation and Self-Regulation Although difficult to prove !

Industry has a Responsibility to encourage and develop: “Good” Regulation - Effective and supporting fair competition AND Industry “Self Regulation” -Respected for being responsible, and -Accepted as being capable of self-regulation

Industry works to encourage “Effective” Regulation Developed at the global level, wherever appropriate (consistent with existing law) Fit for purpose (provides solutions) Properly considered (stakeholders involved) Impact(s) fully assessed (economic and social) If adopted, implemented uniformly and promptly HOW: Engaging with legislators, regulators, politicians and the media

Responsibilities of Governments “Bad” legislation is the enemy of the “good”

Industry works to develop and promote “Self Regulation” Beyond Compliance : Adopting “best practices” Producing industry guidelines and Developing programmes, procedures, etc. – Design & Shipbuilding, Operations, Equipment, Environmental Performance, Manning &Training, Accident investigations and more… HOW: Engaging with partners, legislators, regulators, politicians, media and public

Industry’s Responsibility to its personnel Taking care of our people !  Safe operation  Welfare and Working Conditions  Recruitment and Training  Speaking out against ”Unfair treatment”

Criminalisation A two-fold concern:  Unfair treatment / human rights and  Counterproductive nature of other measures

Criminalisation Unfair treatment and violation of human rights  Too many cases of unlawful detentions after shipping accidents  Welcome for the joint IMO/ILO Guidelines for the Fair Treatment of Seafarers  Too many other unjust practices – unjustified fines, denial of shore leave, prohibition of terminal access and more

Criminalisation Counterproductive consequences not recognised:  Destroys “no blame” cultures  Discourages openness and frank reporting  Curtails surveyors’ reports – detracts from ”good practice”  Deters salvors in circumstances when we need them most  Deflects focus for proper casualty investigation and denies benefits of same  Destroys and damages morale of seafarers and others  Dissuades new recruits and accelerates departure of experienced staff  Drives responsible people and companies from the business Is this what the legislators and society are seeking ?

Criminalisation Criminal sanctions for ship-sourced pollution:  Industry objects to criminalising accidental pollution AND condemns illegal discharges  Need clarity in law AND consistency with international law  Penalties should be proportionate AND have parity with other similar offences (ashore)  Suspects must be treated fairly AND in accordance with basic human rights  States should comply with their obligations to provide reception facilities AND places of Refuge

Criminalisation What is being done ? Industry-wide efforts to:  Remove the threat of criminal sanctions for accidental discharges &  Maintain the Supremacy of International Law

Vision or Reality ? - Responsible Shipping “More than Compliance – Sharing Responsibility” Owners and other partners committed to continuous improvement and operations beyond mere compliance Working together and accepting OUR respective responsibilities – we can make a difference !

THANK YOU