Pacific Basin forms new committee to drive sustainability agenda

Hong Kong-based dry bulk vessel owner and operator Pacific Basin Shipping  Limited has established a dedicated board-level Sustainability Committee to better align its business strategy to sustainability targets.

“This initiative further strengthens our commitment to sustainability and reinforces our position as a responsible and forward-thinking organisation,” the maritime player said, announcing the new initiative.

As explained, the Sustainability Committee is appointed by the Board to assist the Board in overseeing the management team and advising the Board on matters that are material to the long-term sustainability of the company. This includes ensuring effective management of the company’s sustainability risks and opportunities, overseeing the company’s sustainability approach, priorities and implementation, monitoring progress towards sustainability targets, and overseeing sustainability reporting.

The new committee will comprise two independent non-executive directors Dr. Kirsi Tikka and Mr. Stanley Ryan, and one non-executive director Mr. Mats Berglund.

Last month, Pacific Basin concluded its $150 million sustainability-linked three-year senior unsecured committed revolving credit facility that will be used for general corporate purposes.

This signified the Pacific Basin’s first foray into sustainability-linked loan facilities.

The company currently operates approximately 240 dry bulk carriers of which 116 are owned and the rest chartered. On its path to sustainability, Pacific Basin continues to reduce its fleet’s carbon intensity as the company’s target is to have a fully zero-emission fleet by 2050. In line with this target, the company is in the process of renewing and growing its fleet.

In 2022, an important step was made towards net zero when Pacific Basin started a collaboration with Japanese shipbuilding group Nihon Shipyard and major trading house Mitsui & CO to assess the suitability of alternative green fuels for dry bulkers.

The company concluded that green methanol is currently the best fuel around which to plan the first zero-emission vessels (ZEVs). However, it expects limited orders for dual-fuel methanol-enabled mid-size dry bulk vessels in 2024 due to the limited availability and high cost of green methanol.