The members of RSRS adopted new and improved standards in order to promote responsible ship recycling. The scope was also expanded. As from May 2021 mobile offshore units are included.
KfW IPEX-Bank was the first German bank to adopt the RSRS, which were founded by ABN AMRO, ING and NIBC in 2017 to promote responsible ship recycling and minimise the dangers associated with hazardous materials onboard ships. The RSRS has since grown to 12 members, together representing major European ship financiers.
RSRS members commit on a best efforts basis to implement RSRS into their internal ESG policies, procedures and standards for the financing of shipping assets and to only finance ships that carry an Inventory of Hazardous Materials. The standards form the guiding principles in the dialogue about responsible ship recycling between the financial sector and stakeholders in the shipping industry, and through their combined leverage, members contribute to realising real change in the industry.
Since the launch of the RSRS in 2017, many developments have taken place which called for improved RSRS standards. The new standards were adopted and approved unanimously in March 2021 and build on existing international regulations and accepted standards. One of the main changes is the expansion of the scope of the RSRS to include mobile offshore units such as oil and gas platforms.
Also, promoting and respecting human rights, including labour rights, is better reflected in the standards and guidance on what is expected from clients in relation to responsible ship recycling has been added, which helps relationship managers in their client conversations.
Finally, the members have agreed on being more transparent in their commitments by starting to report publicly on achievements in their annual and/or sustainability reports. Several members have already done so and confirmed their continued commitment and that all, or close to all, of their shipping transactions closed in 2020 included relevant RSRS clauses in the loan agreements.
For the coming year, the members aim to further promote the RSRS and commitments by engaging with clients and the broader financial sector on the new standards. An important goal for this year is to recruit banks from other parts of the world in order to make an impact on a global scale.
Besides ABN AMRO, RSRS members are Danske Bank, DNB, Eksportkreditt, Hamburg Commercial Bank, ING, KfW IPEX-Bank, NIBC, Nordea, SEB, SpareBank 1 SR-Bank and Sparebanken Vest.
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