Responsible Ship Recycling Standards
More sustainable scrapping of ships
Hundreds of ships are decommissioned and scrapped every year. Since this often entails significant environmental pollution and health risks for people, the banks ABN Amro, ING and NIBC established the Responsible Ship Recycling Standards (RSRS) in 2017. The aim of the RSRS initiative is for shipping companies to observe minimum standards of occupational safety and environmental protection when scrapping their ships, and therefore to view scrapping as part of their own value-added chains.
KfW IPEX-Bank is the first German bank to join the initiative
With a lending volume of EUR 13.9 billion in 2017, KfW IPEX-Bank is one of the top 5 ship financiers in the world. KfW IPEX-Bank sets high standards regarding the environmental and social compatibility of its financing and is therefore the first German bank to join the Responsible Ship Recycling Standards in spring 2018.
Goals of the Responsible Ship Recycling Standards
The aim of the RSRS initiative is to incorporate scrapping clauses in accordance with international standards (including the "Hong Kong Convention") into loan agreements. These clauses also include an obligation for shipping companies to ensure that all ships carry a "Green Passport" that provides an overview of all the hazardous materials on board. Even though it cannot yet be foreseen just how far these clauses will take root throughout the market, Ufer is hoping for some tangible effects. "This is an important way to raise awareness about the significance of sustainable ship recycling. We view the RSRS initiative as a long-term project that will continue to develop and welcome more and more members around the world." As of the end of April 2018 the initiative has eight members worldwide. In addition to the three founding members and KfW IPEX-Bank the banks Nordea, DNB, SEB and Export Credit Norway have also joined the initiative.