In a global first for the international maritime industry, South Pole and maritime environmental risk management organisation, RightShip have delivered the world's first reported entirely carbon offset shipment of iron ore for Anglo American.
The 5,880 tonnes of CO2 equivalent resulting from Anglo American's shipment of iron ore from Saldanah Bay in South Africa to Europe were calculated using RightShip's carbon accounting tool, and then offset through carbon credits from South Pole's Gunung Salak Geothermal Energy project in Indonesia.
South Pole's Gunung Salak project supports the upgraded capacity of a geothermal plant on Java, Indonesia's most populous island. Thanks to carbon financing, the power plant now generates more clean energy from the same source of geothermal steam and creates a wealth of social benefits for local communities – from upgrading local infrastructure, to supporting local schools and regional jobs.
Kris Fumberger, Sustainability Manager, RightShip said that calls from the maritime industry for dramatic action to reduce emissions is resulting in more companies seeing the need to account for carbon emissions in their supply chains,
"RightShip's carbon accounting tool calculates the carbon emissions based on the specific characteristics of the journey in question...The results can then be used to set targets, inform sustainable decision-making and, as in this case, allow companies to offset the emissions from their shipping activities," said Fumberger.
Jay van Rijn, Senior Manager - Carbon & Energy, South Pole highlighted the actions taken by Anglo American to offset the entire bulk shipping journey as key in addressing the scale and urgency of climate change.
"Climate change is real and affecting business every day. To address this, South Pole collaborates upstream with suppliers, downstream with customers, and across sectors to deliver solutions to our shared sustainability, carbon and energy challenges," said van Rijn.
"We've used RightShip's GHG Rating for many years as a core element of our safety and environmental sustainability practices. Anglo American has set ambitious goals for its overall sustainability agenda, including carbon emissions," said Peter Lye, Head of Shipping, Anglo American, "A verified tool like RightShip's GHG Rating is a key part of monitoring and meeting those targets."
Anglo American transports large volumes of bulk commodity products and places protection of the environment and sustainability at the core of its activities. To put this into practice, the company has committed to sustainable mining plan, setting a goal for a 30% reduction in net GHG emissions by 2030.
RightShip's GHG Rating compares a ship's theoretical CO2 emissions with other vessels of a similar size and type, giving each ship a rating on an A - G scale, with 'A' indicating the most efficient, and 'G' the least.
The Rating provides vital information, allowing owners and operators to make sustainable choices in their vessel selection – which, along with reducing emissions, makes good economic sense, as the less fuel a vessel burns the less it costs to run.
Investing in emission reduction projects – like Gunung Salak Geothermal Energy – is an effective way for companies starting out on their sustainability journey to not only offset emissions, but also contribute to sustainable development around the world. Learn more about South Pole's carbon offsetting solutions here.
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