Environment and energy efficiency

Ivanov

“FESCO is committed to the sustainable development goals and annually allocates funds to reduce the adverse impact on ecosystems. We are planning to continue to choose the most reasonable container transportation routes and improve our processes to minimise the carbon footprint of cargo transportation and transhipment, offering our customers the most economical routes.”

Boris Ivanov,

Vice President, Production Development

FESCO’s industrial and environmental safety policy defines the principles, goals, objectives, and core operations in environmental protection, environmental and industrial safety.

To comply with environmental protection requirements, FESCO has approved industrial environmental control programmes that provide for continuous environmental monitoring of atmospheric air, waste and sea waters, bottom sediments, and marine biota, including monitoring with the use of automated control devices for emissions into the atmosphere and with the involvement of accredited laboratories.

In 2021, a positive opinion of the state environmental review was obtained for the project “Environmental feasibility study of VMTP’s business operations involving transhipment of coal in inland sea waters carried out in the area of berths No. 10 and No. 14 with an environmental impact assessment (EIA) to be conducted”.

FESCO implemented an Environmental Management System as part of its Integrated Management System.

In September 2021, the Russian Maritime Register of Shipping, a certification body, conducted a recertification audit of FESCO’s Integrated Management System and issued an opinion confirming its compliance with ISO 14001 in terms of the Environmental Management System.

FESCO vessels comply with the requirements of the International Convention for the Prevention of Pollution from Ships (MARPOL) in terms of energy efficiency of ships. Fuel consumption is monitored in accordance with the approved ship energy efficiency plans (SEEMP). All of the Company’s vessels are certified by the Register confirming correct data collection.

In 2021, some RUB 66 mln
was spent on measures to ensure environmental safety of ships.
Efficiency of environmental protection measures
INDICATOR VALUE, %
Leaks of fuel, lube oil, and oil products to sea 0
Failures to meet environmental requirements exposed during vessel checks by PSC bodies or Marine Port Authority 0
Violations of the procedure for reballasting or jettisoning the ballast 0
Reduction in the volume of garbage and solid waste discharged to sea (12.3)
Increase in the volume of incinerated waste 2
Increase in the volume of waste delivered to onshore receiving facilities 12.5
Source: Company data

Energy consumption

In 2021, FESCO increased its focus on energy saving activities. The Company started developing its own Energy Policy in accordance with ISO 50001, Energy management system. Requirements with guidance for use.

The energy consumption results for 2021 show a 1% reduction in specific energy consumption for terminal operations, which reduced the GHG emissions under comparable operating conditions by more than 1.1 thousand tonnes of CO2-e.

Energy efficiency in terminal operations
TYPE OF ENERGY RESOURCE MEASUREMENT UNIT 2020 2021 CHANGE, %
NATURAL UNITS T OF REFERENCE FUEL NATURAL UNITS T OF REFERENCE FUEL
Fuel oil t 109.0 149.3 92.0 126.0 (15.6)
Diesel fuel ‘000 l 6,307.4 7,591.0 7,401.5 8,907.7 17.3
Electricity ‘000 kWh 33,045.9 11,136.5 37,017.3 12,474.8 12.0
Motor petrol ‘000 l 91.4 104.2 99.3 113.2 8.6
Heat ‘000 Gcal 2.6 376.5 2.6 375.4 (0.3)
Total kt of reference fuel 19,357.5 21,997.1 13.6
Cargo turnover ‘000 HCCs 496.8 570.0 14.7
Energy intensity t of refence fuel / ‘000 HCCs, normalised 39.0 38.6 (1)
Source: Company data

Greenhouse gas emissions

Sertifikat

FESCO is aware of its responsibility to minimise the environmental footprint of its transportation and logistics services and works to develop a more sustainable route from Asia to Europe along the Trans-Siberian Railway. We use combined logistics schemes involving sea and railway transport which have a significant advantage over any other schemes in terms of carbon footprint from container transportation.

At the same time, FESCO realises the importance of global warming issues and keeps working to identify and use mechanisms seeking to reduce greenhouse gas emissions. In 2021, Fesco Integrated Transport received a certificate from the Russian Ecological Society for its active participation in the implementation of new logistics products designed to minimise greenhouse gas emissions.

In accordance with the calculation methodology for greenhouse gas emissions presented by EcoTransit, which meets the rules provided in EN 16258 “Methodology for calculation and declaration of energy consumption and GHG emissions of transport services”, the route offered by FESCO is six times eco-friendlier in terms of CO2 emissions per transportation of 100 TEU compared to the route via the Suez Canal. This is because transportation by rail makes 80% of the route, which means much lower average greenhouse gas emissions compared to other modes of transport.

Calculation of CO2 emissions per transportation of 100 TEU along the Shanghai — Hamburg route by various modes of transport, t СО2-e.
MAIN MODE OF TRANSPORT TTW EMISSIONSAccording to calculation using EcoTransit’s methodology.
Air transport 5,521
Sea transport via the Suez Canal 119
Motor transport 564
Combined transport (sea and railway) via Vladivostok (FESCO) 18