South32, the international mining company, has signed a sustainability-linked contract of affreightment (COA) with KCC Chartering AS, a subsidiary of Klaveness Combination Carriers.
The six-year COA is related to shipments of caustic soda to South32’s Worsley Alumina refinery located in Western Australia. The COA establishes a framework for how KCC and South32 will work together to deliver further reductions in carbon emissions associated with South32’s caustic soda ocean freight to Australia.
The agreed sustainability framework includes detailed CO2 emission reporting as well as the establishment of trajectories for annual CO2 emission reduction targets, and arrangements around how the two companies will co-operate to reach the set targets. Over the longer term, it includes an ambition to jointly establish a pathway towards future zero emission freight.
The two companies have a longstanding relationship: combination carriers from the Klaveness group have serviced Worsley Alumina for more than 30 years. The latest generation of combination carriers, the fourth to service the plant in Western Australia, are highly efficient.
KCC’s CEO Engebret Dahm commented, “this contract marks another important milestone in the longstanding relationship between South32 and KCC. In this next era of our relationship, together we will address the main challenge of our generation - climate change. We have jointly set ambitions to considerably reduce shipping carbon emissions through building on KCC’s low carbon caustic soda shipping solution, which already today provides South32 with a 30-40% lower carbon footprint than competing tanker vessels.”
South32 Chief Human Resources and Commercial Officer, Brendan Harris, said: “We are pleased to continue our relationship with KCC and our joint efforts to reduce greenhouse gas emissions in the maritime supply chain. It’s partnerships like these that contribute to the decarbonisation of our value chain and promote the responsible production of commodities needed in a low-carbon world. At South32, we are committed to achieving net zero operational carbon emissions by 2050 and have set a medium-term target to halve these emissions by 2035.”