How RightShip’s Carbon Accounting works with the Sea Cargo Charter

RightShip provides a platform for charterers, ship owners and banks to account for the GHG emissions along their supply chain and deliver solutions for reducing emissions where required. 

Scope 3 emissions often represent the largest source of a company's GHG emissions, and in some cases can account for up to 90% of the total carbon impact. As such, the pressure on shippers to address the GHG emissions associated with shipping activities continues to increase.  

But RightShip’s Carbon Accounting tool makes it easy for a company to understand the emissions associated with their supply chain as well as to develop reduction strategies. 

Why reducing maritime emissions matters 

The International Maritime Organisation (IMO) has set a strategy to reduce GHG shipping emissions by 50 per cent by 2050. However, we are experiencing the market move towards a low-carbon environment much faster. 

Increasingly, we are seeing a strong demand from charterers and banks to deliver services with transparent GHG emissions reporting and management. 

The benefits of Carbon Accounting are environmental and business-driven. First, a commitment to a reduction in carbon emissions helps us work towards a shared industry sustainability goal. Second, it enables charterers to meet shareholder expectations and manage public perception to attract investors. As a focus on responsible investment grows, those with a clear emissions-reduction strategy gain a competitive advantage.  

RightShip is proud to be a third-party verifier of the Sea Cargo Charter. Our sustainability team is well-placed to provide emissions calculations and reporting to signatories who choose the Charter’s ‘preferred’ pathway to verification of annual calculations.  

We have provided Carbon Accounting services to our chartering customers for more than five years, with the likes of BHP, Anglo American and Incitec Pivot selecting RightShip to account for their shipping emissions.   

However, signatories considering RightShip as their third party verifier may be unaware of the difference between Carbon Accounting and the Sea Cargo Charter. Here, we outline how they are different, and yet highly complementary services.  

Sea Cargo Charter reporting requirements 

Signatories reporting on their annual emissions need to provide intensity data that can be measured against the International Maritime Organisation’s GHG reduction strategy. An outcome will either be above or below the required intensity to be on track to meet targets. 

Once appointed by a signatory, RightShip performs voyage, category and annual carbon intensity and climate alignment calculations on their behalf. We provide a complete reporting package including a verification statement and results outcomes to enable the charterer to successfully meet their  Sea Cargo Charter obligations.   

The following items are required in the report:  

1. Voyage climate alignments reported against required CO2 intensities.​ 
2. Category climate alignments (defined by ship type and size) reported as a +/- percentage.​ 
3. Total annual activity, climate alignment reported as a +/- percentage.​

Disclosure requirements​ 

1. Percentage of eligible chartering activities non-reporting.​ 
2. Percentages of the chartering activities for which the preferred and allowed pathway tracks were used.​ 
3. Percentages of eligible chartering activities for which measured and estimated data were used and the source for estimated data.​ 
4. A list of the names of the third parties used, to complete the calculations and the associated verification statement / report. 

The outcome of your report will give you a clear picture of your present position and where you sit on the way to meeting maritime industry environmental objectives. The output will ultimately be a figure above or below the required intensity.  

For example, the below table provides a sample result that a signatory might receive in their reporting:  

The four per cent is above the required intensity, ultimately, this customer will want to drive emissions down, so that they arrive at a negative figure in the future. 

Turning your report into action with Carbon Accounting 

Once you know where you’re placed with a verified Sea Cargo Charter report, you’re in a position to consider Carbon Accounting. However, you don’t need to be using the Sea Cargo Charter to engage RightShip for your environmental assessments. When you add Carbon Accounting to your environmental processes, you get access to both your emissions trajectory outcomes, as well as bespoke insights and solutions that enable you to develop a road map to drive down emissions over time, so that you have a path to meaningful improvement from where you’re positioned today.  

Through Carbon Accounting, we look at your total emissions and your emissions trajectory, as we would with Sea Cargo Charter reporting. But we can drill down into specific insights, such as total emissions coming out of specific routes, ship types or cargo types. 

Through Carbon Accounting, we can also provide insights into supplier performance, which in turn helps you to work with suppliers to improve their contribution to sustainability.  Our extensive vessel database allows for the assessment of vessel design and operational performance, which when viewed together provide powerful insights.  

As our Carbon Accounting is aligned with the European Standard for scope 3 emissions, it also covers the life cycle of fuel, including the extraction. It covers ship types not represented by the Sea Cargo Charter, such as containerships and general cargo vessels. With these additional insights, you’ll be able to develop more holistic emissions reduction strategies to help you improve your efficiency and performance.