Our sustainability actions are guided by what matters most
Double Materiality Assessment
In 2023, we revisited our materiality assessment to examine the materiality of each ESG topic from two dimensions: our impact on the environment and society, and the financial impacts on the business. This double materiality assessment (“DMA”) forms the cornerstone of the Company’s ESG strategy, priorities and baseline for reporting.
The DMA was conducted in four stages.
Double Materiality Assessment Process
1 Input
Apart from our stakeholder engagements in 2023, a stakeholder survey was conducted to gather inputs from our stakeholders on ESG topics that impact them the most as a result of our business activities. This was layered over our annual enterprise risk assessment exercise that was focused on business impact materiality. These inputs ensure congruency between business aspirations and ESG matters from a double materiality perspective.
2 Assessment
Guided by internationally recognised sustainability frameworks such as the Tasks force on Climate-Related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB) and the incoming EU Corporate Sustainability Reporting Directive (CSRD), we assessed the severity and significance of the impacts to BW LPG’s value creation to the environment, society and on our business.
- Environmental and Social Impact
Input and feedback was collected to understand the concerns and impacts of ESG topics from key stakeholders including investors, lenders, customers, crew and employees, and suppliers. - Business (Financial) Impact
Leveraging on our annual enterprise risk management process, our risk universe was mapped to ESG topics considering the likelihood and financial impact they may have to our business. More information can be found in the Risk Management section of the Annual Report.
3 Validation
The overall results from the DMA are evaluated by the Audit committee and endorsed by the Board of Directors.
- Environmental and social impact: Cross referenced with industry and market trends, regulations, ESG ratings and recognised frameworks/standards
- Business (Financial) Impact: Validation by BW LPG Executive Management
4 Results
Results – Identification of material issues to prioritise.
ESG Topic | Description |
---|---|
Anti-bribery and Anti-corruption | Activities that inhibit or oppose bribery or corruption in the operations of a company |
Business Resilience | Ensure a sustainable business model with adequate measures to support future-proofing the company |
Climate Change | Strategy for a just transition, innovation, and management of climate change issues |
Community Engagement & Impact | Management of effects on local communities |
Corporate Governance | High standards of reporting and governance structures |
Emissions and Energy | Manage energy efficiency and fuel consumption, greenhouse gas and toxic emissions |
Health and Safety | Health, safety and welfare assurance for onshore staff, crew and contractors |
IT Management | Manage internal systems and data |
Operational Excellence | Provide high levels of service and maintain good relationship |
Protecting Biodiversity | Impact of business operations on biodiversity |
Recruitment, Development and Retention | Provide growth opportunities, training and fair workplace packages |
Responsible Products and Services | Alternative service offerings that will benefit society and the environment |
Supply Chain Management | Manage third-party sustainability related issues and product sourcing |
Working Environment | Ensure an equitable, diverse and inclusive workplace that respects human rights |
Prioritising Material Topics
Based on the relative materiality of each ESG topic, BW LPG identifies Climate Change, Anti-bribery and Anti-corruption, Effective Management, Corporate Governance and Working Environment as high priority topics that require the most attention and we will enhance our programmes to tackle existing and emerging issues surrounding these topics.
Mid priority topics – Health and safety, Responsible products and services, business resilience, recruitment, development and retention and supply chain management will continue to be monitored, with some enhancements of programmes. Lastly, protecting biodiversity, IT Management and Community Engagement & Impact are seen as lower priority matters as our business activities do not have direct or significant impacts on the environment, society and business in relation to these issues. These issues will be monitored as current programmes are adequate in addressing impacts.
A complete list of ESG topics was consolidated into relevant subtopics where we refined descriptions to better reflect the importance and connectivity, considering internal and external inputs. The outcome of the assessment identified eight material topics most relevant to BW LPG. Following a review by senior management, the material topics were presented and endorsed by the Audit committee and directionally supported by the Board of Directors. We explain why these topics are essential to us and update our progress annually in publicly available reports.
ESG Governance
Our Board of Directors oversees ESG strategies, risks and initiatives. Our Audit Committee monitors progress of ESG initiatives and ensures integrity of reporting. Our Executive Management formulates ESG strategies and drives initiatives, and a cross-department team within BW LPG, represented by various Heads of Departments and senior colleagues of the Company, meet regularly to discuss our sustainability approach and focus topics.
This is led and supported by the entire Executive Management with their deep maritime experience. For each material topic, action plans and targets are set with policies and clear governance structure put in place to ensure accountability.
Sustainability Approach
At the core of our sustainability approach is the vpurpose of BW LPG – where we deliver energy for a Better World.
Sustainability Strategy and Governance
Guided by our Vision and Purpose, our sustainability strategy is based on three key pillars and are underpinned by our CARE values.
Targets and Performance
Committing ourselves to the transparent sharing of information on key ESG metrices so as to monitor our performance.