TRANSPARENCY AND GOVERNANCE


At BW LPG, we conduct our business with high ethical standards and in compliance with relevant laws. 

Corporate governance in BW LPG is governed by the Bermuda Companies Act and the Company’s Memorandum of Association and Bye–laws. In addition, certain aspects of the Company's corporate governance are governed by the Norwegian Securities Trading Act, the Norwegian Stock Exchange Regulations and the Continuing Obligations for Companies Listed on the Oslo Stock Exchange. BW LPG Limited's Guidelines on Executive Remuneration are available for download.

BW LPG Limited's Bye-laws are also available for download.

The Board of Directors has adopted a Corporate Governance Policy reflective of BW LPG’s commitment to good governance and taking into account standards of Corporate Governance in the Norwegian Code of Practice for Corporate Governance. Deviations from the Code are addressed in the Corporate Governance section of the Annual Report.

The Corporate Governance Guidelines can be found here.

Internally, we subscribe to the BW LPG Global Policy, which outlines the framework for employees’ responsibility and conduct. We ensure that our business operations are carried out with the highest standards of integrity.

We expect our business partners, suppliers, agents and other third parties to comply with relevant policies. These policies reflect our commitment to our shareholders, customers and employees, to conduct our business according to the highest standards of integrity.

Our Priorities on the Governance Front

Our Sustainability PrioritiesWhat This MeansUNSDG
Governance and ComplianceConduct our business ethically and responsibly in full
compliance with all laws and regulations
16
Operational Excellence and
Effective Management
Optimise business processes through innovation and
quality management
16
Anti-Bribery and
Anti-Corruption
Uphold business integrity and stand against bribery
and corruption in the maritime industry
16
Economic Performance
and Benefits
Generate sustainable economic value for our
stakeholders
8

Governance and Compliance

BW LPG has a well-developed corporate governance structure, and a highly experienced Board of Directors.

 

Website Infographics (1)

Board of Directors

Fully Aligned Incentive for the Executive Management

The Executive Management team consists of four members who work together as a team to exercise proper supervision on the management of the Company. The Executive Management is independent of the Board of Directors, and remuneration of the Executive Management is based upon the Guidelines for Executive Management.

Remuneration of the Executive Management is reviewed annually and approved by the Board based on recommendations by the Remuneration
Committee. The Remuneration Committee considers the performance of the Executive Management and gathers information from comparable companies before making its recommendation to the Board. Such recommendation aims to ensure convergence of the financial interests of the Executive Management and the shareholders.

Sustainability performance objectives are integrated into the variable remuneration of the Executive Management.

Encouraging Colleagues to Speak Up

At BW LPG, we have a supportive and open culture. Crew and colleagues do not have to worry about reprisals if they report misconduct, challenge current processes or raise critical concerns. 

By flagging concerns for attention, we can positively manage incidents before they become bigger issues. Employees can either approach their Line manager, an HR representative, or their Head of Department. Employees are assured of a fair review and assessment for required corrective action. Depending on the matter, this can be escalated to the highest level of authority for attention.

BW LPG provides a quarterly update on compliance and litigation to our Board to ensure prompt and transparent communication, and fair resolution of any concern.

Encouraging Colleagues to Speak Up

Operational Excellence and Effective Maintenance

 

As the world’s largest owner and operator of Very Large Gas Carriers (VLGCs), we take pride in offering industry-leading customer service and operational excellence.

Quality Management System

Our Quality Management System (QMS), which takes reference from ISO 9001, is our repository of processes and management systems which guide our delivery of consistent and quality operations. The QMS is regularly reviewed and updated. Regular internal audits are also conducted to ensure that we are adhering to these processes. Any suggestions for improvements are taken into consideration for continuous improvement to our management systems and processes. 

Risk Management 

BW LPG has integrated ESG considerations into the business and therefore includes ESG-related risks into our overall risk management process. Our Enterprise Risk Management (ERM) is based on the principles from the ISO 31000 and the Committee of Sponsoring Organisations’ (COSO) ERM Framework. The risk management process is implemented using a risk register which considers all possible risks, with applicability assessed in terms of impact and probability. This register supports risk identification and follow-up of critical risks and related mitigation measures. We regularly monitor our risk framework, policy and review processes to ensure appropriate and efficient mitigation of risk

Collaboration for Best Practices

In 2020, BW LPG collaborated with other affiliates within the BW Group to share knowledge and best practices on procurement, with the aim to streamline processes and policies, leverage on each other’s understanding of the market and make full use of available resources. One positive outcome has been the creation of a new Resource Planning system, a one-stop solution for ship management purchasing which further automates the purchasing function for our fleet. A Procurement Manifest has also been set up to ensure mutually beneficial contracts for both BW LPG and our vendors. We leverage on volume and shared resources across affiliates to optimise the conditions of the contract and manage risks.

Economic Performance and Benefits

 

Adapting to our changing world requires an understanding that success as a company must be defined by more than the bottom line. It is also about creating value for society – making people’s lives better, enabling economies to grow, and protecting the environment for future generations. By embedding sustainability into our business strategy and operations, we will not only create a better company but a better world.

For BW LPG to play this role in society, we also need to be financially sustainable. Our economic strategies therefore have a dual objective: to achieve good financial results while incorporating environmental and social considerations, and to ensure long-term sustainability of our business and operations.

Monitoring our performance

Our Return on Equity (ROE) performance is measured on a quarterly basis and reported in a transparent manner to our investors during our earnings release. Time Charter Equivalent (TCE), a standard industry performance measure for earnings, is monitored daily and guides our commercial strategy. We regularly benchmark against the Baltic Index and our peers to determine how we are performing.

Cost control is also part of our strategy as we monitor our Vessel Operational Expenditure (OPEX) monthly and benchmark against industry peers to ensure we remain competitive. 

Environmental Performance Dashboard

Sustainability Priority

Governance & Compliance

Operational Excellence & Effective Management

Anti-Bribery & Anti-Corruption

Economic Performance & Benefits

UNSDG1616168
2020 TargetsZero non-compliance
with laws and
regulations

Zero detentions and
≤ 2 observations in port state control
inspections

 

Increase collaboration
with industry bodies

 

Maintain ISO
certifications

 

Unplanned off-hire <
2% of total calendar
days

 

On-time and on- budget project
execution

Zero facilitation
payments

 

Zero non-compliance
with UK Bribery Act 2020

 

Global communication
to commemorate UN Anti-Corruption Day

 

Continue membership
in MACN for
commitment to Anti-Bribery and Anti-Corruption

Commercial utilisation
≥ 95% of commercially
available days

 

Outperform peers in
TCE, OPEX and ROE

2020 ProgressZero non-compliance
with laws and
regulations

Zero detentions and 0.27 observations
in port state control
inspections

 

Maintained ISO
certification

 

Unplanned off-hire
at 0.47% of calendar
days

 

All projects executed
on-time and on-budget

Zero facilitation
payments

 

Zero non-compliance
with UK Bribery Act 2020

 

Launch of e-survey
to commemorate UN Anti-Corruption Day

 

Continued
membership in MACN
for commitment to Anti-Bribery and Anti-Corruption

Commercial
utilisation at 98%
of commercially
available days

 

Outperformed peers in TCE, OPEX and ROE


2021 Targets

Zero non-compliance
with laws and
regulations

Zero detentions and ≤ 2 observations in port state control

 

inspections
Increase collaboration
with industry bodies

 

Maintain ISO
certifications

 

Unplanned off-hire <
2% of total calendar
days

 

On-time and on-budget project
execution

Zero facilitation
payments

 

Zero non-compliance
with UK Bribery Act
2020

 

Conduct Anti-Corruption and Anti-Bribery training for all
seafarers and onshore
staff

 

Continue membership
in MACN for
commitment to Anti-Bribery and Anti-Corruption

Commercial utilisation ≥ 95% of commercially available days

 

Outperform peers in TCE, OPEX and ROE

 

Continuous improvement in ESG efforts

 

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