ClassNK

Principles and Initiatives on Environmental, Social, & Governance

In line with its mission to contribute to the safety of life and property, and the environmental protection, ClassNK carries out all of its business with consideration on environmental and social aspects for the sustainable development of society as a whole, and ensuring its sound governance. ClassNK’s activities are carried out based on the following principles.

Code of Ethics	1. Observance of Laws 2. Independence, impartiality, and integrity 3. Confidentiality of Information
Management Principles	ClassNK, as an international classification society, will contribute to the world through the activities to ensure the safety of life and property, and to protect the environment.
Vision	(1) The organization aim to open up the future and to lead the society global wide with its high technical level (2) The organization aim to be trusted from relating industries by high level of technology and sincere attitude of doing business (3) The organization aim to be able to use each staff’s various talent by free and open-minded culture
Basic stance Behavior charter	Behavior Guidelines for Compliance
Materiality	Safety Environment Technology Innovation Human resources Governance
Mid-term Management Plan 2017-2021	(1) Promotion of safety/environmental initiatives (2) Promotion of global strategy (3) Promotion of Research & Development (4) Promotion of new business (5) ESG initiatives (6) Response to digital transformation
Annual Business Plan

Materiality and response to ESG

ClassNK selects its essential tasks based on a framework for sustainable development and with consideration towards ESG (environment/society/governance), analysis of the external environment including various societal challenges, and stakeholder needs.

Stakeholders

Stakeholders surrounding ClassNK and the value we offer are as follows.

Clients

Typical subcategories	Values to be provided
Transportation providers	Fair and transparent judgment as a third party Development and maintenance of technical standards required Provision of high quality and prompt service and information Support with problem solving
Manufacturers and service suppliers
Cargo owners (*)
Insurance (*)
Industry associations (*)

(*) having a certain amount of influence on the way of our service regardless of whether they are the direct revenue resource.

Governments/global bodies/NGO

Typical subcategories	Values to be provided
National, regional governments	Technical service as a Recognized Organization (RO) or third party certification body Provision of appropriate information as a specialist Support with administrative matters and collaboration with problem solving
International specialist organizations (IMO/IACS/ITU etc.)	Provision of appropriate information as a specialist Collaboration with problem solving
NGO/NPO

Educational/research institutions

Typical subcategories	Values to be provided
Universities	Collaboration with R&D and human resource training Support on their activities
Research institutions

Employees

	Values to be provided
Employees	Appropriate treatment Fair organization Human resource training Respect for individuality Occupational health and safety

Suppliers

	Values to be provided
Suppliers	Fair and transparent transactions

International/regional community

	Values to be provided
International community	Proactive contribution to society Independent activities for global environmental problems
Regional community	Respect of international norms including human rights, cultures and customs, and domestic laws Contribution to regional economies and societal development

Compliance

ClassNK taking a role of the impartial third-party certification body has established “Code of Ethics” as the fundamental basis of its business operations.

Code of Ethics All personnel of ClassNK and its group companies shall comply with the following provisions. 1. Observance of Laws ClassNK shall strictly observe all laws and social standards. 2. Independence, impartiality, and integrity ClassNK shall ensure its independence to provide services as an impartial third-party organization. Any commercial, financial or other pressures which may compromise impartiality shall not be allowed. When a relationship poses an unacceptable threat to impartiality, the relevant service shall not be provided. Actual or potential conflict of interests must be systematically identified and controlled. ClassNK provides all potential customers access to its services without undue financial or other conditions in a non-discriminatory manner. 3. Confidentiality of Information ClassNK shall maintain the confidentiality of information which they have learned in the course of their duties including information pertaining to customers, except when disclosure is authorized such as by agreements between ClassNK and customers or legally mandated.

Under this Code of Ethics, all personnel of ClassNK and its group companies shall build ethical organizational culture and realize fair and appropriate business relationships as well as comply with laws and regulations in order to perform the policies set forth in the management principles and vision faithfully, thus contribute to the development of society through its business operations. ClassNK has developed the “Behavior Guidelines for Compliance” and “Compliance Manual” to put them into practice.

• “Behavior Guidelines for Compliance”
  In order for ClassNK, an independent organization, to continuously and stably provide high quality, fair, transparent and appropriate service, all executives and regular employees of ClassNK shall have a deep sense of ethics for gaining social trust and aim to practice fair and faithful behavior.
• “Compliance Manual”
  All executives and employees regardless of position and responsibility will equally and voluntarily comply with not only this manual, but also any laws and rules related to our business activities with the best of intentions in order to build a much more ethical organization culture.

Behavior Guidelines for Compliance

Internal Control System

ClassNK has continuously considered governance systems appropriate for the foundation engaging in third-party certification. ClassNK has developed and operated an internal control system that includes “the system and other requirements defined by the Japan’s Ministry of Justice ordinance to maintain the appropriate operation of a general incorporated foundation” to reinforce corporate governance.

Based upon this internal control system, ClassNK treats the prevention of improper acts along with the growth of competitiveness and profitability, employ a mid- to long-term point of view, strive to build a firm business foundation for future development, ensure the appropriateness and legality of ClassNK operations, and efficiently pursue organizational objectives while satisfying the requirements of stakeholders and executing business activities to contribute to the development of our economy and society.

ClassNK has developed and thoroughly disseminated an “Internal Control Manual” to employees in order to build, institute, and continuously improve the internal control system as well as to reinforce its effective and complete execution.

• “Basic Policy on Internal Control”
  ClassNK shall maintain an internal control system according to the “Management Principles and Vision”, which provides a common consciousness, objective, and sense of ethics throughout ClassNK.
• “Regulations for Risk Management”
  In all business and operations related to the achievement of ClassNK objectives, ClassNK shall identify, analyze, and evaluate factors that adversely affect the achievement of said objectives as risks and provide appropriate measures against said risks.

Health, Safety & Environmental (HSE) Policy

As an international classification society providing services to ensure the safety of life and property at sea and to promote the protection of the marine environment, ClassNK considers health, safety and environment to be of the utmost importance. Through the implementation of our own occupational health and safety management system developed based on the relevant standards, ClassNK is striving to continually improve our health and safety performance. ClassNK also contributes to social development through activities aimed at promoting the protection of the marine environment.

ClassNK established the HSE Committee in order to promote the Society’s HSE and reviews and/or monitors Health, Safety & Environmental Policy, Occupational Health & Safety (OH&S) objective, OH&S performance, results of internal audit, etc. periodically. Our Health, Safety & Environmental (HSE) Policy states our commitment to health, safety and environment. This policy is communicated to all employees.

SDGs mapping of ClassNK business activities

ClassNK contribute to the accomplishment of SDGs through these business activities.

Business activities.	Related SDGs
Safety surveys/audits in line with ClassNK technical rules and regulations including Load Line and SOLAS
Environmental surveys/audits in line with ClassNK technical rules and regulations including MARPOL (Oil/hazardous liquid substances /sewage / waste / air pollution), BWM, AFS, and HKC
Working condition inspections in line with regulations including MLC
R&D (rule development/ survey technology innovation/marine environmental protection/revolutionary technology development)
Certifications on renewable energy
Certifications on management systems, HSE, GHG emission, seafarer training institutions, and working condition
ClassNK Academy and other training services
Provision of support on design/construction/operation and regulatory requirement, software for optimization, and any solutions related to industry challenges
Ensuring management base (human resources, governance)