KfW IPEX-Bank became the first German bank to join the initiative “Responsible Ship Recycling Standards” (RSRS). This initiative aims to include scrapping clauses in accordance with international standards into loan agreements.
With a lending volume of 13.9 billion euros in 2017, KfW IPEX-Bank is one of the top 5 ship financiers in the world, and, by joining the RSRS initiative, it aims to underline its commitment to the environmental and to social compatibility.
The RSRS initiative incorporates scrapping clauses according to international standards, such as the “Hong Kong Convention”, into loan agreements. These clauses obligate shipping companies to ensure that all ships carry a “Green Passport” that provides an overview of all the hazardous materials on board.
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Even though it cannot yet be predicted just how far these clauses will go throughout the market, Andreas Ufer, Member of the Management Board of KfW IPEX-Bank, is hoping for some positive effects:
This is an important way to raise awareness about the significance of sustainable ship recycling. We view the RSRS initiative as a long-term project that will continue to develop and welcome more and more members around the world.
The RSRS initiative wants shipping companies to provide at least the minimum standards of occupational safety and environmental protection when scrapping their ships, and to treat scrapping as part of their own value-added chains.
At the end of May 2017, ABN Amro, ING and NIBC established the Responsible Ship Recycling Standards (RSRS). The initiative now has eight members worldwide, with Nordea, DNB, SEB and Export Credit Norway having joined the three founding banks.
