Norwegian Wealth Fund Acknowledges Thoresen Thai Agencies and Hyundai Glovis for Sustainable Ship Breaking Practices
Norway’s $1.3 trillion wealth fund made an announcement on Tuesday, revealing the lifting of the exclusion of Thoresen Thai Agencies and concluding its observation of Hyundai Glovis. This decision comes after both companies ceased the practice of sending old ships for dismantling on South Asian beaches.
Thoresen Thai Agencies had been excluded from the fund since 2018 due to its involvement in sending decommissioned vessels for scrapping in Bangladesh, where working conditions were considered “extremely poor.” The fund highlighted that the company has refrained from sending ships for scrapping since 2018, making the basis for exclusion no longer applicable. The Council on Ethics recommended revoking the exclusion in May.
Thoresen Thai Agencies was one of four companies excluded from Norway’s sovereign wealth fund in 2018 for the practice of sending end-of-life vessels for scrapping in Bangladesh, Pakistan, and India, where the controversial beaching method is commonly used for ship dismantling.
Hyundai Glovis, under observation since 2022 for its ship scrapping practices in Pakistan and Bangladesh, implemented a new policy for responsible disposal of decommissioned vessels. This proactive approach led to the Council on Ethics recommending the lifting of its observation status.
The maritime industry is witnessing a shift towards safer and more environmentally friendly ship scrapping practices. The Hong Kong Convention, set to enter into force in 2025, reached the required threshold in June, marking a significant milestone more than 14 years after its initial adoption by the International Maritime Organization (IMO).
Additionally, the European Ship Recycling Regulation is playing a crucial role in curbing harmful ship-breaking practices. Large sea-going vessels sailing under EU flags are required to use approved ship recycling facilities listed in the European List, meeting stringent environmental and safety requirements. This regulation aligns with the Hong Kong Convention, and the list of approved yards has been updated to include 48 yards primarily located in Europe and Turkey. The industry is witnessing a positive shift towards sustainable ship-breaking practices, driven by international conventions and regulations.
