Press Release

Ship recycling yards worldwide are stepping up efforts to meet increasingly stringent environmental standards. However, independent supervision remains critical to ensure full compliance and protect vessel owners from growing ESG and reputational risks.

According to Sea Sentinels, selecting a compliant yard alone is no longer sufficient—active, on-the-ground enforcement is essential.

Rising Importance of ESG in Ship Recycling

Environmental, Social, and Governance (ESG) principles have become central to the maritime and offshore industries.

Vessel owners are now under mounting pressure from:

• Clients and cargo owners
• Investors and financial institutions
• Regulators and the public

The expectation is clear: ships must be recycled in a safe, environmentally responsible, and transparent manner.

Complex Regulatory Landscape

The regulatory framework governing ship recycling has evolved significantly over the past decade.

Key regulations include:

• The International Maritime Organization’s Hong Kong Convention (HKC)
• The EU Ship Recycling Regulation (EUSRR)
• The International Labour Organization (ILO) guidelines
• The Basel Convention and Basel Ban amendments

Under the EUSRR:

• EU-flagged vessels must be recycled at approved facilities
• Currently, 41 yards worldwide are included on the EU-approved list

Sea Sentinels is actively supporting projects at approved yards in countries such as Norway, Belgium, and Spain.

Why Yard Selection Alone Is Not Enough

Despite regulatory progress, enforcement remains a major challenge.

“Simply selecting an approved yard is not sufficient… enforcement still remains a major challenge today,”
— Rakesh Bhargava, CEO, Sea Sentinels

Sea Sentinels emphasises that:

• Compliance must be actively enforced on-site
• Recycling projects should be managed like shipbuilding in reverse
• Continuous supervision ensures adherence to both regulations and owner policies

The Role of Independent Supervision

Sea Sentinels addresses the industry’s biggest gap—on-the-ground compliance.

Their approach includes:

• Deployment of full-time expert teams on-site
• Monitoring of health, safety, and environmental (HSE) practices
• Documentation of hazardous waste handling and disposal
• Continuous reporting to support final certification

This ensures:

• Transparency throughout the recycling process
• Verifiable compliance with international standards
• Reduced risk exposure for shipowners

Proven Track Record: Zero Incidents

Sea Sentinels has delivered zero-incident recycling projects across major global locations, including:

• Turkey
• India
• China (prior to its market exit)

The company continues to expand its presence in Europe while maintaining strong operational capabilities across Asia.

Comprehensive Service Offering

Sea Sentinels provides end-to-end solutions across three core areas:

1. Sustainable Ship Recycling
2. Inventory of Hazardous Materials (IHM) and maintenance
3. Lay-up services

Additionally, the company supports:

• Yard benchmarking and audits
• Due diligence for facility selection
• Lifecycle compliance management

Managing ESG and Legal Risk

Ship recycling is no longer just an operational decision—it is a strategic ESG issue.

Key risks include:

• Environmental damage
• Worker safety incidents
• Legal liability

Recent rulings in Europe have confirmed that:

• Shipowners can be held accountable for incidents even after vessel sale

“This is a complicated and exhaustive process that cannot be left to chance if owners want to demonstrate credibility and minimise ESG risk,”
— Rakesh Bhargava

Balancing Cost and Compliance

While European yards may offer:

• Lower scrap prices
• Higher operational costs

They also provide:

• Stronger regulatory alignment
• Reduced ESG and reputational risks

Sea Sentinels believes that:

• Investing in sustainable recycling practices
• Backed by expert enforcement

…delivers long-term business value despite lower immediate returns.

Conclusion

The global ship recycling industry is undergoing a fundamental shift.

As regulations tighten and ESG expectations rise, compliance can no longer be assumed—it must be verified.

Independent supervision is emerging as a critical component in ensuring:

• Safe operations
• Environmental protection
• Regulatory adherence

For vessel owners, the message is clear:
Sustainable ship recycling is not just compliance—it is a competitive advantage.

Final Note

Sea Sentinels has specialist expertise and long experience in safe and sustainable recycling of marine assets and can manage every step of the recycling process from benchmarking and vetting of yards and inventory of hazardous materials to independent on-site monitoring by expert personnel to ensure compliance with regulations, with auditable reporting to verify compliance.

Contact

Rakesh Bhargava
CEO, Sea Sentinels
📧 Rakesh.Bhargava@sea-sentinels.com
📞 +60 12 215 0137