TCFD

Task Force on Climate-Related Financial Disclosures

Kirby has committed to its stakeholders to enhancing its ESG disclosures by integrating elements of TCFD into its sustainability reporting. Established in 2015 by the Financial Stability Board (FSB), the Task Force on Climate-related Disclosures (TCFD) was asked to develop recommendations for more effective, voluntary climate-related disclosures that could promote more informed investment, credit, and insurance underwriting decisions.

The task force developed four widely adoptable recommendations on climate-related financial disclosures that are applicable to organizations across different sectors and jurisdictions. The recommendations represent core elements of how organizations operate: governance, strategy, risk management, and metrics and targets. Each of the TCFD thematic elements is reflected in the structure of our disclosures on the following pages. In this initial TCFD report, Kirby has primarily focused on scenarios in the marine transportation business which represents 98% of the company’s greenhouse gas emissions. We anticipate further enhancements, refinements, and disclosures in the future as the experience and practice of TCFD reporting becomes more common amongst global companies.

Petrochemicals are a key driver of Kirby’s growth

“The chemical sector is the largest industrial consumer of both oil and gas.”

“Petrochemicals, components derived from oil and gas that are used in all sorts of daily products such as plastics, fertilizers, packaging, clothing, digital devices, medical equipment, detergents and tires – are becoming the largest drivers of global oil demand, in front of cars, planes and trucks.”

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Kirby’s Marine Transportation Group moves thousands of cargo tons of petrochemical, refined, and agricultural products annually. According to the National Waterways Foundation, moving products via the waterway is the safest and most environmentally friendly mode of transportation. As noted in the graph below, demand for these products has increased over the years and according to the IEA is expected to do so moving forward. Therefore, the company is met with a dual challenge. ​Global demand for petrochemicals is forecasted to continue increasing, but the ​manufacturing and delivery of these products is expected without additional carbon emissions. Growth for business will continue to increase thus the rise in potential CO2 emissions from fuel usage to move said products. Under the two-degree Celsius framework as recognized by the Paris Agreement within the United Nations Framework Convention on Climate Change, stakeholders have requested that companies do their part in reducing carbon dioxide emissions. Kirby is taking action ​to contribute to the emissions reduction effort and is developing its corporate short- and long-term strategy. ​We are continuously monitoring forecasts through the Board’s oversight and a network of sustainability teams along with an ESG Executive Committee, Kirby is well positioned to ​implement its resilience strategy and succeed in reducing emissions. 

The petrochemical industry remains the largest source of oil demand growth

Total petrochemical consumption outlook

Despite the decline in demand due to the COVID-19 pandemic, oil demand for petrochemical feedstock is expected to grow by 3 mb/d through to 2030, and by a further 1.5 mb/d to just over 17 mb/d in 2030.

IEA World Energy Outlook 2020

Kirby Corporation plays a critical and positive role in society by transporting products that ultimately enable a better quality of life for people.

Black Oil

Product List:
  • Crude Oil
  • Asphalt
  • Fuel Oil
  • Carbon Black
  • Vacuum Gas Oil
  • Vacuum Tower
  • Bottoms
  • Bunker Fuel
  • Residual Fuel
  • Etc.

Pressurized

Product List:
  • LPG
  • Propane
  • Butadiene
  • Isobutane
  • Propylene
  • Ethylene
  • Butane
  • Raffinate
  • Natural Gasoline
  • Etc.

Petrochemicals

Product List:
  • Methanol
  • Ethanol
  • Reformate
  • Naphtha
  • Ethylene
  • Propylene Oxide
  • Menoethylene Glycol
  • Vinly Acetate Monomer
  • Benzene
  • Ethyl Benzene
  • Toluene
  • Xylene
  • Paraxylene
  • Styrene
  • Caustic Soda
  • Acrylonitrile
  • Etc.

Refined Products

Product List:
  • Kerosene / Jet Fuel
  • No. 2 Oil
    – Diesel Oil
    – Heating Oil
  • Lube Oil
  • Etc.

Agriculture

Product List:
  • Ammonia
  • Ammonium Thiosulfate
  • Urea Ammonium Nitrate (UAN)
  • Etc.

Governance

Disclose the organization’s governance around climate-related risks and opportunities.

a) Describe the board’s oversight of climate-related risks and opportunities.

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Kirby Corporation’s Board of Directors oversees the Company’s environmental, social and governance (ESG) initiatives and disclosures. The Board is committed to elevating Kirby’s leadership profile and reputation among our investors, government policymakers, stakeholders, and others on ESG issues and practices and believes the Company has a unique opportunity to be an industry leader on these important issues.
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The Board’s oversight of ESG is codified in the Governance Committee Charter. The Governance Committee meets quarterly to discuss ESG issues. In the past year, these meetings have included reviews of Kirby’s ESG disclosures, including the 2020 Sustainability Report, external ESG ratings of the Company, Sustainability Accounting Standards Board (SASB) disclosures, and TCFD disclosures.
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The Board also engaged in strategic discussions regarding incident/emergency response and recovery, (i.e. hurricanes), capital allocation, workplace and vessel safety, energy transition, and various alternative future business scenarios.
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The Audit Committee oversees Kirby’s management of enterprise risk, including climate-related risks and regulations that could impact the Company.
b) Describe management’s role in assessing and managing climate-related risks and opportunities.
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At the management level, climate-related risks and assessing opportunities ultimately resides with the Chief Executive Officer, who chairs the ESG Executive Committee. The Committee includes the segment presidents, Executive Vice President and Chief Financial Officer, Chief Human Resources Officer, Vice President and General Counsel, and Vice President of Investor Relations. Reporting to this Committee is a cross-functional team designed to advise executive leadership and the Board on managing climate and sustainability-related risks and assessing future business opportunities.

Strategy: Overview

Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.
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TCFD characterizes climate-related risks in two categories:
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Transition risks – Risks related to the transition to a lower-carbon economy including policy and legal risk; technological risk; market risk (for example, consumer preferences); and reputational risk. Transition risks include policy constraints on emissions, imposition of carbon tax, water restrictions, land use restrictions or incentives, and market demand and supply shifts.
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Physical risks – Risks associated with physical impacts from climate change, including the two-degree Celsius change, may impact company assets, personnel and operating companies. These impacts may include acute physical damage from variations in weather patterns (such as severe storms, floods, and drought) and chronic impacts, such as sea-level rise and desertification. Physical risks include the disruption of operations or destruction of property.
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In the following slides, Kirby has identified climate-related resiliency themes, risks, and opportunities with potential impact to our business over short (1–3 years), medium (3–5 years) and long-term (5+ years) time horizons and the Company’s approach to each.
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Kirby’s resiliency themes of risk assessment, strategy, engagement and operational efficiency helped guide our team to better understand our roles and responses to said risks.

Strategy: Transition Risks

RISK:

Increased climate-change-related
regulations and disclosures
[Long Term]

Potential Financial Impact
  • Capital investments into new technologies to improve data capture and facilitate increased disclosure
  • Capital investments to retrofit existing equipment
  • Increased costs for enhanced emissions reporting and oversight
  • Additional administrative, compliance, and legal costs
Strategy & Risk Management
  • Proactive implementation of monitoring, data aggregation, and calculations
  • Reporting in accordance with SASB, TCFD, and other reporting frameworks
  • Increase monitoring of carbon emissions associated with fuel consumption associated with marine operations to identify and assess operational or technological improvements

RISK:

Changes to oil and gas exploration regulations
[Short Term]

Potential Financial Impact
  • Distribution & Services oil and gas businesses could be impacted financially with loss of business and revenue
  • Impact to market segments as the need to move certain petroleum products could decline
  • Low-cost feedstock advantages for U.S. petrochemical companies could diminish, reducing production and likely limit new petrochemical plant construction
Strategy & Risk Management
  • Monitor legislation and potential regulatory/administrative proposals
  • Research and monitor new trends in the industry

RISK AND OPPORTUNITY:

Transition to low-emissions technology in the marine fleet
[Long Term]

Potential Financial Impact
  • Investment in the development of new technologies, assets, and vessels
  • Retrofit equipment, modify mariner training, and adopt new practices and procedures including operating standards for new equipment
  • Potential increase or decrease in operating, engineering, and asset costs
  • Potential impact to valuation of certain existing vessels
  • Opportunity to be an industry leader in the development and adoption of low-emissions marine equipment
Strategy & Risk Management
  • Long-term strategy of investing in efficient boat fleet, including integrating high tier standard marine engines and vessel hull design
  • Early partnership with original equipment manufacturers (OEMs) regarding designs for low emission marine engines to achieve future emission standards
  • Proactive engagement with customers to understand their future carbon emissions targets and develop complimentary initiatives
RISK AND OPPORTUNITY:
Distribution & Services customer equipment requirements transition from diesel power to alternatives fuel sources such as hydrogen or electric
[Short Term]
Potential Financial Impact
  • Development of new distribution and dealer relationships with OEMs
  • Capital investment in new technologies and R&D
  • Opportunity to be an industry leader in the distribution of low-emissions alternative power sources for vehicles, trucks, oilfield equipment, and power generation
  • Adopt new practices and modify technician training including operating standards for new equipment
Strategy & Risk Management
  • Executive management plus Board oversight and assessment to monitor emerging innovative technologies in the marketplace
  • Investment in new technologies
  • Engage with OEMs to lead the transition and develop new advanced technologies
  • Proactive engagement with customers to understand their future carbon emissions strategies
  • Hydrogen infrastructure is extensive along the Gulf Coast; utilize this to develop knowledge about supply chain opportunities

RISK AND OPPORTUNITY:

Increased concerns of stakeholders (e.g., investors, customers, regulators) regarding lower carbon emissions
[Medium Term]
Potential Financial Impact
  • Unexpected changes in commodity prices (i.e. fuel costs)
  • Potential impact on valuation of certain existing vessels
  • Opportunity to develop an industry leading position in the development and adoption of low-emissions marine equipment
Strategy & Risk Management
  • Executive management plus Board oversight and assessment to follow market trends and stakeholder concerns
  • Monitoring and disclosure of the Company’s carbon emissions with longterm targets to reduce impact on the environment
  • Adopt long-term strategy to develop new efficient low carbon emission vessels
  • Early partnership with OEMs to develop low emission marine engines
  • Proactive engagement with customers to understand their future carbon emissions targets
RISK AND OPPORTUNITY:
Increased demand for eco-friendly fracking equipment
[Medium Term]
Potential Financial Impact
  • Demand for low noise, electric, or dual fuel fracking equipment could offset some of the demand for conventional fracking equipment that may be reduced due to negative perception of fracking industry
  • New revenue streams for manufacturing of eco-friendly pressure pumping equipment
Strategy & Risk Management
  • Proactive engagement with customers to understand their future carbon emissions strategies
  • Investment in new technologies
  • Develop and construct new eco-friendly technologies and equipment to support customers transitioning away from conventional fracking equipment

RISK:

Cargo spills or incidents which occur as a result of a climate-related event (i.e. hurricane, high water) results in negative stakeholder perception
[Short & Long Term]
Potential Financial Impact
  • Potential reduced revenue from negative customer impacts of the incident
  • Increased litigation exposure, mitigation, and clean-up costs
  • Higher insurance rates
Strategy & Risk Management
  • Effective U.S. Coast Guard training programs for all mariners
  • Safety culture committed to Zero Harm to the Environment, Equipment and People
  • Train well-prepared incident response teams and perform emergency drills with customers, stakeholders, and government authorities
  • Spill contingency plans
  • Approved procedures
  • etted equipment
  • Maintenance program and oversight
OPPORTUNITY:
Be an industry leader in the transition of marine vessels to low-emissions technology
[Medium Term]
Potential Financial Impact
  • Increased revenue opportunities from customers seeking vendors with leading ESG platforms
  • Increased development costs and investments in new technologies
  • Cost to retrofit existing marine equipment, train mariners, and adopt new practices and procedures
Strategy & Risk Management
  • Executive management plus Board oversight and assessment to follow trends in the marketplace
  • Early partnership with original equipment manufacturers (OEMs) regarding designs for low emission marine engines to achieve future emission standards
  • Proactive engagement with customers to understand their future carbon emissions targets

Strategy: Physical Risks

OPPORTUNITY:
More frequent and severe weather events (i.e. hurricanes) leading to increased delays, business interruption, and damages (including marine vessels and facilities)
[Long Term]
Potential Financial Impact
  • Loss of revenues resulting from extensive delays due to severe weather events and lower barge utilization
  • Increased operating costs
  • Self-insured losses for damage to equipment and facilities
  • Increased litigation exposure and mitigation/recovery expenses in the event of casualties or spills
Strategy & Risk Management
  • Executive oversight of hurricane preparedness
  • Robust hurricane preparedness and emergency management plan
  • Proactive coordination and effective communication with the industry and government stakeholders such as the U.S. Coast Guard, Gulf Intracoastal Canal Association, etc.
  • Contingency plan identifies safe berths for weather events to protect marine assets
OPPORTUNITY:
Long-term changes in climate patterns could result in new storm patterns and more frequent high water/flooding conditions on the inland waterways
[Long Term]
Potential Financial Impact
  • Reduced revenue as a result of increased delay days
  • Reduced revenue as a result of tow size restrictions
  • Increased operating costs resulting from additional boat/horsepower requirements, reduced efficiencies, and higher maintenance
  • Increased fuel consumption per ton mile
  • Increased costs to mitigate and potential legal expense associated with navigation incidents
  • Increased administrative costs to advocate for waterway infrastructure repairs and maintenance
Strategy & Risk Management
  • Effective leadership, participation, and involvement in forecasting, preparing for, and managing high water
  • Coordination with industry peers to establish additional horsepower support
  • Proactive engagement associations that can advocate waterway infrastructure repairs and maintenance
  • Effective communication strategy
  • Additional safety preparedness policies and procedures to manage through high water situations
  • Effective training programs for mariners to safely navigate high water conditions

Risk Management

Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.
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Kirby is already experiencing some of the consequences of growing climate-related risks. While many companies are forecasting what could happen in the future, Kirby is exposed to certain climate-related risks in the Company’s marine transportation business given its exposure to hurricanes and high water. In accessing TCFD disclosure and climate-related risks, the impact of weather volatility is a risk that has been identified as evidenced by a National Oceanic and Atmospheric Administration report on Global Warming and Hurricanes.

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The Board has the overall responsibility for risk oversight, with a focus on the most significant risks facing the company, including climate change. The Board implements its risk oversight function both as a whole and through delegation to the Committees. Each of the Board Committees is responsible for oversight of risk management practices for categories of risks relevant to its functions, with the Governance Committee being responsible for risks and opportunities related to ESG and the Audit Committee being responsible for the oversight of the Company’s comprehensive risk management plan.

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As part of our enterprise risk management process, Kirby is performing a scenario analysis of risks and opportunities associated with changing weather patterns that could have significant impact on our marine transportation operations. Scenario planning is not intended to predict the future, but to highlight potential climate change risks and better prepare the Company for possible future business interruptions and decisions.

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The following slides are examples of Kirby’s scenario planning for hurricanes and seasonal high river level conditions, which are growing climate-related risks to the Company’s marine transportation business. In these scenarios, the Company has highlighted why these events are important, the potential financial and operational impacts, and the strategy, processes, and procedures management uses to mitigate the risks.

Hurricanes and tropical storms are an acute physical risk. Climate change could result in hurricanes becoming more frequent and severe which could impact the waterways, equipment, and potentially create a loss of business opportunities. In order for Kirby to thrive in this type of business, the Company must stay true to its core values of No Harm to People, Equipment, and to the Environment. Under these core values and with governance, risk, strategy and management, the Company positions itself to be resilient to these acute physical risks going forward as the nation’s largest tank barge operator.
Why are hurricanes a risk for the marine transportation industry?
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Extreme precipitation, wind, and storm surge results in significant disruption and delays to barge movements, customer facilities, waterway infrastructure, and other stakeholders in the path of the storm
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Hurricanes are highly unpredictable with wide weather variability making it impossible to predict the severity of damages
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Potential Impacts:
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By authority of the U.S. Coast Guard, all waterways in the path of a hurricane are closed or travel is restricted for days leading up to and after a storm, thus hindering the Company’s ability to move customer products and resulting in loss of revenue
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Damage to the waterways can reduce barge traffic for extended periods of time and limit business opportunities
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Refineries, petrochemical plants, and port terminals may temporarily shutdown before and delay opening after a storm which limits business opportunities for barges to move products and has further ramifications for stakeholders:

  • Creates a ripple effect for customers
  • End user of products may be impacted by supply shock and higher commodity prices
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Equipment to be secured in advance of the storm, increasing operating costs
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Navigational incidents caused by storms can be very costly and result in extensive mitigation and litigation exposure
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Damages to equipment and onshore facilities can be costly which can lead to higher operating expenses
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Power outages can cause a delay of business
Impact Example – 2017 Hurricane Harvey
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Significant costs and delay impacts resulted in lost revenue and lost business; oil prices spiked
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Created challenging operating conditions
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Potential Impacts:
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More than 10 oil refineries temporarily shutdown during Hurricane Harvey
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Financial metrics:
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The cost and delay impact of Hurricane Harvey was approximately $0.07 per share
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Lost revenue and business: 2017 Q3 – $318M vs. 2016 Q3 – $359M
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Delay days: 2017 Q3 – 1965 vs. 2016 Q3 – 929
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Operating margins: Inland Business: 2017 Q3 – 11.3% vs. 2016 Q3 – 15.4%
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Storm disruptions: 50% of U.S. petroleum capacity and 25% of refinery capacity
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Direct cost impact from Hurricane Harvey:
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Property damages
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Office building damages
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Clean-up expenses
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Equipment losses
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Boat maintenance and repairs
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Barge maintenance and repairs
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Increased fuel costs
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Surveyor fees
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Legal fees
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Ecological restoration
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Employee impacts:
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Many Kirby employees live along the Gulf Coast and are personally impacted by hurricanes, reducing availability of mariners and staff during the recovery phase
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Kirby Disaster Relief Fund is activated to supply employees with financial assistance and enable a faster recovery

  • Nonprofit charitable organization that provides support to Kirby employees, families, and communities affected by natural disasters or qualified family hardship

Strategy & Risk Management

Crisis Readiness – Governance
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Kirby coordinates advance hurricane planning with the industry, customers, regulatory bodies, and government agencies
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Kirby management maintains and executes an internal ‘Hurricane Safety Plan’ and works in conjunction externally with the Gulf Intracoastal Canal Association on a ‘Joint Hurricane Team’
Hurricane Safety Plan
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The purpose of the plan is to familiarize Kirby Marine personnel (both vessel and Shoreside) with the policies and procedures that apply in the event of a tropical cyclone or storm surge. The procedures will provide a consistent and uniform work practice that will be activated as conditions warrant to help safeguard personnel, equipment, property, the environment, and foster continual improvement.
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Executive Management, Safety Management, Operations, Legal and the Quality Steering Committee have oversight over hurricane preparedness
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Each year the Hurricane Safety Plan is accessed and modified as appropriate based on lessons learned in the previous year
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Management Roles
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Incident Commander, Operations Section Chief, Planning Section Chief, and Liaison Chief
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Essential personnel group
Joint Hurricane Team
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Joint Hurricane Response Protocol
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The Protocol is intended to focus on the working relationships, roles, and responsibilities of the USCG, USACE, NOAA, states and the inland barge industry, partnering together to effectively and expeditiously secure the waterways prior to storm landfall and restore them afterward. The protocol does not abridge or supplant specifics of existing USCG and USACE hurricane response plans.
Crisis Readiness – Preparation Strategy
Monitoring & Assessment
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USCG and Kirby management monitor hurricane development and trajectories via the National Oceanic & Atmospheric Administration (NOAA), assess the risk, and prepare and notify employees of potential development scenarios during hurricane season
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Management assesses potential adverse weather conditions and propensity for development routinely during hurricane season
Stakeholder Communications
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Although hurricanes are not exactly predictable, unlike other storms, they may develop in a manner that provides forewarning. The development period of time is critical preparation to implement safety action plans, to lessen potential impact and damage to equipment, and to mitigate potential threats to the environment.
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Where tropical weather conditions have the potential to impact Kirby equipment and/or one or more Kirby facilities, the Incident Commander will establish email communications with all shoreside and vessel staff, updating individuals with the storm’s current status as well as the storm’s projected path. As the storm’s cone of uncertainty begins to narrow, the Incident Commander and essential personnel implement the safety action plan including assessment of the particular conditions and appropriate preparations in response to the threat assessment.
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Notify and keep customers informed of actions taking place regarding hurricane safety and preparedness
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Ensure all vessels have hurricane plans which are reviewed and approved
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Ensure crew and staff are aware of risks; Provide adequate supplies should employees remain at office locations
Strategy & Risk Management
Port Conditions for Hurricanes and Severe Weather
Risk Mitigation & Safety Preparedness
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Spill contingency plans
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Approved procedures
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Vetted equipment
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Maintenance program and oversight

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Increasing levels of preparedness align with USCG pre-storm conditions (Whiskey, X-Ray, Yankee, Zulu)

2020 Named Storms Impacting Kirby Operations

  • Cristobal – June 7
  • Hanna – July 25
  • Marco – August 24
  • Laura – August 27
  • Sally – September 16
  • Beta – September 22
  • Delta – October 9
  • Epsilon – October 21
  • Zeta – October 28
  • Iota – November 17
High water is a chronic risk. If climate-related changes result in storms becoming more severe or frequent, increased precipitation upriver (i.e. St. Louis, Cincinnati) results in a higher likelihood of high water conditions downriver (i.e. New Orleans).
Why is high water a problem for the marine transportation industry?
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Acute Impact:
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Hazardous situations arise:

  • Water current velocity increases which can increase the rate that barges and tugs move
  • Eddies can form under river bends and water flows in different directions could create potential navigation risks
  • High water conditions could increase risk of navigational incidents
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Potential financial impact:

  • Mandated waterway closures and daylight-only travel restrictions implemented by the Coast Guard increase delays and may reduce revenue
  • Reduced tow size requirements may lead to reduced revenue
  • Increased operating costs for additional boats at bridges and docks
  • Increased costs to mitigate and litigate potential navigational incidents
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Chronic Impact:
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High water allows for accelerated wear and tear on locks, docking facilities, and reduced waterway draft
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Results in "choking" barge traffic to less than optimal rates
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Results in more trips for less cargo, reducing operating efficiencies and increasing maintenance costs per tonmile of cargo transported
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Allocate internal resources to advocate for needed waterway infrastructure repairs and maintenance
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Reduced barge load volumes based shallower waterway draft that is more fuel burned per ton of cargo transported (ton-mile)
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Risk to equipment of running aground; navigational issues arise from the deterioration from the waterway

Strategy & Risk Management

Crisis Readiness – Governance
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Industry is governed by the Coast Guard’s Waterways Action Plan (WAP) during periods of high water
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In addition to WAP compliance during periods of high water, Kirby has developed additional safeguards to mitigate the risk to people, environment, and equipment
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Active leadership, participation and involvement in forecasting, preparing, and managing high water
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State – Government Land Office
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Industry – Coordinate with peers to establish additional horsepower support at all bridges
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Government agencies – U.S. Army Corps of Engineers, U.S. Coast Guard
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Trade association

  • Waterways Council, Inc. - the only national organization that advocates for a modern, efficient and wellmaintained of inland waterways, including lock and dam infrastructure, and channel maintenance
  • Gulf Intracoastal Canal Association - mission is to facilitate commerce through ensuring safe, reliable, and efficient Gulf Coast waterways
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Foundations – National Waterways Foundation

  • The National Waterways Foundation is a center for research and learning where industry leaders and thinkers can address public policy issues related to America's inland waterways system
  • Through studies, education and training programs, grants, forums and similar activities, the Foundation helps the public to understand how to maintain our waterways system, enhance its capabilities and promote its value in the years ahead
Crisis Readiness – Preparation Strategy
Monitoring & Assessment
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USCG and Kirby management monitor high water levels via the National Oceanic & Atmospheric Administration (NOAA), assess the risk, and prepare and notify employees of potential situations during high water season
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Assessment takes place weekly during high water season
Communications
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Daily High Water Report – includes all vessels on the river or destined for the Mississippi River System. This report provides information to assist in addressing crewing during high water events given the potential risks associated with navigating an area affected by high-water.
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High Water Conference Calls – The VP of Traffic hosts regular conference calls with members of the commercial and operations teams designed to heighten communication and awareness of high water conditions operating restrictions
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Weather updates, river forecasts, number of vessels on as well as destined for the river, fleet capacity updates and comments from the executive staff make up the meeting
Risk Mitigation & Safety Preparedness
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Employ manning and vessel strategies to support safety objectives and reduce navigation incidents
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High water mooring plans initiated
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Prohibit square-ends of barges facing upstream at fleets and docks
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Mandatory usage of assist vessels entering and exiting certain locks
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Tonnage reductions on vessels transiting in high water (reduced tow-size)

Metrics & Targets

Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.
Kirby Corporation is committed to reducing the negative externalities of climate-related risks. The Company has set targets to address the reduction of our marine fleet’s CO2e emissions. Operational efficiencies, assessment of capital, and new investments in technology will all play a role in limiting our carbon footprint. This is a challenge, but with the proper teams and strategy in place, we believe this is achievable. Since 2015, we have reduced relative CO2e emissions per barrel of capacity by 17% and have established a reduction goal to achieve a total reduction in CO2e emissions of 25% by 2024.
Marine Transportation Fleet
Scope 1 – Direct Emissions
Scope 1: Marine Transportation Fleet CO2e (MT)*
Kirby Corporation
Scope 2 – Indirect Emissions