Stewardship

On land and sea, A&B's concern for the environment is a top priority.

As Hawaii's fourth largest private landowner, A&B takes very seriously its land stewardship responsibilities and its commitment to the environment. Protective of pristine watershed lands for many decades, in recent years, A&B has formalized conservation management programs for several unique and fragile areas, in partnership with other private entities, government and skilled environmental organizations.

With agriculture a predominant use of its lands, A&B ensures that as the state's largest farmer - via HC&S and Kauai Coffee - sustainable and energy-efficient operating practices are fundamental foundations for these businesses. Conserving soil and water are bedrock principles, evidenced by millions of dollars of investments in drip irrigation, hydroelectric generating facilities, and farming and factory practices that maximize re-use and strive for zero-waste.

And on the sea, with Matson Navigation having provided ocean transportation services between the west coast U.S. and Hawaii for more than 125 years, environmental consideration is evident in its fleet/vessel choices and its operating practices.

On Land

A&B was a founding member of Hawaii's first private-public sector partnership to preserve the states' valuable watersheds - the East Maui Watershed Partnership - established in 1991. Today, nine watershed partnerships now exist across the Hawaiian chain, and A&B is an active member in three, in areas of its land ownership. The mission of these partnerships is to protect essential watershed lands which serve as valuable sources of water for the people of Hawaii.

A&B has also chosen to partner with The Nature Conservancy to protect two important Kauai parcels with renown conservation value, containing flora and fauna unique in all of the world: the Wainiha Preserve and the Kanaele Bog.

Both of A&B's agricultural operations, HC&S and Kauai Coffee Company, are energy self-sufficient, and also serve as sources of renewable energy for their communities, generating electricity from hydropower and the residual plant materials from their agricultural operations. In 2006, Kauai Coffee's Wainiha hydroelectric plant marked a century of producing clean renewable power. HC&S on Maui relies primarily on waste fiber from the sugar extraction process (bagasse) as a fuel source for its power generation equipment, with a factory design (multiple effect evaporation) that makes its sugar refining one of the most energy-efficient refining processes in the world. Excess power is sold to the local electric utility.

A&B is actively investigating other means of increasing its role as an energy producer.

At Sea

Many of the areas Matson serves have exceptional natural beauty and the company is very cognizant of the ocean environment in which it operates. Matson endeavors to be a good environmental steward in the communities it serves, and assist in the development of technological solutions to environmental problems.

Since 1993, Matson has maintained a zero waste discharge policy which means that no solid waste, other than food scraps, is discharged overboard. The program was developed with the Center for Marine Conservation (now known as the Ocean Conservancy). The solid waste is segregated to facilitate recycling and placed in a special "green container," which occupies one of the cargo slots onboard a vessel. The green container is unloaded at one of Matson's terminals, and the recyclables and trash are sent to approved disposal facilities. To date, Matson remains the only container vessel operating company that maintains such a program.

In an effort to further protect the coastlines of the communities Matson serves, the company established the "Matson Environmental Protection Zone" (MEPZ) in 2002. The MEPZ, which must be recognized by all Matson vessels, is the sea area within 50 miles from the nearest land. When a Matson vessel is within the MEPZ, procedures prohibit any discharges through the oil water separator, even though they are legally permitted to do so. The operation of incinerators is also prohibited while in the MEPZ.

When it comes to invasive species and ballast water, Matson has as a policy that 100 percent of the ballast water on our ships is exchanged before the vessels arrive in port. This ensures the company has the cleanest possible ballast water and that no invasive species are released while a ship is in port. Matson has actively participated in ballast water/invasive species committees in California, Hawaii and Washington, as well as a national level.

One of the most significant improvements made to the Matson fleet in recent years has been the addition of four newly-built diesel powered containerships, an investment of over $500 million. These new ships are the company's most fuel efficient vessels and are equipped with new technologies that reduce air emissions and comply with international environmental standards. Matson's newest vessel, the MV Maunalei, has a state-of-the-art oil water separator, equipped with GPS technology and filters that minimize the oil content to a degree that makes the water almost drinkable. The company is also moving forward with a number of initiatives which involve applying new technologies to some of its older ships in order to reduce air emissions and support Matson's overall "green" objectives and targets.

The company's commitment to the environment also extends to land-based initiatives. In 2006, Matson and SSA Marine signed a new "green port" lease with the Port of Long Beach, setting a new environmental standard for terminal leases. As part of the new agreement, Matson will retrofit five vessels in its current fleet to use shoreside electricity, known as cold-ironing, or technology that is at least 90 percent as clean as cold-ironing. In addition, a class of older vessels will be retrofitted with technology that is at least 80 percent as clean as cold-ironing.

Through its innovative environmental practices, outreach programs and partnerships with various organizations, Matson continually strives to protect the environment of the communities it serves. This commitment has been recognized with the American Bureau of Shipping's SQE certification and the U.S. Coast Guard's prestigious Benkert Environmental Award. Beyond the honors it has received, Matson's primary intention for undertaking various environmental initiatives is to ensure that waters and coastlines remain pristine and protected for generations to come.