Global leaders of shipping industry present plans for sustainable future

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Oct 2011

The Sustainable Shipping Initiative (SSI), a coalition of global companies and NGOs, will today present their collective Vision for the sustainable future of international shipping.

It is the first time such a wide-ranging approach has been taken to the challenges facing an industry which carries 90% of world trade.
The Vision for 2040 has been signed into action by the Initiative’s seventeen members, which have a combined market value of half a trillion dollars, to address the three principal challenges facing the industry: rising oil prices, structural shifts in world trade and growing scrutiny of the industry’s social and environmental performance.
Jonathon Porritt, Founder Director of Forum for the Future, the global non-profit organisation co-ordinating the Initiative, said: “Shipping has reached a crossroads. After years of focusing on a commodity-focused ‘boom and bust’ business model, leaders in the industry have aligned to ask more of themselves – emphasising the urgent need to take the lead in reshaping the entire industry ahead of regulation.”
The Vision, supported by four implementation work streams, will be presented to representatives of the shipping industry at a launch event in London this evening, at 6.30pm GMT/ 2.30pm ET (US). It has five key objectives for the industry:
Communities To become a more trusted and responsible partner in the communities in which the industry operates;
Employment To provide a safe, healthy, secure and rewarding work environment to the over 2 million people working in shipping;
Energy & Environment To diversify the industry’s energy mix and ensure greater resource efficiency, make dramatic reductions in greenhouse gas intensity and ensure responsible governance of the oceans;
Governance To promote greater transparency and accountability at corporate and industry levels;
Innovation To enable the financing and large scale uptake of technological and operational innovations that will lead to a step-change in the industry’s performance on sustainability.
Maersk Line Chief Operating Officer, Morten H. Engelstoft, said: "We are in business for the long-term and therefore take an active role in defining the future we want to be part of. Delivering on a joint vision for our industry will help drive a needed change in operating models – thereby allowing economies to grow, trade to develop and social wealth to spread."
The Vision involves the set-up of work streams tasked with kick-starting implementation of the objectives. The first of these address the following areas, which offer the greatest potential to accelerate change:
Innovative financing models – developing new finance mechanisms to enable faster roll-out of new technologies and innovation.  
Enabling a step change in energy technology innovation and uptake – identifying and overcoming key non-financial barriers to the uptake of low-carbon and energy efficient technologies. 
Reducing the life-cycle impact of ship materials – by developing a system for tracking and monitoring materials used and reused in ship building, with the aim of progressively phasing out unwanted materials and increasing opportunities for and the efficiency of recycling – as well as weeding out poor working practices.
‘Standard of standards’ – producing an overarching framework and governance structure to manage and align the growing number of beyond-compliance standards and rating systems.
Royal Sun Alliance Marine Director, Richard Turner, said: "As one of the world's leading marine insurers, we are delighted to be part of the coalition. A framework of this kind will prove invaluable in safeguarding the future of the industry and helping to mitigate the environmental impact of shipping."
The SSI invites organisations in the wider industry wishing to participate in the four work streams. These will start work in March and report to the SSI Steering Group on a regular basis. The overall Initiative will report publicly on a biannual basis.
In developing the Vision, the Initiative drew on its members’ expertise in ship owning, chartering and operations, shipbuilding and engineering, marine finance, technical standards and the global supply chain.
Unilever Chief Supply Chain Officer, Pier-Luigi Sigismondi, said: "Unilever has a bold ambition to double its business and halve its environmental impact and has underpinned this ambition with the Unilever Sustainable Living Plan; nothing less than the basis of a new business model. Quite simply, the only way we will achieve our ambition is by working in partnerships with all our stakeholders – from suppliers to NGOs. With shipping being an increasingly important part of supply chain, the Sustainable Shipping Initiative (SSI) represents a unique opportunity to reduce environmental impact not only for Unilever, but right across the industry."
Comment from other SSI partners:
ABN AMRO CEO of Energy Commodities and Transportation, Harris Antoniou, said “ABN AMRO understands that finance will play an important role in facilitating the industry's sustainability drive, as shipping companies will invest heavily in technological innovation. As a leading ship finance bank we feel an obligation to contribute to shaping the future of shipping. The timing of the initiative is very good as industry players start committing real money to making their business more sustainable.”
Bunge Managing Director Ocean Freight Giovanni Ravano said: “Bunge is committed to improving the sustainability of the global food and agricultural production chain.  To do so requires attention to our own operations, but also the promotion of better agricultural practices and more sustainable logistics.  Shipping is a natural focus, and we believe the multi-stakeholder approach of the Sustainable Shipping Initiative is an excellent way to design and promote positive ideas and solutions. Bunge is proud to sign off on this vision and participate actively to the work stream.”
Cargill Head of Ocean Transportation, Roger Janson said, “Cargill recognizes the potential benefits that the Sustainable Shipping Initiative can bring to the global shipping industry and we are proud to be an active participant. We live in a world of finite resources.  But demand for food, industrial and energy commodities will continue to soar in the years ahead and the world must find ways to effectively and sustainably feed, house and power a population expected to reach 9 billion people by 2050.  To do this successfully, we need to identify smart ways to conserve natural resources, protect the environment, support the communities in which we operate and promote sustainable business growth. The Sustainable Shipping Initiative, bringing together a variety of stakeholders across the shipping supply chain, can play an important role in identifying and promoting opportunities and driving best practice.” 
Carnival UK CEO David Dingle, (on behalf of Carnival Corporation) said, “From Carnival’s perspective the Sustainable Shipping Initiative should support an expanding, well-rewarded and supported workforce and network of suppliers and to enhance significantly the economies and services of the communities its ships visit. From an industry perspective it will ensure that future growth across the shipping industry is maintained economically, socially and environmentally. It is a tough challenge but one to which we are fully committed.”
China Navigation Company Managing Director, Tim Blackburn said, “China Navigation is very pleased to have participated in the development of the SSI Vision 2040. We are committed to the development of solutions that will assist our industry to be more environmentally and socially responsible, whilst simultaneously driving improvements in its economic efficiency.”
Gearbulk Chairman and CEO Kristian Jebsen said, "Shipping has a vital role to play in ensuring we achieve environmental, social and economic sustainability.  The SSI initiative is a very good platform for ensuring that we, as an industry, are able to fulfil our responsibilities both now and in the future."
Lloyd's Register Marine Director Tom Boardley said, “The SSI is an important initiative. At a time when many are struggling to stay in business investing in a cleaner future is perhaps not everybody’s favourite subject. But what makes a business sustainable is changing. At Lloyd’s Register we are putting ever more resources into helping owners, builders and all marine stakeholders better understand the implications of new regulation and technology in our more complex world.”
Rio Tinto Marine’s Chief operating officer Michael Harvey, said:  "Participation in the Sustainable Shipping Initiative is an important part of Rio Tinto Marine’s commitment to a world in which shipping is a trusted partner that transparently fulfils its responsibilities in all areas of sustainability. The continuing growth in demand for shipping services globally presents challenges, which have been identified by the SSI. These challenges need to be addressed if the industry is to perform to the increasingly stringent standards that have been, and are expected to be adopted by stakeholders. Rio Tinto Marine is excited to be working with the other forward-thinking members in developing the ideas and initiatives that support the SSI Vision."
Source: The Sustainable Shipping Initiative (SSI)