page 1 rewarding sustainability anuj chopra 23 october 2014
TRANSCRIPT
Page 1
REWARDING SUSTAINABILITY
Anuj Chopra23 October 2014
Page 2RightShip – Rewarding SustainabilityPage 2
• RightShip
• Finding a green ship in a blue ocean
• EVDI - Environmental ratings
• Port Incentive Program
• Conclusion
TODAY’S DISCUSSION
Page 3RightShip – Rewarding SustainabilityPage 3
ABOUT RIGHTSHIPIndependent company formed in Oct 2001• Houston, Melbourne & London• 240+ customers globally
Ship Vetting & Risk Management• Petroleum & dry cargo vetting service
• Environmental rating & CO2 benchmarking
• Largest provider of third party vetting services• Removed over 950 Ships from customer supply chains in 2013
Award winning Proven System• ISO9001 & ISO27001 certified • Australian Prime Minister’s 2013 Exporter of the Year
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FINDING A GREEN SHIP IN A BLUE OCEAN
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WHO ARE OUR STAKEHOLDERS?
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COMBAT INFORMATION ASYMMETRY
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RIGHTSHIP’S ENVIRONMENTAL RATINGS
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DEFINING EFFICIENCY
RightShip - Rewarding Sustainability
Energy Efficiency Design Index (EEDI) / Existing Vessel Design Index (EVDI)
A formula to calculate the amount of CO2 emitted (in grams) by a vessel for every tonne of cargo carried per nautical
mile based on
• Total engine power
• Fuel type & specific fuel consumption
• Cargo carrying capacity
• Speed
EVDI – vessels built prior to 01 Jan 2013 / EEDI – vessels built post 01 Jan 2013
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EVDI – Basis for Comparison
• Data sources e.g. IHS Fairplay, SVIS, Owners, etc.
• Ship types – 75,000+ vessels
• Data verification during vetting process
• Approximately 7,000 ships in RightShip database verified
• www.shippingefficiency.org
A-G GHG Emissions Rating
• Relative comparison of peer group
• Provides industry framework for comparison
• Identify most efficient vessel
Fact: ~15% of world fleet will have EEDI by 2020.
RightShip - Rewarding Sustainability
RIGHTSHIP’S A-G GHG EMISSIONS RATING
EVDI = CO2 emissiontransport work
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CALCULATING THE A-G GHG EMISSIONS RATING
100,000 DWT Bulker
90,000 DWT Bulker
10% smaller in DWT 10% larger in DWT
4.334 4.064 4.334 3.689 4.459 4.334 3.994 4.007 3.742 4.401
4.159
1 2 3 4 5
EVDI / EEDI
Calculate EVDI Log
Value
Apply Weights to Log Values
Calculate Z-Score
GHG Emissions
Rating
110,000 DWT Bulker
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LET’S COMPARE
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Holistic Rating
• Recognises performance and behaviours above compliance.
• Calculated environmental risk parameters
• Vessel performance
• Third party environmental factors
RightShip - Rewarding Sustainability
ENVIRONMENTAL STAR RATING
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PORT INCENTIVE PROGRAM
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PORT METRO VANCOUVERECO ACTION PROGRAM
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GHG Emissions Rating – Environmental Star Rating
• Over $72,000 in discounts in first six months alone
• Access to rating provided free to ports
RightShip - Rewarding Sustainability
PRINCE RUPERTENVIRONMENTAL INCENTIVE PROGRAMFirst Six Months
• Discounts to 83 vessels (127 total calls)
• 91 of these calls qualified through RightShip’s A to G
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Efficient ships Act Local, Think Global• Reduce overall emissions in the port area
• Ultimately reduce emissions for entire voyage
• Links between green ships and safer ships
Recognition of sustainability efforts
• Prince Rupert / Port Metro media campaign – 6.7 million opportunities to view
• Increasing focus on emission reduction
RightShip - Rewarding Sustainability
PORT INCENTIVE PROGRAM – KEY BENEFITS
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COMMERCIAL BENEFITS
Page 18Page 18RightShip - Rewarding Sustainability A VOYAGE . . .
Page 19Page 19RightShip - Rewarding Sustainability A VOYAGE . . .
Page 20Page 20RightShip - Rewarding Sustainability A VOYAGE . . .
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MARKET MOVES FASTER THAN REGULATION• Twenty three charterers factor energy efficiency into the Charter selection process
— 1.8 billion tons of cargo
— 23% of global non-containerized shipments
— 21,500 vessel movements annually
— Research data
— 22,000t CO2 saving in 12 months
— approx. $4.5M bunker saving
• Three ship-owners publicly endorse energy efficiency
• Three ports factor energy efficiency into the vetting acceptance process
• ABN Amro
— Complimentary to internal risk management procedures
— Factor vessels’ energy efficiency into underwriting process
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THE CHARTERERS
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THE CHARTERERS
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SURVIVAL OF GREENEST
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• Sustainability is now a Standard Consideration in Shipping
• A-G GHG Emission’s Rating
— Compares 75,000+ vessels
— Common platform for comparison
— relative and absolute efficiency
• Environmental Star Rating
— Performance / behaviors above compliance
• Industry Acceptance
— Charterers
— Banks
— Ship-owners
— Port Incentive Program
WORKING TOWARDS A CLEANER ENVIRONMENT
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PORTS USING THE “A” TO “G” - 6-STEP ROADMAP
1• Initial engagement with ports to scope will and capability to offer incentives
2
• Introductory presentations with RightShip to understand the ‘A to G’ GHG Emission Ratings methodology
3• Data modelling using historical arrivals data to estimate cost implications
4• Port internal process of approvals to implement revised harbor tariffs and discounts;
5• Collaboration with RightShip and partners on a comprehensive PR plan
6
• Milestone announcement: more ports sign up to to offer financial incentives to more efficient vessels using ‘A to G’ ratings
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OUR STAKEHOLDERS
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OUR STAKEHOLDERS
Way Forward
. . .
http://blog.firstvacationrental.com/8-games-to-play-with-kids-at-the-beach/
RightShip - Rewarding Sustainability