Page 1 REWARDING SUSTAINABILITY Anuj Chopra 23 October
Page 1 REWARDING SUSTAINABILITY Anuj Chopra 23 October 2014
Right. Ship – Rewarding Sustainability Page 2 TODAY’S DISCUSSION • Right. Ship • Finding a green ship in a blue ocean • EVDI - Environmental ratings • Port Incentive Program • Conclusion
Right. Ship – Rewarding Sustainability Page 3 ABOUT RIGHTSHIP Independent company formed in Oct 2001 • Houston, Melbourne & London • 240+ customers globally Ship Vetting & Risk Management • Petroleum & dry cargo vetting service • Environmental rating & CO 2 benchmarking • Largest provider of third party vetting services • Removed over 950 Ships from customer supply chains in 2013 Award winning Proven System • ISO 9001 & ISO 27001 certified • Australian Prime Minister’s 2013 Exporter of the Year
Right. Ship – Rewarding Sustainability Page 4 FINDING A GREEN SHIP IN A BLUE OCEAN
Right. Ship – Rewarding Sustainability Page 5 WHO ARE OUR STAKEHOLDERS?
Right. Ship – Rewarding Sustainability Page 6 COMBAT INFORMATION ASYMMETRY
Right. Ship - Rewarding Sustainability Page 7 RIGHTSHIP’S ENVIRONMENTAL RATINGS
Right. Ship - Rewarding Sustainability Page 8 DEFINING EFFICIENCY Energy Efficiency Design Index (EEDI) / Existing Vessel Design Index (EVDI) A formula to calculate the amount of CO 2 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
Right. Ship - Rewarding Sustainability Page 9 RIGHTSHIP’S A-G GHG EMISSIONS RATING EVDI – Basis for Comparison CO emission 2 EVDI = transport work • Data sources e. g. IHS Fairplay, SVIS, Owners, etc. • • • Ship types – 75, 000+ vessels • www. shippingefficiency. org Data verification during vetting process Approximately 7, 000 ships in Right. Ship database verified 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.
Right. Ship - Rewarding Sustainability Page 10 CALCULATING THE A-G GHG EMISSIONS RATING 1 2 Calculate EVDI Log Value EVDI / EEDI 3 4 Apply Weights to Log Values Calculate Z -Score 90, 000 DWT 10% smaller in DWT 100, 000 DWT Bulker 5 GHG Emissions Rating 10% larger in DWT 110, 000 DWT Bulker 4. 159 4. 334 4. 064 4. 334 3. 689 4. 459 4. 334 3. 994 4. 007 3. 742 4. 401
Right. Ship - Rewarding Sustainability Page 11 LET’S COMPARE
Right. Ship - Rewarding Sustainability Page 12 ENVIRONMENTAL STAR RATING Holistic Rating • Recognises performance and behaviours above compliance. • Calculated environmental risk parameters • Vessel performance • Third party environmental factors
Page 13 PORT INCENTIVE PROGRAM
Right. Ship - Rewarding Sustainability Page 14 PORT METRO VANCOUVER ECO ACTION PROGRAM
Right. Ship - Rewarding Sustainability Page 15 PRINCE RUPERT ENVIRONMENTAL INCENTIVE PROGRAM First Six Months GHG Emissions Rating – Environmental Star Rating • Discounts to 83 vessels (127 total calls) • Over $72, 000 in discounts in first six months alone • 91 of these calls qualified through Right. Ship’s A to G • Access to rating provided free to ports
Right. Ship - Rewarding Sustainability Page 16 PORT INCENTIVE PROGRAM – KEY BENEFITS 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
Right. Ship - Rewarding Sustainability Page 17 COMMERCIAL BENEFITS
Right. Ship - Rewarding Sustainability Page 18 A VOYAGE. . .
Right. Ship - Rewarding Sustainability Page 19 A VOYAGE. . .
Right. Ship - Rewarding Sustainability Page 20 A VOYAGE. . .
Right. Ship - Rewarding Sustainability Page 21 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, 000 t CO 2 saving in 12 months — approx. $4. 5 M 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
Right. Ship - Rewarding Sustainability Page 22 THE CHARTERERS
Right. Ship - Rewarding Sustainability Page 23 THE CHARTERERS
Right. Ship - Rewarding Sustainability Page 24 SURVIVAL OF GREENEST
Right. Ship - Rewarding Sustainability Page 25 WORKING TOWARDS A CLEANER ENVIRONMENT • 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
Right. Ship - Rewarding Sustainability Page 26 PORTS USING THE “A” TO “G” - 6 -STEP ROADMAP 1 2 3 4 5 6 • Initial engagement with ports to scope will and capability to offer incentives • Introductory presentations with Right. Ship to understand the ‘A to G’ GHG Emission Ratings methodology • Data modelling using historical arrivals data to estimate cost implications • Port internal process of approvals to implement revised harbor tariffs and discounts; • Collaboration with Right. Ship and partners on a comprehensive PR plan • Milestone announcement: more ports sign up to to offer financial incentives to more efficient vessels using ‘A to G’ ratings
Right. Ship - Rewarding Sustainability Page 27 OUR STAKEHOLDERS
Right. Ship - Rewarding Sustainability Page 28 OUR STAKEHOLDERS http: //blog. firstvacationrental. com/8 -games-to-play-with-kids-at-the-beach/ Way Forward.
Page 29 ¡Muchas Gracias! Email: vetting@rightship. com
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