WWL Environmental Profile Shipping & Environment Conference, Bremmerhaven. September 12 th 2013 Roger Strevens, WWL

Transcription

1 WWL Environmental Profile Shipping & Environment Conference, Bremmerhaven September 12 th 2013 Roger Strevens, WWL 1

2 Agenda This is Wallenius Wilhelmsen Logistics WWL environmental profile & approach Frontrunner: Delivering results Changing attitudes to environment & leveraging Frontrunner Leading by example: the 4 Stream Approach to sulphur regulation 2

3 If it rolls, WWL can ship it 3

4 WWL by the numbers 50% 50% 2011 Revenue: USD 2.3 Billion 2012 Revenue: USD 3.0 Billion employees; Ocean & Inland Production terminals 61 vessels 41 Vehicle Processing Centers 5.7 mill units Inland Distribution: 3.2 million units 17 H&H Pre Delivery Centers: 57,000 units 4

5 Some of our major customers 5

6 WWL Frontrunner Strategy 6

7 Frontrunner : WWL s Enviro Profile Aim to be an industry leader on environmental performance Key part of our brand identity Deep commitment from management & Owners 7

8 WWL s Frontrunner Zero Ambition Overall positive impact on: Profitability Environment, Communities E/S Orcelle and Castor Green Terminal concepts are visual representations of 2W s zero ambition 8

9 Castor Green focus areas, KPI s & targets 4 Focus Areas 7 KPIs Target Land Green Part of Site Area >10% Energy Electricity kwh/working hour Electricity From renewable sources Fuel consumption/working hour -80%* 100% -80%* Water Supply from rain Fuel consumption/working hour 100% -80%* Waste Waste to landfill -99%

10 Frontrunner Principles Focus on high impact changes Accountable and transparent in enviro commitments Exceed responsibilities today to reduce risk and cost tomorrow Invest in and support new technologies Develop partnerships to find sustainable solutions 10

11 Frontrunner Focus Areas Six significant environmental aspects are the foundation for our enviro strategy and actions

12 Frontrunner Approach Look for preventive solutions attacking the root cause of the problem Incorporate the total company operations in our strategy Drive continued reduction in enviro impact of our business Above all, achieving our ambitions takes teamwork 12

13 Frontrunner: Delivering results Click image to go to WWL ESR microsite

14 Continued relative emission reduction Relative CO 2 emissions Emissions from moving one tonne over one kilometer, Continued downward trend 2% decrease compared to 2011 Total CO 2 emissions Increased inline with growth in volume of business

15 Sulphur: setting the industry standard SO x - exceeding our obligations Now in 10 th year of 1.5% policy High impact, real commitment NO x continued downward trend Linked to engine design, not bunker composition 15

16 Not just what we report, but how we report it... WWL is transparent and accountable in its reporting Example: Objective Historical trend Actual Values Competitors in general Few objectives Few hard numbers No historical trends No verification Relative change 3 rd party verification to recognised std.

17 We exceed our responsibilities to reduce risk WWL 2009 WWL 2000 Tinfree paint WWL 2004 (Global) Low Sulphur Fuel IMO 2007 (ECAs) WWL 2007 Ballast Water Treatment IMO? GHG 3 rd Party Verification IMO? IMO 2008

18 The green wave what Frontrunner must deal with 18

19 Enviro regulation difficult waters to navigate Enviro dynamics: Wave goodbye? Industry has significant enviro footprint Major regulatory initiatives underway Commercial, operational and technical uncertainty Wide ranging and impactful changes ahead Need to minimise risk & cost to customers & selves 19

20 2015 v s 2020 / 2025 regulations - two different challenges ECAs 1.0%S Today 0.1%S 2015 Global 3.5%S Today 0.5%S 2020 in Europe, 2020 / 2025* globally ECA: Emission Control Areas (established by the International Maritime Organisation) * 2020 / 2025 to be determined by IMO pursuant to a review in 2018 S: Sulphur 20

21 Not regulation as normal Example: sulphur regulation The Challenges Extent All newbuilds & 55,000 existing vessels Impact Change of fuel or major retrofit Cost Probably too great to be absorbed Uncertainty Lack of proven solutions 21

22 Some see it like this... 22

23 WWL position Strict, global regulations with strong enforcement is fundamental for sustainable shipping Want regulations to take effect without delay Creative entities will sustainable solutions Sustainable Solutions Environmentally Responsible Socially Responsible Economically Viable 23

24 Our sulphur track record WWL global 1.5% sulphur policy since 2004 Experienced in operation with low sulphur fuel Good base to find solutions from 24

25 It pays to be proactive

26 The four stream approach to sulphur regulations Distillate Fuels Committed to finding the most commercially and environmentally sustainable solutions Other Energy Sources Working on a broad scale <0.5 % Bunker Oil Exhaust Gas Cleaning Systems Examining upstream (fuel) and downstream (technical) solutions Different solutions likely for different vessels

27 Exhaust Gas Cleaning Systems M/V Tarago ECGS ( scrubber ) trial First of its kind Covers main & all 5 auxiliary engines Hybrid: open and closed loop modes Questions to answer: Total solution cost? Technical / operational issues? Stakeholders views? Progress and strategy Installation complete Q Commissioning underway Operation to commence H Trial to run till end 2014 Collaboration with research institutes

28 Distillate Fuels Marine Gas Oil (MGO), Marine Diesel Oil (MDO) Questions to answer: What price? Sufficient supply in suitable locations? Progress and strategy Long time trial onboard OW Turandot technically feasible, high costs MGO market complex & huge Continuously monitoring developments

29 Other Energy Sources LNG main contender Also bio diesel, solar, wind, wave, methanol, hydrogen, fuel cells... Questions to answer: Viable for trans-ocean operators? Viable for which vessels? Total solution cost? Technical / operational issues? Progress and strategy LNG collaboration established Seeks to explore and develop potential for use of LNG Specifically focussed on deep sea RORO shipping

30 <0.5% Bunker Oil Possible new product from the oil industry Questions to answer: Stakeholder interest? What price? Sufficient supply in suitable locations? Technical / operational issues? Progress and strategy Identifying potential partners Implementing communication plan to develop interest and awareness

31 One more thing... enforcement Increasingly stringent regulation Compliance not optional, but enforcement patchy Weak enforcement distorts competition WWL support strong, transparent & consistent enforcement Not acceptable in sport or in shipping 31

32 Changing attitudes to environment & leveraging Frontrunner

33 Environmental Approaches The burdened The followers The leaders 33

34 Enviro sustainability business critical Commercial Advantage Driver of Innovation Sustainable envrio approach Attract People Business value 34

35 Using Frontrunner for commercial advantage Environmental Levers Commercial Objectives Knowledge & Experience Differentiation Consultancy / Services Customer Interaction Add value Common Cause Relationship development 35

36 Thank you for your attention!