DNV GL © 2013 SAFER, SMARTER, GREENER DNV GL © 2013

DNV GL 150 years and going strong

1

Bjørn K. Haugland

Executive Vice President, Chief Sustainability Officer

DNV GL © 2013

2

150 years of internationalization

DNV GL © 2013

Unique industry consolidation

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1864 1927 1867 1904/1961 1984

12 Sept 2013

DNV GL © 2013

Increasing business complexity and greater challenges

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Climate

change

and

extreme

weather

Fragile

world

economy

Pace of technology

change

Globalization and

complex value chains

Political, religious

and other conflicts

Vulnerable IT and

cyber scrutiny

External

scrutiny

and call for

transpar-

ency

Zero

tolerance

for failure

Higher

requirements on

business

preparedness and

competence

DNV GL © 2013

Our core competence

5

identify assess manage

risk

DNV GL © 2013

Organized to maximise value for our customers

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OIL & GAS

MARITIME

ENERGY

BUSINESS

ASSURANCE

SOFTWARE

RESEARCH & INNOVATION

DNV GL © 2013

17,000 employees

2,500 Mill. EURO (2012)

100 countries

Global delivery capability and strong presence

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Americas

3,000 staff Asia / Oceania

4,000 staff

Europe / Africa /

Middle East

10,000 staff

DNV GL

DNV GL © 2013

Industry focused organization

8

DNV Foundation Mayfair

Headquartered in

Hamburg, Germany

Headquartered in

Høvik, Norway

Headquartered in

Arnhem, Netherlands

Headquartered in

Milan, Italy

Maritime Oil & Gas Energy Business

Assurance

Global Shared Services

DNV GL Group Headquarter: Oslo, Norway

Group President & CEO: Henrik O. Madsen

Software

63.5% 36.5%

DNV GL © 2013

The Path

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DNV GL © 2013

150th Anniversary launch event at Singapore on 28 February

DNV GL kicked off its 150th anniversary year for more than

500 customers, employees and stakeholders, together

exploring insights and actions necessary to achieve its vision

of ‘global impact for a safe and sustainable future’.

DNV GL © 2013

Singapore launch event highlights

DNV GL opens new Asia Pacific headquarters in Singapore

DNV GL launches reports on six strategic themes

Keynote speaker Dr. Pachauri emphasizing the importance of the Safe and Sustainable

Future report in Singapore

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A SAFE AND SUSTAINABLE FUTURE Overview of deliverables, key messages and findings

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Unique products: • Assessment tool to evaluate sustainability impact of our services

IDENTIFIED

36 BARRIERS

Technological &

Informational

Societal

Policy &

Governance

Cognitive &

Behavioural

Economic &

Market

We have defined 3 overarching pathways and 20 actions in which the transition must be oriented:

1. A green and inclusive economy: Reorienting the economy and the functioning of the markets

2. Good governance and decision-making: Governing for a sustainable future

3. Stable and prosperous societies: Building resilience, equity and well-being

DNV GL’s vision for a safe and sustainable future: DNV GL believes it is possible to create a thriving economy where growth is decoupled from environmental destruction and material consumption. We believe it is possible to stay within the limits of the planet while still enjoying a decent quality of life. And we believe it is possible for a society of nine billion people to live well, enjoy universal access to the basics needed to live a healthy, safe and flourishing life.

DNV GL © 2013

FROM TECHNOLOGY TO TRANSFORMATION Overview of deliverables, key messages and findings

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Overcoming the barriers to scale. Taking selected technology case studies, we examine examples of physical, regulatory, economic and societal barriers, and provide recommendations for how to overcome them.

Taking lessons from history History shows that the technologies that have transformed our shipping, energy, food and health sectors have taken decades to move from invention to scale. We examine the history of transformative technologies in five key sectors: maritime, oil and gas, electricity, food and health.

To unlock the transformative potential of technology, we must understand its context. Technology has always been an enabler of societal change and it can play a pivotal role in our transition to a safe and sustainable future. How we can accelerate the deployment and commercialisation of sustainable technologies while ensuring that they are introduced safely into society?

DNV GL © 2013

THE FUTURE OF SHIPPING Overview of deliverables, key messages and findings

Unique products: • Virtual demonstrator (online platform)

DNV GL’s vision for the shipping industry in 2050 rests on three ambitions:

1. Reduce fatality rates 90% below present levels. We need a new safety mindset and continuous focus on technological and operational improvements.

2. Reduce fleet CO2 emissions 60% below present levels. A range of low-carbon fuels and technologies, including LNG, biofuels, batteries, fuel cells and electrification, as well as greater efficiency measures, can enable a fleet-wide CO2 reduction of 60% by 2050, even taking projected demand growth into account.

3. Maintain or reduce present freight cost levels. The potential for the shipping industry to reduce costs and increase reliability by embracing smarter solutions is vast. New technologies and solutions can enable owners to achieve the first two ambitions without sacrificing cost.

Six technology pathways may

enable us to fulfil these

ambitions

1. Safe operations

2. Advanced ship design

3. The connected ship

4. Future materials

5. Efficient shipping

6. Low carbon energy

DNV GL © 2013

ELECTRIFYING THE FUTURE Overview of deliverables, key messages and findings

The city of Hoogkerk is living the smart grid future. Forty households are participating in the world’s first living laboratory of smart grid technologies, fully equipped with smart meters, smart appliances, renewable energy sources, and access to the market to trade electricity.

Our 2050 roadmap demonstrates that floating offshore wind energy can reach commercial scale by 2050 if it harnesses synergies with other industries and demonstrates technical and economic feasibility in increasingly large capacities.

Japan

Europe

VISUALISING SMART GRID

Unique products: • Mobile app to visualise functioning smart grid Physical visualisation elements in Hoogkerg

• Offshore wind video and roadmap • New energy scenarios for Europe and Japan

Europe: Large-scale wind can power a combo of a pan-European supergrid, combined with Norwegian storage capacities.

Japan: Japan can reduce its power sector emissions 80% by 2050 – but probably not without nuclear or CCS.

OFFSHORE WIND

Emerging technologies coupled with robust planning can enable dramatic decarbonisation. Technologies such as offshore wind and smart grid are technically and economically feasible, and can enable a transition away from fossil- and nuclear-based energy systems. We examine the potential contribution of these technologies in two geographies, Europe and Japan.

GLOBAL ELEC. OUTLOOK 2030

DNV GL © 2013

ARCTIC – THE NEXT RISK FRONTIER Overview of deliverables, key messages and findings

Unique products: • Arctic risk map (online platform)

• 2 concept ships • Risk perception survey

Sound decisions require a common understanding of risk in the Arctic. Industry, government and other stakeholders need to establish a common basis of understanding about the risks associated with Arctic development in order to make sound decisions.

Arctic development must employ a step-wise approach. The diversity of Arctic regional conditions requires a differentiated and step-wise approach when deciding on activities. Regions of the arctic should be developed in relation to their concentration of ice. Less challenging environments need to be successfully navigated before the industry can move on to harsher regions.

July Feb

Arctic risk map Arctic oil spill response

A tool to assess complex operational and environmental impacts in time and space

An assessment of the state of oil spill response in the Arctic, including response gaps

An assessment of risk to two Arctic shipping routes: cruise and tanker; two Arctic concept ships

Arctic shipping risks

DNV GL © 2013

ADAPTATION TO A CHANGING CLIMATE Overview of deliverables, key messages and findings

Mitigation is no longer sufficient. Businesses and communities must adapt. Adaptation will mean not only physical engineering solutions such as the hardening of infrastructure, but also new design criteria, emergency planning, and wider changes to decision making processes to make them more resilient in the face of an uncertain future. A risk-based approach is essential to managing complex climate risks. Robust adaptation requires systems thinking, taking a broader view of climate hazards and adaptation solutions. Business must understand its resilience in the context of its supply chains and the communities in which it operates.

Unique products: • Adaptation platform (online tool)

• Climate risk assessment and planning framework

• Community resilience protocol

Offshore infrastructure. Extreme waves are likely to become higher in a changing climate. Maintaining safe operations may require increasing the amount of steel on tanker decks by 5-7%, and raising and strengthening offshore platforms.

Cities and grids. When Superstorm Sandy hit New York in 2012, it caused unprecedented flooding and severe disruptions to the power system. Our simulations of the same storm in a warmer world show that regional storm surge could rise from 4.5 m in 2012 to 7 m in 2050 and 9 m in 2090.

Unmodified

base design

1. Raising

the deck

2. Strengthening

the jacket

The Panama Canal. The Canal could suffer from water shortages within decades due to climate change. Our analysis shows that an existing adaptation plan is already moving in the right direction to ensure the Canal’s continued operation.

DNV GL © 2013

”NEXT” book: Engaging exciting shapers and thought leaders into DNV GL network

Jørgen Randers

Nathan Eagle

Marina Grossi

Kevin Noone

L. Hunter Lovins

Robert Engelman

Rob Cameron

Pavan Sukhdev

Jessica Cheam

John Fullerton

Grace Mwaura

Dr. Kim Tan

Georg Kell

Peter Bakker

Jo Confino

Bright Simons

Jeremy Bentham

Alec Loorz Bawa Jain

Jeanne Ng Sarah Collins

Per Heggenes

Ana Marques

John Ashton

Tristram Stuart

Eva Joly

Ajay Banga

Achim Steiner

Fengshu Liu

Rajendra Pachauri

DNV GL © 2013

SAFER, SMARTER, GREENER

www.dnvgl.com

Safeguarding life, property and the environment

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