Page 1 REWARDING SUSTAINABILITY Anuj Chopra 23 October 2014.

REWARDING SUSTAINABILITY

Anuj Chopra23 October 2014

RightShip – Rewarding SustainabilityPage 2

• RightShip

• Finding a green ship in a blue ocean

• EVDI - Environmental ratings

• Port Incentive Program

• Conclusion

TODAY’S DISCUSSION


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

RightShip – Rewarding Sustainability

FINDING A GREEN SHIP IN A BLUE OCEAN


WHO ARE OUR STAKEHOLDERS?


COMBAT INFORMATION ASYMMETRY

RightShip - Rewarding Sustainability

RIGHTSHIP’S ENVIRONMENTAL RATINGS

DEFINING EFFICIENCY


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

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’S A-G GHG EMISSIONS RATING

EVDI = CO2 emissiontransport work

http://www.shippingefficiency.org/


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

LET’S COMPARE


Holistic Rating

• Recognises performance and behaviours above compliance.

• Calculated environmental risk parameters

• Vessel performance

• Third party environmental factors


ENVIRONMENTAL STAR RATING

PORT INCENTIVE PROGRAM

PORT METRO VANCOUVERECO ACTION PROGRAM


GHG Emissions Rating – Environmental Star Rating

• Over $72,000 in discounts in first six months alone

• Access to rating provided free to ports


PRINCE RUPERTENVIRONMENTAL INCENTIVE PROGRAMFirst Six Months

• Discounts to 83 vessels (127 total calls)

• 91 of these calls qualified through RightShip’s A to G

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


PORT INCENTIVE PROGRAM – KEY BENEFITS


COMMERCIAL BENEFITS

RightShip - Rewarding Sustainability A VOYAGE . . .

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


THE CHARTERERS


SURVIVAL OF GREENEST


• 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


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


OUR STAKEHOLDERS


OUR STAKEHOLDERS

Way Forward

. . .

http://blog.firstvacationrental.com/8-games-to-play-with-kids-at-the-beach/


Email: [email protected]

¡Muchas Gracias!

Page 1 REWARDING SUSTAINABILITY Anuj Chopra 23 October 2014.

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