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Green Shipping

and Development
Meet the Team

Eskedar
Mutlaq

Alex

Mojahid
Outline

Introduction and Stena’s Approach towards


01 Definition 04 Sustainability

02
Climate Change and
Seaborne Trade 05 Challenges for Shipping
Company

03 Sustainability in Shipping
06 Conclusion and
Recommendation

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Green Shipping

Green shipping refers to the use of resources and


energy to transport people and goods by ship and
specifically concerns the reduction in such
resources and energy in order to preserve the
global environment from GHGs and environmental
pollutants generated by ships. (Lee & Nam, 2017)

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Green Shipping

From the operational point of view, green shipping


must comply with the environment-related operating
conditions regulated by the IMO. These conditions are
described by conventions such as:
 MARPOL 73/78,
 The Convention on Oil Pollution Preparedness, Response, and
Co-operation regarding Hazardous and Noxious Substances
(OPRC-HNS),
 The Anti-fouling Systems (AFS) Convention,
 The Ballast Water Management (BWM) Convention, and
 The Ship Recycling Convention

Source: (Im et al., 2005)

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Why are Green Shipping Solutions Important?

Customers Are Taking Note It Will Give Your Company


In a survey carried out by Nielsen,
a Boost
approximately 81% of respondents said In this day and age, “woke”
that they attach importance to companies customers are constantly on the
implementing programs that improve the lookout for brands and businesses
environment. that align with the values they stand
for. Because of this, it’s important
It Saves Money that you retain their loyalty by
showing your sense of corporate
This applies especially to the social responsibility.
operational costs of vessels.
The Materials Used Are
Biodegradable
Significant Reduction of Eco-friendly shipping supplies are
Emissions often made of biodegradable
Studies have shown that shipping materials. This means they can
emissions could contribute easily be recycled and used for
other purposes; they also don’t
approximately 17% of all global carbon
take as long to decompose. All of
emissions by 2050 but if eco-friendly this means that they have less of
shipping solutions are adopted, this an impact on the environment.
could be avoided.

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Climate Change and Seaborne Trade

Maritime shipping sector


comprises 80% of global trade
by volume and is currently Shipping also contributes
responsible for around 2.5% to climate change through
of global emissions emissions of Black Carbon,
(Sustainability Times, 2019) tiny black particles,
produced by combustion of
marine fuel.
The Third IMO GHG
Study (2014) estimated that
for the period 2007-2012,
shipping emitted about 1,000 The environmental
Mt CO2 per year, equaling regulations of the
approximately 3.1% of annual International Maritime
global CO2 emissions. Organization (IMO) are
gradually expanding.

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Climate Change and Seaborne Trade

 According to the International


Chamber of Shipping (ICS)
and the International Maritime
Organization (IMO), the global
merchant fleet is responsible
for about 3% of global carbon
dioxide emissions, equivalent
to the annual emissions of a
major developed country like
Germany.
 If no action is taken, they will
account for around 17% of
global CO2 emissions in 2050.
Sustainability in Shipping
Sustainability in shipping is a holistic management concept for
sustainable development having three main pillars: environment,
society and economy (ESSF, 2013)

Source: (EMSA, 2019)


Stena’s Approach Towards Sustainability
We reduce our impact on the
environment through our innovation

We act ethically
because we care We contribute to
3 2 economic development
through our performance
Good Health and Wellbeing

 Recognition of nine vessels for safe


operations
 Incorporation of successful health project
 The idea of “no health without mental health”
 Campaigning of deck and port operations
Safety
Clean Energy
 Improve energy efficiency on shore and at sea and
actively stimulate the usage of clean energy sources
 Installed new cooling refrigerants : Stena Jutlandica
 First Methanol powered ferry: Stena Germanica
 Connect to renewable energy : 14 ships and 6 terminal
are equipped with electric shore power supply
 Artificial Intelligence: Stena Scandinavica
 First battery hybrid vessel launched: Stena Jutlandica
Responsible Consumption

 Less single use of plastic

 Supplier code of conduct

 Food for the win

 All time high for material recycling

 Good food

 Brought back the paper bag


Life Below Water

 Painting ocean friendly

 Installation of closed loop scrubbers

 Becoming ISO certified

 Achieving four stars in CSI

 Testing the ultrasonic antifouling


Equality and Inclusion

 Gender equality

 Equal opportunities in the workplace

 Empowering women
Highlights in 2018
 First battery hybrid vessel launched.
 Started using artificial intelligence on board to save fuel.
 Launched a fifth sustainability focus area “equality and
inclusion”.
 Became ISO 14001 certified.
 Continued reducing single use plastic.
 Five efficient new ships under construction.
The Challenges: Shipping Company Faces
 Industry consolidation forcing freight rates down
 Fuel emissions regulations and fuel price fluctuation
 New environmental regulation and de-carbonization of shipping
 Big data and artificial intelligences
 Changing trading patterns
 Social demand for sustainability
 Increase of insurance premium
 Lack of regulation to support their idea of innovation
 Transparency → Dialogue with customers, NGO and society →
Mandatory reporting
 Analog → Digitalization synchronization
Barriers to Environmentally-Friendly Shipping
 Attitude of Shipping Companies: Because there are no universal standards, many
shipping companies and shipyards approach the issue of environmentally-friendly shipping in
different ways. This difference in outlooks and actions can be an issue for retailers who truly
want to offer eco shipping as part of their business.

 Lack of Budget: Many businesses simply lack the budget to be able to make the huge
changes that are necessary for green shipping. This especially applies to things like making
green upgrades to existing ship fleets.

 There Are Very Few Experts: To really take eco shipping to the next level, companies and
businesses need advice from experts in the International Maritime Organization (IMO). This
will allow them to access ship inspections, and IMO agreements and certifications. However,
in most countries, there are very few IMO experts available for these activities.

 Issues of Domestic Law : This is another significant barrier to green shipping because
countries are slow to change their domestic laws to align with international conventions.
Conclusion and Recommendation

Shipping company’s strategies should be environment- friendly at the


same time seeking the best profit and wealth maximization

Sustainability and branding should be managed in a balanced way

Trust with stakeholders should be built through transparency

Sustainable shipping model should be promoted

Technological transformation should be dealt in an efficient


manner

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Branding…?
Thank you…
References
ESSF. (2013). The European Sustainable Shipping Forum. Lisbon, Portugal: European Maritime
and Safety Agency.
EMSA. (2019). Sustainable Shipping. Retrieved from European Maritime Safety Authority:
http://www.emsa.europa.eu/implementation-tasks/environment/sustainable-toolbox.html
Im, J. L. (2005). Green shipping outlook and response strategy. , . Korea Maritime Institute, 112-
114.
Lee, T. a. (2017). A Study on Green Shipping in Major Countries: In the View of Shipyards, Shipping
Companies, Ports, and Policies. The Asian Journal of Shipping and Logistics, 33(4), 253-263.
Sustainability Times. (2019, June 8). Climate change will reshape maritime trade by 2050. Retrieved
February 4, 2020, from Sustainability Times: https://www.sustainability-times.com/sustainable-
business/climate-change-will-reshape-maritime-trade-by-2050/
UNCTAD. (2019, December 12). Climate Change and Maritime Transport. Retrieved February 4,
2020, from UNCTAD: https://unctad.org/en/Pages/DTL/TTL/Legal/Climate-Change-and-Maritime-
Transport.aspx

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