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07.02.2013 Presentation for YoungShip Environmental Seminar 2013 By David Hansen, Practice Director of Corporate Responsibility & Sustainability Sustainable Shipping Opportunities beyond Compliance

Sustainable Shipping. Opportunities beyond compliance

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This presentation was given at Det norske Veritas (DNV) headquarters for a seminar arranged by YoungShip and young professionals at DNV. My introduction was given in a joint session with Elisabeth Grieg, part-owner of the Grieg Group and former President of the Norweigan Shipowner's Association.

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  • 1. Sustainable ShippingOpportunities beyond CompliancePresentation for YoungShip Environmental Seminar 2013 By David Hansen, Practice Director of Corporate Responsibility & Sustainability07.02.2013

2. 307.02.2013 3. 5Mega trends Individualisation Democratisation Globalisation Immediacy of Media Transparency & Big dataPowerof thePublic07.02.2013 4. 6Sustainability trends Reporting Standardisation and integration Live reporting and dialogue Integrated thinking: From projects to core business From side shows to integrated thinking From operational gains to strategic innovation Reciprocity: Transparency, accountability and shared value07.02.2013 5. Corporate Responsibility 360 MARKET / ENVIRONMENTINDUSTRYCompany/ organisation WORKPLACESOCIETYBusiness in the Community (UK)segmentation07.02.2013 6. Three kinds of accountability 8HorizontalVerticalSocietal07.02.2013 7. CSR Reporting: Its all about materiality 907.02.2013 8. Three concepts to prioritise materiality10A.The potential for sustainability factors to cause substantialdisruption, either positive or negative, to social andenvironmental systems. The greater the potential fordisruption the more material the sustainability factor will be.B.The degree of uncertainty involved in the potential impactson social and environmental systems of a sustainabilityfactor. The greater the range of uncertainty the morematerial the sustainability factor is likely to be.C.The length of time over which a sustainability factor haspotentially disruptive impacts. The longer the period of timethe more material the sustainability factor is likely to be.07.02.2013 9. Typical mistakes in sustainability reporting 11 Incidental. CSR-thinking does not appear to be systematic. Not strategic. Lacking materiality assessment of issues andstakeholders. Hard to see targets or direction. Lacking context and evidence from overall KPIs down toindividual ships, service or product lines. Poor connectivity. Useful data is not seen with the objectivesor other basis of comparison, the industry / sector.07.02.2013 10. Integrated Reporting 12 Companies can use sustainability efforts to improve their financial performance through integrated reporting, a comprehensive method for reporting value, performance and impact. Financial PerformanceIntegrated Reportingenables companies to viewIntegrated Integrated financial performance in aReporting Reporting sustainability context and WebsiteWebsite sustainability performance inNonfinancial Performancefinancial context leverages online tools to improve Environmental Impactdialogue andengagement withSocial ImpactAnnualall public Report audiences Governance Impact 07.02.2013 11. Sustainability reporting limitations13 By neglecting to explore the relationship between financial and nonfinancial performance, many corporate sustainability reports tell only part of the story. Typical Sustainability Report Critical Omissions Shortened more than 75 What is the overall percent of fleet routes financial impact of these from five days to four improvements? Saved more than 1.5Did the money saved on million gallons of fuelreduced fuel consumption outweigh the total cost of Trimmed emissions by the changes to the fleet 20 percent routes?07.02.2013 12. Five materiality tests141.Financial impacts and risks implicit in sustainability issuesspecific to various industries.2.Sustainability-related legal, regulatory, and policy driverslikely to have the greatest implications for the industries.3.Sustainability norms and standards developed by particularindustries or broad-based industry watch-dog organizations.4.Stakeholder concerns of a substantial nature, and emergingsubstantial social and environmental trends in givenindustries.5.Opportunities for social and environmental innovationspecific to each industry.07.02.2013 13. What you measure matters15 Think audiences and usability. Show relationship between business, risk factors and governance and solutions. Acknowledge expectations and embrace the opportunities that come with transparency. 14. Customised reporting 1607.02.2013 15. Long-term and integrated thinking Integrated reportStrategic OperatingCompanyObjectivesContext,GovernanceOverview and Including and Futureand Strategies toPerformance Risks and Remune- OutlookBusinessAchieveOppor-ration Modelthesetunities Objectives 16. New Norwegian reporting requirements 3-3c: CR & Sustainability reportingInstruments Actions ResultsExpectations CertificationsBoard Directors liabilityStyreansvar for alle opplysninger 17. Principles for responsible investment 191. We will incorporate Environmental, Social and Governance (ESG) issues into investment analysis and decision making processes.2. We will be active owners and incorporate ESG issues into our ownership policies and practices.3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.4. We will promote acceptance and implementation of the principles within the investment industry.5. We will work together to enhance our effectiveness in implementing the principles.6. We will each report on our activities and progress towards implementing the principles.07.02.2013 18. Relevance testing your CSR efforts 20Advanced risk management Purpose driven corporate culture WantedESG- CSR-position: handlingeffortsValues andidentity07/02/2013 19. Symbolic vs. substantive CSR 21SymbolicSubstantiveDonations Operational gains:Board committees on Making sure yourESG-issuesbusiness reduces its risksand negative impact.Strategic innovation:Making sure yourbusiness becomes part ofthe solution toenvironmental or socialproblems.07.02.2013 20. Summary: Getting beyond compliance 22Embrace the opportunities of transparencyExpress ambitions, results and risksEnhance integrated thinkingEngage in dialoguesExample: Identify and communicate yourEconomic, Environmental and Social Profit & Loss.07.02.2013 21. THANK YOUFOR YOUR KINDATTENTION 22. David HansenTelefon:+47 90523113 e-mail: [email protected]: dhansentwittPractice Director,CR & Sustainability07.02.2013