Sustainability - NEIAneia.org/wp-content/uploads/2013/07/SPO-SD-for-NEIA-31-Jul-2013... · HSE...

www.swire.com.sg

Sustainability

Acting for the

long-term future

Sustainability within SPO

• Who: SPO and SPB?

• Why: Sustainability?

• What: Are we doing?

NEIA, St. John’s 31 Jul 2013


Who? Me

• Went to sea in 1974 at age 17

• BSc (Hons) Environmental Science 1978 - 1981

• Joined Swire Pacific Offshore (SPO) 29 years ago

• Ship Master at age 34

• Came ashore into Swire Pacific Offshore offices in 1991

HSE Manager

Marketing Manager

Marine Services Manager

Project Manager - Y2K, MIS, S&P, EPS, Business Development

General Manager - Aberdeen, Azerbaijan, Dubai, Qatar, Russia

• General Manager - Sustainable Development (CNCo + SPO)

NEIA, St. John's 31 Jul 2013


Who? Swire Pacific Offshore

• Established in Singapore 37 years ago

• OHQ / AIS status in Singapore in May 2004

• 83 vessels operating worldwide in 28 countries

• 27 vessels on order (total commitment: CAD 1,529 million to 2016)

• 2,000 employees, incl 1,800 seafarers of 30 nationalities

• Net Assets 31 Dec 2012: CAD 1.87 billion

• Revenue 2012: CAD 722 million

• Attributable Profit 2012: CAD 136 million





• Who?

• Why do we do it?

• What are we doing?





Human Rights,

Resolving Grievances,

Discrimination

and Vulnerable Groups

Employment and

Employment

Relationships,

H&S at work,

Human Development

and Training

Prevention of Pollution,

Sustainable Resource Use,

Climate Change

Mitigation,

Protection of the

Environment & Biodiversity Anti-corruption,

Fair competition



Fair marketing,

Consumer Protection,

Sustainable

Consumption

Community

Involvement,

Employment

Creation, Skills

Development,

Income creation



Governance, Ethics, Profitability.

The Long Term View

The Chairman of Swire Pacific Ltd., in a circular in Jan 2008, stated:

• The Swire Group has always tried to adopt “best practice” on environmental issues;

• All companies in which Swire Pacific has a controlling interest will adopt this policy,

& develop action plans for applying it in a way relevant to their business;

• Identify high profile SD issues and steps for handling them;

• Review the impact of the need to reduce carbon emissions;

• Board papers supporting new investments must estimate carbon emissions

associated with these investments and consider the potential impact of paying

for such emissions;

• Companies should continue to work on the aspiration to be “best in class” on

climate change issues.


The Long Term View From Chairman SPAC, rec’d in Aug 11:

“As a group we should always seek to

be ahead of legislation rather than

reacting to it: that even if the

environmentally “clean” way of doing

something is more expensive and

therefore on the face of it uneconomic,

we should always, regardless of

mandatory legislation, have a close look

at the overall feasibility of adopting such

a practice both from the point of view of

general public good and enlightened

self-interest”.




Why do we do SD?

A boat…...

Profitability: The Business Case


is a boat..….

is a boat..….


Tidewater

Farstad

SPO

Bourbon

Solstad

Gulfmark

2.0%

4.0%

6.0%

8.0%

10.0%

5.0% 10.0% 15.0% 20.0%

Ret

urn

on

Net

Ass

et E

mp

loye

d 2

010

Net Assets CAGR 2005 - 2010



0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

2004A 2005A 2006A 2007A 2008A 2009A 2010F

Tidewater Seacor Gulfmark

Solstad Farstad SPO

Bourbon offshore EzraEBITDA




Profitability: The Business Case The chart below from a Harvard Business School study, shows the

performance of 180 companies over 18 years. The 90 firms that

adopted environmentally and socially responsible policies significantly

outperformed their peers.

Investing $1 in1993 in a portfolio of:

High Sustainability firms would

have grown to $22.6 in 2010

Low Sustainability firms would

have grown to $15.4 in 2010




• What is Sustainability?

• Why do we do it?

• What are we doing?



The Environment

SPO is determined to be a good steward of the natural resources

and the biodiversity under our influence by such as:

• The Office Environmental Re-Audit done in 2012 so that the

visible face of SPO remains “best in class”;

• Swire Pacific Green Guidelines followed:

• using FSC Certified paper and double sided printing

• less air-con / heating in offices

• Video-conferencing facilities to minimise travel;

• TBT-free anti-fouling paint;

• Offices use low emissions vehicles where possible.



The Environment

• Continually review the feasibility of using LNG fuel and/or bio-fuel

on SPO vsls;

• IMO “Hong Kong Ship Recycling Convention” (MEPC #962):

the “Green Passports” initiative;

• The “Green Zone” FEMS is being used on BDE, RVR and all new

“P Class”, and will be progressively fitted in the fleet SEEMPs now

on all vessels (prior to, and in excess of regulatory requirements);

SPO bears the incremental costs for using such “better”, more

environmentally-sustainable, but possibly more expensive products

SPB is the Environmental Management Rep under ISO 14001



SPO is a member of the World Ocean Council (WOC)

The WOC is the only international, cross-sectoral alliance for

private sector leadership and collaboration in “Corporate Ocean

Responsibility”. Companies and associations worldwide are

distinguishing themselves as leaders in ocean sustainability and

stewardship by joining the WOC.

The Responsible Global Community is actively seeking

ways to protect the oceans. By being a member of WOC,

SPO is be able to make both its voice, and the voice of

the offshore sector, heard more clearly.

The Environment



Environmental Involvement and Support

• Biosphere Foundation – 3 year grant to support IWC

research on cetaceans and marine mammals off the

coast of Sri Lanka.


Pigmy Blue Whale, ship-strike.

Sri Lanka Sunday Times, 2010


Environmental Involvement and Support • Partnership with Endangered Species International in

Cotabato, South Mindanao to enhance the environment

to help protect IUCN critically endangered Philippine

Forest turtles.



Net Zero

Supply Chain

Water

Waste Energy / Carbon

Emissions

SPO’s Journey towards “Net Zero Env Impact”

ENVIRONMENTAL

IMPACT AREAS:

Emissions (CO2

and Pollutants)

reduced

Energy efficiency

increased


Sustainability within SPO/SPAC


Overview – Net Zero

• Aspirational and achievable;

• Through business plans and board

level focus in the operating companies;

• Targets, KPIs, Measurement

• Enabling engagement at all levels;

• Accountability, innovation

• Identifying and addressing financial

impacts of non-financial areas;

• Risk Management;

• Financial, social and environmental viability.



Net Zero – key actions

Sustainable Development Fund

• Relevant to current business, clear sustainability criteria.

• Biofuel – CO2 mitigation / positive biodiversity impact

• Sustainable biomass;

• Scalability;

• Supply chain integration.

• Investment control

• Partners – compatible values

• Strategic value of the Swire brand

• Energy efficiency projects to benefit from lower return

on capital criteria



Net Zero – key actions (continued)

• Energy Committee – using existing technical expertise

within the Group to share knowledge, technology,

experience, to push cooperation and realise the benefits

(i.e. energy savings, carbon credits);

• ‘Closed Loop’ waste focus; potential value of waste

streams

• CX’s uniform recycling; recycled yarn - Group

opportunity.

• Swire Beverages zero waste water.

• Future Scenario Planning (resource impact)

• Structured Stakeholder engagement;

• Reporting and valuation.




The Environment • SPO’s 2010 - 2012 CO2 average directly attributable

climate footprint (iaw ISO 14064) was 56,164 tCO2e, from:

• flights for staff

• emissions from off-hire FO and LO consumption

• office electricity usage

• shore based vehicular usage

• freon consumption

• It is forecast to avg 48,966 tCO2e p.a. over next 20 yrs,

or a total of 979,324 tCO2e

• Reducing this footprint significantly is not feasible (ships

burn FO even at anchor/offhire, seafarers must fly to ships)



The Environment

SPO has committed to generate enough

“REDD-plus” carbon credit offsets for its

directly-attributable footprint to be climate

neutral wef 01 Jan 11 – TOWARDS NET ZERO

Our REDD+ credits meet both the Voluntary Carbon Standard

Association and Climate Community and Biodiversity Standards and

are (rigorously!) independently audited



REDD+ Carbon Offset Credits -

through investment in threatened

virgin forests in Paraguay


The Environment

SPO has donated to a local

NGO to fund purchase of

6,500ha (~25 sq miles) of the

largest remaining areas of

Upper Paraná Atlantic

Rainforest in the transitional

Chaco-Pantanal area in NE of

Paraguay, through the World

Land Trust

(patron: Sir David Attenborough)





Dry Chaco (L) and

Pantanal Wetlands Transitional Forest (R)

an area rich in bio-diversity


Without REDD initiatives

the PARF carbon sink

(and bio-diversity)

is lost forever to

ranching (above) and

soy production (left)




The Environment • This is a designated 'biodiversity

hotspot' and will be set aside as a

reserve of “avoided deforestation”,

assisted natural regeneration and

plantation with native species

• This has sufficient biomass to

generate just under 1m tCO2e

sequesterable carbon credits, or

the 49,000 tCO2e offsets per year

that SPO needs for the next 20

years to be climate neutral



The Environment

SPO could seek to trade any surplus carbon credits each year, either

internally within the group, or on the open market, but this is not intended.

It can be argued that it would be better to

avoid GHG production in the first place,

rather than to seek to mitigate its effects,

but increasingly, and certainly as we

move to a world post the Kyoto Protocol,

after 2012, environmental activists are

now accepting that whilst desirable, it is

rarely practically achievable, and that

fiscalization throughout the business

process will ultimately be more efficient.

Butterflies at the San Rafael

National Park, Paraguay

Birds in Chaco Pantanal

IBA, Paraguay



Community Involvement and Development

• Education and Culture

• Employment Development

• Social Investment

• Technology Development




• Supporting local charities, working with, raising the

profile on environmental, underwriting the start-up

Capex for recycling schemes etc., and especially

targeting assistance in time or money or resources

to our key stakeholder / employees’ communities

• Swire group Charitable Trust

(SPO contributing ~CAD 0.8 million to the Swire

group Charitable Trust annually)




Swire Group

Charitable Trust

Education

Arts and culture

Environment

HK PHILHARMONIC ORCHESTRA

SWIRE SYMPHONY UNDER THE STARS

ARTS WITH THE DISABLED ASSOCIATION

SWIRE INSTITUTE OF MARINE SCIENCE

SWIRE MARINE CENTRE (XIAMEN UNIVERSITY)

CARBON DISCLOSURE PROJECT

GUANGXI FOREST PROJECT

LEPROSY PROJECT

TAIKOO PRIMARY SCHOOL, COMMUNITY ENGLISH

LANGUAGE LAB

TEACH FOR CHINA

LEAP (LIFESTYLE EDUCATION ACTIVITY PROGRAMME

SUSTAINABLE TARGET EDUCATION PROGRAMME (WWF)

OTHER: SWIRE PROFESSORSHIP OF AEROSPACE

ENGINEERING (HKUST)



Community Involvement and Development SPO’s Corporate Philanthropy Committee is

currently supporting the following projects:

• Propeller Club: sponsoring 5 groups to date, each of

25 disadvantaged scholars from around the Philippines

to gain a trade skill at the Don Bosco Technical

Institute in Manila.

4th group: Ship Mechanic course and 5th group:

STCW Culinary & Kitchen Management course

(male & female) are happening in 2013.

Upon successful completion we seek to offer

maximum employment at sea with SPO.

• SPO University Scholarship: for a child of a SPO company employee

to undertake a 3 year first degree each year at a world Top 500 ranked

university. Open to all, irrespective of country of residence.




• SMTC Partnership with RMU: sponsoring cadets from Regional Maritime

University (RMU) in Accra, Ghana. This provides a flow of Junior Officers

whilst SPO gains a local “License to Operate”;

• SPO Bursary at NTU: SPO has sponsored a bursary in perpetuity,

at NTU in Singapore for Engineering/Marine PWD Undergraduates;

• Sponsoring Singaporean undergraduate management trainees

under Singapore Maritime Foundation (SMF) ONE (Outreach Network).

Two already working in HOF, two more starting in Aug 2013, and 4 in 2014;

• Sailors Society Asian Challenge (Mt Kinabalu): SPO

SPO made “$ for $” matching donation to the 5 (of 42)

teams climbing Mt Kinabalu on the weekend before

Singapore Maritime Week. All the money raised

(CAD 120,000 by SPO, of CAD 770,000 total in 2013)

goes to support seafarers worldwide.




SPO’s Corporate Philanthropy aims as far as possible to:

• Involve Business Critical Community Engagement (“BCCE”);

• Be Strategic;

• Involve a Long-Term Partnership;

• Be Responsive to Community Needs;

• Normally avoid “One-Offs”;

• Involve fewer but larger sums, rather than many small donations,

as these have an impact multiplier.




And in complying with these guidelines, we corporately

would generally direct our CP towards:

• Provision of Educational and / or Health Opportunities for Youth;

• Enhancing SPO’s Presence in our Stakeholder Communities;

• Environmentally Sustainable issues;

whilst as best possible simultaneously;

• Demonstrating a strategic fit with SPO’s business;

and

• Fostering or enhancing a Corporate Partnership with SPO (rather

than being disconnected philanthropy).



SPO 2010 SD

Report was well

received, and

still sets SPO

apart from its

peer group.


Thank you

Any questions?


When all the trees have been cut down,

When all the animals have been hunted,

When all the waters are polluted,

When all the air is unsafe to breathe,

Only then will you discover you cannot eat money.

Cree Indian Prophecy


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