Using ESG Reporting to Decommodetize and Drive Change in the Maritime Industry

 The maritime industry is responsible for transporting 90% of global trade and accounts for around 3% of global CO2 emissions. The industry is facing increasing pressure to reduce its environmental impact, and various approaches can be taken to achieve this. In recent conversations with two shipping company CEOs, I thought about the potential use of ESG reporting to decommodetize and drive change within the industry.

Scope Reporting in ESG Frameworks

ESG (Environmental, Social, and Governance) reporting is a way for companies to disclose their environmental and social impact and corporate governance practices. When reporting on emissions, companies use different scopes of emissions. 

- Scope 1: Emissions from the company's direct operations, such as fuel combustion in boilers or vehicles.

- Scope 2: Emissions from the consumption of purchased electricity, heat, or steam.

- Scope 3: Emissions made by others to make the company's operations possible, such as shipping components or commodities.

The focus of the discussion was on Scope 3 reporting and how it could be used to decommodetize the shipping of commodities market. This market is heavily driven by commercial pressure, and inefficiencies within the industry regarding emissions are largely due to this commercial pressure.

Decommodetizing the Shipping of Commodities Market

Scope 3 emissions reporting could be a way to decommodetize the market. This would involve highlighting the emissions of a particular cargo during its shipping and its impact on the end customer's ESG reporting. 

For example, if a cargo was shipped in a way that resulted in lower Scope 3 emissions, this could be reflected in the end customer's ESG reporting. This would incentivize shipping companies to find more efficient and environmentally friendly ways of transporting goods. 

By decommodetizing the market, the industry could move away from the current commercially driven approach and focus more on sustainable practices. This could lead to greater efficiency and lower emissions overall.

Using a Common Language to Drive Change

I also noted that the industry needs to have a unified voice (see conversation with Yngvil) and agree on the direction it wants to take. This can be challenging, as there are many different players involved, each with their own commercial pressures and priorities. 

The use of ESG reporting and Scope 3 emissions could provide a common language and framework for driving change in the industry. By making the environmental impact of shipping more visible and tying it to the end consumer's reporting, the industry can create a monetary incentive for companies to adopt more sustainable practices.

Conclusion

The maritime industry is facing increasing pressure to reduce its environmental impact, and various approaches can be taken to achieve this. The use of ESG reporting and Scope 3 emissions could provide a way to decommodetize the shipping of commodities market and drive change in the industry. By using a common language and framework, the industry can create a monetary incentive for companies to adopt more sustainable practices, leading to greater efficiency and lower emissions overall.

Yngvil Åsheim - Building One Industry Voice for a Sustainable and Efficient Oceans Industry

Reflections on the Challenges and Opportunities Facing the Oceans Industry

Before we dive into the discussion with Yngvil Åsheim, let's set the stage. The oceans industry faces significant challenges that require collaboration and innovation to overcome. One of the bottlenecks for efficiency and transformation in the Industry is the need for a singular voice. If the Industry is to move towards a more sustainable and efficient future, it must come together with one voice. 

Introduction

The oceans industry is a vast and complex field that plays a crucial role in the global economy, with an estimated 90% of the world's trade transported by sea. However, the Industry is facing significant challenges related to climate change, environmental degradation, and the need for greater sustainability. To address these challenges, Yngvil Åsheim, a prominent figure in the oceans industry, believes that the Industry needs to come together with a singular voice. In this article, we will explore the reflections of Yngvil Åsheim on the challenges and opportunities facing the oceans industry and how the Industry can come together with one voice to move towards a more sustainable and efficient future.

Challenges and Opportunities:

The oceans industry faces numerous sustainability, efficiency, and complexity challenges. One of the challenges facing the Industry is the difficulty in abating its emissions. The Industry comprises numerous sectors and players, including shipping, energy production, fishing, aquaculture, and tourism. While many industry bodies cover some sectors rather than others, there is a need for a singular voice representing the Industry as a whole.

Unfortunately, the Industry is characterized by fragmentation and a lack of coordination, with differing opinions on policy and best practices among industry bodies. For example, the International Maritime Organization (IMO), a United Nations agency responsible for regulating shipping, has been criticized for being too slow to act on environmental issues. At the same time, some industry bodies have pushed for more aggressive regulation.

Similarly, there are disagreements among industry bodies on issues such as labor standards, safety regulations, and the use of new technologies. This lack of coordination and consensus can slow progress on important issues and impede the Industry's ability to adapt to new challenges.

Despite these challenges, the development of zero-carbon fuels like hydrogen and ammonia presents opportunities for innovation and growth in the Industry. However, challenges in production and safety remain, requiring collaboration between industry players, policymakers, and researchers.

In addition to sustainability, the Industry must also focus on greater efficiency, collaboration, and regulation. Commercial forces, such as customers and pricing, can also be a hurdle to sustainability goals. The Industry must prioritize sustainability goals while addressing the complexity of the issue.

Building One Industry Voice:

To address the challenges facing the oceans industry, building a singular voice that represents the Industry as a whole is essential. This will require greater collaboration and coordination between industry bodies, policymakers, and other stakeholders.

 It requires creating a joint vision of the Industry and where we are going in the future that can be projected to the world and external stakeholders. It's essential to design this vision together, with all players represented, to ensure that it reflects the Industry's diversity and complexity. This will require a shared understanding of the Industry's challenges, opportunities, and priorities.

Collaboration is crucial to building a singular industry voice. The Industry comprises numerous sectors and players, each with unique challenges and opportunities. To overcome these challenges and seize opportunities, industry players must collaborate, share knowledge, and build on each other's strengths. This collaboration must occur within the Industry and with policymakers, regulators, and other external stakeholders.

To build a joint vision of the Industry, prioritizing sustainability, we can build a common goal that unites all players and helps them work towards common solutions where it matters. i.e., infrastructure, measurements, and digitalization of standard agreements and data.

Fostering a culture of safety and problem-solving is also critical to building a singular industry voice. This includes creating an environment where individuals can discuss difficult issues, solve problems, and learn from mistakes. By prioritizing safety and problem-solving, the Industry can create a more collaborative and cohesive culture that works towards common goals.

Human-centered design is another essential element of building a singular industry voice. By creating easy-to-use and understandable tools, the Industry can prioritize the needs of the individuals using them. Improving efficiency and reducing the likelihood of errors, making it easier to collaborate and coordinate efforts. Especially when the tools and databases are to be used by a wide portion of the Industry, and people rely on them for their day-to-day work and operations.

Conclusion and Call for Action:

The oceans industry faces significant sustainability, efficiency, and complexity challenges. To overcome these challenges and move towards a more sustainable and efficient future, building a singular industry voice is essential. This requires wide collaboration between industry bodies, policymakers, and other stakeholders to design a joint vision of the Industry that reflects its diversity and complexity.

Prioritizing sustainability goals is critical to building a singular industry voice. It can also help with language toward a shared vision. By reducing environmental impact and promoting sustainable practices, the Industry can unite around a common goal and work towards common solutions. Fostering a culture of safety and problem-solving is also crucial, as is focusing on human-centered design to improve efficiency and reduce errors.

Collaboration and regulation practices are also essential to building a singular industry voice. Industry players can develop common standards and practices that promote sustainability and efficiency by working together. Greater regulation can also ensure that the Industry is moving towards a more sustainable and efficient future, but only if it is made collaboratively with the people and companies governed.

In conclusion, the oceans industry must come together with one voice to overcome its challenges and seize its opportunities. By prioritizing sustainability goals, fostering a culture of safety and problem-solving, focusing on human-centered design, and promoting collaboration and regulation practices, the Industry can work towards a sustainable, efficient, and cohesive future. This requires action from industry players, policymakers, and other stakeholders, and we must all work together to build a brighter future for the oceans industry.

Navigating the Future of Maritime Fuels: Overcoming Challenges and Embracing Opportunities

The maritime industry's future lies in sustainability, and finding alternative fuels less harmful to the environment is of utmost importance. Matt Duke, the CEO of Grieg Maritime Group, has been exploring this topic at length, discussing future fuels and sustainability in shipping. In this article, we will take a closer look at the different business areas of Grieg Maritime Group and explore how the company is committed to finding solutions that promote environmental conservation and reduce its carbon footprint.

Grieg Maritime Group is a well-known brand in Norway and a family-owned company group. They are primarily focused on ship ownership and management, with a joint venture called G2 Ocean that deals with the commercial side of the business. G2 Ocean is one of the world's largest open-hatch shipping actors, focusing on wood pulp, other commodities, and project cargo.

Introduction 

The maritime industry is facing an urgent need to transition towards renewable fuels that are more environmentally friendly, given the increasing concerns about climate change and environmental sustainability. In this article, we will delve into the challenges and opportunities associated with using renewable fuels in the maritime sector and explore potential solutions that can help overcome the challenges. We will also explore how Grieg Maritime Group is committed to finding new fuel options and embracing sustainable practices to promote environmental conservation and reduce their carbon footprint.

Testing and Exploring All Possible Solutions 

The maritime industry has the potential to explore and test various renewable fuel options despite the challenges of adopting them. Biofuels, for instance, can be produced more quickly than other fuel sources and significantly reduce carbon emissions compared to traditional fuels. However, it is essential to note that biofuels may not necessarily result in zero emissions.

Grieg Maritime Group, a company committed to sustainability, explores new fuel options through venture arms such as Grieg Edge. This venture arm invests in companies and opportunities with sustainability as a core principle and is moving towards zero emissions as a corporate principle. By investing in such companies, Grieg Maritime Group is not only supporting the development of new and innovative fuel technologies but also promoting a greener future for the maritime industry.

Through its sustainable investments, Grieg Maritime Group is contributing to developing solutions that could reduce the industry's carbon footprint. Their focus on sustainability aligns with the growing global concern about environmental conservation and climate change. By exploring and testing all possible solutions, the maritime industry can continue to move towards a greener future.

The Dangers of Concentrated Substances 

One significant challenge of using renewable fuels in the maritime industry is the potential danger associated with the concentration of these substances. Semipressurized ammonia and hydrogen also pose significant risks due to their hazardous nature. Ammonia is a toxic gas that can cause respiratory issues, and its storage requires extreme caution as it can react violently with other chemicals. 

Additionally, ammonia requires a specific temperature range to be transported safely, and any deviation from this range can result in safety risks. Hydrogen, on the other hand, possed more difficulty in storage and containment and is a highly flammable gas that requires careful handling due to its potential to ignite and cause explosions. It is also a cryogenic substance that must be stored at extremely low temperatures, which poses additional safety risks during storage and transportation.

Liquified natural gas (LNG) or Bio-LNG requires cryogenic temperatures to maintain its liquid state, and exposure to LNG can cause severe frostbite or cold burns. The industry must also consider the potential risks of handling and transporting liquified bio and natural gas, which require specialized crews and equipment. While LNG is not highly flammable, safety concerns are still related to its storage and transport, which require careful consideration and planning. 

The industry must prioritize upskilling across the maritime market to mitigate these risks, developing an unprecedented amount of new infrastructure and establishing production facilities for renewable fuels. It is essential to ensure that safety protocols are followed at all times. Industry stakeholders must collaborate to develop new safety standards and best practices for handling these hazardous materials.

Bio-Fuels

Another way Grieg Maritime Group is exploring new fuels is through using biofuels. Biofuels are produced from organic matter, such as plant materials, and they can be a more sustainable alternative to traditional fossil fuels. Grieg Maritime Group is exploring the use of biofuels in its vessels and is working to improve the efficiency and sustainability of biofuel use and production through collaboration.

Debates on Renewable Energy Use and Losses 

There are ongoing debates on where to focus the use of renewable energy and what level of energy loss is considered acceptable in producing and using these fuels. One of the main issues is the energy required to produce renewable fuels, which can lead to significant losses during the conversion process. For example, producing hydrogen fuel from renewable energy sources can result in losses of up to 75% due to the conversion process and energy storage requirements (Goeppert et al., 2012).

Another issue is the trade-off between energy efficiency and sustainability. For instance, the production of biofuels, while renewable, may require significant amounts of water and fertilizers, leading to adverse environmental impacts (Leite et al., 2017). These debates highlight the need for a comprehensive approach to evaluating the most sustainable and efficient ways to produce and utilize renewable fuels in the maritime industry.

One possible solution is to focus on producing renewable fuels using excess energy from wind farms. For example, wind turbines can produce electricity to generate hydrogen, synthetic ammonia, or methanol. This process, known as power-to-gas, can help mitigate the energy losses associated with the conversion process by utilizing excess energy that would otherwise go to waste (von der Assen et al., 2013). This approach aligns with the International Maritime Organization's goal of reducing greenhouse gas emissions by 50% by 2050, as outlined in their Initial Strategy on Reduction of GHG Emissions from Ships. 

However, it remains to be seen how this will be resolved effectively, as 90 percent of hydrogen and most ammonia today are produced from fossil fuels.

Carbon Capture Technology and Circular Economy 

This technology has the potential to reduce emissions in the maritime industry significantly and has gained attention from major players in the field. Grieg Maritime Group's exploration of this technology demonstrates its commitment to sustainable practices and reducing its carbon footprint.

Moreover, the circular economy principles could further enhance the benefits of carbon capture technology. By utilizing captured carbon in other processes or recycling it, the industry can minimize waste and maximize the use of resources. 

The Need for Further Research and Innovation 

In the quest to transition to renewable fuels, it is crucial to acknowledge that the maritime industry cannot adopt a one-size-fits-all solution. Continuous research, innovation, and stakeholder collaboration are vital to finding the most effective and sustainable solutions. Different types of fuels, technologies, and energy-saving measures may be required depending on the specific requirements of each vessel and its operations.

Grieg Maritime Group is one of the companies leading the charge in exploring new and renewable fuels in the maritime industry. The company is committed to sustainability and is continuously testing and exploring new fuel options to reduce its carbon footprint and promote environmental conservation. By investing in new technologies and fuel sources, Grieg Maritime Group is working towards a greener future for the industry. Their focus on sustainability and continuous research and development of new fuel technologies will play a critical role in the maritime industry's future.

Conclusion

Grieg Maritime Group is committed to exploring and testing new fuel options to promote environmental conservation and reduce its carbon footprint. The company's focus on sustainability and continuous research and development of new fuel technologies will play a critical role in the maritime industry's future. 

As a responsible and environmentally conscious company, Grieg Maritime Group's ventures in various segments demonstrate their commitment to a greener future for the ocean industry. Matt Duke's unique background brings a fresh perspective to the industry and emphasizes the importance of sustainability and profitability in their business approach. With continuous research and innovation, the maritime industry can find the most effective and sustainable solutions to transition toward a greener future. 

It is imperative to prioritize sustainability and work together to overcome the challenges associated with renewable fuels. Grieg Maritime Group is leading the way in this effort by collaborating with other stakeholders in the maritime industry to share knowledge and promote innovation in the industry.

I am grateful for the time he took to sit down and discuss this with me.

References

• Comparative report on alternative fuels for ship propulsion

• Initial Strategy on Reduction of GHG Emissions from Ships, IMO 

• Goeppert, A., Czaun, M., Jones, J. P., Surya Prakash, G. K., & Olah, G. A. (2012). Recycling of carbon dioxide to methanol and derived products—closing the loop. Chemical Society Reviews, 41(23), 7761-7786.

• Leite, G. A., da Costa Lopes, A. M., Pasa, V. M. D., de Figueiredo, T. A., & Mussatto, S. I. (2017). Environmental impacts of biofuels produced from oil palm, sugarcane and soybean: a review. Journal of Cleaner Production, 162, 1356-1365.

• von der Assen, N., Jung, J., Bardow, A., & Fahl, U. (2013). Power-to-gas: A review of the technological and economic potential. Energy & Environmental Science, 6(10), 2643-2667.

A Vision for the Future: Telling the Story of Change

Introduction

As I sit down for lunch in Norway, I reflect on the impact of yesterday's workshop on tornado leadership, which aimed to drive change across industries and the world. I am reminded of a recent post by Nada Ahmed about authenticity on social media and her upcoming book \"Determined to Lead.\" These thoughts lead me to contemplate the power of change and vision, particularly in the context of my project on the human-centered ocean industry. I am excited about this project's potential impact and how we can work together to build a better future.

Envisioning the Future

We discussed the importance of describing and feeling the future in the first-person vernacular at the workshop. To further explore this concept, I want to share a small story of what the future could look like:

Let's imagine 30 years in the future:

Aitae woke up to a notification on her phone that the fleet of vessels in her aquaculture and energy production facility was running smoothly. She could manage the facility's operations from afar with a remote monitoring system.

After going through the logistics, Aitae checked that everything was under control and headed to the facility in her self-driving car. It was just a short automated ferry ride out.

Although the facility was typically without people, she made regular trips to ensure everything was functioning as intended.

Upon arrival, Aitae saw drones flying overhead, conducting routine equipment inspections and checking the fish population. The robots worked tirelessly, maintaining the infrastructure and ensuring the vessels' systems functioned correctly.

Onboard the vessels, Aitae saw that the vessels were using clean fuels produced from waste material and that the aquaculture operations were carried out sustainably with minimal environmental impact. She checked the sensor systems and saw that the fish were healthy and the energy production met customers' demands.

With the help of her co-workers, who monitored and maintained the facility remotely via robot analogs, drone inspections, and sensor systems, Aitae created a state-of-the-art facility operating efficiently and sustainably.

The aquaculture and energy production facility managed by Aitae was essential for the industry and the local community. The facility had created jobs for people in the region, and its sustainable practices had minimal impact on the environment, preserving the area's natural resources.

The fish produced in the facility were being sold locally, providing a fresh and sustainable food source for the people in the region. Clean energy production and materials science have removed the dependence on fossil fuels, making the area more self-sufficient and environmentally friendly.

In addition, Aitae had set up programs to educate the local community about sustainable aquaculture practices and the importance of protecting the oceans. The facility worked closely with local schools and universities, providing hands-on experience for the students and creating a new generation of environmentally conscious leaders.

The facility had become an integral part of the local community, providing economic opportunities and promoting sustainability and environmental awareness. The sustainable practices employed by Aitae and her team had set an example for others in the industry, and they had become a model for sustainable aquaculture and energy production.

As she left the facility, Aitae felt proud of the work that they were doing and the progress they had made in the industry. With remote monitoring, they had created a facility that could run almost entirely without people, reducing their impact on the environment and making operations more cost-effective.

Aitae knew they were on the right track toward a more sustainable and prosperous future for the ocean industry. With the help of technology and innovation, they could continue to make strides toward a better tomorrow.

Impacts of Change

This small story paints a picture of a future where sustainable practices are ingrained in everyday operations, and the impacts of these changes are tangible. This vision of the future inspires me to consider the potential of my project and how it can contribute to creating positive change in the ocean industry.

Motivating Change

At the workshop, we also discussed the importance of motivation and insight in driving change. This small story of the future serves as a motivating force by illustrating a positive vision of what is possible when sustainable practices are embraced. It shows that change is achievable and can lead to tangible benefits. As I reflect on this story, I am encouraged to continue my efforts to promote human-centered practices in the ocean industry and to work towards a future where sustainability is at the forefront of our actions.

Conclusion

In conclusion, the workshop on tornado leadership and Nada Ahmed's insights on authenticity and leadership have inspired me to reflect on the power of change and vision. By envisioning a future where sustainable practices are the norm, we can motivate and inspire others to embrace positive change. As I continue my project on the human-centered ocean industry, I am motivated to work towards building a better future together. Let us strive to tell the story of change and inspire others to join us in creating a more sustainable world.

From the article, I gathered my takeaways and notes from a workshop hosted by the Ocean Opportunity Lab, where Peggy Liu, the "Green Goddess of China," shared her Tornado Leadership methodology and Qigong for leading in the space between the present and future. It highlighted the importance of creating a positive mood for the future we want to build and telling stories of that future to create energy, focus, and momentum for collective action. The focus should be on envisioning what the lives of ocean stakeholders might look like in the future and making it inclusive, safe, smooth, and sustainable. 

By fulfilling the human need to focus on the goalposts, what might the lives of each of our ocean stakeholders be in the future? What will their days look like? How will they feel about their work? What will their work day feel like? How will it flow? Who will they work alongside? What cultural bridges will they make to work together? How will this affect their safety?

How can we find and grow constantly toward an inclusive, safe, smooth, and sustainable future? What can support the transformational growth and implementation of our multi-faceted future? How can we all grow it together? What seeds of the future do we have already:

What is possible for us, and how might we get there?

What would world-class transformation look like?

What would the future collaborative development leadership be?