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1 Environmental Boundaries "Climate change" is one of several environmental processes with the potential to critically impact our way of life. There are some environmental boundaries that shouldn’t be crossed. Whether we have or don’t know if we have, we still need to choose a course to steer.

1 Environmental Boundaries "Climate change" is one of several environmental processes with the potential to critically impact our way of life. There are

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Environmental Boundaries

"Climate change" is one of several environmental processes with the potential to critically impact our way of life.

There are some environmental boundaries that shouldn’t be crossed. Whether we have or don’t know if we have, we still need to choose a course to steer.

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Environmental Boundaries

STAKEHOLDER INFLUENCE

REGULATORY FRAMEWORK

COMPANY POLICIES

What’s out here?

Strategic Vision for 2020: Operating within Environmental Boundaries

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Environmental Boundaries

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Environmental Boundaries

New millenium arrives

Anthropocene Age begins

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Environmental Boundaries

Climate Change?....

Sounds bad. But, what does it mean to me?

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Environmental Boundaries

New Scientist www.newscientist.com/special/ocean-to-ozone-earths-nine-life-support-systems

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Environmental Boundaries

Ozone Depletion

Aerosol Loading

Climate Change

Chemical Dispersion

Biodiversity Loss

Land Use

Fresh Water Use

Nitrogen/Phosphorus

Ocean Acidification

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Boundary

< 276 Dobson units

TBD

387 > 350 CO2 ppm

TBD

>100 10 species pmper year

11.7 15 per cent cropland

2,600 4,000 km3/year

Nitrogen 133 39 M tonnes/year

Phosphorus 10 12 M tonnes/year

< 2.75 Ω units 2.90

Scientific American Magazine March 19, 2010

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Environmental Boundaries

Ozone Depletion

Aerosol Loading

Climate Change

Chemical Dispersion

Biodiversity Loss

Land Use

Fresh Water Use

Nitrogen/Phosphorus

Ocean Acidification

REGULATORY FRAMEWORK

COMPANY POLICIES

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Environmental Boundaries

IMO Conventions

Lloyds Register's "Shipping and the Environment, 2011 spring

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Environmental Boundaries

Are we doomed?....

What can we do?

100,000 years

10 -15 years strategic planning

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Environmental Boundaries

Ozone Depletion

Aerosol Loading

Climate Change

Chemical Dispersion

Biodiversity Loss

Land/Water Use

Fresh Water Use

Nitrogen/Phosphorus

Ocean Acidification

STAKEHOLDER INITIATIVES

COMPANY POLICIES

ASSESSENGAGEMONITOR

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Environmental Boundaries

Going to the chalk board…

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Environmental Boundaries

THE PROCESSCAUSE (our contribution) EFFECTS

In what way might our operations be contributing to the problem?

Glo

bal

What changes are expected on a planetary scale?

Regio

nal

What impact might we see in our operating region?

Ranking: LOW, MODERATE, HIGH What priority does this process need to be given in our business planning?

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Environmental Boundaries

About cause and effect relationships…

INPUTS OUTPUTSPROCESS

Causes Effects

INPUTS OUTPUTSPROCESS

Causes Effects

Actions or Conditions

Land Use

Biodiversity

Climate ChangeOcean AcidificationChemical Dispersion

A

B

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Environmental Boundaries

One bite at a time…

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Environmental Boundaries

BIODIVERSITY

CAUSE (our contribution) EFFECTS

damage to habitats (not necessarily destruction but the intrusions that disrupt species comfort) introduction of invasive species without local predators

Glo

bal

loss of species threat to food chains loss of food and pharmaceutical sources

Regio

nal

loss of species important to the ecology, industry, and tourism pest infestations (expansion of less favourable species)

Ranking: LOW - substantial regulatory regimes already in place regionally; only a modest impact on the established business

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Environmental Boundaries

#1 - Even a child can understand it…

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Environmental Boundaries

OZONE DEPLETION

CAUSE (our contribution) EFFECTS

Release of CFCs, HCFCs from refrigerated equipment, fire suppression, solvents

Glo

bal

increase in UV-B radiation skin cancer damage to crops damage to marine phytoplankton ozone hole over Antarctica largest in 2006 40% reduction over the Arctic this year

Regio

nal

Ranking: MODERATE - potential for regulatory agenda to be advanced

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Environmental Boundaries

2. Public health costs…

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Environmental Boundaries

LAND USE ~ MARINE HABITAT USE

CAUSE (our contribution) EFFECTS

food consumption (harvesting of food sources requiring large land or marine habitats for production) food waste (inefficient and over consumption) development to accommodate transportation needs of growing populations

Glo

bal

forests, wetlands and other vegetation types are converted primarily to agricultural land negative impact on biodiversity shifting vapour flows (hydrological cycle)

Regio

nal

potential use conflicts over land and marine habitats potential boundary conflicts over the encroachment of food production into previously open operating areas.

Ranking: MODERATE - large operational footprint; service expansion over 50 years into some locations with high potential for industrial food production (marine habitat)

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Environmental Boundaries

3. Local solutions

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Environmental Boundaries

FRESHWATER USE (and Hydrological Cycle)

CAUSE (our contribution) EFFECTS

domestic/hotel service consumption industrial consumption

Glo

bal

global-scale river flow change large human populations suffering health stress from insufficient water impact on biodiversity

Regio

nal

water shortage (specific concerns in Gulf Islands) increased cost of water resource increased cost of drinking water higher risk of drinking water contamination when sources are drawn down (e.g., arsenic, salt/brackish water)

Ranking: HIGH - freshwater consumption is not currently managed ashore or on vessels

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Environmental Boundaries

4. Resilience (toughness) over sustainability

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Environmental Boundaries

NITROGEN/PHOSPHORUS

CAUSE (our contribution) EFFECTS

sewage waste chemical cleaners and soaps

biofuel (indirect) crop sources with high nitrogen fertilizer requirements

Glo

bal

significant alteration of the natural N2 cycle more than 400 dead zones have formed along continental coastlines, where fertilizer pollution causes algal blooms and hypoxic regions

Regio

nal

reactive nitrogen pollutes waterways and coastal zones loss of marine biodiversity nutrification (boosting algal growth) of water sources

Ranking: LOW - sewage discharge reductions in progress; continual evaluation of cleaning products in use.

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Environmental Boundaries

OCEAN ACIDIFICATION

CAUSE (our contribution) EFFECTS

CO2 emissions into atmosphere dissolve into the ocean creating carbonic acid:

fossil fuel combustion use of energy derived from a carbon emitting process decomposition in land fills

Glo

bal

damages shell and skeleton formation in organisms such as corals, and some shellfish and plankton species change ocean ecology and potentially lead to drastic reductions in fish stocks

Regio

nal

potential for very large change in marine ecosystems potential loss of species important to food industry, and tourism

Ranking: MODERATE - significant contributer with only limited regulation; North American “Emissions Control Area” pending (2012).

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Environmental Boundaries

CLIMATE CHANGE

CAUSE (our contribution) EFFECTS

Greenhouse gas (carbon) emissions into the atmosphere:

fossil fuel combustion use of energy derived from a carbon emitting process decomposition in land fills

Glo

bal

increase in average global temperatures loss of fresh water from polar and glacial ice masses increase in sea level

Regio

nal

change in weather patterns (e.g., persistent fog in operating region) potentially greater extremes in weather potential shoreline erosion that can undermine terminal infrastructure

association with human health issues related to air quality

Ranking: HIGH - significant contributer with only limited regulation; regional effects can have direct impact on the continuity of operations; changes required to infrastructure

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Environmental Boundaries

AEROSOL LOADING

CAUSE (our contribution) EFFECTS

Particulate emissions

engine emissions (vessels and vehicles)

Glo

bal

impact on global climate systems (e.g., monsoon circulation systems) global warming and “dimming”

Note: having no particulates in the atmosphere is also bad – acts as a protective shield and enables cloud formation.

Regio

nal

human health impact in the local airshed potential effect on local weather from global climate systems

Ranking: MODERATE - stop/go, idling and manoevering are unavoidable for our vessels and for our vehicular traffic; limited regulation; high concern to local populations

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Environmental Boundaries

CHEMICAL POLLUTION

CAUSE (our contribution) EFFECTS

loss of chemical containment toxic compounds such as metals various organic compounds industrial processes (e.g., ship repair) material disposal vessel disposal

Glo

bal

organism uptake and accumulation to sub-lethal levels increasingly cause a dramatic reduction of marine mammal and bird populations reduced fertility potential of permanent genetic damage

Regio

nal

impact on local biodiversity

Ranking: HIGH - most of the high contribution sources are beyond direct control but can be attributed to our business; potential high costs; boundaries remain undefined

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Environmental Boundaries

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Environmental Boundaries

What do we do? Where do we take it from here?

OPERATING within the BOUNDARIES

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Environmental Boundaries

SUSTAINABILITYRESILIENCE

Now Future

STRATEGY DEVELOPMENT

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Environmental Strategies

BOUNDARY RANK STRATEGY

Climate Change High A. Stakeholder – permanent engagement with leading NGO’s (review and TBD)

B. Regulatory – continuous monitoring of developments in local and foreign jurisdictions

C. Managementi) metrics development for business activities (direct and indirect)ii) energy management plans (ship and shore)iii) waste management plans

D. Preparednessi) infrastructure risk assessments where current construction standards are not applicable;ii) alternative energy planning

Chemical Pollution High A. Regulatory - continuous monitoring of developments in local and foreign jurisdictions

B. Management – inventory high risk substances

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Environmental Strategies

BOUNDARY RANK STRATEGY

Freshwater Use High A. Stakeholder – regular contact with water control authorities and utilities planning

B. Management i) metrics development for business activities (direct and indirect)ii) water use policy implementationiii) water recycling

Habitat Use(Land & Marine)

Moderate A. Stakeholder – PNCIMA; review other influential regional NGO’s

B. Management i) develop an in-house educational tool for operational personnelii) research impact reduction options for operations in potential conflict areas

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Environmental Strategies

BOUNDARY RANK STRATEGY

Ozone Depletion Moderate A. Regulatory - periodic monitoring of developments in local and foreign jurisdictions

B. Management i) inventory high risk substancesii) renewal plan for ODS equipment

Ocean Acidification

Moderatesame as Climate Change

Aerosol Loading Moderate A. Stakeholder – engagement with leading NGO’s (review and TBD); engagement with regional government authorities (BC Marine Vessel Air Quality Working Group)

B. Regulatory – continuous monitoring of developments in local and foreign jurisdictions

C. Management - in-house educational tools

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Environmental Strategies

BOUNDARY RANK STRATEGY

Nitrogen/Phosphorus

Low A. Management i) product selection policies and continual evaluation process – vetting products and servicesii) sewage pump ashore programiii) plant operation monitoring and improvement initiatives

Biodiversity Loss Low Management – in-house education

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Environmental Boundaries

• What should be measured?

• What should be reported?

• Materiality is crucial

MEASURING AND REPORTING

GRI Sustainability Reporting Guidelines

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Environmental Boundaries

• Marine industry: CMAC, CFOA, Chamber of Shipping, IOAC

• United Nations: Environmental Programme, Global Compact, Global Reporting Initiatives

• NGOs: Rainforest Alliance, International Chamber of Commerce, WRI

STAKEHOLDER ENGAGEMENT

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Environmental Boundaries

1. Is the threat easily understood

2. Public health threats

3. Local will take precedence over global

4. Resilience before sustainable

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Environmental Boundaries

• Establish the industrial and regulatory capacity to deliver solutions for the here and now (resilience based)

• Operators be prepared to deal with technical and administrative complexity in the near term.

• Work in the longer term towards simplicity and sustainability.

CANADIAN MARINE INDUSTRY

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Environmental Boundaries

Questions?

What it means to be human in our generation: What it means to be human in our generation: ""The human is but one life form among many, and what The human is but one life form among many, and what distinguishes us from the larger community of life is not distinguishes us from the larger community of life is not our power to subdue but our responsibility to protectour power to subdue but our responsibility to protect ." ."

Tom ReganTom Regan

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Contact Information:

Greg PetersonDirector, Fleet Performance & EnvironmentBCF Richmond604-204-2330

[email protected]