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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
Sustainability within SPO
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
Sustainability within SPO
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
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
• Who?
• Why do we do it?
• What are we doing?
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
Fair marketing,
Consumer Protection,
Sustainable
Consumption
Community
Involvement,
Employment
Creation, Skills
Development,
Income creation
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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.
NEIA, St. John's 31 Jul 2013
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”.
Sustainability within SPO
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
Why do we do SD?
A boat…...
Profitability: The Business Case
NEIA, St. John's 31 Jul 2013
is a boat..….
is a boat..….
Sustainability within SPO
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
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
NEIA, St. John's 31 Jul 2013
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
Sustainability within SPO
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
• What is Sustainability?
• Why do we do it?
• What are we doing?
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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.
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
Environmental Involvement and Support
• Biosphere Foundation – 3 year grant to support IWC
research on cetaceans and marine mammals off the
coast of Sri Lanka.
NEIA, St. John's 31 Jul 2013
Pigmy Blue Whale, ship-strike.
Sri Lanka Sunday Times, 2010
Sustainability within SPO
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.
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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
NEIA, St. John's 31 Jul 2013
Sustainability within SPO/SPAC
NEIA, St. John's 31 Jul 2013
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.
Sustainability within SPO/SPAC
NEIA, St. John's 31 Jul 2013
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
Sustainability within SPO/SPAC
NEIA, St. John's 31 Jul 2013
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.
Sustainability within SPO/SPAC
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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)
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
REDD+ Carbon Offset Credits -
through investment in threatened
virgin forests in Paraguay
Sustainability within SPO
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)
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
Dry Chaco (L) and
Pantanal Wetlands Transitional Forest (R)
an area rich in bio-diversity
NEIA, St. John's 31 Jul 2013
Without REDD initiatives
the PARF carbon sink
(and bio-diversity)
is lost forever to
ranching (above) and
soy production (left)
Sustainability within SPO
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
Community Involvement and Development
• Education and Culture
• Employment Development
• Social Investment
• Technology Development
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
Community Involvement and 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)
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
Community Involvement and Development
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)
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
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.
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
Community Involvement and Development
• 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.
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
Community Involvement and Development
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.
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
Community Involvement and Development
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).
NEIA, St. John's 31 Jul 2013
Sustainability within SPO
SPO 2010 SD
Report was well
received, and
still sets SPO
apart from its
peer group.
NEIA, St. John's 31 Jul 2013
Thank you
Any questions?
Sustainability within SPO
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
NEIA, St. John's 31 Jul 2013