CSR at its best!

Corporate Social Responsibility, News — By on November 12, 2012 at 8:23 PM

As evidenced by an impressive attendance that exceeded 250 participants, Capital Link successfully organized its 2nd Annual Shipping & Offshore CSR Forum “CSR: Luxury or Necessity” on 31st October 2012 at One Moorgate  – for which we aready referred on the 2nd of November with the briefings from Karianne Tieleman and Stavros Meidanis. The Forum’s objective was to help raise awareness about the practice and benefits of CSR in the shipping and offshore industries. Through this event, Capital Link sought to provide companies with additional incentives to follow CSR practices by publicizing the benefits of CSR not only to a wider audience of shipping and offshore industries, but also to the investment and financial communities as well as to the public at large. The event is part of Capital Link’s objective to become a centralized informational source and communications platform on the topic of CSR, linking industry, government and non-government organizations, industry associations, the financial and investment community and the public. Amongsts the distinguised international delegates, the newly appointed Ambassador of  Greece to the Court of St. James, H.E Konstantinos Bikas accompanied by the Commercial Attache at the Greek Embassy Antonis Katepodes.

Antonis Katedodis, Elias Anastassiadis, Dr. Stavros Meidanis, H.E The Greek Ambassador Konstantionos Bikas, Olga Bornozis and George A. Tsavliris

Capital Link’s Vice President,   Olga Bornozi, pointed out in her welcome remarks that following the resounding success of the first forum, Capital Link proudly continued with the 2nd Annual Shipping & Offshore CSR Forum in London, the international hub for the maritime industry. Ms. Bornozi went on to emphasize that while there are several events on specific issues such as safety and the environment, the Capital Link Forum is the only event focusing on the whole range of CSR issues in the shipping and offshore industries.

The need and significance of Corporate Social Responsibility (CSR) continues to grow and evolve in an increasingly diversifying global economy, which is apparent in the technological innovation involved in building new ships, the supply side of shipping, the emerging financial and commercial advantages, and the rising demand for maritime safety. Yet, the lack of information and misinformation makes it difficult for industry professionals, from shipowners to banks, to realize the long-term benefits of integrating CSR programs and initiatives into their own corporations and organizations. With this event, Capital Link continues to pioneer when it comes to linking the international shipping industry to the wider investment community, through its shipping portals, maritime indices, webinars, newsletters, and conferences taking place across New York, London, and Athens.

PRESENTATIONS

Clay Maitland

Clay Maitland, Founding Chairman – NAMEPA and Managing Partner – International Registriesinaugurated the proceedings of the Forum as Keynote speaker and presented on “CSR and the Maritime Industry”. When NAMEPA was founded precisely five years ago, it was realized that shipowners, like brand owners in any industry, needed to protect their reputation, and therefore their commercial marketability, by establishing criteria to prove to investors, lenders, charterers, insurers and regulators, as well as the public, that their ships were safe and environmentally sound. Today, many of the world’s leading shipping companies have entire departments devoted to CSR. CSR is now about good business: a ship manager will embrace a system that demonstrates that it can provide reliable, well-trained crew, and that it has built into its operational plan sound environmental, health and safety policies. In these hard times, CSR is a constructive economic force: it encourages our industry to be more frugal in its use of resources, and more imaginative in the way it thinks about competitive advantage. CSR is also a vital tool in risk management and the best evidence of effective safety management. It has an important impact on insurance costs and regulatory burden: witness the growing importance of the International Safety Management Code. A strong CSR framework is more than an effort to engage with society on its own terms: it is good business.

Dr. Stavros Meidanis

Stavros Meidanis, LRQA/Marine Business Centre Manager – Lloyd’s Register presented under the topic of “Environment” on “Corporate Social Responsibility & the Shipping Industry : Towards a sustainable journey”. Corporate Social Responsibility (CSR) is one of the hottest topics of the 21st century. The meaning of Sustainability and the necessity of achieving it, is becoming gradually, widely acknowledged and understood by the public worldwide. Shipping contributes significantly to the three pillars of sustainable development – Social, Environmental and Economic. It facilitates global commerce and the creation of wealth and prosperity among nations and people. Establishing a sustainable maritime transportation sector is essential to the development and growth of the world’s economy. Without shipping, it is very difficult to think the future of the global economy. To give the industry the best chance of thriving in this new world, it will need to work constructively with customers, regulators and other stakeholders to implement new technologies and a progressive, co-ordinated regulatory framework that provides investment certainty, transparency and, of course, sustainability. Remind you the 2nd of November broader account: http://www.allaboutshipping.co.uk/2012/11/02/corporate-social-responsibility-and-the-shipping-industry-towards-a-sustainable-journey/

Karianne Tieleman

Karianne Tieleman, Head of Risk & Portfolio Management, Energy & Transportation – ABN AMRO presented on “CSR as a Financial Advantage”. The ship finance market today faces several challenges. The shipping industry is facing one of the worst slumps. There is still a significant part of the order book that requires finance. Banks today play an important role in the financing of the existing fleet, but their role is changing. Since 2008 (financial crisis) we see a trend of banks exiting ship finance. Ship owners will need to seek for other sources of funding and convince active ship finance banks of the competitive advantage of their company. Commitment to CSR can play a role here. There is a trend of banks and investors focusing more on responsible and sustainable investments. A bank like ABN AMRO takes CSR into consideration when evaluating projects. In addition a recent study of Eurosif indicates that professional European investors are focused on CSR. Random checks at website of private equity houses that are believed to have investments in shipping indicate that sustainability is an integral part of investment decision making.  Please do see a more comprehensive view on: http://www.allaboutshipping.co.uk/2012/11/02/csr-as-financial-advantage-or/

Roger Strevens

Roger Strevens, Vice President, Global Head of Environment – Wallenius Wilhelmsen Logistics presented on “Technological Innovation”. The presentation expanded on Wallenius Wihelmsen Logistics’ view that technological innovation is an enabler of progress towards its zero emissions ambition for an overall positive impact on profit, the environment and the communities in which it operates. It demonstrated how the choice to engage with technology is typically driven by the need for compliance or the promise of competitive advantage. Finally, key considerations from the different phases of the journey from the first encounter with a new, unfamiliar technology through to something which has become incorporated into an accepted way of working were also discussed.

John Boreman, Marine Director – Intertanko presented an overview of the INTERTANKO 5- year Strategic Plan, which is based around a scenario of strong environmental concerns within an unstable geopolitical situation. This plan identified seven major Issues as key elements: Sustainability, Human Element, Tanker Safety and Performance, Greenhouse Gas Emission Reduction, Air Emissions Reduction, Ballast Water Management and Maritime Security Threats. All the elements have a place in companies’ CSR policies. Four items were explored further in terms of CSR: these were Human Element, Ballast, Sustainability and Piracy. Human element issues feature in 80% of incidents and are sure to feature prominently as companies continuously look to improve. Seafarers work in a highly regulated and managed environment; within this companies really understand how well rules are followed, procedures implemented and values embraced. The industry invest heavily in training and this in turn must be continuously assessed for effectiveness not just compliance. Safety cultures should be regularly refreshed to ensure there is a fresh, enthusiastic approach to safety with a real understanding of its value and need. Ballast Water Management requirements were given as a good example where regulations are implemented in very good faith, but technology and rules make the actual implementation very difficult for owners, who are genuinely looking to do the right thing and get systems right first time. Not least considering the huge costs involved. Sustainability is presently the biggest issue facing tanker owners. Deep concern was expressed that the current tanker market rates are consistently below ship owners’ operating costs and it can be seen owners are failing. INTERTANKO’s Chairman,

Capt Graham Westgarth was quoted: “If these rate levels continue for a long period, this could lead to a situation where sustainability of the oil transportation industry is threatened.” “Our Members operate tankers to the highest standards and will continue to do so. Operating for a prolonged period in an environment where tanker owners are not even covering their operating costs is obviously not a situation that can be maintained.”

Mark Handin, Regional Vice President – Africa & Europe – Tidewater Marine., presented on the “Offshore Sector”. Tidewater is the leading provider of large Offshore Service Vessels to the global energy industry. The company’s fleet is deployed in the major offshore oil and gas areas around the world. Working in over 30 countries presents a unique operating challenge that Tidewater addresses through Corporate Social Responsibility. Tidewater’s CSR program focuses on service to employees, service to communities where they work, and an innovative Health, Safety, Environment program. As part of their CSR program, Tidewater’s safety philosophy is that no job is so important that they cannot take the time to do it correctly and safely.

DISCUSSION PANELS

The environmental panel: Carleen Lyden-Kluss, D. Stavros Meidanis, Merjin Houage and John Aitken

“Environment” Moderator: Carleen Lyden-Kluss, Executive Director – NAMEPA Panelists: Stavros Meidanis, LRQA/Marine Business Centre Manager – Lloyd’s Register, Merijn Hougee, Project Manager – Clean Shipping Coalition,   John Aitken, Secretary General – SEAaT The Environmental panel discussed how in the midst of the current recession, the environment has fared in terms of corporate priorities as well as how the industry is doing on the environment from a performance standpoint. They went on to debate the validity of the claim that many shipowners are complaining that they are being unfairly burdened by regulations and particularly environmental regulations. The panellists also discussed if environmental regulations, such as Ballast Water Management and the Emission Control Areas have outpaced technology as well as if the flag/port states will be aggressive in enforcing the regulations. The greatest challenges to the marine and offshore industries now and in the next 5 years were also outlined along with the possibility of the industry developing alliances/consortiums that might facilitate compliance. The session was concluded with suggested advice to shipowners as they work to meet regulatory requirements.

“Technological Innovation” Moderator: Richard Meade, Editor – Lloyd’s List Panelists:  Jakob Buus Petersen, Director of Energy Efficiency – ABS, Diane Gilpin, Development Director – B9 Shipping,   Roger Strevens, Vice President, Global Head of Environment – Wallenius Wilhelmsen Logistics,   Nishatabbas Rehmatulla, Doctoral Researcher – UCL Energy Institute Among others this panel pointed out that CSR should perhaps be a more holistic approach to the whole gambit of responsible agendas and that in effect is a mindset change. This change is probably difficult for shipowners especially when looking at a bleak financial horizon right now. What was also debated was if the current technology situation is an enabler or just market forces at play rather than CSR. Another point that was made is that it is a great opportunity for the shipping sector to start looking at the way they can redesign for resilience. The current barriers to technology were discussed as being mostly informational ones as well as the split incentives. Industry has been reactive to regulatory change and has embraced it. What was also debated was in terms of the proven technology out there; what is stopping shipowners from optimising designs and if it is just a question of finance. Points that were also made included if the contractual arrangement of who pays for the fuel, being a major impediment, can be changed as well as how technology such as ballast water treatment and scrubbers affect the CO2 print.

The Ship Recycling Panel: Dr.Anil Sharma, Dr. Nikos Mikelis, Harry Malandreniotis and Richard Meade

“Ship Recycling” Moderator: Dr. Anil Sharma, President, Founder and CEO, Global Marketing Systems, Inc. (GMS), Panelists: Dr. Nikos Mikelis, Head, Marine Pollution Prevention and Ship Recycling Section, Marine Environment Division, International Maritime Organization (IMO), Harry Malandreniotis, Managing Director – Headway Ltd,   Richard Meade, Editor – Lloyd’s List This panel debated the view that for people outside the industry, CSR and recycling ships in South Asia are perceived to be mutually exclusive as well as what needs to be done to change this perception. The panelists also discussed if the recycling of vessels in accordance with the technical standards contained in the Hong Kong Convention equate to a good CSR program. They went on to discuss the view that despite the developments in the industry and the growth of programs that can cost-effectively recycle ships in a safe and environmentally responsible manner, an overwhelming majority of sellers focus on price rather than quality of yards and the program, as well as how this view can be changed. Another point that was emphasized was if and how the media can play a part in the growth of CSR in ship recycling. The panel concluded with the discussion about CSR being a luxury or necessity.

Captain Kuba Szymanski

“CSR and the Human Factor”Moderator: Capt. Kuba Szymanski, Secretary General – InterManager Panelists: George Tsavliris, Principal – Tsavliris Salvage Group, Revd. Canon Ken Peters, Director of Justice & Welfare – The Mission to Seafarers,   John Adams, Managing Director & Head of Marine HR – Teekay Corporation Capt. Szymanski set the scene by asking whether humans are part of the environment; the audience was of the opinion that obviously Humans are part of the environment. He went on to question how come we are so concerned about spills, birds, garbage, and allow fellow humans – seafarers to legally work 92 hours per week, that we still have deeply rooted blame culture, that very few of the seafarers have medical insurance when at home and 70% of our sea staff is being “hired and fired” every trip and that only 8% of people at sea have credit cards. The panel debated how the concept of CSR is being sold to the seafarers, how the image of the industry could be further improved, how to fight the lack of trust, the design of the vessels with human element in mind and how to improve retention rates. The panel concluded that the industry has more and younger people joining it and there is no shortage of seafarers.

George A Tsavliris, The Rev. Ken Peters and John Adams

“The Demand for CSR in Shipping” Moderator: Sam Kimmins, Principal Sustainability Advisor – Forum for the Future Panelists: Capt. Jonathan Stoneley, Environment & Compliance Manager – Cargill,   Merijn Hougee, Project Manager – Clean Shipping Coalition,   Jan Fransen, Managing Director – Green Award Foundation The panel discussed the importance of CSR being a core part of a company’s strategy, rather than a ‘bolt-on’ to business as usual. Merjin Hougee reinforced the importance of tangible action, as opposed to paper commitments. Jan Fransen described how the demand for Green Award (as evidence of beyond compliance performance) has remained, despite the economic downturn, suggesting that good performance in CSR is increasingly seen as an important differentiator in a competitive market. Jonathan Stoneley gave the example of how Cargill are integrating CSR requirements within their charter agreements, to ensure energy and emissions considerations are included in commercial decisions.

….at the lunch break Karianne Tieleman with William de Jong

Back from lunch for the afternoon on sessions Lena Gothberg and Lesley Thompson

“The Supply of CSR in Shipping” Moderator: Clay Maitland, Founding Chairman – NAMEPA & Managing Partner – International Registries Panelists:  Vassilis Papageorgiou, Vice Chairman – Tsakos Group,   John Adams, Managing Director & Head of Marine HR – Teekay Corporation, Dirk Vande Velde, Environment & Social Business Affairs Director – Mediterranean Shipping Company (MSC) This panel discussed what shipowners deliver through their operations in terms of CSR deliverables. Tsakos Group in terms of safety and the environment, Teekay Corporation reporting on what it does in terms of people, economics, the environment and their competency management system and MSC their internal CSR policy in terms of society, health & safety, the environment, the Sustainable Ports & Shipping Network and the safety project CINS (Cargo Incident Notification System) whose founding members are MSC, Hapag-Lloyd, Maersk, CMA & Evergreen. CSR has a business commercial value and shareholders and the financial markets want to see that one acts responsibly. What was also debated was if as ship operators they are able to give the industry a more transparent series of performance indicators which can also serve as indicators to the wider world. Another point that was made was if personal injury data is available to the charterers. SEEMP (Ship Energy Efficiency Management Plan) regulation was also discussed in terms of it being an opportunity for the smaller operators to use regulation to their advantage to take the first step on a CSR journey.

“Ports” Moderator:  Jan Fransen, Managing Director – Green Award Foundation Panelists: Mr. Dirk Vande Velde, Environment & Social Business Affairs Director – Mediterranean Shipping Company (MSC),   Patrick Verhoeven, Secretary General – European Sea Ports Organization (ESPO), Richard Marks, Director – ICHCA International Ltd. The panel discussed how the European Ports are affected in terms of the port stakeholders’ expectations from the ports in terms of their CSR policies. What were also discussed were the drivers for port planners to choose green technology. There is a major need for all parties in the supply chain to work together as they have common interests; port authorities have also the public authorities and the general public to deal with. MSC mentioned the Sustainable Ports & Shipping Network and the World Port Climate Initiative and their importance. It was noted that sometimes smaller ports have stronger CSR policies than larger ports. The panel also referred to the draft European Parliament report on ports having to charge a due, through the port dues, which will be used to build a fund that will finance environmentally sound recycling of European flagged ships. The panel concluded that CSR is a bare necessity for ports and port authorities.

“Maritime Safety – Cost or Opportunity” Moderator:  Julian Bray, Editor in Chief – TradeWinds Panelists: Dr. Peter Swift, Former Managing Director – Intertanko, Rob Lomas, Secretary General – Intercargo, Mike Powell, Head of Industry Liaison, Chenega UK – Open Ocean Without adequate safety for ships, their cargo, the environment and most importantly their crews, corporate social responsibility in the shipping industry adds up to little. Safety standards may have improved across the industry in recent years, however, many arguably avoidable incidents still occur. Yet owners and operators who strive to achieve best practice standards are often left with difficult choices between intense price pressures and sporadic regional enforcement of notionally global regulations. Nowhere has this been more evident in recent years than in the Red Sea and Gulf of Aden where ships have faced hijack and ransom by Somali pirates. In the absence of sufficient international naval policing, responsible ship operators have chosen to pay for private security services. However, these operate in a largely unregulated environment which raises further safety risks, while those ships without protection are more vulnerable but are able to compete for business because of their lower costs.

GLOBAL SPONSORS

• Global Lead Sponsors: ABN AMRO, Tsakos Energy Navigation, Lloyd’s Register

• Global Sponsors: Global Management Systems Inc. (GMS), The Marshall Islands Registry EVENT SPONSORS ABS SUPPORTING SPONSORS Onassis Foundation, Olympic Shipping and Management S.A., Tidewater

SUPPORTING ORGANIZATIONS

NAMEPA, SPNL, Carbon War Room, ICC Commercial Crime Services, IMASMA, Sustainable Shipping Initiative, Seafarer Help, Maritime Piracy.

MEDIA PARTNERS

Elnavi, Lloyd’s List, NafsGreen, Sustainable Shipping, The Maritime Executive, Worldoils, AllAboutShipping.co.uk.

CONFERENCE MATERIAL

All conference material is available on Capital Link’s website, at: http://forums.capitallink.com/csr/2012london/index.html?articleID=xnHf2amvpdwwoGE

ABOUT THE ORGANIZERS

CAPITAL LINK

Capital Link is a New York-based Advisory, Investor Relations and Financial Communications firm. Capitalizing on our in-depth knowledge of the shipping industry and capital markets, Capital Link has made a strategic commitment to the shipping industry becoming the largest provider of Investor Relations and Financial Communications services to international shipping companies listed on the US and European Exchanges. Capital Link has developed new initiatives aiming to become an information hub on CSR matters in the shipping and offshore industries. Capital Link’s headquarters are in New York with a presence in London and Athens. Operating more like In our effort to enhance the information flow to the investment community and contribute to improving investor knowledge of shipping, Capital Link has undertaken a series of initiatives beyond the traditional scope of its investor relations activity, such as:

www.CapitalLinkShipping.com A web based resource that provides information on the major shipping and stock market indices, as well as on all shipping stocks. It also features an earnings and conference call calendar, industry reports from major industry participants and interviews with CEOs, analysts and other market participants. • www.MaritimeCSR.com A web hub with information on CSR issues in the shipping and offshore markets; company and regulatory news, interviews, events etc. Weekly Capital Link Shipping Newsletter Weekly distribution to an extensive audience in the US & European shipping, financial and investment communities with updates on the shipping markets, the stock market and listed company news. www.CapitalLinkWebinars.com

Sector Forums & Webinars: Regularly, we organize panel discussions among CEOs, analysts, bankers and shipping industry participants on the developments in the various shipping sectors (containers, dry bulk, tankers) and on other topics of interest (such as Raising Equity in Shipping Today, Scrapping, etc). Capital Link Investor Shipping Forums In New York, Athens and London bringing together investors, bankers, financial advisors, listed companies CEOs, analysts, and shipping industry participants.

www.MaritimeIndices.com Capital Link Maritime Indices: Capital Link developed and maintains a series of stock market maritime indices which track the performance of U.S. listed shipping stocks (CL maritime Index, CL Dry Bulk Index, CL Tanker Index, CL Container Index, CL LNG/LPG Index, CL Mixed Fleet Index, CL Shipping MLP Index – Bloomberg page: CPLI. The Indices are also distributed through the Reuters Newswires and are available on Factset. Capital Link Media Interviews TV, Audio and Print Interviews of CEOs and other industry participants on topics of interest; disseminated to our extensive investor and industry database as well as to all major financial portals.

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