An overviewMay 2011

www.forumforthefuture.org/projects/sustainable-shipping-initiative

The Sustainable Shipping Initiative brings together some ofThe Sustainable Shipping Initiative brings together some of the industry’s biggest names to plan out how shipping can contribute to – and thrive in – a sustainable future

SSI objective

Our goal is to gtransform the global

shipping industry and shipping industry and the wider maritime

sector establishing a sector, establishing a new, sustainable

approach as the normapproach as the norm

© BP Shipping

Strategic: the Initiative looks beyond

immediate regulatory Balanced: while recognisingimmediate regulatory concerns to the key

challenges and trends, and frames an ambitious

g gclimate change, the SSI will also

address wider sustainability issues such as biodiversity,

opportunity agenda for the industry.

transparency and economic development.

Independent: while most members will have most members will have legitimate commercial

interests, the involvement of Forum for involvement of Forum for

the Future and WWF ensures that it acts as an

independent force for

Integrated: bringing together shipping

i d k

Global: a multinational membership to address

l b l

independent force for sustainable

development, reinforcing constructive interaction

companies and key stakeholders like customers and financiers.

global concerns.constructive interaction

with policy-makers.

90% of the world’s The impactworld’s international trade travels by sea by sea

importance of shippingimportance of shipping

© istock

importance of shippingof shipping

the the industry yaccounts for 3 4% of for 3-4% of global CO2 emissions

© Jeff Nagy / istock

“Emerging technology will require a more technical approach

The impacttec ca app oac than we have traditionally required for mariners for mariners, changing the entire demographic profile of seafarers”of seafarers”Peter Hinchliffe, Secretary General, International Chamber of Shipping

© Alfredo Tisi / istock

Why the SSI is needed now

• Industry moving at the speed of the slowest with reactive th th t t i hrather than strategic approach

• Emerging demand for reduced supply chain impact from shipping customersshipping customers

• Danger of blow back on the industry – unpredictable fuel costs and piecemeal, inconsistent climate change

measures• Leadership from within the industry is required to help

catalyse changecatalyse change

How change happens

We need leadership to drive the kind of change in the industry that is needed to meet the scale of the challenges we face. In some cases this will be incremental change – such as growing a better skills base to organise the ships of the f t reto organise the ships of the future.

But in others it will be more radical the uptake of newBut in others it will be more radical – the uptake of new technologies and financing models to dramatically reduce carbon, for example. Either way, it is important for leaders , p y, pto understand how change can happen in the industry and what the most effective routes to change are likely to be.

How change happens

Forum for the Future has been exploring this sort of change for the past 15 years.

We have learned that there are a series of things that need gto happen to change an industry or sector. These are captured in its ‘six steps to significant change’ – a f k th t bi h th ith h t hframework that combines change theory with what has been seen in practice.

Forum’s 6 steps |to significant changeTo find out more visit this page: www.forumforthefuture.org/blog/six-steps-to-significant-change

Levers for changeLevers for change

The SSI has identified a number of factors influencing the way change The SSI has identified a number of factors influencing the way change happens in the industry:

•Changes in•Changes in customer demand

•Individual leadership•Market prices

•Technological innovation andTechnological innovation and replacement

•Regulatory change

© tunart / istock

Key phases of the SSI

Each phase of the project maps onto the 6 steps to change and takes into account the levers for change in the industry.

We’re just concluding Phase 1: The Case for Action and are about to start Phase 2: Vision 2040

Aim:Identify the

strategic trends hi h ill ff t which will affect shipping over the next 30

Outputs:Case for Action

report will be the next 30 years

report will be released 17th

May 2011 and May 2011 and free to

download

The 3 key challenges

Challenge 1: Navigating a changing economic context

Challenge 2: Increased scrutiny, higher expectations

Challenge 3: The future of energy and climate change

seven megatrends facing the

4 Moving on from

shipping industry

4. Moving on from oil – the future of energy

1. The Global Economy: Emerging Giants?

5. Demanding higher standards: sustainability

2. Freedom vs level playing field:

sustainability regulation

2. Freedom vs level playing field: Ocean Governance 6. Advancing

technology – making it pay

3: No secrets: demand for 7. Adapting to a h i li ttransparency changing climate

Aim:•Create a vision for an industry in 2040 that is

resilient profitable and resilient, profitable, and socially and environmentally

responsible.•The Vision will be positive,

forward looking and strategic. Outputs:

•It will capture the opportunity agenda for the

industry and provide a

pAn industry

vision and set of iindustry and provide a

framework for shaping the future that SSI want.

commitments

Aim:Develop an action plan

to future proof the shipping industry and

achieve the vision. Likely to involve the

Outputs:A series of Likely to involve the

SSI members and the wider industry

A series of specific, practical

innovation yprojects/ work

streams

Aim:Producing tangible

examples of t i bl hi i sustainable shipping

to enthuse, inspire and lead the wider

Outputs:Tangible and lead the wider

industry to achieve the Vision

Tangible examples of a

truly sustainable industry

Critical success factors of the SSICritical success factors of the SSI• generates firm commitment through a compelling Case for Action -

which can become the first point of reference for stakeholders on industry c ca beco e e s po o e e e ce o s a e o de s o dus yimpacts and action

• make sustainability mainstream - engaging the wider industry over the course of the initiative. That starts with an inspiring Vision which can engage the ‘hard to reach’

• inspirational and about opportunity - Highlight SD advantages and achievements of shipping (as well as the challenges) and demonstrates

titi d t f ti t i bilit ticompetitive advantage from proactive sustainability action• a clear focus on change - Identifies and acts on the levers for change in

the industry – clarity on the questions that need to be answered by this group of leadersgroup of leaders

• industry owned - Momentum amongst the leaders to take the initiative forward

• result in new practice - new collaborative solutions that start to answer • result in new practice new collaborative solutions that start to answer the big questions e.g how to transition to a more sustainable fuel mix; how to respond to piracy; how to manage changing trade routes; how to retrofit the global fleet; how to develop and maintain key skills

Find out more:www.forumforthefuture.org/projects/sustainable-

shipping-initiative

To sign up to the SSI mailing list send an email to ssi@forumforthefuture.orgto ssi@forumforthefuture.org

@S tShi i @SustShipping...........