rewarding Sustainability

rewarding Sustainability Anuj Chopra 23 October 2014

RightShip – Rewarding Sustainability Today’s discussion • RightShip • Finding a green ship in a blue ocean • EVDI - Environmental ratings • Port Incentive Program • Conclusion

RightShip – Rewarding Sustainability About rightship • Independent company formed in Oct 2001 • Houston, Melbourne & London • 240+ customers globally • Ship Vetting & Risk Management • Petroleum & dry cargo vetting service • Environmental rating & CO2benchmarking • Largest provider of third party vetting services • Removed over 950 Ships from customer supply chains in 2013 • Award winning Proven System • ISO9001 & ISO27001 certified • Australian Prime Minister’s 2013 Exporter of the Year

RightShip – Rewarding Sustainability Finding a green ship in a blue ocean

RightShip – Rewarding Sustainability Who are our stakeholders?

RightShip – Rewarding Sustainability Combat Information Asymmetry

RightShip - Rewarding Sustainability Rightship’s environmental ratings

RightShip - Rewarding Sustainability Defining efficiency • Energy Efficiency Design Index (EEDI) / Existing Vessel Design Index (EVDI) • A formula to calculate the amount of CO2 emitted (in grams) by a vessel for every tonne of cargo carried per nautical mile based on • Total engine power • Fuel type & specific fuel consumption • Cargo carrying capacity • Speed • EVDI – vessels built prior to 01 Jan 2013 /EEDI – vessels built post 01 Jan 2013

RightShip - Rewarding Sustainability Rightship’s A-G GHG Emissions rating • EVDI – Basis for Comparison • Data sources e.g. IHS Fairplay, SVIS, Owners, etc. • Ship types – 75,000+ vessels • Data verification during vetting process • Approximately 7,000 ships in RightShip database verified • www.shippingefficiency.org • A-G GHG Emissions Rating • Relative comparison of peer group • Provides industry framework for comparison • Identify most efficient vessel • Fact: ~15% of world fleet will have EEDI by 2020. EVDI= CO2 emission transport work

RightShip - Rewarding Sustainability Calculating The A-G GHG emissions rating • EVDI / EEDI • Calculate EVDI Log Value • Apply Weights to Log Values • Calculate Z-Score • GHG Emissions Rating 1 2 3 4 5 10% larger in DWT 100,000 DWT Bulker 90,000 DWT Bulker 110,000 DWT Bulker 10% smaller in DWT 4.159 4.334 4.064 4.334 4.334 3.689 4.459 3.994 4.007 3.742 4.401

RightShip - Rewarding Sustainability Let’s Compare

RightShip - Rewarding Sustainability environmental star rating • Holistic Rating • Recognises performance and behavioursabove compliance. • Calculated environmental risk parameters • Vessel performance • Third party environmental factors

Port Incentive Program

RightShip - Rewarding Sustainability Port metro VancouverEco action program

RightShip - Rewarding Sustainability Prince Rupertenvironmental incentive program • GHG Emissions Rating – Environmental Star Rating • Over $72,000 in discounts in first six months alone • Access to rating provided free to ports • First Six Months • Discounts to 83 vessels (127 total calls) • 91 of these calls qualified through RightShip’s A to G

RightShip - Rewarding Sustainability Port incentive program – key benefits • Efficient ships Act Local, Think Global • Reduce overall emissions in the port area • Ultimately reduce emissions for entire voyage • Links between green ships and safer ships • Recognition of sustainability efforts • Prince Rupert / Port Metro media campaign – 6.7 million opportunities to view • Increasing focus on emission reduction

RightShip - Rewarding Sustainability Commercial Benefits

RightShip - Rewarding Sustainability A Voyage . . .

RightShip - Rewarding Sustainability Market moves faster than Regulation Twenty three charterers factor energy efficiency into the Charter selection process • 1.8 billion tons of cargo • 23% of global non-containerized shipments • 21,500 vessel movements annually • Research data • 22,000t CO2saving in 12 months • approx. $4.5M bunker saving Three ship-ownerspublicly endorse energy efficiency Three ports factor energy efficiency into the vetting acceptance process ABN Amro • Complimentary to internal risk management procedures • Factor vessels’ energy efficiency into underwriting process

RightShip - Rewarding Sustainability The Charterers

RightShip - Rewarding Sustainability Survival of greenest

RightShip - Rewarding Sustainability Working towards a cleaner environment • Sustainability is now a Standard Consideration in Shipping • A-G GHG Emission’s Rating • Compares 75,000+ vessels • Common platform for comparison • relative and absolute efficiency • Environmental Star Rating • Performance / behaviors above compliance • Industry Acceptance • Charterers • Banks • Ship-owners • Port Incentive Program

RightShip - Rewarding Sustainability Ports using the “A” to “G” - 6-step roadmap

RightShip - Rewarding Sustainability Our Stakeholders

RightShip - Rewarding Sustainability Our Stakeholders Way Forward . . . http://blog.firstvacationrental.com/8-games-to-play-with-kids-at-the-beach/

¡MuchasGracias! Email: vetting@rightship.com

rewarding Sustainability