DNV GL 150 years and going strong
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1 DNV GL 150 years and going strong Bjørn K. Haugland Executive Vice President, Chief Sustainability Officer 1 SAFER, SMARTER, GREENER
2 150 years of internationalization 2
3 Unique industry consolidation / Sept
4 Increasing business complexity and greater challenges Political, religious and other conflicts Globalization and complex value chains Climate change and extreme weather Fragile world economy Higher requirements on business preparedness and competence External scrutiny and call for transparency Zero tolerance for failure Pace of technology change Vulnerable IT and cyber scrutiny 4
5 Our core competence identify assess risk manage 5
6 Organized to maximise value for our customers MARITIME OIL & GAS ENERGY BUSINESS ASSURANCE SOFTWARE RESEARCH & INNOVATION 6
7 DNV GL Global delivery capability and strong presence Europe / Africa / Middle East 10,000 staff Americas 3,000 staff Asia / Oceania 4,000 staff 2,500 Mill. EURO (2012) 100 countries 17,000 employees 7
8 Industry focused organization DNV Foundation Mayfair 63.5% 36.5% DNV GL Group Headquarter: Oslo, Norway Group President & CEO: Henrik O. Madsen Software Maritime Oil & Gas Energy Business Assurance Headquartered in Headquartered in Headquartered in Headquartered in Hamburg, Germany Høvik, Norway Arnhem, Netherlands Milan, Italy Global Shared Services 8
9 The Path 9
10 150th Anniversary launch event at Singapore on 28 February DNV GL kicked off its 150th anniversary year for more than 500 customers, employees and stakeholders, together exploring insights and actions necessary to achieve its vision of global impact for a safe and sustainable future.
11 Singapore launch event highlights DNV GL launches reports on six strategic themes DNV GL opens new Asia Pacific headquarters in Singapore Keynote speaker Dr. Pachauri emphasizing the importance of the Safe and Sustainable Future report in Singapore
12 A SAFE AND SUSTAINABLE FUTURE Overview of deliverables, key messages and findings DNV GL s vision for a safe and sustainable future: DNV GL believes it is possible to create a thriving economy where growth is decoupled from environmental destruction and material consumption. We believe it is possible to stay within the limits of the planet while still enjoying a decent quality of life. And we believe it is possible for a society of nine billion people to live well, enjoy universal access to the basics needed to live a healthy, safe and flourishing life. Unique products: Assessment tool to evaluate sustainability impact of our services Technological & Informational IDENTIFIED Economic & Market We have defined 3 overarching pathways and 20 actions in which the transition must be oriented: 36 BARRIERS 1. A green and inclusive economy: Reorienting the economy and the functioning of the markets 2. Good governance and decision-making: Governing for a sustainable future Societal Cognitive & Behavioural 3. Stable and prosperous societies: Building resilience, equity and well-being Policy & Governance 12
13 FROM TECHNOLOGY TO TRANSFORMATION Overview of deliverables, key messages and findings To unlock the transformative potential of technology, we must understand its context. Technology has always been an enabler of societal change and it can play a pivotal role in our transition to a safe and sustainable future. How we can accelerate the deployment and commercialisation of sustainable technologies while ensuring that they are introduced safely into society? Overcoming the barriers to scale. Taking selected technology case studies, we examine examples of physical, regulatory, economic and societal barriers, and provide recommendations for how to overcome them. Taking lessons from history History shows that the technologies that have transformed our shipping, energy, food and health sectors have taken decades to move from invention to scale. We examine the history of transformative technologies in five key sectors: maritime, oil and gas, electricity, food and health. 13
14 THE FUTURE OF SHIPPING Overview of deliverables, key messages and findings DNV GL s vision for the shipping industry in 2050 rests on three ambitions: 1. Reduce fatality rates 90% below present levels. We need a new safety mindset and continuous focus on technological and operational improvements. 2. Reduce fleet CO 2 emissions 60% below present levels. A range of low-carbon fuels and technologies, including LNG, biofuels, batteries, fuel cells and electrification, as well as greater efficiency measures, can enable a fleet-wide CO 2 reduction of 60% by 2050, even taking projected demand growth into account. 3. Maintain or reduce present freight cost levels. The potential for the shipping industry to reduce costs and increase reliability by embracing smarter solutions is vast. New technologies and solutions can enable owners to achieve the first two ambitions without sacrificing cost. Unique products: Virtual demonstrator (online platform) Six technology pathways may enable us to fulfil these ambitions 1. Safe operations 2. Advanced ship design 3. The connected ship 4. Future materials 5. Efficient shipping 6. Low carbon energy
15 ELECTRIFYING THE FUTURE Overview of deliverables, key messages and findings Emerging technologies coupled with robust planning can enable dramatic decarbonisation. Technologies such as offshore wind and smart grid are technically and economically feasible, and can enable a transition away from fossil- and nuclear-based energy systems. We examine the potential contribution of these technologies in two geographies, Europe and Japan. Unique products: Mobile app to visualise functioning smart grid Physical visualisation elements in Hoogkerg Offshore wind video and roadmap New energy scenarios for Europe and Japan GLOBAL ELEC. OUTLOOK 2030 OFFSHORE WIND VISUALISING SMART GRID Japan Europe Europe: Large-scale wind can power a combo of a pan-european supergrid, combined with Norwegian storage capacities. Japan: Japan can reduce its power sector emissions 80% by 2050 but probably not without nuclear or CCS. Our 2050 roadmap demonstrates that floating offshore wind energy can reach commercial scale by 2050 if it harnesses synergies with other industries and demonstrates technical and economic feasibility in increasingly large capacities. The city of Hoogkerk is living the smart grid future. Forty households are participating in the world s first living laboratory of smart grid technologies, fully equipped with smart meters, smart appliances, renewable energy sources, and access to the market to trade electricity.
16 ARCTIC THE NEXT RISK FRONTIER Overview of deliverables, key messages and findings Sound decisions require a common understanding of risk in the Arctic. Industry, government and other stakeholders need to establish a common basis of understanding about the risks associated with Arctic development in order to make sound decisions. Arctic development must employ a step-wise approach. The diversity of Arctic regional conditions requires a differentiated and step-wise approach when deciding on activities. Regions of the arctic should be developed in relation to their concentration of ice. Less challenging environments need to be successfully navigated before the industry can move on to harsher regions. Unique products: Arctic risk map (online platform) 2 concept ships Risk perception survey Arctic risk map Arctic oil spill response Arctic shipping risks July Feb A tool to assess complex operational and environmental impacts in time and space An assessment of the state of oil spill response in the Arctic, including response gaps An assessment of risk to two Arctic shipping routes: cruise and tanker; two Arctic concept ships
17 ADAPTATION TO A CHANGING CLIMATE Overview of deliverables, key messages and findings Mitigation is no longer sufficient. Businesses and communities must adapt. Adaptation will mean not only physical engineering solutions such as the hardening of infrastructure, but also new design criteria, emergency planning, and wider changes to decision making processes to make them more resilient in the face of an uncertain future. A risk-based approach is essential to managing complex climate risks. Robust adaptation requires systems thinking, taking a broader view of climate hazards and adaptation solutions. Business must understand its resilience in the context of its supply chains and the communities in which it operates. Unique products: Adaptation platform (online tool) Climate risk assessment and planning framework Community resilience protocol Unmodified base design 1. Raising the deck 2. Strengthening the jacket Cities and grids. When Superstorm Sandy hit New York in 2012, it caused unprecedented flooding and severe disruptions to the power system. Our simulations of the same storm in a warmer world show that regional storm surge could rise from 4.5 m in 2012 to 7 m in 2050 and 9 m in Offshore infrastructure. Extreme waves are likely to become higher in a changing climate. Maintaining safe operations may require increasing the amount of steel on tanker decks by 5-7%, and raising and strengthening offshore platforms. The Panama Canal. The Canal could suffer from water shortages within decades due to climate change. Our analysis shows that an existing adaptation plan is already moving in the right direction to ensure the Canal s continued operation.
18 NEXT book: Engaging exciting shapers and thought leaders into DNV GL network Jeremy Bentham Alec Loorz Bawa Jain Ajay Banga Rajendra Pachauri L. Hunter Lovins Robert Engelman Rob Cameron Eva Joly Nathan Eagle Pavan Sukhdev Peter Bakker Jessica Cheam John Fullerton Per Heggenes Grace Mwaura Dr. Kim Tan John Ashton Bright Simons Marina Grossi Jeanne Ng Jørgen Randers Jo Confino Sarah Collins Tristram Stuart Ana Marques Fengshu Liu Achim Steiner Kevin Noone Georg Kell
19 Safeguarding life, property and the environment SAFER, SMARTER, GREENER 19
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