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Ingar Skaug, group CEO of Wilh. Wilhelmson ASA, joined the JRD QV 2009 celebrations in Mumbai recently. He spoke about the environmental initiatives undertaken by his company

What is the sustainability vision of Wilh. Wilhelmson (WW)?

Our aim is to reduce the impact of our cargo-carrying operations. Our vision is to improve operations continuously in seeking to achieve zero emissions, and thereby contribute to a cleaner global environment. We have made an effort to ensure our different business areas work together like a cohesive unit on sustainability. This also ensures all innovation initiatives (with respect to projects that have an environmental impact) are managed through one management committee and assimilated into the framework of WW so that everything goes into the learning of the institution. The situation earlier was very different, departments worked independently on different forms of innovation. This is now being done through a single steering committee at the top. The committee also manages the innovation processes that are taking place outside the organisation. 

What led the company to embark upon its journey towards a low-carbon existence?

It started out with a lot of emphasis being placed on environmental issues from the outside world. This generated an internal discussion on corporate values and on our internal code of conduct. We thought that as an organisation we could not afford to ignore the environmental impact of our actions. This led to the formation of the GLTE (global leadership technology exchange) a forum between us and several others. The GLTE was set up to help industrial groups share technology and innovation to enhance both their environmental and business performance. Our ambition with GLTE is to exchange leadership experience and technologies with those who can help us shape the industry. 

Do you have a carbon reduction target?

We aim to reduce our carbon footprint by reducing fuel consumption and we are working with the International Maritime Organisation to develop the new carbon index. We are also working towards an operational design index for developing operationally-efficient vessels for the future. Our goal is to reduce CO2 emissions by 4 per cent this year in comparison with the levels in 2008. 

Could you elaborate on the journey within your company?

We have set up a cross-company development forum where we work together to see how we can change our actions to lower the negative impact on the environment. The need emerged and we saw very clearly what the world will look like and there was no doubt in our minds that we had to act. The only thing that had to be worked out was how we should work together to make a difference and we began interacting with the rest of the industry to find solutions. The openness on our part led engineering and information technology companies to come together and work with us to develop a more climate-friendly product range.

When we started out on our journey it was not a systematic effort; we saw the need, identified the areas where we needed to innovate and devised ways in which we could innovate. These were put together and that is how the journey began. Gradually we organised ourselves into a top management team, set up an inter-industry network, launched an innovation programme that involved the youth and tied up with a business school in Oslo, Norway, to further our research. 

What kind of projects did you undertake as part of this initiative?

There are several, but one that comes to mind instantly is our waste-to-value project that was launched sometime in 2007. It involved setting up a recycling system whereby all garbage and spills are reused on a ship. This process has found a lot of interest among cruise liners and this was developed as part of our youth and innovation initiative.

We are also reducing our fuel consumption by implementing a range of fuel management and check systems for our fleet. We are designing and distributing products that cut down on carbon emissions. The advantage of being a large player is that we play an influential role and even if we are not able to come up with all the products and solutions required, we can create a collaborative framework that helps with the management and distribution of the products. We have also developed ballast water treatment systems in collaboration with BW Gas. The system prevents the transfer of marine organisms from one part of the world to another. Some of our other projects are an energy-management system that helps identify optimum sailing conditions, weather-routing systems to ensure the most efficient routes, fuel efficient vessels and crew management, and training programmes. 

What has been the extent of employee involvement in creating a clean environment?

Employees have been enthusiastic participants right from the start. Once it was clear that there was a need and that the need could be filled in by creating products that were marketable, employees were completely on board. The awareness level within the organisation was already high and the fact that we focused on income generation through developing processes and products that were environment friendly helped. 

What have been the main challenges on this journey?

The biggest challenge, I would say, has been working within the existing system towards a zero-emission target. It will take time because of the complexities involved. We are constantly being forced to relook at our targets given the varying efficiencies of alternate fuel. At a practical level, we have a limited number of times that we can stop to refuel. Therefore we need to work closely with the oil companies and that is a challenge. Another big challenge is developing rules and regulations that are global in nature — this slows down progress and we have to work on ways in which we can speed up things. 

Where does your company feature in the sustainability movement in the shipping industry?

We are a benchmark company. We have been at the forefront of setting up GLTE and are partnering with several firms on environmental projects. For instance, we have an alliance with firms in Norway to come up with a long-term plan for reducing emissions from new vessels. We are also working to reduce the sulphur content in our fuel. Our influence within the maritime industry is huge and as a result we have been able to collaborate on a number of environmental projects. 

Could you describe your association with the Tatas?

We have a partnership with Tata Motors and we are evaluating the carbon footprint of the company supply chain. We have already gathered the data and collated it, now it is time for us to analyse and evaluate. We are looking forward to a long association with the Tatas. 

What is your business arrangement with Yara International?

We have created the Yarwil joint venture which has been set up to launch environmental solutions for the maritime market. This commitment will help reduce emissions in the shipping sector, and improve both the environment and human health. Yarwil is a 50:50 joint venture between Yara and us. Yara had developed a catalytic technology for land transport, largely the trucking community, which reduces the ammonia content in the emissions. Yarwil is working to develop a similar technology for the shipping industry. We are creating a converter for ships that can reduce the nitrogen oxide emissions by nearly 95 per cent. 

Do you have a dedicated fund for green innovation?

Yes, we have a separate budget for environmental innovations and let’s just say that the fund runs into millions of dollars!

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