Presented by Julian Speck at Offshore & Shipping CSR, London (Capital Link Forum), October 27, 2011 Describes a fleet strategy focusing on quality vessels, emphasising energy efficiency and reduced environmental impact to enable asset owners to extract maximum value from CSR (Corporate Social Responsibility) programmes.

1. FutureShip
Julian Speck
Capital Link CSR Forum, London, 27 October 2011
Strategic CSR
- Quality Ships, Cost Savings, Commercial Advantages, CSR Value

2. Commercial advantages from Strategic CSR | 27.10.2011 | No. 2
FutureShip Consulting – Four dedicated practices covering the entire
maritime value chain
• Help clients taking the right strategic decisions
• Services lines comprise fleet and portfolio strategy, business
performance optimization, organization development and
transaction support
• Help clients designing commercially and technically state of the art
vessels, considering its life cycle cost and value
• Fully independent position, free of commercial interest in ship
design and construction itself
• Dedicated pilot in maritime operations offering an integrated and
independent perspective on improvements
• Effective tools and systems based on our deep technical expertise
and state-of-art engineering
• Help clients to comply with all relevant regulations in the vessel/
fleet specific most cost efficient way
• Support positioning towards forthcoming societal and business
demands and regulations a compliance strategy
Strategy
Design
Operations
Compliance
Source: FutureShip

3. Commercial advantages from Strategic CSR | 27.10.2011 | No. 3
Community Support, Management Systems and the Environment, are the
CSR dimensions that most companies care about
Source: PWC Canada
• CSR Reporting trends for 800 listed companies – six most important CSR report dimensions
0% 50% 100%
Health & Safety
Supply Chain
Employees
Community Support
Management Systems
Environment
46% reported
on progress
against goals
Percentage CSR
reports that
publish GHG
emission targets*
Canada
USA
EUR, JPN, AUS
Other
0% 50% 100%
* A mixture of ‘absolute emissions’ targets and ‘emission intensity’ targets

4. Commercial advantages from Strategic CSR | 27.10.2011 | No. 4
Shipping companies name four reasons for addressing social issues
but shipping companies do not explicitly mention CSR on their websites
Source: FutureShip, Press Clippings
“We will make available
the carbon dioxide
emissions per
container to clients”
Shipping company executive
“I believe that shippers will increasingly be drawn
to those ships which attract lower costs for the
supply chain from lower emissions”
Shipping association executive
“Ignore the politics:
carbon is now a
commercial
imperative”
Shipping journalist
“The world will expect the ship-ping
industry to give money to help mitigate
the damage ships cause or to invest in
new answers for the future“
Shipping consultant
“Our reputation”
“A license to operate”
“Sustainability”
“Moral obligation”
*Ethics, Environment, HSQ, Corporate governance etc
Container (9)
Drybulk (17)
Tanker (15)
(Avg.Mkt.Cap.US$million)
Percentage of shipping websites in
Capital Link Indices with
main menu links to social issues*
0% 50% 100%
($345mil)
($245mil)
($451mil)

5. Commercial advantages from Strategic CSR | 27.10.2011 | No. 5
CSR agenda needs to be company-specific, with increasing emphasis on
competitive strategy
Do not materially
impact ship owner’s
competitiveness
Social issues
affected by company’s
business operations
Social issues that
impact the drivers of
long-term competitiveness
CSR agenda: Responsive or reactive
CSR agenda: Strategic or proactive
Increasing strategic importance
Source: FutureShip, Porter&Kramer
General social Direct operational Strategic competitive1 2 3
Examples: Lack of human rights
in developing
countries
Environmental impact
from shipping
operations
Energy efficiency of
existing and future
fleet

6. Commercial advantages from Strategic CSR | 27.10.2011 | No. 6
Environmental improvements in operations driven by compliance with
regulation and customer demands
Vessel value
drivers
Strategic
• Emissions to air
- CO2
- SOx
- NOx
- PM
- Ozone depleting substances
• Emissions to water
- Ballast water
- Bilge water
- Wastewater (sewage,
shower/kitchen, holds)
- Coatings/Anti fouling
• Waste emissions
- Cargo residues
- Oil sludge
• Noise emissions
- Outside/inside
• Ship recycling
- Pollutants/IHM
Significant environmental
dimensions
Market
demand
Already implemented
To be implemented or
tightening expected
Regulation expected
Regulatory
status
Source: FutureShip
Operational

7. Commercial advantages from Strategic CSR | 27.10.2011 | No. 7
Reducing bunker consumption reduces fuel costs and proportionally
reduces CO2 emissions with positive impact on environment
• CO2 emissions can be directly translated into fuel consumption and thus bunker costs
• Reducing fuel consumption improves operating profit and has a positive impact on GHG emissions
Fuel consumption reduction opportunities
Source: FutureShip

8. Commercial advantages from Strategic CSR | 27.10.2011 | No. 8
Strategic: Optimization of 9,000 TEU container ship yielded 17% fuel
savings with a smaller engine compared to yard’s initial design
Lpp: 288 m
Speed: 22,2 kn
Installed Power: 54.180 kW
39.000
-17,5%
Optimised
47.300
Not optimised
Base Line – Not Optimised Post Model – Optimised
Source: FutureShip
Basic data
Optimization results
Tank test verification
Power requirement Annual fuel consumption (tons)
Annual savings
US$ 4.2million1
1 At bunker price of 500 USD/ton, current savings higher
Saving from smaller
main engine
>US$ 2million
CO2 emissions
cut by more than
90 tonnes per day

9. Commercial advantages from Strategic CSR | 27.10.2011 | No. 9
Concluding remarks: Success in CSR involves strategic choices, which
need to be viewed as long-term investments
• General social: CSR is likely to be in the form of corporate philanthropy
- Charitable giving may have limited benefit for the business of a ship owner/operator
• Direct operational: CSR is likely to be compliance driven (regulation or from charterers/supply-chain)
- Markets always ask for safer, greener, smarter vessels but everyone must comply with regulations
• Strategic competitive: CSR for strategic advantage where investments benefit society and business
- For example, energy efficiency, and increasingly long-term investments in optimum ship designs
Current view of CSR for shipping:
CSR must create shared value for business and society
Source: FutureShip

10. Commercial advantages from Strategic CSR | 27.10.2011 | No. 10
Thank you for your kind attention!
For questions please contact
Julian Speck
UK Vice President
GL FutureShip GmbH
Email: jbs@gl-group.com
Mobile: +44(0)777-0964-989
FutureShip