Arctic Business Leadership through Sustainable Development Goals

for the Arctic Business Community

Paul Holthus, CEO

World Ocean Councilpaul.holthus@oceancouncil.org

www.oceancouncil.org

Growing Multiple-use of the Arctic

• Shipping

• Oil and gas

• Fisheries

• Aquaculture

• Tourism

• Mining

• Dredging

• Port development

• Submarine cables

• Etc.

World Ocean CouncilInternational, Cross-Sectoral Business Leadership Alliance

• Bringing ocean industries together, e.g. shipping, oil/gas, fisheries, aquaculture, tourism, offshore renewables, etc.

• Catalyzing private sector leadership and collaboration in “Corporate Ocean Responsibility”

• 70+ members worldwide; 34,000+ in global network

Goal: Healthy, productive ocean and its sustainable use and stewardship by responsible ocean business community

Creating business value for responsible companies• Access and social license for responsible ocean use• Synergies and economies of scale in addressing issues• Stability and predictability in ocean operations

WOC: Connecting CompaniesA.P. Moller-Maersk A/S Heidmar, Inc. Oldendorff Shipping GmbH & Co. KG

Agawa Partners Helix Media OLRAC SPS

Almi Tankers S.A. Hepburn BioCare Orange Marine

Arctia Shipping Holman Fenwick Willan LLP Planet OS (formerly Marinexplore)

ANCORS HR Wallingford Principle Power

Aquarium de Paris - Cinéaqua IHC Mining Qikiqtaaluk Corporation

Baird Publications Inmarsat Resolute Marine Energy

BHM Penlaw Int’l Ass’n of Geophysical Contractors (IAGC) RightShip

Blank Rome Int’l Chamber of Shipping (ICS) Royal Greenland A/S

Cape Breton University JASCO Applied Sciences Sanford Limited

CESI- Engineering & Environment Division L3 MariPro Scottish Marine Institute (SAMS)

China Navigation Company/Swire Pacific Offshore Liquid Robotics Southall Environmental Associates (SEA)

Class NK Lloyd’s Register Stena Bulk AB

Cruise Lines International Association (CLIA) Louisbourg Seafoods SubCtech GmbH

CSA Ocean Sciences Inc. Marine Acoustics, Inc. Sunburst Sensors

DHI Marine Assets Corporation Tai Chong Cheang (TCC) Steamship Co. HK

exactEarth Maritime Executive Technip

ESRI Memorial University – Marine Institute Thordon Bearings Inc.

FCG ANZDEC Mitsubishi Heavy Industries TierraMar Consulting

FOB Nautical Institute Twin Dolphins

Global Ocean Consulting, LLC Nautilus Minerals, Inc. University of Texas Marine Science Inst

Gulf Agency Company Ltd (GAC) N America Marine Envi’t Protection Ass’n Vieira de Almeida & Associates (VdA)

Heerema Marine Contractors Nederland SE Ocean Nourishment Windward Ltd.

Woodside Energy

WOC Partnerships and Formal Recognition

• UNESCO Intergovernmental Oceanographic Commission (IOC) – MOU

• International Seabed Authority (ISA) – Accredited Observer

• Convention on Biological Diversity (CBD) – Accredited to attend SBSTTAs and COPs

• International Whaling Commission (IWC) – Accredited Observer

• UN Framework Convention on Climate Change (UNFCC) – Accredited to attend COPs

• International Standards Organization (ISO) – Underwater acoustics Sub-Committee

• Global Business Alliance for Sustainable Dev’t of Int’l Chamber of Commerce (ICC) – Member

• Group on Earth Observations (GEO) – Accredited Partner

• International Hydrographic Organization (IHO) – Official Observer

• Ocean Climate Platform – Accredited Partner

W.OC Framework for Business Leadership Sustainable Development Goals (SDGs)

Coordinated, proactive business community efforts to develop ocean industry SDG targets and indicators

Ocean Investment PlatformA system and forum for linking ocean industries, innovators and investors to accelerate investment in ocean sustainable development

Young Ocean Professionals NetworkA global initiative to support the future of the responsible ocean business community and sustainable seas

Sustainable Ocean Summit (SOS)The only annual global, multi-industry gathering developed by and for the business community, focused on sustainable development

Regional Ocean Industry Leadership and Collaboration

Arctic, Mediterranean, W. Indian Ocean, etc.

• Bring together leadership companies for cross-sectoral leadership on responsible Arctic development from range of coastal / marine industries

• Build industry network and interaction with other key Arctic stakeholders, including Arctic Council and its groups, e.g. AEC, CAFF, PAME, SDWG, AEC

• Foster and ensure business input in Arctic events and discussions that could benefit from industry involvement

• Address priority sustainability and science issues that would benefit from business collaboration

WOC Arctic Program initial priorities

• Arctic SDGs

• Circumpolar, cross-sectoral best practices for sustainable development

• Bering Strait/Sea maritime traffic scenarios

• Arctic data collection and sharing in the Arctic

WOC Arctic Business Leadership Development

• Arctic Business Leadership Council workshop, Reykjavik, 2012

• Business Dialogue with Arctic Council Sust. Dev’t Wking Group Reykjavik, 2012

• WOC Sustainable Ocean Summit 2013: Arctic Session, Washington DC, 2013

• Business Cooperation session at Arctic Circle 2013, Reykjavik, 2013

• Arctic Shipping Forum: Roundtable on data collection, Helsinki, 2014; St Johns, 2015

• Industry input to Arctic Circle 2014, Reykjavik, 2014

• Business Collaboration session at Arctic Circle 2015, Reykjavik, 2015

• Arctic Business Council Summit, Oslo, 2015

• WOC Sustainable Ocean Summit 2015: Arctic Session, Singapore , 2015

• Arctic Observing Summit, WOC Co-chair, Private sector theme, Fairbanks, 2016

• Arctic Business Council Summit, Tromso, 2017

World Ocean Council Arctic Efforts

WOC Program and Theme Areas

• Marine Pollution Reduction

- Plastics/Port Reception Facilities

- Biofouling/invasive species, Marine sound

• Ocean Governance, Policy and Planning

- UNCLOS/BBNJ, UNFCCC, SDGs, Convention on Biological Diversity …

- Marine Spatial Planning, Ocean zoning

• Climate Change

- Ocean acidification

• Marine Biodiversity Conservation

- Marine protected areas

WOC Program and Theme Areas (cont.)• Food Security

- Sustainable aquaculture (infrastructure need)

- - Sustainable fisheries/reduced IUU fishing

• Disaster Risk Reduction

- Port/coastal infrastructure adaptation and resilience (infrastructure need)

• Energy Decarbonization

- Ocean renewable energy (infrastructure need)

• Improving Ocean Knowledge

- Smart Ocean / Smart Industries: (infrastructure need)

Data from Industry Vessels/Platforms of Opportunity

Industry Leadership in Arctic Knowledge

Need and opportunity for an international, multi-industry system to:

• Foster, facilitate and broker interaction between scientists needing data and companies with vessels and platforms that could collect data

• Improve the coordination and efficiency of data sharing and input to national/international systems

• Create business drivers for innovation and a significant market for data collection technology

• Build on existing “ships/platforms of opportunity” programs, e.g. SOOP, Ferry Box, etc.

• Partner with and support the programs needing data, e.g. GOOS, GO-AON, OBIS, SAON, etc.

Opportunities of Ships

50,054 ships (Oct 2010)

• Tankers: 13,175• Bulk Carriers: 8,687• Container ships: 4,831• Passenger ships: 6,597

Other Ship and Platform Opportunities

Wave/tidal energyOffshore wind energy

AquacultureOil and gas

Tourism

Fisheries

International Ship/Platform Data Collection

Comprehensive• Incorporates needs and opportunities from different industries• Addresses ocean, weather and climate data needs

Scaleable • Within industries• Across industries• Upgradeable over time

Entry Options • Retrofit – existing vessels and platforms• New builds

Cost-Efficient• Synergies – within and between industries• Economies of scale

Smart Ocean-Smart Industries: How it worksWOC…

• Engages scientific institutions/organizations to identify:o Priority data collection needs and areaso Appropriate, cost-effective, ship-suitable technologys

• Identifies and recruits companies:o With vessels/platforms operating in the priority areaso Interested/capable of hosting instruments

• Instigates and facilitates working relationship between the company and the scientific institution

• Monitors, coordinates and supports interaction between company and scientific institution

• Ensures industry data collection efforts are efficient, cost effective and contribute to national and international public science programs

Smart Ocean-Smart Industries: Next Steps

• Continue to develop pilot projects to put “Smart Industries” to work • Country or company level focus, e.g. fleet level• Regional, e.g. Arctic• Parameters, e.g. ocean acidity, bathymetry• Extreme weather or ocean events, e.g. tsunamis

• Define value proposition / rationale for industry and science• Inventory existing ships / platforms of opportunity programs• Define the “menu of options” for voluntary observations• Define interface requirements for platforms / payload• Develop the principles, practice and platform for industry data sharing and

access

The Sustainable Development Goals (SDGs)

The Sustainable Development Goals (SDGs)World Ocean Council

The Sustainable Development Goals (SDGs) 1-81 End Poverty End poverty in all of its forms everywhere

2 Achieve Food SecurityEnd hunger, achieve food security and improved nutrition, and promote sustainable agriculture

3 Ensure Healthy Lives Ensure healthy lives and promote well-being for all at all ages

4 Ensure Acces to EducationEnsure inclusive and quality education for all and promote lifelong learning

5 Achieve Gender EqualityAchieve gender equality and empower all women and girlsof water and sanitation for all

6 Ensure Water and Sanitation for AllEnsure availability and sustainable management of water and sanitation for all

7 Ensure Access to EnergyEnsure access to affordable, reliable, sustainable, and modern energy for all

8 Promote Sustainable Economic GrowthPromote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

18

The Sustainable Development Goals (SDGs) 9-179 Build Resilient Infrastructure

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

10 Reduce Inequality Among Countries Reduce inequality within and among countries

11 Make Cities SustainableMake cities and human settlements inclusive, safe, resilient and sustainable

12Ensure Sustainable Consumption and Production

Ensure sustainable consumption and production patterns

13 Combat Climate Change Take urgent action to combat climate change and its impacts

14Conserve and Sustainably Use the Ocean

Conserve and sustainably use the oceans, seas and marine resources for sustainable development

15 Protect Terrestrial EcosystemsProtect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

16 Promote Peaceful SocietiesPromote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

17 Strengthen Means of ImplementationStrengthen the means of implementation and revitalize the global partnership for sustainable development

What do the SDGs and the Ocean SDG (SDG 14) mean for the Arctic business community ?

• For the Arctic business community as a whole ? – Especially the broad, cross-cutting Ocean SDG targets:

Reducing pollution, avoiding ecosystem impacts, increasing protected areas ?

• How can Arctic industries provide leadership and collaboration to ensure the DGs for the ocean…– …are practical and implementable ?

– …support responsible economic activity ?

– …advance development that can be sustained ?

How can governments, industry and other ocean stakeholders best collaborate on Arctic sustainable development ?

SDGs and the Arctic Business Community

Incorporating the SDGs into business strategy can create benefits such as:

• Identifying business opportunities created by sustainable development challenges, e.g. reduction of emissions, waste, stimulating product/process innovation

• Advancing the implementation of corporate sustainability, e.g. increasing sales, developing new market segments, improving efficiency

• Ensuring employee recruiting and morale, enhancing company reputation, brand and trust with government, consumers, stakeholders

• Strengthening license to operate, reducing legal/reputational risks, building resilience to future regulatory costs or requirements

• Stabilizing the societies and markets upon which business depends

The Business case for the SDGs

• Prevent and significantly reduce marine pollution of all kinds – by 2025

• Sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts – by 2020

• Conserve at least 10% of coastal and marine areas – by 2020

• Minimize and address the impacts of ocean acidification

Specific Targets of SDG 14 – “The Ocean SDG”

• Restore fish stocks by regulating harvesting, ending overfishing, illegal, unreported and unregulated (IUU) fishing and destructive fishing, and implementing science-based management – by 2020

• Prohibit certain fisheries subsidies which contribute to overcapacity and overfishing, eliminate subsidies that contribute to IUU fishing, and refrain from introducing new such subsidies – by 2020

• Increase the economic benefits to small island developing states and least developed countries from the sustainable use of marine resources – by 2030

Specific Targets of the Ocean SDG - continued

Specific Targets of SDG 14 – “The Ocean SDG”

What do the SDGs and the Ocean SDG(14) mean for the ocean business community ?• For the ocean business community as a whole ?

o Especially the broad, cross-cutting Ocean SDG goals: reducing pollution, avoiding ecosystem impacts, increasing protected areas ?

• How can ocean industries provide leadership and collaboration to ensure the SDGs for the ocean…o …are practical and implementable ?o …support responsible economic activity ?o …advance development that can be sustained ?

How can governments, industry and other ocean stakeholders best collaborate on ocean sustainable development ?

SDGs and Ocean Industry

Incorporating the SDGs into business strategy can create benefits such as:

• Identifying business opportunities created by sustainable development challenges, e.g. reduction of emissions, waste, stimulating product/process innovation

• Enhancing the value of corporate sustainability, e.g. increasing sales, developing new market segments, improving efficiency

• Ensuring employee recruiting and morale, enhancing company reputation, brand and trust with government, consumers, stakeholders

• Strengthening license to operate, reducing legal/reputational risks, building resilience to future regulatory costs or requirements

• Stabilizing the societies and markets upon which business depends

The Business case for the SDGs

WOC Ocean and Arctic SDGs Initiative2015• Inform ocean business community about SDGs (ongoing)• Analyze SDGs re ocean industries (report completed)

2016• Develop draft targets and indicators with/for ocean business community (initiated)• Engage/consult other stakeholders for input (initiated)• Ocean SDG Targets for Business

- WOC Sustainable Ocean Summit, Rotterdam, 30 Nov-2 Dec • Arctic SDG Targets for Business (proposed)

2017• Develop draft targets and indicators with/for ocean business community (underway)• Engage/consult other stakeholders for input (underway)• Ocean SDG Targets for Business

- WOC Sustainable Ocean Summit, Halifax, 29 Nov-1 Dec • Arctic SDG Targets for Business (initiated)

Business Community Steps to addressing the SDGs:

1. Understanding the SDGs

2. Defining Priorities

3. Setting Goals

4. Integrating Sustainability

5. Reporting and Communicating

- SDG Compass – GRI, UN Global Compact, WBCSD

Incorporating SDGs into Business Operations

• Define priorities to address most important business opportunities presented by SDGs and reduce risks

– Consider the magnitude, i.e. which contributes most to SDGs

• Assess current/potential positive and negative impact of these opportunities on SDGs across value chain

– Assess possibility to grow/gain advantage from improving positive or reducing negative impacts, e.g. opportunities to innovate, develop new products/solutions, target new markets

• Identify positive impacts to be scaled up and negative impacts to be reduced or avoided

– Consider whether/which negative impacts are risks, e.g. due to new regulation, market shortages, supply chain disruptions, stakeholder pressure, changing market dynamics

• Select indicators to measure effect of activities over time

SDG Steps for Business: 2) Defining Priorities

• Set company sustainability goals based on priorities identified in step 2

• Provide specificity and timeline

• Select Key Performance Indicators (KPIs) that allow goals to be measured

• Link to commonly used indicators to allow for recognition and comparison with other companies

• Define absolute goals (that take only the KPI into account or relative goals (that compare KPI to a unit of output)

• Publicly announce SDG commitments

SDG Steps for Business: 3) Setting Goals

Analytical Framework:

UN SDG Goals

UN SDG Subtargets

Industry Targets

(Applicable to the Arctic Business Community)

Arctic Industry Targets

(Proposed by WOC Community)

Arctic Industry Indicators (Proposed by WOC Community)

Examples: Real commitments by companies

WOC is analyzing the SDGs and developing Arctic Industry Targets and Indicators

SDGs and Arctic Business: Getting to Work

• SDG 14: Conserve and sustainably use the oceans

• Sub-Target 14.a: Increase scientific knowledge

• Industry Target:

Collect and share ocean data from industry ships, platforms and infrastructure

• Indicator:

Instruments installed or deployed; data collected and provided to science community

• Real Example:

Maersk installs tsunami detection instruments on N. Pacific 6 ships; data transmitted (ongoing)

• Potential Example:

SDGs and Ocean Business: Example 1

• SDG 14: Conserve and sustainably use the oceans

• Sub-Target 14.2: Sustainably manage and protect marine and coastal ecosystems

• Industry Target:

Undertake/support habitat restoration efforts

• Indicator:

Habitats protected or restored

• Example:

Yemen LNG coastal plant relocates and protects coral reefs on the Gulf of Adan (Arabian Sea) - now manages them as a ‘marine exclusion zone’

SDGs and Ocean Business: Example 2

• SDG 2: End hunger, achieve food security

• Sub-Target 2.4: Ensure sustainable food production

• Industry Target:

Undertake/support sustainable seafood production

• Indicator:

Volume of sustainable seafood produced or purchased

• Example:

Sanford achieves MSC (Marine Stewardship Council) certification, and implements MSC management System – including the “Chain of Custody Standard”

SDGs and Ocean Business: Example 3

• Continue analysis of SDGs and Arctic industries:o Address all SDGso Add more real/potential examples of implementation

• Engage Arctic business partners for collaboration and input:o Arctic Economic Councilo Industry associations (e.g. ICS, IAGC, IOGP, IADC)o Industry environment/sustainability organizations (e.g. IPIECA, MSC, ASC, SSI)

• Expand interaction with overall business and SDG efforts (e.g. ICC, Commission on Business and SD, Global Compact, GRI, etc.)

• Provide leadership, information and guidance for Arctic business community to achieve SDG implementation by (e.g., tools and reporting framework)

WOC Next Steps – SDGs and Arctic Industries

Areas for Discussion

The Arctic Economic Council and the overall Arctic Business Community

The Arctic Business Community and the SDGs

Developing SDG Targets and Indicators with and for the Arctic Business Community

Questions for Discussion 1

The Arctic Economic Council and the overall Arctic Business Community:

1. What is the best way to engage the broader Arctic Business Community in the efforts of the AEC? And vice versa?

2. What is the best way to identify the full range and scope of Arctic Business Community companies?

3. Should there be a distinction between how Is there a difference between local, national or multi-national companies get involved?

4. Should there be a distinction between how the land based and maritime industries should be organized and get involved?

Questions for Discussion 2

The Arctic Business Community and the SDGs

1. What role could/should the AEC play regarding the SDGs?

2. Is there value in analyzing the SDGs in relation to pan-Arctic economic activity and the Arctic Business Community?

3. Which SDGs are most important and relevant to Arctic economic activity and the Arctic Business Community?

4. How would SDG efforts regarding pan-Arctic economic activity and the Arctic Business Community relate to national SDG efforts by Arctic nations?

Questions for Discussion 3

Developing SDG Targets and Indicators with and for the Arctic Business Community

• How can we best develop SDG Targets and Indicators for the Arctic Business Community?

• Should this cover all SDGs or only those most directly relevant to the region?

• How to best engage the overall Arctic Business Community in this?

• What kind of reporting should be expected of companies?

WOC 5th Sustainable Ocean Summit (SOS) 29 Nov-1 Dec 2017, Halifax, Canada

Paul Holthus, CEO

World Ocean Council

paul.holthus@oceancouncil.orgOceancouncil.org

Thank you