The internationally renowned chemicals and materials outfit headquartered in Paris continues to set the standard in the industry. The firm focuses on the design and construction of a number of innovative chemicals and technologies that have visibly and markedly enhanced the world around us. Arkema has added substantial weight to many markets and can be felt across different industries and supply chains. The company’s research facilities and incubators have been hailed by many in the industry.
Author: Charlotte Gill
Shell and Total suspend West African offshore oil projects
Despite many predicting last year’s 40 percent fall in oil prices had come to an end, with prices now set to rise, the steep decline is still impacting the operations of oil drillers. The latest to cut back capital costs are Shell and the French oil firm Total, both of whom have suspended drilling operations off the coast of West Africa.
Shell said the low price of oil would not deter its commitment to the project
Shell has delayed its decision on whether or not to invest in an oil drilling operation off the coast of Nigeria, which the Financial Times reports would require $12bn in spending. Shell hopes to negotiate costs with the soon-to-be formed Nigerian government of recently elected Muhammadu Buhari. The decision to postpone the deal comes only a few months after Shell said the low price of oil would not deter its commitment to the project.
Total has decided to hold off on final investments in an offshore satellite in Angola’s coastal Pazflor oil field. The company wants to renegotiate its contract owing to capital spending costs it feels are too high compared to the size of the predicted reserves of the Angolan field.
Despite such setbacks, Africa’s western coast is increasingly being seen as a valuable site for offshore oil drilling. Large fields off the coasts of Ghana and the Ivory Coast have of late caused a dispute between the two nations over rights to the oil. A recent ruling by the International Tribunal for the Law of the Sea allowed Ghana to continue developing its current oil fields, including the Ten Fields project, which is partly owned by British firm Tullow Oil, and reportedly has the potential to produce up to 80,000 barrels a day.
Climate change could cause coffee apocalypse
It’s hard to believe the fuel on which working people depend is nearing extinction, but without swift action on climate change, the early morning mug of coffee could
soon be lost.
Research conducted by scientists at the Kew Royal Botanic Gardens (RBG) in 2012 suggested all but 0.3 percent of the Coffea arabica plants in the world (the crop on which we rely for 70 percent of the global coffee supply) could die out by 2080. Unsettling many a coffee lover, the researchers found the crop is highly susceptible to climate change.
The studies showed arabica is a highly sensitive species. In a best-case scenario, unchecked climate change could reduce the species by 65 percent. “This means that, if we do not roll up our sleeves and push the breeding efforts to create more drought/high temperature resistant varieties now, we (well, our children and grandchildren) may have to get used to drinking robusta coffee”, says Leo Lombardini, Deputy Director of World Coffee Research (WCR).
99.7%
Potential drop in number of Coffea arabica plants, 2012-80
70%
Of coffee comes from Coffea arabica
60%
Of Uganda’s annual export revenues are from coffee
For those of us who like to obsess over ‘proper coffee’, arabica is the crop responsible for near enough every decent cup of coffee in the developed world. A refusal to protect the species could leave consumers with no option but to make do with a more bitter-tasting beverage. With demand for the expensive stuff soaring and key developing nations, particularly China, beginning to show an interest, the realisation could not have come at a worse time.
More important is the impact this might have on millions of coffee-reliant individuals. “Coffee plays an important role in supporting livelihoods and generating income, and has become part of our modern society and culture. The extinction of arabica coffee is a startling and worrying prospect”, said Aaron Davis, Senior Research Leader of Plant resources at RBG, who went on to add that the purpose of the report was not to provide “scaremonger predictions”, but to establish a baseline on which we can build.
What happens without it?
In Uganda, coffee is still a major cash crop and a core pillar of the predominantly low-income economy, accounting for between 20 and 30 percent of the country’s total foreign exchange earnings. One in five inhabitants owe all or a large part of their earnings to coffee and, given it makes up 60 percent of annual export revenues, without it, millions of Ugandans would struggle to make a living.
It’s on the ‘Mountains of the Moon’, along the country’s border with the Democratic Republic of the Congo, that the lion’s share of arabica coffee is grown, though climate change mapping by Oxfam shows suitable conditions are becoming increasingly hard to come by. At present, arabica growth is only possible at altitudes above 1,400m, but, if global temperatures continue to increase at the current rate, that threshold will rise, putting the coffee plant in direct competition with important crops and protected areas. What’s more, with dry spells lasting longer and the rainy seasons becoming more difficult to predict, without a sustainable solution the losses are likely to extend into the hundreds of millions of US dollars and plunge thousands of farmers into poverty.
With the realisation slowly setting in that the crop is under threat, those with a stake in the coffee trade are looking to prolong arabica’s lifespan, specifically by storing the plants in seed banks and living collections or by looking at ways of boosting sustainability. “The coffee industry must protect its supply. Nobody is going to do it for them”, says Timothy Schilling, Executive Director of WCR at the Borlaug Institute, Texas A&M University. “I think that’s what many companies are realising more and more. They can’t do it alone and they need to come together in a unified way to tackle such a huge problem.”
The 2014 report A Bitter Cup: Climate Change Profile of Global Production of Arabica and Robusta Coffee adds salt to the wound by claiming climate change will reduce the global land space suitable for coffee by about 50 percent. Exasperated by the long lead time of solutions and a slow uptake in addressing the issue, the 100-million-plus people who depend on coffee for their livelihoods worldwide are nearing crisis point. According to the Coffee Barometer 2014 report, the commodity is under threat because the biggest producers are also the areas most susceptible to climate change, which raises the question of how those in the coffee business can arrest the slide.
“We haven’t seen yet companies or governments deliberately investing in protecting the coffee sector against climate change”, says Anthony Wolimba, Coordinator of the Climate Action Network Uganda, hosted by Oxfam. “Only a few donors like the [United States Agency for International Development] have recently made an effort to support policy issues and a few initiatives in improving resilience against climate change. Largely, it is the small-scale farmers who are left with the risk. Businesses are in for a profit.”
Carbon neutral coffee
Following a stint of unseasonal rains and less than favourable conditions in Brazil, coffee traded at a record high of $2.1110 a pound in August, 80 percent higher than at the beginning of 2014. Yet the responsibility for preserving the plant does not lie solely with farmers, and all parts of the supply chain have a role to play.
“The world market share of sustainable coffee that adheres to social, environmental and economic standards has grown rapidly in recent years”, according to the Coffee Barometer 2014. “Coffee companies, traders and roasters are making significant investments in coffee farming through partnerships with public and private institutions in many countries.”
The primary focus for both retailers and consumer organisations at the present is carbon neutral coffee and minimising the environmental impact of each stage in the supply chain. True, skirting more sustainable means of production can sometimes bring savings in the short term, but key names are beginning to acknowledge the importance of protecting the industry’s interests in the long term.
Starbucks, for example, last year bought a 600-acre coffee farm in Costa Rica to more closely monitor the issues facing arabica and perhaps find a solution. According to the company, climate change is a “big priority”, and, by choosing to shrink its environmental footprint, Starbucks is spearheading progressive climate change policy on the frontline.
“However, we are still at the early stages of understanding the full implications of climate change on coffee production, and exactly what can be done in terms of adaptation and resilience”, says RBG’s Davis. “As of yet there are no clear priorities, as the coffee growing landscape is vast and complicated. At the present time large sectors of the coffee industry are not in the position where they can make good decisions in order to ensure sustainability. In the short term, at least, many in the business wouldn’t view climate change as their main concern.”
Schilling says not enough is being done to protect coffee against climate change, “given the importance of coffee as one of the world’s most valuable commodities, where over 125 million people in tropical countries depend on it for their livelihood… Having said that, over the last five to six years, the industry has started to recognise the importance of climate change on coffee and you can see some industry initiatives starting up to address issues related to climate change, like our own WCR”.
Should the issue of climate change be ignored, however, not only will millions of people struggle to survive, but businesses across the globe will be without the resources to serve their customers as they see fit. Granted, the impact of climate change on coffee is still little understood, but what’s clear is all parties must unite to find workable solutions and, crucially, bring millions of individuals away from the poverty trap.
China plugs $5.5bn into Africa’s railways
China’s growing influence in Africa has continued with the news that one of its state-owned rail companies, China Railway Construction Corp (CRCC), will build infrastructure in both Nigeria and Zimbabwe. The deals – amounting to $5.5bn – are the latest in a series of substantial investments made by Chinese companies in the region, which forms part of a strategy to help create a new trade route back to China.
While Chinese investment in the region has helped develop many of these economies, some African countries have begun to complain about the relationship
The deals will see a $3.5bn intercity rail link built in Nigeria, which will help fuel the significant economic growth seen in the country over the last few years. CRCC will also invest $1.9bn into a real estate project in Zimbabwe, which will include a number of transport improvements. Last year, CRCC signed a $12bn contract for another rail line in Nigeria.
China has seen Africa as a key trading region for a number of years. It has invested huge amounts into a number of Africa countries as a means of gaining access to precious resources that aren’t available domestically. Sudan, South Africa, Nigeria, Angola and Egypt have formed the backbone of its investment strategy. Energy sources, in particular oil, have been China’s main focus, but it has also felt that developing African economies will spur trade between the two regions.
China is also Africa’s largest trading partner, with $198.5bn worth of business taking place in 2012, dwarfing the $99.8bn between the US and Africa. At the same time, China has poured money into aid efforts in the continent. According to the Brookings Institute, CNY 256.29bn ($38.45bn) – 45.7 percent of China’s foreign aid – was directed to African countries by the end of 2009.
While Chinese investment in the region has helped develop many of these economies, some African countries have begun to complain about the relationship. Concerns over labour practices used by Chinese firms, as well as poor adherence to safety and environmental standards, have led some countries to look elsewhere for investment.
The importance of trade with Africa for China’s economy is clear: 80 percent of the country’s $93.2bn worth of imports in 2011 came from the continent. However, while China is playing a leading role in the development of the African economy, other countries are also looking to invest in the region: India’s trade with Africa nations is expected to reach $100bn by the end of this year, while Brazil and Turkey have also been signing a number of deals.
EU boots up European digital integration
Despite a rise in euro-scepticism, and a financial crisis on its southern shores, the EU is still committed to achieving integration in new areas. It is set to release its strategy for Europe-wide digital integration on May 6.
Whereas the United States is fully digitally integrated, “only seven percent of EU small and medium sized enterprises… sell online across national borders”, according to a Dods Information report. Likewise, whereas US online digital services account for 57 percent of the global market, EU cross-border digital services account for a mere four percent. Access to the latest internet technologies is also comparatively low, with only 25 percent of European Union citizens having access to 4G technology, compared to 90 percent in the US.
The creation of a European digital single market could result in growth worth €340bn
The EU feels this lag can be addressed by further integration through the development of a European digital single market. “The strategy is going to address several issues that constitute hurdles to a fully integrated European digital market, such as varying broadband connections, diverging data protection rules, geo-blocking and different VAT systems”, reports The Parliament Magazine.
Geo-blocking is the restriction of access to certain websites based on the visitor’s location. According to Andrus Ansip, one of the commissioners drafting the strategy, the “logic of geo-blocking cannot override that of the single market: they cannot co-exist”. In order to boost e-commerce across EU borders, the strategy will also look at how to simplify VAT codes. The plan will also, according to Dods Information, “review current telecoms and media legislation in order to ‘encourage investment in infrastructure’, strengthen trust in online services and data protection, and enable the quick removal of illegal content”. The commission also aims to encourage businesses to make full use of big data and cloud technology.
The European Union estimates these efforts could result in growth worth €340bn and save European consumers a total of €11.7bn. The full details of how this will be achieved will be published by the EU on May 6.
Energy mergers are on the up
The uncertainty surrounding the global energy markets is having an effect on the profits of energy providers. With the plummeting price of oil and the renewed confidence in clean energy, many traditional energy providers are being forced to rethink their strategies for the coming years.
Alongside these shifts are the major geopolitical issues that are giving many major energy suppliers cause to look at their long-term strategies. With Russian oil and gas firms suffering from Western-imposed sanctions as a result of the country’s meddling in neighbouring Ukraine, their traditional customers are starting to look at alternative sources of energy. At the same time, OPEC countries – led by Saudi Arabia – are maintaining high production of oil in an effort to ward off any potential surge in influence of US oil and gas suppliers that have sprung up thanks to shale drilling.
With major global energy companies looking at how best to address these factors, some people are arguing 2015 could be the year utility companies start to join forces on a scale not seen for more than a decade.
$6.8BN
Value of Exelon-Pepco deal
$4.3BN
Value of NextEra-Hawaiian Electric deal
Dawn of the supermajors
Towards the end of the last century, one of the largest mergers in corporate history was announced, when Exxon joined forces with Mobil in 1999 to create the largest oil company in the world. The deal followed the biggest consolidation in the industry for many decades; largely the result of a dramatic fall in the price of oil. The same year, French giant Total merged with Belgian firm Petrofina. The previous year, BP had merged with Amoco (an offshoot of John D Rockefeller’s Standard Oil) in a deal valuing the new company at $110bn.
After the ExxonMobil deal, many of the remaining so-called ‘supermajors’ that dominated production looked like they would follow suit and buy up other companies in order to stay competitive: Chevron acquired Texaco in 2001, while both BP and Total SA bought firms to consolidate their positions. These mergers didn’t just reshape the energy markets: they rearranged the list of the world’s largest companies.
Consolidation 2015
As the price of oil has collapsed over the last six months – thanks in large part to Saudi Arabia’s insistence on sustaining its high levels of production – major energy companies have had to take a long look at where their futures lie. Many observers are speculating the result of a falling oil price and an increase in the efficiency of renewable energies such as solar power could result in a dramatic reshaping of the energy markets.
While it seems unlikely there will be any mergers on the scale seen at the end of the last century, a number of firms are looking at tie-ups that will give them increased sway in the marketplace. Last year, it was announced Exelon Corporation, the US electric, gas and nuclear firm, would be acquiring electricity service company Pepco Holdings for around $6.8bn. The deal, however, has faced considerable opposition from shareholders of both firms, as well as regulators concerned by the lack of competition in the domestic electricity market.
Another deal set to shake up the US energy market is the proposed merger of two renewable firms: NextEra Energy and Hawaiian Electric Industries. The deal, announced at the end of last year and valued at around $4.3bn, will see the two companies combine their renewable energy operations into a firm that can lead the industry. It is undoubtedly an attractive proposition for both firms, who will benefit from each other’s skill sets and added leverage in the market.
According to Jim Robo, CEO of NextEra Energy, the deal to join forces with Hawaiian Electric Industries will help create a more affordable clean energy service for consumers. He said: “This announcement marks an important milestone for both our companies as we seek to leverage our respective strengths, commitments to our customers and the communities we serve, and the mutual goal of building a cleaner energy future. We are proud that Hawaiian Electric has agreed to join our company in large part because of our shared vision to bring cleaner, renewable energy to Hawaii, while at the same time helping to reduce energy costs for Hawaiian Electric’s customers.”
Robo added: “You can think about Hawaii as a postcard from the future of what’s going to happen in the electric industry in the United States. As renewable generation becomes cheaper, and as electric storage becomes more efficient and possible, all electric utilities are going to have to face this.”
According to reports in the Financial Times, China could be about to merge two of its state-owned oil companies into a vast oil supermajor it hopes will compete on the global stage. The two firms (CNPC, the parent company of PetroChina, and Sinopec) would create a unified business that would dominate China’s on-field oil operations, as well as its refineries, pipeline network and gas stations. Observers believe that, if China is to play a major role in the international energy markets, these two firms will need to merge. Xiamen University’s Lin Boquiang, an expert in the energy markets, told the Financial Times: “It all depends on strategy. If the future direction is international then it is better to merge, but if the primary market is still domestic then it is better to stay separate.”
However, the two firms were originally split off from the Ministry of Petroleum in order to create competition in China’s oil markets. While that may have served a purpose as China invested domestically over the last decade or so, the new outward-looking strategy will require consolidation. According to the Financial Times, the country’s two nuclear power market leaders (CNNC and China General Nuclear) are reportedly to meet a similar fate.
Pick and choose
While some firms have been consolidating, others have sought to divest parts of their operations in order to focus on specific areas. Germany’s biggest utility company, E.ON, (also one of the ‘Big Six’ energy companies in the UK) announced at the end of November that it would be selling off its fossil fuel business. This included its coal, gas, hydro and nuclear power operations, which would be split off into a new company. Instead, the firm will refocus its attention on renewables.
The strategy reflects the shifting state of the energy market: where others are consolidating in order to gain an upper hand over smaller rivals, companies such as E.ON are realising they need to pick and choose which of their operations they’re going to focus on in the future.
Whether all these mergers and acquisitions or divestments signal what to expect during the coming 12 months in the global energy markets remains to be seen. With oil prices falling around the globe and geopolitical conflicts forcing many firms to reassess operations in certain parts of the world, the world’s energy markets may look considerably different in a year’s time.
Carnival Corporation stays committed to environmental sustainability
Cruises are the fastest-growing sector in the global travel industry. The sector grew by over 2,100 percent between 1970 and 2009, contributed over $117bn to the global economy in 2013, and is predicted to draw in more than 23 million passengers in 2015. The US is currently the largest cruising market, but it is enjoying particularly pronounced growth around the world, including Asia, New Zealand and Australia, where cruises are just beginning to gain a firm footing. And it’s not expected to slow down any time soon.
But as the sector grows, cruise companies are continuing to place a great deal of focus on protecting the environment, oceans and communities they visit throughout their journeys. It is important to take measures to protect the ocean and air for a number of reasons, including maintaining the idyllic image associated with going on a cruise.
The global maritime industry is making environmental responsibility an utmost priority, achieving a 20 percent reduction in greenhouse gas emissions between 2007 and 2012, according to the Secretary General of the International Chamber of Shipping.
1,500
Tonnes of drinkable water produced by the Britannia each day
7%
Operating power saved by the Mitsubishi Air Lubrication System
Leading the charge is the world’s largest cruise company Carnival Corporation, whose nine, industry-leading brands include Carnival Cruise Line, Seabourn, Cunard Line, Costa Cruises, P&O Cruises (UK), P&O Cruises (Australia), Holland America Line, Princess Cruises and Aida Cruises. The company has published its sustainability reports since 2011 – the first cruise company to do so, putting it first in the world for transparency – and has implemented far-reaching initiatives that go beyond current requirements and regulations. In 2014, it met its goal to reduce CO2 emissions by 20 percent (a full year ahead of schedule) and this year it will put the world’s most environmentally friendly cruise ship into action – the 3,300 capacity AIDAprima.
While ship construction has slowed in recent years, Carnival Corporation has continued to build new vessels – all of which have incorporated fuel-efficient designs, hulls and exhaust systems. The company is set to increase its fleet capacity in coming years with the introduction of 10 ships between 2015 and 2018, including the biggest vessel the British market will ever have seen, the Britannia, which was christened in March by Her Majesty the Queen. With its new, innovative approaches to sustainability, Carnival is setting a precedent others in the industry would do well to follow.
Fleet Fuel Conservation Programme
Carnival Corporation has certainly been active in its aim of driving sustainability in the cruise industry, signing up to the Sustainable Shipping Initiative, developing its Code of Conduct and Ethics programme, and establishing partnerships with environmental organisations such as the Nature Conservancy. The company has also created a number of its own initiatives: among them is its Fleet Fuel Conservation Programme, under which it seeks to establish fuel-efficient ship designs and energy-saving approaches across its fleet of 100-plus ships.
The efforts are starting to pay off: by the end of 2014, the company had saved over one billion gallons of fuel and reduced fleet carbon emissions by 12 billion kilograms over the past seven years, while improving the fleet’s efficiency by 24 percent since 2007 – generating savings of around $2.5bn in fuel costs. “The programme has become a cornerstone of the corporation’s strategy to collaborate across its nine industry-leading brands and leverage its scale, while supporting sustainability initiatives designed to reduce environmental impact from maritime operations”, says Elaine Heldewier, Sustainability Director at Carnival Corporation.
That success has been reached through several tenets, all of which come under a wider initiative: Ships for Greater Efficiencies. From cleverly thought-out hull coatings and designs that minimise drag, to systems that utilise waste heat for water and steam, to energy-efficient lighting, air conditioning, and automatic heating control systems, its reach is comprehensive – and it’s little surprise other lines are set to follow suit. Other key focuses include improving how the ships move through the water to optimise speed and cruise distances, developing fuel homogenisers that improve combustion, reducing the use of onboard water, and optimising plant energy consumption alongside diesel generator use.
The company is also pumping significant investment into designing more fuel-efficient itineraries, developing effective waste management practices, and educating onboard officers, crew and guests in energy saving issues.
Port power
Carnival Corporation is also upping its use of ‘cold ironing’ – that is, using power installations on shore when ships are docked and drawing on the local grid for electricity, rather than generating power on board by running their engines. Currently, 35 percent of Carnival Corporation’s fleet is equipped with cold ironing capabilities.
Hamburg – whose port is key for the Germany-based AIDA fleet – has now taken things one step further with Hummel, a floating LNG Hybrid Barge that uses liquefied natural gas and CHP engines to generate power for docked ships. It prevents emissions from sulphur oxide and soot particles entirely, can cut CO2 levels by approximately 30 percent and reduces nitrogen oxide emissions by up to a staggering 80 percent.
“With this pilot project, Becker Marine Systems and AIDA Cruises are together setting an example for environmental and climate protection, not only for the city of Hamburg but also for the entire maritime industry”, said AIDA President Michael Ungerer at the project’s opening. “With the LNG Hybrid Barge, we have again demonstrated that environmental protection and economic interests are not a contradiction for us”, he added.
Driving innovation
It’s an exciting time for Carnival Corporation and the industry as a whole, with new technologies constantly being developed to transform cruise lines and limit their impact on the environment. Innovation is at the heart of the company’s eco-strategy – as shown by a world-first gas cleaning technology, ECO Exhaust Gas Cleaning technology, which it has invested $400m in developing, building and installing.
Carnival worked with the US Coast Guard, the US EPA and Transport Canada to develop a breakthrough solution for cleaner air that will allow for a more cost-effective compliance with strict regulatory requirements in Emission Control Areas (ECA) where, in 2015, the fuel sulphur limit was reduced to 0.1 percent. It will also assist the firm in meeting global International Maritime Organisation standards, whose limit in non-ECA areas is set to drop to 0.5 percent by 2020 (from a current level of 3.5 percent). The company is pioneering a revolution in the cruise industry by removing major pollutants from exhaust gases at any operating condition (whether at sea, while manoeuvring or in port). The two-pronged system uses filters that reduce particulates from the ship’s engine emissions and seawater to remove sulphur compounds from the exhaust gases.
According to Heldewier, this is a rare breakthrough: “Due to the limited availability of shipboard exhaust gas cleaning systems, we decided to lead the way by developing the technology and by making the necessary investments”, she says. “This is the first time this combination is being applied within the restricted spaces on existing ships to perform in the marine environment.” The company plans to install the system across 70 percent of its fleet over the next three years.
The technology has already been introduced to various ships within the Carnival brands.
Additionally, P&O Cruises’ (UK) newest Britannia ship is the most fuel efficient and green ship in that company’s fleet and will deliver greater levels of operational and environmental efficiency than in the past. Its new hull form will reduce its unit fuel consumption by up to 20 percent. And, on top of that, the ship can produce 1,500 tonnes per day of drinkable water from seawater using heat from the ship’s diesel generators.
What’s more, the next generation of AIDA Cruises ships, set to be rolled out in 2015 and 2016, will be the first in the world to feature Mitsubishi Air Lubrication System technology. The system, which the company claims will save seven percent of operating power, works by creating bubbles between the ship’s hull and water to reduce friction (“enabling the ships to glide on an air-bubble carpet”, in Heldewier’s words). The vessels will also feature dual-fuel engines, powered by eco-friendly, almost emission-free, liquefied natural gas.
The newest ship, AIDAprima, entering service in 2015, will use 20 percent less energy than its predecessor (AIDAstella) despite being substantially bigger. That’s being achieved through improved insulation, alongside the use of electronically controlled pumps and eco-friendly LED lighting.
AIDA is also focusing on making its interiors more sustainable; its newest vessel will feature eco-friendly and recyclable carpeting, which is made from sheep’s wool and, when no longer needed for the ships, can be returned to the manufacturer. “AIDAprima, the latest AIDA ship which enters service in 2015, not only sets new standards in environmental technologies, but also in sustainable interiors”, says Heldewier. “An essential part of the environmental strategy of AIDA Cruises is to use resources efficiently”, she adds.
Waste not, want not
It’s not just AIDA stepping up its game in the sustainability arena; Costa Cruises, another key brand within the Carnival Corporation group, has implemented a €2.7m three-year ‘Sustainable Cruise’ project. It’s being backed by the European Commission, which is contributing 50 percent of the funding as part of its LIFE programme. Launched in 2011, the initiative has seen Costa Cruises test a variety of shipboard waste-management models and techniques in order to comply with the European Directive on Waste, basing its focus around the ‘three Rs’: reduce, reuse and recycle.
The project has focused on three types of shipboard waste: packaging, paper and biodegradable materials. Among the tests on the Costa Pacifica (one of the line’s newest ships) was a Turbo-Dryer, installed to treat biodegradable food waste. By removing moisture and so reducing its volume, the new technology is able to convert the waste into animal feed and make efficient use of it. Laboratory tests revealed the oil and fat derived from processing the biowaste could potentially be turned into biofuel and used as an eco-friendly energy source. Passengers also got involved with a campaign to raise awareness about paper waste. These waste-management practices have now been implemented across the entire Costa Cruises fleet.
Supporting local regions
Sustainability in the cruise industry isn’t limited to the ships themselves – something Carnival Corporation has recognised and responded to.
AIDA opened a new sustainable office building in October (known as the AIDA Home), constructed using the latest eco-friendly tech. The building’s temperature will be controlled using geothermal technology and compression refrigeration. “AIDA Home will also feature a modern indoor climate concept with hybrid facade, thermal component activation, displacement ventilation, as well as radiant heating and cooling ceiling panels”, says Heldewier. “This guarantees a perfect working climate any time of the year.” The building is set to save up to 60 percent on energy and considerably reduce CO2 emissions.
AIDA has extended its environmentally friendly footprint yet further, recently introducing BMW i3 electric cars into its motor fleet, meaning members of its workforce can reduce their carbon footprint before even arriving at the cruise terminal. The corporation is also working to standardise shore excursion sustainability programmes. For example, AIDA now counts 127 sustainable shore excursions and 230 biking tours (across 160 destinations) among its list of eco-friendly trips.
AIDA’s sustainable excursions
127
Shore excursions
230
Biking tours
160
Destinations
The company scores its tours against criteria within different categories to help customers gauge what effect they’re having on the area. “Taking ecological and social criteria into consideration during our trips is a matter of responsibility and an expression of respect for the countries we visit as well as their culture and people”, says Dr Monika Griefahn, Chief Sustainability Officer at AIDA Cruises. “The new catalogue of criteria makes it possible for guests to compare the options.”
Carnival fosters and encourages community partnerships, philanthropic donations and employee-driven volunteer activities geared to build better communities throughout the world. Over the years, the corporation’s various community programmes have helped create stronger communities, strengthen its corporate values and generate extraordinary personal satisfaction among its employees.
The AIDA Friends of the Ocean foundation is one example of Carnival Corporation’s brand community programmes. It is initiating several garbage collection events at beaches in Rostock and Hamburg, raising awareness about the negative impact of microplastics and giving out beach-friendly ashtrays to keep the shores cigarette-free.
As part of Carnival’s commitment to supporting the communities it touches, during times of regional or global crisis, it works closely with various national and international relief organisations, coordinating corporate and employee donations. Typhoon Haiyan, which impacted the Philippines, affected Carnival at a very personal level. Not only do its ships visit the Philippines, but it is also the home of many of its crewmembers and their families. Carnival and its brands donated over $1.5m, which was distributed among various organisations, including UNICEF, Direct Relief, Save the Children, International Red Cross and the International Medical Corps.
“We have plans in place to continue to build a diverse and inclusive workforce and to strengthen our engagement with our stakeholders to further identify and employ sustainability-related gains, both local and globally”, says Heldewier.
With a $700m investment in making its existing ships safe and environmentally sound, plans to knit ever-closer ties with stakeholders, an ambitious strategy to expand its presence in Asia, and new ships set to be the most efficient the ocean has ever seen, Carnival Corporation appears to have a bright, green future ahead. Its pioneering vision could lead important change in the wider cruising industry, helping passengers bask in the beauty of nature without worrying about clouding it with pollution – safe in the knowledge they are travelling sustainably, and supporting, rather than disrupting, the destinations they explore.
Businesses can be competitive and environmentally-friendly
At one time, it was believed positive decisions for business were inherently negative for the environment, and vice versa. In the 21st century, however, that paradigm has gone through a dramatic transformation – one where the three pillars of sustainability (environmental, social and economic) are no longer viewed in isolation, but are, instead, inextricably tied to one another.
This new paradigm is driving progress in the area of sustainability, creating the foundations for a framework that helps companies such as Resolute meet their environmental challenges head on – without compromising their ability to compete in the global market. The New Economy got the opportunity to sit down with the company’s Vice President of Corporate Communications, Sustainability and Government Affairs, Seth Kursman, to discuss how Resolute has exceeded its sustainability targets, the positive work it has done with the World Wildlife Fund (WWF), and why “fringe groups” are doing more harm than good.
Sustainability is about balancing the environmental, social and economic imperatives
Three pillars of sustainability are mentioned frequently on your company’s website. How you have put those into action?
The three pillars together are really what sustainability is all about. This is consistent with the United Nations World Commission on Environment and Development. When the commission defines sustainability, they talk about development that meets the needs of the present, without compromising the ability of future generations to meet their own needs. They talk about social development, economic development and environmental protections, and so the three pillars are inextricably linked together.
In the old paradigm, the view that many companies and environmental groups had was that, if you did something that was good for the environment, it was going to be bad for business, and vice versa. Now you can do things that are good for the business’s bottom line and also have an environmental benefit. For example, when we shut down our coal boilers at our Coosa Pines (Alabama) mill and replaced them with two gas-fired package boilers. There was cost involved, but people care about the future of our planet, and so, yes, we invested $12m, and, yes, we took out all of the coal use at our mill. Now we offer a product that we can market as having far less of an environmental footprint, which gives us an advantage in the fiercely competitive global market.
So, in summary, in your opinion, economic and environmental decisions are not mutually exclusive at Resolute?
That’s right. There’s mutual benefit, and that is really the difference between the new approach to sustainability and the old paradigm. Unfortunately, there are still groups out there who embrace the old ideal. They are combative and rely on dirty tricks,
deception, fabrication and misinformation. Such groups do a terrible disservice. Let’s go back to the idea of sustainability: it’s all about balancing the environmental, social and economic imperatives. It’s important to recognise and celebrate the constructive progress that is happening. When certain environmental activist groups launch market campaign activity and misrepresent reality, they are not just attacking a faceless corporation. Their actions have a detrimental impact on real people, their lives and livelihoods, and the growth and prosperity of communities across the world.
Is the handling of the issue by advocacy groups problematic in your opinion?
How you define such groups is a critical distinction. What some people label “advocacy” others consider fringe activism. There is important work being done by groups such as the WWF and they operate in the mainstream. They have a very collaborative approach, and it is a pleasure to work with them. The WWF Climate Savers programme provided Resolute with important support and structure that has contributed to our achievement of a 67.5 percent reduction in greenhouse gas (GHG) emissions since 2000. Today, we’re also 100 percent on-site coal-free. And the WWF can take pride in our accomplishment.
UN scientists have said the world must cut CO2 emissions to zero by 2070 in order to avoid a catastrophic event. Do you think that is achievable?
My honest answer is, “I don’t know”. That said, when Kennedy said “we’re going to put a man on the moon”, I’m not sure we knew exactly how we were going to do that either. But we set a goal to focus on, it was aspirational and, in the end, it was achievable. Now, what you have asked me is an ongoing debate for the scientific community, but it is incumbent upon us, as a company, to do the very best that we can. We need to set targets and measure our progress. We work in a spirit of continuous improvement and aspire to be better tomorrow than we are today.
What are some of the technological developments that have helped Resolute to meet its GHG reduction commitments?
Fuel switching is big, as are conservation efforts. The payback can be quite significant. And innovation is critically important as well. A great example is our partnership with local investors in the Quebec Lac-Saint-Jean region to build what will be the biggest greenhouse in the province of Quebec. It is situated on land adjacent to our Saint-Félicien pulp mill. Imagine, a 35-hectare greenhouse – that’s huge. The project is currently underway, and the first cucumbers will be harvested in September 2015. Over the next five years, this project will provide jobs for over 400 people.
We have also teamed up with Mercer International to launch a new venture called Performance BioFilaments, and we are developing commercial uses for cellulose filaments, which are a biomaterial derived from wood fibre. It is entirely renewable and is a natural resource. Cellulose filaments can enhance the strength, stability, flexibility and longevity of a range of different products. They could be used for everything from more fuel-efficient cars to healthcare products.
These are the kinds of initiatives we as a company are involved in, and we are certainly not doing that in a vacuum. There are lots of other companies doing similar things, and there are many great stories to tell out there. That is why the old paradigm of “us versus them”, “good versus bad”, “environment versus economics”, as you said, is such an out-dated, oversimplification that is harmful to progress. In fact, it does a disservice to the great advancements that are taking place in our company, our industry and in society as a whole.
World Happiness Index leaves Greece sad
Switzerland ↑
Denmark came top of the list in the last report, but it’s been bumped into third by Iceland in second and Switzerland in first. Factors such as GDP per capita, social support, life expectancy, freedom to make life choices, generosity, and perceptions of corruption were all at healthy levels for the Swiss. Their country’s score of 7.587 was higher than any other in the 158-nation sample.
Togo ↓
Poor Togo came bottom, scoring only 2.839, with each of the aforementioned variables sitting at a dismally low level. Its citizens might take solace in the fact there is only a four-point gap separating the top 10 and bottom 10 countries, but it doesn’t look like they’re going to cheer up anytime soon; there is also a great deal of year-to-year consistency in how people in the top and bottom nations rate their lives.
Greece ↓
Greece has slipped the most of all the countries listed, looking at changes over the last 10 years. Economic problems combined with uncertainties about what the future holds mean happiness levels have slumped. Italy and Spain have also slipped, and for similar reasons.
Ecuador ↑
Ecuador’s improved levels of happiness are emblematic of substantial improvements in the region as a whole. Of the top 10 gainers, five are Latin American nations. While it’s thought this is because other countries have become less happy as a result of the global recession, the report acknowledges there are other forces at play – such as the tendency of Latin Americans to avoid appearing negative, no matter how they actually feel.
Japan ↑
Despite having the highest life expectancy, Japan sits in an unspectacular 46th position. However, the report’s findings are interesting in that they reveal “levels of trust and social capital in the Fukushima region of Japan were sufficient that the Great East Japan Earthquake of 2011 actually led to increased trust and happiness in the region”. It’s a perfect example of how crises, in certain instances, can improve happiness.
To check out the World Happiness Report, click here.
Google enters telecoms market with Project Fi
Google’s efforts to dominate every part of people’s digital lives continued with the news that it had launched its own wireless network to rival telecoms giants. Project Fi is a budget cellular and Wi-Fi network that will connect mobile users to the internet while also providing voice calls. Google’s entrance into the market has the potential to further shake up an already changing telecoms industry.
The company has been looking at breaking into the mobile telecoms market for a while now
The project is launching just in the US on a relatively small-scale for now, however it is likely to be quickly rolled out across the country and beyond if it proves popular with users. Starting at $20 a month, the service will try to bring down costs to users by refunding them for any unused data at the end of each month. Currently just invite-only and solely for Nexus 6 owners, Project Fi has been in testing for a number of years, with an initial announcement in Kansas City in 2011.
Google has not built its own telecoms infrastructure to provide the service, instead partnering with networks T-Mobile and Sprint. The company has been looking at breaking into the mobile telecoms market for a while now, reportedly offering $5bn for some of America’s data spectrum in 2008.
Announcing the news on its blog, Google said by connecting users to free Wi-Fi hotspots as well as Sprint and T-Mobile’s 4G networks, enabling a consistent and high-speed service that doesn’t place a huge strain on networks. “As you go about your day, Project Fi automatically connects you to more than a million free, open Wi-Fi hotspots we’ve verified as fast and reliable. Once you’re connected, we help secure your data through encryption. When you’re not on Wi-Fi, we move you between whichever of our partner networks is delivering the fastest speed, so you get 4G LTE in more places.”
The telecoms market in the US is undergoing considerable change at the moment. A price war between leading providers has been rumbling on for months, with Sprint, Verizon, AT&T, and T-Mobile all competing for a share of the increasingly lucrative market. At the same time, the lines between mobile telecoms and other internet services have blurred, with cable providers joining forces with existing telecom firms. AT&T recently acquired Direct TV for around $49bn in a response to the merger between Comcast and Time Warner.
However, the $45bn Comcast-Time Warner deal has faced heavy regulatory scrutiny, with the US Federal Communications Commission recommending this week that it faces an administrative hearing that would drag the approval process on. Google’s entrance into the telecoms market will add to its existing smartphone business, as well as its numerous digital media offerings, such as Google TV. It has already partnered with Comcast and Time Warner to offer its Google Fiber ‘ultra-fast’ broadband service, although it had to invest heavily in acquiring and building new fibre optic cables infrastructure.
Comcast-Time Warner Cable merger threatened by FCC
Comcast’s plans to purchase Time Warner Cable for $45bn have prompted the US Federal Communications Commission to recommend an administrative hearing. The FCC’s move indicates that the union of the two cable giants would not be in public interests.
Following the recommendation, the decision whether to allow the acquisition to proceed will be voted upon by five of the FCC’s commissioners. The process could be lengthy, which in itself could result in the termination of the deal.
TWC has started making preparations in the event that the deal falls apart
Comcast hopes that merging with TWC will enable it to experience growth in the cable market, which has been slowing as more consumers switch to subscription-based or pay television. The union of the two firms would give the entity control of around 57 percent of the broadband market and a 30 percent segment for pay television.
Numerous media companies, including 21st Century Fox and Walt Disney, have raised their concerns against the merger, according to reports. While Discovery Communications and Netflix have openly lobbied against the influence that ‘Comcast TWC’ would have in the market.
“Giving so much control over our communications system to one company, especially one with a track record of spiralling prices, terrible customer service and blocking internet content, would be a mistake,” Matt Wood, policy director of the NGO, Free Press, told the Financial Times.
According to The Wall Street Journal’s sources, TWC has started making preparations in the event that the deal falls apart. Given that it is in a better position than it was when negotiations first began as a result of improved management, industry experts believe that TWC’s value has increased and so it may seek to make its own acquisition.
Ingenuity Lab blends technology and nature
Since time immemorial, mankind has crafted its world through the creative manipulation of a small number of fundamental machines. In the agricultural and mechanical ages, from the printing press to the first aeroplanes, all the trappings of civilisation were crafted from the six fundamental machines of physics: the screw; the wheel and axle; the incline plane; the lever; the pulley; and the wedge. The modern electronic age was established through the addition of five fundamental machines to humankind’s toolbox: the diode; the transistor; the inductor; the resistor; and the capacitor. Our entire civilisation is founded on the creative exploitation of the properties of only 11 different building blocks. Everything from smartphones to electric cars to global positioning satellites are crafted from systems built from this very small number of discrete functional pieces.
Our entire civilisation is founded on the creative exploitation of the properties of only 11 different building blocks
But technological achievements pale in comparison to the complexity of biological achievements. The ability of living systems to transform matter and actively interact with the environment sets them apart from current systems made by man. This difference in complexity can be attributed to the fact that nature has tens of thousands of building blocks to work with instead of the 11 used by man. Think of the extraordinary systems humans could engineer if we had access to this incredible selection of tools.
Using nature’s building blocks
In the past decade and half, we have gained insight into the workings of nature at the smallest scales as we have developed the ability to manipulate, control and interrogate matter at the atomic level. But much of the promise of establishing new industries and economies founded on these scientific achievements has not come to pass. This is all about to change. With the foundations laid, the next 15 years are destined to see the application of these scientific advances in technologies that directly improve the human condition, creating both economic wealth and societal benefit.
The ability to use nature’s building blocks to manipulate matter a single molecule at a time renders many things possible that were impossible before. Living systems do this on a regular basis. Nature utilises molecules that convert energy and matter into multiple forms. These molecules have the ability to actively select, sort and transport molecules, and the capability to facilitate the exchange of information, thus enabling communication between molecules. The core challenge is how to transform a labile molecule that exists in a fragile living organism and transfer that functionality into a stable system that is economically scalable. The most significant difficulties revolve around environmental stability and the inherent structural limitations of the molecule.
Ingenuity Lab was created to bring together researchers from many disciplines to capitalise on the molecular interactions found in living systems and, through molecular manipulation, incorporate this functionality into complex systems to yield technologies for solving many of the world’s societal challenges.
Recent advances at Ingenuity Lab have enabled the technology to utilise nature’s fundamental machinery in engineered systems, thus establishing a whole new class of functional materials. Through the stabilisation and precision assembly of active biological molecules into engineering systems, we have enabled the incorporation of ‘metabolism’ into engineered devices and materials.
An example of this new technological capacity is the harnessing of an element of the photosynthetic cycle to transform CO2 emissions into valuable products. Through the incorporation of an element of life’s metabolism into an aerofoam, Ingenuity Lab has been able to incorporate ‘life’ into a man-made material. Because all the energy inputs are directed to transforming CO2 into products, this process is up to 20 times more efficient at producing value than plants. In fact, because this technology enables access to the complete metabolic cycle, it has the potential to transform CO2 waste into over 40 different valuable drop-in chemicals. This new technology is poised as a scalable and sustainable weapon to address climate change and simultaneously evolve waste into value.
The fourth dimension
In recent years, much has been written about 3D printing technology. Additive manufacturing has the ability to enable a significant transformation in the global economy, advancing the value of information, while distributing and reducing the costs of both capital infrastructure, and product and material transportation, and accelerating the evolution of products.
This technology relies on the use of specialty ‘inks’ that solidify into a defined structure using various processes. The most common 3D printers use a single material type, most often a plastic, to manufacture the final product. I equate this process to building the wooden framework of a tree. This technology allows control of the structure morphology to make the device light and strong, and minimise the use of material.
State-of-the-art 3D printing technology is directed at using multiple inks, such as plastics, ceramics and metals. This has the potential to make more complex products that exploit the advantages of different material properties, such as strength, flexibility, durability and conductance. This greatly expands the application opportunities, enabling the potential to produce items as varied as antennas in plastic cell phone cases, to high-temperature-, high-load-tolerant jet engine parts.
Advances at Ingenuity Lab have enabled the transition of additive manufacturing from 3D space to a four-dimensional, functional space. Through developments in stabilising a very large set of fundamental biological building blocks, the suite of blocks available to engineer complex systems has been greatly expanded. A new class of printable inks is under development that exploits this expanded set of tools to enable the incorporation of biological metabolism as an intrinsic property in the devices we assemble. Four-dimensional manufacturing will allow devices to actively interact and transform their local environments in many of the same ways living systems do. This next wave of technological progress will enable the creation of materials and devices that transform energy, and collect, process and act on information. This will be a low-cost technology that will provide many new avenues to address global challenges with solutions that can improve quality of life and prosperity for all. We have built our man-made world from a few simple blocks; with nanobiotechnology, we will be able to reshape nature.
For further information contact montemagno@ualberta.ca