Cradle To Cradle Passport Towards A New Industry Standard In . - OECD

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Cradle to Cradle Passport – towards a new industry standard in ship building Jacob Sterling, Head of Climate and Environment, Maersk Line

Agenda: 1. Introduction to Maersk Line’s environmental priorities 2. Our new building programme and the Triple-E vessels 3. Cradle to Cradle in ship building 4. The Cradle to Cradle Passport - towards a new standard in ship building?

Maersk Line’s sustainability vision We will be known as the industry leader based on our efforts to drive superior sustainability performance in global supply chains, to the benefit of customers, employees and society at large

Key environmental targets 25% reduction in relative CO2 emissions from owned and chartered vessels from 2007-2020 Drive own and industry SOx emissions towards zero through voluntary action, innovation and regulatory work Drive negative impacts on the marine environment towards zero – and use vessels to gather data on the state of the oceans

Key environmental initiatives New vessels to set new standards on energy efficiency and Cradle to Cradle design Existing fleet will be retrofitted with new technologies to improve energy efficiency and environmental performance Test of biofuel and engage in partnerships to encourage innovation Voluntary fuel switches to cleaner fuels in selected ports Rating of ports to ensure safe disposal ashore of the waste from vessels

Maersk Line’s current new building programme: 22 WAFMAX vessels (4,500 TEU) – Hyundai, Korea 16 SAMMAX vessels (7,450 TEU) – DSME, Korea 20 Triple-E vessels (18,000 TEU) – DSME, Korea 190 Mill. USD each - 30 Mill. USD for environmental improvements

The Triple-E vessels Economy of scale: 18,000 TEU capacity, 26% lower slot cost than other large, new built vessels. Energy efficiency: Designed for slow steaming, two super long-stroke engines, waste heat recovery Environmentally improved: 50% less CO2 per container moved.

Triple-E – reflections on the use of materials Shipping and other heavy industries depend heavily on steel In a business as usual scenario, we have enough steel for 60 years To sustain our business long term, recycling and reuse of steel is key

Responsible recycling today loss of high-value materials How to design ships for better recycling?

The Cradle to Cradle concept Obtain material The Cradle to Cradle is a concept for reducing resource use and pollution Cradle to Cradle is a concept for eliminating waste Manufacturing Assembly Operation Materials should either go back to nature or be ”food” for new products. Disassembly Waste / ‘downcycling’

The Cradle to Cradle concept Obtain material The Cradle to Cradle is a concept for reducing resource use and pollution Cradle to Cradle is a concept for eliminating waste Materials should either go back to nature or be ”food” for new products. Material Pool Manufacturing Disassembly Assembly Operation

Cradle to Cradle Passport: A first step towards full vessel recycling

Cradle to Cradle Passport – our partnership with DSME The objective A document that describes all materials used to build the Triple-E ships and how to disassemble and recycle them – en ”extended green passport”. The task Develop a database that can capture information on materials used, and their location (3D) Engagement with suppliers to DSME so that they feed information to a database about material composition of products. Have the Cradle to Cradle Passport verified by class society.

Benefits for all if we work together The expected benefits Reduced lifecycle environmental impact Higher resource availability in the long term Higher recycle price for vessels (estimated 10% higher) Easier to ensure compliance with regulation (IHM) An incentive to ensure responsible recycling Towards an industry standard Improved management of the steel and other resouces used to build ships is a shared challenge. We believe that the Cradle to Cradle Passport should be developed into a common industry standard. Interested? Let’s discuss, share and develop!

Thank you for your time! Any questions or comments?

The Cradle to Cradle is a concept for reducing resource use and pollution Cradle to Cradle is a concept for eliminating waste Materials should either go back to nature or be "food" for new products. The Cradle to Cradle concept Obtain material Manufacturing Assembly Operation Disassembly Waste / 'downcycling'

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