Hong Kong / 14 – 16 November 2018

ExecutiveSummary

www.sustainableoceansummit.org

The International Ocean Business Forum To Advance Responsible Use Of The Seas

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The Sustainable Ocean Summit 2018 convened at the New World Millennium Hotel in Hong Kong onNovember14-16.TheWorldOceanCouncilwouldliketothankKittyKamandtheteamofOceanAmbassadorsfortheiron-sitesupportanddiligence innote-takingduringconferencesessions.The reportwaswrittenby JaneHeiTungChu,editedandreviewedbyChristineValentin.TheWorldOceanCouncilwouldliketothankalloftheminparticular.DisclaimerTheopinions,beliefsandviewpointscapturedbytheauthorinthisdocument,asexpressedbythespeakersanddelegatesof the SustainableOceanSummit2018,donotnecessarily reflect theopinions,beliefs andviewpointsoftheWorldOceanCouncilnortheofficialpoliciesoftheWorldOceanCouncil.The World Ocean Council aims to capture, summarize and reflect on the sessions convened at theSustainableOceanSummit2018 inatruemannerandcorrectformat.TheWorldOceanCouncilmakesnorepresentationorwarranty,expressedorimplied,withrespecttotheaccuracy,completeness,suitabilityorvalidityoftheinformationinthisreport,andacceptsnoliabilityforanyerrors,omissionsormisstatementsthereinorforanyactiontakenornottakeninrelianceonthisreport.SustainableOceanSummit2018SummitReport©WorldOceanCouncil,2019

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EXECUTIVESUMMARYThe World Ocean Council (WOC) Sustainable Ocean Summit (SOS) has become the premier forum foradvancing global industry leadership and collaboration on ocean sustainable development, science andstewardship. Following the success of the SOS in Halifax (2017), Rotterdam (2016), Singapore (2015),WashingtonD.C.(2013)andBelfast(2010),theSOS2018convenedattheNewWorldMillenniumHotelinHong Kong on 14-16November,with the themeof “Ocean Sustainable Development – Connecting AsiaandtheWorld”.Since 2010, the SOS has been bringing together leaders from the diverseOcean Business Community –shipping, fisheries, oil and gas, aquaculture, offshore renewables, tourism, seabed mining, marinetechnology, law, insurance, finance, etc. – as well as ocean stakeholders from the government, inter-governmental, scienceandenvironment communities– to focuson industry-driven action on “CorporateOceanResponsibility”.

GeneralHighlightsWith an unparalleled line-up of ocean industry leaders (including special speakers Former SeychellesPresident JamesMichel,U.N.OceanEnvoyAmbassadorPeterThomsonandHongKongSARDirectorofMarineMaisieCheng),theSOS2018deliveredarichagendathatfeaturedplenaryandparallelsessionsonWomen’sLeadershipinOceanandCoastalBusiness,AsianShippingandShipbuilding,BiofoulingandInvasiveAquaticSpecies,OneBeltOneRoadOneOcean,OceanInvestmentPlatformandmore.Side events at this year’s SOS included the inaugural CEOcean Club (a gathering of the 30 most seniorbusinessand investmentrepresentativesattheSOS),theYoungOceanProfessionalsandOceanWomen:BlueEconomyNetworkingSocialEvent,andLunchandLearn–WhatValuecana“DigitalOcean”BringtoMarine/MaritimeActivity?–organizedbyWOCMemberMercatorOceanInternational.“Getthebalancerightbetweenproductionandprotection.Businessistheenginetomakethishappen.”–PeterThomson,SpecialEnvoyfortheOcean,UnitedNations“You are the solution towards how we can survive, thrive and prosper in a sustainable manner – bynurturing our fragile ocean environment through investing time, resources and effort in collective andcollaborativeways.”–KennethKoo,TCCGroupChairmanandCEO,SOS2018ConferenceChair“TheSustainableDevelopmentGoalsaregreatguidancebutthey’renotspecifictooneofus.Theoceanindustriesneedtoplayacollaborativerole–andwewill.”–DespinaPanayiotouTheodosiou,WISTAInternationalPresident“Topleadersandrepresentativesfromdifferentsectorsaregatheredhereforanenlighteningexperience.Theparticipationofgovernmentofficialsislikewisecrucial.Wehaveamacropicturehere.”–SimonKuik,VicePresidentandHeadofResearchandDevelopment,SembcorpMarine“The SOS 2018was a terrific learning experience. The knowledge sharedwas rich and informative. It’swonderful to know that we are pushing the frontiers – priotizing beyond development and economicfrontiersandbuilding futureperforming forums.”–CaryAnneCadman,EnvironmentSectorCoordinator,WorldBankClickheretorevisittheSOS2018Program.

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ThematicOutcomesTheEconomicPerspectivePopulation growth has been a key driver of economic demand and infrastructure development. Oceanindustries are rising to the challenge, and are forecasted to double their contribution between 2010 and2030. Government commitment will be critical to ensuring industry growth, as well as encouraginginnovationandcollaborationbetweenpublicandprivatestakeholders.Whiletheriseofconsumerismhasopenedopportunitiesfor industry,theprivatesectorandgovernmentsneedtoacknowledgethatbybringingtheseproductsin,theyhavebecomepartoftheproblem–andneedto be part of the solution – not just because it is the right thing to do, but also because itmakes goodcommercialsense.Thepotentialofocean-centricinnovationspacetoimproveenvironmentaloutcomesisenormous,andwillbe achievable through collaboration with corporations, banks, foundations, sustainable impact and long-term thinking sovereign wealth and pension funds. Ultimately, private sector financing requires fromcomplexblueprojectsanelementofpipelinereplicabilityandscalability–totheextentthattheyservenotjustonebutmultiplereturnsintermsofsustainability.TheSocialPerspectiveSustainabilityisnotjustaneconomicandecologicalconcept–rather,it’sasocialmovementthataffectsusall.Competinginterestsbetweensectorsandcommunitiesrequiremutuallybeneficialsolutionsoverseenbyregulatory bodies and facilitated by dialogue with relevant stakeholders. To bring research to reality,assessmentsofethics,sociallicenseandgovernancewillbenecessary.ThedevelopmentofnewtechnologiesfortheDigitalOceanhasattimesnecessitatedaneedforcommunityconsent. That said, data applications by ocean industries hold much promise for raising awareness ofconservancyandengagingtheyoungergeneration.TheEnvironmentalPerspectiveIn face of today’s unprecedented rates of planetary change, there can be no more “business as usual”.Ocean industries have a responsibility to contribute to the livability of our planet while there is still anopportunity. Regulations and guidelines continue to be developed to ensure industries comply with thehigheststandards.Environmentalimpacthasbecomeariskinfinanciers’lensof“riskandreturn”.ItisimportantthatinvestorstaketheESGparametersastepfurtherbymeasuring“additionality”intermsoftheSDGswheninvestinginsustainability projects.While a lot ofmarine environment data, and applications to use these data, havebeenmadeavailable,thenextstepisforstakeholderstocapitalizeonthisavailabilityanddrivepolicyandbusinessdecisionsintherightdirectionforasustainablefuture.TheSOS2018broughttotheforethebenefitsofbusinessalliances/clustersandcross-sectoralcollaboration,whichhavecreatedcommonresearchprograms,facilitatedfunding,empoweredindustriestoadvocateforregulatory changes, and disseminated knowledge and best practices. TheWOC, as a global cross-sectoralalliance aimed at facilitating “Corporate Ocean Responsibility”, represents the ideal platform to furtherthesecollaborations.

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AsianShippingandShipbuildingNewenvironmentalregulationshavegeneratedadditionalexpensesforthesector,aswellasanurgentneedforinvestmentintechnicalinnovationtocomplywithrevisedstandardsonthedesignandmanagementofengines, fuelprocessesetc.There ismuchconcern that failure todo sowouldcause infrastructure issuesleadingtoinefficienciesandunforeseenlossesinthenearfuture.Theconservativemindsetsofshippers,aswellasalackofyoungtalents,haveimpededeffortsinindustry-widedecision-makingoninnovation.Technicalsynergieswillservemuchtoimprovesafetyinnavigationandcoverlackofexperience,aswellasfulfilldemandsontransparencyfromthewidercommunity.BiofoulingandInvasiveAquaticSpeciesBiofoulingcurrentlyaccounts forathirdof invasivespeciesbeingtransportedglobally,and increaseddragand fuel consumption have seen increased CO2 emissions from travelling vessels. That said, anti-foulingproductsthathavebeendevelopedcomewiththeirownenvironmentalissues.ResponsesbygovernmentsandNGOshaveseenthe implementationofnewguidelinesandtargets foranti-foulingsystemstoensurethattheycomplywithglobalsustainabilityobjectives.The dual necessity of biofouling prevention and cleaning to avoid pertinent environmental and economicramifications iseminent.TheGEF-UNDP-IMOGloFoulingPartnershipsProjecthasnowlaunchedwithWOCasoneofthe lead implementersforengagingocean industryactionwithkeyorganizationsand leadershipcompanies.U.N.LawoftheSeaandtheBBNJAgreementPrivatesector input isurgentlyneededtoensuretheBBNJagreementwillbeadaptedtofutureeconomicactivities.Atthepresentstage,companiesareencouragedtoinvestresourcesinunderstandingtheimpactoftheagreementonbusinessplansandoperations,toidentifytheassociatedrisksandopportunities,andtosharetheirviewswiththeirgovernments,theactualnegotiatorsoftheagreement.The WOC has been developing the “BBNJ Business Coalition” as a means for coordinated industryinvolvement in theBBNJ process. Thiswill advance interaction both: a) among the sectors of the diverseoceanbusinesscommunityandb)betweentheprivatesectorandotherstakeholders.TheCoalitionwillseekto develop coordinated industry input to ensure that the BBNJ will be practical, implementable andengenderconstructiveoceanbusinesscommunityengagement in theconservationandsustainableuseofmarinelifeininternationalwaters.A2-pageWOCbriefingontheBBNJandimplicationsforoceanindustriescanbefoundhere.ResponsibleMarineMiningGrowing populations and clean energy development have continued to demand formetals andminerals.Duetothemanyuncertaintiesofdeepseamining,regulatorsareofteninfavoroftheprecautionary,or“nomining”,approach.Theindustryispushingforinnovationinriskminimizationthroughtechnology,financingandmarketanalysis.Despite the societal advantages of marine mining (relative to terrestrial mining) such as no socialdisplacementandnochildlabor,negativepublicperceptionsoftheindustrypersist.Itisimportanttonotethatregulatorsarenottheonlystakeholders–socialmedia,campaignersandNGOsallhavethepowertoinfluenceprojectassessments.

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Plastics/WasteRemovalfromOceanandIslandAreasWhiletheriseofconsumerismhasopenedopportunitiesfor industry,theprivatesectorandgovernmentsareacknowledging thatbybringingproducts likeplastics in, theyhavebecomepartof theproblem–andneedtobepartofthesolution–notjustbecauseitistherightthingtodo,butalsobecauseitmakesgoodcommercialsense.Forclean-upstobeofimpact,attentionmustbegiventothreesourceareassimultaneously:inlandwaters,coastalandislandareas,andtheopensea.Likewise,thepowerofprivate-publicpartnershipsneedstobebetterrealizedforthemutualandextensivebenefitstheybring.SMARTOcean-SMARTIndustriesandtheArcticTheArcticisoneofthefastestchangingregionsonEarth,withrapiddeclinesiniceextentresultinginrisingglobaltemperaturesaswellasincreasesinvesseltrafficfromarangeofdomains.EconomicdevelopmentintheArctichasbeenlargelydrivenbyitspetroleum,mineralandbiomarineresourcesaswellasitsopeningofshippingroutes.There remains, however, an inadequacy of data on climate patterns and sea ice interaction.Quality datacoverageismuchneededbybusinessandresearchcommunitiestobetterforecastenvironmentdynamics,inturnimprovingthesustainabilityandsafetyofoperations.TheWOChasbeenworkingasapartnerintheEU-fundedH2020EU-PolarNetandARICEprojectstoidentifykey industry stakeholders with operations in the Arctic Ocean, i.e. those who are able to deployinstrumentationorcollectenvironmentaldataintheregion,anddevelopthedialoguebetweenscienceandindustrybyimplementinganIndustryLiaisonPanel(ILP).OneBelt,OneRoad,OneOceanThedevelopmentofthe21stCenturyMaritimeSilkRoad(MSR)mustfocusonthreekeystrandsinordertorealizeitseconomicpotential:1)Newneeds–thetransformationofportsandcanalsandestablishmentof“informationports”;2)Newrealms–theArctic,financeandtourismservices,suchasRMBoffshorecenters,maritimebanks– fromtrade to finance;3)New thoughts– collaborativediscussionsanddevelopmentofmarineresources,thesustenanceofmaritimesecurity,andtheinnovationofmaritimeregulations.The aim to promote infrastructure development, institutional linkage and people connectivity for oceanindustriesdrawslinkagetotheSDGsandAgenda2030.However,itmaystillbetooearlytojudgewhethertheMSRwillbecomeatrueenablerfortheSDGs.Rather,effortsatthispointintimeshouldfocusongettingMSRplannersand implementers tobecomemoreengaged inexistingglobalgovernanceof theoceans, inorderforopportunitiesinsustainablebusinessoperationstomaterializeinthefuture.OceanBusinessActiononClimateChangeInfaceoftoday’sunprecedentedratesofplanetarychange,therecanbenomore“businessasusual”.Oncetemperaturesslippastthepointofnoreturn,theplanetwillreacha“stable”stateof“hothouse”.Theonlything that remains tobedone is to reduceemissionsas rapidlyaspossible,andat thesametimestart todeploymitigationmeasures(NETs,seaweedplantation,portresilience)atscale.Themagnitudeofrecentclimatethreatshasbeenincreasingportvulnerabilityandimpactingaccessroutesandterrestrialconnections,supplychains,energysuppliersandthirdpartiessuchasinsurers.With9/10oftheworld’stopports(intermsofcapacity)beinginAPAC,thecontinuedfunctionalityandgrowthofAsian

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portswillbecriticalforglobaleconomicdevelopment.SustainableAquacultureinCrowdedSeasWith increasingworldpopulationsandrisingseafoodconsumption, intensification istheonlywayforwardfortheglobalaquacultureindustry.Theprivatesectorandsciencecommunityhavebeenworkingonseveralfrontstodevelopthetechnologyrequiredforimplementationofsustainableproduction.Withtherapidrise indemandandproductionoffarmedfish(especially inAsia),responsiblemanagementwillbecrucialtominimizenegativeimpactsonlocalcommunities.TheRoleoftheOcean/MaritimeLegalCommunityThere is a real need for the legal community to engage in ocean sustainability issues, in view of recentenvironmentalcompliancemeasures(suchasonsulfuremissions,ballastwatermanagement,vesselspeeds)that are exerting increasing regulatory pressures on maritime industries. Notably, this requires legalpractitioners to move away from being “reactive” to being more “proactive” by becoming partners inbusinessdevelopmentstrategyandriskmanagement.Legal advisors have a mandate to point out legal, governance, compliance and strategic issues that arecomingupclients’way– includingonSDG14commitments. Ingeneral,clientsarereceptiveandengagedbecause they understand frompast experience thepotential risks of trends breaking up businessmodels(e.g.geopoliticsandcybersecurity).LNGasaMarineFuelCompared to itsmore polluting counterparts, LNG allows for up to 20% less CO2 (greenhouse gas), 99%reduction in SOx (respiratory/health), 80% reduction in NOx (ozone depletion) and 100% reduction inparticulates(carcinogen).Itisalsoprovingtobeanincreasinglycompetitivealternativefuel.NodoubtLNGdevelopmentwillplayasignificantroleinachievingIMO’sgoals.Atthesametime,blockchainsoftwareisbeingbroughtintotheindustrytofacilitateautomationofsourcing,procurementanddeliveryofbunkers,inturnreducingoperatingcostsandincreasingportcapacity.TheDigitalOcean,BigOceanDataandtheOceanCloudDatahasbecomeanassetinitself–thenewrawmaterialforbusinesses,providingmacroaswellasmicroapplicationstofacilitatetransparencyandinvestments.Theincreasingavailabilityofdataisopeningupnewopportunitiesinoceanspacethroughreducingcostsandincreasingcapacityandconnectivity.Dataisoneofthefewareasthatwecanexperimentwiththenotionoflimitlessresources.Whilealotofmarineenvironmentdata,andapplicationstousethesedata,havebeenmadeavailable,thenextstep is forstakeholderstocapitalizeonthisavailabilityanddrivepolicyandbusinessdecisions intherightdirectionforasustainablefuture.

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OceanInvestmentPlatformThepotentialofocean-centricinnovationspacetoimproveenvironmentaloutcomesisenormous,andwillbe achievable through collaboration with corporations, banks, foundations, sustainable impact and long-term thinking sovereign wealth and pension funds. Ultimately, private sector financing requires fromcomplexblueprojectsanelementofpipelinereplicabilityandscalability–totheextentthattheyservenotjustonebutmultiplereturnsintermsofsustainability.Environmentalimpacthasbecomeariskinfinanciers’lensof“riskandreturn”.ItisimportantthatinvestorstaketheESGparametersastepfurtherbymeasuring“additionality”intermsoftheSDGswheninvestinginsustainabilityprojects.TheWOC“OceanInvestmentPlatform”aimstoprovideaglobalstructureandprocesstobringtogethertheinvestment community and ocean industries providing technological solutions for ocean sustainabledevelopmentchallenges.

SOS2018Statistics

TheSOS2018wasverywellattended,withover250delegates from30different nationalities and representing all key ocean sectors comingtogether over the course of 2.5 days to identify sharedwork plans andsolutions to ocean sustainable development challenges. DelegateswereprimarilyC-SuiteexecutivesandseniorofficersfromtheOceanBusinessCommunity. Representatives of international organizations, governmentagencies and academic/research institutions were also in attendance.Notethat inthe“SectorRepresentation”chartbelow,MediaandOceanAmbassadorsarecategorizedas“Other–Non-industry”participants.

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ThankstoourSponsorsTheSustainableOceanSummit2018wasaClimateNeutralEventthankstoRightShip.EventemissionswillbeoffsetbyinvestinginaSouthPoleemissionsreductionproject.

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THECHALLENGETheoceanisaninter-connectedglobalecosystemsupportingawiderangeofuses.Maintainingahealthyoceanrequiresresponsiblestewardshipbyallusers.Concerns about the impacts of economic activity on ocean health from a growing range and level ofcommercialusesareontherise.Theseconcernsmay limit industryaccesstomarineareasandresources.OceanusersareincreasinglybeingheldaccountablebygovernmentsandNGOsforthestateoftheocean.Continuedoceanaccessandusewill increasinglyrequirethesocial licencetooperate–aboveandbeyondsimpleregulatorycompliance–andparticipationintheSustainableDevelopmentGoals.The best efforts by a single company or an entire sector will not be enough to address the cumulativeimpacts on the inter-connected marine ecosystem from growing use across the sectors. Companiesdependentontheoceancanachievebusinessvaluefromworkingwithotherstoaddresssharedchallengesregardingsustainabledevelopment,scienceandstewardship.WOC–OCEANBUSINESSALLIANCEFORSUSTAINABILITYTheWorldOcean Council is the international, cross-sectoral industry leadership alliance on “CorporateOceanResponsibility”.TheWOCbringstogetherleadershipcompaniesfromthediverseOceanBusinessCommunitytoachievethebusinessbenefitsofcross-sectoralleadershipandcollaborationonsustainability.TheWOCdevelopsglobal“platforms”toaddresscross-cuttingoceanbusinessandsustainabilitychallenges,e.g.oceanpolicyandgovernance,marineplanning,marinedebris,marinesound,marinemammalimpacts,waterpollution,datacollectionbyindustryvesselsandplatforms,sealevelriseandextremeeventimpacts,priorityregions(e.g.Arctic,IndianOcean),andinvestmentforoceansustainabledevelopment.THEINVITATIONTORESPONSIBLEOCEANCOMPANIESResponsible ocean companies are invited to join the growing number of organizations distinguishingthemselvesasleadersin“CorporateOceanResponsibility”throughtheWOC.In addition to the 75+ WOCMembers from the diverse Ocean Business Community, the WOC Networkincludes 35,000+ ocean industry stakeholders around theworld. TheWOC is recognized or accredited bynumerous U.N. agencies and other international organizations as the credible, global leadership body onoceanbusinessandsustainability.The WOC Sustainable Ocean Summit (SOS) – 2010 Belfast; 2013 Washington DC; 2015 Singapore; 2016Rotterdam; 2017 Halifax; 2018 Hong Kong; 2019 Paris – is acknowledged as the international businessconferenceonoceansustainabledevelopment,scienceandstewardship.

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