insight issue 1 june 2010

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insightThe Lloyds Register Group magazine Issue 1 June 2010

Climate change:

Thechallenge or business

Inside


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InsideIssue 1:Contents in full:02 Climate change08 Finding the right balance12 Recycle-friendly ship designs14 Sustainable and innovative17 ISO 14001 doesnt cost it pays18 The human factor in the bottom line20 The nuclear renaissance?22 Food safety, sustainability and security24 Power trade by tigers28 The shift to the East30 Celebrating 250 years of Lloyds Register34 News update

02Climate change:The challenge for business

A perspective on the issues for thetransportation and energy sectors

08Finding the right balanceStep change in technology

14Sustainable and innovativeColin Walton of Bombardier UK on achievingenvironment-friendly rail networks

18The human factorin the bottom lineWhat does people are your greatest assetmean for your business?

20The nuclear renaissance?The challenges and opportunities

in this ambitious sector

Insight is our magazine for decision makersworking in the marine, energy and transportationsectors. Care is taken to ensure that theinformation in Insight is accurate and up to date.However, we accept no responsibility forinaccuracies in or changes to such information.

Copyright Lloyds Register 2010.All rights reserved.

Front cover photograph by Phil Royal,Lloyds Register Group, London.

Lloyds Register works with businessesand organisations around the world toenhance the safety of life and property atsea, on land and in the air. We help ourclients face todays challenges and plan for

tomorrow and beyond.

The magazine is produced byGroup Communications, designed by35 Communications and printed byBeacon Press.

Editor: Kathy Davis

E [email protected] + 44 (0)20 7423 2654

www.lr.org

This publication is printed on Soporset premiumoffset. The inner pages are virgin wood fibre

sourced from Portugal, Spain, South Americaand Sweden, the cover is virgin wood fibresourced from Portugal. Pulp is bleached using anElemental Chlorine Free (ECF) process. Producedat a mill that is certified with the ISO 14001environmental management standard.

Cert no. SGS-COC-0620


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InsightJune 2010 1

WelcomeThis year, on our 250thanniversary, we areconsidering the uture asmuch as we are consideringthe past.Richard Sadler,


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2 June 2010 Insight

There is no doubt that the mixed and incomplete

messages coming rom regulators, markets, competitorsand stakeholders on how to address climate changemake investment decisions or business more

challenging and uncertain.

Nevertheless, many businesses are orging ahead with innovativeand collaborative ways to reduce their greenhouse gas emissions,despite little clear direction on global emissions targets emerging

rom the UN Framework Convention on Climate Change (UNFCCC)meeting in Copenhagen in December 2010 (COP 15).

Some sectors with no global regulatory bodies are seizing theopportunity to take more o a leadership role to make dicult

decisions, rather than waiting or a nal global agreement romthe regulators. They are designing and implementing energyeciency standards and emission reduction strategies that will

impact their activities around the globe.

This article looks at the climate change

challenge or business and at whatactions are being taken in the marine,

aviation and energy sectors.

Ultimate goal a low-carbon economyThe 100+ countries that have signed the Copenhagen Accordhave ormally acknowledged that global warming must be kept

below 2 Celsius above pre-industrial levels to avoid catastrophicclimate change.

To achieve this, scientists estimate that we need to reduce

global emissions o greenhouse gas by around 50% between2000 and 2050, says Anne-Marie Warris, Lloyds RegistersEnvironmental Advisor.

With China and developing countries expected to increaseemissions in this time period, the developed world will need

to make the deepest cuts some estimate by around 80%.

Based on the pledges made in the Copenhagen Accord so ar thistarget will not be achieved. Much more is required and business

has a major role to play.

Challenge to businessIn a speech in February 2010, Yvo de Boer, UNFCCC Executive

Secretary said it is no longer enough or business to askgovernments or clarity. He nished by noting that Enlightenedbusiness can and must oer solutions to these questions i it

wishes to benet itsel and the world in the inevitable lowemission economies o the uture.

I businesses want certainty and an assurance that they willnot be unairly penalised they will need to provide input to

the solutions.

But how can business have an eective infuence? One possibility

is the way British business, through the UK Emissions TradingGroup, successully developed the golden rules against whichto evaluate the suitability o any UK scheme to eectively

reduce industrial greenhouse gas emissions says Anne-Marie.The UK Emissions Trading Group hasconsistently demonstrated the benet

to both industry and government o

the ree exchange o inormation andsupport in developing practical and

eective reduction measures.

Business is also acing supply chain and stakeholders pressures.Examples o responses to this so ar include RightShipsdevelopment o an environmental and energy rating, the Carbon

War Rooms ocus on market-driven solutions and the variousemerging carbon ootprint standards.

Another challenge acing business and non-governmentalorganisations (NGOs) is human acceptance. Indeed global climate

change scepticism could have been the greatest barrier to successat Copenhagen says Ian Hamilton, Technical Director, HumanEngineering, part o the Lloyds Register Group. Beore

Copenhagens UNFCCC meeting in December 2009 a shit inpublic opinion was apparent, possibly driven by the economicdownturn. Data rom The Times indicated that only 41% o

people in Britain think that climate change is largely man-made,and even more worryingly, only a quarter o those surveyed think

it is a serious problem. Public opinion in the USA is similar. Ipeople see climate change as a myth, or even i they accept it butregard it as a natural change, they can argue that there is nothingto be done, says Ian.

Action on climate change

cannot wait until globalagreement has been reached.

Climatechange:The challenge for business


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InsightJune 2010 3

Businesses need to consider whether to lead or move in stepwith public opinion. When human acceptance swings from

cannot be bothered to this is real it will affect business risk.And that uncertainty presents challenges of getting productsand services right.

Taking action nowThe Copenhagen conference exposedthe immense difficulty in reaching globalwide agreements amongst countries withhighly divergent politics, economies andobjectives. The parties will continue to

meet throughout 2010 culminating inCOP 16 in Mexico in December 2010where expectations, understandably,will be lower but still with the intentionof achieving a lasting agreement.

Even if COP 16 comes to an agreement there will still be aconsiderable period of time before governments turn them intodomestic and international policies that have direct impact onconsumers and business says Anne-Marie. The challenge is well

illustrated by developments in the USA. Ivor John, Senior VicePresident of Climate Change Services at RMA, a member of theLloyds Register Group, commented: There is action in the UnitedStates, but it is fractured and inconsistent. It is this unintendedconsequence of failed federal leadership that is having an adverse

affect on the competitiveness of our businesses that are tryingtheir best to take action in the absence of a well defined,

consistent playing field here in the US. Elsewhere around theworld, China has been very public about its ambitions to becomethe birth place of low carbon technologies.

It is unwise for business to sit back andwait for international agreement beforetaking action.

Maritime industry moving forwardThe International Maritime Organization

(IMO) is the United Nation special agencyresponsible for regulating the globalshipping industry. It brings togethermember states (governments) and othersrepresenting industry bodies and NGOsto develop regulations and rules.

The IMO, through its Marine Environmental Protection Committee,has worked on greenhouse gas issues since 1997. In March 2010 itagreed to mandate technical and operational measures to increase

the energy efficiency of new ships under (MARPOL) Annex VI.Adoption of the necessary amendment is expected to occur in2011. Agreement was also reached on how to move forward inrelation to market based measures which, if pursued, could setan emissions target for global shipping.

The uncertainty around uturedevelopments in the climate changearena has not diminished but hasactually increased and unco-ordinated

climate change policies will createragmented regulatory rameworksand increased costs.Anne-Marie Warris

The shipping industryis keen or the IMO todemonstrate that it can

eectively deal with themaritime industrys climate

change challenges.


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The energy sector, the largest globalemitter, believes that mandatoryemission targets would establish thelong-term certainty and airness neededto minimise the risks o investing in

cleaner energy technologies.

4 June 2010 Insight


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After the negative impact of the UNFCCC Copenhagen meeting itwas positive to see successful negotiations on a global-scale, saysAnne-Marie. The IMO demonstrated international leadership and

sent a clear signal to the UNFCCC that they can, and will, deal withthe climate change challenge related to international shipping.

Aviation industry targeting emissionsThe global aviation industry is driving forward targets and energyefficiency improvements.

The International Aviation Trade Association (IATA) the globalassociation for the airline industry has committed its members tocarbon neutral growth with a 50% net reduction in carbon dioxideemissions from 2005 levels by 2050.

They are now working with theInternational Civil Aviation Organization(the airlines UN equivalent to the IMO)to implement key actions includingfully quantifying aviation emissions,co-ordinating economic measures ona global scale and ensuring access toglobal carbon markets. While IATAwould have liked to see global targetsfor aviation set at the Copenhagenconference they consider the Copenhagen Accord asa step forward and will continue to pursue their goals.

Aviation has already seen the advent of regional regulationas typified by Europeans Unions Emission Trading Scheme(EU ETS) covering flights in and out of EU air space as of 2012.

Madlen King, LRQAs Global Head of Climate Change comments:The inclusion of the aviation industry into Phase II of the EU ETS

provides the global carbon markets with the confidence that airlineemissions are being addressed in a transparent manner.

Energy sector responding to uncertaintyThe energy sector, the largest global emitter, believes thatmandatory emission targets would establish the long-termcertainty and fairness needed to minimise the risks of investingin cleaner energy technologies. Uncertainty over targets, unstablecarbon prices and a lack of a global regulatory regime for theenergy sector means that companies are delaying decisions on

some long-term investments.

Despite these issues, energy companies are responding tosocietys demands and supporting governments aiming to buildthe energy systems of the future says Sean Cuthbert, EnergySustainability Advisor, Lloyds Register. From the Desertec

Industrial Initiative1 to the US$200 billion investments in wind,solar, biomass, marine, and geothermal energies expected in 2010,energy companies are creating business streams and research

groups dedicated to delivering energy from sources other than theburning of coal, oil, and natural gas.

However, the energy sector recognises that the transition from acradle-to-grave approach to energy supply to one that embodiesthe cradle-to-cradle approach will require the mobilisation of allaspects of society on a scale similar to that experienced duringWorld War II.

Investments in bridging technologies such as CO2 captureand storage and advanced Generation III nuclear reactors are

also under way to deal with thetransitional period.

The way aheadThe three legged stool of the futureincludes business, government andstakeholders says Anne-Marie.

One leg relates to businesses whichare forging ahead with understanding

and mitigating their greenhousegas emission impact. They need to

continue to show leadership and provide the solutions to themitigation challenges. Another leg relates to governments whichneed to continue to build on the co-operation and consensusthey demonstrated at IMO in March 2010 and ensure we getan international agreement so avoiding the consequences offragmented regulation and hence increased costs. And the thirdleg relates to the influence and action that stakeholders, be theyNGO or individual, can bring to ensure the achievement of the2 Celsius target in the Copenhagen Accord.

Will we get a balanced three legged stool I am optimisticbut it will take time says Anne-Marie.

I businesses want certaintyand an assurance that they

will not be unairly penalisedthey will need to provide

input to the solutions.

Lloyds Register continues to monitor, communicate andactively influence developments in relation to climate changeopportunities and challenges for the industry segmentswe serve.

E [email protected]

1 The DII is a $700 billion venture to build solar and wind power generation assetsthroughout North Africa and the Middle East and connect those generating assetsto a smart grid transmission system supplying all of Europe.


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6 June 2010 Insight

my

We asked two leading figures in the aviation andshipping industries for their view on the aftermath

of COP 15 and the part their industries and businessesshould play in the climate change challenge.

I have never duckedaway rom the actthat aviation is part

o the climate changeproblem and that weneed to be part o thesolution.

Tony Tyler


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InsightJune 2010 7

view

The lack o a top-

level agreement atCOP 15 has led theglobal industry to apoint o indecisionand leaves theindustry in a

quandary. Alastair Fischbacher is the General


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T

Step changein technologyThe shipping industry is acingthe sustainability challenge: howcan shipping fnd the right balance

between the interests and needso business, society and theenvironment?

By Nicholas Brown, Lloyds Registers Marine

Communications Manager

8 June 2010 Insight

Finding the right balance


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Ready or nuclear-powered ships

50 Years of Victory

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10 June 2010 Insight

Powered by the wind

The shipping environmental charity, Greenwave,

has called in aerodynamics and hydrodynamicsexperts to look at ways to deliver substantialreductions on emissions. They backed thedevelopment of a wind engine, a conceptbased on the Flettner rotor, a spinning rotorfitted to a ship that successfully sailed the Atlanticin 1926.

Its estimated that wind engines could reduce greenhouse gasemissions and other harmful exhaust emissions, such as nitrogenoxides (NOx) and sulphur oxides (SOx), by an average of about13% per ship per year which could make it the technology thatdelivers the most savings within this industry.

The initial tests at Auckland University in New Zealand, showedthe thrust developed by a Flettner rotor were 810 times morethan developed by sails of equal surface area. Tests in the UKusing a 25:1 model vessel indicated that wind-assisted ship

propulsion can produce significant fuel and emissions savingsin favourable winds. The wind engines were also successful inmanoeuvring and crash stopping the vessel.

Based on these impressive results Greenwave decided to builda full-scale rotor. With Lloyds Register providing technicalassistance and expertise, a prototype rotor 17 metres high and2.3 metres diameter was constructed and raised on a site providedby the Port of Blyth in NE England. The strong winds there wereideal and the test results were slightly better than the results

carried out in the twisted wind tunnel facilities in New Zealand.The process of manufacturing and assembling the windengine was an important learning curve and the next stagewill be to develop and construct two improved type windengines, which are to be installed on a sea-going ship, for testsin actual sea conditions.

Samsung HeavyIndustries

target emissionsSamsung HeavyIndustries (SHI)is addressing theenvironmentalchallenges facing theshipping industry.

SHI has set short, medium and long-term targets to reduceemissions from the Samsung-built Eco-Vision ships, saysCH Park, SHI Executive Vice President. Samsungs goal,by 2030, is to reach a target of 7090 for all Samsung-built ships achieving a 70% reduction in CO2 and a 90% reduction inNOx, SOx and particulate matter emissions. Short and medium-term targets have also been set of 3080 (-30%/-80%) by 2015and by 2020, 5090 (-50%/-90%).

In the long term these dramatic improvements could be realised

by moving from conventional fuel oil to the use of hydrogen fuelcells. In the short term savings would be achieved by creatingmore efficient hull and propulsor designs.

Samsung built its first ship in 1979. It is now one of the biggestshipbuilders in the world. In over 30 years it has faced manychallenges but none so significant, CH Park says, than thechallenge of building more environmentally friendly, moreefficient ships.

Our targets are ambitious because they have to be. Like asprinter we can only start slowly. While the sprinter moves offthe starting blocks his head can see where he is going but he isstill moving slowly. We are at this early stage soon, I hope, aswell as sharing our vision you will also be able to see us movingquickly. We are seeing demand for more specialised ship types,new trades, new operating parameters such as very cold regions,and so less standardisation.

New techniques of construction will come into play as well says

CH Park. The potential for composite materials such as sandwichplate technology is being explored for application in newconstruction. Glues could be used in some cases rather thanwelding in ship accommodation blocks, for instance.

While the energy used in making a ship is substantial, Samsunghas found that 95% of the carbon emissions of a ships lifecycle from construction to end-of-life demolition is from itsoperational life. Accordingly, Samsung is focused on findingoperational efficiencies. Our goal is to focus on greenhouse

gases emitted during operations but we are also looking at thoseemitted during construction while we are looking at the wholepicture, we need to work in the areas where we can make themost impact.

Greenwave is a UK-registered charity that exists to remindthe shipping industry of its environmental obligations and tofind practical, meaningful and affordable ways to meet them.

It achieves its objectives by funding research and developmentof emission reduction technologies to a fully developedand sea-trialled stage, independently verified and typeapproved by Lloyds Register. www.greenwave.org.uk


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InsightJune 2010 11

Cleaner air and more oil in the tank

Hans Richard Hansen, Teekays Vice President, TechnologyDevelopment

2

Navion Hispania

Better management o VOC acrossthe global crude oil supply chaincould make a big dierence eveni much simpler and cheapermeans are employed.


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Recycle-riendlyship designs

Tom Boardley, Lloyds Registers MarineDirector, addresses the uture o shiprecycling, talking about research and the

uture o ship design



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O

ne day recycling-friendly shipdesigns will become part ofthe shipping industry and will

contribute to increased levelsof safety and efficiency in ship recycling.

Looking at the percentages of materialsrecycled in other industries the good newsis that the shipping industry is well ahead,compared with the automotive and aviationsectors, re-using some 9598% of a shipby weight.

But the bad news is that even if ship

recycling has been efficient in terms ofproviding a ready supply of steel andother metals for re-use, there has beena cost in terms of lives lost and localenvironmental impact.

Cutting apart big steel structures is acomplex and hazardous business. Andeven though a high proportion by weightof the ships structure is re-usable, there are

significant amounts of plastics and othermaterials that should be handled carefullyand appropriately. Although hazardousmaterials such as asbestos are alreadyprohibited by previous convention, andthe new Ship Recycling (Hong Kong)Convention will require that all new shipshave onboard an Inventory of HazardousMaterials to assist with their handling

during decommissioning, there is norequirement to design a ship so thatlifecycle safety and environmental costsare considered.

A minority of owners are now seekinggreater control over the conditions underwhich their ships are demolished and thehandling and disposal of non-recyclablematerials. And there will be some now who

will start to consider the full environmentalimpact, and cost, of building, operating andrecycling ships.

Lloyds Registers Strategic Research Groupis carrying out work on design for recycling.

The group is looking at futuristictechnologies and scenarios as they applyto shipping. Although the research is in

its early stages, there is no doubt that newapproaches to ship designs could help makeship recycling safer and cleaner.

A major challenge is to balance thepossibility of reducing one risk against thatof increasing another. One of the mostdifficult families of materials to be dealtwith during demolition is that of the plasticcoatings on electrical wires. Much of the

problem with the disposal of thesematerials is that their design is intendedto protect against the risk of fire. How westill protect against fire risk while usingmaterials that are easier to deal with at theend-of-life stage is one of many questionsthat need addressing.

Work at the design and construction stagesis able to lead to ships that may be broken

up and their constituent materials and partsre-used in greater safety and with lessenvironmental impact. But one question, asever, is who is going to pay for this and atwhat stage in a ships lifecycle. Also, howdo we ensure net safety and environmentalbenefits accrue so that the overall shipdesign lifecycle really is more sustainable?

The shipping industry is not immune from

wider societal and political pressures as wehave seen in the last year with dramaticgrowth in interest in environmental issuesand new ship designs.

In a world of growing demand and withthe need to use energy intelligently andcost-effectively, we need to become betterat re-using materials. We need to becomebetter at understanding where the costs

are in the process of designing, building,operating and recycling ships. Byrecognising the eventual certainty thatevery ship will need to be demolished andrecycled at the building stage the processwill become safer.

E [email protected]

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The rail market is continuing to strivetowards an environment-riendly network

Sustainable &

Innovative



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S

2

We cant sit back and say

we have a rail marketthats environment-riendlyand leave it at that. We

have to do more.

6 20 0 h


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It is true that European standards andacceptance processes are complex but weare able to innovate successully within

the bounds o these processes

Barrie Clement

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ISO 14001 doesnt cost it paysCertification to ISO 14001 can help a company to deliversubstantial payback as the experience of ALcontrol demonstrates.

ALcontrol provides clients with testing and analytical services

for soil, water, food, oil, and asbestos to help them demonstratecompliance with regulations and achieve their health, safetyand environmental goals. A key feature is providing laboratoryresults that give clients confidence to act. As a supplier ofsuch services, it is vital for ALcontrol to operate an effectiveenvironmental management system. Certification tointernationally accepted standards is one of the ways inwhich this confidence can be delivered.

ALcontrol first implemented its environmental management

system in 2003 and has worked with the business assuranceprovider, Lloyds Register Quality Assurance (LRQA), ever since.The process of achieving certification to ISO 14001 across allof its sites was designed to meet stakeholder needs, helpcomply with regulations, improve environmental managementand improve efficiency and reduce costs.

Improving efficiency reducing costsRecycling and waste reduction have become key elementsof the management system. David Doherty, health, safety and

environmental manager at ALcontrol Laboratories, observes:I estimate cost savings from waste disposal amount to over50,000 per year. The Hawarden site has demonstrated a40% reduction in liquid waste for incineration and theRotherham site has seen a 30% increase in recycling,comparing 2009 with 2008.

Using ISO 14001 ALcontrol has sought to minimise wastevolumes through reducing packaging. For example, whenpossible, deliveries are received on pallets rather than individual

boxes and every effort is made to re-use or recycle materials.In addition, the deployment of compactors and balers hasresulted in up to 50% of waste being diverted from landfillon some sites, with an associated reduction in waste costs.

A number of initiatives have been introduced to reduce energy.Examples include a traffic light system enabling staff to identifywhich electrical equipment can be turned off and extractionsystems are only operated when needed. These measures,combined with good servicing schedules and staff awareness

of energy usage, saw a reduction in ALcontrols energyconsumption by 17% for 2009 in comparison with 2007.This equates to over 1.5 million kWh saved over the past twoyears which is a cost saving of over 100,000.

Meeting regulatory and stakeholder needs

The environmental management system ensures that ALcontrolcomplies with environmental regulations such as dischargeconsents and avoids any bad publicity and costs that could beassociated with failure. It also provides stakeholders withconfidence that every environmental aspect of the businessis being managed effectively. The system is also endorsedby ALcontrols employees with a survey demonstrating anexpectation that the company should be operating such assystem as a supplier of environmental services.

Business benefitsSimon Turner, commercial director for ALcontrols environmentalbusiness in the UK and Ireland, says: ISO 14001 certificationprovides commercial benefits in two distinct ways. Firstly, itprovides us with competitive advantage and is a specificrequirement in many of the bids that we make to localauthorities, waste contractors, environmental consultanciesand engineering contractors. Furthermore, we are part ofthe supply chain, so the certificate enables our customers todemonstrate compliance with some of their own environmental

objectives. The second benefit of ISO 14001 stems fromimproved efficiency process-driven cost reduction in areassuch as energy and waste help the business to remain ascompetitive as possible, which is particularly important in thecurrent economic climate.

During the seven years that ALcontrol and LRQA have workedtogether, the relationship has developed as Neil Whitfield,ALcontrols environment officer, observes: LRQA has helped usto improve the operational performance of the whole business.

The knowledge and experience of the LRQA assessors, coupledwith the understanding of our business and the marketsthat we serve, has helped to ensure that environmentalimprovements are in line with the needs of the business.

ALcontrol is now in the process of furthering its original goalof one comprehensive environmental management systemcertificate. Working towards certification at each individual site,the company believes that this will deliver additional significantsavings and efficiencies at each location, as well as for the

organisation as a whole.

E [email protected]

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The human actorin the bottom lineBy W Ian Hamilton, Technical Director, Human Engineering Ltd, Lloyds Register Group

The people in your organisation are the key to its success people are your

greatest asset is a well repeated adage. But have you ever really thought why thatis true? Or what practical implications it has or your actions as an executive?

2

3

A

1

W Ian Hamilton

E@

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People, processes and technology in practice

partners and suppliers to help ensure that the emerging



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0 Ju e s g t

The race to build

Extending the lifecycle

undergoing modernisation many plants

The nuclear ren

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g

aissance?

Trends, challenges and opportunities

Jerzy Grynblat

E@



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A supply chain issue

There are not many things that everyonemust have, but ood is one o them.

Food saety,sustainability

and security

In fact, Cor feels that food does not really have a supply chain at

all. Rather it has a very complex supply network. Food is a globalindustry, and with an increase in the globalisation of supplies,comes an increase in both risk and in the complexity of theprocesses needed to manage risk effectively, especially as levelsof food safety vary from country to country.

A problem in one product in one place can have repercussionsin many others. For example, there was a salmonella scare in theUS last year about peanut butter. But peanut butter is not onlya product in its own right. It is used as an ingredient in very

many other products. The risks are widespread and they arealso very high.

Food almost certainly has the most complex supply chain

of all industries, according to Cor Groenveld, the foodservices Global Product Manager of Lloyds RegisterQuality Assurance.

Simple cheeses, for example, can have up to 25 ingredients,says Cor, and a pizza might have more than 100. Theseingredients will have been sourced from suppliers located inmany different countries, increasing the size of the risk thatmanufacturers, retailers and consumers face.

If that were not complex enough, the food supply chainincludes a myriad of non-food but essential serviceproviders: from suppliers of pesticides and packaging, toshipping and refrigeration.

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Impact of food scares

Managing the risks

The corporate social responsibility factor

Food scares aect the

whole market, so it isbetter i companieswork together and

they oten do.

Cor Groenveld

management systems standard and

E@



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To meet its goals, India will need totriple its primary energy suppliesand increase its electricity-generating

capacity to 800 GWT by 2030, a riseo some 540%.

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T

Sharing power

K Swaminathan, Lloyds Register Asias Energy Sino-India BusinessManager talks to Russell Barling about the power trade between thetiger economies o China and India.

trade by tigersPower



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A passage for Indias power needs

So much at stake

K Swaminathan

E@

Russell Barling

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Chinese companies are building $7bn opower plant equipment or customers inIndia, in a business that is underpinninggrowing trade between Asias secondand third largest economies.



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shitThe

Eastto the

Fuel and chemical production is moving to the East at speed.The magnitude o the change is clear to Wijnand Moonen,Lloyds Registers downstream market sector leader, whosupports many clients in the refning and petrochemicalbusiness globally.

What is the markets current shape?

Is there less investment than previously?

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Why is business moving to the East?

What factors have contributed to the speed of this shift?

What is the outlook for the US and western Europe?

How can the industry in these regions continueto prosper?

Can better asset management have a significantenough impact?

What makes asset management world-class?

Wijnand MoonenRegister in January 2008 and is

E@



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Celebrating 250 yearso Lloyds Register

Lloyds Register is a remarkable organisation.Few bodies last as long, remain as consistentlysuccessul or sustain their reputation over

such a time span. Why has it lasted 250 years?By Nigel Watson, historian

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I

Lusitania and the Mauretania to the Queen Mary 2Queen Victoria



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Today the work o LloydsRegister touches many aspects oour daily lives, rom the ships onwhich we rely to sustain world

trade to the nuclear power plantsgenerating energy or our homes

and workplaces.

Nigel Watson

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Lloyds Register employees are helping their localcommunitiesThis year we invited our employees around the world to takepart in a special LR250 commemorative campaign. Teams wereencouraged to submit ideas for projects that would involve themdirectly in work to benefit their local community.

The 45 winning projects have been given funding and theemployees are able to contribute several hours a week over thenine-month period of the campaign. The projects started in

January and at the end the teams will have the chance to winadditional funding to support the continuation of their projector support for their community.

The response to the LR250 campaign was three times whatwe anticipated, making it clear how passionate our employeesare about reaching out to people in need said Richard Sadler,Chief Executive. They will be making a real difference all overthe world with their creativity and special talents.

Our employees show their dedication and commitment to what

we stand for. Our strapline, Life Matters says it all. said Richard.

Charitable activities are at the heart of the life of Lloyds Register;from the first recorded donations to the Merchant SeamansOrphan Asylum and the Seamans Floating Hospital in 1839,charity involvement has continued to grow and has led to thecreation of The Lloyds Register Educational Trust and otheractivities. This commitment is now echoed in the overwhelmingresponse by employees to the LR250 campaign.

Projects around the worldOur employees LR250 projects range from building new homesfor low-income families in Houston to providing safe and cleandrinking water for 400 students at a primary school inTiruchirappalli, India.

The Power Child Campus, South Africa, empowers children andyoung people by offering them a safe house and daily workshops.The LR250 team from Germany has been raising sponsorship andhas spent a substantial amount of their leave time to work at the

project and help it realise its mission of preventing child abuse andbuilding a community in which children are valued and respected.

In Cartagena de Indias, Colombia, the Values for Life projectis teaching poor and vulnerable children important life valuesthrough activities and soccer training. Many of the children aredisadvantaged and at potential risk because they are alone or donot attend school. The project aims to teach good educationalprinciples and physical health. So far the LR250 team from theCartagena office has been busy getting the project location

ready and rebuilding a micro-soccer field.It is estimated that 40% of the forests in the Kanagawa Prefecturearea, where the Yokohama office is located, have deteriorated tothe extent that landslides are now a common occurrence. Anotherforest, in Tochigi Prefecture, has been severely damaged bysulphur dioxide emissions from several decades of local mining.The Yokohama Green project is promoting and supportingenvironmental preservation by joining local tree-planting eventsorganised by non-profit organisations dedicated to those goals.

These and the many other projects around the world go to showthat Lloyds Register employees are doing something that mattersfor their local communities. www.lr250.org

Putting something back to celebrate 250 years



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Newsupdate

E energy@

E@

Carbon footprint first

for Maxinest tray

New deal with

Chinas largest nuclearenergy developer

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Sea Voyagersimportant mission in HaitiSea Voyager

Sea Voyagerneeded

Sea Voyager

E@


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Greek marine sector benefits from The LRET

Lloyds Registers independent charityfoundation, The Lloyds RegisterEducational Trust (The LRET) is veryactive in Greece, funding pre-universityeducation, university education anda major marine research programme.Funding committed over recent years

now amounts to nearly 2 million.Working with the National Technical University ofAthens (NTUA), The LRET provides undergraduate andpostgraduate scholarships in naval architecture and/ormarine engineering. Exceptional students are beinghelped to further their maritime studies before takingup a career in shipping. The LRET has also very recentlyagreed to fund a research programme at NTUA overthe next five years into shipping emissions.

The charity has worked with the Union of GreekShipowners (UGS) since 2004 to grant an annualpostgraduate scholarship at Masters level for studies

in maritime-related sectors. The scholarship is awardedto Greek nationals for studies in internationallyrecognised universities anywhere in the world.

The LRET supports the work of HELMEPA (HellenicMarine Environment Protection Association). An extra1,000 children will be able to take part in the HELMEPAJunior programme each year, promoting marineenvironmental awareness in children from five to 13years, due to funding from The LRET. The charity has

also supported an extension of HELMEPA Junior to theHELMEPA Cadets, a scheme aimed at young peoplebetween 13 and 30 years old.

Michael Franklin, The LRET Director, said: The LloydsRegister Educational Trust is extending its supportthroughout the world in a number of important areas.We want to encourage the study and development ofscience, engineering and technology to help solve themany challenges the world faces, such as climate change

and the huge increase in energy demand. Our work inGreece is part of this effort for wide public benefit.

E [email protected]

Banedanmark has appointed Lloyds Register to provide independentsafety assessment and Notified Body (Interoperability Directive) (NoBo)services as part of the approval process for the 2.4 billion renewalof Denmarks signalling systems. The value of the NoBo and genericsafety assessor work is estimated to be DKK 48 million (6.5 million).

The safety approval of the new signals is an essential task whichin the end will make sure that the new signalling programme is

implemented on time, said Morten Sndergaard, ProgrammeDirector of the Signalling Programme.

This contract was won against strong international competition.It is a significant achievement and puts us at the forefront of EuropeanRail Traffic Management System assurance projects, bringing togetherour global experience and knowledge from other major infrastructureassurance projects that we have undertaken recently, such as theDubai Metro and the Taiwan High Speed Railway, said John Stansfeld,Lloyds Registers Director of Transportation.

E [email protected]

Safety role in Danish

signalling renewal

Driving sustainability


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Driving sustainability

for a safer world.

Learn more about our global network go to www.lr.org

www.lr.org/entities

insight issue 1 june 2010

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