Desertification is the degradation of land leading to loss of biological productivity, as soil is unable to retain water and nutrients. Restoring the soil’s capability is one solution to combat desertification and water scarcity issues. With us from Stavanger, Ole Kristian Sivertsen, President and Group CEO of Desert Control, introduced participants to the company’s Norwegian innovation in climate-smart agriculture technology, LNC (liquid natural clay), and how it contributes to combat desertification, soil degradation and water scarcity. The company’s current projects are primarily in the Middle East and western United States.

In brief terms, LNC-treated soil has, as opposed to sandy soil; small particle sizes, a large surface area, and small pore space, leading the treated soil to significantly increase its water retention capacity. On average, according to The World Bank, agriculture accounts for 70% of all freshwater withdrawals globally. With a growing population, there is an acute need to limit water usage. Desert Control is Making Earth Green Again, and has made it their mission to “preserve the prosperity of life.” As Sivertsen said “soil is not dirt, it is grounds for living organisms” underlining the inherent qualities that lie in soil to solve global challenges in agriculture.

Following an introduction by Selmer Partner Øyvind Olimstad, Associates Tone Sørfonn Moe and Nora Eikenæs could attest to the complexity and rapid development of ESG and sustainability and related statutory requirements. Part of Selmer’s growing sustainability team, Tone and Nora expertly presented how companies can, to the extent that it is relevant to each company, approach the EU’s action plan for financing sustainable development, now included in the new Norwegian legislation “law on sustainable finance”, the European Commission’s proposed “Social Corporate Governance” directive and the Transparency Act, to name a few.

From a business standpoint, the different regulations combined will ultimately result in a more holistic perspective on ESG and sustainability and can be condensed to: Do good but also do no harm. Meaning, that even though a company receives a high sustainability rating on one of its initiatives, it must perform well on, and disclose all its relevant results to maintain its good standing. A common definition across borders will establish trust for what is considered sustainable for investment purposes. Although companies will need to allocate time and resources to comply, they will be rewarded if the markets work as intended.

ABS’ Georgios Plevrakis, joining virtually from Athens, explained how ABS, one of the world’s largest classification societies for shipping, marine and offshore assets, has pioneered work on mapping activities that will support the industry’s transition towards sustainable practices. Decarbonization is considered the greatest sustainability challenge of our generation, not only as it relates to shipping, but also other human activity. In the pursuit of a more sustainable industry, the company has established ABS Sustainability Centers around the globe, developing regional and localized skillsets to steward the sustainable agenda. Plevrakis presented sustainable shipping trends derived from COP26, with the overarching goal of net-zero by 2050, including agreements amongst the Cargo Owners for Zero Emission Vessels (CoZEV), and for the Clydebank Declaration and the Methane Pledge, illustrating a widely shared focus amongst stakeholders to engage on a sustainable path.

Plevrakis showed how ABS has analyzed predicted trade routes through 2050, forecasting growth for tankers, bulk carries, and containers, and how each will affect the evolution of varying emissions, cross-referencing with expected emerging technologies. Following a “base case” scenario as defined by ABS, the conclusion is that the use of low- and zero-carbon fuels will have significant effect, however, it will not be sufficient to reach targets set by International Maritime Organization (IMO). For the industry, the targets for 2050 are to reduce carbon intensity by 70% from 2008 values, and simultaneously reduce global greenhouse gas emissions by 50%. Incentives expediting sustainable development include IMO regulations, the European Union Emissions Trading System (EU ETS), local requirements and the Poseidon Principles, all operating in a complex compliance matrix. Assessing whether the current frameworks support the industry’s goal of carbon neutrality, Plevrakis was adamant that in addition to punitive regulations, incentivizing measures will make a positive impact.

DNV’s Tore Eliassen described how the energy transition is bringing unprecedented change for all industries in the lead up to 2030. A seasoned professional in the field of oil and gas, and most recently renewables and sustainability, Tore is, in sorts, in his own transition. He opened by affirming that individuals, corporations, and governments must act to reduce environmental impact; the very foundation of the energy shift.

His team at DNV sees that gas investments are robust and will continue to be the world’s primary energy supply for years ahead, but that the number of oil projects and portfolios are decreasing, opting instead for a focus on energy efficiency and investment in low-carbon infrastructure. Internally, this is represented by DNV’s merging of their Energy and Oil & Gas departments into Energy Systems.

Espen Høiby, a former airline captain and management executive for Scandinavian Airlines (SAS), has led OSM Aviation’s vast growth over the past seven years. The company provides aviation training and crew management services and was founded with the intent of disrupting traditional industry inefficiencies. OSM Aviation’s flexible model has enabled their clients to cut costs while increasing flexibility for employees – in other words, a more sustainable model focused on business longevity and employee satisfaction.

Contrary to general assumptions, the aviation industry overall accounts for approximately 2.5% of global carbon dioxide emissions. These emissions, however, must be actively addressed with efforts to lessen impacts. A new modus operandi has been “long overdue” for the industry – a sentiment that, along with the pandemic, has acted as a catalyst for technological advancements.

“This past year’s dramatic effect on airlines cannot be overstated,” Høiby acknowledged. “However, when the world does return to more regular traveling patterns, airlines will need to respond to customers – led by demography, technologies, and consumer behavior and expectations.” The answer lies in the emergence of electrification.

Forecasting the future of aviation, Høiby addressed environmental scrutiny and focus, aircraft electrification, new business models and urban mobility. OSM Aviation’s purchase of 60 electric planes from Colorado-based Bye Aerospace is one step towards revolutionizing training for pilots. With these types of battery-driven planes, operating costs are one fifth of fuel-driven planes, carbon emissions during flight are zero, and noise pollution is greatly reduced. “In 10 years, the way we move around will be completely different to what we see today.”

Gullberg, a former researcher at the Center for International Climate Research (CICERO), opened the session by describing how the importance of sustainability had evolved since the outbreak of the pandemic. Focused measures for sustainability, such as The United Nations (UN) Sustainable Development Goals and The European Green Deal, have laid the foundation for applied sustainability across industries. The focus on sustainability has not lessened since the onset of the pandemic, but has rather acted as a catalyst for accelerating existing trends that include digitalization and a sharp increase in sustainable investments. Despite unprecedented uncertainty, politicians, businesses, trade unions and policymakers have gathered in an alliance for green recovery, calling for progressive global climate policies.

Gullberg went on to describe how sustainability has become an integral part of strategies and processes in both business and politics. In addition, the scope of sustainability is broad, encompassing nature, biodiversity, resource management, and a circular economy. Social sustainability and environmental justice are also high on the agenda, particularly in Europe and the US.

Another trend Gullberg presented was that regulations pertaining to sustainability are becoming increasingly detailed and ambitious, and less predictable, leading to an increased risk for businesses. Regulatory processes can, however, offer significant opportunities to contribute and impact. Gullberg emphasizing, “The rules of tomorrow are written today.”