Innovation

V. Group Oceanic has introduced several innovative business strategies to eliminate single-use plastics on board their vessels, which cause pollution and affect marine life. Josie Nablo, the Manila Senior Operations Manager for V. Group Oceanic, shared, "We manage more than 2000 vessels, and part of the crew's daily food budget is 1.5 liters of mineral water. Over the years, you can imagine the accumulated waste generated from the supply of these plastic water bottles on board."

The company actively seeks alternatives to non-essential single-use plastics (SUP) through its procurement solutions. It advocates that suppliers use reusable crates and big containers during provision deliveries, aiming to reduce waste generated from cartons and small plastic containers. Additionally, the company has initiated improved waste management by off-landing provision-related garbage for free in collaboration with selected port suppliers worldwide.

Josie expressed, "Another initiative we are doing is working with our suppliers to retrieve the waste products from their provision deliveries on board - free of charge. However, suppliers can only collect specific categories of provision-related garbage limited to certain strategic locations. For example, in Singapore, we ask suppliers to ensure the delivery of safely packed provisions on board and, at the same time, minimize the use of packing materials to reduce the product waste generated from these supplies. Conversely, in Brazil, they no longer use cartons but reusable plastic crate containers for provision deliveries."

To reinforce their commitment and ensure compliance with Environmental, Social, and Governance (ESG) and UN global goals, they've integrated this initiative into their procurement team's annual key performance indicators (KPIs). Oceanic also promotes safe water management and responsible consumption by offering durable water filtration systems to their clients. They've implemented this by installing water filtration units on their vessels and distributing reusable stainless-steel bottles to the crew. For older ships unsuitable for water filtration units, their procurement team will arrange to substitute single-use plastic water bottles with refillable jug containers from their global network of accredited suppliers.

Inspiration

Amidst the growing concern for environmental issues like global warming and climate change, the maritime industry is taking the lead in reducing carbon emissions and combating pollution by eliminating single-use plastics. This worldwide proactive stance inspired the senior management of V. Group Oceanic to participate and engage actively in this transformative movement. During the interview, Josie passionately shared her commitment to sustainability and how the company drives her motivation for change. She stated, "The company's support for green management and sustainability initiatives greatly impacted me. I truly feel the essence of this environmental action, realizing that it's not solely a task for top management but also involves our participation in the operations."

This vision of achieving zero carbon emissions and completely eradicating plastic waste in shipping operations has spurred V. Group, as a whole, to introduce environmental initiatives such as OceansFirst and V.ERDE. OceansFirst reflects the dedication to sustainable oceans, while V.ERDE concentrates on reducing vessel emissions and achieving decarbonization. As stated in V.Group's vision and goals, it pledged to embrace and advocate industry standards and exemplary practices within the shipping sector to position itself as a frontrunner in environmental stewardship for ship management, both on the sea and onshore.

The company's inspiration for sustainability and marine environment protection stems from its commitment to preserving natural resources and ecosystems while promoting responsible practices within the maritime industry. Josie also emphasized, "These business innovations and initiatives mutually benefit both V. Group and its clients. It fosters better partnerships while conveniently achieving our environmental goals."

Overall impact

The shipping industry, deeply connected to the ocean, holds great responsibility for maintaining clean waters and preserving marine ecosystems. V.Group, a significant player in the shipping industry with its expansive fleet of vessels, wields considerable influence with any action it takes. To date, they've eliminated approximately 5.8 million plastic bottles in operations through the company's environmental initiatives and business innovations. It proves that integrating sustainability in every company's procurement solution would make a valuable result. Additionally, since December 2019, V.Group has installed over 650 water units on board clients' vessels. They also distributed over 40,000 reusable stainless-steel bottles to the ship's crew and enrolled over 400 vessels in their comprehensive water solutions program. This initiative is ongoing, with efforts to implement it fleet-wide.

V. Group Oceanic has demonstrated a substantial commitment to this cause by embedding it within its organizational culture, starting from top-level management and cascading down throughout the company. However, it's essential to acknowledge that beyond the ecological contributions of V.Group's management and employees, the collaborative efforts and support from various stakeholders—such as the vessel's crew, suppliers, principals, and ship owners—have also played an essential role in the success of these initiatives. These efforts highlighted their dedication to reducing plastic waste and promoting sustainable practices within the maritime sector. Josie stressed, "These environmental goals shouldn't solely be the management's target but should also integrate across all organizational levels. I can say that this aspect is the highlight of this initiative and a significant factor contributing to its successful implementation."

Business benefit

While the proposed environmental solution and business innovation may initially incur costs, they still hold a business benefit as they offer a cost-effective strategy. This approach effectively reduces expenses related to supplying plastic water bottles, leading to increased profits and savings in the long run. Josie shared, "Aside from procurement protocols where we refrain from using single-use plastics on board, we also offer water filtration systems. From the management side, we are approaching principals or ship owners and giving an enticing offer where they can opt to pay for the unit on a staggered basis for two years. It can also be deducted from the crew mineral water budget monthly. In this way, we can shift from plastic water bottles to a more sustainable water supply without giving too much financial burden on the ship owners." From the client's standpoint, installing durable water filtration systems on board vessels is perceived as a considerable long-term investment. Additionally, it promotes sustainable consumption practices by encouraging less resource usage, aligning with environmentally conscious choices for the future.

With prevalent environmental concerns like climate change and carbon emissions caused by human activities, an increasing number of companies and organizations are placing greater emphasis on eco-friendly initiatives. The heightened awareness and focus on sustainability provide V. Group Oceanic with competitiveness in forging business alliances and attracting new clients. By harmonizing mutual aspirations in sustainability, V. Group Oceanic can position itself as an industry leader committed to eco-friendly practices, appealing to companies seeking environmentally conscious partners.

Social and environmental benefit

UNESCO estimates that each square mile of ocean contains approximately 46,000 pieces of floating plastic, causing the deaths of millions of marine mammals annually. Recognizing the urgency of minimizing plastic pollution, V. Group focuses on decreasing the usage of single-use plastics onboard. The company has embraced the single-use plastics policy introduced by the UK Chamber of Shipping, backed by well-trained fleet teams to enhance daily environmental practices onboard.

Josie mentioned, "While we are doing our best to supply provisions to our managed vessels, there is no guarantee that they will be able to bring back those wastes ashore. So, the company strengthened the communication with the ship, informing them that we no longer allow single-use plastics on board due to their harmful environmental effects. Of course, we experienced compliance resistance at first. Still, we are keen on achieving our objectives, which eventually came to fruition as more vessels supported our company initiative."

V.Group Oceanic's initiative to improve waste management contributes to cleaner environments and yields benefit for the natural ecosystem and communities dependent on these environments for their livelihoods. Furthermore, more sterile surroundings foster safer living conditions, minimizing the risk of diseases associated with environmental contamination. This comprehensive approach ensures a healthier ecological balance and encourages a safer and more sustainable environment for the local communities to thrive in. Josie stated, "Although integrating these environmental initiatives might entail upfront costs and require extra administrative effort, both for our company and our clients, their long-term positive environmental impact is immeasurable for us."

Interview

Josie Nablo, Senior Operations Manager