1. RSCM – the ship owner’s perspective – IMPA London 2013 | 1 The ship owner’s perspective Ulla E. Nielsen, Director, CSR, Dampskibsselskabet NORDEN A/S Kathrine Geisler Madsen, Manager CSR & Corporate Communication, J. Lauritzen A/S RESPONSIBLE SUPPLY CHAIN MANAGEMENT

2. RSCM – the ship owner’s perspective – IMPA London 2013 | 2 AGENDA  Presentation of NORDEN and J. Lauritzen  Background – why RSCM  by Ulla E. Nielsen, NORDEN  Process – real life scenario  by Kathrine Geisler Madsen, J. Lauritzen  Questions

3. RSCM – the ship owner’s perspective – IMPA London 2013 | 3 THE SHIPOWNERS BEHIND THE INITIATIVE Dampskibsselskabet NORDEN A/S J. Lauritzen A/S  A leading global tramp operator  One of the most modern fleets in our industry  Global network of offices and port captains  Asset light business model - active fleet can quickly be adjusted to demand and market conditions  Business driven approach to CSR  Owned by the Lauritzen Foundation  Operate and own a modern fleet  Strategically located overseas offices covering all time zones  Operations ranging from bulk carriers to offshore support vessels  Value and principles based approach to CSR Evt et Lauritzen foto her

4. RSCM – the ship owner’s perspective – IMPA London 2013 | 4 BACKGROUND – WHY RSCM  Regulations  UNGP  OECD  National requirements  Report on human rights  Background  Sphere of influence  First tier supplier  Challenging task  Collaboration J/L & NORDEN  Efficient  Common sense  Proper behaviour  Third Party on-board to lift the concept  IMPA

5. RSCM – the ship owner’s perspective – IMPA London 2013 | 5 BUSINESS AND HUMAN RIGHTS?  What is Human rights?  Translated  The human rights explained in a language developed for and by business  Common sense  Human –rights  Right to non-discrimination  Labour Rights  Right to safe and healthy working conditions  Environment  Manage emissions to air  Anti-Corruption  Not permitting the payment of bribes to business partners, government officials or workers

6. RSCM – the ship owner’s perspective – IMPA London 2013 | 6 STRATEGY  Next step  Approach our suppliers  IMPA ACT  Enter a dialog  Self assessment scheme  Code of Conduct  Register in the database  Process  UNGP 2011  Safe process  Natural next step  Focus area  RSCM vs. Environment  “Order in our own house”  Mapping all in-house processes  Transparency

7. RSCM – the ship owner’s perspective – IMPA London 2013 | 7 PROCESS – REAL LIFE SCENARIO  Our interaction process at a glance  Working closer with our suppliers SELECT Spend dependency and frequency INFORMING & ENGAGING PARTNERING & IMPLEMENTATION

8. RSCM – the ship owner’s perspective – IMPA London 2013 | 8 ORGANISATIONAL DEVELOPMENT  Commitment from top management gives enthusiasm  Internal awareness and understanding motivates  Training of key people/ purchasers ensures competence development  Knowledge sharing creates cohesion  Internal capacity development

9. RSCM – the ship owner’s perspective – IMPA London 2013 | 9 ENGAGING IN DIALOGUE SUPPLIER All of the rights in your Self Assessment Survey are not relevant for us SUPPLIER We are just a small supplier, we cannot have all kinds of systems in place SHIPOWNER They might not be – but your company could have a potential impact on rights never considered SHIPOWNER Perfect – our approach to RSCM will assist your commitment (prin. 1-6) SUPPLIER We have signed and support the UN’s Global Compact SHIPOWNER You are already doing a lot! More customers will demand this  your competitive advantage UNGP outline and operationalise how to respect human rights Policy commitment, due diligence, remediation All businesses shall respect all human rights – this is an opportunity for thorough risk assessment A systematic approach is more cost effective – and the system shall be relative to size, context etc.

10. RSCM – the ship owner’s perspective – IMPA London 2013 | 10 DEALING WITH DILEMMAS  Decision making matrix  Is it a crucial or non-crucial supplier?  Do we have leverage?  Suggested actions  Use our leverage to mitigate abuse and ensure access to remedy  Capacity development  Collaborate with other ship owners  Work with local or central government  End relationship ”Evt teksten fra Lauritzen – slide 9 her ?

11. RSCM – the ship owner’s perspective – IMPA London 2013 | 11 Questions? Ulla E. Nielsen, uen@ds-norden.com Kathrine Geisler Madsen, kge@j-l.com