ESG SERVICES
Welcome to Velticon’s ESG reporting services! As a leading consulting firm, we specialize in assisting organizations to navigate the complex landscape of Environmental, Social, and Governance (ESG) reporting. Our ESG sustainability report provides a comprehensive overview of a company’s performance in areas related to the environment, social responsibility, and corporate governance. Our team of experienced professionals is dedicated to helping your business effectively measure, manage, and communicate its sustainability performance.
We develop ESG -AI Econometric Models and databases as follows:
- Mar2Invest (SaaS)-ESG AI Econometrics- ESG scoring Algorithms for b2b clients, on demand. (Asset managers, Wealth managers, Banks, Organizations, Consumer Platforms) with a focus on Land Energy Units and Shipping)
- Mar2Invest (SaaS)-ESG AI Statistical Model- ESG scoring Algorithms for Educational Use Cases (Universities, Labs, Research Institutions, Post Doc Researchers and students), on demand
Sustainability reporting is not just about compliance but also demonstrating transparency, accountability, and a commitment to positive impacts on society and the environment. Velticon’s role is to support our clients in this journey and help them tell their sustainability stories effectively.
ESG reporting has emerged as a crucial element in today’s business environment. Investors, stakeholders, and consumers increasingly demand transparency and accountability regarding a company’s environmental and social impact, as well as its governance practices. ESG reporting enables organizations to showcase their commitment to sustainability, identify risks, seize opportunities, and drive long-term value creation.
Performance indicators for energy units are metrics used to assess the efficiency, effectiveness, and overall performance of energy-related systems, processes, or projects. These indicators help organizations, governments, and individuals track their energy usage, identify areas for improvement, and make informed decisions to optimize energy consumption and reduce costs.
Here are some common performance indicators for energy units:
Energy Efficiency:
1. Energy Efficiency Ratio (EER) = Cooling Output (BTU) / Energy Input (Watt-hours)
2. Seasonal Energy Efficiency Ratio (SEER) = Cooling Output (BTU) / Total Energy Input over the Cooling Season (Watt-hours)
Energy Intensity:
3. Energy Intensity = Total Energy Consumed (kWh) / Total Production Output (unit-dependent)
Specific Energy Consumption:
4. Specific Energy Consumption = Total Energy Consumed (kWh) / Total Floor Area (square meters or square feet)
Energy Utilization Index (EUI):
5. EUI = Total Energy Consumed (kWh) / Total Building Area (square meters or square feet)
Energy Cost Index (ECI):
6. ECI = Total Energy Cost (currency) / Total Production Output (unit-dependent)
Energy Performance Index (EnPI):
7. EnPI = (Actual Energy Consumption – Baseline Energy Consumption) / Baseline Energy Consumption
Renewable Energy Penetration:
8. Renewable Energy Penetration = (Renewable Energy Produced or Consumed / Total Energy Consumed) * 100
Carbon Intensity:
9. Carbon Intensity = Total Carbon Emissions (CO2 equivalent) / Total Energy Consumed (kWh or other units)
Load Factor:
10. Load Factor = Average Energy Consumption (kWh) / Maximum Energy Demand (kW) * 100
11. Power Usage Effectiveness (PUE) – Primarily used in data centers:
12. PUE = Total Facility Energy Consumption / IT Equipment Energy Consumption
It’s important to note that the specific calculation methods may vary depending on the context and industry. Mar2Invest algorithms use consistent units of measurement and consider any relevant factors specific to your situation through regression models. Additionally, some indicators may require historical data or comparison with a baseline for accurate assessment. Regularly monitoring and analyzing these performance indicators can provide valuable insights to optimize energy usage and drive sustainability efforts.
At Velticon, we understand that ESG reporting goes beyond simple compliance. Our report will provide a transparent overview of the Company’s ESG initiatives, achievements, and future goals, aligning with international ESG reporting frameworks and industry best practices. We believe in crafting comprehensive and meaningful reports that reflect the unique identity and aspirations of your organization. All industries that produce CO₂ are seeking advice on ways to reduce the carbon dioxide (CO₂) emitted during their production process.
Beyond the above classic approach, at Velticon we use an organization’s performance and ESG indicators as financing tools and upgraded cash inflow strategy. This means easier access to capital, an incentive for Initial Public Offerings (IPOs) through green bonds with enticing coupons for buyers, visibility of a high return on investment – an incentive for rewarding investment strategy, high added value and an option for participation in clusters and lobbies.
Our tailored approach to reporting on ESG sustainability frameworks and metrics includes the following key steps:
1. Initial Assessment
2. Data Collection and Analysis
3. Carbon footprint calculation (Scope I, II and III)
4. CII Calculation
5. Reporting Framework, Materiality Analysis and Strategy Development
6. Recommendations and Roadmap
The baseline of our methodology is understanding the frameworks. Next, we access clients’ needs. We assess current production processes and suggest efficiency improvements that will lead to a reduction in CO₂ emissions. (report). Next is the collection and analysis of relevant data across various ESG indicators. (average 67 Performance Indicators to be advised on Excel report). Then comes Gap Analysis following the development and implementation of mechanisms for measuring, reporting, and accrediting the results of your efforts to achieve sustainable goals. We measure KPIs in practice with Mar2Invest software. The software is designed for each client individually and involves the use of precision statistical tools to analyze large databases and identify areas of improvement. It is a global tool for determining, measuring, and collecting information on the industry’s operational performance, and provides software for effective communication on energy unit performance indicators to all interested parties (banks, investors, shareholders, etc.) (Database Model)
Velticon leverages its expertise in data visualization and storytelling to transform complex ESG data into clear, concise, and visually engaging reports.
Velticon offers continuous Improvement. We believe in an iterative approach to ESG reporting. We assist you in establishing robust monitoring and measurement systems to track your performance over time. We provide ongoing support to enhance your reporting processes and adapt to evolving best practices, regulations, and stakeholder expectations.
Overall, Velticon focuses on how the industry can reduce the impact of its activities on the environment and integrate sustainability and social responsibility into its daily operations.
ESG SHIPPING
As the marine industry faces increasing pressure to reduce its environmental impact, we recognize the need for comprehensive and effective ESG management. Our service provides marine companies with a range of tools and resources to help them assess and improve their ESG performance, including:
– ESG assessments and benchmarking
– Sustainability strategy development
– Environmental impact assessments
– Social impact assessments
– Governance assessments
– Stakeholder engagement and communication
The objectives of our proposed ESG proposal for company XXX are pertinent to the most recent compliance rules in collaboration with the EFFAS-The European Federation of Financial Analysts Societies- European Union, BIMCO, Sustainable Fitch and VESON Nautical
These objectives will be measurable and verifiable, and all are realistically achievable.
Creating an ESG sustainability report for XXX shipping company involves following a structured methodology to ensure comprehensive coverage of relevant aspects. Here’s a step-by-step guide to creating an effective ESG sustainability report for XXX
1. Commonly used frameworks include the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), and the UN Global Compact.
2. Communication and dissemination: We undertake the development of a communication strategy to effectively share the report with stakeholders.
3. Velticon monitors progress and update: Sustainability reporting is ongoing. Regularly monitor and measure progress against the set goals and targets, update the data, and continuously improve the reporting practices based on feedback We determine which aspects of the XXX shipping company’s operations and performance will be covered in the report, such as emissions, waste management, labour practices, community engagement, etc.
4. We collect relevant data from various internal sources, such as operational records, financial statements, and human resources records.
5. We determine the key ESG indicators that align with the shipping industry and are relevant to XXX company’s sustainability goals. We ensure the indicators are specific, measurable, achievable, relevant, and time-bound.
6. We use quantitative and qualitative analysis techniques to identify strengths, weaknesses, trends, and areas for improvement. We consider benchmarking against industry peers to gain additional insights.
7. Velticon set targets and goals: Based on the assessment, establish realistic targets and goals that align with XXX company’s sustainability strategy. These targets should be specific, measurable, and time-bound. Aim for continuous improvement and align the goals with relevant international frameworks, such as the United Nations Sustainable Development Goals (SDGs).
8. Apply reporting guidelines: We follow recognized reporting frameworks and guidelines to enhance the credibility and comparability of the report and changing industry standards
The sustainability report should reflect the specific circumstances and priorities of your shipping company, and it should be tailored to address the unique challenges and opportunities within the industry.
International shipping emitted nearly 700 million metric tons of carbon dioxide (MtCO₂) into the atmosphere in 2021. Annual international shipping emissions have doubled since 1990, reaching a record high of 701.9 MtCO₂ in 2017. Bulk carriers are the biggest contributor to shipping emissions, with the global fleet emitting an estimated 440 MtCO₂ in recent years.
Performance indicators (PIs) for shipping are metrics used to measure the efficiency, safety, and effectiveness of shipping operations and vessels. These indicators help shipping companies, maritime authorities, and stakeholders assess various aspects of shipping performance to ensure compliance, identify opportunities for improvement, and enhance overall operational efficiency.
Here are some common performance indicators for shipping and how to calculate them:
1. Fuel Efficiency:
• Fuel Efficiency = Distance Traveled (nautical miles) / Fuel Consumed (tons or liters)
2. Energy Efficiency Operational Indicator (EEOI):
• EEOI = (Total Fuel Consumption / Distance Traveled) * Cargo Carried (in tonnes) / 1000
3. CO2 Emissions:
• CO2 Emissions = Fuel Consumed (tons or liters) * CO2 Emission Factor (per fuel type)
4. Time Charter Equivalent (TCE) Revenue:
• TCE Revenue = Total Voyage Revenue – Voyage-related Costs (e.g., bunker fuel, port fees)
5. Revenue per Available Day:
• Revenue per Available Day = Total Voyage Revenue / Number of Available Days
6. Gross Tonnage (GT) Utilization:
• GT Utilization = (Total Cargo Carried / Total Cargo Capacity) * 100
7. Vessel Turnaround Time:
• Vessel Turnaround Time = Departure Time – Arrival Time
8. Port Turnaround Time:
• Port Turnaround Time = Departure Time from Port – Arrival Time at Port
9. Lost Time Injury Frequency (LTIF):
• LTIF = (Number of Lost Time Injuries / Total Hours Worked) * 1,000,000
10. Environmental Performance Index (EPI):
• EPI = Environmental Score / Voyage Distance
These performance indicators provide valuable insights into the operational efficiency, environmental impact, and safety performance of shipping operations. To calculate these indicators, shipping companies need to collect and analyze relevant data, such as fuel consumption, cargo carried, voyage revenue, operational hours, and safety incidents. Regularly monitoring and evaluating these indicators can help shipping companies optimize operations, reduce costs, and enhance their environmental sustainability efforts. Contact us for shaping the corresponding database and the statistical modelling as calculated by Mar2Invest.
In the context of shipping and maritime operations, both PIs (Performance Indicators) and KPIs (Key Performance Indicators) are used to measure various aspects of performance. However, there is a difference between the two:
- Performance Indicators (PIs): Performance indicators, or PIs, are a broader set of metrics used to evaluate the performance of different aspects of shipping operations. They provide valuable information about the efficiency, safety, and effectiveness of various processes and activities within the shipping domain. PIs may cover many measurements, including fuel efficiency, cargo handling, safety incidents, environmental impact, vessel utilization, and more. PIs help shipping companies assess specific performance areas and identify opportunities for improvement.
- Key Performance Indicators (KPIs): Key Performance Indicators, or KPIs, are a subset of PIs that are strategically selected as the most critical metrics for measuring the overall performance and success of the shipping business. KPIs are closely aligned with the company’s strategic goals and objectives. They are essential for monitoring the organization’s performance and progress toward meeting its key targets and long-term objectives. KPIs are often used at higher levels of management for decision-making and strategic planning.
In summary, PIs are a broader set of performance metrics used to evaluate specific aspects of shipping operations, while KPIs are the most important metrics chosen strategically to measure the overall performance and success of the shipping company. KPIs provide a more focused and actionable view of the organization’s performance, allowing management to make informed decisions to drive success and improvement. PIs feed into the overall performance evaluation and help identify areas where specific action may be needed to improve KPI performance.
| The Shipping KPIs Standard is built up hierarchically with 3 different levels: |  |
Company’s Port State Control Performance Analysis – Example
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KPIs (Key Performance Indicators) and ESG (Environmental, Social, and Governance) indexes are related in the sense that ESG indexes use specific KPIs to assess the environmental, social, and governance performance of companies or organizations. ESG indexes are designed to measure and compare the sustainability and responsible business practices of companies in various industries. These indexes help investors and stakeholders evaluate the companies’ performance based on their commitment to environmental stewardship, social responsibility, and good governance.
Here’s how KPIs are related to ESG indexes:
1. KPI Selection: ESG indexes typically select specific KPIs that align with the key ESG criteria. These KPIs may vary based on the industry and the specific ESG framework used by the index provider. For example, KPIs related to greenhouse gas emissions, energy efficiency, employee diversity, board diversity, and ethical business practices are commonly included in ESG assessments.
2. Data Collection: Companies participating in ESG indexes are required to disclose relevant data related to the selected KPIs. This data is then used to calculate the ESG scores of the companies. The KPI data allows Velticon to evaluate and rank companies based on their performance in environmental, social, and governance dimensions.
3. Scoring and Ranking: The data collected from the KPIs are analyzed and scored to create an ESG rating for each company. Depending on the ESG index methodology, each company is ranked relative to its peers, and the top-ranking companies are included in the ESG index.
4. ESG Index Construction: ESG indexes are constructed using a weighted combination of the individual ESG scores of the included companies. The weights assigned to each ESG dimension (environmental, social, and governance) can vary based on the index provider’s methodology and the preferences of investors.
All the above work should automatically be done by Mar2Invest ESG algorithms provided that we have developed the corresponding database for each client.
How Velticon calculates ESG-KPIs:
Calculating ESG-KPIs involves collecting and analyzing data related to specific ESG criteria. Here’s a general outline of the Mar2Invest process:
1. Data Collection: Companies disclose relevant data related to ESG KPIs, which can be obtained through sustainability reports, financial filings, or other public disclosures.
2. Normalization: Some KPIs may require normalization to compare companies of different sizes or in different industries. Normalization ensures that the data is standardized and comparable.
3. Weighting: Depending on the ESG index methodology, different weights may be assigned to each KPI based on its importance in measuring sustainability and responsible business practices.
4. Scoring: Companies are scored based on their performance on each individual KPI. The scoring may involve benchmarking against industry peers or absolute targets.
5. ESG Index Construction: The individual ESG KPI scores are aggregated, and companies are ranked and selected to be included in the ESG index based on their overall performance.
It’s important to note that different ESG index providers may have varying methodologies and KPIs, and the process for calculating ESG scores can differ among them. Additionally, as the field of sustainable investing and ESG analysis evolves, the selection and calculation of KPIs may be subject to changes and refinements
Example:
- Expert Guidance: Our team of ESG experts possesses extensive knowledge and practical experience in sustainability reporting. We stay updated on emerging trends, regulations, and frameworks to provide you with the most relevant and valuable guidance. Velticon’s team works closely with any Greenhouse Gas Emissions Industry unit i.e. land-based industries, energy organizations, shipping companies, aviation, road transport, rail, and pipeline. to develop tailored solutions.
- Tailored Solutions: We understand that every organization is unique. Our approach is customized to your specific needs, industry context, and stakeholder requirements, ensuring your ESG reporting aligns with your business strategy.
- Enhanced Credibility: By working with Velticon, you gain credibility and trust among investors, customers, and other stakeholders. Our rigorous verification processes and adherence to recognized standards enhance the reliability of your ESG disclosures.
- Efficient Resource Allocation: We help you optimize your resources by streamlining data collection, analysis, and reporting processes. Our expertise allows you to focus on core business activities while effectively managing your ESG responsibilities.
- Competitive Advantage: A well-executed ESG reporting strategy can differentiate your organization from competitors, attracting investors, customers, and top talent who value sustainable practices and transparency.
Ready to embark on your ESG reporting journey? Reach out to Velticon today and let our experts guide you toward sustainable success. Contact us and we will be delighted to discuss your specific needs and how we can assist you in achieving your ESG reporting objectives.
Remember, transparency, accountability, and sustainability go hand in hand. Join hands with Velticon, and together, let’s create a brighter, more sustainable future.