Shipping is a vital source for economic development. Approximately 80 per cent of the world’s trade volume and about 70 per cent of trade value are transported by ships. The true importance of shipping became apparent in 2021 when the ‘Ever Given’ got stuck in the Suez Canal, resulting in a blockage that lasted for six full days. Analysts have calculated that this blockage resulted in economic damages of roughly $400 million per hour. Shipping is a vital link in world trade and will remain in the years to come. At the same time, shipping is also polluting. At the time of writing, the shipping industry accounts for 3.5 to 4 per cent of all climate change emissions, primarily by emitting carbon dioxides. These exhaust gasses also result in local atmospheric pollution. Next, the discharge of ballast water can negatively impact local ecosystems as ballast water contains biological elements which are foreign to those ecosystems. Shipping also impacts wildlife, whether through propellors’ collisions with marine mammals or sound pollution from engines, which can impact species who rely on sound for navigation and orientation. Shipping companies are increasingly aware of these problems, and some are actively striving to improve environmental performance.

One such company is the Norwegian Torvald Klaveness (TK). In 1946, Torvald Klaveness founded the company aiming at providing technical management and Norwegian seafarers to the American shipping industry. Shortly after, he started in ship brokering and contracted its frst vessel, the MV Bilbao, in 1950. The company moved further into bulk carriers in the 1950s and 1960s, using innovative ships and the ability to establish long-lasting relationships with customers and partners. Today that same pioneering character is still part of the culture. TK’s vision is to improve the ‘nature’ of shipping. Decarbonization, improving cost effectiveness and increasing resilience are the main themes supporting that vision, and within those themes, the adoption of new technologies and services to increase shipping effciency and reduce its environmental footprint is vital. This vision is very much carried by the company’s owners and leadership team. The relevance of shipping companies will be determined by their ability to offer their services while taking account of their environmental impact. The company now exists of fve business units, one of them being ZeroLab, which was established in 2021.

ZeroLab’s ambition is to make decarbonization of seaborne supply chains a reality for cargo customers. Specifcally, ZeroLab partners with ambitious cargo owners who want to lead the way in creating a market for low-carbon deep sea shipping. In setting up this business unit, the company could build on the experiences it already had gained setting up Klaveness Digital. Guided by customer centricity, ZeroLab used an internally validated approach to develop a business around decarbonization. For example, understanding the challenges which lie further down the supply chain was crucial in focusing the activities of both Klaveness Digital and ZeroLab. Cargo owners are increasingly confronted by requests for transparency regarding their carbon footprint and effciency. An increased focus on costs, combined with increasing requirements on environmental impact, requires companies to have more insight on their supply chains. Direct emissions and emissions from purchased energy, known respectively as Scope 1 and Scope 2 emissions, have been the focus of data collection and reporting in industrial companies for some time now. The next frontier—

indirect emissions, known as Scope 3 emissions—is now coming on to the radar as companies are drafting strategies to accomplish net zero targets. Thus, whereas decarbonization as a theme was recognized, no concrete demand for decarbonization services (including Scope 3) exists.

Questions 1 Torvald Klaveness is responding to technological and societal developments. Explain why partnering, in addition to internal development, constitutes a tool in efectuating its strategic ambitions.
2 Explain how Torvald Klaveness’ alliance approach supports the company’s innovative and societal goals. What role do customers fulfl in the alliance portfolio?
3 How does Torvald Klaveness’ internal organization support its external (alliance)
organization?