Reducing emissions is the most significant sustainability theme in maritime
Maritime software company NAPA develops design, safety, and operational solutions that help reduce ship emissions. One of the key sustainability challenges the company faces is determining how to measure emissions avoided through the use of NAPA’s solutions and how to communicate these findings effectively.
A study conducted by University College London and maritime consultancy UMAS highlights that congested ports and long waiting times for ships are major contributors to maritime emissions. According to the study, optimizing congestion and waiting times could reduce voyage emissions by up to 25%, depending on the vessel type.
These are precisely the kinds of challenges that NAPA’s solutions aim to solve. Founded in Finland in 1989, NAPA provides software and data services for the design and operational efficiency of cargo and passenger ships. NAPA’s design, safety, and fleet management solutions support customers in route optimization, risk analysis, emissions reduction, and environmental compliance, among other areas.
“Reducing emissions is currently the most significant sustainability theme in the maritime industry. Environmental concerns are constantly reshaping the industry, and customers have increasing sustainability-related requirements,” says Juhana Salminen, Vice President, Operational Excellence at NAPA.
NAPA’s customers include shipyards, shipowners and operators, design companies, classification societies, universities, and research institutions. The company operates ten offices across Europe, Asia, and the Americas, employing 210 people globally.
The challenge of measuring “emissions avoided” beyond the value chain
What about NAPA’s own sustainability efforts? The company has already assessed its direct emissions and those from purchased energy, and plans to publish a sustainability report. While NAPA does not have a dedicated sustainability unit, it has appointed experts to oversee these efforts.
Salminen has identified a significant challenge related to responsibility: measuring and communicating about the emissions avoided outside of the company’s value chain.
For instance, to address these questions, Salminen and his colleagues would appreciate clear guidance and support: How much of the reduction in energy consumption per ton-mile of new ships can be attributed to NAPA’s solutions? What would the ship’s route and speed profile have been without NAPA’s route optimization?
“We would like to quantify the environmental and societal impact of our solutions. Measuring and verifying that is difficult,” says Salminen.
UN Global Compact enhances transparency and cross-industry collaboration
As part of its sustainability efforts, NAPA joined the UN Global Compact in 2014. Many of NAPA’s customers are large global players with their own reporting obligations, which in turn drive inquiries about the impact of its operations.
“It’s easy to respond to such inquiries by referring to the latest reports available in the UN Global Compact archives,” Salminen says. Operational transparency is a key component of good governance, as outlined in ESG criteria.
NAPA has also participated in the UN Global Compact Finland‘s SME Responsibility Group, which provides sustainability management support to small and medium-sized enterprises. One of the key benefits of the UN Global Compact, according to Salminen, is the cross-industry peer support and learning that helps companies approach sustainability challenges from a broader perspective.
“Through the UN Global Compact, I’ve learned a great deal about emissions calculation tools and reporting practices of other companies. It’s like cross-pollination,” Salminen explains.
Emission reduction targets set the future direction for the industry
Going forward, maritime regulations and requirements will continue to keep industry players busy.
The International Maritime Organization (IMO) has set ambitious emission reduction targets, aiming for international shipping to reach net zero by 2050. EU regulations are also closely aligned with IMO’s standards. Since January 2024, the European Union’s Emissions Trading System (EU ETS) has required emissions fees from large ships, and reporting obligations in the maritime industry are becoming increasingly stringent.
This keeps industry professionals busy, but Salminen sees the European Green Transition as creating new opportunities for the maritime sector.
“The green transition requires that new ships, innovations, and technologies replace older ones. Green financing incentivizes sustainable investments as a growing share of investors’ portfolios must consist of environmentally sustainable business activities,” he concludes.
This article is based on an interview with Juhana Salminen, Vice President, Operational Excellence at NAPA. It was first published in Finnish by UN Global Compact Finland.
