Author: Sagar Joshi

Mediterranean Shipping Company (MSC), the Swiss-Italian shipping company that is now the world’s largest ocean carrier, has opted to reroute its ships on the west coast of Greece in order to lessen the chance of collision with endangered sperm whales in the Mediterranean.

It is the first major shipping line to re-route its ships in order to save the endangered species of whales. According to the firm, the decision was made after discussions with four major environmental non-governmental organizations (NGOs), and MSC is now the first major shipping line to re-route all of its container boats in this area to protect the important habitat for the whale subpopulation.

According to MSC, it was necessary to take a critical action like this in order to save and protect the remaining 200 to 300 of the population. The Hellenic Trench, to the west and south of the Peloponnese and southwest of Crete, has been identified as critical habitat for the eastern Mediterranean sperm whale population by the International Fund for Animal Welfare (IFAW), OceanCare, and WWF Greece in collaboration with the Pelagos Cetacean Research Institute.

As previously stated, deep-diving whales may be seen in the area all year and congregate around the 1000-meter depth contour — right in the path of busy shipping routes. “As a worldwide leader in container shipping and logistics, we have a duty to guarantee that our shipping operations have a positive impact, reflecting our longtime commitment to conserving and safeguarding the ocean and marine animals,” said MSC Vice President of Sustainability, Stefania Lallai.

He also added that collaboration with non-governmental organizations (NGOs) is essential for understanding and acting to conserve endangered sperm whales around the Greek coast.

Immediate action needs to be taken now

The measure is expected to make a significant impact on the survival of these at-risk whales because the above-mentioned area is currently the company’s route. The whales discovered dead on the beach with propeller marks and slashes are only the tip of the iceberg. Up to 20 times more people die offshore and their deaths go unrecorded.

“We’re also observing fewer whales in our yearly research surveys than in past years, which is a major worry,” says Alexandros Frantzis, scientific director of the Pelagos Cetacean Research Institute. We are concerned that if prompt action is not taken, deaths from ship hits may lead this already small species to become extinct very soon.

The NGO group asked other shipping firms to follow suit, since ship re-routing is now necessary to lower the danger of ship strikes to sperm whales by about 75%. MSC is also involved in global efforts to protect the ocean environment and life below water, including the protection of endangered species such as right whales (off the east coast of the United States) and blue, humpback, and fin whales (off the west coast of the United States), as well as southern resident killer whales (Canada).

In 2020 – for the third year in a row – MSC received the highest (Sapphire) Award for ‘Protecting Blue Whales and Blue Skies’ vessel speed reduction incentive program (a joint effort by Santa Barbara County Air Pollution Control District, Ventura County Air Pollution Control District and Bay Area Air Quality Management District partnering with the US NOAA’s Channel Islands, Cordell Bank and Greater Farallones National Marine Sanctuaries, the California Marine Sanctuary Foundation and the Volgenau Foundation).

MSC continues to participate in the annual ‘Haro Strait and Boundary Pass voluntary vessel slowdown’ to decrease underwater noise and aid in the recovery of endangered southern resident killer whales, as it has done in previous years.

Shell plc has formally changed its name from Royal Dutch Shell to Shell plc after opting to streamline its share structure, relocate its headquarters from the Netherlands to the United Kingdom, and, as a result, remove the Royal Dutch designation from its name.

The energy major confirmed on January 24, 2022 that its name had changed from Royal Dutch Shell plc to Shell plc. Shell simplified its share structure as part of an effort to speed its transformation to a net-zero corporation. As a result, the company also said it would remove the Royal designation from its name.

Since the 2005 merger of Koninklijke Nederlandsche Petroleum Maatschappij and The Shell Transport and Trading Company under a single parent company, Shell had been established in the United Kingdom with Dutch tax residency and a dual share structure.

Shell, Europe’s largest energy corporation, will benefit significantly from the move. Shell will benefit from a reduced corporation tax rate and will no longer be subject to the Netherlands’ new 15% dividend withholding tax, which went into effect in January, by shifting its tax headquarters to the United Kingdom.

“The simplification will normalize our share structure under the tax and legal jurisdictions of a single country and make us more competitive,” Shell chairman Sir Andrew Mackenzie said.

Shell is the largest public firm in the Netherlands, and the Dutch government was upset by the abrupt announcement of its withdrawal. “We are unpleasantly surprised by this. The cabinet deeply regrets this intention,” Economic Affairs Minister Stef Blok said in a statement. “We are in talks with Shell about the implications of this move for jobs, critical investment decisions and sustainability. Those are hugely important.”

Shell stated in its announcement that it “will continue to be a substantial employer with a strong presence in the Netherlands.” The true core of Shell’s day-to-day business activities will remain in the Netherlands: the company’s global upstream, integrated gas, renewable energies, and technology businesses will all remain in The Hague.

On the other side, the officials in the UK welcomed the decision. Shell’s move was praised as a “clear vote of confidence in the British economy” by UK Business Minister Kwasi Kwarteng. The decision is largely regarded as a victory for post-Brexit Britain, demonstrating sustained business interest in “Global Britain” despite the country’s exit from the EU.

Six months ago, a Dutch district court ordered Shell to reduce its global carbon emissions by 45 percent by 2030. Shell is appealing the verdict, and the relocation of the company’s corporate offices is not likely to have an impact on the result of the lawsuit.

Shell’s transition to remain dependent on society’s progress

Shell’s CEO, Ben van Beurden, talked about the upcoming year and why the company has to accelerate its transition. Van Beurden cited a judgement by a Dutch court that Shell should lower its carbon emissions quicker than expected as one of 2021’s low points.

“I was listening at home as the judge gave her verdict. It felt like a body blow,” he said.

He further added: “I found it deeply troubling that Shell as a single business should be held accountable for how the world produces and uses energy. That goes against everything I believe in when it comes to climate change, namely that this is a societal problem, not a problem for a single company to solve. It’s also worrying that the ruling was met with so much approval in some places, as if this was indeed the solution society needed.”

Shell intends to considerably increase its investment in carbon capture and storage by 2022, as well as to find out how to construct carbon-neutral liquefied natural gas and petrochemical facilities.

“But no matter how hard we work on reducing the emissions of our customers when they use our products, our progress will remain dependent on society’s progress with the energy transition. We cannot go faster than all our customers or we would have no customers to buy our products. And we would go out of business,” van Beurden said.