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Sustainability and corporate responsibility prove watchwords for DNV
By Xiao Wan (China Daily)
Updated: 2009-10-16 08:08
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DNV staff carried out risk-based inspection at a process plant. |
Instead of taking a taxi, Per Marius Berrefjord always walks to his office, located next to the east third ring road in Beijing. Explaining his motivation, he says: "I choose to walk as it is more environmentally friendly."
Berrefjord is senior vice-president of Det Norske Veritas (DNV), one of the world's leading providers of risk management and sustainability solutions. He said: "For our company, sustainability is a key theme in terms of development issues."
This Norwegian company opened its Beijing DNV sustainability center in June of this year. Through establishing this strategic unit, DNV set out to demonstrate its strong and continued commitment to facilitating sustainable development within China, said Berrefjord, also the managing director of the new center.
Warming to his theme, he said: "China is working hard to balance its economic, social and environmental development. The scale and impact of the projects initiated by the Chinese government and the large State-owned enterprises are massive - and so are the inherent risks. We want to have a strong presence in Beijing, where many of our customers are based. We also want to be able to provide appropriate services for them. From the response we are receiving from the market, we seem to be getting it right."
The center is now undertaking a risk management project in association with the State Council's Assets Supervision and Administration Commission (SASAC).
The project is geared, primarily, to developing an optimized decision-making process for project risk analysis. It will adopt a scientific approach to ensuring that major investments are properly vetted through a formal risk assessment procedure before being implemented. "Today there are around 20 people working in the center. We hope, by the year 2012, the center will be employing between 300 to 500 people," said Berrefjord.
Long history
DNV was one of the first-class societies to be established in China. It initially came to the country 121 years ago, just 24 years after it first opened its doors in Norway, back in 1864. Initially specializing in maritime quality control, DNV appointed its first surveyor in Xiamen, Fujian province, aiming to provide services to vessels trading between the port and destinations in Europe.
Subsequently DNV expanded its presence in China, setting up offices in a number of other port cities, including Shanghai and Qingdao, and Hong Kong. The company's renewed development in China began in 1978, following China's adoption of its reform and opening up policy.
Today, China is one of the most important strategic regions for DNV. Currently, DNV Greater China has more than 900 employees with a network of 36 offices in 20 cities. These operate in a variety of industries and help customers to safely and responsively improve their business performance.
DNV's roots remain in the shipbuilding industry and the setting of standards for properly constructed vessels. In the 1970s, as Norway went through an oil boom, the company gained extensive experience in applying risk management to the offshore industry. Today, it has expanded still further and is now providing risk management services in virtually all industrial areas.
DNV's president and CEO is Henrik O. Madsen. Speaking in Shanghai last year, on the occasion of the 120th anniversary of DNV's arrival in China, he said: "We take pride in our competent, knowledge-based organization and are geared up to support China's diverse industries. Our 120 years of experience in China form a strong foundation for serving as China's preferred risk management partner."
Today, maritime activity still accounts for the greater part of DNV's portfolio in China. During 2008, 102 vessels to be built in China, with a dead weight of 12.18 million tones (dwt), were contracted out to DNV. This brought the total orderbook of DNV China to 451 vessels, with 41.3 million dwt, representing a market share of more than 20 percent.
The company is now running a joint venture institute, alongside the China Classification Society (CCS), to provide research and technology support for the shipbuilding and offshore industries in the country.
With energy now an issue of overwhelming importance in China, DNV is also placing an increased focus in this area. Wind energy, with a particular regard to Chinese offshore developments, is one area that the company has already targeted.
Berrefjord said: "DNV has been involved in wind turbine installation verification and blade manufacturing inspection since late 1990. Taking advantage of our strong offshore competence, we are now in a good position to service China's wind power sector."
The company has already participated in a pilot project on the first offshore wind turbine electrical power generation tower in the Bohai Sea. Following its initial installation in 2007, the wind turbine is now successfully generating electrical power for one of the China National Offshore Oil Corporation (CNOOC) offshore oil and gas platforms.
DNV is also one of the first organizations to be accredited by the United Nations Framework Convention on Climate Change (UNFCCC) to perform a third party role as a Designated Operating Entity (DOE) to validate and verify Clean Development Mechanism (CDM) projects. The company is now actively involved in the validation and verification of a number of CDM projects throughout China.
Today DNV has some 50 percent market share of the CDM validation and verification projects in China. "We will continue to grow our workforce and expand our services into current and future voluntary schemes as part of our contribution toward combating climate change," said Berrefjord.
CSR in China
Since 2005, DNV has developed a strategic partnership with both the Norwegian and Chinese Red Cross. Through this partnership, DNV has been continuously contributing both finance and competence to support a water project in Jilin province.
So far, 2,500 people from some 700 families, located in seven villages in the province, have benefited from the project. This has seen them get access to clean water and sanitation facilities for the first time.
Explaining this apparent philanthropy, Berrefjord said: "DNV ensures that corporate social responsibility (CSR) is an integral part of its management system and business culture. Supporting the local community, wherever we operate, and demonstrating good corporate citizenship is always on our agenda."
DNV was among the first companies to make a donation towards alleviating the damage wrought by Sichuan earthquake in 2008. It has also, together with the Chinese Red Cross, supported a project to rebuild a primary school that was severely hit by the earthquake.
(China Daily 10/16/2009 page12)
