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Walk into any office in Oman and chances are that you will notice
recyclable paper baskets, coloured bins, posters, notices and saving
of energy in some form or another. And these are not just platitudes
but being increasingly abided by managers and executives religiously
across sectors. Oman LNG, Muriya Tourism Development, Petroleum
Development Oman (PDO), Shangri-La's Barr al Jissah Resort & Spa,
Grand Hyatt, Majan College, Shell Development Oman are amongst a
growing list of companies which use some sort of an internal office
setup to help promote the ‘green’ cause.
And then there are others who are taking such initiatives far beyond
the confines of their office. One such company is Towell Auto Centre
(Tac) and their TAC Ecodrive campaign. It was amongst the first
corporates who took up the cause way back in 2007, but was hindered
greatly by Cyclone Gonu, only to come back in full force as a
corporate campaign in 2008. The campaign was spawned from the
ideology that both S. Kasthurirengan, CEO – TAC, and Annurag Chawla,
Head of marketing & communications – TAC, shared. “It is not just a
campaign that we do on special occasions. It is an ideology and a
part of our corporate culture”, says Chawla. The campaign is simple
enough – spread awareness among the community and drive them towards
saving the four key elements of daily life – water, energy, the
environment and fuel. The campaign began right at home. TAC started
with their own staff, and then spread the awareness to the community
at large. The campaign made further inroads with the inclusion of
school children through interactive presentations and by taking the
message to other corporates of Oman and their key stakeholders. It
has therefore become an attitude and a purposeful way of life.

Knowing your footprint
With over 40 per cent of the world’s oil resources being located in
the region, fuel based companies have a bigger responsibility to
reducing carbon footprint. So what is a carbon footprint (CF)? The
burning of fossil fuels leads to an increase in the level of carbon
dioxide in the atmosphere, thus enhancing the greenhouse effect
above the permissible norm. This in combination with the rise in
methane, nitrous oxides and CFC’s endanger the environment further.
This is where the carbon footprint comes in. It is basically the
amount of greenhouse gas emissions caused by an individual,
organisation, event or product. And knowing how to reduce your
footprint, no matter how large or small, is the best contribution
you can make to the environment.
Hydrocarbon-based industries have the unenviable distinction of
creating the largest CFs amongst its peers, led by coal used in the
power generation sector and followed by transportation fuels. Gas,
the most benign of the hydrocarbons creates a CF less than half that
of coal. Aware of these facts many fuel companies across the globe
are working hard on reducing their CFs. The buzzwords here are ‘act
responsibly’. Dr. Brian Denis Buckley, General Manager and Chief
Executive, Oman LNG, puts it perfectly: “Our responsibility towards
the environment comes in at various levels – individual, corporate,
industry-wide and global.” “For example, as individuals and as
companies we are careful to be efficient with energy and minimise
our waste through the reduction, reuse and recycle of the materials
we use. In Oman LNG, our use of gas-powered turbines, which are the
most efficient form of energy extraction available today, maximises
energy efficiency. Gas turbines also create the lowest CF per unit
of energy of all the fossil fuels. We take care to minimise waste –
and set annual targets for continuous reduction. We take steps to
ensure, for example, that the sea water, used for cooling in our
plant, does not come in contact with any process material and is
returned to the sea uncontaminated and with minimum increase on its
original temperature to protect its ecosystem. Through design and
operations and maintenance practices, we minimise our carbon
footprint at a level that is pacesetting in the industry”, says
Buckley. "Finally, at the industry-wide and global levels we work to
continuously improve standards throughout our industry and to
collaborate with governments in achieving levels of performance that
will protect and conserve our environment whilst achieving economic
growth and wellbeing”, concluded Buckley.
PDO on its part is committed to finding environmentally-friendly
solutions to its strategic investments. The oil and gas major
recognises that what makes good environmental sense also makes good
business sense. In the barren desert of Nimr in South Oman, dust and
sand will soon give way to a green oasis. Taking its cue from the
ancient Egyptians who used natural reed beds to clean up dirty
water, PDO is using the age-old principle to remove oil from water
produced alongside oil production. Such water is currently
re-injected into deep reservoirs where it can be safely stored
without affecting groundwater, a process known as deep water
disposal. After a successful eight-year experiment, the Nimr reed
bed project is set to treat 45,000 cubic metres per day of water
from local oilfields. PDO will create a giant farm with 240 hectares
(2.4 mn square metres) of reed beds which will become operational in
early 2011. “Our trials demonstrated that reed beds are a
technically viable alternative to deep water disposal,” explains Khalifa al Harthy, Head of Environment, PDO.
South Oman is the site of another technological step forward aimed
at limiting the carbon footprint of PDO’s operations. At Thayfut,
PDO is embarking on its first solar energy project. Approval was
recently obtained for a pilot project known as “Thayfut solar steam
generation pilot”. Under the project, PDO will install parabolic
troughs which will be used to generate steam for injection into
underground reservoirs. Parabolic troughs work by concentrating the
sun’s rays onto receiver tubes carrying water which under the
intense heat then turns into steam. If successful, the project could
lead to change in the way PDO generates energy for its thermal
enhanced oil recovery (EOR) projects. Royal Dutch Shell, a global
leader in the industry, is working on a number of initiatives
globally to combat the problem. “Shell is an energy company in a
world governed by three hard truths,” says Dr. Andrew Wood, Shell
Country Chairman, Shell Development Oman. What are these hard
truths? Firstly, global demand for energy is growing, and this will
mean increased demand for oil and gas. Secondly, supplies of “easy
oil” (easily accessible, conventional oil and gas) cannot keep up
with the growth in demand. As a result, society has no choice but to
add other sources, such as renewable and “unconventional” fossil
fuels, to its repertoire. And lastly, more energy means more CO2
emitted in a time when climate change looms as a critical global
issue.
These “hard truths” can only be combated through the joint effort of
governments, industry and the consumers. It all boils down to the
task of balancing the accessibility, affordability and acceptability
of energy, in turn influencing its economic viability. Many of these
methods such as taxes on cars dependent on engine sizes, taxes on
disposal of waste, higher energy prices and the like are well known.
An interesting method of reducing emissions called Carbon Cap and
Trade is being tried out by a few developed countries. This involves
setting of a carbon emission standard within a government’s
jurisdiction and distributing it evenly among the different
industries and then allowing it to become a tradable commodity. What
this does is allow “greener” companies an additional means of profit
to promote their cause and while at the same time giving the other
companies the leverage they need to meet their emission limits,
albeit at a higher cost. But this system also has an additional
benefit; it allows the government to study the concentration of
emissions within the various industries. Royal Dutch Shell for its
part is actively pursuing the Carbon Capture and Storage (CCS)
method to reduce carbon emissions. CCS is a process whereby CO2 is
captured from industrial or energy sources and then transported to a
storage site to be injected into geological formations deep
underground, where it can be permanently trapped. Says Wood,"There
are potentially three types of locations that are suitable for such
disposal. Firstly, there are deep saline aquifers which have large
storage potential but require detailed research into the geological
characteristics. Then there are already depleted gas fields, but
these typically have uncertainties concerning the integrity of
abandoned wells. And lastly there are mature oil fields. These can
provide a “win-win” situation, so to speak, in fields where there is
Enhanced Oil Recovery (EOR) potential as this can reduce the funding
required to create a CCS infrastructure."
A number of ‘green’ initiatives being taken by companies in Oman go
beyond the purview of a company’s social responsibilities. A fine
case in point is Land Rover. As David Aziz, Director Automotive
Products, MHD puts it, “As part of the ongoing commitment to address
the challenges of the environment, Land Rover is actually the first
car manufacturer to launch its own CO2 offset program.”All vehicles
sold in the Gulf will include the CO2 offset package, which is based
on offsetting an equivalent of 72,000km worth of CO2 emitted by a
vehicle. This CO2 offsetting funds projects that avoid or reduce CO2
emissions so that the amount saved balances the original emissions.
In addition, Land Rover, as part of the Our Planet programme,
sponsors a number of different organisations such as Born Free
Foundation, the Biosphere Expeditions, Earthwatch Institute, Royal
Geographical Society and the China Exploration and Research Society.
Coming back to emissions, when it comes to CF levels, at a corporate
or industrial scale, things really start to ‘heat up’. A number of
companies in Oman like Oman LNG, Grand Haytt have got an ISO14001
certification, embellishing their environment friendly credentials.
ISO14001 (International Standard for Organisation) is a set of
environmentally friendly and cost efficient practices. This
certification includes using energy-saving light bulbs and
biodegradable cleaning materials, water restrictors and sewage
treatment facilities to prevent water pollution. Another interesting
campaign that most of us are familiar with is the anti-plastic
campaign. Backed by the ESO (Environment Society of Oman) it is
followed by quite a few companies, either in collaboration with the
ESO or on their own. The primary objective of this campaign is to
reduce the use of plastics where not needed and to use reusable bags
instead. The Grand Hyatt Muscat took this cause one step further by
converting all clean but damaged old bed-linen into reusable bags,
at their own cost, and gave them away to their staff to promote the
anti-plastic cause.

Developing the future
Dr. Reginald Victor, Director and Professor, Centre of Environmental
Studies and Research, Sultan Qaboos University, says: “Oman is
considered as the leader in environmental conservation and research
in the region. But now that scenario is changing slightly because of
the rapid development.” Take a closer look and you will find that
there is quite a bit a development going on, especially along the
coast and it is inevitable that this will affect the environment.
So, the question that we have to ask ourselves is – where do we
bridge the gap between developing our livelihood and protecting the
environment? The answer lies in something called ‘Sustainable
Development’. The easiest way to describe it is ‘utilising the
resources of today without compromising its use for the generations
to come’. To do so, requires intense amounts of research and
analysis and while the damage cannot totally be avoided it can
definitely be reduced.
Muriya is just such a company. They are at present developing two
major projects; the Salalah Beach project which is spread over 15.6
million square metres and 8.2km of beachfront; and the Jebel Sifah
project which spreads over 6.2 million square metres and 5.6km of
beach front. One of the key features of the two projects is the
inland marinas. In doing so Muriya avoids reclaiming land from the
sea, which is extremely harmful to the marine environment. “By
reclaiming land from the sea, you disturb the shoreline and this has
major implications on the environment. You have accretion of sand on
both sides of the shoreline, disturb the currents, disturb the
marine life and kill the coral”, says Cyril Piaia, CEO, Muriya
Tourism Development. He also added, “By building inland marinas we
don’t disturb the natural flow of the water, natural currents and
the marine life.” Also part of the plan is the proper disposal of
brine from the desalination plants and the use of off-shore mooring
buoys. Also, only local flora will be used for the projects. But,
with increased tourism comes the need for hotels, which also have
quite a significantly large carbon footprint. Reducing this is no
easy task and requires some firm protocols and ingenuity. For
instance, Grand Hyatt Muscat, whenever possible, closes down one
wing of the hotel to reduce power consumption. They are in plans to
use AC condensation water for the plants in the hotel. “You usually
have huge AC plants in a hotel such as this. The condensation water
is several thousand litres. So, just using that will make a
difference”, says Christoph K. Franzen, GM, Grand Hyatt Muscat. They
are also in the process of completely phasing out the use of plastic
bottles in the hotel, controlling the use of paper and also use
various methods, such as motion sensors and energy saving bulbs, to
further reduce energy consumption in the hotel. Even Shangri-La’s
Barr Al Jissah Resort & Spa spares no expense when it comes to
environment conservation. “All Shangri-La properties follow an
Environmental Management System Manual, which helps to identify and
address the immediate and long-term impact of the hotel’s operations
on its local environment”, says Arbind K. Shrestha, GM, Barr Al
Jissah. The resort also has a sewage treatment facility. All water
is clarified and treated and in turn used to maintain the resort’s
extensive landscaped and natural surroundings. The resort also takes
great pride in its turtle beach and puts great effort in maintaining
it. The beaches remain unlit at night and the exterior lights are
soft, not to put off turtles. There is a dedicated Turtle ranger on
staff who makes sure turtles are treated in a right way, and that
their habitat is not disturbed by guests or staffs. The nesting is
marked with wooden stands and a sign to alert everyone that a turtle
nesting is located below.
The exotic problem
Unfortunately, with increased development comes an additional danger
that not many are aware of – the introduction of foreign exotic
species of plants and animals into the local ecosystem. The most
important fact to consider is that when a species of plant and
animal is absent in a certain area, there is a good reason for it.
If you try to plant a species that was not initially there, you are
basically interfering with the natural order of things and in
actuality you are doing a lot more harm than good. And in fact it
even goes far deeper than that. Taking any green golf course in the
world as an example, by building the said course one provides ample
amounts of food and shelter for creatures that were initially
struggling for food and survival. This causes those creatures to
thrive and eventually turn, what were once rare, into pests that
also affect the other flora and fauna in the area! And no matter
what sort of environmentally friendly methods are used in the
process, this sort of damage cannot be avoided.
This sort of damage gets even worse when circumstances or industries
involve the introduction of new species of plants and animals into
the environment. Take for example, the pet industry; it involves the
introduction of foreign animals into an environment that was not
initially meant for them. When left free, these new species of
animals may flourish and, in nearly all cases, will compete with and
eventually drive off the local fauna thereby affecting the entire
local ecosystem. Prime examples of such competition are the green,
Rose-ringed parakeets and House crows. These were creatures that
were introduced by accident and are now thriving in an environment
that they were never meant to be in. And even worse, or what may
even seem heartless, is the solution to such damage – get rid of the
said exotic creature. While this may seem cruel, it is a matter of
choosing the lesser of two evils. On one side we have the parakeets
or crows who for no fault of their own have survived in the wild and
have managed to compete successfully for food and shelter but on the
other hand we have the local birds who were originally of this
ecosystem and who now have a new, and extremely strong, competitor
for the same resources. But these birds, being much smaller as they
are, don’t stand a chance and run the risk of being extinct. The
choice, as you can see, is not in their hands but in ours. This is a
choice that we would not have had to be made had the right steps
been taken right in the beginning but what we can do with ease is
avoid this from ever happening again.
Education is the key
The children of today hold the keys to the world’s future. It is our
responsibility to educate them in the right way and make them aware
of the importance of conservation. It is good to see that schools
and colleges are making a genuine effort in this regard. “The
potential is there and it thrills me to know that the students have
so many ideas. But they sometimes need a certain competition or
movement to explore and reflect on those potential ideas”, Says
Mohamed Murtadha Al-Eisa, Marketing and PR manager, Majan College.
One such initiative is Majan College’s “Majan friends of the
Environment”. The objective of this initiative is put forward a
message and to educate others about the importance of conservation
and the methods that need to be utilised. Whatever said and done,
these burden is not theirs to bear alone. It is only with support
from larger corporations and organisations can they hope to be a
success. This responsibility should also be taken up on a personal
level by educating children to take it forward as a way of life.
Remember, educate the young of today for a better world of tomorrow.
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June - 2009 |
| Cover
Story |
Truly 'Going Green'
While most people would relate ‘Going Green’ to planting of more trees
and increasing the level of greenery around ones home and neighbourhood,
corporate Oman is taking the concept to a much deeper level with
initiatives like carbon capture, conservation of energy and water,
controlling waste management and recycling. Malcolm Xavier Crasta and
Visvas Paul D Karra give a first-hand accountalk |
Renewable Energy – On a roll
The development of renewable energy is an ongoing process and
although it may
not be viable today, it may soon become relevant for Oman due to
newer technologies,
writes Visvas Paul D Karra |
Petroleum Development Oman:
A Planet-Friendly Mindset Takes Over
A look at how Petroleum Development Oman is contributing to
environment preservation |
| Other
Headlines |
An indelible stamp
Our Guest Editor H E
Anil Wadhwa surprised us with his hands-on approach and
quick-wit understanding of the editorial process |
A class act
The OER Top 20 Debate and Awards gave a ringside view on the State of
the Sultanate's Economy and rewarded the best performing listed
companies. An OER report |
Steady progress
H E Ahmed bin Abdulnabi Macki, the Minister for National Economy
shares his thoughts on bilateral relations, the economic crisis and
Oman’s response in an exclusive interview with our guest editor, H E
Anil Wadhwa |
‘Disruption is in our
DNA’
Ramzi
Raad, Chairman and CEO, TBWA\RAAD talks about the impact of global
economic slowdown on the advertising industry and his agency's
partnership with the ZEENAH Group in an exclusive conversation with
Akshay Bhatnagar |
The Life of an Icon
We were recently given the opportunity to drive three of the
very best models that Rolls-Royce had to offer. But rather than
review the car we decided to take a look at its roots and find
out how the company came to be. Malcolm Xavier Crasta tells the
tale |
Trust is the key
Rohit
Walia – Executive Vice Chairman and CEO, Bank Sarasin-Alpen and
Alpen Capital, Dubai replies to a set of questions sent out by our
guest editor, H E Anil Wadhwa
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Malaysia: A business
hub
Malaysia is a fast growing, modern and progressive nation. It
is one of the most developed economies in South East Asia and
enjoys strong socio-economic and political stability. A
multi-racial and multi-cultural population gives it cultural
diversity
|
The Future of Investing:
Riddle, Mystery Or Enigma?
Investing has always been a game of navigating uncertainty and the
only anti-dote to that is a disciplined research-led investment
process with continual adjustments or rebalancing as the macro
situation evolves |
Incredible India: the
traveller's paradise
A
roadshow was held in Muscat recently to promote the ‘Visit India
2009’ campaign, put together by the travel industry in association
with Government of India. Visvas Paul D Karra travels to Mumbai,
Delhi and Agra for this exclusive report |
Private Ties
The demand for health services is set to escalate
considerably as Oman’s population grows larger. Aware of this
the government of Oman is welcoming private participation in the
healthcare industry, offering various incentives such as soft
loans and, in some cases, free land to medical entrepreneurs |
Kuwait embraces socio-economic change
The recent elections in Kuwait has come as a shot in the arm
for a government looking at taking on the financial crisis with
an economic stimulus package the election of four women MP's
adds to the country's image |
Samsung extends lead with LED TVs
Sungyong Hong, president, Samsung Electronics Co, Dubai, talks
about the brand positioning with its new television LED TV
technology to Visvas Paul D Karra |
Office Workout
If you have trouble
staying fit at work, these office exercises are a great way to
keep your body moving right at your desk. Raksha D’Souza checks
them out |
What next in the Bond Market?
While the markets are now optimistic about risk, the realities of
the world economy still do not justify unbridled optimism, given
this scenario it may be prudent to invest in government debt on any
dip |
Simple pleasures
Mohammed Al Hassani, Corporate
Communications manager, BankMuscat surprises one with his simplicity
and down-to-earth demeanour. Raksha D Souza and Visvas Paul D Karra
meet him for a tete-a-tete |
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Is a downturn a good
opportunity for start-ups? |
| Regulars |
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