Nature Positive Role of the Ports Sector

Ports are situated at a critical juncture between land, sea and – frequently – rivers, making them particularly reliant on stable environmental conditions and vulnerable to extreme weather events. Overall, 86% of ports are exposed to more than three natural hazards, including cyclones and flooding,65 and many ports are also at risk from rising sea levels due to global climate change.66 Green infrastructure can provide a degree of protection against natural disasters such as storms and flooding. Mangrove forests are one of the best-documented examples of natural or green infrastructure, providing $ 250 million worth of flood protection in coastal regions where they grow. Port operations depend on large amounts of energy to operate equipment and to supply ships with shore power. Currently, many companies are promoting a shift from traditional fossil fuels to electricity, with the aim to supply the majority from renewable sources. The increasing adoption of electric equipment – such as electric container cranes, hybrid tugs and autonomous vehicles – has led to a rising demand for electricity in ports. To mitigate the risk of sudden energy shortages that could potentially result in shutdowns of port operations and surrounding areas, ports are enhancing their self-sufficiency in electricity by developing generation and storage facilities for renewable energy. However, this shift may also have significant implications. Renewable installations (solar or wind) can affect terrestrial or marine ecosystems, while new hydropower projects are major contributors to freshwater species decline. Ports also rely on natural resources such as minerals, energy and water throughout the entire value chain.67 Some of the sector’s dependencies are hidden in its value chain, especially in upstream activities and the transport of resources and people for port construction and operation. Beyond their dependencies on nature to ensure successful port construction and smooth, functioning operations, ports also generate significant impacts on nature. The top four drivers of nature loss in the port sector include land/water/ sea use changes, GHG emissions, pollution and invasive species. Ports should avoid and mitigate these impacts caused by their operations and economic activities throughout the value chain. Top four drivers of nature loss in the value chain of the port sector TABLE 2 UpstreamMidstream (construction and operation)Downstream Land/water/sea use change Greenhouse gas emissions Pollution Invasive species Pressure materiality rating (ENCORE): High Medium Note: See methodology in the Appendix. Conduct company-specific assessment of impacts and dependencies BOX 2 The analysis of impacts and dependencies presented in Chapter 2 is a sector-average analysis for companies in the port sector, but company-specific impacts and dependencies will vary according to their specific activities, supply chains and operational locations. Companies will need to conduct assessments to locate their interface with nature and evaluate their impacts and dependencies using company-specific operational and supply chain information. TNFD’s LEAP approach,68 as well as the SBTN’s step 1 (assess)69 and step 2 (prioritize)70 are useful frameworks to guide companies through their own assessments. The full methodology and results of this assessment can be found in the Appendix. Some of the sector’s dependencies are hidden in its value chain, especially in upstream activities and the transport of resources and people for port construction and operation. These impacts and dependencies strengthen the case for ports to invest in nature and transform their operations to contribute to global nature-positive goals beyond the level needed to comply with international and local environmental regulations. Nature Positive: Role of the Port Sector 19