Time for action: Why ESG matters for the maritime industry
Environmental, social, and governance (ESG) considerations are increasingly playing a significant role in the investment decisions of marine stakeholders while more and more maritime companies are putting their own ESG reporting strategies into practice.
The success of the shipping industry relies not only on environmental sustainability, but also on social and governance sustainability. The maritime industry has acknowledged the need to focus on ESG to ensure its survival and long-term success, putting human factor at the center.
To that end, one of our current major challenges is to engage our people, create the right culture and reward best practices towards. Getting culture right is essential for any successful transformation. Organizations may make significant investments in ESG-friendly models and initiatives but if they are unable to align hearts and minds and educate people around their ESG goals, then nothing will change.
ESG can be deployed to capture new sustainable business value and mitigate current and future business risks, the Boston Consulting Group (BCG) and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping highlight in their “ESG Playbook for Shipping.
4 reasons why industry needs to act NOW!
#1 We are running out of time
To stay within the 1.5oC scenario, shipping must cut emissions by 45% in 2030
#2 Changing shipping dynamics are amplifying the need for ESG
New roles and alliances emerge in shipping as the race to zero continues
#3 Regulators, investors and customers are demanding change
Shipping is facing a wave of new ESG regulation, e.g. EU ETS, CSRD, CII
#4 The scope of expected sustainability is widening in shipping
Shipping is lagging behind on ESG and must speed up for a just transition