In the latest episode of Shoreline’s Maritime Risk Podcast, Anne Katrine Bjerregaard from the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping and Peter Jameson from Boston Consulting Group shared their expertise on the complexities of ESG (Environmental, Social, and Governance) compliance in the shipping industry. The episode, recorded on June 19th, 2024, is a must-listen for shipping executives seeking to understand the evolving ESG landscape and leverage its benefits for long-term sustainability.
Integration of ESG Strategies:
Anne Katrine Bjerregaard highlighted the pressing need for the shipping industry to catch up with other sectors in terms of ESG reporting and disclosures. “The result is that shipping is really lagging behind other industries when it comes to ESG reporting and disclosures,” she noted. Bjerregaard emphasized the increasing pressure from regulators, customers, and investors for more transparency. She advised, “If you elevate ESG to become a strategic priority that’s anchored at board level, then you also take a more constructive approach to the topic.”
Peter Jameson stressed that sustainability should not be viewed in isolation but embedded within the overall company strategy. “Sustainability should be embedded in your strategy. It should be part of your overall company strategy, not something else on the side,” he said. Jameson added that viewing ESG through a lens that includes positive economic impacts helps reveal the benefits, rather than just the costs, of sustainable practices.
Financial Implications:
The financial landscape for companies investing in ESG practices is changing, with a clear focus on return on investment. “What we are not advocating for is reckless spending of well-earned company’s money on topics that will lose that company money. What we’re advocating for is very much a return-on-investment point of view when it comes to investing in ESG,” said Jameson. He highlighted various business cases where ESG investments have led to cost savings and enhanced profitability.
Collaboration Across the Value Chain:
Collaboration is essential for achieving ambitious ESG targets. Bjerregaard emphasized the importance of working with suppliers and customers to address both decarbonization and social governance challenges. “There is a need for collaboration across the value chain. It’s very difficult to be super ambitious on these topics if you don’t collaborate with your suppliers or customers,” she said.
Technological Innovations:
Technology plays a pivotal role in advancing ESG goals. While innovation is crucial, Bjerregaard pointed out that much of the necessary technology for emission reductions is already available. “It’s not all innovation. A lot of the technology that we need to progress with, for instance, energy efficiency, that’s off-the-shelf technology. It’s out there, it’s readily available, and it’s just about getting it on board the ships so that we can reduce emissions,” she explained.
Future Trends in ESG Governance:
Looking ahead, increased transparency and rising regulatory ambitions are key trends. Jameson highlighted the importance of a strong governance structure around ESG, anchored at the strategic level. “The companies who are doing really well in this topic have a very strong governance structure around ESG that’s anchored at the strategic level, at the board level,” he stated.
For shipping companies and stakeholders looking to navigate the ever-evolving ESG landscape, this podcast episode is indispensable. The insights and practical recommendations offered by Bjerregaard and Jameson can help companies not only comply with emerging regulations but also leverage ESG for long-term value creation.
Listen to the full episode here. (Website link required once uploaded)
You can access The ESG Playbook for Shipping here
Thanks go to Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping
And The Boston Consulting Group for their expert contributions to this essential new Shoreline Maritime Risk Podcast.