The adoption of environmental, social and governance (ESG) criteria is an emerging trend worldwide to evaluate shipping companies. Environment, the first component of ESG, is one of the most important indicators of sustainability and is directly linked to management practices of maritime operations.
Social, the second component of ESG, involves the framework by which a company is guided for the management of its relationships with its staff, suppliers, consumers, and broadly with the whole community. The third component of ESG, governance, provides the framework of rules and regulations based on which the companies are managed and operated. Shipping companies have specific procedures within their operational framework for monitoring the movements of their ships and recording the ports visited by them, as well as measuring compliance.
Discover the leading ESG companies in the shipping industry
Using its experience in the sector, Ship Technology has listed some of the leading companies providing products and services related to ESG.
The information provided in the download document is drafted for ship industry executives and technology leaders involved in shipping ESG solutions.
The download contains detailed information on suppliers and their product offerings, alongside contact details to aid purchasing or hiring decisions.
Key ESG trends in the shipping industry
Decarbonisation and other environmental issues are seen as the most important ESG topics when taking any long-term decision in the shipping industry. The industry accounts for nearly 3% of global greenhouse gas emissions annually. The International Maritime Organization has set a target to reduce carbon emissions by 50% of 2008 levels by 2050 and is exploring ways in which this can be achieved.
The use of alternate fuels such as biofuels, carbon capture techniques and improved lifecycle assessment of assets are some of the ways in which the shipping industry is aiming to reduce carbon emissions. New technologies such as smart vertical aerofoils, the use of wind power for sailing, and intelligent wing sails are also being tested to minimise the carbon impact of shipping.
Shipping companies can also manage ESG issues by identifying ESG topics, raising awareness on these topics, selecting suitable ESG frameworks to meet stakeholders’ requirements, reporting on ESG performance and monitoring them, and promoting ESG-driven culture among employees and staff.