ESG in Maritime – Act now for a sustainable future
Navigating the complexities of ESG is crucial for the shipping industry. Understanding how to manage and control the impacts, risks and opportunities affecting your maritime business is key.
The shipping industry is under heightened scrutiny regarding environmental, social and governance (ESG) issues from various stakeholders, including regulators, financiers and cargo owners. At DNV, we understand what truly matters and can assist you in assuring stakeholders of your ESG performance.
The evolution of ESG: from reporting to strategic integration
ESG has evolved from a high-level reporting exercise to a scientific approach to data collection and analytics. It is now integral to strategic considerations at the Board level. Consequently, companies are integrating ESG metrics into their core strategies, enhancing transparency, accountability and long-term value creation in response to regulatory and market demands.
Key considerations for shipowners in managing ESG risks and opportunities
The ESG frameworks are geared towards industry and therefore require adaptation to fit with the shipping industry. Navigating this landscape is complex. It requires insights and experience with shipping industry regulations, standards and reporting principles – to ensure cost-efficient implementation and minimize the burden on the organization.
"DNV provides best practices and the ability to benchmark your shipping company against competitors. With our expertise and guidance, we help you adapt to the ESG frameworks effectively and efficiently to achieve compliance and drive sustainable growth,” remarks Carl Erik Høy-Petersen, Business Development Leader
Comprehensive ESG compliance in the shipping industry
The shipping industry already complies with numerous regulations, including:
- MRV, DCS, CII, FuelEU Maritime, EU ETS, UK ETS
- EEXI, EEDI, SEEMP Part III
- ISM, MLC
- Emissions Control Areas (ECAs), NOx, SOx
- Ballast water management and biofueling, Marine Protected Areas (MPAs)
Reporting requirements are becoming more comprehensive, especially for European companies aligning with the Corporate Sustainability Reporting Directive (CSRD). This mandates reporting on impacts, risks and opportunities across the entire value chain, including climate change, pollution, Scope 3 emissions, biodiversity, circular economy, working conditions and business conduct.
ESG should be viewed as a business opportunity rather than a reporting burden. Aligning efforts with ESG ambitions and business operations can enhance resilience and position shipping companies for long-term success.
Trusted ESG advisors for the maritime industry
DNV builds on the UN Sustainable Development Goals (UN SDGs) and existing frameworks such as the Corporate Sustainability Reporting Directive (CSRD), European Sustainability Reporting Standard (ESRS), International Financial Reporting Standards on Sustainability (S1 & S2), with regional interpretations on the Task Force on Climate-related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB), Global Reporting Initiative (GRI), Greenhouse Gas Protocol (GHG Protocol) and the EU Taxonomy.
Adapting ESG frameworks for the shipping industry
At DNV, we tailor ESG frameworks to the shipping industry, offering the following services:
- ESG strategy development and implementation: We turn ESG into a business opportunity, aligning requirements with maritime regulations and stakeholder expectations to ensure value for your investments.
- Materiality assessment: Our experts conduct materiality assessments, combining industry experience and ESG expertise to minimize your workload and provide transparent documentation of your ESG priorities.
- ESG reporting: We transform existing data streams into efficient ESG reporting, leveraging our maritime industry knowledge and expertise in ESG requirements and how to report on EU Taxonomy alignment.
- Decarbonization and climate transition plans: We establish cost-efficient decarbonization and climate transition plans for companies, fleets and ships, in line with regulatory, stakeholder, CSRD and IFRS requirements.
- ESG due diligence: We identify and manage ESG risks and opportunities, and then support companies in complying with ESG due diligence, corporate governance and transparency regulations (e.g. Norwegian Transparency Act) as well as the EU Corporate Due Diligence Directive.
- Green, sustainability-linked, and transition bonds and loans: We secure access to capital through Second Party Opinion and readiness assessments, ensuring yearly KPI and performance assurance.
