Sustainability is nor a tick box or an outcome

In 2023 Sustainability is more than a tick box or an outcome

July 5, 2023

Sustainability is nor a tick box or an outcome

In 2023 Sustainability is more than a tick box or an outcome

July 5, 2023

Sustainability is not a tick box or an outcome

In recent years more and more companies are integrating ESG and Sustainability factors into their holistic way of working, philosophy, and development. It is in practice a set of measurable factors that determine non-financial parameters of companies’ operations, which have a direct or indirect impact on the economy, humans, and the environment in which they operate.

sustainability

Both the daily increasingly urgent need to address climate change and the effort to harmonize states and companies with international practices and regulations to achieve a better and more sustainable future for all by 2030 – in accordance with the plan and goals of the United Nations, now makes it necessary for every company to adopt ESG measures and practices in order to be able to achieve sustainable development by demonstrating environmental and social responsibility.

The letter “E” refers to the environment and is probably the most already measured area of the three, since methodologies for measuring indicators and impact have existed for many years. They are, for example, emissions of gases, toxins, and waste, supply of raw materials, packaging and waste, energy consumption, and the use of energy from renewable sources.

All companies in the industry should consider and act to prevent and significantly reduce sea pollution, sustainably manage and protect marine and coastal ecosystems, and minimize and address the effects of ocean acidification. At the same time, they should move towards strengthening their resilience and capacity to adapt to climate-related risks and integrate climate change measures into their policy, strategy, and planning.

The IMO supports the goals for the management and protection of marine and coastal ecosystems, through the creation of Special Areas and Highly Sensitive Marine Areas, while efforts to protect marine biodiversity are mainly summarized in its work on mitigating the threat posed by shipping harmful invasive species, reducing underwater noise from ships and adopting measures to avoid collisions between vessels and marine mammals. The IMO’s regulations regarding the discharge of harmful waste from ships are part of the Global Partnership on Marine Litter.

The letter “S” refers to the pillar of society and refers to the social responsibility that every company must demonstrate both in its internal and external environment. As a human-based pillar, it deals with areas that are more difficult but practicable to measure such as work, health and safety, human rights, non-discrimination, equal treatment, education, etc.

Significant changes in regulations and legislation are expected in this area to ensure appropriate labor standards. For the shipping industry, the proactive focus on the safety and welfare of seafarers will meet regulations & legislation’s requirements. Human claims are one of the most frequent types of marine insurance claims and concerns, for example, sick crew members or passengers, maritime accidents, refugees, etc.

The letter “G” refers to corporate governance, supply chain supervision, communication with stakeholders, transparency of terms and transactions, and control of monopolistic practices. Here everything starts with the way, the rules, the procedures by which each company is managed and operates the control methods, and the harmonization with the respective regulations and legislative frameworks. Especially in the shipping industry, the harmonization requirements are a complex system as they are often subject to multiple frameworks of different countries or associations.

Until recently large corporate organizations were the ones that had a structured ESG policy. This was mainly due to the obligation to make reports not only corporate and financial but also ESG & sustainability. At the same time, the obligation to comply with specific rules, conditions, and indicators pushes companies to establish internal operating rules that define an integrated framework. Now the landscape has changed. Already the EU will gradually impose the submission of ESG reports by public and private companies. However, regardless of the obligation, the number of small companies deciding to design similar reports is increasing, realizing that society, clients, and consumers are increasingly demanding products and services that serve ESG rules and practices.

Additionally, regulators increase regulation on ESG issues, employees want to work for employers that integrate ESG into their purpose, and finally, investors and financial institutions want more data on a company’s ESG performance company. Regarding the financial sector, financial institutions assess the actual exposure to ESG risks and the performance of a company, and financing terms and creditworthiness are already beginning to be linked to the environmental impact of operations. In addition, investors are looking for ESG data before proceeding with any final evaluation of an investment plan. All this makes the environment fiercely competitive, with ESG policy being a big advantage.

As the maritime world is getting increasingly complicated and the need for niche, expert consulting on a wide range of issues, is becoming increasingly obvious. The aim of Margetis Maritime is to provide a more comprehensive, holistic approach to consulting services to maritime institutions, depicting the modern needs of shipping.