In this article for the International Maritime Procurement Assocation (IMPA), Patrik Wheater reports on how the drive towards decarbonisation and sustainability is resulting in greater collaboration between shipowners and equipment suppliers, as ESG ratings dominate the procurement process.
Environmental, Social and Governance (ESG) data has been used for years by finance firms looking to align investment with the corporate ethos, but the drive towards ocean sustainability is resulting in more maritime industry companies using ESG metrics not only in the procurement process but as a way of meeting their own emissions abatement targets.
Shipowners and operators in particular are implementing ESG strategies to help make more informed decisions on how best to decarbonise and cut greenhouse gas emissions by 50% by 2030, compared to 2008 levels.
For instance, while Norway’s Siem Offshore has a history of investing in clean tech across its fleet (it was one of the first to pioneer the use of selective catalytic reduction (SCR) to reduce NOx emissions) all procurement decisions are now defined by a comprehensive ESG strategy based on Norwegian Shipowners’ Association (NSA), European Union (EU), Corporate Sustainability Reporting Directive (CSRD), and European sustainability reporting standards (ESRS) guidelines.
“The starting point was about saving fuel, saving money for the charterers [who foot the fuel bill], but it’s about reducing emissions now,” said Siem Offshore’s ESG Director, Jon August Houge.
Siem Offshore, an IMPA member, has worked actively with ESG initiatives for several years, but to better coordinate work throughout the whole organisation, an ESG group was established in October 2021. In March 2022 a dedicated ESG Director was appointed to strengthen and support ESG priorities.
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