Lately, we see more and more shipping organizations striving to meet a management concept for sustainable development. Is it because of the pressure of new regulations put in place? Is it because of the socio-economic factors and market related aspects? Or because of many human factors? Indeed, it would be interesting to examine the actual value of sustainability in shipping industry today.
Sustainable shipping: One of the biggest challenges of the 21st century
Let’s take it from the top. Sustainable transport is recognized as one of the biggest challenges of our century. Although shipping, compared with other transport modes, is relatively safe and clean, it has a significant impact on the environment. It is imperative though that the industry behaves in a more sustainable manner. Environment, Society, Economy; the development of Sustainable Shipping is the result of the strengthening of these three “pillars”.
The IMO MEPC is using legislative instruments, codes and guidance to achieve a more sustainable shipping with many different stakeholders involved in the process. Last month in London, a carbon dioxide reduction deal was reached, agreeing that emissions must be cut by 50 percent by 2050. IMO’s delegates decided there should be a 40 percent improvement in ship efficiency by 2030 and a 50-70% improvement by 2050. Finally, up to 100 IMO Member States who agreed on IMO’s initial strategy which was adopted by IMO MEPC 72 while two countries only objected this deal; the US and Saudi Arabia.
We already now know the “What”. Now, we need to determine the “How” of reducing GHGs by 50% in 2050 over 2008 levels. We need a strategy and this is going to require new and original partnerships! Therefore, the real value of sustainability leans on the organizations’ efforts to meet such policy measures, manage their social and environmental impacts and improve operating efficiency and natural resource stewardship; this remains a vital component of shareholder, staff members, and stakeholder relations.
The real value of sustainability in shipping
The answer to that question goes beyond how “green” the industry is by factoring in the costs and benefits of that sustainability. In other words, the value of sustainability is hidden behind long-term performance improvements. The following five criteria reveal the value of a sustainable shipping organization:
- Navigate Environmental Regulations
Ship operators are not only required to comply with new environmental regulations and policy measures but also to engage creatively with policymakers to help craft regulation that supports forward-leaning industry structures and makes optimal use of its capabilities.
- Meet the expectations of staff members
Staff members are a vital part of an organization’s sustainability. Effective employee training programs, work-life balance policies as well as respecting and protecting human rights sustain long term performance improvements.
- Increase efficiency and innovation
Developing new, “green”, alternative and cost-effective solutions and services helps also the clients who seek to mitigate their own sustainability footprints. For example, reducing reliance on fossil fuels and becoming even more energy efficient is a sign eco-friendly shipping future.
- Improve firm reputation
Expanding transparency and reporting positive deeds are the two most important ways to build public trust in maritime business. Most of shipping organisations and oil majors issue sustainability reports; many which have helped them improve firm reputation and partner with stakeholders throughout the supply chain in order to generate socioeconomic and environmental benefits!
- Bring Profit
Regulation and environmental protection remain key drivers of initiatives, but the economic bottom line is still dominant and needs to be targeted in efforts to deliver any sustainable shipping standard.
Are right mindset and resources put in place?
All in all, to have a valuable sustainable shipping, industry right mindset and resources are necessary. Since many different stakeholders are involved in the process, one of the critical factors in supporting of sustainable shipping is the understanding of all parties concerns, needs and expectations. At this point the new regulations put in place have created queries with respect to how charterers, vendors, business partners and stakeholders are paying attention to these drastic environmental, regulatory and technological developments; maybe their neutral attitude downplays the importance of sustainable shipping, or maybe not. One thing is sure, challenging times are ahead for the global maritime community!
