Japanese majors Kawasaki Kisen Kaisha (K Line) and Nippon Yusen Kaisha Line (NYK Line) are leading the way to a net-zero, nature positive and equitable future.
It is known that in the year of the IPCC’s Sixth Assessment Report and COP26, the need for transformational, urgent and collaborative change across the world is more urgent than ever. In fact, environmental issues such as climate change, water risk and deforestation are interconnected, and companies must go further and faster to manage them together.
Following the above, Carbon Disclosure Project (CDP) issued its 2021 company scores, highlighting their environmental leadership, based on their level of transparency and performance on climate change, forests and water security.
In 2021, a record-breaking 13,000+ companies representing over 64% of global market capitalization disclosed through CDP – 35% more than last year, and over 141% more than when the Paris Agreement was signed in 2015.
As informed, only two of the 200 companies to achieve an A rating from the global non-profit investors’ organisation Carbon Disclosure Project (CDP) for 2021 are shipping groups. Namely, Kawasaki Kisen Kaisha (K Line) and Nippon Yusen Kaisha Line (NYK Line).
The number of companies on the Climate A List has dropped from 280 last year to 200 in 2021, as the consensus on what qualifies as climate leadership has evolved and the bar raised. Much of the low hanging fruit at companies’ disposal has now been utilised and more ambitious action is urgently required.
Among other criteria, to score an A, companies must have robust governance and oversight of climate issues, rigorous risk management processes, verified scope 1 and 2 emissions and be reducing emissions across their value chain.
Most also now have well established emissions targets that have been approved by the Science Based Targets initiative, and evidence of targets which cover their scope 3 emissions.
What is more, AP Moller-Maersk, Carnival Corp, Euronav, HMM, Hapag-Lloyd, Mitsui OSK Lines, Norwegian Cruise Line, Pan Ocean, Royal Caribbean Cruises and Swire Pacific managed to achieve B ratings for climate change.
In addition, Odfjell and Star Bulk Carriers were awarded B-, while DFDS, Norden, Wallenius Wilhelmsen, Wilson Sons Holdings and Yang Ming Marine Transport all got C grades — the level the shipping sector has averaged over the previous 21 years the CDP has operated its reporting platform.
D ratings went to MISC, Sinotrans and U-Ming Marine Transport and Cosco Shipping Energy Transportation got a D-.
Concluding, by scoring companies and cities, CDP aims to incentivize and guide them on a journey through disclosure towards becoming a leader on environmental transparency and action.
Companies that publish their environmental data consistently and on an annual basis can protect and improve their reputation, get ahead of regulation, boost their competitive advantage, uncover risks and opportunities, track and benchmark progress and get access to lower costs of capital. There is also evidence to suggest that companies that score highly on environmental metrics perform well financially.
….Dexter Galvin, Global Director of Corporations & Supply Chains at CDP, said.
