The Maritime Anti-Corruption Networks (MACN) published its annual report for 2023, highlighting the multiple challenges that the maritime industry is facing.
Navigating increasing geopolitical uncertainty and risks
As MACN CEO, Cecilia Müller Torbrand, explains, it is becoming clear that the maritime industry is navigating increasing geopolitical uncertainty and extensive risks. From Ukraine to the Red Sea, merchant ships have been directly targeted as part of direct and proxy conflicts and companies have diverted vessels to alternate routes. New trade routes may mean new threats and managing port calls with less support infrastructure may increase corruption risks. Sanctions, compliance, and trade rule enforcement are likely to increase for all companies involved in the moving and management of trade.
ESG visibility and regulatory responses
MACN has also seen considerable changes in the public visibility of Environment, Social, and Governance (ESG) issues. There is public frustration around the perceived lack of tangible ESG results despite numerous and (sometimes) overstated corporate efforts. This has resulted in regulatory responses to related Greenwashing, and the EU Parliament passing groundbreaking legislation. Companies who are Greenwashing – making unsubstantiated claims – now face considerable penalties, MACN CEO highlights.
Third-party risks and compliance challenges
Outsourcing risks and delegating unethical behavior in high-risk markets has been a no-go for a long time. However, third-party liability is still one of the biggest challenges for companies with global operations and we see a trend from regulators to include the activities and actions of local business partners and suppliers in corporate Anti-Bribery and Corruption compliance.
According to Cecilia Müller Torbrand, to comply with current laws and to prepare for more scrutiny in this field, collective action is instrumental. MACN has been successful in engaging the value chain of maritime trade and we see this important work to continue.
MACN’s role in industry governance
Over the last 24 months, MACN’s work and systems flexibility have positioned us well to support the industry through these changes. Frontline training, government and regulator engagement, and investment in compliance technology have made our role in our members’ governance work increasingly important.
… noted Torbrand, adding that in too many discussions, the importance of good governance is overlooked or underappreciated for its impact and measurability including how it ties into the success of areas (“the E and the S”) where companies need to demonstrate impact.
