PROJECT
Project Background
In 2015, the 193 member states of the United Nations adopted the historic 2030 Agenda for Sustainable Development. Constituted of 17 sustainable development goals (SDGs) this inclusive framework is applicable to all governments and business, forging the pathway to end social inequality and protect our planet through sustainable development. [1]
Within the same decade, other sustainability frameworks emerged focusing on specific pillars of sustainability (e.g. the Paris Agreement on Climate or the UN Guiding Principles on Business and Human Rights). These frameworks alongside regulation such as the EU Green Deal, EU taxonomy and the Corporate Sustainability Reporting Directive are driving a shift away from sustainability being viewed as a peripheral risk topic for business, to become a more integrated part of the business strategy, focused on positive impact and value creation for both nature and society.
Despite the growing acceptance of ESG by financial institutions, there is still significant confusion around some of the key principles and how they can practically be implemented in the shipping industry.
The shipping industry forms the backbone of the global economy, but it also represents 2% of global energy-related CO2 emissions. Given its environmental footprint, mandatory global greenhouse gas (GHG) reduction regimes – including the Energy Efficiency Design Index (EEDI) and the Ship Energy Efficiency Management Plan – were introduced in 2011, to incentivize shipping companies to reduce their footprint. Further regulatory tools and initiatives have since been brought in to support this industry shift, from the International Maritime Organization (IMO) emission reduction strategy to combat climate change (net zero by 2050), to the inclusion of maritime transportation in its Emission Trading Scheme (EU ETS) in 2024 and the setting of requirements on well-to-wake GHG emissions (FuelEU Maritime) from 2025.
To meet these targets, shipping companies must invest in technological innovations, so that their fleets and their operations can operate more efficiently. However, this transition presents great implementation challenges, from the commercialization of technological innovations to the relevant processes for ensuring greater data availability and transparency both in own operations and across the wider value chain, to meet increased scrutiny from customers and regulators.
Such deep-seated transition affects people at all levels within organizations, as they are required to develop and acquire new skills and competencies to ensure safe and efficient operations moving towards the 2050 IMO target and beyond. Building an ESG mindset within the industry through training will create a cultural shift, holding leadership to account, engaging crew, employees and managers, breaking down barriers and diluting resistance to change. It will create greater transparency across the sector and avoid risks of continued greenwashing and corruption.
[1] Deloitte. (2021). ESG in the Shipping sector
Goals and Objectives
In this context, eSgEA aspires to cultivate a sustainable corporate environment through ESG principles that promote understanding of cultural shifts towards sustainability, streamlining of ESG processes, and fostering transparency & trust within organisations. This goal will be met through the following project results:
- eSgEA training platform
- AI-based eSg bot
- Capacity-building
