The subject of ESG is becoming an increasingly important topic for all shipowners, investors and financiers across all major industries today. ESG isn’t just the responsibility of the financial investors however, it is imperative that all companies understand the environmental and social consequences of their business operations and ensure that there is an appropriate level of governance and support in place.
The global maritime industry is no different, and as a hugely capital-intensive industry, attracting sources of investment capital from around the globe, shipping’s ESG profile is arguably one of the most high-profile of all industries today.
Ships face a huge variety of ESG risks and challenges which begin in the construction phase, continue throughout the trading life of the vessel(s) and finally conclude at the end of their lifecycle. The oceans represent over 70% of the Earth's surface and it is the responsibility of those who use the oceans for commercial advantage, to do so responsibly, sustainably and with our collective future in mind.
As providers of capital, banks, investors, funds and other sources of finance have a direct responsibility to ESG and have a huge opportunity to shape the way that we address these issues now and in the future.
At Idwal, we are committed to ESG compliance right across our own business and we support the need for accountability, commitment and transparency across all aspects of the global shipping industry in respect of climate change and wider environmental, social and governance factors.
Our commitment extends both to supporting our customers’ businesses, as well as our own and we have developed several supporting ESG-related initiatives and services which can help you evaluate and mitigate the ESG risks across your business.
Compliance is not enough. At Idwal we look “beyond compliance” to see where we can make a difference.
The letters "ESG" stands for environmental, social, and governance.
Until recently, these three letters meant very little to many shipping company executives and their financial investors. Today, most executives, and their finance partners fully understand that ESG-impact must be considered alongside almost every business decision; from yard selection to chartering-decisions, trading routes, crewing and resourcing, to ship-recycling , the impact of ESG runs seamlessly through every part of the shipping value-chain.
However, methodologies for including ESG considerations into day to day decisions and access to reliable data, varies considerably and whilst it has progressed considerably in recent years, it remains a challenge for many organisations.
The environmental impact of shipping covers a wide variety of factors, all of which have varied degrees of impact. Much of the environmental issues have been covered by, and are subjected to, increasing levels of legislation and regulation from the likes of IMO. The most critical and high-level environmental categories can be defined as:
The social impact of shipping covers a wide variety of factors, both at sea and on shore. Whilst there are some legislative measures in place, many social issues in shipping require further support and regulation. There are several organisations supporting and promoting improvements to social standards in shipping, often without clear directives or legislative support. The most critical and high-level social categories can be defined as:
Governance in shipping is a complex topic which is exacerbated by an army of intermediaries and ownership structures which together do not necessarily promote a culture of transparency across the industry. It is essential that shore-based procedures, policies and protocols catering for the corporate entity are implemented and translated into procedures which can be adhered to onboard, a well as ashore. The most critical and high-level governance categories can be defined as:
We have developed a range of ESG-focused services which can be applied to your business to help you make smart decisions related to ESG across your vessel(s), your portfolio or across your organisation.
Whether you’re a shipowner, investor, financier, charterer, insurer or manager – our ESG services can be tailored to meet your specific business needs.
Our ESG supplement can be added to any standard Idwal inspection service, such as our condition or pre-purchase inspections, and provides a high-level yet concise ESG assessment of any vessel type from an onboard perspective.
Utilising our unique digitalised framework, and our global network of expert marine surveyors, our ESG supplement will generate a initial ESG grade of your vessel which can be used to quickly determine ESG-compliance onboard.
Our unique ESG assessment calculator assesses the current environmental, social and governance impact of a vessel or a fleet of vessels, and provides a likely future trajectory of compliance by assessing a number of relevant factors such as the current and predicted EEOI; SOx and NOx factors; Cargo environmental impact; crew welfare; security; business ethics policies and more.
Specifically supporting investment-decisions in respect of whether a vessel complies with current legislation and crucially predicts the likelihood of future compliance against IMO 2030 carbon reduction targets and other inbound legislation.
We can also work with you to offer advice in respect of onboard measures which can be implemented to further improve your ESG rating over time.
Our ESG asset assessment inspection service will be launched in May 2020 and will provide our clients with a comprehensive and unrivalled assessment of ESG compliance onboard any vessel.
Requiring 8-10 hours onboard and focusing solely on ESG and compliance, our ESG service will consider all elements of E, S & G onboard any vessel and will provide a unique Idwal ESG grade for every ship. This service will offer an unrivalled level of detail on all aspects of ESG compliance onboard and will be supported by our data and fleet benchmarking analytics.
Our ESG company assessment service will be launched in May 2020 and will provide our clients with a comprehensive and unrivalled assessment of the ESG commitment and compliance of any ship manager, owner or associated company. Requiring a two day onsite audit and focusing solely on ESG and factors affecting compliance, our ESG assessment service will consider all elements of E, S & G and how companies implement their processes and procedures across their business units and into their vessels, and to what extent they are seeking to go “beyond compliance”. Audited companies will be awarded a unique Idwal ESG compliance grade which can be used to showcase to investors and financiers the ESG compliance of your company.
Banks, funds, leasing companies, and ship owners around the world use Idwal ESG services to make smarter decisions towards their internal targets.