‌Environmental, social and governance (ESG) performance is quickly becoming a differentiator in the maritime job market as young people in particular look for greater social and environmental impact in their work. Fortunately, as the demands around ESG have increased, so has the availability of resources for companies looking to begin or improve their ESG reporting.

Gina Panayiotou, ESG Manager at West of England P&I Club told ICS Leadership Insights: “The key metrics maritime companies should be monitoring are crew wellbeing, diversity and inclusion (especially within boards), talent retention, fleet efficiency, and reduction of carbon footprint, emissions, and other forms of pollution which cause harm to marine life and the health of our oceans.” 

She noted that shipowners seeking clear guidance and supporting documentation on ESG will find assistance in the various reporting standards, such as the GRI and the EU’s new ESG reporting framework the Corporate Sustainability Reporting Directive (CSRD). 

Demonstrating action and objectives in these areas can serve as a differentiator when it comes to securing new business, especially as cargo owners and retailers focus more on the environmental and social impact of their supply chains. A focus on ESG may also prove beneficial when it comes to recruiting the next generation of talent in the maritime industry. 

Speaking at the recent Salvage and Wreck conference in London, Andreas Brachel, Head of Environmental Claims at Gard said: “Young people in particular, want to work for companies that have a focus on sustainability, but also experienced, high performing professionals are looking for employers or associations that they are comfortable working with.”

Nina M. Hanevold-Sandvik, Vice President, Casualty and Major Claims at Skuld added that the insurance firm had over 150 applicants for a sustainability related position for a newly educated person. “There are all kinds of surveys these days showing that people who are graduating from university really want to work at employers that offer sustainability as part of the work,” she said.

The drive for an increased focus on sustainability at Gard came from a range of stakeholders, said Brachel, including the members and clients in its governing bodies. That demand has since been strengthened by the development of national and regional regulations such as the Norwegian Transparency Act and the CSRD.

Current ICS tools and initiatives such as the Maritime Just Transition Task Force and Maritime Diversity and Inclusion Charter align with ESG objectives, appraising the current state of company efforts and providing a structure for reflection and progress towards objectives.