The shipping industry contributes 3% of worldwide greenhouse gas emissions, equivalent to the annual CO₂ emissions of Germany, the sixth biggest emitter by country. A fact that underlines the vital need to change. The challenges are evident in the numbers: only 46% of the largest shipping companies have made pledges in line with IMO or net-zero commitments. In addition, there is limited sustainability reporting of ESG metrics—only 41% have GHG and sustainability reporting compared with 56% in the oil and gas industry.

The business landscape is rapidly changing on ESG. New regulation has been passed such as the inclusion of shipping in the EU’s Emission Trading Scheme (ETS), the IMO’s EEXI and CII ratings, and CSRD-mandated ESG disclosures. Customers are increasingly willing to pay a green premium and many investors are looking to divest from carbon intensive assets without a clear decarbonization strategy. To navigate the changing landscape and capture ESG value pools, while mitigating key risks, it’s best to have a structured and proven approach. The Playbook embodies such an approach and is developed to assist shipping companies of all sizes on their ESG journey.