A new report from Lloyd’s Register looks at ESG maturity in the shipping industry. The findings are a mixed bag. While the report indicates that many firms are shoring up their governance, companies lag on climate and supply chain issues. Lloyd’s summarizes their findings in a press release:
“The report’s findings show that while ESG frameworks are now widely in place, the industry is yet to translate ambition into consistent operational outcomes.
Shipping currently scores an average of 56 out of 100, placing it in the lower ‘Advanced’ category, with most companies having established governance structures but falling short in areas such as environmental execution, supply chain transparency and assured performance data.
The analysis identifies a structural imbalance across the industry, with 27 of 48 companies scoring significantly higher on governance than on environmental performance, highlighting a gap between ESG strategy and operational delivery.”
These findings reflect a broader trend we’ve seen across many industries. While plans and frameworks are in place, action and follow-through are lacking. Many companies struggle to operationalize ESG. Planning and strategy are necessary for successful sustainability programs, but those plans must be carried out to achieve meaningful results. Companies face many hurdles in implementing ESG practices. These include limited resources, a lack of scalable climate solutions, and an unwillingness to disrupt years of practices already in place. However, if plans remain hypothetical and are not acted on, companies and society at large cannot reap the benefits of sustainability.
Our members can learn more about ESG in the transportation industry here.
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