Under the Corporate Sustainability Reporting Directive (CSRD), listed companies with more than 500 employees are required to report on their ESG impacts, risks, opportunities, policies, and performance starting from the 2024 financial year. The ‘first wave’ of reporters includes shipping companies from across the EU, who revealed how sustainability shapes the sector. We analyzed the CSRD reports from ten* large companies in the shipping sector and here are four insights:
1. Climate change poses significant physical and transitional risks to shipping
Climate change affects the bottom line of shipping companies, with climate change adaptation and mitigation identified as a significant financial risk by all companies. On the one hand, shipping companies are called to adapt to the physical risks of climate change such as changes in wind patterns and rising sea levels, which increase the operational costs and place extra strain on their resources.
On the other hand, shipping companies are placed under intense regulatory and consumer pressure to reduce the carbon intensity of their fleet, improve energy efficiency and ultimately, decarbonize.
The main regulations affecting the sector come from the EU and the IMO, summarized below:
| Regulation | Application year | Description | Geographical scope | Goal |
| FuelEU Maritime
|
2025 | Sets maximum limits for greenhouse gas (GHG) intensity for ships above 5,000 gross tonnage | All ships calling at European ports, regardless of their flag | EU to become climate neutral by 2050
(under the EU Green deal) |
| Emissions Trading System (ETS) | 2024 | Obliges shipping companies to purchase emission allowances for each tonne of reported CO2 or equivalent.
From 2026, it will be extended to methane (CH4) and nitrous oxide (N2O) |
All ships calling at European ports, regardless of their flag | |
| EU Monitoring, Reporting and Verification Regulation (EU MRV) | 2023 | Requires large ships above 5,000 gross tonnage, cargo ships between 400-5,000 tonnage and offshore ships of 400 gross tonnage to monitor and report their CO2, methane (CH4) and nitrous oxide (N2O) emissions | All ships calling at European ports, regardless of their flag | |
| International Maritime Organization Carbon Intensity Indicator (CII) and Energy Efficiency Existing Ship Index (EEXI) | 2023 | Requires all ships to calculate their Energy Efficiency Existing Ship Index (EEXI) and to establish their annual operational carbon intensity indicator (CII) | Global | Net zero GHG emissions from shipping by 2050 |
2. Decarbonization comes with opportunities
Where there is a crisis, there is opportunity. Nearly all companies reported that transition to cleaner energy and decarbonization already has or could have a positive impact for their bottom line. When done right, green transition brings business opportunities with new clients that are conscious about sustainability, brings cost optimization, builds organizational resilience and ensures operational continuity. At the same time, there is now a wider availability of green finance, such as the Green Shipping Fund, which can ease the burden of transition costs to shipping companies.
3. Health & safety and diversity & inclusion are at the top of the social agenda
Unsurprisingly, the issue of health and safety is the most reported material topic under Social, with risk of injuries to crew and workers on board ships posing significant negative threats to employees and risks to shipping companies. Companies are reporting substantial resources devoted to training, health and safety management programs, whistleblower hotlines, surveys and programs to promote work-life balance and mental health.
Diversity and inclusion are also high on the social agenda, with shipping companies recognizing the missed opportunities that come with the lack of diversity. Most companies studied have set a target of 30 to 40% for women representation either across the board or for leadership levels. Norden, a dry cargo and tanker company based in Denmark, explains:
“By improving DE&I figures, we are not only setting a progressive example but also enhancing our potential problem-solving abilities and overall operational performance”.
4. Supply chains matter
Under the CSRD, companies are required to map their value chains: from the upstream procurement of raw materials to their own operations and downstream to the end users. They are then called to integrate their suppliers’ carbon and social footprint in their reporting, providing a more holistic evaluation of their impact.
The shipping industry has been put in the spotlight for sustainable supply chains, as an integral part of the supply chain of their customers, and as a customer to their own suppliers. Major shipping companies have integrated ESG criteria into their procurement processes, conduct ESG risk assessments and onsite audits, and provide training for their suppliers and procurement staff.
What about the mid-sized companies?
The shipping companies studied represent some of the leaders of ESG efforts within the industry in the EU. The picture for mid-sized shipping companies is different, as they struggle to integrate ESG into their strategy, comply with regulations and properly report under the ESRS standards.
Below is BTSEE’s ESG maturity score, distinguishing the difference between companies that are only getting started on their ESG journey and companies that are leading their field:
| BTSEE ESG maturity score | |||
| Low | Medium | High | |
| ESG strategy | General vision and commitments
|
Time-bound targets | Sustainability embedded in the business model |
| Governance | No dedicated ESG team | Dedicated ESG team | Executive ownership of ESG at senior management or Board level |
| Reporting | No previous ESG reports published | Reports published with few key metrics but without following international standards | Published reports compliant with the CSRD, GRI or SASB |
| Materiality assessment | No materiality assessment | Financial or ‘single’ materiality, assessing how ESG impacts the company | Double materiality assessment involving stakeholders from across the value chain |
| Data collection and availability | Limited data collected, mostly under ‘E’ | Collection of some metrics under ‘E’ and ‘S’ | Extensive data collection and dashboards aligned with the CSRD requirements |
| Environmental impact | Limited environmental data available | Scope 1 and 2 emissions calculation | EU taxonomy alignment
Scope 1, 2 and 3 emissions calculation |
Moving from low to high maturity requires a well-structured sustainability transition roadmap, tailored to each company’s needs and resources. When it is done right, it helps companies unlock their hidden value while meeting regulatory and stakeholder expectations.
Our team of experts is here to provide turnkey solutions and help you draw your company’s path towards true sustainability.
*This analysis was based on the CSRD reports of: Mærsk, DFDS, BW Offshore, Hapag Lloyd, D/S Norden, Odjefell Shipping, Viking Line, Wallenius Wilhelmsen, Piraeus Port Authority S.A., Starbulk carriers SA
