Decoding ESG for shipping sector

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The shipping sector is one of the most important to the international economy and is among those heavily affected by the pandemic and the war in Ukraine.

At the same time, the sector’s adaptation to the requirements of criteria related to the Environment, Society and Corporate Governance (ESG) is becoming more imperative.

The executives of the shipping sector attended a discussion on the subject, organised by PwC Cyprus, entitled “Decoding ESG. Moving from theory to practice in the Shipping sector”.

The firm’s CEO, Philippos Soseilos, said the correct application of ESG criteria requires a holistic approach from the sector’s companies since many parameters must be considered.

From decarbonisation to green finance rules and the shipping’s wider societal footprint.

“Given the important role of the shipping industry in implementing the ‘Vision 2035’ for Cyprus, significant investments should be made in initiatives and policies to upgrade the sector.

“This includes issues related to sustainability and utilisation of technology, new investments in Research and Technology and the upskilling of the employees”.

Chris Angelides, an Energy Transition & Sustainability global expert from the University of

Houston argued that organisations must move from just compliance to improving operational efficiency to upgrade their business model.

He explained that the correct application of ESG criteria by shipping companies could lead to a reduction in costs, the protection of the companies themselves and the upgrading of their value.

PwC partners Cleo Papadopoulou and Constantinos Taliotis emphasised that shipping is of great importance to the Cypriot economy, noting that a quick and smooth transition to the new normal is crucial.

It was especially considering the persisting problems in the international supply chain and the energy sector.

The panel discussion covered topics like the speed of energy transition in the current geopolitical environment, sustainable fuels, the impact of ESG on ports and the diversity and inclusion matters in shipping.

There was a reference to the importance of S (social) in the ESG acronyms in Shipping.

The S considers how a company’s operations and policies impact its workforce, communities, other businesses, and society.