Executive Foreword
As the industry begins to build back after two turbulent years, it seems right to pause and reflect on what we can learn from these times, and how we can use this opportunity to grow: to become more resilient, safer, and in-step with the sustainability-driven change we all are experiencing. I am proud of the spirit of enthusiasm in which the Group has embraced this chance. We have reinforced our ambition to be the partner of choice in the industry – the ability to tackle and engage with ESG matters head on is what we believe will be formative in the years to come. To this end, not only am I encouraged by the progress we have made in the short time we have collected and disclosed metrics through our ESG reports, but I am heartened by the sheer ambition of the Group. Some hard numbers to back up this progress – in the past year emissions have fallen 16% per mile travelled compared to 2021; the number of marine casualties has fallen by 42%, and deficiencies and detentions have fallen 21% and 61% respectively – none of the above can be considered a mean feat, as our bar has always been high. Improvements like these are a credit to my colleagues across the globe. Thank you all for your work in the last year. In the past year we also conducted out first Task Force on Climate-Related Financial Disclosure (TFCD) session and began to implement improvement strategies to align with its recommendations – a report of our climate risks and mitigation strategy can be found on page 16 of this document. We found this process incredibly fruitful and encourage our peers to start out on the journey have they not already done so - we have an ambition to lead the industry, but others have a duty too, to follow in improving and bringing the whole industry up in the eyes of our shared stakeholders. Not only does this process demonstrate to stakeholders and partners that meaningful steps are being taken in a holistic risk management process, but it has helped us identify gaps in our climate-resilience and articulate our strategy to rectify them. In this reflection of the last two years, I have noticed the speed in which ESG matters have begun to formalise. When we started on this journey it was on a voluntary basis, now numerous global mandates, as well as business partners, are demanding a level of disclosure we would not be prepared for had we not been ahead of the curve. In this spirit we are continuing to lead the industry, knowing that the granularity and depth of disclosure will only increase. We have started the process of full GHG verification, including conducting a study on how to qualify and capture our Scope 3 emissions – a task that has not yet been done in the industry. Further to this, we have voluntarily commissioned the development and implementation of a framework to increase the robustness of our supply chain due diligence – again, the first in the industry to do so.
We know these issues are coming, and we fully intend to be there, prepared, for our clients when they need us to support them. In November 2021 V.Group partnered with the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping to help the industry transition to a net zero future. As part of our commitment to the partnership, we work closely with the team at the Center in Copenhagen to support their work and provide practical guidance regarding safe solutions to achieve decarbonisation aims. As a strategic partner, V.Group intends to support its customers in the use of transition fuels, including green ammonia and hydrogen, in anticipation of a stricter regulatory climate. V.Group makes several of its marine specialists available to the Center in Copenhagen to provide insights about the operational practicality of proposed initiatives in a live setting. To support this partnership, we have established a dedicated function, Sustainability & Decarbonisation to position V.Group firmly at the forefront of a zero-carbon maritime future, in line with our stated strategic objectives within ESG. Today, and increasingly in the future, we will be relied upon to lead the way towards lowering carbon emissions through adoption of pioneering and transitionary fuels, new technologies, digital practices, improving compliance and reporting standards etc. Moreover, while today command of ESG is a factor of differentiation, tomorrow it will become table stakes for commercial relevance with shipping clients, just as safety is today. While we do not have all the answers, we are making progress. Perhaps the industry is hesitant to develop as we think that the task it too large to comprehend. But, in truth, the task we all face, together, can only be tackled in daily advancement. There is no silver bullet. The past few years on this journey has taught us that clarity is the best place to start for more meaningful development. This clarity has given us the ability to determine how to move forward: how to create open and informed communication, both internally and with our clients on how to progress ESG matters on our terms. Although we are still learning, we are moving in the right direction: surefooted that we are building a safer, more efficient company. A company that will remain at the forefront of the industry for the years to come – and one that will deliver for all our stakeholders.
Matt Dunlop Director of Sustainability & Decarbonisation Secondee to the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping
2 | Executive Foreword
Made with FlippingBook Proposal Creator