Sustainability Strategy

Transcription

1 A.P. Moller - Maersk Group Sustainability Strategy I A.P. Moller - Maersk Group Sustainability Strategy Unlocking growth for society and Maersk Last updated March 6, 2015

2 A.P. Moller - Maersk Group Sustainability Strategy Contents Introduction... 2 Strategy overview... 3 Our approach... 4 Enabling trade... 5 Investing in education... 6 Energy efficiency and climate change... 7 Maintaining compliance and risk management... 8

3 A.P. Moller - Maersk Group Sustainability Strategy Introduction Maersk has made considerable progress integrating sustainability into business processes and systems. We are now ready for the next step: addressing sustainability challenges in a way that creates growth for society and Maersk. Ready for the next step A.P. Moller - Maersk is a global company with great strength and vast outreach. We have the ability and the responsibility to do things right and to contribute to a more sustainable future. We do this by taking responsibility for the adverse impacts of our business and by seeking to enhance the positive aspects. With our last Group sustainability strategy, adopted in 2010, we have taken a systematic approach to sustainability, focusing on integrating sustainability into business processes and systems. The aim was two-fold: to mitigate and manage sustainability risks, and to strengthen Maersk s position as a responsible and trusted business partner. By now, we have achieved the overall ambition of integrating sustainability at corporate level. We must continue to integrate sustainability in our operations mitigating risks and raising performance levels. At the same time, we are well placed to reap the benefits of the progress made so far, and are ready to take the next step. We will never stop working to be transparent and responsible, but we must now add to this and take sustainability a step further, focusing on how we can create more value. Nils S. Andersen, CEO, A.P. Moller - Maersk

4 A.P. Moller - Maersk Group Sustainability Strategy Strategy overview SUSTAINABILITY VISION We aspire to unlock growth for society and Maersk. We will achieve this through the core strengths of our businesses and by being a responsible business partner. The Group Sustainability Strategy aims at unlocking growth for Maersk and society by focusing on three sweet spots for growth. Unlocking growth for Maersk and society Since 2009, we have carried out impact studies and worked with relevant stakeholders to identify areas where we can address sustainability challenges in a way that creates growth for Maersk and society. The knowledge derived from this work has helped us determine key sweet spots where focusing our efforts will help us unlock growth. However, there are different barriers hampering the growth potential of our sectors as well as the countries we operate in. We have identified and chosen three key priority areas that, on one side, will help us address barriers to our growth strategy and, at the same time, help address substantial sustainability challenges in society. Three sweet spots for growth Energy and transportation are important for economic development. The sectors support the development of industries and the ability of countries to export goods. Sweet spots for unlocking growth for Maersk and society ECONOMIC Enabling trade Volume Economic growth ENVIRONMENTAL Energy efficiency Cost savings CO2 reduction Unlocking growth SOCIAL Education Skilled workers Jobs

5 A.P. Moller - Maersk Group Sustainability Strategy Our approach SUSTAINABILITY STRATEGY Through efforts to reduce barriers to trade, invest in education and improve the energy efficiency of supply chains, we aim to grow our industries while addressing significant sustainability challenges in society. We will reach further outside our operational sphere to unlock opportunities for growth. Achieving long-term benefits The new strategic direction addresses systemic challenges outside our own sphere. The approach demands a longer term horizon but we believe that when industry-wide and social challenges affecting all of us are addressed, the value creation can be exponential. Addressing systemic barriers to growth in society WHAT The first two years of the strategy will focus on designing and implementing relevant projects that can be scaled up across growth markets where feasible. Society Coalitions Industry Operations Partnerships Performance HOW A phased approach Develop effective models Action plan, design and start-up of projects. Focus and selection Best practices are selected and extended to other geographies and sectors. Adoption and impact Best practices adopted in the businesses supporting long-term growth.

6 A.P. Moller - Maersk Group Sustainability Strategy Enabling trade ENABLING TRADE We will unlock growth for society and Maersk by improving conditions for businesses and industries to participate in global trade. Benefits for society Continuous trade expansion and access to global markets can help generate economic development, stimulate job creation, increase people s income and raise living standards. This is beneficial especially in growth markets where the cost of logistics may be twice as high compared to mature markets. The rapid growth of the global middle class (from 1.8 billion people in 2009 to 4.9 billion by 2030) highlights the important role of trade in terms of enabling consumer choice, business opportunities and employment (OECD, 2010). Providing the most efficient global transport for trade is essential in order to meet the needs of current and future generations. According to the World Economic Forum (WEF), global improvements in border administration and transport and communications infrastructure could see global GDP increase by USD 2.6 trillion (4.7%) and global exports by USD 1.6 trillion (14.5%). Gains could be even higher in Sub-Saharan Africa, with a potential GDP increase of 12% (WEF Global Enabling Trade Report 2012). Transport and logistics can play a significant role in realising this potential. Benefits for Maersk Maersk offers cost-efficient transportation and operates throughout the global transportation supply chain. Maersk Line, APM Terminals and Damco contribute more than 50% of the Group revenues. Maersk can achieve growth by: Taking a high share of new trade growth Improving procedures and cost efficiency Developing profitable niche markets Our approach Maersk can be a force for positive change in framework conditions for trade by collaborating with other stakeholders. We have the opportunity to engage proactively and help shape the agenda by sharing our knowledge on trade and the potential trade holds in creating economic growth and development opportunities for society. We will focus on three pathways: Improving the business environment We will support the development of more efficient trade procedures and documentation processes, shorter transport times and other relevant initiatives. We will engage with government bodies, public institutions and industry associations. Improving local ability to access global markets Businesses and sectors in different countries may be unable to access international supply chains and global markets due to a lack of scale, export and market knowledge, investment capacity or lack of transport, cold chains and logistics services. Maersk will support selected training initiatives to help optimise transportation and logistics expertise, disseminate knowledge and facilitate networking, thereby enabling these sectors to raise their level of competitiveness. Influencing governmental infrastructure investments The absence of quality transport and infrastructure such as road and rail networks can undermine the ability of businesses to participate in global trade. Maersk will engage in and influence discussions at national level on inland infrastructure, modal solutions and technologies to help countries overcome their bottlenecks and help businesses achieve their potential.

7 A.P. Moller - Maersk Group Sustainability Strategy Investing in education EDUCATION We will unlock growth for society and Maersk by investing in relevant training and education, contributing to building the skills base in growth markets. Benefits for society There is a major imbalance between supply and demand in global employment markets. By 2060, 600 million jobs must be created in developing countries to meet the growing number of young people entering the employment market (IFC, 2013). Unemployment leads to economic deprivation, social unrest and marginalisation. The same countries face growth constraints due to lack of available talent within key employment areas. Overall, investments in education, training and employment provide opportunities for people and communities to develop and prosper. Benefits for Maersk Investing proactively in training and education is in our interest. Our growth ambitions depend on our ability to attract and retain competent and highly qualified staff in highly competitive talent markets. Companies in emerging economies, in particular, are likely to face shortages in skilled labour (IFC, 2013). Through strategic investments in training and education, we will be able to contribute to the development of our workforce, provide our employees with learning opportunities and tap into a larger pool of talent. This will benefit our key growth markets in particular and support our growth strategy and the long-term stability of our operations. Furthermore, building and bringing on board local talent creates stronger ties to the local community and enables Maersk to engage positively with customers and host nations. This applies especially to host nations (i.e. Angola, Brazil, Kazakhstan and Qatar) where companies are required to recruit a specific quota of their nationals or purchase from local suppliers, despite shortcomings in skills, expertise and capacity to meet international quality and safety standards. Increased local sourcing will in the longer term also help Maersk to reduce costs by avoiding operational disturbances, minimising import costs or averting the imposition of fines for failing to meet quotas which may ultimately put our licences at risk. Our approach Maersk can be a force for positive change by supplementing our short-term talent recruitment and training programmes with initiatives to expand pools of talent in at least five growth markets to support our long-term presence. We have initially identified Brazil and Angola as strategic locations where we are in a strong position to expand on existing training infrastructure. We will focus on three pathways: Investing in training and education in high-growth markets This will involve setting up or expanding Maersk Training centres or joint ventures, expanding education collaborations with secondary schools, colleges and academies, developing curricula and designing new programmes. We will ensure that Maersk employees are involved in the programmes as instructors and consultants. Improving social inclusion We aim to encourage gender and social inclusion by attracting women and low-income young people on to the training programmes or by providing internship opportunities. Upgrading local suppliers We will provide training and tools to improve the skills and capacity of local suppliers, particularly in the oil industry and new terminal projects. This will help us to meet government requirements and increase our attractiveness as a responsible partner.

8 A.P. Moller - Maersk Group Sustainability Strategy Energy efficiency and climate change ENERGY EFFICIENCY We will unlock growth for society and Maersk by enhancing our CO2 efficiency and promoting efficient supply chains. Benefits for society Trade and economic growth may help raise living standards, but economic growth also comes with a negative impact on the climate and environment. The global challenge is both to increase trade and economic well-being for a growing population and mitigate the impacts of climate change and environmental damage at the same time. How or whether nations decide to respond to climate change remains uncertain. Presently global warming is on a pathway to rise more than 4 degrees (PWC, Low Carbon Economy index 2013). The demand for solutions to climate change will intensify. If they can be realised, the key benefit for society would naturally be to avoid dangerous climate change by keeping the rise to below 2 degrees. Maersk supports the position that adequate efforts must be made to ensure that global warming is stabilised below 2 degrees. By reducing the CO2 footprint of containerised transport and optimising the energy efficiency of global transport supply chains, Maersk can help ensure that global trade can take place in ways that are increasingly energy-efficient. This will also increase the likelihood of food and goods being sourced from locations where they are produced more efficiently in terms of both CO2 emissions and costs. Benefits for Maersk Significant motivating factors include fuel cost reductions, improved margins and competitiveness. I.e., since 2007, Maersk Line has achieved a 25% reduction in CO2 per container. If Maersk Line had not improved its energy efficiency and CO2 performance, the fuel cost in 2012 would have been USD 1.6 billion higher. We strive to promote energy efficiency across the industries in which we work, and focus our efforts on where we can reap the greatest benefits, namely within shipping. The Group-wide target is a 30% relative CO2 reduction by 2020 (2010 baseline). Our approach We are in a strong position to expand on our efforts and promote low carbon transportation as a solution within national planning and infrastructure investments. We will focus on two pathways: Further increase energy efficiency We will continue to reduce CO2 emissions across the Group through our Group-wide target, and we will remain at the forefront of energy efficient shipping. Having already made great advancements in energy efficiency, Maersk Line is well on its way to achieving its 40% CO2 reduction target by In this way Maersk can help facilitate the increasing global trade in goods at continuously lower carbon intensity. Support the development of efficient supply chains and infrastructure planning With the goal of optimising global transport supply chains and ensuring energy and cost-efficient trade, we will advocate the low carbon potential of waterborne transport for national infrastructure investments and govern ment planning solutions. Furthermore, stakeholder expectations, the need to mitigate any statutory regulation and the desire to reduce our negative impact on the environment make energy efficiency a priority across the Group.

9 A.P. Moller - Maersk Group Sustainability Strategy Maintaining compliance and risk management We will continue to integrate sustainability into our operations, mitigating risks and raising performance. Integrating sustainability: an ongoing journey We will continue to integrate sustainability in our operations, mitigating risks and raising performance levels. The Group programmes will carry on ensuring compliance with our policies and standards on anti-corruption, responsible procurement and global labour principles. The businesses are responsible for implementing the programmes as well as meeting the targets adopted for health and safety, climate change, and diversity and inclusion, and overall for ensuring compliance with the policies issued by the Group. Every year, this work will be subject to a compliance self- assessment process where the Group follows up on the progress of implementation and reports on the performance achieved. The Group Sustainability function will continue to capture relevant developments in society and their impacts on our business, draw up recommendations for appropriate action, develop relevant Group programmes, provide yearly materiality assessments and tools, support internal risk assessment processes, and communicate and report on the Group s sustainability performance. Together, these programmes, strategies and initiatives form the backbone of our Group corporate responsibility efforts and help ensure that we live up to our commitment to the UN Global Compact principles while mitigating our most significant sustainability-related risks. The Group s Sustainability Council will continue to oversee strategy and performance. Review meetings with the businesses CEOs will keep ensuring a constructive dialogue on progress and forward-looking opportunities. What we achieved Key milestones include Mandatory Group programmes put in place to ensure compliance with minimum standards on anti-corruption, responsible procurement and global labour principles. Group strategies adopted for health and safety, climate change, and diversity and inclusion. Solid governance framework established. CEO reviews ensuring constructive dialogue with business CEOs on progress, challenges and opportunities. An integration assessment framework to monitor and support progress in the businesses. Sustainability incorporated into leadership training, the annual employee engagement survey and enterprise risk management processes.