ABSTRACT

The organization selected is MAERSK, a Danish

multinational shipping and logistics company
Maersk's journey in sustainability reporting can
be traced back to 1998, marking them as early
adopters of transparent communication about
their environmental and social impact.

SOCIAL RESPONSIBILITY Abhay Pratap Singh

B2023060

FOR ACTION (SRA)

ASSIGNMENT

Submitted to: Dr. Shreerupa Sengupta

Q1) Briefly describe your organization. How has your chosen
organization embedded sustainability in its landscape? What is the
significance of sustainability reporting for your chosen organization?
Mention 3 reasons.

Maersk: A Global Shipping Giant Embracing Sustainability

Maersk is a Danish multinational shipping and logistics company, known for its vast
network of container ships, ports, and inland transportation solutions. But beyond its
logistical prowess, Maersk has also emerged as a leader in sustainability, actively
integrating it into every aspect of its operations.

Embedding Sustainability:

 Decarbonization: Maersk has set ambitious goals to achieve net-zero emissions

by 2040, investing in renewable energy sources, fuel-efficient technologies, and
carbon capture solutions.
 Responsible Sourcing: They prioritize sustainable materials and practices
throughout their supply chain, collaborating with suppliers to reduce their
environmental footprint.
 Community Engagement: Maersk partners with local communities near its
operations, investing in infrastructure, education, and healthcare initiatives.

Significance of Sustainability Reporting:

1. Transparency and Accountability: Maersk's comprehensive sustainability

reports provide stakeholders with clear insights into their
progress, challenges, and future plans. This transparency fosters trust and builds
confidence in their commitment to sustainability.
2. Benchmarking and Learning: By sharing their experiences and data, Maersk
inspires and collaborates with other industry players to accelerate collective
progress towards a sustainable future for shipping and logistics.
3. Attracting Talent and Investors: Maersk's commitment to sustainability attracts
environmentally conscious employees and investors, further strengthening their
brand and competitive edge.

Maersk's sustainability journey is a testament to the growing importance of

environmental responsibility in the global shipping industry. Their efforts not only benefit
the planet but also contribute to a more sustainable and equitable future for all.
Q2) Discuss some of the sustainable initiatives adopted by MAERSK
under the dimensions of social, economy and environment?

Maersk's Sustainability Initiatives: A Multidimensional

Approach
Maersk, the global shipping and logistics giant, has embraced sustainability as a core
value, integrating it into its social, economic, and environmental practices. Here's a
closer look at some of their key initiatives across these dimensions:

Social Sustainability:

 Diversity and Inclusion: Maersk actively promotes a diverse and inclusive

workplace, fostering an environment where everyone feels valued and
respected. This includes initiatives like unconscious bias training, flexible work
arrangements, and programs supporting women in leadership.

 Community Development: Maersk invests in local communities near its

operations, focusing on education, healthcare, and infrastructure
development. For example, their "Safe Water for All" program provides clean
water access to underserved communities.
 Human Rights and Labor Practices: Maersk upholds high ethical standards
throughout its supply chain, ensuring fair working conditions and protecting the
rights of its employees and partners. They have strict policies against forced
labor and child exploitation.
Economic Sustainability:

 Supply Chain Optimization: Maersk focuses on optimizing its logistics network

to reduce costs and waste while improving efficiency. This includes initiatives like
route optimization, modal shift (e.g., rail instead of air), and digitalization of
processes.
 Customer Collaboration: Maersk works closely with customers to develop
sustainable solutions, such as offering carbon-neutral shipping options and green
warehousing facilities. This fosters collaboration and drives collective progress
towards a more sustainable supply chain.
 Innovation and Technology: Maersk invests heavily in research and
development, exploring innovative solutions like alternative fuels, autonomous
shipping, and blockchain technology to improve efficiency and reduce emissions.

Environmental Sustainability:

 Decarbonization: Maersk has set ambitious goals to achieve net-zero emissions

by 2040, investing in renewable energy sources like biofuels and green
methanol. They are also developing and implementing energy-efficient
technologies for their ships and operations.
 Circular Economy: Maersk promotes circularity in its operations, minimizing
waste and maximizing resource reuse. This includes initiatives like recycling
packaging materials, providing repair and maintenance services for
containers, and exploring bio-based materials for packaging and construction.
 Pollution Reduction: Maersk actively reduces air and water pollution from its
operations, including initiatives like installing emission control systems on ships
and investing in clean port technologies. They also work to minimize noise
pollution and protect marine ecosystems.

These are just a few examples of Maersk's diverse and impactful sustainability
initiatives. Their commitment to social, economic, and environmental responsibility is
driving positive change across the shipping and logistics industry, paving the way for a
more sustainable future.
Q3) Which framework (e.g. GRI, DJI, ESG) has your selected organization used to report
on sustainability? What are the metrics used by the organization to report on
sustainability?

Maersk utilizes several frameworks to report on its sustainability performance,

demonstrating its commitment to transparency and alignment with widely recognized
standards. Here's a breakdown:

1. Global Reporting Initiative (GRI): Maersk's sustainability reports primarily adhere to

the GRI Standards, the most comprehensive and widely used framework for
sustainability reporting. This framework provides a structured approach for
organizations to disclose their environmental, social, and governance (ESG) impacts,
ensuring comparability across different industries and companies. Maersk maps its
reporting to the GRI Standards' core and sector-specific disclosures, offering
stakeholders detailed information on its progress towards sustainability goals.

2. Sustainability Accounting Standards Board (SASB): Maersk also references the

SASB Standards, which provide industry-specific sustainability disclosure guidelines.
These standards focus on financially material ESG issues that could impact an
organization's financial performance. Maersk uses the SASB Marine Transportation
Standard to report on metrics relevant to its industry, such as fuel efficiency, emissions
reduction, and supply chain transparency.

3. Dow Jones Sustainability Indices (DJSI): Maersk is a listed member of the DJSI
World and DJSI Europe indices, recognized for its leadership in corporate sustainability.
The DJSI evaluates companies based on their economic, environmental, and social
performance, and Maersk's inclusion in these indices demonstrates its commitment to
meeting high sustainability standards.
Maersk reports on a variety of metrics across the ESG spectrum, aligned with the
chosen frameworks. Here are some key examples:

Environment:

 Greenhouse gas (GHG) emissions: Maersk tracks its total GHG emissions
from its operations, including shipping, terminals, and land transport. They set
ambitious targets for reducing emissions and achieving net-zero by 2040.
 Energy efficiency: Maersk measures its fuel consumption and develops
strategies to improve efficiency across its fleet. They also invest in renewable
energy sources like biofuels and green methanol to reduce reliance on fossil
fuels.
 Waste management: Maersk tracks and aims to minimize waste generated in its
operations, including packaging materials and operational waste. They also
implement recycling and reuse initiatives.

Social:

 Employee diversity and inclusion: Maersk reports on gender

diversity, employee engagement, and initiatives to create an inclusive workplace.
 Community development: Maersk measures the impact of its community
development programs on education, healthcare, and infrastructure in local
communities.
 Human rights: Maersk reports on its compliance with human rights standards
and its efforts to combat forced labor and child exploitation in its supply chain.

Governance:

 Corporate governance: Maersk reports on its corporate governance

practices, including board composition, risk management, and ethical conduct
policies.
 Sustainability governance: Maersk discloses its sustainability governance
structure, including its sustainability goals, targets, and accountability
mechanisms.
 Transparency: Maersk emphasizes transparency by providing stakeholders with
access to its sustainability reports, data, and progress updates.

By utilizing these frameworks and reporting on relevant metrics, Maersk demonstrates

its commitment to transparency, accountability, and continuous improvement in its
sustainability performance. This approach helps them benchmark their progress,
engage with stakeholders, and drive positive change across the shipping and logistics
industry.