Climate Change Data

Environmental Metrics

ESG Focus Areas

• Decarbonising logistics
• Sustainability in our end-to-end offerings
• Responsible business practices
• Enabling sustainable trade

Environmental Achievements

• Reduced CO2 emissions by 46.3% since 2008 (2.5% in 2020 alone)
• SOx emissions significantly reduced to 102,000 tonnes due to IMO 2020 sulphur cap
• Successfully implemented shift to low-sulphur fuels across our owned fleet

Social Achievements

• Improved employee engagement scores
• Launched Maersk ECO Delivery, exceeding customer expectations
• Helped overdue crew members on or off vessels during COVID-19 pandemic
• Twill coaching programs supported 29 women entrepreneurs

Governance Achievements

• Implemented a new, risk-based stowage concept to improve fire safety on vessels
• Finalised implementation of Maersk third-party management process
• Target for women on Board of Directors met

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chains
• Lack of fuel infrastructure for net-zero emission fuels
• Safety-related issues with new fuels (methanol, ammonia)
• Regulatory barriers to responsible ship recycling (Basel Ban Amendment)
• Lack of capacity for responsible recycling of post-panamax vessels
• Slow progress in political and legislative action on decarbonisation
• Uneven enforcement of IMO 2020 sulphur cap
• Managing risks related to third-party labor in supply chain

Mitigation Strategies

• Created cross-functional task force to facilitate crew changes during COVID-19
• Engaging in several fuel manufacturing projects for methanol and ammonia
• Collaborating with fuel suppliers to develop fuelling network
• Engaging with stakeholders to find solutions for ship recycling gridlock
• Advocating for policies that reward first movers in decarbonisation
• Testing sulphur content of fuel prior to bunkering
• Developing new audit and follow-up regimes to ensure standards are met in African ports
• Strengthening procurement digital landscape for supplier performance monitoring
• Developing a comprehensive work program to improve responsible practices across environmental, social, and governance issues

Supply Chain Management

Supplier Audits: Approximately 3,500 suppliers in high-risk categories audited in 2020

Responsible Procurement

• Supplier Code of Conduct
• Due diligence activities (audits, self-assessments, documentation reviews)
• Improvement plans for non-compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Price differentiation related to sustainability in the freight market

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, GHG Protocol, TCFD

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 14 (Life below water)
• Goal 17 (Partnerships for the goals)

The report details how Maersk's initiatives contribute to these goals.

Sustainable Products & Innovation

• Maersk ECO Delivery

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Safety and security
• Diversity, equity and inclusion
• Business ethics
• Data ethics
• Environment and ecosystems
• Human capital
• Human rights
• Employee relations and labour rights
• Sustainable and inclusive trade
• Sustainable procurement
• Responsible tax
• Citizenship

Environmental Achievements

• Growth in demand for Maersk ECO Delivery of more than 170% year-on-year since 2019
• Launch of emissions dashboard customer offering
• Placed order for 13 methanol-driven vessels
• Significant increase in energy consumption from Renewable technologies of 150%
• Reduced SOx emissions substantially lower than in 2019 before the ban

Social Achievements

• Improved lost-time injury frequency rate by 18%
• Increased share of women in Maersk by 3%
• Increased share of women in management and leadership
• Increased target nationalities in executive leadership by 3%
• Conducted our first global inclusion survey

Governance Achievements

• Performed our second global compliance risk assessment
• Began company-wide roll out of our reviewed internal controls framework
• Performed audits and assessments on suppliers
• Began transformation to more integrated management of sustainability in procurement
• Established and communicated Maersk's Data Ethics Policy
• Created the Data Ethics Committee

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions impacting carbon emissions
• Availability and cost of green fuels
• Loss of four employees' lives
• Lack of reception facilities in ports for waste management
• Lack of transparency on waste management infrastructure
• Challenges in securing adequate amounts of green fuel for methanol-powered vessels
• COVID-19 related restrictions hindering crew change
• Lack of support from authorities for seafarers
• Issues with third-party labour conditions in terminals and warehouses
• Corruption risks in interactions with authorities and in supply chain

Mitigation Strategies

• Accelerated climate commitments and actions
• Investments and agreements with fuel providers
• Implementation of Learning Teams and training for global leadership on safety principles
• Review and refinement of waste procedures and garbage plans
• Development of a more comprehensive set of KPIs and targets for landside emissions
• Engagement in developing green methanol market through investments and partnerships
• Empowering local leaders to manage COVID-19 effects and providing central support
• Conducting audits and taking actions to address issues found in third-party labour
• Implementation of updated internal control on facilitation payments
• Engagement with MACN to fight corruption

Supply Chain Management

Supplier Audits: Approximately 4,200 suppliers in high-risk categories audited annually

Responsible Procurement

• Maersk Supplier Code of Conduct
• Green procurement programme
• Third Party Management process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., cyclones, floods)
• Coastal floods
• Windstorms
• Hurricanes

Transition Risks

• Policy changes
• Technology shifts
• Carbon pricing

Opportunities

• Development of green end-to-end logistics offerings
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI 101: Foundation Standard, SASB, TCFD, UN Global Compact

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• Maersk ECO Delivery
• Emissions dashboard
• Methanol-driven vessels
• Ecotow

Environmental Metrics

ESG Focus Areas

• Climate change
• Safety and security
• Diversity, equity and inclusion
• Human capital
• Business ethics
• Data ethics
• Sustainable procurement

Environmental Achievements

• ~50% reduction in carbon intensity (EEOI) by 2030 (2020 baseline)
• Ordered 19 dual-fuel methanol engine vessels
• Entered 9 new strategic partnerships to secure green fuels
• Switched to renewable electricity in 9 terminals
• Maersk’s ECO Delivery made up 2% of ocean freight transported

Social Achievements

• 8-point year-on-year improvement in Employee Engagement Survey score (67th percentile)
• Launched a global Anti-Discrimination, Harassment and Bullying Policy
• Improved lost-time injury frequency rate from 0.93 to 0.90
• 83% completion rate of Learning Teams following High Potential Incidents

Governance Achievements

• 96% of suppliers committed to Maersk Supplier Code of Conduct
• 77% of Tier 1 high-risk suppliers underwent ESG assessments
• 69% of high-risk suppliers with Improvement Plans successfully closed
• 67% completion rate of data ethics training

Climate Goals & Targets

Environmental Challenges

• Limited policy consensus and lack of a level global playing field for decarbonization
• Uncertainties in IMO negotiations
• Limited availability of green fuels
• Continued global supply chain disruptions, port congestions and capacity constraints
• Tragic loss of nine colleagues

Mitigation Strategies

• Implementing while innovating, focusing on green methanol powered vessels
• Securing green fuels through strategic partnerships
• Improving fuel efficiency through fleet and network optimization
• Strengthening risk assessments and implementing global safety and security standards
• Initiating a cultural transformation program to address harassment

Supply Chain Management

Supplier Audits: 77% of Tier 1 high-risk suppliers underwent ESG assessments

Responsible Procurement

• Supplier Code of Conduct
• ESG integrated into procurement objectives
• ESG risk assessment tool

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Wildfires
• Droughts

Transition Risks

• Regulatory changes
• Market shifts
• Failure to decarbonize supply chain

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, EU Taxonomy

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 11
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Not disclosed

Sustainable Products & Innovation

• ECO Delivery Ocean product
• Green methanol-enabled vessels

Awards & Recognition

• Indian CSR Health Impact Awards

Environmental Metrics

ESG Focus Areas

• Climate change
• Safety and security
• Diversity, equity and inclusion
• Business ethics
• Data ethics
• Sustainable procurement

Environmental Achievements

• Carbon intensity (Ocean) decreased by 4% compared to 2020 baseline
• Share of ocean freight transported with green fuels increased to 3%
• 13% reduction of GHG emissions (scope 1 and 2) in Terminals since 2020
• Arrival of Laura Mærsk, the world’s first green fuel-enabled container vessel

Social Achievements

• 99% Learning Teams completed following High Potential Incidents
• 98% leadership trained in Maersk’s safety and security principles
• 35% women in management and leadership
• 20% diverse nationality (non-OECD) of executives
• 92% of employees (in scope) trained in Maersk Code of Conduct
• 91% of employees (in scope) trained on data ethics

Governance Achievements

• 95% of suppliers (in scope) committed to the Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Sourcing green fuels at scale
• Slowdowns in key markets reducing logistics demand and appetite for energy transition investments
• Rising interest rates pushing fuel costs to customer limits
• Geopolitical instability impacting supply chains
• Attacks on cargo vessels in the Red Sea and Gulf of Aden
• High cost of battery-electric equipment in terminals

Mitigation Strategies

• Building a robust portfolio of green fuels supply agreements
• Implementing while innovating, doubling down on solutions with immediate impact
• Increased physical security in exposed sites, closing open terminals security gaps, strengthening access to incident data
• Upskilling HSSE professionals in TAPA requirements
• Establishing a threat intelligence network
• Aligning minimum security requirements for facilities with TAPA-FSR and CTPAT
• Developing a Global Contraband Strategy
• Building local roadmaps with terminals for decarbonisation
• Implementation of dedicated green tariffs in European terminals
• Switching from diesel to renewable diesel in Los Angeles
• Installation of on-site solar in various terminals
• Implementation of energy optimisation initiatives at 12 terminals

Supply Chain Management

Supplier Audits: 71% of strategic/high-risk suppliers underwent ESG assessments in 2023

Responsible Procurement

• Supplier Code of Conduct
• Global Standards for Third-Party Labour
• ESG requirements embedded into procure-to-pay process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, hurricanes, wildfires, droughts, flooding)
• Disruption of asset operations and network operation

Transition Risks

• Failure to decarbonise supply chain or generate business value from decarbonisation
• Ensuring access to green fuels at scale
• Slowdowns in key markets reducing logistics demand and appetite for investments in energy transition

Opportunities

• Growing market/demand for ECO Delivery products

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, EU Taxonomy

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• ECO Delivery Ocean, ECO Delivery Inland, ECO Delivery Air

Awards & Recognition

• Global Maritime India Summit recognition for Responsible Ship Recycling programme
• CSR Health Impact award for funding a mobile health unit