unlocking growth for society and maersk€¦ · term also help maersk to reduce costs by avoiding...

A.P. Moller - Maersk Group I

Unlocking growth for society and Maersk

SustainabilityStrategy 2014–2018

A.P. Moller - Maersk Group

Last updated October 7, 2015

Sustainability Strategy 2014–2018 1A.P. Moller - Maersk Group

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

A.P. Moller - Maersk Group Sustainability Strategy 2014–2018 2

Ready for the next stepA.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 as-

pects. With our last Group sustainability strategy, adopted

in 2010, we have taken a systematic approach to sustaina-

bility, 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 inte-

grate 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.

Introduction

“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

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.


SUSTAINABILITY VISION

We aspire to unlock growth – for society and Maersk. We

will achieve this through the core strengths of our busi-

nesses and by being a responsible business partner.

Unlocking growth for Maersk and societySince 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.

Three sweet spots for growthEnergy and transportation are important for economic

development. The sectors support the development of

industries and the ability of countries to export goods.

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.

Strategy overview

Sweet spots for unlocking growth for Maersk and society

Unlocking growth

ECONOMICEnabling trade

ENVIRONMENTALEnergy efficiency

SOCIALEducation

Volume

Economic growth

Cost savings

CO2 reduction

Skilled workers

Jobs

The Group Sustainability Strategy 2014–2018 aims at unlocking growth for Maersk and society by focusing on three sweet spots for growth.


Achieving long-term benefitsThe 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.

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.

Addressing systemic barriers to growth in society

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.

Focus and selection

Develop e�ective models

Adoption and impact

Action plan, design and start-up of projects.

Best practices are selected and extended to other geographies and sectors.

Best practices adopted in the businesses supporting long-term growth.

2014–2015 2016–2017 2018–

A phased approach

Operations

Industry

WHAT

HOW

Partnerships

Society

Coalitions

Performance

Our approach

We will reach further outside our operational sphere to unlock opportunities for growth.


Benefits for society

Continuous trade expansion and access to global markets

can help generate economic development, stimulate job cre-

ation, 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 impor-

tant 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 signifi-

cant role in realising this potential.

Benefits for MaerskMaersk 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 con-

ditions 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 trans-

port 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.

Enabling trade ENABLING TRADE

We will unlock growth for society and Maersk by

improving conditions for businesses and industries to

participate in global trade.

A.P. Moller - Maersk Group 6

There is a major imbalance between supply and demand in

be created in developing countries to meet the growing

number of young people entering the employment market

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.

Investing proactively in training and education is in our inter-

est. Our growth ambitions depend on our ability to attract and

retain competent and highly quali�ed sta� in highly competi-

tive talent markets. Companies in emerging economies, in par-

Through strategic investments in training and education, we

will be able to contribute to the development of our work-

force, provide our employees with learning opportunities and

tap into a larger pool of talent. This will bene�t 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. An-

gola, Brazil, Kazakhstan and Qatar) where companies are

required to recruit a speci�c quota of their nationals or pur-

chase 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 opera-

tional disturbances, minimising import costs or averting the

imposition of �nes 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 �ve

growth markets to support our long-term presence. We have

initially identi�ed Brazil and Angola as strategic locations

where we are in a strong position to expand on existing train-

ing 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 collabo-

rations 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 attract-

ing women and low-income young people on to the training

programmes or by providing internship opportunities.

Investing in education

EDUCATION

We will unlock growth for society and Maersk by invest-

ing in relevant training and education, contributing to

building the skills base in growth markets.

A.P. Moller - Maersk Group 7

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

change will intensify. If they can be realised, the key bene�t

for society would naturally be to avoid dangerous climate

-

ports the position that adequate e�orts must be made to

By reducing the CO footprint of containerised transport and

optimising the energy e�ciency of global transport supply

chains, Maersk can help ensure that global trade can take

place in ways that are increasingly energy-e�cient. This will

also increase the likelihood of food and goods being sourced

from locations where they are produced more e�ciently – in

terms of both CO emissions and costs.

Signi�cant motivating factors include fuel cost reductions,

per con-

tainer. If Maersk Line had not improved its energy e�ciency

and CO

Furthermore, stakeholder expectations, the need to miti-

gate any statutory regulation and the desire to reduce our

negative impact on the environment make energy e�ciency

a priority across the Group.

We strive to promote energy e�ciency across the industries

in which we work, and focus our e�orts on where we can

reap the greatest bene�ts, namely within shipping. The

Our approachWe are in a strong position to expand on our e�orts and pro-

mote low carbon transportation as a solution within national

planning and infrastructure investments.

We will focus on two pathways:

• Further increase energy e�ciency

We will continue to reduce CO emissions across the

Group through our Group-wide target, and we will remain

at the forefront of energy e�cient shipping. Having

already made great advancements in energy e�ciency,

facilitate the increasing global trade in goods at continu-

ously lower carbon intensity.

• Support the development of e�cient supply chains

With the goal of optimising global transport supply chains

and ensuring energy and cost-e�cient trade, we will ad-

vocate the low carbon potential of waterborne transport

for national infrastructure investments and govern ment

planning solutions.

and climate changeENERGY EFFICIENCY

We will unlock growth for society and Maersk by enhan-

cing our CO e�ciency and promoting e�cient supply

chains.


Integrating sustainability: an ongoing journeyWe will continue to integrate sustainability in our opera-

tions, mitigating risks and raising performance levels.

The Group programmes will carry on ensuring compliance

with our policies and standards on anti-corruption, responsi-

ble 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- assess-

ment process where the Group follows up on the progress of

implementation and reports on the performance achieved.

The Group’s Sustainability Council will continue to oversee

strategy and performance. Review meetings with the busi-

nesses’ CEOs will keep ensuring a constructive dialogue on

progress and forward-looking opportunities.

Maintaining compliance and risk management

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.

We will continue to integrate sustainability into our operations, mitigating risks and raising performance.

What we achieved 2010–2013

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 busi-

ness 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 enter-

prise risk management processes.

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