Progress in ESG in Shipping Varies by Sector

According to a new report from the Lloyds Register advisory group, ESG (Environmental, Social, and Governance) performance in shipping remains as diverse as the industry itself. For most companies, there is an opportunity to benefit from ESG commitments, and the report presented at the Posidonia exhibition highlights how this can help companies unlock new growth horizons.

“The maturity of ESG in the maritime sector now determines access to capital, the cost of that capital, qualification for tenders from major charters, and compliance status. It is no longer a voluntary or reputational aspect,” notes LR.

To assess performance across the industry, LR Advisory developed a new index methodology specific to the maritime sector, with questions reflecting real industry challenges. The questionnaire primarily focuses on environmental aspects, where the main regulatory pressures and market controls are concentrated, and includes an overview of fuel efficiency and measures for transitioning to green fuel. Next is governance, which is the foundation of ESG success, followed by social aspects (seafarers' rights) and the value chain (e.g., ship recycling choices).

With this methodology, LR analyzed ESG maturity data from 48 companies and found a wide range: high achievements in cruise and container shipping, as well as a more variable level of commitments in other sectors, from 96/100 to 3/100.

This 93-point spread reflects very different needs across sectors, says LR. Container shipping companies demonstrated the highest average score (75), as they are most pressured by customers on ESG and have become pioneers in investing in alternative fuels. Bulk carrier operators showed the lowest average score (49.5), attributed to “low commercial incentives for ESG” and fragmented ownership in the sector.

Overall, companies performed better in governance and social impact categories. Average environmental scores were somewhat lower, as “maritime-specific issues drag the average score down,” LR Advisory determined.

The consulting firm claims that the results reflect broader trends observed in LR's energy transition tracking “barometer,” which describes the current level of progress in decarbonizing the maritime sector as “uneven, fragmented, and significantly below what is needed.”

“ESG is no longer a compliance exercise; it is a critically important lever for optimizing cost structures, enhancing asset efficiency, and maintaining commercial competitiveness. The proposed UN framework for net-zero emissions is expected to further accelerate this transition through additional regulatory pressure if implemented,” LR noted.