and Eco-Ships that involves investing and ordering a new generation of vessels that
are eco-friendly and at the same time fuel efficient. For more examples of voluntary
self-regulation in maritime transport, see Benamara et al. (2019) and Lun et al.
(2015). Industry players with a role in promoting sustainability often in the form of
enforcing international commitments to standards include entities as diverse as the
International Chamber of Shipping (ICS), the International Association of dependent
Tanker Owners (INTERTANKO), and the International Association of Ports and
Harbors (IAPH) (Benamara et al. 2019).
With growing institutional pressures, and hopefully heightened awareness, shipping firms are likely to increasingly engage in sustainability management. This is
evinced in part through numerous voluntary initiatives. Beyond government- and
industry-led initiatives, shipping firms are responding to the rapidly evolving regulatory challenges as well as the institutional pressures from civil society and investors. The environmental, social, and governance (ESG) rating industry is putting
pressure on international and domestic companies to improve their sustainability
profile. ESG reports, ratings, and indices are increasingly relied upon by institutional
investors, asset managers, financial institutions, and other stakeholders to assess and
measure company sustainability performance. There are many ESG data providers
like Bloomberg ESG Data Service, Sustainalytics Company ESG Reports, and Dow
Jones Sustainability Index (DJSI), to name a few. Huber and Comstock (2017), Siew
(2015), and Olmedo et al. (2010) offer an overview of the sustainability rating
indices and agencies. In response to the greater demand of stakeholders for greater
transparency in sustainability matters, shipping companies may undertake sustainability reporting on their own and in conjunction with third-party certification
agencies. For an overview of corporate sustainability reporting tools, see Siew
(2015). For a company to achieve good sustainability ratings or to gain certification
for (dimensions of) sustainability, ultimately it needs to adjust or fundamentally alter
its strategic vision and management approach. There is a vast and rapidly growing
literature on sustainable corporate management (Epstein and Buhovac 2017; Modak
2018; Brockett and Rezaee 2012; Lambin and Thorlakson 2018; Chrun et al. 2016).
There is less literature focusing squarely on sustainable company management in the
context of the marine transport industry or the link between such sustainability
practices, institutional pressures, and performance outcomes of companies. Lun
et al. (2015) raise this issue in a book focusing on green shipping management.
They point to many firms that are placing importance on environmental protection
when performing shipping activities such as mega carriers (e.g., Hapag-Lloyd, APL,
K Line, Maersk, NKY, and OOCL) and giant shippers (e.g., IKEA, Mattel, Nike,
Home Depot, and HP) that are members of the Clean Cargo Working Group looking
to integrate sustainability business principles into transport management. In the very
broad context, Lambin and Thorlakson (2018) look at sustainability standards and
how the overall interaction between private actors, civil society, and governments is
reshaping global environmental governance.
10 Sustainable Shipping: Levers of Change
167
are eco-friendly and at the same time fuel efficient. For more examples of voluntary
self-regulation in maritime transport, see Benamara et al. (2019) and Lun et al.
(2015). Industry players with a role in promoting sustainability often in the form of
enforcing international commitments to standards include entities as diverse as the
International Chamber of Shipping (ICS), the International Association of dependent
Tanker Owners (INTERTANKO), and the International Association of Ports and
Harbors (IAPH) (Benamara et al. 2019).
With growing institutional pressures, and hopefully heightened awareness, shipping firms are likely to increasingly engage in sustainability management. This is
evinced in part through numerous voluntary initiatives. Beyond government- and
industry-led initiatives, shipping firms are responding to the rapidly evolving regulatory challenges as well as the institutional pressures from civil society and investors. The environmental, social, and governance (ESG) rating industry is putting
pressure on international and domestic companies to improve their sustainability
profile. ESG reports, ratings, and indices are increasingly relied upon by institutional
investors, asset managers, financial institutions, and other stakeholders to assess and
measure company sustainability performance. There are many ESG data providers
like Bloomberg ESG Data Service, Sustainalytics Company ESG Reports, and Dow
Jones Sustainability Index (DJSI), to name a few. Huber and Comstock (2017), Siew
(2015), and Olmedo et al. (2010) offer an overview of the sustainability rating
indices and agencies. In response to the greater demand of stakeholders for greater
transparency in sustainability matters, shipping companies may undertake sustainability reporting on their own and in conjunction with third-party certification
agencies. For an overview of corporate sustainability reporting tools, see Siew
(2015). For a company to achieve good sustainability ratings or to gain certification
for (dimensions of) sustainability, ultimately it needs to adjust or fundamentally alter
its strategic vision and management approach. There is a vast and rapidly growing
literature on sustainable corporate management (Epstein and Buhovac 2017; Modak
2018; Brockett and Rezaee 2012; Lambin and Thorlakson 2018; Chrun et al. 2016).
There is less literature focusing squarely on sustainable company management in the
context of the marine transport industry or the link between such sustainability
practices, institutional pressures, and performance outcomes of companies. Lun
et al. (2015) raise this issue in a book focusing on green shipping management.
They point to many firms that are placing importance on environmental protection
when performing shipping activities such as mega carriers (e.g., Hapag-Lloyd, APL,
K Line, Maersk, NKY, and OOCL) and giant shippers (e.g., IKEA, Mattel, Nike,
Home Depot, and HP) that are members of the Clean Cargo Working Group looking
to integrate sustainability business principles into transport management. In the very
broad context, Lambin and Thorlakson (2018) look at sustainability standards and
how the overall interaction between private actors, civil society, and governments is
reshaping global environmental governance.
10 Sustainable Shipping: Levers of Change
167