Who put the D in ESG?

Finance made available on the basis of the principles of an environmental, social and governance (ESG) strategy is, we are told, the future. The institutions that provide the funds are already lining up behind it, potentially rewarding adherents and prepared to penalise defaulters.

It’s a message conveyed at increasing volume to the shipping industry, though so far with little by way of recognition outside the golden circle of top operators and their customers.

In its recent report, The Sustainability Imperative, law firm Watson Farley Williams polled industry players and found that almost one-third of the shipowners said that ESG “barely influences” their investment decisions, despite it playing a role in 90% of financiers’ decisions.

In another recent publication, consultants Arthur D Little describes ESG as a game changer that will reshape the financial services industry, “a driving force behind banking, their impact felt both broad and deep, and in ways that will touch all aspects of every leading financial institutions, from business lines, segments, products/services, pricing, processes, and data, through to interactions with clients/suppliers, distribution models, and even talent management.”

Read about how shipping needs to get with the programme here.