The shipping sector is one of the most important in the international economy and among those that have been particularly affected in recent years due to the effects of the pandemic and the war in Ukraine.
At the same time, the adaptation of the sector to the requirements of criteria related to the Environment, Society and Corporate Governance (ESG) is becoming more imperative than ever.
The executives of the Shipping sector in Cyprus had the opportunity to attend a particularly insightful discussion on the subject, organised by PwC Cyprus entitled “Decoding ESG. Moving from theory to practice in the Shipping sector”. As noted by the organisation’s CEO, Philippos Soseilos, the correct application of ESG criteria requires a holistic approach from the sector’s companies since there are many parameters that must be taken into account. From decarbonisation to green finance rules and the sector’s wider societal footprint. “Given the important role of the shipping industry in the implementation of the ‘Vision 2035’ for Cyprus, significant investments should be made in initiatives and policies to upgrade the sector. This includes issues related to sustainability and utilisation of technology, new investments in Research and Technology as well as the upskilling of the employees,” he noted.
Chris Angelides, an Energy Transition & Sustainability global expert who teaches ESG for Industry at the University of Houston and an advisor to PwC Cyprus on ESG issues, mentioned that it is necessary for organisations to move from just compliance to improving operational efficiency in order to upgrade their business model. In addition, as he explained, the correct application of ESG criteria by shipping companies can lead to a reduction in costs, to the protection of the companies themselves and to the upgrading of their value.
Cleo Papadopoulou, Partner at PwC Cyprus and In Charge of Transportation and Logistics, and Constantinos Taliotis, Partner at PwC Cyprus and In Charge of ESG, emphasised that shipping is of great importance to the Cypriot economy, noting that a quick and smooth transition to the new normal is crucial. Especially, taking into account the persisting problems in the international supply chain and in the energy sector. In addition, the panel discussion covered topics like the speed of energy transition in the current geopolitical environment, sustainable fuels, the impact of ESG on ports and the diversity and inclusion matters in shipping.
There was a particular reference on the importance of S (social) in the ESG acronyms in Shipping. The S considers, amongst other things, how a company’s operations and policies impact on its workforce, on communities, on other businesses and society as a whole.
PwC supports its clients in meeting their regulatory obligations in relation to ESG issues and furthermore advice and guide them with the goal of creating integrated ESG strategies that will lead to improved operational performance and enhanced business value.
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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