Sustainability in the Maritime Sector: Challenges and Opportunities

In May 2025, the University of Malta hosted the Maritime Platform Conference, a pivotal gathering of academics and industry professionals focused on innovation in marine and maritime sustainable developments.

During this event, Ms Decelis had the privilege of sharing insights on the drive towards ESG (Environmental, Social, and Governance) in the maritime space, exploring both challenges and opportunities. This article aims to share insights from this talk, underscoring ESG not only as a response to pressing global issues but as a strategic avenue for value creation and improved risk management in the maritime industry.

Despite the current geopolitical climate, sustainability continues to be increasingly relevant. For instance, in the US, all the top 100 companies undertook sustainability disclosures in 2024 (KPMG, 2024).  

Climate concerns are urgent, with the maritime sector contributing approximately 2.9% of global greenhouse gas emissions (Faber et al., 2021). The industry faces mounting regulatory pressures, such as the International Maritime Organisation's 2050 Net-zero Framework (IMO, 2025) and EU regulations requiring detailed emissions reporting and sustainability disclosures, such as under the Emissions Trading Scheme (ETS) and the Corporate Sustainability Reporting Directive (CSRD). Moreover, financial institutions are increasingly attaching their funding decisions to ESG performance, evident through initiatives like the Poseidon Principles, which provide a framework for integrating climate considerations into lending decisions for ship finance (Poseidon Principles, 2023).

Adopting ESG is crucial for managing these pressures and ensuring resilience. Leading global maritime companies – like Maersk and Hapag-Lloyd – leverage ESG frameworks to identify material impacts, risks and opportunities (Maersk, 2025; Hapag-Lloyd, 2025). These assessments guide strategic decisions and improve long-term resilience by addressing environmental threats, enhancing social welfare, and strengthening governance. For example, Maersk’s commitment to decarbonisation represents not only regulatory compliance but also a competitive advantage in an evolving marketplace.

However, integrating ESG into maritime operations is not without challenges. From a data perspective, in addition to persistent data availability and quality issues, there are challenges related to identifying appropriate and consistent quantification metrics and methods, such as when attempting to evaluate the shipping sector’s impact on biodiversity. Beyond the data aspect, the sustainability transition involves managing a wide array of topics simultaneously, such as reducing greenhouse gas emissions, shifting to alternative fuels, managing waste appropriately, protecting biodiversity, and ensuring the health, safety, and well-being of seafarers (KPMG, 2025). This shift may require complex changes to existing business models and operations.

Despite these hurdles, ESG has the potential to fundamentally reshape the industry, providing pathways for innovation and sustainable growth. Beyond compliance and risk management, ESG offers significant value creation opportunities. From improving relationships across the value chain to attracting customers and investors with strong sustainability credentials, the benefits are manifold. ESG can drive cost reductions and inspire innovation, resulting in sustainable competitive advantages. Moreover, addressing regulatory pressures proactively allows companies to influence legislation, ensuring implementation aligns with strategic priorities.

The maritime sector’s adoption of ESG is also a powerful signal to stakeholders, demonstrating a commitment to responsible business practices and enhancing trust and reputation. Despite the shifting regulatory landscape, stakeholder expectations and environmental realities remain unchanged, making a continued push towards sustainability a necessity.

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References:

1. KPMG, 2024. The move to mandatory reporting. Available at: The move to mandatory reporting [Accessed 8 July 2025].

2. Faber, J. et al., 2021. Fourth IMO GHG Study 2020, International Maritime Organization (IMO).

3. International Maritime Organization, 2025. IMO Approves Net-Zero Regulations. Available at: IMO approves net-zero regulations for global shipping [Accessed 24 June 2025].

4. Poseidon Principles, 2023. Poseidon Principles for Marine Finance. Available at: Home - Poseidon Principles for Financial Institutions [Accessed 24 June 2025].

5. Maersk, 2025. Annual Report 2024. Available at: Sustainability – Reports and Resources | Maersk [Accessed 21 April 2025].

6. Hapag-Lloyd, 2025. Annual Report 2024. Available at: HLAG_FY_2024_EN.pdf [Accessed 21 April 2025].

7. KPMG, 2025. Sustainable Development and ESG Criteria in Shipping: Past, Present, and Future. Available at: Sustainable Development and ESG Criteria in Shipping... - KPMG Greece [Accessed 21 April 2025].

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