Splash247: Shipping industry falls short on ESG delivery despite governance progress

Published by Splash247

While environmental, social, and governance (ESG) frameworks are now widely established across the shipping industry, they are not consistently translating into operational performance, according to Lloyd’s Register’s Maritime ESG Benchmarking Report.

The ‘Measuring ESG maturity in maritime‘ report, published by LR’s ESG Advisory service, presents findings from the Maritime ESG Maturity Index (MEMI), the industry’s first transparent, comparable framework for measuring ESG maturity.

Drawing on a statistically validated assessment of 48 global shipping companies across multiple sub-sectors, MEMI evaluates performance across governance, environmental management, social responsibility, disclosure, and supply chain practices.

Shipping currently scores an average of 56 out of 100, placing it in the lower ‘advanced’ category, with most companies having established governance structures but falling short in environmental execution, supply chain transparency and assured performance data.

The analysis identifies a structural imbalance: 27 of 48 companies score significantly higher on governance than on environmental performance, highlighting a gap between ESG strategy and operational delivery.

Only a quarter of companies assessed reached ‘leader’ status, with the rest clustered across varying levels of maturity. Container shipping leads with a mean score of 74.7, while dry bulk attained the lowest at 49.5, reflecting fragmented ownership and lower commercial ESG incentives.

Americas-headquartered companies achieve the highest regional mean at 62.7, driven by NYSE and NASDAQ-listed operators. Europe scored 55.3, and Asia Pacific 55.7, are close to the industry mean of 56, with listed status seen as the strongest predictor of good performance.

“This landmark report provides organisations with an objective view of industry progress, helping them assess their position, identify opportunities, and make more informed strategic decisions. It also offers important insights into the maritime industry’s journey towards efficient and sustainable operations, as well as the social and governance foundations needed to deliver lasting progress,” said Ambrish Bansal, SVP for business advisory and consultancy at LR Advisory.

Companies with stronger ESG capabilities are better positioned to secure financing on favourable terms, meet charterer requirements, and reduce long-term operating costs. Maritime-specific environmental issues, including biodiversity impacts and underwater noise, remain largely unaddressed across the sector, even among top performers.