Global Energy Giants Vow to Disclose GHG Emissions From Shipping

By CITL / Shutterstock

By Aaron Clark (Bloomberg) –Global energy and commodity titans including Royal Dutch Shell Plc, Trafigura Group Ltd. and Cargill Inc. plan to start disclosing greenhouse gas intensity and total emissions from their shipping operations.

Under the initiative, companies will calculate emissions and assess how they align with decarbonization goals on an annual basis, the Global Maritime Forum, an industry group, said in a statement. The agreement, known as the Sea Cargo Charter, also mandates the firms publicly release their alignment scores.

The charter comes as the industry faces tougher International Maritime Organization rules that require emissions from shippers to be halved by 2050 from 2008 levels. It also underscores how companies are adapting to investor demands for greater transparency over climate risks from their operations.

Shipping remains the backbone of the global economy and is responsible for about 90% of world trade, though it also accounts for almost 3% of man-made CO2 emissions, a share that is growing.

The charter “will encourage a more transparent and consistent approach to tracking emissions, which will be a critical part of making shipping more sustainable,” Cargill Ocean Transportation President Jan Dieleman said in an emailed statement from GMF. “A standard greenhouse gas emissions reporting process will simplify some of the complexities often associated with reporting.”

Founding signatories of the charter include Anglo American Plc, Bunge Ltd. and Equinor ASA, according to the statement.

© 2020 Bloomberg L.P

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