Publication / 23 Feb 2009

Sector Briefing: Eurosif Shipping Report

Eurosif partnered with Trucost to assess six critical environmental, social and governance (ESG) challenges and opportunities facing the shipping industry.

Eurosif commissioned Trucost to carry out the shipping sector report in order to provide guidance to investors as to some of the major environmental, social and governance (ESG) challenges facing the shipping industry. The analysis also examines the related risks and opportunities these ESG challenges present to long-term returns.

The shipping industry transported more than 90% of global and European external trade with some 50,000 cargo ships transporting 7.7 billion tonnes of cargo in 2007. Pollution can present a risk to investors largely due to the exposure of merchant shipping companies to potential financial liabilities under regulatory regimes.

The European Commission aims to internalize environmental and health-related costs, known as negative externalities or damage costs, into transport pricing to help make the sector more sustainable. The environmental damage costs of air pollution, including CO2 emissions, from the transport sector in Europe could total €210 billion by 2020. Trucost has calculated emissions to air from the shipping segments of 11 companies in the MSCI All World Developed (AWD) Index. Just four of the companies, including one of six based in the EU, report their emissions to air, reflecting the industry’s general lack of transparency on environmental impacts.

26 November, 2019
Events Webinar: Developing SDG Analytics for Financial Portfolios

Your feedback is invited as we develop SDG Analytics for Financial Portfolios

Find out more
1 October, 2019
Events Webinar: Incorporating Physical Risk in TCFD Portfolio Climate Reporting

Join Trucost's complimentary webinar to hear expert opinion on how physical risk factors can impact TCFD reporting.

Find out more
24 October, 2019
Events Hong Kong Thought Leadership Seminar Eyes On Asia – Restocking The Investment Toolkit

As investment strategies continue to evolve, investors have a more sophisticated set of tools available to help navigate different economic cycles and market conditions – ranging from factor-based investing and ESG to multi-asset solutions. Join S&P DJI and leading financial professionals to keep pace with the latest investment strategies that can help investors stay...

Find out more