A.P. Moller - Maersk Group I
Unlocking growth for society and Maersk
SustainabilityStrategy 2014–2018
A.P. Moller - Maersk Group
Last updated October 7, 2015
Sustainability Strategy 2014–2018 1A.P. Moller - Maersk Group
Contents
Introduction ............................................................................................................................................... 2
Strategy overview ................................................................................................................................... 3
Our approach .......................................................................................................................... 4
Enabling trade ......................................................................................................................... 5
Investing in education ............................................................................................................ 6
Energy efficiency and climate change ................................................................................. 7
Maintaining compliance and risk management ....................................................................... 8
A.P. Moller - Maersk Group Sustainability Strategy 2014–2018 2
Ready for the next stepA.P. Moller - Maersk is a global company with great strength
and vast outreach. We have the ability – and the responsibility
– to do things right and to contribute to a more sustainable
future.
We do this by taking responsibility for the adverse impacts
of our business and by seeking to enhance the positive as-
pects. With our last Group sustainability strategy, adopted
in 2010, we have taken a systematic approach to sustaina-
bility, focusing on integrating sustainability into business
processes and systems. The aim was two-fold: to mitigate
and manage sustainability risks, and to strengthen Maersk’s
position as a responsible and trusted business partner.
By now, we have achieved the overall ambition of integrating
sustainability at corporate level. We must continue to inte-
grate sustainability in our operations mitigating risks and
raising performance levels.
At the same time, we are well placed to reap the benefits
of the progress made so far, and are ready to take the next
step.
Introduction
“We will never stop working to be transparent and responsible, but we must now add to this and take sustainability a step further, focusing on how we can create more value.”Nils S. Andersen, CEO, A.P. Moller - Maersk
Maersk has made considerable progress integrating sustainability into business processes and systems. We are now ready for the next step: addressing sustainability challenges in a way that creates growth for society and Maersk.
A.P. Moller - Maersk Group Sustainability Strategy 2014–2018 3
SUSTAINABILITY VISION
We aspire to unlock growth – for society and Maersk. We
will achieve this through the core strengths of our busi-
nesses and by being a responsible business partner.
Unlocking growth for Maersk and societySince 2009, we have carried out impact studies and worked
with relevant stakeholders to identify areas where we can
address sustainability challenges in a way that creates
growth for Maersk and society. The knowledge derived from
this work has helped us determine key ‘sweet spots’ where
focusing our efforts will help us unlock growth.
Three sweet spots for growthEnergy and transportation are important for economic
development. The sectors support the development of
industries and the ability of countries to export goods.
However, there are different barriers hampering the growth
potential of our sectors as well as the countries we operate
in. We have identified and chosen three key priority areas
that, on one side, will help us address barriers to our growth
strategy and, at the same time, help address substantial
sustainability challenges in society.
Strategy overview
Sweet spots for unlocking growth for Maersk and society
Unlocking growth
ECONOMICEnabling trade
ENVIRONMENTALEnergy efficiency
SOCIALEducation
Volume
Economic growth
Cost savings
CO2 reduction
Skilled workers
Jobs
The Group Sustainability Strategy 2014–2018 aims at unlocking growth for Maersk and society by focusing on three sweet spots for growth.
A.P. Moller - Maersk Group Sustainability Strategy 2014–2018 4
Achieving long-term benefitsThe new strategic direction addresses systemic challenges
outside our own sphere. The approach demands a longer
term horizon but we believe that when industry-wide and
social challenges affecting all of us are addressed, the value
creation can be exponential.
The first two years of the strategy will focus on designing
and implementing relevant projects that can be scaled up
across growth markets where feasible.
Addressing systemic barriers to growth in society
SUSTAINABILITY STRATEGY
Through efforts to reduce barriers to trade, invest in
education and improve the energy efficiency of supply
chains, we aim to grow our industries while addressing
significant sustainability challenges in society.
Focus and selection
Develop e�ective models
Adoption and impact
Action plan, design and start-up of projects.
Best practices are selected and extended to other geographies and sectors.
Best practices adopted in the businesses supporting long-term growth.
2014–2015 2016–2017 2018–
A phased approach
Operations
Industry
WHAT
HOW
Partnerships
Society
Coalitions
Performance
Our approach
We will reach further outside our operational sphere to unlock opportunities for growth.
A.P. Moller - Maersk Group Sustainability Strategy 2014–2018 5
Benefits for society
Continuous trade expansion and access to global markets
can help generate economic development, stimulate job cre-
ation, increase people’s income and raise living standards.
This is beneficial especially in growth markets where the
cost of logistics may be twice as high compared to mature
markets.
The rapid growth of the global middle class (from 1.8 billion
people in 2009 to 4.9 billion by 2030) highlights the impor-
tant role of trade in terms of enabling consumer choice,
business opportunities and employment (OECD, 2010).
Providing the most efficient global transport for trade is
essential in order to meet the needs of current and future
generations.
According to the World Economic Forum (WEF), global
improvements in border administration and transport and
communications infrastructure could see global GDP increase
by USD 2.6 trillion (4.7%) and global exports by USD 1.6 trillion
(14.5%). Gains could be even higher in Sub-Saharan Africa,
with a potential GDP increase of 12% (WEF Global Enabling
Trade Report 2012). Transport and logistics can play a signifi-
cant role in realising this potential.
Benefits for MaerskMaersk offers cost-efficient transportation and operates
throughout the global transportation supply chain. Maersk
Line, APM Terminals and Damco contribute more than 50%
of the Group revenues. Maersk can achieve growth by:
• Taking a high share of new trade growth
• Improving procedures and cost efficiency
• Developing profitable niche markets
Our approach
Maersk can be a force for positive change in framework con-
ditions for trade by collaborating with other stakeholders.
We have the opportunity to engage proactively and help
shape the agenda by sharing our knowledge on trade and
the potential trade holds in creating economic growth and
development opportunities for society.
We will focus on three pathways:
• Improving the business environment
We will support the development of more efficient trade
procedures and documentation processes, shorter trans-
port times and other relevant initiatives. We will engage
with government bodies, public institutions and industry
associations.
• Improving local ability to access global markets
Businesses and sectors in different countries may
be unable to access international supply chains and
global markets due to a lack of scale, export and market
knowledge, investment capacity or lack of transport, cold
chains and logistics services. Maersk will support selected
training initiatives to help optimise transportation and
logistics expertise, disseminate knowledge and facilitate
networking, thereby enabling these sectors to raise their
level of competitiveness.
• Influencing governmental infrastructure investments
The absence of quality transport and infrastructure such
as road and rail networks can undermine the ability of
businesses to participate in global trade. Maersk will
engage in and influence discussions at national level on
inland infrastructure, modal solutions and technologies
to help countries overcome their bottlenecks and help
businesses achieve their potential.
Enabling trade ENABLING TRADE
We will unlock growth for society and Maersk by
improving conditions for businesses and industries to
participate in global trade.
A.P. Moller - Maersk Group 6
There is a major imbalance between supply and demand in
be created in developing countries to meet the growing
number of young people entering the employment market
social unrest and marginalisation. The same countries face
growth constraints due to lack of available talent within
key employment areas. Overall, investments in education,
training and employment provide opportunities for people
and communities to develop and prosper.
Investing proactively in training and education is in our inter-
est. Our growth ambitions depend on our ability to attract and
retain competent and highly quali�ed sta� in highly competi-
tive talent markets. Companies in emerging economies, in par-
Through strategic investments in training and education, we
will be able to contribute to the development of our work-
force, provide our employees with learning opportunities and
tap into a larger pool of talent. This will bene�t our key growth
markets in particular and support our growth strategy and the
long-term stability of our operations.
Furthermore, building and bringing on board local talent
creates stronger ties to the local community and enables
Maersk to engage positively with customers and host
nations. This applies especially to host nations (i.e. An-
gola, Brazil, Kazakhstan and Qatar) where companies are
required to recruit a speci�c quota of their nationals or pur-
chase from local suppliers, despite shortcomings in skills,
expertise and capacity to meet international quality and
safety standards. Increased local sourcing will in the longer
term also help Maersk to reduce costs by avoiding opera-
tional disturbances, minimising import costs or averting the
imposition of �nes for failing to meet quotas – which may
ultimately put our licences at risk.
Our approach
Maersk can be a force for positive change by supplementing
our short-term talent recruitment and training programmes
with initiatives to expand pools of talent in at least �ve
growth markets to support our long-term presence. We have
initially identi�ed Brazil and Angola as strategic locations
where we are in a strong position to expand on existing train-
ing infrastructure.
We will focus on three pathways:
• Investing in training and education in high-growth
markets
This will involve setting up or expanding Maersk Training
centres or joint ventures, expanding education collabo-
rations with secondary schools, colleges and academies,
developing curricula and designing new programmes.
We will ensure that Maersk employees are involved in the
programmes as instructors and consultants.
• Improving social inclusion
We aim to encourage gender and social inclusion by attract-
ing women and low-income young people on to the training
programmes or by providing internship opportunities.
Investing in education
EDUCATION
We will unlock growth for society and Maersk by invest-
ing in relevant training and education, contributing to
building the skills base in growth markets.
A.P. Moller - Maersk Group 7
Trade and economic growth may help raise living standards,
but economic growth also comes with a negative impact on
the climate and environment. The global challenge is both
to increase trade and economic well-being for a growing
population and mitigate the impacts of climate change and
environmental damage at the same time.
How or whether nations decide to respond to climate
change remains uncertain. Presently global warming is on
change will intensify. If they can be realised, the key bene�t
for society would naturally be to avoid dangerous climate
-
ports the position that adequate e�orts must be made to
By reducing the CO footprint of containerised transport and
optimising the energy e�ciency of global transport supply
chains, Maersk can help ensure that global trade can take
place in ways that are increasingly energy-e�cient. This will
also increase the likelihood of food and goods being sourced
from locations where they are produced more e�ciently – in
terms of both CO emissions and costs.
Signi�cant motivating factors include fuel cost reductions,
per con-
tainer. If Maersk Line had not improved its energy e�ciency
and CO
Furthermore, stakeholder expectations, the need to miti-
gate any statutory regulation and the desire to reduce our
negative impact on the environment make energy e�ciency
a priority across the Group.
We strive to promote energy e�ciency across the industries
in which we work, and focus our e�orts on where we can
reap the greatest bene�ts, namely within shipping. The
Our approachWe are in a strong position to expand on our e�orts and pro-
mote low carbon transportation as a solution within national
planning and infrastructure investments.
We will focus on two pathways:
• Further increase energy e�ciency
We will continue to reduce CO emissions across the
Group through our Group-wide target, and we will remain
at the forefront of energy e�cient shipping. Having
already made great advancements in energy e�ciency,
facilitate the increasing global trade in goods at continu-
ously lower carbon intensity.
• Support the development of e�cient supply chains
With the goal of optimising global transport supply chains
and ensuring energy and cost-e�cient trade, we will ad-
vocate the low carbon potential of waterborne transport
for national infrastructure investments and govern ment
planning solutions.
and climate changeENERGY EFFICIENCY
We will unlock growth for society and Maersk by enhan-
cing our CO e�ciency and promoting e�cient supply
chains.
A.P. Moller - Maersk Group Sustainability Strategy 2014–2018 8
Integrating sustainability: an ongoing journeyWe will continue to integrate sustainability in our opera-
tions, mitigating risks and raising performance levels.
The Group programmes will carry on ensuring compliance
with our policies and standards on anti-corruption, responsi-
ble procurement and global labour principles. The businesses
are responsible for implementing the programmes as well as
meeting the targets adopted for health and safety, climate
change, and diversity and inclusion, and overall for ensuring
compliance with the policies issued by the Group.
Every year, this work will be subject to a compliance self- assess-
ment process where the Group follows up on the progress of
implementation and reports on the performance achieved.
The Group’s Sustainability Council will continue to oversee
strategy and performance. Review meetings with the busi-
nesses’ CEOs will keep ensuring a constructive dialogue on
progress and forward-looking opportunities.
Maintaining compliance and risk management
The Group Sustainability function will continue to capture
relevant developments in society and their impacts on
our business, draw up recommendations for appropriate
action, develop relevant Group programmes, provide yearly
materiality assessments and tools, support internal risk
assessment processes, and communicate and report on the
Group’s sustainability performance.
Together, these programmes, strategies and initiatives form
the backbone of our Group corporate responsibility efforts
and help ensure that we live up to our commitment to the
UN Global Compact principles while mitigating our most
significant sustainability-related risks.
We will continue to integrate sustainability into our operations, mitigating risks and raising performance.
What we achieved 2010–2013
Key milestones include
• Mandatory Group programmes put in place to
ensure compliance with minimum standards on
anti-corruption, responsible procurement and global
labour principles.
• Group strategies adopted for health and safety,
climate change, and diversity and inclusion.
• Solid governance framework established.
• CEO reviews ensuring constructive dialogue with busi-
ness CEOs on progress, challenges and opportunities.
• An integration assessment framework to monitor and
support progress in the businesses.
• Sustainability incorporated into leadership training,
the annual employee engagement survey and enter-
prise risk management processes.