Table 1. Risk, return and impact in... | Emerald Publishing

Table 1.

Risk, return and impact in sustainability reports

Document	No.	Excerpt
Hapag-Lloyd sustainability report	1	“Our financial success is based on the trust that our employees, customers, partners and other stakeholders place in our company.” p. 22
NORDEN annual report	2	“This devaluation is a direct consequence of the transition towards low-emission technologies and could potentially lead to assets becoming stranded before the end of their useful life. NORDEN operates an asset-light fleet strategy, which mitigates this risk. This approach enhances our agility and flexibility, allowing us to adapt more readily to technological advancements and market shifts without incurring significant losses on asset value. By being an operator of assets, we mitigate the financial risk of declining asset prices that are tied to older, less efficient technologies.” p. 51
NORDEN annual report	3	“Internally, our Risk Committee assists the Board of Directors in its oversight of NORDEN’s overall risk-appetite and management of market, credit and liquidity risks as well as climate-related risks. Our decarbonisation team makes proposals as to how these opportunities and risks can be anchored in the commercial business. Our Audit Committee identifies and manages risks related to financial reporting and auditing, among others.” pp. 49–50
DFDS annual report	4	“The outlook can moreover be impacted by political changes, first and foremost within the EU and Türkiye… Future financial results may therefore differ significantly from outlook expectations.” p. 32
TORM responsibility report	5	“TORM has for several years incorporated financial mechanisms to drive ESG efforts whereby the Senior Management and the rest of the organization’s KPIs are directly linked to ESG targets to ensure that TORM continues to prioritize sustainable actions.” p. 3
	6	“The reporting governance is anchored in our Audit Committee, and our risk management of ESG efforts is anchored in our Risk Committee.” p. 3
	7	“In addition to operational and collaborative strategies, TORM maintains its efforts in the optimization and efficiency of our fleet by applying a broad set of technical improvements. These efforts include smaller investments with short payback time and also larger investments with an expected larger impact.” p. 14
Euronav sustainability report	8	“Euronav has been proactive in positioning for the future with its financing profile. Since 2020, Euronav has started to convert its existing credit facilities into credit facilities with specific targets for emission reduction. These loans included terms with clear targets to reduce its Greenhouse Gas (GHG) emissions over their duration. The targets were effective immediately, with compliance over the first 12 months being rewarded with a reduced interest coupon.” p. 47
	9	“Potential liability from future litigations related to claims raised by public-interest organisations or activism with regard to failure to adapt to or mitigate climate impact; – Increased cost of capital or limiting access to funding due to EU Taxonomy or relevant territorial taxonomy regulations;” p. 93 (on risk factors)
	10	“Failure to adapt to or comply with evolving investor, lender or other industry shareholder expectations and standards or the perception of not responding appropriately to the growing concern for ESG issues, regardless of whether there is a legal requirement to do so, may damage such a company’s reputation or stock price, resulting in direct or indirect material and adverse effects on the company’s business and financial condition… The increase in shareholder proposals submitted on environmental matters and, in particular, climate-related proposals in recent years indicates that we may face increasing pressures from investors, lenders and other market participants, who are increasingly focused on climate change, to prioritise sustainable energy practices, reduce our carbon footprint and promote sustainability. As a result, we may be required to implement more stringent ESG procedures or standards so that our existing and future investors and lenders remain invested in us and make further investments in us, especially given the highly focused and specific trade of crude oil transportation in which we are engaged. If we do not meet these standards, our business and/or our ability to access capital could be harmed.” p. 100
	11	“The new regulations could require the installation of new equipment, which may cause us to incur substantial additional costs which may adversely affect our profitability.” p. 114 (on ballast water management systems)
Transport Trade Services Sustainability Report	12	“In our view, transparency is the key factor in the success of any enterprise because, regardless of the results, a high level of transparency increases its value.” p. 4
Irish Continental Group Annual Report	13	“Replacing older vessels with efficient ones that incorporate the latest technologies. These will be capital intensive investments and as such we will need significant degree of certainty that our investment will be successful and cost effective to adopt these technologies.” p. 38 (on long-term decarbonization initiatives)
Maersk Sustainability Report	14	“In 2023, this included training for the M&A team on ESG priorities and further embedding climate change impact assessment into the due diligence and investment decision processes.” p. 11
Maersk Sustainability Report	15	“And while many Maersk customers have shown a willingness to pay a premium to decarbonise their supply chains, rising interest rates threaten to push fuel costs to customer limits.” p. 18

Document	No.	Excerpt
Hapag-Lloyd sustainability report	1	“Our financial success is based on the trust that our employees, customers, partners and other stakeholders place in our company.” p. 22
NORDEN annual report	2	“This devaluation is a direct consequence of the transition towards low-emission technologies and could potentially lead to assets becoming stranded before the end of their useful life. NORDEN operates an asset-light fleet strategy, which mitigates this risk. This approach enhances our agility and flexibility, allowing us to adapt more readily to technological advancements and market shifts without incurring significant losses on asset value. By being an operator of assets, we mitigate the financial risk of declining asset prices that are tied to older, less efficient technologies.” p. 51
NORDEN annual report	3	“Internally, our Risk Committee assists the Board of Directors in its oversight of NORDEN’s overall risk-appetite and management of market, credit and liquidity risks as well as climate-related risks. Our decarbonisation team makes proposals as to how these opportunities and risks can be anchored in the commercial business. Our Audit Committee identifies and manages risks related to financial reporting and auditing, among others.” pp. 49–50
DFDS annual report	4	“The outlook can moreover be impacted by political changes, first and foremost within the EU and Türkiye… Future financial results may therefore differ significantly from outlook expectations.” p. 32
TORM responsibility report	5	“TORM has for several years incorporated financial mechanisms to drive ESG efforts whereby the Senior Management and the rest of the organization’s KPIs are directly linked to ESG targets to ensure that TORM continues to prioritize sustainable actions.” p. 3
	6	“The reporting governance is anchored in our Audit Committee, and our risk management of ESG efforts is anchored in our Risk Committee.” p. 3
	7	“In addition to operational and collaborative strategies, TORM maintains its efforts in the optimization and efficiency of our fleet by applying a broad set of technical improvements. These efforts include smaller investments with short payback time and also larger investments with an expected larger impact.” p. 14
Euronav sustainability report	8	“Euronav has been proactive in positioning for the future with its financing profile. Since 2020, Euronav has started to convert its existing credit facilities into credit facilities with specific targets for emission reduction. These loans included terms with clear targets to reduce its Greenhouse Gas (GHG) emissions over their duration. The targets were effective immediately, with compliance over the first 12 months being rewarded with a reduced interest coupon.” p. 47
	9	“Potential liability from future litigations related to claims raised by public-interest organisations or activism with regard to failure to adapt to or mitigate climate impact; – Increased cost of capital or limiting access to funding due to EU Taxonomy or relevant territorial taxonomy regulations;” p. 93 (on risk factors)
	10	“Failure to adapt to or comply with evolving investor, lender or other industry shareholder expectations and standards or the perception of not responding appropriately to the growing concern for ESG issues, regardless of whether there is a legal requirement to do so, may damage such a company’s reputation or stock price, resulting in direct or indirect material and adverse effects on the company’s business and financial condition… The increase in shareholder proposals submitted on environmental matters and, in particular, climate-related proposals in recent years indicates that we may face increasing pressures from investors, lenders and other market participants, who are increasingly focused on climate change, to prioritise sustainable energy practices, reduce our carbon footprint and promote sustainability. As a result, we may be required to implement more stringent ESG procedures or standards so that our existing and future investors and lenders remain invested in us and make further investments in us, especially given the highly focused and specific trade of crude oil transportation in which we are engaged. If we do not meet these standards, our business and/or our ability to access capital could be harmed.” p. 100
	11	“The new regulations could require the installation of new equipment, which may cause us to incur substantial additional costs which may adversely affect our profitability.” p. 114 (on ballast water management systems)
Transport Trade Services Sustainability Report	12	“In our view, transparency is the key factor in the success of any enterprise because, regardless of the results, a high level of transparency increases its value.” p. 4
Irish Continental Group Annual Report	13	“Replacing older vessels with efficient ones that incorporate the latest technologies. These will be capital intensive investments and as such we will need significant degree of certainty that our investment will be successful and cost effective to adopt these technologies.” p. 38 (on long-term decarbonization initiatives)
Maersk Sustainability Report	14	“In 2023, this included training for the M&A team on ESG priorities and further embedding climate change impact assessment into the due diligence and investment decision processes.” p. 11
Maersk Sustainability Report	15	“And while many Maersk customers have shown a willingness to pay a premium to decarbonise their supply chains, rising interest rates threaten to push fuel costs to customer limits.” p. 18