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Investor Presentaiton

29 A.P. Moller-Maersk Annual Report 2020 Directors' Report Our business Sustainability performance 2020 =1 A new level of integration The approach of A.P. Moller - Maersk and this land- scape of expectations were driving forces behind the decision to fully integrate sustainability into business activities, which was announced at the end of 2019. To fully deliver on sustainability as a strategic imperative, responsibilities must be embedded in the business and owned by business leaders. Governance and organisational struc- tures that correspond with this decision have been established, including a dedicated decarbonisa- tion function. 2025 We aim to connect 50% of global containerised trade to digital solutions that reduce supply chain barriers. Sustainability priorities for the global integrator strategy were defined in 2020: Enabling sustaina- ble trade by decarbonising logistics, sustainability in our end-to-end offerings and responsible busi- ness practices. Taking leadership on decarbonisa- tion of logistics is the single-most important stra- tegic sustainability priority for A.P. Moller - Maersk, as decarbonisation of the fleet is the area beyond comparison with the greatest potential for impact. Furthermore, A.P. Moller - Maersk aims to increase focus on sustainability in end-to-end offerings in response to the increased responsibility and opportunity to manage supply chain risks for cus- tomers as part of its global integrator business strategy. Commitments on inclusive trade, food loss and ship recycling are now fully owned and driven in the line of business. Responsible business practices continue to form the strong foundation including solid governance structures, accounta- bility and transparency on policies, commitments and performance across sustainability issues. A.P. Moller-Maersk's business activities enable open, inclusive and sustainable global trade, and the company continues to actively engage in the global debate through advocacy, projects and partnerships. Even more importantly still more elements are being added to the products and ser- vices offered that can ease the access of SMEs to participate in and benefit from global trade. A.P. Moller - Maersk's work on helping to halve food loss during transportation is run as an inte- grated part of the Cold Chain Logistics business of A.P. Moller-Maersk, focusing on developing and scaling solutions to connect and integrate cus- tomers' cold chains. This area now covers several hundred customers across nearly 50 countries. Investments made by the company's venture arm, Maersk Growth, also contribute to the overall sus- tainable development goal of reducing food loss. Enabling sustainable trade Sustainability priorities for the global integrator Decarbonising logistics Decarbonising logistics Sustainability in our end-to-end offerings Responsible business practices As an industry leader and with the resources avail- able at hand, A.P. Moller - Maersk has an obligation to do what it can to get to a carbon-neutral fleet as fast as possible, and to help customers decar- bonise global supply chains end-to-end. Vessel decarbonisation is beyond comparison the area with the greatest direct impact. The majority of efforts and investments in the near future will be on decarbonising ocean activities, as this holds the potential for the greatest impact and market leadership that enables setting the direction for an entire industry. However, expanding customer offerings in line with being the global integrator also makes it necessary to identify how the end- to-end supply chain can be decarbonised. L The decarbonisation strategy spans across three complementary pathways: Building a market for carbon-neutral shipping Building on customers' increasing momentum, integration of a new commercial strategy on sus- tainability began, aiming to respond to and aid customers on their decarbonisation journey. One key feature in this is the Maersk ECO Delivery product. Launched in 2019, it remains one of only a few options for carbon-neutral shipping on the global market so far. Read more about the product on page 40.
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