2010
the course Setting The A.P. Moller - Maersk Group’s - Maersk Moller A.P. The Sustainability Report
A.P. Moller - Maersk Group Sustainability Report 2010
Contents
introduction Company profile ...... 6 Foreword by the CEO ...... 9 About the report ...... 10 Group consolidated performance ...... 13 our approach Maersk’s new sustainability Sustainability strategy ...... 14 strategy secures global standards, Governance ...... 17 governance, performance measure- Stakeholder engagement ...... 19 ments and business integration. health and safety Pages 14 –16 Health and safety ...... 22 Piracy ...... 27 social responsibility Global labour principles ...... 28 Diversity ...... 32 Disaster response programme ...... 34 climate and environment Safety is a key priority in our busi- Climate change ...... 36 ness units. The Deepwater Horizon Environment ...... 41 accident in the Gulf of Mexico led responsible business practices to internal reviews and changes in Anti-corruption ...... 44 safety procedures. Pages 22 – 27 Responsible procurement ...... 48 business unit performance Business unit introduction ...... 50 Container activities Maersk Line ...... 52 Safmarine ...... 55 Damco ...... 57 Reaching our CO2 reduction target Oil and gas activities two years ahead of time can in large Maersk Oil ...... 59 part be attributed to the use of slow Terminal activities steaming – perhaps also setting a new APM Terminals ...... 62 industry standard. Pages 36 – 40 Tankers, offshore and other shipping activities Maersk Tankers ...... 65 Maersk Drilling ...... 68 Maersk FPSOs ...... 71 Maersk Supply Service ...... 73 Svitzer ...... 75 Retail activity Dansk Supermarked ...... 77 Energy efficiency is fast becoming Other businesses a business opportunity for Maersk. Maersk Container Industry ...... 80 We have recently ordered 10 new Odense Steel Shipyard ...... 82 ships which will be the largest and accounting principles and assurance most CO2 efficient to date. Page 43 Sustainability accounting principles ...... 84 Assurance statement ...... 86
A.P. Moller - maersk group Introduction Sustainability Report 2010 6
Company profile
5 3
1 MAERSK DRILLING 2 4
8 11
10
MAERSK OIL 13 7 MAERSK TANKERS
SVITZER
MAERSK TANKERS SVITZER 9 6 MAERSK LINE 12
MAERSK SUPPLY SERVICE
MAERSK FPSOs SAFMARINE
MAERSK SUPPLY SERVICE
MAERSK LINE
SAFMARINE
MAERSK FPSOs 1 APM Terminals 2 Damco 3 Dansk Supermarked 4 Maersk Container Industry 5 Maersk Drilling 6 Maersk FPSOs 7 Maersk Line 8 Maersk Oil
The A.P. Moller - Maersk Group (Maersk) We are the world’s largest operator in the these companies are industry leaders in is a worldwide conglomerate headquar- transportation of containers using sea sustainability, working to promote high tered in Copenhagen, Denmark, with transport, including planning and execu- industry standards. Finally, we own ship- offices in more than 130 countries and tion of efficient transport solutions on building, air cargo and retail companies. approximately 108,000 employees. land, and running portside container ter- minals. Our position in the transport in- An approximate 1,000 companies make Our consolidated turnover in 2010 was dustry grants us the potential to impact up the A.P. Moller - Maersk Group, oper- USD 56,090 million. In the same year, standards and business models, moving ating under a variety of brands. The ma- the Group presented a profit of USD them towards greater sustainability. jor ones are shown in the graphic above, 5,018 million. and a list of major companies can be We also run companies in the energy found in our annual financial report. The Group consists of a range of sector, exploring and producing oil and diverse companies working in energy gas as well as providing offshore ser- intensive industries, most being signifi- vices such as tanker transport, drilling Read more www.maersk.com/investorrelations cant players in their field. and other marine services. Some of
A.P. Moller - maersk group Introduction Sustainability Report 2010 7
5 3
1 MAERSK DRILLING 2 4
8 11
10
MAERSK OIL 13 7 MAERSK TANKERS
SVITZER
MAERSK TANKERS SVITZER 9 6 MAERSK LINE 12
MAERSK SUPPLY SERVICE
MAERSK FPSOs SAFMARINE
MAERSK SUPPLY SERVICE
MAERSK LINE
SAFMARINE
MAERSK FPSOs 9 Maersk Supply Service 10 Maersk Tankers 11 Odense Steel Shipyard 12 Safmarine 13 Svitzer
Cash outflow and revenue distribution 2010
Cash outflow distributed by stakeholder group Revenue split on regions
Maersk’s activities generate jobs, wealth and payment of taxes both directly and Suppliers indirectly, as seen in the graphic. 8 Employees 10 8 (salaries) Europe & Eurasia Our revenue flows from all parts of the world and our activities enable trade Shareholders 17 Asia & Pacific 8 and production, helping to drive eco- Percentage (dividends) Percentage Middle East 49 nomic growth. 9 57 Public sector Americas (taxes) 11 Africa Being this integrated in the nuts and 10 Investments (net) 13 bolts of global society calls for a sus- Repayments of tainable approach to business. We see borrowings this as both a clear responsibility and an equally large opportunity for our Group.
A.P. Moller - maersk group Maersk’s Executive Board is increasingly involved in sustain- ability efforts, and safety is always the first item on their agenda. The new Sustainability Council reports directly to the Executive Board and is chaired by one of its members.
The Executive Board functions Kim Fejfer, CEO of APM Terminals Jakob Thomasen, CEO of Maersk Oil as the day-to-day management Søren Skou (seated), CEO of Maersk Tankers Claus V. Hemmingsen (seated), CEO of Maersk Drilling and consists of (from left): Eivind Kolding, CEO of Maersk Line and Chairman of the Group Sustainability Council Nils S. Andersen, Group CEO Trond Westlie, Group CFO Introduction Sustainability Report 2010 9
foreword by the ceo
Our history is closely linked to the development and spread of world trade in the last century and, as such, to globalisation. This will continue in the next century, with our Group working for sustain- able development and growth of our business.
The future looks exciting for our Group. strategy aims to integrate sustainability A grim reminder of our safety obligation We have mastered a turn-around in into all our business processes and is that 12 persons lost their lives while 2010, changing 2009’s historic loss make it a competitive advantage. A clear working for us or on our premises in into the Group’s best result so far. governance structure has been estab- 2010. We cannot accept this and have lished to drive us towards this goal, and over the last few years continued our ef- Global trade is increasing and will con- a number of group-wide programmes forts to avoid these tragic losses of life. tinue to do so. Rapidly developing econo- were approved in 2010 for global roll- mies in emerging markets and slow eco- out beginning 2011. The strategy also nomic recovery in the US and Europe, will shows our continued commitment to Ahead of time on CO2 lead to shifts in trade patterns and global the UN Global Compact. The Group’s first target for greenhouse power balances. Whilst we are optimistic gasses was to achieve an overall 10% about the opportunities and the positive How to make a profit is a decision made reduction relative to business activity effect these will have on people’s lives, we by each company, guided by a mix of by 2012. We are proud that we have also foresee more pressure on resources values and opportunities. Maersk’s reached this target already. from increasing consumption, the scale- choice is to pursue a business model up and diffusion of green technologies that supports sustainable develop- Today, we are the global no. 1 in con- as well as social challenges. ment, implying that our results go tainer shipping, but we have the poten- hand in hand with considerate use of tial to become leaders in more industries Being active in shipping, ports and inland resources, natural as well as human, within transportation and energy. We will infrastructure, oil production and services, and that our services are of value to pursue this goal with efficiency and de- we are convinced that our Group will customers and the societies we work in. termination, as a way to move towards have attractive opportunities in this sustainable economic growth – for scenario. During 2010 we expanded our Maersk and for the global community. investments and business in West Africa, A close look at safety Asia and Latin America, not only grow- Every time our Executive Board meets, ing our own business, but also helping the first item on our agenda is safety. develop communities and economies. Because we must keep our minds on Nils S. Andersen the safety of our people and operations. CEO of the A.P. Moller - Maersk Group
Outstanding conduct The accident in the Gulf of Mexico required reinforced this. It led us to investigate We must be outstanding in both results safety procedures in our offshore busi- and conduct, and we are pleased that nesses, where we made improvements, the Group’s sustainability strategy is but also found that our equipment was now in place. Setting the course, the already beyond regulatory compliance.
A.P. Moller - maersk group Introduction Sustainability Report 2010 10 About the report
Maersk sees reporting on our sustainability performance as a key part of being a sustainable business.
This is our second sustainability report, focus is on the sustainability work of the pared to the operational scope used in with which we aim to provide internal business units included in this report. previous years’ reporting. As far as we are and external stakeholders including aware, using financial scope for all sus- shareholders, employees and custom- Compared with our 2009 report, tainability reporting is an approach hardly ers, with an account of our position and published in March 2010, we no longer ever chosen in sustainability reporting. performance on sustainability issues. report on Norfolkline and Rosti as these Our change in data scope is driven by the companies are no longer under Maersk desire to establish a clear connection The reporting period is 1 January to 31 ownership. Container Inland Services between responsibility for impacts and December 2010. The report describes has been merged into APM Terminals income and costs generated. our activities at Group level and for the and is no longer presented separately. following six segments: Danbor and Star Air do not have indi- Using financial scope for data builds a vidual chapters in the 2010 report due gangway between our reported eco- 1. Container activities (Maersk Line, to alignment with financial data report- nomic activities and reported sustain- Safmarine, Damco) ing, as explained below (see full data for ability impacts, providing stronger inte- 2. Oil and gas activities (Maersk Oil) Danbor on www.danbor.dk). In 2011 we gration of sustainability with core 3. Terminal activities (APM Terminals) will finalise a reporting strategy, which business, which is the stated goal of 4. Tankers, offshore & other shipping will determine how our sustainability Maersk’s sustainability strategy (read activities (Maersk Tankers, Maersk reporting will develop from 2011–2014. more on page 15). By applying financial Drilling, Maersk FPSOs, Maersk scope, financial and sustainability data Supply Service, Svitzer) become directly comparable. It is now 5. Retail activity (Dansk Supermarked) Scope possible to see the link between reduc- 6. Other businesses (Maersk Container The text in the report covers activities for tions in the cost of bunker oil and CO2 Industry, Odense Steel Shipyard) Group level and for the business units emissions. listed above, while consolidated data Pages 14–49 are dedicated to pro- includes the full range of Maersk activi- The difference in choosing financial grammes, initiatives and performance ties. Data for 2010 are reported based on scope can be seen for example in at Group level. On pages 50 – 83 the financial scope, which is different com- Maersk Oil, which in many cases only
A.P. Moller - maersk group Introduction Sustainability Report 2010 11
owns a proportion of an oil field, but We have sought to alleviate this by in addition to financial scope data, often is selected as the operator of the re-stating all 2009 figures based on reflected in orange colour coding. entire field. Using operational scope financial scope, thus adhering to re- would in these cases set Maersk Oil’s quirements and standards applied for See additional general notes for the share of emissions and safety inci- scope changes in financial reporting. data on pages 84 – 85. dents, etc. at a much higher level than what is reflected by the production and We are confident that the change in revenue figures within the financial data scope and the transfer of data scope. Conversely, in the cases where processes to our Group Accounting Maersk Oil owns shares in oil fields department have already improved Calculating GHG where they do not operate, using the the quality of our sustainability data efficiency operational scope would not include the significantly, which has been a stated impact of these activities in our sustain- intention throughout our reporting Our first greenhouse gas (GHG) reduc- ability data. In this case, the production history. tion target was set with 2007 as base- and revenue included in the financial line, proposing 10% reduction relative report, would appear to be free of emis- Business units like Maersk Drilling and to business activity before 2012. By sions, safety incidents, etc., skewing the Maersk Supply Service are affected the end of 2010, we had improved our picture of the Group’s performance. most by the change in data scope, due efficiency by 13%. to the fact that a major part of their The move to financial scope for sustain- business consists of leasing out equip- Given the diversity of our operations, ability reporting is also made in prepara- ment, which makes their impacts ap- measures of emissions of GHG per busi- tion for the establishment of sustain- pear much smaller than previously. ness activity (efficiency) had to be de- ability performance metrics, which fined for each business unit. Where in- requires direct correlation between APM Terminals’ data are also affected, dustry standards were emerging, as for financial activity and sustainability. because it often operates through joint example container shipping through the Finally, the use of financial scope makes ventures and associated companies. Clean Cargo Working Group (see page way for integrated reporting in the Maersk Oil will be affected as indicated 21), we used this method for measuring future, if we were to decide to do that. above – thus, sometimes the scope for efficiency. operational data are larger and some- times smaller than the financial scope. The voluntary target was set at a time Data comparability In the individual pages for the most when the establishment of a full overview The change will impact the compara- affected business units, data based of our GHG efficiency was still in pro- bility of numbers from previous years. on operational control will be included gress, and we can in 2010 directly trace 85% of our emissions. The remaining 15% come mainly from office buildings and small shipping lines for which we do not have historical data of sufficient qual- Responding to 2009 assurance recommendations ity to track performance. We now set out Two primary areas of improvement were suggested by Det Norske Veritas to make a new climate change strategy,
Collection and aggregation 2010: the data processes were moved to Group Accounting, including full coverage of our efficiency. of data and formalised data which means that scoping, consolidation and definitions audit procedures. have been aligned across the Group and with the financial In the Group consolidated performance reporting. Read more about our sustainability accounting table the figure for total absolute GHG principles on pages 84 – 85. emissions, representing our full, abso- Competencies in managing 2010: As part of our sustainability strategy process we and documenting local mapped our stakeholders and began a survey to establish lute climate change responsibility, can stakeholder dialogue. a baseline of stakeholders’ perceptions of Maersk, including be seen. See page 39 for more details on the six largest business units. Read more about our stake- our GHG efficiency performance. holder engagement survey on page 19.
A.P. Moller - maersk group Introduction Sustainability Report 2010 12
Materiality riality to Maersk has been established. internal and external stakeholders The subjects covered are related to This has been done through a process spanning the last four years as illus- sustainability issues, where their mate- of research and dialogue with both trated below.
Process to determine materiality
Environmental strategy process in 2007 Health, safe and securi
High-level materiali review in 2008/2009 Environmental impact, including climate change impacts UN Global Compact gap analysis in 2008 Human rights and labour relations Business unit strategy process in 2009 MATERIALITY Communi involvement and investment Workshop with assurance provider ASSESSMENT Det Norske Veritas in October 2009 Supply chain management and procurement
Stakeholder feedback on Sustainabili Business conduct and governance Report in 2010 Public policy and advocacy A benchmark review and report assessment by SustainAbili in June 2010 Reputation/stakeholder engagement
Health and safety Climate and environment Social responsibility Responsible business practices
Road map for reporting on key sustainability issues
2007 2008 2009 2010 2011 2012 2013 Social issues Employee Health & Safety Security Labour relations Diversity Communities Responsible business conduct Responsible procurement Responsible lobbying
Environmental issues Energy efficiency Ressource efficiency (steel) Water efficiency Climate change (GHG) Air pollution (emissions) Waste reduction Accidental pollution (spills)
Economic issues Financial performance Energy cost Cash distribution
Reporting on key issue Indicator added Policy/guidelines developed Will be further developed in 2011 following the Reporting Strategy
A.P. Moller - maersk group Introduction Sustainability Report 2010 13 group consolidated performance
Social performance a Our employees – = Not available a Including Group 2007 2008 2009 2010 functions. Number of full time employees (FTE) 117,319 119,599 115,386 108,110 b Dansk Supermarked Gender (female representation) % – – 33 34 is not part of the Employee engagement b % 66 66 67 69 Group’s annual Em- ployee Engagement Performance appraisals % – – 48 60 Survey, but carry out Safety an individual survey Lost time injury frequency (LTIF) frequency – c 5.57 c 5.14 4.44 every second year. c Fatalities number 25 c 20 c 13 d 12 Data not fully reported in 2007 and 2008. d Two fatalities Environmental performance mentioned in our sustainability report Energy consumption 2009 have been 2007 2008 2009 2010 removed due to Fuel oil 1,000 tonnes 13,848 13,017 11,390 10,724 change of scope. Diesel 1,000 tonnes 577 422 383 296 The two fatalities occured at the Natural gas 1,000 tonnes 908 886 767 861 premises of a third Electricity 1,000 MWh 737 1,581 1,207 1,159 party, making them Energy consumption GJ – – 507,801,426 479,068,238 liable to report. Greenhouse gas (GHG) emissions e Increase due to Maersk FPSOs data GHG emissions 1,000 tonnes CO2 eq 53,352 47,612 42,194 39,076 included from 2010. Direct GHG emissions (Scope 1 GHG Protocol) CO2 1,000 tonnes 50,296 46,555 40,766 37,700 Rosti and Norfolkline CH4 1,000 tonnes CO2 eq 852 131 631 547 are only partially N2O 1,000 tonnes CO2 eq 1,076 200 192 188 included in 2010, HFC 1,000 tonnes CO2 eq – 3 53 81 since they were sold during the year. The PFC 1,000 tonnes CO2 eq – – 0 0 data collected until SF6 1,000 tonnes CO2 eq – – 0 0 point of sale are FTEs, Indirect GHG emissions (Scope 2 GHG Protocol) gender-split and CO2 1,000 tonnes 1,128 723 549 557 safety data. CH4 1,000 tonnes CO2 eq – – 0 0 N2O 1,000 tonnes CO2 eq – – 3 3 Other air emissions
SOx 1,000 tonnes 656 653 501 456
NOx 1,000 tonnes 1,094 1,042 946 887 VOCs 1,000 tonnes 16 32 25 21 Particulate matters 1,000 tonnes 45 29 83 79 Other resource consumption Steel consumption 1,000 tonnes – – 202 346 Waste total 1,000 tonnes – – 472 483 – recycled (composting, reused, recycled) 1,000 tonnes – – 230 296 – solid (landfill, on-site storage, incineration) 1,000 tonnes – – 199 147 – hazardous (controlled deposit) 1,000 tonnes – – 43 40 Water consumption 1,000 m3 – – 4,669 3,525 – surface water 1,000 m3 – – 43 51 – ground water 1,000 m3 – – 1,287 228 – rain water 1,000 m3 – – 0 0 – municipal water supplies /water utilities 1,000 m3 – – 3,339 3,246 Spills m3 – – 3 40 e
Economic performance
2007 2008 2009 2010 Revenue USD million 51,278 61,270 48,580 56,090 Profit for the year USD million 3,422 3,462 -1,024 5,018 Tax for the year USD million 4,507 6,927 3,805 4,655 Electricity cost USD million – – 194 178
A.P. Moller - maersk group In a conglomerate as diverse as Maersk, strategies are high- level. For sustainability, the targets of full business integration and solid performance management are mandatory for all. How these targets are achieved is defined by each business unit with support from Group level. Our approach Sustainability Report 2010 15 Sustainability strategy
Maersk mainly has a presence in three economic segments: transport, energy and retail. Collectively – and also in their own right – these seg- ments constitute the very backbone of a globalised world economy.
We are a global group of companies with The challenges graphic changes will lead to shifts in significant financial strength and out- An increasingly more globalised world consumption patterns and workforce reach. Our activities secure the mobility implies greater need for transport and access. Increased competition for nat- of goods and facilitate trade, underpin- energy. Maersk has already benefitted ural resources and climate change will ning both development and economic from globalisation, but we readily bring substantial changes to many growth. We participate in the supply of acknowledge that for others it has markets, particularly energy and trans- energy for production and help define created disadvantages. The world port. All are challenges on which international patterns of consumption. at large is presently going through a Maersk must act. We are deeply embedded in the world’s infrastructure, and accordingly Maersk has a large potential for impact. “To win in the long term in a world with such chal- lenges, requires us to integrate sustainability in An industrial conglomerate with our reach thus has a role to play in pro our business thinking and practices.” moting human rights and international Annette Stube, Head of Group Sustainability in the A.P. Moller - Maersk Group standards in the performance of eco- nomic activity. Examples are promotion of good employment and respect for massive transition and is dealing with As a company we must combine our workers’ rights, as well as transfer of a number of challenges brought on by efforts to grow our business with activi- knowledge. In short, we have the ability this change. ties to address these global challenges. and responsibility to do things right and This means running and growing our contribute to a more sustainable future There is an increasing number of people business at the same time as working for the planet and our stakeholders. We and countries striving for economic to do more with less, working smarter see this not as a constraint but rather growth, at a time when global and local and working to fulfil fundamental needs an opportunity for our businesses. eco-systems are under pressure. Demo for transport, trade and energy supply.
A.P. Moller - maersk group Our approach Sustainability Report 2010 16
Our actions Strategy implementation development of key performance The implications of this world in Maersk began the implementation of indicators on sustainability linked to transition are that although economic a new Group sustainability strategy reward systems. opportunities are bountiful, taking in 2010. The aim of the strategy is to advantage of these needs to be done articulate leadership and set strategic 3. Trend spotting and stakeholder in consideration of the balancing act direction for our business units with engagement – investigating future of global stability. Concern has to the purpose of turning sustainability trends for risks and opportunities be shown for how activities impact into a mid- to long-term competitive for Maersk and aligning future ac- climate change, local economies and advantage for the Group. tions with stakeholder expectations. communities, human rights, as well as the safety of people involved in We will continue our historical role 4. Capital expenditure – where in operations. as growth enabler with a strong view due course all business units and to building a sustainable future. group investment decisions should Maersk will always compete to win, This must be based on respect and include sustainability perspectives. and we will grow our businesses and constant care for people, societies make use of commercial opportunities and the environment. At the same 5. New markets and innovation as they arise. But we are also commit- time, we regard this change as a great – to enable development of new ted to balancing our competitive drive opportunity to capture more and new business models by turning with the need for more sustainable business through innovation and mar- sustainability issues into business growth. ket development. opportunities.
“To win in the long term in a world The sustainability strategy’s five priori- with such challenges, requires us to Five priorities for business ties provide us with a firm foundation integrate sustainability in our business integration for achieving business integration thinking and practices,” says Annette The main aim in the Group sustainabil- of sustainability in the true sense Stube, Head of Group Sustainability. ity strategy is to integrate sustainability of the word. This implies employee fully in all business operations by 2013. performance appraisals amended We structure our work in four themes: to also reflect safety, environment, health and safety, environment and social responsibility, etc., and working Our sustainability vision climate, social responsibility and re- towards adding a sustainability filter sponsible business practices, and we in decisions on the totality of Maersk’s Our vision is to be a responsible and will report publicly on each of these investments. profitable enterprise balancing eco- annually. nomic, social and environmental con- This process of integration is only cerns for the benefit of the company We have five priority areas when work- possible through deep collaboration and the global community. ing with these themes: between group functions and busi- ness units. Many business units have 1. Group standards – with which already begun their journey towards all business units and group func- implementation of the sustainability tions must comply. The Group will strategy, as described in the business Our sustainability report annually on compliance with unit section of this report. Moreover, strategy standards. the governance structure for sustain- ability, which is introduced in the next Our strategy is to integrate sustainabil- 2. Performance management – by chapter, will help connect Group and ity systematically into all our business including sustainability in manage- business unit levels more, as well as processes and make sustainability a ment reviews and leadership devel- sharing good practice. competitive advantage. opment programmes, our employee engagement survey, as well as
A.P. Moller - maersk group Our approach Sustainability Report 2010 17 Governance
Knowing the end point of a journey is not enough. To arrive successfully at your destination you need to be clear about who is in charge and who is making the decisions on how to get there. In a word: governance.
The ability to set direction, oversee the creation of this governance struc- Working groups will be set up to alignment and performance through- ture strengthens the sustainability develop and review standards and out the organisation has been secured work in the Group. policies on sustainability issues, and in our sustainability strategy, with the have participants from both group design of a comprehensive governance It establishes that the Group’s top functions and business units. structure. This structure will help us management has overall responsibility achieve our strategic goals. for sustainability matters, while the Business units will develop and Group Sustainability team is to ensure implement their own sustainability “The Group Sustainability Council will tie the ends together and set direction across the Group. Our approach is to “The Group Sustainability Council will tie the ends integrate sustainability systematically into all our business processes and together and set direction across the Group. Our make it our competitive advantage approach is to integrate sustainability system whenever possible,” says Claus V. atically into all our business processes and make Hemmingsen, Chairman of the Group Sustainability Council, member of the it our competitive advantage whenever possible.” Executive Board and CEO of Maersk Claus V. Hemmingsen, Chairman of the Group Sustainability Council, Drilling. member of the Executive Board and CEO of Maersk Drilling
Roles and responsibilites delivery of the sustainability strategy’s strategies and group standards as rel- defined activities and drive performance. evant to their business. This includes The governance structure for sustain- Together with other group functions, monitoring and reporting on their ability establishes clear roles and Group Sustainability leads develop- performance. Each business unit’s division of responsibilities. It is based ment of the Group’s sustainability leadership team will in due course have on Maersk’s Principles of Conduct, and policies and pilot projects. specific objectives and clear and sim-
A.P. Moller - maersk group Our approach Sustainability Report 2010 18
ple performance indicators, ensuring performance indicators for manage- Building trust high-level accountability at business ment, which will be implemented to Solid governance principles are the unit level. ensure that the Group rewards deci- foundation upon which stakeholders’ sions and performance that take both trust is built. They provide transpar- economic, social and environmental ency and inspire momentum in reach- Strategic instruments factors into consideration. See govern- ing the stated vision and objectives. To reach our strategic goals, a number ance framework below. of performance management tools With the implementation of these new are part of the governance set-up Furthermore, an annual sustainability governance principles and methodolo- in Maersk. They are being designed day for the Executive Board will be or- gies, we aspire to earn this trust, as with careful consideration of capacity ganised, where top management will well as drive performance. building and accountability at all levels engage in the sustainability agenda of the Group. This includes the use of faced by the Group across its oper management reviews of business unit ations. performance and of sustainability key
Sustainabilitygovernance framework
COMMITMENTS GOVERNANCE PERFORMANCE MANAGEMENT
Executive Board Our values Executive Board sustainabili day
Maersk Principles of Conduct Personal KPIs Sustainabili Council
UN Global Compact Employee engagement survey
Management Enterprise risk Policies and guidelines CEO reviews Leadership training business reviews management
Our commitments set the stage for our work is chaired by an Executive Board member, cur- • CEO reviews of business unit sustainability on sustainability. Working within these param- rently Claus V. Hemmingsen, CEO of Maersk performance, where an informed dialogue eters provide the compass for our work. Drilling. This composition will ensure a firm link (as opposed to an audit) will take place be- between the Executive Board and the Council, tween business unit CEOs and sustainability Executive Board authorises group-wide as well as input from all necessary parties. staff and the Group Sustainability team to sustainability strategies and policies, securing evaluate performance and discuss future high-level commitment and accountability for The Group’s overall business unit review priorities. sustainability goals and targets. processes will integrate sustainability issues. The output of these processes is shared with • Enterprise risk management processes, The Sustainability Council operates on behalf the Sustainability Council, and will finally en- where we have begun investigating how to of the Executive Board and oversees compliance sure that Maersk’s Executive Board has a good fulfill our ambition to include sustainability to group sustainability standards and policies end-of-year overview of the level and status risks in Maersk's Enterprise Risk Manage- across the Group and makes recommendations of sustainability in the Group. The relevant ment framework. to the Executive Board regarding group-wide processes are: policies and strategies on sustainability issues. Performance management will aid in driving It will also keep track of the most prominent • Business unit strategy review processes changes, implementation and business inte- movements on sustainability across Maersk driven by our Group Strategy Office, focusing gration as Maersk’s leadership’s performance and coordinate key sustainability issues across on both performance/compliance as well will be measured not only on financial goals, the Group. Members are business unit and sustainability perspectives as part of the but also on goals related to sustainability. group function representatives, and the Council long-term deployment of capital.
A.P. Moller - maersk group Our approach Sustainability Report 2010 19 Stakeholder engagement
Maersk engages with stakeholders to be transparent and accountable for our actions, to manage key sustainability issues and risks actively and to pursue opportunities for collaboration which can benefit both business and society.
Maersk considers itself as having two of our stakeholders’ views to support Lobbying key stakeholder audiences: a primary the development of relationships and Maersk takes part in public policy one, encompassing those who have ways of engaging with different groups. debate where appropriate and regards a direct effect on or are directly af- lobbying activity through construct- fected by Maersk businesses, and a Through the business units’ participation, ive dialogue as an important and secondary audience, which consists of the survey also contributes to the build- legitimate way to contribute to politi- external groups who influence stake- ing of local competencies in managing cal processes. holders’ perceptions of our Group. and documenting stakeholder dialogue, which was suggested as an area for A sizeable share of this work is con- We are currently working to develop improvement in the assurance process ducted through our participation in a systematic understanding of our for our 2009 sustainability report. industry organisations such as the stakeholders’ view of our performance Danish Shipowners’ Association or on sustainability. Based on an online questionnaire avail- interactions with international agen- able in English, Spanish and Mandarin, cies such as the International Maritime In 2010 Maersk commissioned a repu- an employee perceptions survey was Organization. tation assessment survey among key carried out in Maersk Line, Maersk stakeholders of the Group and six key Tankers, APM Terminals, Maersk Oil, We constantly strive to act as a good business units. Maersk Supply Service and Maersk corporate citizen, also when engaging Drilling in December 2010. Findings with governments, and to share in a This assessment will form the baseline are being analysed, and a survey of responsible manner our experience for our future surveys of stakeholder external stakeholders will be carried and views on subjects of concern to relations, as well as provide an overview out in Q1 2011. the Group and its stakeholders.
A.P. Moller - maersk group Our approach Sustainability Report 2010 20
Maersk will communicate and interact How employees see Maersk Current strategic partner with government authorities and In Maersk’s annual employee engage- ships and memberships representatives in accordance with the ment survey, three questions already We are working to build stronger rela- Maersk Principles of Conduct. provide an indication of how the tionships with our key sustainability Group’s efforts on diversity, environ- stakeholders. In a number of cases we As part of these principles, Maersk is mental and safety management are have formed partnerships or joined committed to being accountable to perceived by our employees. working groups to increase both our its stakeholders, to conduct its busi- own and the general knowledge and ness in an ethical and lawful manner, The table below shows the last four understanding of an issue, to lend our to work against corrupt practices and years’ development in responses to capabilities to aid in the case of natural to be recognised as a reliable, trusted these questions, the numbers indicat- disasters or to increase transparency and engaged partner in all its business ing a steady increase in the share of on a given issue. Read more about our dealings. We intend to establish a uni- employees favourable to the state- partnerships on the opposite page. form set of guidelines for responsible ments listed, with the largest change lobbying, and are currently working in opinion seen in the perception of the towards this goal. efforts to protect the environment.
Employee engagement survey 2010
Percentage In Maersk’s annual employee engagement survey, employees indicate how they see the 85 company’s efforts on safety management, diversity and environmental management. 80 My company is committed to employee 75 safety 70 My company treats people equally with respect to gender, race, nationality, 65 religion etc. My company is making a genuine effort to protect the environment 2007 2008 2009 2010
A.P. Moller - maersk group Our approach Sustainability Report 2010 21
Strategic partnerships and memberships
Caring for Climate – a complemen- Working groups hosted by BSR Sustainable Shipping Initiative tary action platform for UN Global – Business for Social Responsibility – hosted by the UK-based NGO Forum Compact participants. Caring for (BSR) is an international sustainability for the Future, brings together com- Climate provides a framework for expert group. Maersk participates in panies involved in shipping to investi- business leaders to advance practical Beyond Monitoring, investigating gate and draw up a case for action to solutions and help shape public policy ways for buyers and suppliers to move shipping towards greater sus- as well as public attitudes. Through integrate labour and environmental tainability and profitability. The Sus- this platform, Maersk is involved in excellence into high performing supply tainable Shipping Initiative tasks itself the Low-Carbon Leaders Project in co- chains. And in Clean Cargo, a forum with taking a closer look at challenges operation with WWF. In 2010, among pushing for the working group’s CO2 and opportunities over the next 30 other things, we contributed to the calculation methodology to be made years to ensure a robust and profita- publication of a report on ‘Smart publicly available and positioning the ble international trade that is socially Goods Transport’, including a new group as the recognised source of and environmentally sustainable. The model for calculating carbon impact. high-quality, performance-based data initiative is founded by Maersk Line, Read more on page 37. on ocean shipping, Maersk Line are Gearbulk, BP Shipping, Lloyd’s Regis- active members. ter, ABN Amro and WWF.
Global Compact LEAD – which World Economic Forum – an inde- Carbon War Room – a US NGO aim- supports leading UN Global Compact pendent international organisation ing to discover and promote market- participants in their efforts to achieve engaging leaders of society to shape driven solutions to climate change. higher levels of corporate sustainabil- agendas. In 2010, Maersk decided to During 2010 Maersk Line teamed ity performance and give them proper become part of the Logistics Emer- up with Carbon War Room to create recognition for doing so. Maersk was gency Teams (LET), a group formed more transparency on CO2 emissions. accepted into this group at the end under the World Economic Forum to The Carbon War Room’s new website of 2010. assist in the first weeks after a natural features the CO2 performance of each disaster under the leadership of the UN Maersk Line owned ship – a good first World Food Programme (read more on step in providing transparency. Read pages 34–35). We are also members more on www.carbonwarroom.com of several other working groups focus- ing on logistics, transportation and sustainability.
A.P. Moller - maersk group The protection of Maersk employees is integral to our licence to operate and at the core of our sustainability efforts. These include not only avoiding accidents, injuries and fatalities, but also pro- tecting against pirate attacks and robberies during our operations. Health and safety Sustainability Report 2010 23 Health and safety
Even a brief view across the Maersk companies’ activities reveals our involvement in some of the potentially most dangerous work situations in the world. We operate on open seas in sometimes adverse weather condi- tions, we extract oil and gas from the depths of the earth, we lug around heavy loads in ports and transport flammables across water and land.
Subsequently, safety is an all- and is a principal area of attention for extension of our Health, Safety, Secu- encompassing priority for our Group. the Group Sustainability Council. Read rity and Environment Manual (HSSE) This shows in the priorities and high more on these entities in the govern- and of the strategies already in place level of activities to propagate safety in ance section on pages 17–18. in the different business units. our business units. And it shows in the renewed focus we give to safety in our strategy work at group level. “We will always be working to improve our safety performance. It is a part of our values and policy “We will always be working to improve our safety performance. It is a part of to be safe in all our work, and it is certainly a our values and policy to be safe in all business driver.” our work, and it is certainly a business Christian Krøll Thomsen, Lead Health & Safety Advisor driver,” says Christian Krøll Thomsen, in the A.P. Moller - Maersk Group Lead Health & Safety Advisor.
Safety is the first item on the Executive Planning a new strategy It will gather the many experiences Board’s agenda for their approximately for health and safety from around the Group’s business units 25 meetings per year. Safety is also As part of the Group Sustainability Strat- and provide a platform for learning and central in the CEO reviews performed egy, development of a new strategy for knowledge sharing in both specific by business units and the Group Sus- health and safety has begun. This is a activities and leadership involvement. tainability team annually. The subject reflection of our growing strategic ap- will feature heavily in a planned safety proach to the sustainability agenda. An obvious place to begin knowledge day for the Executive Board in 2011, This strategy will serve as a strategic sharing is to look at our business
A.P. Moller - maersk group Health and safety Sustainability Report 2010 24
units in the offshore industry. These Safety is all around tion to continuous improvement have safety as a core element in their The work on safety issues is by no means and the fact that safety is the most licence to operate and ability to attract limited to the safety organisation neither material issue for more than half of our business. Accordingly, their safety at group or business unit level. In fact the businesses. management systems are both very subject of safety is embedded in a broad strong and live up to tight regulatory number of functions across the Group. Data from 2010 show that the total demands resulting in low incident number of lost time injuries is 1,389, frequencies. As already mentioned, the Executive which is a drop of more than 7% com- Board is involved by having strategic pared to 2009. The area of health management in oversight and determination of focus Maersk is not as systematically devel- areas, and the Group Sustainability We still have some ground to cover oped as safety management. Over the team works on safety through strategy before we reach the zero injuries per- last few years we have seen growth in work and annual business unit review formance to which we aspire. At the employees’ and other stakeholders’ processes. Safety issues are also same time we recognise that safety interest in this area. ingrained in Maersk’s Responsible performance is not only expressed Procurement Programme, and will be through injuries and fatalities, in fact We also find activities at business unit an additional performance metric for many of our business units monitor level within areas such as canteen the business units being tracked and many more factors. In the future we menus and setting up of fitness facili- discussed in periodic reviews. will strive to provide more detailed ties for employees, but so far there has reporting on safety. not been a common approach to the subject in Maersk. Safety performance 2010 In conclusion, safety performance on A large majority of our business units injuries is improving. But a rather large The upcoming health and safety improved their performance on safety question beckons an answer. strategy will remedy this. We are cur- measured in the frequency of lost rently looking at how we can define time injuries (LTIF) in 2010, adding to and develop a health agenda for the improvements from earlier years. Why do we still have Group, aiming to clarify how this adds fatalities? value for the Group on par with other We find the many reductions in lost Maersk business units’ activities are of sustainability efforts. time injuries to be a result of dedica- a nature where incidents can be fatal.
Fatalities 2010
Business unit Location Description Employed by APM Terminals Bahrain, UAE Employee crushed beneath a crane when it overturned while Maersk loading steel plates onto trucks Houston, USA Traffic accident between two trucks Maersk (Inland) Area of Apurimac, Peru Two truck drivers in a solo road accident in the mountains Maersk (Inland) Hong Kong, China Worker run over by a truck while performing reefer monitoring Maersk Houston, USA Truck driver crushed between two trucks in a waiting lane Contractor Shanghai, China Traffic accident during ship operation Contractor Tanjung Pelepas, Malaysia Disregard of safety procedures during vessel operation Contractor Algeciras, Spain Disregard of safety procedures during vessel operation Contractor Douala, Cameroun Truck driver hit by another truck Third party Maersk Line Mombasa, Kenya Traffic accident caused by truck driver trying to overtake Third party another truck in a terminal area Maersk Tankers Hamburg, Germany Sweeper slipped and fell from height while cleaning the cargo Third party tank on Bro Arthur
A.P. Moller - maersk group Health and safety Sustainability Report 2010 25
Across our business units,12 fatalities Historically the work to prevent fatalities working on Maersk premises but not occurred in 2010, compared with 13 and severe accidents follows what is directly employed by Maersk. in 2009 (see page 13, note d), each termed ‘Heinrich’s safety triangle’, which year with a majority in terminal and states that near-miss reporting (acci This points to the need for a greater in- container inland operations. dents that could have happened but volvement on our part in preparing and did not), risk assessments, safety cases requiring contractors, third parties and In 2010 we also saw cases of employ- etc. are absolutely necessary to prevent others whom we grant access, to be ees probably committing suicide all types of accidents. We will continue conscious of the risks involved in the while working on Maersk facilities. to optimise to improve performance work they are about to perform. Should They are investigated on a par with within the logic of this safety triangle. fatalities still occur on our premises, we fatalities in Maersk, but are not will as a minimum always commit to included in the scope for our report- Recent research shows, however, that ensuring a fatality is fully investigated ing, which includes only work-related organisations working ardently in line by employers and the authorities. fatalities. We are currently contem- with this triangle can still have fatali- plating how we investigate possible ties, and that there is not necessarily a links between a suicide and the work direct correlation between these and Acting to change environment. the safety triangle approach. Fatalities occurring around our activities are of great concern to us. We cannot Similarly, the fatalities that recently An illustration of this point is the accept the current state of affairs, and ocurred among our sub-contractors in disconnect between the strong safety spurred by an Executive Board decision, Afghanistan (read more on next page), leadership provided by APM Terminals in we initiated activities in 2010 which will are not included in the scope for our terms of injuries over time, while at the hopefully lead to significant progress reporting. same time contributing 10 of the 12 fa- towards our target of zero fatalities: talities registered to the Group in 2010. Each fatality is deeply distressing, • We set up a group of internal safety and occurred in spite of a good and experts who will collect and dis- improved performance level in most Under who’s management? seminate experiences from across business units on other safety meas- Another learning point from 2010 is the Group. We have a particular focus urements, e.g. LTIF, and an increased that a significant part of the fatalities on transfer of knowledge from our focus on preventive actions. in our statistics occur to persons activities in the energy segment,
Fatalities per business segment
Container activities Oil & gas activities Terminal activities Tankers, offshore and other shipping activities Retail activi Other businesses
15
12
9 Global compact principle no. 2 6
3 Businesses should make sure that they are not complicit in human rights abuses. 2007 2008 2009 2010
A.P. Moller - maersk group Health and safety Sustainability Report 2010 26
where safety is a core operational dis- examined in a dedicated effort to in- avoided. These include Maersk Supply cipline, to other parts of our business. vestigate why companies with good Service's Maersk Chancellor, which by safety records still have fatalities. the end of 2010 had spent nearly seven • We joined an external US study and years without LTIs, and Maersk Drilling's working group about preventing fatal These activities and investigations are Rig no. 12 which could celebrate more and serious accidents hosted by two progressing at group level but have yet than 10 years without an LTI. internationally renowned organisa- to lead to conclusions and subsequent tions, Behavioral Science Technology new strategies for preventing fatalities A perfect safety record is not acciden- and Mercer (former ORC Worldwide). that can be cascaded to business tal, but is achieved through constant Seven global organisations with units in the Group. attention to safety in all operations. varying risk profiles are participating The good examples serve as best in the study, representing the oil and practice across the Group, as well as gas, marine transportation, agricul- On the right track inspiration and proof that it is possible ture and mineral extraction sectors. Numerous examples within the Group to achieve zero accidents. A full 1,028 accident events were demonstrate that accidents can be
Operating in formed us that all eligible next-of-kin to local country justice systems). For a Afghanistan the deceased might not have received smaller number of cases this valida- compensation by our sub-contractors. tion has proven exceedingly difficult Under a contract with the US govern- due to the warzone environment and ment, Maersk arranges the transpor- Our investigations have subsequently the unavailability of reliable records. tation of goods to troops in Afghani- revealed a total of 39 fatalities. This stan. The contract is held by our US updated number is based on ad- We continue to work closely with our subsidiary Maersk Line, Limited with ditional information about three fatali- sub-contractors to improve proper services provided by Maersk Line, ties, a revised scope now including six notification and registration of Damco as well as sub-contractors. fatalities not directly related to the war, contractor fatalities and payment of and a fatality that occurred at the time compensation to avoid similar situ- Ground transport is carried out by of the news story. ations in the future. We carefully en- sub-contracted rail and trucking sure that all sub-contractors involved companies. In the course of providing Contractors are in certain cases in transporting goods to and from these services a number of a sub- responsible for payment of compen Afghanistan are known for providing a contractor’s staff have tragically lost sation to the family of the deceased good service and have a good track re- their lives. In November 2010 this individual. Maersk actively investigates cord as well as high safety standards issue was the subject of a television whether this has taken place for the for their employees. Furthermore, we news segment in the Danish national fatalities incurred. Regrettably, one insist that full compensation be paid media, who based on information of our major sub-contractors filed for in case of any accident or injury. from Maersk Line, Limited counted bankruptcy. This bankruptcy has made 29 fatalities in total. it very difficult to determine if compen- In addition to our efforts noted above, sation for fatalities occurring in 2007 the US government has established Following the story, further research and 2008 has been paid. Significant mandatory insurance schemes to among employees brought to our at- resources are being spent validating cover personal injury and fatality tention that our collected data were the identity of the deceased and the claims. We are facilitating this process incomplete and that more people had extent to which the relevant next-of-kin with our sub-contractors and the ap- been killed. The sources further in- have been compensated (e.g. through propriate US government agencies.
A.P. Moller - maersk group Health and safety Sustainability Report 2010 27 Piracy
Piracy remains the main maritime security concern for the Group.
In 2010 we experienced two attacks on territorial waters – also increased in The cooperation includes information Maersk ships, which were both averted number and severity and most com- exchange on safety measures, piracy through use of the security measures monly take place in West and East policies and procedures, as well as applied by our ships. This compared to African waters, in the South China Sea, coordination to ensure that the fight three attacks in 2009. the Philippines, Indonesia and South against piracy is continuously on the and Central America. Unlike in the In- agenda by relevant authorities and • On 21 October the container ship dian Ocean, these incidents consist of stakeholders. Safmarine Zambezi was attacked by boarding ships typically at anchorage pirates off the Tanzanian coast in the or in ports with the objective of theft or Indian Ocean. kidnapping of the crew. Piracy attacks 2010 • On 27 October Maersk Karachi, a Security onboard and at landside has container ship, was attacked by been strengthened to counter these pirates also in the Indian Ocean. events, mostly through the activation of anti-piracy measures but also in co- The main reason for the reduced num- operation with shore-side authorities. ber of attacks on Maersk ships is the presence of the naval bodies’ presence in the Gulf of Aden. Stronger through partnership All ships entering the risk zone report Ensuring our security measures fol- to both the UK Maritime Trade Office in low current best practice at all times, Dubai and the EU’s Naval Forces’ coordi- Maersk Line began cooperating with nating unit. An increasingly coordinated two competing shipping companies, effort to deploy their ships in line with the CMA CGM and MSC in 2010. Together commercial transits has had a real effect. the partnership accounts for a quarter of all transits through the Gulf of Aden Piracy attacks increased in number, in and the members constitute the three severity and geographically (see map). largest container shipping companies Armed robberies at sea – which are in the world, controlling more than one- Attack Attempted attack defined as attacks taking place inside third of global containerised capacity. Source: MaRisk 2010
A.P. Moller - maersk group We want to ensure that we create benefits for both the com- pany, its employees and the communities in which we work, and that the playing field is made as level as possible for those want- ing to grab the opportunities provided. Social responsibility Sustainability Report 2010 29 Global labour principles
The newly established Maersk Global Labour Principles will help us ensure that every employee is treated according to the same standard.
As a trusted employer, equal standards Broader communication directed at all consists of a number of case-based based on international conventions employees on the existence and con- dilemma challenges. Participants will and principles must be in place, even if tent of the principles will be achieved work to resolve these dilemmas, each re- Maersk employees carry out their work through internal media. lated to one of the Maersk Global Labour in many diverse cultures and regula- Principles, and at the same time be pro- tory environments. vided an opportunity to flag local issues. E-learning programme Participation is monitored and follow-up The principles (shown on page 31) will To ensure awareness and increased ca- on concerns flagged will be assured. support our efforts to provide good pabilities in dealing with the dilemmas and fair labour conditions for our peo- involved in global labour relations, we “We want to make sure that frontline ple, and can also serve as a competi- will launch and run a web-based train- leaders know what is expected, but are tive advantage to help us attract talent and have a stable workforce. They are guided by internationally “We want to make sure that frontline leaders know recognised instruments and underpin what is expected, but are determined to ‘keep it Maersk’s commitment to the UN Global Compact. simple’. Working in such an array of geographical loca- tions, as we do, we find that simplicity is the only way.” Having these principles implemented Bill Allen, Head of Group Human Resources in the A.P. Moller - Maersk Group will also reduce the risk of workplace conflicts, which can damage a com- pany both financially and in terms of ing programme for relevant managers determined to ‘keep it simple’. Working reputation. Therefore accountability during 2011. in such an array of geographical loca- and transparency on governance of tions, as we do, we find that simplicity workplace conflict risks is in demand Besides a general introduction to the prin- is the only way,” says Bill Allen, Head of by customers and other stakeholders. ciples, the e-learning training programme Group Human Resources.
A.P. Moller - maersk group Social responsibility Sustainability Report 2010 30
This is in line with testing of the creating global guidelines that can This does not entirely solve the prob- Maersk Global Labour Principles car- accommodate local customs and ac- lem. Most of the trucking companies ried out by business units. These tests tivities, as illustrated by the below case we use also work for other customers, confirmed the ongoing challenge of on the use of polygraphs. who may require polygraph testing. As such Maersk alone cannot eliminate the use of polygraphs in the market, A no to polygraphs nor can we entirely avoid employing Help us improve In the spring of 2010, Maersk was trucking companies which use poly- criticised in the Danish media for the graphs. This would limit our possibility Any employee with a question or a sense use of polygraph testing in El Salvador. of meeting our customers’ demands of non-compliance regarding the global Polygraph tests are widely practiced for service. labour principles can raise this directly for investigative purposes in Central with a manager or the human resources America, due to the high number of Another dilemma in this case is the department. Reporting of serious viola- truck hijackings. fact that in the regions where the tions related to discrimination can also be practice is common, employees in directed to Maersk’s global whistleblower In the current case, we became aware many cases favour polygraph testing system available on www.maersk.com. that a Maersk Line supplier had used because they want the ‘clean bill’ they polygraphs in crime investigations, feel the tests provide. We aim to investigate all questions or testing employees of sub-contractors concerns and respond with appropriate – primarily trucking companies. What we can do is to communicate action wherever necessary. our policy and work to abolish the Using polygraph testing violates Maersk’s practice to the best of our ability. Global Labour Principles number two This includes requiring our suppliers and eight as well as the International to avoid the use of tests when they Labour Organisation’s code of practice, investigate on our behalf, having targets 2011 the UN Global Compact, and the Maersk informal discussions with other mul- Principles of Conduct – which all form tinational companies on this practice Completion of Maersk Global Labour the basis for our labour principles. and investigate if there are alternatives Principles training for general manag- to polygraph testing which will meet ers and human resources managers On 23 April 2010 a ban on use of customer requirements. worldwide, around 400 people. polygraphs was communicated across the Group.
A.P. Moller - maersk group Social responsibility Sustainability Report 2010 31
Maersk Global Labour Principles
1. Health, safety and 5. Freedom of association security and collective bargaining Maersk is committed to providing a safe and healthy working Maersk respects its employees’ right to associate freely, form or environment, to minimising the risk of accidents, personal injury join organisations of their choosing and to bargain collectively and adverse health impacts, and to continuous improvement in in accordance with recognised international instruments, local health and safety performance. Maersk will provide the facilities, laws and regulations, in full freedom and without fear of reprisal, training and protective equipment necessary to ensure a safe intimidation or harassment. Maersk also recognises its em- workplace for all our employees. We will facilitate reporting of ployee’s right to refrain from collective representation. Maersk unsafe acts without fear of reprisal. Maersk is committed to is committed to conducting collective bargaining with freely ensuring the physical security of all its employees. chosen employee representatives of a legally recognised union.
2. Equal opportunity 6. Working hours and diversity Maersk is committed to assuring full compliance with ap- Maersk will treat every employee with respect and dignity and plicable laws, regulations, and relevant collective agreements will not tolerate discrimination or harassment of any kind. concerning working hours and overtime, leave and minimum Employment related decisions are made on a variety of relevant rest periods. It is company policy not to make systematic use of factors such as qualifications, skills, performance and relevant extensive overtime work and any overtime hours will be appro- experience. priately compensated according to individual terms of employ- ment, applicable regulation and relevant collective agreements. 3. Child labour 7. Compensation Maersk will comply rigorously with all local laws and regulations and will in no event employ children under 15 years, or under 16 Maersk will provide its employees with compensation and years for work at sea. Maersk will not permit hazardous work or employment-related benefits on a competitive basis. We night work for children under 18 years. recognise that wages are essential to meeting employees’ basic needs and will at least pay the minimum wage and mandated 4. Forced labour benetifs required by local law. Maersk will not use any form of forced or involuntary labour, and 8. Fair procedures refrains from practices that can give rise to a risk of involuntary labour. Maersk is committed to upholding the privacy of our employees. Maersk undertakes to follow fair disciplinary, grievance and dismissal procedures which are provided for by company policies and collective bargaining agreements including, upon request, the provision of exit conversations for employees leaving em- ployment with the company.
Global compact Global compact principle no. 3, 4, 5 and 6 principle no. 1 Businesses should uphold: Businesses should support and respect • the freedom of association and the effective recognition of the right to collective bargaining the protection of internationally pro- • the elimination of all forms of forced and compulsory labour claimed human rights • the effective abolition of child labour • the elimination of discrimination in respect of employment and occupation
A.P. Moller - maersk group Social responsibility Sustainability Report 2010 32
Diversity
For Maersk the business case for diversity is straightforward: we need access to the largest possible talent pool to remain among the leading companies in the industries in which we operate.
Launched in the Danish headquarters By the end of 2010 each of the priorities across the business units in in 2009, Maersk’s diversity efforts were business units had completed their order to create a multiplier effect and rolled out beyond headquarters in the prework and analysis including impact through joint effort. At Group second half of 2010. This roll-out en- definition of scope, baseline and headquarters women in management tailed the appointment of a diversity benchmarks, and had committed to are defined as a primary focus area, driver in six of the Group’s largest busi- a plan for their future work, including but business units are free to work on ness units: Maersk Line, Maersk Oil, 2011 priorities and activities. Together other kinds of diversity based on their Maersk Drilling, APM Terminals, Damco the diversity drivers form the Diversity needs. Maersk Oil, for example, chose and Maersk Tankers. Council, which will work on diversity to add nationality to their efforts.
A.P. Moller - maersk group Social responsibility Sustainability Report 2010 33
In 2011, the Diversity Council will meet language were developed and equally with respect to gender, race, quarterly and in addition every busi- deployed internally; and engaging nationality, religion, etc. ness unit will work with Group Human with external women’s networks to Resources to follow up on their efforts heighten visibility. In 2011 we will continue to drive gender and to turn the plans into action. diversity initiatives that address our • Flexibility, where fixed working hours workplace with a focus on human “Ultimately what we want to achieve were removed from all contracts. resources processes as well as through is a company that is attractive to all Most departments have limited the focusing on the career progression and development of women. As a part of our efforts we will try and address the “The appointment of ‘diversity drivers’ demonstrates structural and socio-economic factors the commitment from the Executive Board and sig- that may impede women’s careers. nals that the business units are ready to take the next step forward to drive diversity in the regions in which they operate.” Retail’s different Maria Pejter, Senior Director, Group Talent Management kind of diversity in the A.P. Moller - Maersk Group Maersk’s retail ownership, Dansk Supermarked, has several times been kinds of people, because it makes hours where employees are expected recognised for their efforts to create a Maersk more interesting as an em- to be present between 9 and 15, in- diverse workplace (see the awards list on ployer, partner and service provider,” troducing a first measure of flexibility. www.maersk.com/sustainability). Dansk says Maria Pejter, Senior Director in Supermarked’s diversity is broad includ- Group Talent Management. • Career models, where we worked ing the integration of a number of disad- to develop a diversity module for vantaged groups into the work place. One our people strategy, and to integrate such group is first and second generation HQ’s four focus areas diversity in talent development and immigrants, where Dansk Supermarked In the Danish headquarters of Maersk, succession planning. These will be has cooperated with Danish municipali- the target is to have female represen- launched in 2011. ties for more than five years with huge tation of 20% at general manager level, success. Another group consists of 15% at director level and 10% at vice people with disabilities, who take care of president level by the end of 2014. Performance and support the recyclable bottles system, work in the The efforts have started to pay off. In bistro and help stock the shelves in the At headquarters, in 2010 we continued 2010 there was an increase in female morning in one of Dansk Supermarked’s our work within the four established representation among general manag- hypermarkets. All in collaboration with focus areas: ers both in the Danish headquarters municipalities and a couple of suppliers. and globally with year-end figures of • Women’s Leadership Network, 18% and 21% respectively, up from where 140 members making up 70% 17% and 17% in 2009. The female of the target population are invited representation among directors has to events discussing the myths, also increased globally to 8%, from 7% targets 2011 research and hard facts on diversity, in 2009. The female representation at career choices and personal experi- vice president level remained at 4%. 18%, 10% and 6% female representa- ences of women in leadership. tion in headquarters for general man- In the employee engagement survey agers, directors and vice presidents • Recruitment, where tools to create question on diversity, 77% of our col- respectively by the end of 2011. job adverts using gender neutral leagues agreed that we treat people
A.P. Moller - maersk group Social responsibility Sustainability Report 2010 34 Disaster response programme
Maersk has unique capabilities, assets and expertise that can be used to alleviate the chaos resulting from a major natural disaster. In partner- ship with the UN’s World Food Programme, we will use our strength to deliver humanitarian aid when disaster strikes.
Sadly, 2010 provided several examples revealing reminder of the importance of portation services (shipping and trucks). of disaster-ridden regions in dire need logistic infrastructure, which in daily life is LET will intervene for the first three to of help. Both the massive earthquake taken for granted,” says Nils S. Andersen, six weeks following a natural disaster. in Haiti and the floods in Pakistan CEO of the A.P. Moller - Maersk Group. called on the international community Over time we have learned that by to join forces and help the unfortunate LET assists the UN World Food Pro- partnering with other players, Maersk victims of these adverse events. gram (WFP) in case of large scale natu- is able to maximise the impact of what
Our employees showed great generos- ity during these large-scale disasters “Disasters and the subsequent breakdown of a so- in 2010, and Maersk will continue to ciety’s infrastructure is a revealing reminder of the provide a platform where both employ- ees and the Group will be engaged in importance of logistic infrastructure, which in humanitarian efforts. daily life is taken for granted.” Nils S. Andersen, CEO of the A.P. Moller - Maersk Group
partnering to assist the un In 2010 Maersk decided to join the ral disaster, where WFP always serves we have to offer, and that it is possible Logistics Emergency Teams (LET), a as logistics center for the UN. to set up structures to minimise the group formed under the World Eco- disturbances such efforts create to the nomic Forum five years ago. LET provides logistics specialists (e.g. rest of our organisation. shipping experts, port managers and “Disasters and the subsequent break- warehouse managers), assets (e.g. An internal structure has been set up in down of a society’s infrastructure is a warehouses and containers) and trans- Maersk to deal with our new approach
A.P. Moller - maersk group Social responsibility Sustainability Report 2010 35
to natural disaster response. We have WFP in the immediate aftermaths of a scheme will be established in addition established a Disaster Response large natural disaster. to the other Group efforts. Coordination Team, coordinated by the Group Sustainability team. Those elected for participation in a As was the case following the disasters stand-by core of people eligible for in both Haiti and Pakistan, these em- deployment will go through a three to ployee donation schemes allow em- Sending our experts five day training programme prepared ployees to make personal donations to Aside from our assets and services, by WFP and Maersk. The programme the Red Cross/Red Crescent via a link membership of LET entails Maersk deals with humanitarian logistics, on Maersk’s intranet. These donations sending experts in logistics or other its organisation and the emergency are matched by the company. needed fields of knowledge to the context. disaster area. For Haiti, the scheme resulted in a total donation of close to DKK 1.5 A pool of dedicated and specially- Enabling engagement million, for Pakistan the donation was trained Maersk employees will be When Maersk responds to a natural close to DKK 400,000 plus what was formed as part of our emergency disaster together with the World Food collected in several local initiatives response commitment to assist the Programme, an employee donation across Maersk.
A.P. Moller - maersk group Climate change and environment are the two areas where Maersk can have the greatest global influence in terms of de- veloping solutions and raising industry standards for environ- mental impacts. By way of size in a number of the industries in which we operate, our actions go a long way towards change. Climate and environment Sustainability Report 2010 37 Climate change
The importance of curbing climate change has in no way lessened dur- ing 2010. Maersk intends to fulfil its role in this global battle.
Both at COP 15 in Copenhagen and at Low-carbon transport port, through the Low-Carbon Leaders COP 16 in Cancun, the outcome of the needed Project, developed under the UN Global negotiations speaks of limiting the rise In this context, companies are both Compact Caring for the Climate Initia- in temperatures to below two degrees. polluters and solution providers. tive in cooperation with WWF. But the current emissions trajectory Maersk is determined to be part of the shows the world rapidly moving to- solution and active in the discussion The paper discusses the transport sec- wards an increase above four degrees. of how we use transport. Maersk’s tor’s contribution to climate problems
Should this scenario become real, the consequences would be dramatic. “The actual distance travelled by a product is not Flooding from sea-water would cause important. What is important is the CO2 emissions loss of land, crops and fresh water sup- resulting from the transport and the societal plies. Agricultural yields are expected to decrease. Temperature increases value of the service provided. That is the essence will also affect the risk of fires and the of carbon distance.” global health situation. John Kornerup Bang, Lead Climate Advisor in the A.P. Moller - Maersk Group
The current political consensus in the UN negotiations leads to an increasing activities in the transport sector pro- and solutions. The paper is available at focus on identifying which products duce by far the largest amount of CO2 www.transformative-solutions.net. and services need to be expanded to emissions in the Group. However, sea enable a transition to a low carbon transport is the most climate friendly The report suggests that: economy. A focus which is needed to mode of transport. secure a sustained spread of welfare • Sea transport offers significant globally and simultaneous reductions In 2010, Maersk supported the publica- potential in creating a low carbon in CO2 emissions. tion of a paper on Smart Goods Trans- economy.
A.P. Moller - maersk group Climate and environment Sustainability Report 2010 38
• Global low carbon transportation the concept of ‘carbon distance’,” says service provided. That is the essence of strategies should pursue shifts from John Kornerup Bang, Lead Climate carbon distance,” he adds. road and air freight to sea freight, us- Advisor in the A.P. Moller - Maersk ing the concept of ‘carbon distance’ Group. as a guiding principle. Taking on leadership “The actual distance travelled by a prod- Maersk has huge potential for affect- “To tap into shipping’s low carbon po- uct is not important. What is important ing the change from air to sea. Through tential, the political level should create is the CO2 emissions resulting from the ownership of Maersk Line – the largest carbon transparency and embrace transport and the societal value of the provider of sea transport in the world
Carbon impact from transport (range)
CO (in grams) emitted per metric tonne of freight per km of transportation
Aircraft (air cargo) 500 – 950
Modern truck 60 – 150
Modern train 30 – 150
Modern ship (sea freight) 10 – 40
Minimum emission Maximum emission The Low-Carbon Leaders Project, developed under the umbrella of the UN Global Compact’s Caring for Climate Initiative and in cooperation with WWF.
A.P. Moller - maersk group Climate and environment Sustainability Report 2010 39
– and our ownership of APM Terminals, from the UN Global Compact’s Caring Setting that target has driven efforts Damco and Maersk Container Indus- for Climate programme. across the Group’s business units, tries – our potential for impacting this which have all contributed to the change is perhaps greater than any We are proud to see our leadership ef- reductions achieved so far. And we are other company operating in global forts recognised by others e.g. by way pleased that we have already reached transportation of goods. Additionally, of being invited by the UN Global Com- the target, with a total reduction of in the world’s growth regions in terms pact to join their LEAD programme, and 13% relative to business activity (read of world supply and thereby freight to provide an industry perspective at more on page 11). needs, our position is strong and there- the World Climate Summit in Cancun, fore ripe with potential influence. For Mexico, in December 2010. While all business units have achieved example, we have been present in reductions in CO2 emissions, the main China for nearly 100 years, and have contributors to reaching the target freight and port activities across the First climate change are our businesses involved in trans- African Continent. target reached portation. In 2009 Maersk set its first climate We have made a conscious decision to change target: to improve the group- take on the leadership role in changing wide greenhouse gas (GHG) efficiency global transport through the introduc- by 10% by 2012 using 2007 as baseline. Global compact tion of technology-based solutions principle no. 7 and 8 and changes to the business model in This target was set as a relative the transport segment. target because we believe the role of Businesses should support a precau- business is to create more and more tionary approach to environmental “Innovation in sustainable shipping will efficient solutions rather than shrink- challenges. be critical to solve the climate crisis. ing activities. This secures scalability We are looking for leadership in devel- and relevance in meeting the double Businesses should undertake initia- oping transportation solutions that challenge of reducing emissions and tives to promote greater environmental will bring about the transition to a low- creating enhanced wealth and oppor- responsibility. carbon economy,” says Lila Karbassi tunities for the global population.
A.P. Moller - maersk group Climate and environment Sustainability Report 2010 40
Slow steaming, i.e. reducing speed at to both our customers’ and suppliers’ New reduction initiatives sea, is the main driver of greater GHG emissions. Maersk is also involved in a range of efficiency, along with implementa- supporting offshore activities. These tion of a number of energy efficient business units operate at leadership technologies, and a greater focus on The role of fossil fuels level in their industries. Continuously behavioural aspects of energy use. Maersk is also involved in extraction improving their own performance, both of oil and gas. While we acknowledge Maersk Tankers and Maersk Supply that the world’s mix of energy sources Service in 2010 reached out to cus- The climate change will need to change significantly in tomers to engage in dialogue over how road ahead a 30 – 40 year perspective, we also to achieve CO2 emissions reductions. Being part of the solution as well as the concur with the International Energy problem, calls for an updated climate Agency’s estimate that renewable Another example of how we are change strategy. We have begun energy cannot cover the world’s energy investing in an area that has long-term designing this new strategy and expect needs in a financially sustainable way potential to benefit climate change to have new targets as well as a new in the short to mid-term future. and uses special capabilities within our strategy ready during 2011. The frame- Group is our work on Carbon Capture work established in 2010 for this work Until then, oil and gas is needed to and Storage (CCS) and CO2-based calls for the new strategy to: support economic development for all, Enhanced Oil Recovery (EOR). as well as the transition to a fossil free • Establish a Maersk climate change economy. policy. In our oil business we are committed to Investing in new • Set targets for GHG emissions extracting oil and gas in an efficient and uses of CO2 relative to our business activities, safe manner. One example is through for both the short to medium term investment in new technologies. Carbon capture and storage (CCS) takes (3-10 years) and the long term (20- Between 2009 and 2010 Maersk Oil CO2 emitted and stores it in empty oil 40 years). has brought down the CO2 emissions and gas fields, or uses it for Enhanced Oil per unit of production by 20%. This has Recovery (EOR). • Open the scope of our strategy to been supported by our ongoing flaring include not only our own emissions, reduction programme in Qatar and Transport between emissions, source but also an increased understanding the implementation of the Dunga Gas and storage sites is needed and tanker of how our activities are connected Utilization plant in Kazakhstan. ships are a cost-efficient and flexible way to transport CO2.
In 2009 a partnership was established, between Maersk Oil, Maersk Tankers GHG intensity for the Group and two Finnish power companies, to test both CCS and EOR by 2015, and Performance 2012 target in 2010 Maersk Tankers joined forces with Hyundai Heavy Industries and Det 100 Norske Veritas to design ships that can transport CO2. 95
90 The aim of this partnership is to have a ship design ready once CCS projects 85 commence. This depends on the devel- opment in pricing of CO2 quotas. 2007 2008 2009 2010 2011 2012
A.P. Moller - maersk group Climate and environment Sustainability Report 2010 41
Environment
Maersk’s environmental strategy from 2008 requires all our business units to pursue greater efficiency through innovation and technological advances – with the aim of using natural resources more efficiently and with less impact on the environment.
In partnership with suppliers and indus- anti-fouling, ballast water manage- responsibility in protecting the global try partners and supported by Maersk ment and discharges of oil to water. waterways. Maritime Technology’s Innovation and Ship Engineering departments, our The world’s marine environment and business units work on reductions of biodiversity is at stake as well as the Ballast water systems needed
emissions of CO2 as well as SOx, NOx quality of air in coastal areas. Trans- Ships carry ballast water picked up in one and particulate matter. porting containers by sea, as well as marine environment, which when dis- operating tanker ships, supply ships, charged in a different marine ecosystem Efforts are also being made on waste tug boats, drilling rigs and platforms, can threaten the eco-balance and lead handling (coordinated by Maersk Line), Maersk has a special interest and to the spread of unwanted species. It is
A.P. Moller - maersk group Climate and environment Sustainability Report 2010 42
regarded as a large-scale environmental Both Maersk Line and Maersk Tankers reducing NOx threat to the marine environment. have begun a process of rating ports’ Emissions of NOx derive from the com- waste disposal facilities, and are work- bustion process in all engines, regard- Maersk has ballast water manage- ing to have the results of these ratings less of the fuel type used. Over the next ment plans and ballast water logs on verified by an independent agency. decade ship owners will be required to the great majority of its ships. We seek reduce their emissions of NOx by 80%. to minimise the use of ballast water and to conduct internal and mid-ocean Three options for sulphur Maersk participates in the research ballast exchange. However, in order to Left-over sulphur stays in fuel oil after re- into new technologies to reduce NOx live up to regulations passed by the In- fining and is released as SOx in exhaust and particulate matter emissions in ternational Maritime Organization and gases. More stringent regulations on SOx collaboration with engine manufactur- those ready for ratification, stronger emissions are underway, which will im- ers and equipment suppliers. As part of measures are needed. Through a joint pact all Maersk ships, and we are investi- this project, Maersk is testing exhaust venture company we are involved in gating several technical solutions as an gas recirculation on board a container the development of a ballast water alternative to switching to low sulphur ship. The target is to reduce NOx by treatment system, which is now being fuel. Read about Maersk Line’s voluntary 50%. We are also testing water-in-fuel tested, and as partners we follow the fuel switches on pages 53 –54. technology. results closely, just as we monitor in- novations made by other companies Scrubbers – where the exhaust gas trying to build efficient systems with is made nearly free of SOx through dif- Minimising oil pollution the smallest physical footprint. ferent processes using water spraying When producing and transporting oil in a closed or open loop mode. Maersk there are continuous discharges of Line will have such a system installed oil into water, affecting fragile marine Anti-fouling: Nothing sticks on a ship for testing in 2011. habitats and biodiversity. Paints used on the hull of a ship af- fect the amount of living organisms Liquid natural gas (LNG) used as Maersk Oil is currently investigating the attaching to the hull. Called fouling, it a fuel, significantly reduces SOx, CO2 use of nano-particles for oil and water increases friction leading to higher fuel and NOx. Maersk has initiated several separation. Maersk Tankers are involved consumption and emissions of CO2, as projects to investigate technical, opera- in improved design, increased efficiency, well as more energy used for cleaning. tional and economical aspects in rela- and better process control of bilge tion to the use of LNG as a fuel. Reduced water treatment, improved ship design Unfortunately, many of the existing cargo space due to more fuel space and investigation of possible substitu- anti-fouling compounds are highly toxic needed, increased safety demands and tions for hydraulics where feasible. and damage the marine environment fuelling infrastructure for LNG are chal- and biodiversity. In collaboration with lenges that remain to be solved. All projects are conducted in collabora- paint suppliers, we are testing several tion with other parties, and the projects’ paints to help evaluate effectiveness Biofuel – five business units are actual contents are so far kept confiden- using the ships’ performance monitor- financing tests of biofuel. In a joint tial by mutual agreement with partners. ing systems to get detailed data. industry project, we completed com- bustion tests of different fuel blends on a Maersk container ship at the end Best ports for waste disposal of 2010, to our knowledge the first Global compact Safe disposal of waste generated by such project ever. The final results are principle no. 9 both machinery and people onboard still undergoing analysis. Maersk is also ships is another item worked on by considering the use of second and third Businesses should encourage the devel- Maersk. Our policy already forbids generation biofuels and participates in opment and diffusion of environmen- disposal of unprocessed non-biode- a consortium to develop sustainable tally friendly technologies. gradable solid waste at sea. biofuel for the transport sector.
A.P. Moller - maersk group Climate and environment Sustainability Report 2010 43
Groundbreaking speeds, and the energy-efficient Prepared for recycling ships on the way engine type is combined with a waste The ships will also be designed for heat recovery system which contrib- future safe and sound recycling. Throughout 2010 Maersk Line utes to ship propulsion. The result is We will develop a so-called ‘Cradle worked to design and negotiate the what we believe to be unmatched to Cradle Passport’, which lists and contract to build 10 of the largest energy efficiency. describes the materials used, their and most CO2 efficent container location, and how they can be cor- ships ever. The capacity of each ship • Environmentally improved: These rectly disassembled and recycled/ will be 18,000 TEU – 16% greater ships reduce CO2 emissions by 50% disposed. Maersk Line has developed than the largest ship built so far, per container moved, compared to the concept for the Cradle to Cradle Emma Mærsk. We expect delivery of the industry average on the Asia- Passport together with the organisa- the first ship in 2013, to be used for Europe routes (based on 2009 CO2 tion EPEA (Environmental Protection transport between Asia and Europe. emission reports from the Clean Encouragement Agency). Cargo Working Group). The ships Building a container ship 16% larger also come with an effective and Improving yard than any of today’s is an accomplish- energy efficient ballast water treat- performance ment, but applying available technolo- ment system and will be prepared for The ships will be built by the DSME
gies to make it the most CO2 efficient installation of a SOx scrubber, when shipyard in South Korea, which has ship at the same time, we believe is the technology has matured further. been criticised for its safety perfor- groundbreaking. The new ships es- Finally, all the ships will be ISO14001 mance. Third party audits performed tablish a new class of container ships, certified when they leave the yard. on our behalf in 2010, concluded labelled Triple-E class due to their: that DSME has a good Health and “It is our goal to reduce Maersk Line’s Safety management system, but can • E conomy of scale: These ships take CO2 emissions per container moved improve on performance (read more economy of scale to a new level, as the by 25% by 2020 (compared to 2007). on page 49). additional capacity is not matched The Triple-E ships will help us reach by a need for additional engine power. that goal, and will make us even more By giving the order to DSME we are competitive in the market than we using our size and experience to help • Energy efficient: The hull of are today,” says Eivind Kolding, CEO suppliers improve social and environ- these ships are optimised for lower of Maersk Line. mental performance.
A.P. Moller - maersk group Conducting our business responsibly is inherent in Maersk’s values and our Principles of Conduct. It is part of the Group’s history. We have high expectations for our own behaviour in the interaction with others, and expect the same of our business partners. Responsible business practices Sustainability Report 2010 45 Anti-corruption
Maersk is determined to promote fair and clean business. It is part of our values and stakeholders expect it of us. At the same time, we need to navigate in markets where laws are not always obeyed and corruption may be widespread.
Bribery and corruption undermine We also actively support the UN tempt to avoid them, e.g. by asking for society by funnelling resources out of Global Compact working group on an official receipt, and each business the formal economy away from invest- anti-corruption by making our internal unit will clearly record facilitation pay- ments in infrastructure, education, and expertise on the subject available to ments that prove unavoidable as they health services, and increase the costs this group and drafting and editing do other costs. of doing business. UNGC online anti-corruption docu- ments (RESIST II). The attention given to anti-corruption Implementation and training by governments, international The main focus in 2010 was the imple- agencies, organisations and corpora- Facilitation payments mentation of the 2009 anti-corruption tions continues to grow, and many The Group applies internationally policy, including focused training, and influential companies demand that applied standards in dealing with a whistleblower system for the entire their suppliers have anti-corruption facilitation payments, i.e. small sums Group. programmes in place. Finally, anti- demanded by government employees corruption legislation is being applied to perform an administrative process The priority was in-person training for far more widely and diligently, notably that they are legally obligated to per- key managers and for staff whose by the USA and the UK. form without any such payment.
“We have good reasons to persist in our Facilitation payments unfortunately anti-corruption work. It is in line with our remain a widespread phenomenon in Global compact values and Maersk Principles of Con- some parts of the world, despite being principle no. 10 duct,” says Joseph Simon, Senior Legal illegal under nearly all local laws, and Counsel in Maersk. “And in a strict busi- despite increasing international op- Business should work against corrup- ness sense, failure to work seriously position to such payments. We oppose tion in all its forms including extortion with anti-corruption can adversely facilitation payments and our goal is and bribery. impact our brand and reputation.” to eliminate them. We will always at-
A.P. Moller - maersk group Responsible business practices Sustainability Report 2010 46
work could expose them to demands Enhanced focus Good examples encourage for bribes in high-risk markets, which Business units also increased the use meant that about 800 key staff were of standard compliance clauses in “We are still at the early stages, but trained in over 40 sessions held in 13 contracts. Moreover, we are asking there are definite success stories,” says countries (see table for employees in business partners to complete compli- Joseph Simon. “Stories that show, that it scope for training on opposite page). ance due diligence questionnaires, and can be done, you can say no to bribery.” we verify responses through available Through this focus we were able to sources, e.g. court records, media One such story originates from a country incorporate headquarters and local reports and local reputation. with a reputation for official corrup- managers in the anti-corruption pro- tion where Maersk refused to make a gramme’s global implementation and payment requested by a public official. mitigate risks. Launching a whistleblower Instead, Maersk complained to the system public official’s supervisor. This led to About 50% of the relevant employees The Maersk whistleblower system the dismissal of the official and a retrac- were trained in 2010, representing was launched in January 2011, and is tion of his request for a bribe. Also, in a those who have a significant impact available in 140 countries in more than country where facilitation payments are on effective short-term and long-term 40 languages. Reports can be made by endemic, Maersk has consistently re- global implementation of the anti- telephone, through www.maersk.com fused to pay them. The initial effect was corruption policy. or through internal websites. Report- that approval of e.g. work permits took ing can of course still take place via longer, and more documentation was Training in 2011 will be expanded managers, or using e-mails, letters and demanded of Maersk than for others. to include e-learning, which will be telephone calls. But waiting times are being reduced and available to a much larger group of officials no longer ask Maersk for pay- employees. Face-to-face training will The system generates two main ments – and in fact now use Maersk as a continue, provided by Group Legal and benefits; allowing Maersk to learn of model for other companies. by business unit legal teams, as will wrongdoing and to take action to videoconference-based training. stop it, and giving employees and
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other stakeholders an additional Reports can be made on fraud, cor- The system incorporates legal restric- means to report genuine concerns ruption, competition law breaches, tions on reporting in some countries. about wrongdoing. All investigations insider trading, foreign trade controls will be conducted according to Group violations, deliberate breaches of IT se- guidelines. curity, discrimination and harassment.
Anticipated anti-corruption training 2011
Measured in Maersk Safmarine Damco 2 APM Maersk Maersk Svitzer 5 Maersk Group percentage Line1 Terminals Tankers 3 Drilling, Oil 6 Procure- FPSOs, LNG ment 7 & Supply Service4
Total 99 TBD 25 TBD – – 15 15 100 Senior management – TBD 90 TBD 99 80-100 80 65 – Country/regional management – TBD 90 TBD 99 30-40 80 65 – Managers & heads of dept. – TBD – TBD 90 65-80 80 65 – Legal/compliance staff – TBD – TBD – 80-100 – – – Staff w/contact to public officials – TBD – TBD – 30-40 50 65 –
TBD = To be determined 4 Percentages represent a combination of in-person and e-learning training, specified staff 1 Maersk Line training will be primarily e-learning, supplemented by video conference categories represent total numbers that will have received training in 2010 and 2011. training for legal staff and in-person training for selected managers, anticipated num- 5 Svitzer legal staff received training in 2010. If e-learning is in place Svitzer could train bers not yet generated. approximately 50% of white-collar staff and 10% of other staff in 2011. 2 Damco will train selected persons in the categories without percentages, e-learning in 6 Maersk Oil legal staff received training in 2010. Maersk Oil could train approximately15% English, number could increase if available in other languages, e.g. Mandarin Chinese, of its broader staff in total if e-learning is implemented, other percentages represent French, Spanish. specified categories of staff that did not receive training in 2010. 3 Maersk Tankers intends to train selected staff in 2011. Key staff with contact to public 7 Target is e-learning training to all staff in 2011. officials received in-person training in 2010.
A.P. Moller - maersk group Responsible business practices Sustainability Report 2010 48 Responsible procurement
As a global company, with over 100,000 suppliers in more than 100 coun- tries, we can positively influence our suppliers’ development by embed- ding into our supply chain internationally-agreed standards for responsi- ble business conduct in the areas of human rights, labour, anti-corruption and environment.
While our suppliers are spread around the suppliers in different business units, in- Approach: Dialogue globe and work with varying standards cluding a Third Party Code of Conduct. and development and cultures, we make millions of pur- We are working on implementing the chasing decisions annually, with a large “We strongly believe that implementing Third Party Code of Conduct through share of these decisions made locally. a Code of Conduct towards our supply dialogue and development, rather than chain creates value for all parties. It disqualification and punishment. This is why our Responsible Procure- helps establish a long-term relationship ment Strategy focuses on continuous between ourselves, our suppliers and “Responsible procurement is about improvement, capability building and the societies where we operate, which sound business,” says Renata Frolova, risk management – we must make it creates a better business environment Head of Responsible Procurement. easy for our employees and suppliers for all,” says Stig Romby Nielsen, Senior “We see this as an investment in our at all times to understand what is the Director in Group Procurement in Maersk. future and suppliers shouldn’t feel right thing to do and how to do it. penalised for participating.” Our Third Party Code of Conduct reflects our commitment to the UN That is not to say there will be no Code of conduct on the way Global Compact and the core labour implications. On the contrary, legally- We have always focused on doing conventions of the International Labour binding contract terms, on-site audits, business in a responsible manner, and Organisation. It addresses anti-cor- improvement plans, tight progress more recently we started to work on ruption, labour practices, environment measurement and constructive yet consistency in the social standards we and occupational health, safety and critical dialogue are all part of the use for selecting and working with our security of the supplier’s employees. system.
A.P. Moller - maersk group Responsible business practices Sustainability Report 2010 49
Testing and preparing in 2010 Targetted efforts During 2010 we developed the soft- We want to focus our efforts where it targets 2011 ware which enables the buyer to carry makes the most sense. We will start out the initial supplier assessment, with a phased roll-out with focus on • 50% of spend assessed schedule supplier interviews and keep major suppliers, areas of high risk and • Approximately 200 buyers trained track of the progress. In China and capability building with the key person- in working with Responsible Pro Denmark a total of 500 suppliers were nel in the procurement functions. curement invited to participate in the pilot test. • Business unit strategies on respon- In 2011 we expect to target the major- sible procurement developed, com- As a result of the pilot, we learned that ity of these suppliers: municated and implemented to deliver credible results in responsible procurement we need to educate our • Major/high spend suppliers buyers, focus on a limited number of • Critical/strategic suppliers suppliers and prioritise our efforts in • Branded products • % of suppliers in each prioritisation the areas of highest impact. We have • Selected suppliers with direct spend segment (assessment, dialogue, also learned that the only way to make in high-risk countries performance management) responsible procurement operational • % of suppliers where identified is by empowering the buyers to enter At the end of 2011, the procurement actions have been completed into a critical and constructive dialogue functions in Maersk will be assessed on: (self-assessment, audit). with their suppliers. • % of spend assessed Following the pilot test, it was decided • % of suppliers who have acknow- to implement the programme in all ledged Maersk’s supplier code of Read more www.maersk.com/procurement Maersk’s business units worldwide. conduct
Auditing shipyards and were part of a pilot for our Respon- and if an audit against our future in Asia sible Procurement programme which Third Party Code of Conduct is feasi- will be rolled out in 2011. ble. We are currently in the process of On the backdrop of workplace safety analysing the results and preparing issues raised by Danish media in For the two South Korean yards it was suggestions for future activities. 2010, Maersk decided to conduct concluded that both have acceptable audits of several shipyards used by health and safety programmes in Good risk management systems and Maersk in South Korea and China. place, but improvements in perfor- general management performance mance were needed. Subsequently, a are often linked, so improvement in All audits were conducted by a recog- corrective action plan has been shared one area will lead to overall improve- nised third party auditor and with rep- with both yards. Further, Maersk Line ments in quality, innovation and resentatives from Maersk. The audits has encouraged both yards to commit learning as well as better health and were conducted at two yards in South to the UN Global Compact. safety records. Maersk has an op- Korea and three yards in China. portunity – through our size and long In China, the three yard audits were established relationships – to help Both sets of audits provided a chance performed in December 2010. These improve sustainability performance for us to explore, how we can support audits also provided us with an oppor- in our supply chain. This is an ap- our key suppliers in improving their tunity to develop ideas for how to work proach which is beneficial both to us performance on sustainability issues on improvement projects in the future and our partners.
A.P. Moller - maersk group Transport, energy and retail. These are the three high-level segments in which Maersk makes its mark on global business. Our reach is growing as we expand our activities, including in ever more markets, particularly in emerging economies. Business unit performance Sustainability Report 2010 51 Business unit performance
Being a large conglomerate, it can be difficult to grasp both the full extent and the detail of Maersk’s business activities, when portrayed at group level. In the following pages we provide an overview of our main activities at the business unit level.
The summaries provide detailed infor- More information business unit performance mation on the most material issues Data for the business units presented dealt with by the individual business here, do not add up to the consolidated Container activities Page Maersk Line . . . . . 52 units. It shows the diversity in our busi- number presented in the consolidated Safmarine ...... 55 nesses both in terms of activity type, size table (see page 13), which also com- Damco ...... 57 and potential for impact on the sustain- prises input from headquarters and ability agenda – internally and externally. minor activities. Oil and gas activities Maersk Oil ...... 59
Moreover, in this report we only include Terminal activities Moving ahead data on a few, select key performance APM Terminals . . . . . 62 Overall our business units are making indicators for each business unit. Full progress within sustainability at the sets of externally verified data, both Tankers, offshore and other shipping activities strategic level, having been through and consolidated for the Group, per seg- Maersk Tankers . . . . . 65 learned from the process of developing ment and per business unit, can be Maersk Drilling . . . . . 68 sustainability or CSR strategies. Safety found on our website. Maersk FPSOs . . . . . 71 remains an imperative for most of the Maersk Supply Service . . . 73 business units. For many, however, cli- Most business units provide more Svitzer ...... 75 mate change and environmental mat- information on their sustainability Retail activity ters are growing in importance. Business efforts on their own websites. We have Dansk Supermarked . . . . 77 units also stand ready to begin imple- included a link at the bottom of each mentation of the Group programmes on chapter for your reference. Other businesses responsible procurement and labour Maersk Container Industry . . 80 principles which were finalised and Read more Odense Steel Shipyard . . . 82 www.maersk.com/sustainability approved at group level in 2010.
A.P. Moller - maersk group Container activities Sustainability Report 2010 52
Maersk Line is one of the largest liner shipping companies in the world. We own and operate more than 500 container ships and some 300 offices in around 120 countries, and our size and reach make our potential for impacting positive change significant.
Shipping routes play a large role in re- were mainly driven by internal drivers customers were interviewed directly. gional growth and development of sup- such as the potential for cost savings, We learned that more than 40% of ply chains. The international container efficiency and new innovating tech- Maersk Line’s customers already shipping industry, including Maersk nologies and processes,” says Eivind include sustainability in supplier Line, has a large economic footprint. Kolding, CEO of Maersk Line. selection, and that this number is set According to the World Shipping Coun- to grow. cil, the largest shipping lines transport We have the potential to impact the more than 3% of the global gross na- transport sector’s direction in terms of Environmental sustainability is one tional product. sustainability, and want to take on this of Maersk Line’s future market dif- leadership role. Our new sustainability ferentiators, as is behaving responsibly We operate in a near-commoditised strategy will align and drive our activi- towards our key stakeholders, includ- market, which makes the competitive ties going forward. ing employees, suppliers, local com- challenges of differentiation increas- munities and society at large. ingly important. For Maersk Line, envi- ronmental sustainability has become sustainability strategy The strategy outlines Maersk Line’s an element in meeting this challenge in place sustainability vision and three prom- leading to a change in our approach. The strategy was created through a ises made to stakeholders, as well as six-month process involving custom- six priorities for the coming years, com- “Our sustainability focus is now in- ers, employees and other stakeholders. plete with action plans and targets. creasingly driven by what creates value More than 300 customers participated In 2010 our focus was on designing for our customers. Earlier our efforts in a general survey and 14 of our main programmes for roll-out in 2011.
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Using technology In 2010, we also tested first generation to drive change biofuel on one of our container ships. Our three stakeholder Based on our sustainability strategy, we These fuels have a relatively weak promises: have increased our CO2 reduction target sustainability profile and prospects for to 25% per container moved by 2020 large-scale use are limited, but newer • “First choice for customers” through (baseline 2007). On a broader scale we biofuels could well be part of our future demonstrated best-in-class sustain- aim to drive improvements and innova- fuel mix. ability performance tion throughout the industry. • “Raise the bar” of the industry by Maersk Line also began analysing the changing the shipping industry for From 2007 to 2010 we reduced our potential in further retrofitting our good – and for the better CO2 emissions per container moved ships with new, cleaner technologies • “Mobilise the organisation” by inte- by 14.5% by improving our operational e.g. bulbous bow optimisation, opti- grating sustainability into our core efficiency, most importantly through mised propeller, waste heat recovery business processes the application of slow steaming, system, NOx scrubber and ballast wa- which alone has cut CO2 emissions by ter treatment. The projects will result in approximately 7% in just 18 months. an investment plan that – when rolled Slow steaming began as a cost-saving out over the next 5-10 years – will con- Also as the first shipping line ever, we initiative in 2008 but is now a core op- tribute to our CO2 reduction and other had our CO2 emissions data for each erating principle of Maersk Line, in spite environmental targets. ship verified by Lloyd’s Register. Cred- of the market turn-around in 2010. ibility of data is important, and we now Negotiated in 2010, Maersk Line has or- include data on CO2 emissions in our Slow steaming has been accused of dered 10 groundbreaking ships, which monthly performance communication transferring costs to customers, for will not only be the world’s largest, but to customers. whom slow steaming may imply longer also the most energy efficient container transit times. In reality, slow steaming ships in the world. They will consume While we believe Maersk Line’s data to gives improved on-time delivery to 50% less fuel and emit 50% less C02 be the best in our industry, we still need customers, which to many customers per container than the industry average to improve. We work to maintain a low is the most important factor of all. on the Asia-Europe trade lane, where level of data reporting errors through nar- they will sail (read more on page 43). rowing the scope for errors and increased Slow steaming requires amendments monitoring and feedback to the ships. to the ships’ engines, techniques Maersk Line pioneered and made avail- Aiding industry transparency able to the industry. It is estimated that Maersk Line in 2010 became the first Moving first on approximately half of all container ships shipping line to share publicly the envi- reducing sulphur in the world are now slow steaming, in ronmental performance of all its owned We want to drive our own operations as effect setting a new industry standard. ships on www.shippingefficiency.org. well as the shipping industry towards
Priorities for driving sustainability
Environmental leadership Corporate responsibility
• Low carbon leadership: The global leader in low-carbon • A good place to work: Treat employees with respect and dignity, through shipping. use of Maersk’s Global Labour Principles and diversity programme.
• Drive to zero SOx: Driving our own operations as well as the • Responsible business practices: Taking active measures against shipping industry towards zero sulphur emissions. corruption and exploring our role in limiting illegal trade.
• Protecting the marine environment: Act as a responsible • Responsible supply chain practices: Engaging with suppliers habitant of the world’s oceans and protector of oceanic health. to improve conditions in our global supply chain.
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zero SOx emissions. Since 2006, we dures and consultation of lists of regis- have switched to low-sulphur fuels tered shippers, and we are involved in targets close to California’s coasts, and in collaborative efforts to deal with this 2010, we expanded this to also include growing international challenge. CO2 25% reduction in relative CO2 Houston and Hong Kong. emissions from owned and char- tered ships from 2007– 2020 SO Drive to zero Our voluntary fuel switches show great safety performance: x environmental effect, and we hope progress and challenges More targets and actions planned for to inspire wider industry action and Sadly, during 2010, Maersk Line 2011 can be found in Maersk Line’s Sus- regulation. had one fatality, where a third party tainability Progress Report for 2010, employee died in a traffic accident at available on www.maerskline.com. a terminal in Kenya. Our investigations Auditing shipyards are still ongoing focusing on causes Maersk was criticised in 2010 for and learning points. a number of accidents at a South We see the biggest potential for Korean shipyard used by Maersk Line. We continue our drive towards zero improvement in addressing human be- In response to these concerns, we accidents and we have come a long haviour. Our long-term focus is to make performed audits on two South Korean way. However, our safety performance safety something people consider in shipyards in early September 2010. remains by and large unchanged since everything they do. Read more on page 49. 2003. Our performance is difficult to bench- In respect to the stagnation in our safety mark, as shipping lines’ safety data are Illegal cargo performance, we have strengthened our currently not comparable. Definitions We also received media criticism relating safety organisation towards the end of vary and industry transparency is lack- to some of the cargo we carry, in these 2010. In 2011, we launch several new ini- ing. Maersk Line encourages an open cases rosewood and electronic waste. tiatives such as a training programmes partnership approach to safety across In both cases all allegations directed at for office staff to ensure office decisions the industry. Maersk Line were found to be baseless. do not increase safety risks in opera- tions. We will also begin work to improve We recognise the negative effects of safety along the transportation chain by Read more www.maerskline.com illegal trade and apply screening proce- engaging with partners and suppliers.
Container businessa incl. Maersk Line and Safmarine key sustainability figures 2010 Social performance – safety 2007 b 2008 2009 2010 Number of full time employees (FTE) number 36,454 33,575 29,877 29,330 Lost time injury frequency (LTIF) frequency – 1.09 1.14 0.83 Fatalities number 0 5 0 1 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 38,553 36,384 34,235 32,112 CO2 – direct and indirect 1,000 tonnes 38,266 36,178 33,813 31,702 Economic performance Revenue USD million – 26,846 c 18,288 d 24,022
– = Not available a Container business includes Maersk Line, Safmarine, MCC Transport c Figure reflects total revenue for our container business which includes Maersk and other container-related activities. Line, Safmarine, Container Inland Services and Maersk Container Industry. b In 2007 only Maersk Line ships reported environmental data. d Revenue restated due to change in reporting activities.
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Safmarine provides shipping services with a focus on destinations in Africa, the Middle East and the Indian subcontinent. Present in 110 countries, primarily in emerging economies, Safmarine helps to enable economic growth through trade.
In line with the rest of the shipping in- 2. Attaining operational efficiencies, In 2010, we worked on more than 15 dustry, Safmarine’s business picked up energy savings and environmental partnership activities in 11 countries early in 2010. However, the experiences benefits by using knowledge and with a number of our large customers. of the past year, combined with indus- solutions developed by and with Two examples of these are: try trends and increased competition Maersk Line. in our main regions, made us decide on • Safmarine and our customer Olam a change in strategy. are members of the World Cocoa Pooling resources Foundation (WCF). WCF ECHOES “You could say it’s all about going back Safmarine’s strengths are our know (Empowering Cocoa Households to our roots, back to what we do best,” ledge of core regions and our people, with Opportunities and Education says Tomas Dyrbye, CEO of Safmarine. who customers say make a difference. Solutions), Olam and Safmarine “And that is serving customers’ ship- We want to add a new dimension: the have been involved in the start-up of ping needs to and from Africa, the Mid- extended customer relationship work- three primary schools in Ivory Coast. dle East and the Indian subcontinent.” ing to promote sustainability. Due to current political tensions in Ivory Coast, the project implementa- When our resources are pooled with tion may experience delays, but all A two-pronged strategy those of our customers, we can take partners remain committed to its All business functions work to support on larger projects providing greater long-term objectives. this business strategy. For sustainabil- impact. Partnerships also provide Saf- ity there are two work streams: marine with a differentiated approach • Helping young seafarers – In the to sustainable development, as well as Indian east coast port of Kakinada 1. Building partnerships to promote supporting our business strategy by Safmarine has joined our customer, sustainability through education in adding sustainability to the customer Cargill and the Sailors’ Society in our major markets. value proposition. establishing a Maritime Community
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Centre. The work to set up the first of the ship could be reused, and all ma- Maritime Training Resource Centre terials removed from the ship traced targets 2011 in India will begin early 2011. The – beyond the current international Centre will recruit and guide young requirements. LTIF 0.7 (incl. MPV owned ships seafarers in their seafaring career, crewed by Enzian) resembling a maritime studies pro- Oil spills Zero gramme in South Africa, pioneered Against illegal timber by Safmarine. It is estimated that The international trade in illegally the centre will attract 5,000 young logged timber causes environmental seafarers per year. damage and promotes corruption, mercial log and wood export, ensuring undermines the rule of law and funds that timber leaving Liberia is traceable Safmarine’s aim is to focus on long- armed conflict. in terms of origin and location. term projects, even if they are more prone to risks beyond our control, Having a strong presence in the African We have recently joined the Associa- because we are convinced they provide continent, the source of an appreciable tion Technique Internationale des Bois greater benefits for all. share of the world’s timber exports, Tropicaux (ATIBT). Its goals are to Safmarine is involved in the transport organise and rationalise the tropical of timber, and thus potentially part timber trade. Responsible ship recycling of the problem. We attempt to find a In 2010 we decided to ‘green recycle’ model for ensuring the legality of the See page 54 for Safmarine’s key sus- the 24 year-old Safmarine Cotonou at goods, as for example our cooperation tainability figures 2010. an ISO 14001-accredited ship breaking with the Liberian Forestry Develop- yard in China. This greener option cost ment Authority. They have set up a veri- Read more on www.safmarine.com more, but meant a significant portion fied custody system governing all com-
A tragic death Safmarine shares the International Trans- sonal or work-related. Reporting these port Worker’s Federation’s advocacy for matters does not impact anyone’s The 2010 death of a female cadet in decent work, human and civil rights and employment with Safmarine and the the South African Transnet National will not tolerate any violation of these company encourages all those working Ports Authority’s Maritime Stud- rights. We have zero tolerance towards on board ships to report all incidents. ies Programme, who was sailing any kind of sexual harassment and will on-board a Safmarine ship, gener- not accept any kind of abuse, discrimina- The death of this young cadet was ated debate about the conditions tion or harassment onboard our ships irre- very tragic and Safmarine has cooper- for females in the South African spective of gender, nationality or religion. ated and continues to cooperate with merchant fleet. And in some media the authorities in this matter. Saf- reports, allegations were made about Our policy is to treat every employee marine has carefully evaluated any sexual abuse against cadets being with respect and dignity and we are possible learning from the incident rampant. committed to providing a safe, secure and implemented it in their policies. and healthy working environment where The outcome of the investigations by Safmarine does not recognise the all employees can feel safe. As part of its the police has not led to any charges picture painted in the media and policy, Safmarine offers South African being raised. Safmarine has to date not received seafarers access to an independent, con- any complaints of sexual harassment fidential service, where they can get help Safmarine’s sympathies continue to taking place onboard its ships. to deal with any problem, being per- be with the young cadet’s family.
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Damco provides freight forwarding and supply chain management ser- vices and our customers include many of the world’s largest companies. Our services enable the global exchange of goods, and can impact this exchange towards less carbon-intensive modes of transport.
The customers’ perception of the logis- A growing market for green laneda, Global Head of Green Logistics tics industry is changing. As the indus- Damco has three green logistics in Damco. try becomes more commoditised, products (see side bar on next page), there is a growing need for a wider which on average provide customers range of differentiated services. with a 10% reduction in waste and CO2 Less through more emissions. More companies now see Air transport solutions were limited in This is evident with customers re- the link between emission reductions, our sales palette in the past. In 2010, questing solutions that consider envi- cost savings and reputation. we increased our offerings within air ronmental impact. Damco is in a good freight. While this sounds contradic- position to provide these solutions. These companies are great influencers tory to sustainability, it is in fact not. and create a growing customer readi- “We are very much used to optimising “Making Damco part of the solution, ness. “We count some of the world’s between various transportation we create an additional value proposi- largest retail and sports clothing modes. In fact, our slogan when it tion towards our customers, and a companies among our green logistics comes to air freight is ‘we want your position in the market as experts customers. Our green logistics activi- air cargo because we want to help you in sustainable transport,” says Rolf ties and customer base have increased reduce it’,” Rolf Habben-Jansen said to Habben-Jansen, CEO of Damco. by nearly 50% in 2010,” says Jordi Avel- industry media in 2010.
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To secure a low-carbon future, compa- Progress on CO2 reductions nies need to make intelligent choices It is our stated target to reduce our targets 2011 when it comes to the selection of own carbon intensity by 30% by transportation modes. Damco can 2014. In 2010, we made considerable LTIF 10% reduction (2010 baseline) help its customers make these choices progress and further reduced our CO2 and thus reduce their air freight and emissions per TEU by more than 10% the related carbon emissions. compared with 2009.
More than half of Damco’s own envi- Our Green Logistics Collaborations for ronmental impact is generated in our products thought leadership warehouses, and an innovative energy Damco is adamant about being first in and resources efficiency pilot project SupplyChain CarbonCheck – estima- class when it comes to green logistics. will be implemented in 2011 at select tion and reduction of CO2 emissions We use collaboration to develop our warehouses. We expect energy sav- from transport. Launched late 2007. thinking. ings of up to 20% as well as a recipe for implementation in the remaining SupplyChain CarbonDashboard We participate in the Greenhouse Gas warehouses. – quarterly reports on customers’ supply Protocol Initiative working group to chain footprint, both in total, per ship- develop guidelines on Scope 3 (among ment, per product group and per mode others, transport-related emissions of Safety at work of transport (ocean, rail, truck, barge and greenhouse gasses), the most widely Damco saw a considerable decrease in air). Launched in 2009. used methodology to estimate carbon our lost timeincident frequency from emissions. As the only transportation 5.55 in 2009 to 1.75 in 2010. We at- Packaging optimisation service company in this group, we have not tribute this to intensified safety aware- – designing packaging to reduce logistics only learned a lot, but we have also ness training, incident reporting and costs as well as minimise environmental been able to provide the transport monitoring. Nevertheless, we continue impact. Launched in 2010, due to cus- industry’s perspective on this subject. to focus on safety at work through tomers’ interest in reducing waste, in part- further safety awareness training. We nership with a packaging design company. Damco has also joined 28 companies perform a root-cause analysis of each from the manufacturing and transport serious work-related incident and as a industries in the Clean Cargo Working consequence, implement appropriate Group, driven by sustainability consul- corrective measures to prevent reoc- Read more www.damco.com tancy BSR. currence of any type of accident.
Damco key sustainability figures 2010
Social performance – safetyb 2007 a 2008 2009 2010 Number of full time employees (FTE) number n/a 10,961 10,269 9,502 Lost time injury frequency (LTIF) frequency n/a 3.83 5.55 1.75 Fatalities number n/a 1 2 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq n/a 49 37 37 CO2 – direct and indirect 1,000 tonnes n/a 49 36 36 Economic performance Revenue USD million n/a 2,841 2,223 c 2,691 n/a = Not applicable a Damco did not exist as a separate b 2009 data will serve as the baseline c Revenue restated due to change in business unit in 2007. for safety in Damco. reporting activities.
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Maersk Oil is a midsize international oil company with an operated oil and gas production of approximately 600,000 barrels and 800 million cu- bic feet per day, respectively. We produce and explore in Denmark, the UK, Qatar, Kazakhstan, Algeria, Angola, Brazil, Norway, Oman, Greenland and the US Gulf of Mexico to meet the worldwide demand for energy
Global demand for energy is rising. In “We are serious in our commitment its tragic loss of 11 lives and serious meeting this demand the oil and gas and realistic in our approach to sus- environmental consequences, caused industry faces the challenge of operat- tainability,” says Jakob Thomasen, CEO the offshore industry to re-examine ing in increasingly sensitive and techni- of Maersk Oil. “Many areas of sustain- how the risks associated with deep- cally challenging environments. ability are already fully integrated in water drilling operations are managed. our business processes, for example in Maersk Oil conducted a detailed This requires Maersk Oil to innovate our approach to health, safety and the internal review resulting in now-imple- and explore new technology for both environment, and we are building on mented recommendations, including operational and environmental effi- this tradition to become just as strong enhanced risk assessments on all new ciency. We are committed to exploring in other sustainability areas.” wells, strengthening of safety-critical for and producing oil and gas in a standards for well barriers and specifi- sustainable manner, i.e. ensuring the cations for well control equipment. safety of our employees, managing our A year of learning emissions and ensuring that our activi- for the industry EU and US regulators are now consid- ties benefit the states and societies The Deepwater Horizon explosion in ering revising the regulations that pro- hosting our operations. the Gulf of Mexico in April 2010, with tect lives, sensitive environments and
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local communities around offshore In 2010, we managed to halve the lieve we will get there,” says Tim Magee, activities. Maersk Oil welcomes these number of lost time injuries and signifi- Director of HSSEQ in Maersk Oil. initiatives. cantly reduce the number of process safety incidents. The drive towards an incident-free Maersk Oil, the Leading Safety pro- Improving safety “In 2010 we saw a major commitment gramme, spearheaded by CEO Jakob Maersk Oil wants to be a top industry from senior management to the con- Thomasen, was launched in the performer when it comes to the safety cept of an incident-free Maersk Oil. This autumn of 2010. In 2011 we expect of our people. This includes the goal will not be easy to achieve, but with the the programme to reach all Maersk of incident-free operations, towards level of management and workforce Oil employees, through training and which progress is being made. commitment we have now, I firmly be- commitment-building activities. As
Heightened scrutiny We acknowledge that we had a number North Sea operations’ compliance of Maersk Oil of notices from the HSE on these instal- with the prevailing guidelines for wa- lations, which were acquired in 2005 ter sampling and analysis as well as Two Danish media cases in 2010 and were approaching the end of their oil spill reporting, including allegations called the credibility of Maersk Oil original design life. Extending the useful of systematic fraud. into question. Our employees work life of aging facilities while maintaining constantly to comply with rules and safe and environmentally responsible As requested by the Danish Environ- regulations and achieve strong safety, operations is a significant challenge for mental Protection Agency, Maersk Oil environmental and commercial many operators across the North Sea. conducted an analysis of the various performance at the same time. Their subjects and allegations. Furthermore, commitment cannot be disputed. Significant investment in facility up- Maersk Oil commissioned an inde- grades, investigations and safety pro- pendent report from Lloyd’s Register. The two cases highlight that we need grammes have been made in recent to be more transparent in our com- years. We saw the first results of these “The investigation did not give cause munication on sustainability issues efforts in 2010, as lost time injuries, to believe that fraud has taken place both externally and internally, also en- total recordable incidents and hydro- in our oil spill reports or in the oil-in wa- suring channels for offshore staff to carbon leaks were all halved compared ter analyses. I also noted that Lloyd’s confidentially discuss concerns with to 2009 when looking at data within Register concludes that Maersk Oil management or advisory functions in operational scope. has established the necessary tools the company. and processes for complying with offi- “We work closely with the HSE to address cial rules. But we have to acknowledge North Sea safety areas of concern and whilst we are mak- that our processes can be improved, In 2010 the safety on our UK North ing significant progress, we recognize as Lloyd’s Register also indicates,” Sea installations was criticised. Dan- that there are areas where we have to says CEO Jakob Thomasen. ish media quoted records from the maintain focus to ensure continuous im- HSE, the UK regulator for work-related provement,” says Martin Rune Pedersen, We will proceed to work on these health and safety, which showed Managing Director of Maersk Oil in the UK. process improvements, and will also that Maersk Oil had a high number of add DKK 100 million to the DKK 2 violations of safety rules since 2006, North Sea oil in billion already invested since 2002 in putting its performance in the bot- water discharges new technology and enhanced water tom quartile in a list of all UK sector Also in December 2010, questions treatment equipment on our installa- operators. were raised concerning our Danish tions in the Danish North Sea.
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a forerunner to this programme a opportunity for emission reduction is world-wide safety culture survey was through combined Carbon Capture and targets conducted, providing us with data for Storage (CCS) and Enhanced Oil Recov- assessing the effects of the Leading ery (EOR). Read more on page 39. LTIF Zero in 2011 Safety programme and other initiatives. CO2 Reduce emissions from flaring with 50% by 2012 (2007 baseline) In 2010 we also reviewed all lost time Promoting responsibility incidents from the past three years, to In 2010 we began rolling out the Maersk ensure that patterns, trends and learn- anti-corruption programme including ing opportunities were captured and training of relevant staff. The programme shared across Maersk Oil. From this includes comprehensive contract clauses Exploring Greenland process we learned that root cause and anti-corruption due-diligence pro- investigations and disciplined clas- cesses prior to entering into contracts. In November 2010, Maersk Oil, in part- sification of incidents in reporting both nership with Greenland’s national oil needed strengthening. Also, we introduced a new standard on company Nunaoil, was awarded a licence security covering our global operations. for exploration and production offshore It will help to protect our employees in West Greenland. The Arctic will be one Environmental performance and the communities in which we op- of the toughest operating environments, We are on target in 2010 towards re- erate through due diligence processes and only after all environmental aspects ducing our CO2 emissions from flaring and strict contractual requirements to of the operation have been fully as- by 50% by 2012 compared with 2007 all security providers. sessed and addressed will drilling activ- levels. ity begin – expected to be at least three Maersk Oil also developed its corporate to five years from now. We will establish Between 2009 and 2010 we have social responsibility strategy which a field research facility available for use brought down the CO2 emissions focuses on integration of manage- by authorities, industry and the scientific per unit of production by 20%. The ment of social risks, i.e. risks related to community at large. We will also collabo- main drivers of this reduction were human rights, and more active stake- rate with industry partners sharing the Qatar, where all unused gas offshore holder engagement. challenge of operating in Greenland, as is exported to shore, and Kazakhstan, well as seek advice from experts in the where our gas utilisation plant was field of Arctic operations. Read more www.maerskoil.com brought online in 2010. A longer-term
Maersk Oil key sustainability figures 2010
Social performance – safety 2007 2008 2009 2010 Number of full time employees (FTE) number 2,293 2,419 2,631 2,658 Lost time injury frequency (LTIF) frequency 1.53 1.95 1.87 a 1.03 a Lost time injury frequency (LTIF) b frequency 1.53 1.95 2.16 1.19 Fatalities number 0 0 1 a 0 a Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 6,505 5,141 3,797 c 3,028 c CO2 – direct and indirect 1,000 tonnes 6,055 4,888 3,457 c 2,814 c Economic performance Revenue USD million – 13,494 9,025 10,250
– = Not available a Health and safety data not obtained from non-operated fields. For non-producing exploration fields in Brazil, Norway, USA and Oman the b Data collected with operational scope. reported data is reported 100%, as ownership share per field/license is c Environmental data is not complete for non-operated fields in unavailable. Impact is considered immaterial. Algeria and UK.
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APM Terminals operates port terminals and inland facilities such as trucking, inland depots, maintenance and repair yards on five continents. Through our strong presence in emerging markets, we help create eco- nomic growth both directly and indirectly.
The port and terminal industry has be- APM Terminals can demonstrate ca- Driving progress on gun to recover from the crisis of 2009- pabilities in creating value beyond the global commitment 2010. While working to stay competi- port terminal area. A study conducted APM Terminals is committed to tive, a number of game-changing shifts in 2009 shows ports can impact making progress on the UN Global occurred in the port terminal industry. broadly a local economy, by effectively Compact principles. For this purpose, facilitating trade as well as spreading we have initiated a project to develop Firstly, the growth in trade is moving to the benefits of trade to the surround- a tailor made self-assessment tool, emerging markets. Secondly, there has ing economy. This is a strong value based on the UN Global Compact been a clear growth in the privatisation proposition, which serves us well in methodology, which will be applied by of ports, because the level of capital, the growing tender market (read more all of our activities. The system will also knowledge and competencies needed about the study on our website). be part of new project developments is rarely sufficient in local government. as well, serving as a way of integrating Thus, local authorities are becoming Another important event in 2010, sustainability perspectives into our far more interested in the development extending our value chain, was the way of doing business. opportunities offered by the applicants merger of the Maersk-owned business, as part of a contract for running a port Container Inland Services, with our Each self-assessment will result in a terminal. This affects our business operations. Previously serving primarily scoring of each of the 10 principles. model. We need to respond to these Maersk Line’s need for inland activities The resulting one-page overview is to changes both to sustain our business (trucking, inland depots, etc), these to become an integrated part of our and to impact the development of lo- activities will now be part of APM Ter- corporate governance. We expect this cal communities positively. minals’ offerings to our customers. integration to begin in 2011.
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Safety at the forefront want to extend to our new inland ac- Terminals’ Global Safety Day on 12 The work carried out in ports, depots tivities. The flipside is that sadly, when October 2010. and inland transport creates risks of something does happen it is usually damaging human lives, something we serious, even fatal. Moreover, we will work more aggres- invest a great deal of effort in avoiding. sively on holding contractors and suppli- Our people deserve it and our business This shows in the 2010 statistics, ers accountable on safety matters. On depends on it. which shows 10 people died while any given day our facilities receives more than 90,000 visitors, who also need to comply with our safety procedures. “We support all initiatives that make ports safer places to work. I think that we can also congratu- Consequence management late APM Terminals on its safety effort, which has Increased safety for workers not em- seen recorded injuries fall from 890 in 2006 to 482 ployed by APM Terminals, such as truck- in 2010, but which also acknowledges that even one ers, carriers and contractors engaged with stevedoring and lashing work, is the injury is one too many, and that all measures must be taken to prevent them.” Paddy Crumlin, Chair of the ITP’s Dockers’ Section Community tool used in business development “Safety used to be an obligation, now working on our premises, seven in the it’s also getting to be a competitive port terminals and three within the in- An output of the study of the impact of factor. When you handle safety well, you land activities. This is an increase from our terminal in the Apapa port in Lagos, manage risks, you secure your licence to the nine fatalities in 2009 (four/five), Nigeria, carried out in 2009, was a com- operate and prove you have good gov- which is far from our target of zero fa- munity tool. Today, when we design and ernance. You cut costs – interruptions talities. We deeply regret the loss of plan the construction of new terminals, to business are expensive, and stop you these 10 people. In 2011 the safety fo- the tool is used to investigate challenges from delivering on time to the customer,” cus will be on providing more support beyond the immediate business, e.g. the explains Henrik Kristensen, Head of Cor- to entities with higher safety risks, community composition and needs. porate Responsibilities in APM Terminals. identifying the next level of safety ma- turity and determining a new peer One of the new contracts won in 2010 was In 2010 we worked to integrate inland ac- group outside the ports industry. a 25 year concession running the Monrovia tivities in our safety management system port in Liberia. In a country recovering from including audits, workshops and training a decade-long civil war, the community programmes to incorporate standards of Involving stakeholders is challenged and not easily understood. procedures, investigations, reporting, etc. We can never take our focus off our Using the tool has increased our under- own systems and behaviour, but APM standing of the local community and we Based on figures within operational Terminals also wants to involve our are now considering how best to engage. scope, our LTIF in 2010 was 4.36 broader stakeholder community in compared with 5.82 in 2009. This promoting safety at work and increase In Santos, Brazil, another new terminal represents a drop of 25% in 2010. To accountability. project was won, beginning with a major have learning opportunities we are environmental clean-up from past activi- searching outside our own industry for We work to involve stakeholders in ties, before construction of a large new benchmarks for the future. awareness and training campaigns, terminal will commence. This turns land one example being our invitation to that was previously unusable into a con- In the port areas we see that we have the International Transport Workers’ tributing part of the community. hardly any smaller injuries – a fact we Federation (ITF), to get involved in APM
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main challenge. They must also work • Monitoring of individual terminal per- according to APM Terminals’ standards. formance on a monthly basis, with targets 2011 immediate show of how manage- We have begun annual reviews of ment decisions affect performance LTIF Reduce by 15% contract compliance in terms of safety, • Our two green ports in Rotterdam CO2 Reduce by 6% to ensure that our contracts enable and Zeebrugge Oil spills Zero this kind of accountability and allow • Portfolio trimming due to commer- for financial or other disciplinary action cial needs if the contractor fails to live up to APM • Allocation of reefer electricity con- Terminals’ safety standards. sumption to our customers. We have Industry benchmarks no influence on this consumption In 2010 we started working on estab- “Our starting point is that we take and regard it as a ‘pass on’-service. lishing global industry benchmarks for responsibility for what goes on within CO2 emissions, in collaboration with the parameters of our terminals. For In 2011 our target for both port and in- other terminal operators. We anticipate external vendors we feel a responsibil- land activities is to improve emissions by increased transparency about footprints ity to influence their safety standards 6% over 2010 in relative terms. Further and sharing of best practices to actively and ultimately if they refuse to be influ- we plan to implement an environmental reduce the climate change effect. enced we could end that relationship,” management system in all entities. says Kim Fejfer, CEO of APM Terminals. This type of benchmark is necessary We launched this new intention as part For reefer containers, the consumption to further transparency and account- of our fourth Global Safety Day in 2010. of electricity while transiting in ports ability from terminal operators. Our has so far been allocated to the termi- customers, the container shipping nals, creating a risk of double counting. industry, are also interested in terminal CO2 emissions reduced We want to ensure that emissions are emissions as their customers – the For port activities the target was a allocated to the operator, who has the large retailers and consumer goods 10% reduction in CO2 emissions per largest possibility and incentive to lower producers – want to be able to cal- lifted container (TEU). We managed a emissions. From this year onwards we culate emissions based on the entire reduction of 9%. Five factors affected have decided to allocate emissions distribution chain. our performance: to the shipping liners, provided that information on electricity consumption Read more www.apmterminals.com • Simplifying processes is available from the terminal.
APM Terminals key sustainability figures 2010
Social performance – safety 2007 a 2008 a 2009 2010 Number of full time employees (FTE) number 22,571 25,179 20,135 19,022 Lost time injury frequency (LTIF) frequency 9.60 b 9.24 4.89 5.28 Lost time injury frequency (LTIF) c frequency 9.60 9.24 5.82 4.36 Fatalities number 10 14 9 10 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 647 783 623 594 CO2 – direct and indirect 1,000 tonnes 607 782 568 511 Economic performance Revenue USD million – 3,119 d 4,240 e 4,251
– = Not available a 2007 + 2008 are APM Terminals and c Data collected with operational scope. e APM Terminals and Container Inland Services Container Inland Services added up. d Only data for APM Terminals. consolidated. b Only data for APM Terminals is available.
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Maersk Tankers operates 176 ships including a large fleet of crude oil car- riers, product tankers, chemical and gas carriers, linking the extractive indus- tries with production facilities and supporting energy availability across the world. We are headquartered in Denmark with offices in six other countries.
While the state of the global economy Our most material issues defined in our the industry’s focus on sustainability appears to be improving, the global 2010 and 2011 sustainability action issues. Through our sustainability plans tanker business still hovers just above plan are safety and environment. We and actions, we are working towards a the bottom of the curve. Markets contin- have key performance indicators for leadership position. ued failing in the first half of 2010, and safety and environment in place on all while the second half of the year showed managerial levels, including our execu- Among other things, we are working to some improvement, it remains an tive management. Through customer coordinate standards in our pooling ar- industry suffering from low prices and vetting and inspection programmes, rangements (i.e. combining resources historically low profits across the board. Maersk Tankers aims to gauge custom- with our competitors to achieve ers’ areas of focus. Our goal is to adapt common goals), and are active in the “We want to make sure that when the cri- to potential focus switches quicker than Oil Companies International Marine sis finally blows over, we are the company competitors by identifying these sooner. Forum (OCIMF), a voluntary associa- left standing with the right people and tion of oil companies. the right customers. This demands focus on cost, quality and customers – but also Using size to influence “Working with our customers in OCIMF on driving a company that employees Maersk Tankers is the largest partici- we have the opportunity to better our can be proud of: a sustainable company,” pant in the tanker industry and by mov- industry. We can debate safety and en- says Søren Skou, CEO of Maersk Tankers. ing first we will attempt to increase vironmental issues related to shipping
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of oil and gas with our customers and tank following a sweeping operation • CSR audits on two repair yards used are glad to be able to show leadership when he slipped from a ladder and fell by Maersk Tankers. in this way,” says Søren Skou. to the bottom of the tank. Subsequent internal and external accident investiga- • Requirements for each ship to imple- tions and a post mortem examination ment and carry out four ship specific Moving ahead on safety revealed that the individual had been HSE initiatives during the year. In early 2010, a third party contractor under the influence of and impaired by a suffered a fatality onboard one of cocktail of illegal and prescription drugs. our ships in the port of Hamburg. The Reducing CO2 through contractor had been exiting a cargo Since the accident, Maersk Tankers has fuel optimisation reviewed and updated procedures and Our environmental strategic ambition processes surrounding working with is to go beyond compliance and pursue contractors, enclosed space entry and eco-efficiency in our daily operations, Anti-corruption to working from heights since the accident and improving our environmental the frontline and plans to release learning campaigns performance remains one of our focus on the two latter points during 2011. areas in 2011. Maersk Tankers took anti-corruption efforts to frontline employees in 2010, Our LTIF dropped from 1.34 in 2009 to Our absolute CO2 emissions increased in with a few simple tools communicating 0.83 in 2010, which can be attributed 2010 by 19% compared to 2009. In 2011 that we want to keep our business clean. to a great increase in number and qual- we will continue to work towards our tar- ity of our near miss reporting, which get of reducing air emissions, for CO2 and
On every ship there is a “Welcome on almost doubled. Our target for 2011 NOx by 5% per cargo unit per nautical board” notice that greets visitors. This remains an LTIF of 0.6. mile by end December 2012 (2007 base- now has a new, explicit message concern- line), and for CO2 by 15% by end Decem- ing anti-corruption. Furthermore, all visi- We strive to be best in class regarding ber 2015 using the same baseline. tors to our ships are supplied with a folder safety and our performance compares communicating our stand on corruption. favourably with the industry bench- A major contributor to the 2010 and Our office staff have also had training on mark of 1.09 (source: INTERTANKO, future reductions was Maersk Tankers’ handling corruption-related situations. running 12 months). We have made ongoing fuel optimisation project, extensive plans to improve on our which applies a broad variety of meas- Maersk Tankers’ anti-corruption efforts are health and safety management in ures such as continuous improve- supported by our customers, including BP: 2011, through application of a broad ments in voyage planning, optimal number of measures: trimming of ship operations both at “I’m very pleased to note that Maersk sea and in ports, through continuous Tankers has taken the global challenge • We will roll out a new management performance monitoring. of facilitation payments in hand and system and software which will aid demonstrated a willingness to be trans- onboard management and opera- Moreover, in 2010 we ran a campaign parent and honest in tackling this issue tions, and allow a more effective anal- focusing on energy efficiency on board with the company’s recent “stop corrup- ysis of HSE data with more timely the ships, including a pilot test of a tion” initiative. This is indeed an illustra- updating of policies and procedures. ship energy efficiency management tion of Maersk Tankers’ commitment plan, which has also saved energy. This to deliver its business in full compliance • We will run campaigns on health, will continue in 2011. with its ethics and compliance code. It working at height, safe-handling and will certainly encourage other organisa- on entry into enclosed spaces. tions to follow suit,” says Captain G. A broad range of issues Fekry, Manager at Vetting and Clearance • Training of officers employed by addressed for BP Shipping Ltd. Maersk Tankers after 2007 on values As another item in our action plan, we and safety culture. made sure, that all ships carrying crude
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oil have on board an approved volatile and procedures during transfers and organic compound management plan, more training on onboard pollution targets and all ships are currently in the pro- prevention equipment we will reverse cess of establishing approved ballast this trend. Our target for 2011 remains LTIF 0.6 in 2011 water management plans, in line with zero spills. CO2 Reduce by 15% per possible future requirements from the cargo unit x nautical mile by end of 2015 Ballast Water Convention. In 2011 we will also begin work on Green ports Rank most used ports chemical management and prepara- and audit two major In 2010, we landed an increasing share tions for ship recycling. ports in 2011 of our sludge and garbage (11% com- Oil spills Zero in 2011 pared to 9.8% in 2009) in green ports, i.e. ports that we find meet Maersk’s CSR and integration safety and environmental supplier are future focus requirements. Although our total We have set out a number of focus with customers and suppliers on figures for waste remain the same it areas to guide our sustainability efforts sustainability issues and business is encouraging to see more focus on in the coming year. One of the most opportunities. recycling and reuse. We want to rank prominent is to integrate sustainability our top 100 ports on performance and in Maersk Tankers’ organisation. We Examples of this are our work with costs associated with waste disposal, see this target as requiring a strong Shell on scrubber technologies, which and engage with these for best prac- sustainability culture with sustain- are used to control air pollution and tice sharing. In 2011 we will rate the ability representatives in all areas of potentially to recover heat from hot most used ports and audit two major operations and on the ships, training gases, and our involvement in the ports. The possible involvement of a and empowerment, engagement and project Green Ship of the Future. This non-governmental organisation in vali- sharing of best practices. project is a cooperation between 25 dating our port ratings is expected. companies, primarily from the Danish Moreover, we are preparing ourselves maritime industry, which have joined We had two overboard spills – in two for the roll-out of programmes on forces to develop strategies to reduce sealed drums – and 17 spills contained group-wide labour principles, human ships’ emissions to air. on board, equal to 800 litres of oil over- rights and responsible procurement. board and 1130 litres contained on deck. This is an uncommon increase We will also work to ensure that sus- and through more information to the tainability is included in commercial Read more www.maersktankers.com ships, stricter observation of guidelines strategies, and to create partnerships
Maersk Tankers key sustainability figures 2010
Social performance – safety 2007 2008 2009 a 2010 Number of full time employees (FTE) number 1,847 1,879 2,964 2,771 Lost time injury frequency (LTIF) frequency 0.59 1.38 1.34 0.83 Fatalities number 0 0 0 1 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 1,775 2,124 1,953 2,330 CO2 – direct and indirect 1,000 tonnes 1,765 2,111 1,941 2,316 Economic performance Revenue USD million – 940 1,166 1,219
– = Not available a Product tanker company Broström was acquired in 2009.
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Maersk Drilling owns 26 drilling rigs and provides high-efficiencydrilling services to oil companies around the world, supporting our customers in meeting the global demand for energy. Headquartered in Copenhagen, Denmark, we have offices in 11 countries.
The global offshore drilling market “In the offshore industry it is vital to tainable practices are set to grow, and experienced a slowdown in 2009, from be able to show good management contracts in our future growth regions which we are still recovering. The future and performance on items related demand high levels of community outlook for offshore drilling, however, to sustainability, and we want to be engagement by the drilling operator. is encouraging. Our main growth op- industry leaders in this area. We have portunities are in Asia, Latin America no doubts that this will provide us with and Africa. a competitive edge in the future,” says Our basis: a full strategy Claus V. Hemmingsen, CEO of Maersk framework Maersk Drilling sees sustainability as a Drilling. Integration of sustainability in all supporter of our business strategies. relevant business processes was bol- We want to be preferred over our peers Market developments also drive us stered by the launch of a CSR strategy by employees and customers. Sustain- towards sustainability. Our customers’ for Maersk Drilling in 2010. Together ability, we believe, can help us get that expectations of Maersk Drilling are in- with the existing Health, Safety and outcome. creasing. Regulators’ demands for sus- Environment (HSE) strategy, we now
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have a complete framework to guide sank on 20 April. Eleven people died, A tight grip on safety our sustainability actions. 17 were injured, and the unleashing of Safety is a crucial element in the drill- crude oil into the Gulf of Mexico rep- ing business and Maersk Drilling goes “Maersk Drilling is aligning and enhanc- resents one of the biggest accidental beyond compliance. As a minimum ing its efforts within sustainability with marine oil spills to date. we comply with relevant laws in all focus on employees, customers, com- areas in which we work. In addition, we munities and the environment,” says Initially, the incident spurred a review have built our management system Claus V. Hemmingsen. of the rights and responsibilities of to the most stringent international requirements meaning that even if we operate in a place with little or no HSE “In the offshore industry it is vital to be able to show legislation, Maersk Drilling applies the good management and performance on issues same rules. related to sustainability, and we want to be indus- Based on operational scope data try leaders in this area. We have no doubts, that this (read more on scope page 84), Maersk will provide us with a competitive edge in the future.” Drilling’s LTIF for 2010 was 0.36 – our lowest LTIF ever – compared to 0.7 in Claus V. Hemmingsen, CEO of Maersk Drilling 2009, continuing the trend of previous years of improved safety in our work- We built our CSR strategy through a offshore staff to stop a job, with places. To keep this good performance process of analysis of external trends our CEO communicating to all senior going, in 2010 we carried out two new and internal dialogue including input staff the rights to reinforce their from teams with extended customer mandate to stop any job, where the and regulatory contacts. Together with safety of the operation can be ques- these stakeholders, we focused on tioned. New tool to identify exploration of oil fields’ impact on the risks and stakeholders environment and local communities. Maersk Drilling also cooperated with Also, we saw a continued emphasis Maersk Oil to analyse and learn from Part of our CSR strategy is a priority on risk management with regards to this incident, suggesting a number of focus on community involvement. We safety, emissions and spills as well as changes in drilling safety procedures, are well under way in preparing a set of other local impacts. e.g. upgrade of well-control equip- shared guidelines and a tool for system- ment and processes for integrating atic mapping of risks and stakeholders. Accordingly, our future work will focus the oil company’s design of the well, on four areas: and Maersk Drilling’s design of drilling Using the tool, all units or departments in processes. the company will map and evaluate risks • Emissions and hazardous materials and stakeholders, providing a plan for CSR • Compliance, risk management and On an industry level, we welcome including stakeholder engagement locally decision making tighter rules, expecting that long term with an overview of both dialogue oppor- • Communication and stakeholder they will lead the industry to safer and tunities and risk mitigations. The tool is engagement more efficient drilling. designed in accordance with the AA1000 • Community engagement for our Stakeholder Engagment Standard and local entities In the International Association of will be implemented in early 2011. Drilling Contractors, the main drilling industry global trade association, we The resulting CSR plan will locally reviewing procedures are actively pushing for higher stand- together with our current HSE plans The defining moment in the offshore ards on both safety and environmental constitute a sustainability plan for each industry in 2010 was when the rig monitoring through our membership particular operation. Deepwater Horizon caught fire and of relevant committees.
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activities investigating behavioural ele- sustainability into our business pro- ments in safety: cesses locally and globally. targets 2011
Safety surveys – a safety climate sur- • U ncovering the needs of our local LTIF 1.0 vey among our employees, which we operations, with each unit perform- TRCF measure 5.0 intend to use to benchmark and track ing a materiality analysis which will CO2 Reduce by 5% Spills Max 7 spills developments year-on-year, and a set determine a local plan. A tool was of safety culture surveys, built on in- prepared and tested in Brazil and More targets and actions planned for terviews with roughly 100-125 people Venezuela in 2010, with global roll- 2011 can be found in Maersk Drilling’s from senior managers to roustabouts. out planned for early 2011. Sustainability Report 2010, available Three safety culture surveys were on www.maersk-drilling.com. conducted in 2010, leading to the risk • Initiating formalised internal CSR- management focus described below, consultation on commercial invest- and to the individual units taking ment decisions, e.g. market entry action in areas where the analysis and procurement of rigs. One example of what we can achieve showed they were lagging. with Sirius is the reduction in safety • Developing a campaign for aware- incidents caused by lack of compliance Risk management – which in both ness and practical implications of with own procedures. These decreased our working group related to the the eight Maersk Principles of Con- from 24% of all incidents in 2009 to Deepwater Horizon accident and in our duct, to be launched in 2011. 13% in 2010 just by way of implement- safety surveys was brought up as an ing the system. area in need of improvement. We will • U sing our web-based management integrate an improved safety, security system which provides easy access to and quality risk management module and broader knowledge of standards Read more www.maersk-drilling.com in our management system Sirius. and procedures. In 2010 we went through all business processes in the system and located where sustain- Process-based integration ability issues are relevant. These will In 2010 we prepared for integrating be integrated into the system in 2011.
Maersk Drilling key sustainability figures 2010
Social performance – safety 2007 a 2008 2009 2010 Number of full time employees (FTE) number 2,567 2,890 2,867 3,198 Lost time injury frequency (LTIF) frequency 1.67 b 1.09 0.97 0.00 Lost time injury frequency (LTIF) c frequency 1.67 1.09 0.70 0.36 Fatalities number 0 0 0 d 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 406 768 20 17 CO2 – direct and indirect 1,000 tonnes 406 e 720 20 17 Economic performance Revenue USD million – 1,450 f 1,282 1,627
– = Not available c Data collected with operational scope. e Did not report electricity and flaring in 2007 which a 2007 and 2008 environmental and safety data is col- d The two fatalities mentioned in our sustainability report explains both low CO2 and CH4 emissions. lected for Maersk Drilling and Maersk FPSOs as one unit. 2009 have been removed due to change of scope. The f Covers revenue for Maersk Drilling, Maersk FPSOs b Figure is based on the Group Reporting standard for two fatalities occured at the premises of a third party, and Maersk LNG. 2007 (working hours), and the equivalent number in making them liable to report. 2009 terms (exposure hours) is 1.08.
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Maersk FPSOs assists in oil and gas production by building and operat- ing floating production units for oil companies around the world. We have our headquarters in Denmark and offices in four other countries.
During 2010 the FPSO market reverted “In Maersk FPSOs we have a constant external environment. In this connec- to the same level as prior to the finan- focus on our safety performance and tion, we established ‘green teams’ on cial crisis, and more than 100 projects protection of the environment. We two offshore units, Maersk Curlew and with an FPSO as the preferred solution, carefully monitor social and techni- North Sea Producer. are expected to be launched globally in cal developments in the industry for the next five years. protection of our environment and our We developed a strategy for our CSR people. HSE is also about taking care work towards 2014. Our aspiration is These are very attractive prospects, and of yourself – and of one another,” says to incorporate sustainability into eve- Maersk FPSOs is working to accelerate Stig Hoffmeyer, CEO of Maersk FPSOs. rything we do, taking into account the our performance through technological environment, the people and the finan- solutions and equipment that, among cial viability, and promoting solutions others, focus on the efficiencies and Strategic priorities on track which may exceed local requirements safety provided by greener technology. In 2010 Maersk FPSOs established an in cooperation with our customers and independent HSE department, which other business partners. In support of our ambitions, Maersk will work to bring to life the priorities FPSOs received the ISO 14001 Certifi- in our HSE strategy, among other, The main focus of our CSR work in cate of Approval in 2010. reducing our activities’ impact on the 2010 was “Getting the foundation
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right” and in 2011 we will work under every routine and action,” says Peter the heading of “Toolbox and Training” Holst, Head of HSE in Maersk FPSOs. targets 2011 to drive CSR processes, actively engage the organisation, promote key projects In total, Maersk FPSOs had five lost TRCF 8 and conduct audits. time injuries in 2010. This is five inci- Oil spills 1 or less dents from our goal and we will con- tinue the work to improve the general Safety starts with me safety culture by continuous training This simple message is written in me- and development of our employees. 1,000 days with no LTIs in 2010. This tre-high letters on the accommodation was achieved despite a disconnection, on several Maersk FPSOs ships. And The fact that the goal of zero injuries can which made dry docking for repairs safety is of the utmost importance be reality and not only aspiration was necessary, and subsequent reconnec- tion of the unit performed offshore. Being able to achieve zero injuries un- “The last two years have seen some very significant der these circumstances is remarkable and complex activity on Curlew, which have made the and appreciated by the customer. achievement of 1,000 days LTI free all the more impres- “The last two years have seen some sive. All of your offshore and onshore teams should very significant and complex activ- be congratulated for achieving this work safely.” ity on Curlew, which have made the achievement of 1,000 days LTI free Perran Horrell, FPSO Operations Manager, Shell U.K. Limited all the more impressive. All of your offshore and onshore teams should – as well as the top HSE priority – in proved by two of our operating units be congratulated for achieving this Maersk FPSOs. in 2010. On 14 November 2010 the work safely,” says Perran Horrell, FPSO gas production unit Nkossa II achieved Operations Manager, Shell U.K. Limited “Safety is a value, not a priority you 2,700 consecutive days without acci- can change. We promote a behaviour- dents, due to a strong safety culture. based safety culture, with open and honest communication to create an Another unit of ours, Maersk Curlew, Read more www.maersk-fpsos.com environment where safety is part of operates in the North Sea and reached
Maersk FPSOs and Maersk LNG key sustainability figures 2010
Social performance – safety 2007 a 2008 a 2009 2010 Number of full time employees (FTE) number 2,567 2,890 875 831 Lost time injury frequency (LTIF) frequency 1.67 b 1.09 0.00 1.55 Fatalities number 0 0 0 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 406 768 15 39 CO2 – direct and indirect 1,000 tonnes 406 c 720 15 39 Economic performance Revenue USD million – 1,450 d 386 418
– = Not available a All 2007 and 2008 environmental and safety b Figure is based on the Group Reporting stand- c Did not report electricity and flaring in 2007 data is collected for Maersk Drilling and Maersk ard for 2007 (working hours), and the equivalent which explains both low CO2 and CH4 emissions. FPSOs as one unit. number in 2009 terms (exposure hours) is 1.08. d Covers revenue for Maersk Drilling, Maersk FPSOs and Maersk LNG.
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Maersk Supply Service provides the offshore industry with subsea support, transport of equipment, anchor handling and mooring. Our 67 ships operate in all major deepwater regions of the world.
In the offshore support service indus- Along with implementation of Group The ISO14001 environmental manage- try safety performance determines policies on anti-corruption, responsible ment system was implemented in if you win or lose business. Keeping procurement and labour principles, 2006, and we continue to train our people safe is the way to maintain our local community impact and engage- officers in this system, due to turnover licence to operate. ment will feature more prominently on and rotation. For 2010 we had set a tar- our sustainability agenda in the years get of 95% of officers and office staff “Our customers in the oil industry are to come. having completed this training, and we very straight with us. They expect us came a long way towards our goal. to be safety leaders and watch our safety performance closely. Our vision Part of business processes is to be the customers’ first choice and Safety aspects are already integrated Four initiatives that can only be the case when we get in our business strategy, but we are to improve safety safety right,” says Carsten Plougmann taking this to the next level. Our performance measured in LTIF Andersen, CEO of Maersk Supply improved again in 2010. We had four Service. “Office staff already have safety key main initiatives: performance indicators as part of their For Maersk Supply Service safety performance assessment, and in 2011 • Safety observation card is the most important issue on the we will work to develop safety and We introduced a simple paper-based sustainability agenda. Environment is environmental performance indicators reporting format on near-misses to an improving second on our list, and for senior officers at sea,” says David be used in all areas of our ships by a growing part of our customers’ and Blencowe, Director HSEQ in Maersk our crews. Since the introduction our employees’ interests as well. Supply Service. combined safety observation and
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near miss, reporting rose by 62% in that our ship or crew did not have any 2010. responsibility for the accident. targets
• Safety culture survey Yet, the incident taught us that our LTIF 0.65 in 2011 From our first ever safety survey offices and crews would benefit from TRCF 2.75 in 2011 among seafarers we learned that better training in third party manage- Ship audits 100% of ships in 2011 they see our safety culture as strong, ment, and we changed our procedures Safety observation but suggest stronger feed back to require deeper engagement from cards submitted: 5,000 in 2011 loops between our offices and ships, the ship’s management. CO2: 5% reduction per and more focus on introduction and ship by end 2012 training in certain geographical areas. Focus on reducing • Localised training environmental impact Through a new safety organisation, In our strategy covering the next three reduction of 82% (from 1,600 litres to we now have safety staff working years, we have determined four focus 303 litres), through focus on investi- from Canada, Brazil, Australia and areas to reduce our impact on the gation of all spills and spill prevention. Scotland which allows for more natural environment (below numbers localised training. are based on operational scope). • Chemical product types used – which we wanted to reduce by 10% • Hazard hunts on ships • CO2 emissions – our target is a 5% in 2010, and achieved a reduction of ‘Hazard hunts’ invite crews, visiting reduction per ship before end of 2012 17%. We tested the use of bio-chemi- crews or visiting company representa- (baseline 2008). In 2010 we reduced cals and a changed economic incentive tives to search for unsafe conditions on emissions by 12% mainly due to new structure for ships and suppliers. board. Ship management provide feed- ships. In 2011 we will continue en- back and address the issues found. gaging with customers on reduction • Management of ballast water of transit speed, and roll-out a con- – where the target is to have a com- sumption reporting system for our plete solution in 2012, two years ahead Learning from a fatality ships to increase energy conscious- of new legislation entering into force. In August 2010, on a wind farm off the ness and allow benchmarking. In 2010 we ran pilots on four ships. German coast, a diver working on the seabed under one of our ships sadly • Spills and consumption of oils died. The diver was not under our man- – where the target was a 25% reduc- Read more www.maersksupplyservice.com agement, and authorities have found tion of spills in 2010. We achieved a
Maersk Supply Service key sustainability figures 2010
Social performance – safety 2007 2008 2009 2010 Number of full time employees (FTE) number 1,642 1,797 2,412 2,088 Lost time injury frequency (LTIF) frequency 2.34 1.43 0.94 0.00 Lost time injury frequency (LTIF) a frequency 2.34 1.43 0.69 0.81 Fatalities number 0 0 0 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 771 740 33 30 CO2 – direct and indirect 1,000 tonnes 765 735 33 30 Economic performance Revenue USD million – 712 749 772
– = Not available a Data collected with operational scope.
A.P. Moller - maersk group Tankers, offshore and other shipping activities Sustainability Report 2010 75
Since 1833, Svitzer has developed a number of specialist and inter- related services within harbour, terminal and ocean towage,as well as salvage and emergency response. Today we have offices in 36 countries and operate in more than 130 locations around the world.
The purpose of Svitzer is to provide UPGRADED TRAINING gramme based on the DVD, ensuring a safety and support at sea. Central to all In 2010 Svitzer’s performance on LTIF common understanding of the Svitzer business segments is our approach to improved by 35%, from 1.35 to 0.82. safety culture. In addition to the utili health and safety: Do it safely, or not at all. We maintain a zero injuries target, and sation of safety equipment (PPE) the focus our efforts on improving proce- DVD also addresses behavior-based Safety is at the core of our value dures and equipment. In 2011, in order safety. proposition to both customers and to maintain our solid performance colleagues, and it is our most material and improve further, we will focus on As our customers take a huge interest sustainability issue. further developing our safety culture, in safety – the subject being a large ele- among others through training. ment in tenders for which we compete “Sustainability, with a strong focus on – the DVD will also be made available safety, is already pivotal to our business. To this end, the Svitzer-specific training to our customers. We expect it to become an even stronger DVD, first developed back in 2008, con- part of our value proposition in the taining basic safety training and safety Another addition to our training port- future. Competition in our industry is in- culture lessons including exercises, folio was an expansion in the number creasingly moving towards sustainable has been upgraded. It will be launched of mobile simulators in use from one solutions including safety and environ- in 2011. All employees, seafarers and to four. These mobile simulators sup- mental issues as the determining fac- office staff as well as new employees, plement the main simulator at Force tors”, says Jesper T. Lok, CEO of Svitzer. will undertake a half-day training pro- Institute in Denmark, and provide us
A.P. Moller - maersk group Tankers, offshore and other shipping activities Sustainability Report 2010 76
with the opportunity to increase local ocean towage) by 3% in 2010 com- testing of new procedures and training pared to 2009. targets 2011 of new employees. Portable mobile simulators are now in place in the UK, This result was achieved by a number CO2 1% reduction per Sweden, Dubai and Peru. A fifth simu- of initiatives, all increasing awareness tug operation lator is planned for our new operation of fuel consumption. A number of LTIF Zero Safety training All employees to in Angola. The usage of simulators ships have had monitoring equipment complete new allows us to maintain the high skill and fuel gauges installed to measure training programme level of our crew as well as train them actual consumption – in relevant cases for critical situations under safe condi- followed up by training. Others have tions together with local pilots. improved the planning process for loading, reducing emissions substan- “We are preparing for increasing de- tially. mands from both customers and legis- A LONG ROUTE TO AVOID PIRATES lation by developing products that To protect the safety of our crews, In addition the topic of our environ- meet these demands. This is not only we have decided to make the entire mental footprint has been brought up about risk management, it is about “piracy risk area” as defined by the in our internal magazine, assisting to keeping our business prepared for the International Maritime Organization, as raise the overall environmental aware- future, and making our contribution out of bounds to all our ships. ness within Svitzer. A number of initia- to alleviating climate change”, says tives in preparation for the future are Jesper T. Lok. Svitzer’s business activities in the af- running on a continuous basis, and we fected area are very limited, so current support the Group initiative to investi- As part of this plan, in 2010 we placed implications of this decision mainly gate the use of biofuels, along with a the first order for two environmentally- applies to newbuildings mobilising number of other business units. sound tugs, the ECOtug, the first of around the tip of the African continent which will be delivered from Baltija or the Pacific rather than through the Shipyard end 2011. These new tugs Suez Canal, causing 50% higher costs, Green tug boats on are expected to reduce fuel consump- or for ocean towage operations. the way tion and CO2 emissions by some 10%
Environmental issues are growing in and NOx emissions by 70-80% com- importance to our customers, and we pared to more traditional tug boats. REDUCED EMISSIONS aspire to become recognised as the Svitzer reduced its relative emissions most environmentally-responsible Read more www.svitzer.com of CO2 per tug operation (excluding company competing in our industry.
Svitzer key sustainability figures 2010
Social performance – safety 2007 2008 2009 2010 Number of full time employees (FTE) number 3,676 3,901 3,806 3,461 Lost time injury frequency (LTIF) frequency 2.60 1.64 1.35 0.82 Fatalities number 3 0 0 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 435 491 244 222 a CO2 – direct and indirect 1,000 tonnes 433 487 243 221 Economic performance Revenue USD million – 917 779 890
– = Not available a Of the 9% reduction, 6% is due to reduction in activity.
A.P. Moller - maersk group Retail activity Sustainability Report 2010 77
Dansk Supermarked is the final link in the global trade value chain, in this case bringing goods to consumers in Denmark, Sweden, Poland, Germany and the UK. We operate six retail chains and two department stores, with more than 1,400 stores and 45,000 employees.
The retail industry allows for people to people, most of these quite young and sold. Good sourcing, safe workplaces, access goods from local, national and in entry-level positions, whom we need job opportunities and savings on international sources. In Dansk Super- to keep safe and secure while perform- energy all assist in keeping costs down marked we believe our primary task is ing their jobs in open-access locations and creating an “esprit de corps” that to offer free choice to our customers where cash floats freely. The goods helps us attract and retain employees. and at the same time make a profit we source are transported over long responsibly. distances and need to be kept frozen, “We work with sustainability issues cool, warm, under light and more. to help us provide our customers with Within this task lie challenges. We choices that we and they can feel good source globally and this implies a num- At the same time the retail sector about, and to help us run a profitable ber of risks – regardless of policies and needs to be highly conscious of costs business,” says Erling Jensen, CEO of rules. We employ many thousands of due to low margins on most products Dansk Supermarked.
A.P. Moller - maersk group Retail activity Sustainability Report 2010 78
Robberies: Our main concern in terms of robberies In general, our LTIF has decreased 4% a growing concern is the effect it has on our employees, in 2010 from 2009, despite increased One of the greatest risks to our store and we employ all possible measures activity. employees is being the target of a to increase security. robbery. Dansk Supermarked has since This can attributed to a renewed focus 2007 seen an increase in the number We employ all possible measures to on training, an ongoing communica- of robberies in our stores. In 2010 we increase security for our employees: tion effort as well as a lower rate in saw a small decrease to 46 robberies employee turnover. in Denmark, compared to 49 in 2009. • Continuous follow-up and investiga- tion of occurrences, and risk-mitigat- ing adaptation of procedures Working towards energy savings • Employee training in conflict manage- In order to meet the strategic ambition Working for ment and prevention of robberies level of eco-efficiency set by Maersk, responsible sourcing Dansk Supermarked has initiated a • Testing of state-of-the-art anti- number of energy saving activities and In trying to secure a well-managed sup- robbery technologies set targets for our activities. ply chain, Dansk Supermarked has been a member of the European supply chain • Response teams offering psychologi- In 2010, total CO2 emissions increased initiative Business Social Compliance cal support in case of involvement in a by 4% and electricity consumption Initiative (BSCI) since 2006. robbery. On average, three employees also increased by 4%. These increases take up the offer of psychological as- can mainly be attributed to the very In 2010 we encouraged other Danish sistance after a robbery. Employees, cold winter in Northern Europe as well companies to join BSCI. We gathered 63 who have been the target of a rob- as an increase in number of stores. non-food suppliers for an event inform- bery, are helped back into their old job ing these companies of the benefits of – or a similar job in another location. In 2010 the total CO2 emissions were BSCI membership, e.g. the fact that once reduced by 7%. In regards to the a supplier has been approved by one • Open industry cooperation, within electricity consumption we reached a member of BSCI, this approval extends the Danish Chamber of Commerce, reduction of 8%, but due to the very to the other more than 400 member to develop security solutions and cold winter in Northern Europe the companies. Of the 63 participants, 22 affect policy changes to increase the consumption of energy for heating are for various reasons out of scope and industry’s security in general. increased by 7%. 17 will join BSCI. 24 of the participants have not stated their intention to us.
Auditing Dansk Supermarked performed 28 Robberies in Dansk Supermarked 2002-2010 audits in 2010, a share of which was performed by other BSCI members and in the BSCI database. 50 We have added 90 suppliers to our inter- 40
nal list, of which 18 already had a BSCI 30 certificate. We have received 59 com- 20 pleted self-assessments and performed 10 17 audits based on these (included in the 28 total audits). 2002 2003 2004 2005 2006 2007 2008 2009 2010
A.P. Moller - maersk group Retail activity Sustainability Report 2010 79
In January 2010, our chain of discount possible. A further benefit is reduction supermarkets Netto initiated use of a in our risk of non-compliance with targets new cooling warehouse. Being 21,500 regulatory requirements for the man- m2 and using CO2 as its cooling agent agement of waste. CO2 Reduce emissions it is one of the most energy-friendly relative to building refrigerators of its size anywhere in In a project developed throughout area by 10% by 2012 the world. 2010, we have negotiated with a (2007 baseline) facilities management company to We estimate that this new warehouse improve our waste management, with will create savings in terms of energy a full-time consultant working from and CO2 emissions to the tune of 10% our offices for the next two years. The municipalities. In recognition of this per year compared to building area, project is focused on our Danish stores. work, we received the Danish Diversity and as such will greatly aid us in reach- Award in 2010. ing our targets. We are already closely involved with suppliers on design of packaging for In 2010 we further began a pro- In 2010 we also optimised store equip- ease of use, and reduction of waste. gramme to employ young people, who ment and lighting to achieve energy at an earlier stage in their life were savings. involved in small scale criminal activity. Creating opportunities This was launched in partnership with The retail sector holds a large share of a Danish NGO named ‘High Five’. Busy with waste the labour market’s entry-level posi- Waste is a massive by-product of the tions. In Dansk Supermarked we recog- Read more www.dsg.dk retail industry in the shape of packag- nise that this provides an opportunity ing such as cardboard, plastic and for us to contribute to the integrating pallets, as well as food waste. This of disadvantaged groups into society has both financial and environmental through employment. costs. In Denmark, where 66% of our jobs are, Dansk Supermarked wants to improve we have for a number of years actively its waste management procedures sought to provide jobs for immigrants with an aim to create savings, and to and people with a range of disabilities, reduce, re-use or recycle as much as through projects in collaboration with
Dansk Supermarked key sustainability figures 2010
Social performance – safety 2007 2008 2009 2010 Number of full time employees (FTE) number 25,310 25,879 25,635 26,104 Lost time injury frequency (LTIF) frequency 13.76 12.83 14.10 13.53 Fatalities number 0 0 0 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 242 176 191 199 CO2 – direct and indirect 1,000 tonnes 242 176 190 198 Economic performance Revenue USD million – 11,435 a 10,683 a 10,537
– = Not available a Revenue is restated due to new financial regulations for other income.
A.P. Moller - maersk group Other businesses Sustainability Report 2010 80
Maersk Container Industry develops and supplies reefer containers, reefer machines and dry containers for global sea transport. Through innovations in design and technology we contribute to lowering the environmental impacts of global trade.
The significant drop in demand during Addressing our own impact “Even though we have achieved a reduc- 2009 continued in the first quarter of During 2010 we worked to reduce con- tion of 16%, we are still not where we 2010. Maersk Container Industry used sumption of electricity, water, fuel and want to be and improvements will con- this time to upgrade our production waste from production, and significant tinue during 2011,” says Peter K. Nymand, facilities and sustainable innovations. reductions were achieved compared CEO of Maersk Container Industry Group. with targets set, and new targets were Fortunately, global demands for our set for 2011. In addition, we initiated At our production facilities in China, products has picked up strongly. We projects to reduce emissions of volatile we provide ongoing safety training for have been able to respond to this fast, organic compound (VOC) by using our employees about, among others, benefitting from our earlier decision to water-based paint for surface treat- materials used in production, personal only scale down and not close down ment of containers. The projects will be protective equipment, safe working production. Consequently we have continued in cooperation with poten- processes, analysis of dangers at work re-established our workforce, partly tial suppliers and customers in 2011. stations, safety in leadership, regular by new recruitment. knowledge sharing meetings, etc.
Our industry still has work to do in con- Safety counts We undertake workplace assessments vincing customers that sustainability Safety continues to be a main focus and campaigns based on the most fre- is the way ahead. Still, during 2010 our area for Maersk Container Industry. In quent type of incidents. Safety issues sustainability focus offered us new 2010 our lost time incident frequency are evaluated on a daily basis at senior business opportunities and differenti- (LTIF) was 1.88 compared with 2.24 in management meetings for further ated us from competitors. 2009 – a reduction of 16%. improvements.
A.P. Moller - maersk group Other businesses Sustainability Report 2010 81
In 2010, in collaboration with external manufacturing of more than 65,000 consultants and the Danish embassy tonnes annually. targets 2011 in Beijing, we completed a middle- management training programme at • Recyclable plastic flooring of CO2 Reduce 20% – from 0.14 to our Dongguan facility based on find- dry containers – Maersk Container 0.11 kg/USD ings from audits conducted in 2009. Industry has developed plastic Energy Reduce 16% – from 0.58 to 0.49 GJ/1,000 USD The programme focused on safety flooring as a sustainable alternative Water Reduce 17% – from 0.64 to awareness, people management and to hardwood floorboard. The plastic 0.53 m3/1,000 USD corporate social responsibility. flooring is made of recycled low-grade Waste Reduce 18% – from 24.8 to plastic plus wood fibres. During 2010 20.4 kg/1,000 USD we conducted full-scale pilot tests Sustainable product with satisfactory results and the offerings new 100% recyclable product will be In 2010, Maersk Container Industry mass-produced from 2011. with Damco and Maersk Line, Limited worked to design, produce and market (Maersk Line’s US sister company), products that reduce the environmen- • AV+: Lower energy use with with Intermodal Structures, a US tal and climate change impacts from smart ventilation – By measuring modular building company. The part- the use of containers. These are: the CO2 concentration inside the nership revolves around a new concept container and thereby ensuring for housing containers. • Container insulation with nearly correct ventilation, it is possible to no ozone depletion – Containers decrease the use of energy used for The modules can be shipped like traditionally use an ozone-depleting cooling of container contents dur- freight containers and then configured substance for insulation. Since Feb- ing transport considerably. Maersk into one or two-storey schools, military ruary 2010 all Maersk Container In- Container Industry has developed a barracks, offices or medical centres. dustry’s reefer containers as well as control unit for this purpose, which They are well suited for locations reefer machines use our new insula- has been in production since 2009. where conventional construction is not tion product, SuPoTec® (Sustainable The market uptake on this product is feasible or practical. We are investigat- Polyurethane Technology), which is progressing, albeit slowly. ing the use of these for assistance in almost ozone neutral. Measured at disaster areas like earthquakes and 2010 production levels, SuPoTec® relief aid, etc. as well as military use. has reduced global CO2 emissions New use of dry containers by 660,000 tonnes annually and Finally, Maersk Container Industry has Read more www.maerskbox.com local CO2 reduction during container entered into partnership, together
Maersk Container Industry key sustainability figures 2010
Social performance – safety 2007 a 2008 2009 2010 Number of full time employees (FTE) number n/a n/a 3,138 4,105 Lost time injury frequency (LTIF) frequency n/a 3.34 2.24 1.88 Fatalities number n/a 0 0 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq n/a 44 69 152 CO2 – direct and indirect 1,000 tonnes n/a 43 37 72 Economic performance Revenue USD million n/a 26,846 b 270 689 n/a = Not applicable a Maersk Container Industry reported b Figure reflects total revenue for container business, which – = Not available under Maersk Line in 2007. at this point also comprised Maersk Contaioner Industry.
A.P. Moller - maersk group Other businesses Sustainability Report 2010 82
Odense Steel Shipyard is, after nearly 100 years of shipbuilding activi- ties, currently working to finalise remaining ship orders, while building up an industrial park to take over the area in full in 2012.
The Odense Steel Shipyard will cease Our efforts to remedy the impact of ATTRACTING NEW ACTIVITies shipbuilding when the last order is the redundancies follow two separate Lindø Industrial Park has, since its estab- delivered in 2012, and in 2010 the tracks: lishment in second half of 2009, been shipyard has continued to down-size working on attracting companies to rent its staff according to plan. 1. Efforts to attract new activity to the facilities at Lindø. By the end of 2010, area, thereby increasing available Lindø Industrial Park has entered into The main sustainability challenge for jobs. These efforts are primarily contracts with 25 companies, occupy- Odense Steel Shipyard is reducing carried out by Lindø Industrial ing 20% of the Lindø facilities and with the impact of redundancies on the Park, a division of Odense Steel activities generating about 600 jobs. local community and the individual Shipyard. employee. 2. Efforts to help the individuals who FINISHING THE During 2010 the yard reduced its staff are made redundant. These efforts NEWBUILDING ORDERS at the Lindø facilities according to plan. are primarily carried out by Lindø At the shipyard, the main priorities are The number of employees was reduced Shipyard, also a division of Odense to fill the last orders in a safe and secure from 2,300 to approximately 1,000. Steel Shipyard. manner, and to help the people who are
A.P. Moller - maersk group Other businesses Sustainability Report 2010 83
made redundant, by assisting in prepar- Odense Steel Shipyard has made ing for new employment, and by creat- agreements with local unions for targets 2011 ing awareness of the highly-qualified extended leave for developing CVs, staff now available in the job market. re-training and additional compensa- Electricity 30,000 MWH tion. Together with local authorities, Water 50,000 m3 “In spite of the insecurity stemming job centres has been established at Fuel 200 tonnes Waste 6,000 tonnes from the imminent closing of the yard, the yard to ease the employees’ job- VOC 160 tonnes our people made the same great effort seeking process. With public re-training LTIF Zero in 2010. Our customers and other institutions, special courses forthe stakeholders have remarked on this, employees have been developed to and both management and the Board upgrade qualifications. SMALLER AND SAFER The number of work related injuries “We are looking at 2,300 Lindø employees, and decreased during 2010. However, the around 1,000 working for local suppliers, who will number of exposure hours decreased at an even higher rate, causing an in- be out of a job. This will obviously have a huge effect on crease in LTIF. The main reason for the the economic and social fabric of the local community.” lower number of injuries is that as the Johnny Voss, Senior General Manager HSSE/CSR at Odense Steel Shipyard workforce is reduced and the most ex- perienced workers remain at the yard. Also, the safety functions are able to of Directors are very appreciative of the Lindø has helped public authorities to follow up on each of the injuries much commitment shown,” says Peter Jann apply to the EU for substantial support more closely, allowing for improved Nielsen, CEO of Odense Steel Shipyard. for re-education from the EU’s Globali- assessment of the injury and sub- sation Fund. sequent offering of alternative work while the effects of the injuries last. CONTINUOUS EFFORT TO HELP In 2010 Odense Steel Shipyard also ran “We depend on each other to a greater On the issue of help to individuals a campaign to draw attention to the extent, now that the workforce is who are made redundant, Odense availability of our highly-qualified staff much smaller,” says Søren Rask, Head Steel Shipyard has an extensive and and to create awareness of the general of Safety at Odense Steel Shipyard. constructive cooperation with various need for job creation in the region of public authorities, whether on local, Funen, where Odense Steel Shipyard is Read more www.oss.dk regional, state or EU level. located.
Odense Steel Shipyard key sustainability figures 2010
Social performance – safety 2007 2008 2009 2010 Number of full time employees (FTE) number 6,262 4,939 4,546 1,787 Lost time injury frequency (LTIF) frequency 57.00 42.11 18.06 29.86 Fatalities number 0 0 1 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 34 92 62 48 CO2 – direct and indirect 1,000 tonnes 34 80 56 37 Economic performance Revenue USD million – 1,005 789 504
– = Not available
A.P. Moller - maersk group Reporting principles and assurance Sustainability Report 2010 84
Sustainability accounting principles
This report has been prepared in accord- all business units are obliged to provide • Owned assets which are leased out: ance with the Global Reporting Initia- explanation sheets on significant the Group is not liable for consump- tive’s (GRI) G3 Sustainability Reporting developments in data. tion and emissions – the lessee is. Guidelines, and has independently been verified by Det Norske Veritas to be con- From 2011 and onwards the audit • Leased-in assets which the Group sistent with an application level of C+. committee have decided, that the uses: the Group is liable for consump- sustainability reporting will be included tion and emissions – the lessor is not. An overview of all GRI standard dis in the framework used to assure risks closures and the corresponding UN and controls for the financial report- Technical management of an asset on Global Compact principle covered in ing (the socalled “EuroSox”, Financial behalf of third parties does not make this report can be found at Statements Act §107b). the Group liable for the consumption www.maersk.com/sustainability and emissions. Consumption and emissions belong to the asset owner/ The sustainability accounting principles Scope lessee, who decided to have produc- for 2010 have been changed, whereby The Group has applied a series of basic tion with this asset in the first place scoping, consolidation and definitions scoping principles to minimise the – and just happened to hire the Group’s have been aligned across the Group and risks of double-counting and lack of skilled personnel. If material, the busi- with the financial reporting. To gain con- counting. The most important change ness unit may include the emissions sistency in comparison figures, 2009 is that sustainability reporting now ap- as explanations in the text. Scoping for figures have been re-collected in light of plies financial control criteria for what health and safety follows the above, the new, updated and aligned policies. is in and out of our direct responsibility unless the contract with the lessee and thus follows the principles of makes the Group liable for the work The data collection process has been financial accounting. environment on leased-out assets or made stronger. Reporting tools are lessor liable for the leased in assets. validated via IT audit, and manuals The basic scoping principles also cover and online training are in place. A set of which assets are to be included in the Regarding greenhouse gases, the re- general accounting principles for sus- consumption measurements. The porting must be compatible with the tainability has been established, which base principles for scoping on owned Greenhouse Gas (GHG) protocol which defines the reporting rules, processes and leased ships, rigs, trucks, etc. are operates with three scopes covering and responsibilities. A controlling as follows: direct emissions from own assets (so- guideline has been established to se- called scope 1 in GHG protocol termi- cure business units’ own assurance of • Owned assets which the Group uses: nology), indirect emissions from the submitted data, before sign off by the the Group is liable for consumption energy used for producing electricity respective CEO and CFO. Furthermore, and emissions and district heating, which the Group
A.P. Moller - maersk group Reporting principles and assurance Sustainability Report 2010 85
buys (scope 2) and Indirect emissions of the Group’s sustainability indicators. from third party activities related to But at the same time it is also recog- full sets of data the Group’s business i.e. supply chain nised that some data are more difficult available online including customers and suppliers in- to document than others. In these cluding outsourced activities (scope 3). cases, the data are assumed and justi- In this report we only include data on a fied in an elaborated format, whereby few, select key performance indicators Within the current group-wide climate the assumptions can be traced. This is for each business unit. Full sets of data, change policy we report only on scope what we call probable data. both consolidated and at the business 1+2 when it comes to reporting our unit level can be found on our website: GHG emissions. A business unit can Documented data comprise: www.maersk.com/sustainability. choose to comment on scope 3 GHG • Our employees emissions. However, these data are not • Energy consumption part of the assured data set. • Other air emissions • Steel consumption • Oil extraction General notes for data Consolidation • Financial data The data are collected per legal entity • All figures for 2009 have been re-col- per activity. And given regular consoli- Probable data comprise: lected, re-consolidated and assured. dation principles from the financial • Health and safety • Number of employees measures consolidation principles, the figures are • Waste average number of full-time employ- consolidated line-by-line. • Water consumption ees (FTEs) excluding jointly-controlled • Spills entities and discontinued operations. Subsidiaries, in which the Group has • Anti-corruption training • Employee engagement reflects the full control, are included 100%. Joint percentage of engaged employees ventures, in which the Group has joint who participated in the annual en- control with the counterparts, are in- Emmission conversions gagement survey. Engagement is the cluded by proportionate consolidation. The GHG emissions are calculated indi- combination of satisfaction, pride, Associated companies and other com- rectly via conversion factors for energy referral and intent to stay in the or- panies are defined as entities in which consumption and other air emissions. ganisation. the Group does not have control, thus • The percentages for performance the data is not included. A supplemen- The Group has calculated the GHG appraisals are based on headcounts, tary advantage of using the financial emissions based on various official not FTEs. consolidation principles is that the sus- conversion factor schemes including • Lost time injury frequency measures tainability indicators can be compared standard assumptions of emissions, the number of lost time injuries ex- directly with the financial data. content and flare efficiencies. cluding fatalities per million exposure hours. A business unit can choose to show The principles for choosing among the • TRCF = Total Recordable Case Fre- data given operational control, but in schemes are: quency the consolidation for the Group, the • Newest schemes are preferred • In 2007 and 2008 different conversion financial control scoped data are used. • International recognised generic factors and fuel oil sulphur content schemes are preferred have been applied across the years • Specific branch schemes can be and across various activities. For 2009 Definitions included when not in conflict with and 2010 conversion factors and fuel The Group has defined two categories the above oil sulphur content have been updated of data; documented and probable • A scheme must always be used in full, and aligned across years and activities. data. The reason for the split is that the thus no combined schemes are al- • Particulate matters are calculated on Group wishes to be able to declare, that lowed unless specific elements were heavy fuel. the data provides a true and fair view not included in the primary scheme.
A.P. Moller - maersk group Reporting principles and assurance Sustainability Report 2010 86
Assurance statement
A.P. Moller - Maersk (‘APMM’ or ‘the Group’) asked Det Norske Veritas Materiality: Good. During 2010 APMM has continued to systematically (‘DNV’) to verify the 2010 Sustainability Report (‘the Report’). APMM is en- map out and prioritise those sustainability issues most significant to the tirely responsible for the content of the Report. DNV’s responsibility is to Group and its stakeholders. The results have helped define the strategic APMM’s management only and according to the terms agreed. This state- direction of the sustainability work, strengthened staff competencies, ment is intended for APMM management and broader stakeholders. and informed the focus and content of this Report. Responsiveness: Acceptable. The Report clearly sets out the govern- Scope of assurance and limitations ance structure, strategy and systems for managing sustainability issues DNV verified the Group-level activities, statements and sustainability across the organisation. The Report reflects improved responsiveness to performance data reported for January-December 2010. We reviewed specific stakeholder concerns raised through the media or surveys. the full year Group-level, consolidated performance data for 2010 as well Reliability: Good. Within the scope of our assurance defined above, as the re-stated data for 2009, by tracing the data one level down to the and in accordance with AA1000 Type 2, moderate level assurance re- consolidated data submitted by each business unit. The scope of work quirements, we conclude that the specified performance information did not include verifying the accuracy of the activity data collected from presented in the Report is reliable. Information in the Report is presented individual legal entities within each business unit. so as to allow comparison of year-on-year performance, with clear indica- tion where improved data auditing has resulted in corrected data. DNV We evaluated the Report’s adherence to the three Accountability Prin- finds that the current data collection process and reporting tool (incl. ciples (Inclusivity, Materiality and Responsiveness) and the reliability of related calculation tools) are robust and fit for purpose, and we believe specified sustainability performance information, as required for a Type they are likely to yield consistent data of good quality over time. 2, moderate level of assurance in AA1000 Assurance Standard 2008 (‘AA1000AS 2008’). We also evaluated adherence to the principles of Additional principles Completeness and Neutrality, as set out in DNV’s Protocol for Verifica- Completeness: Acceptable. Within the reporting boundary and scope tion of Sustainability Reporting. We did not verify the financial-economic defined by the Group, we conclude that the Report does not omit infor- performance data reproduced from the certified financial accounts, nor mation that would significantly influence stakeholders’ decisions or that interview any external stakeholders. Our verification took place between reflects significant sustainability impacts for the Group during 2010. The November 2010 and February 2011. re-stated data for 2009 did not reveal a substantially different picture to its original publication. Verification methodology Neutrality:Good. The information contained in the Report is balanced We planned and carried out the work in accordance with the AA1000AS and presented in an overall neutral tone. Dilemmas and challenging situa- 2008 and DNV’s Protocol for Verification of Sustainability Reporting. tions are presented together with commitments to future improvements. Through on-site verification of data, reporting tools, documents and interviews, we challenged the statements made in the Report and Opportunities for improvement evaluated the mechanisms for implementing the Group’s sustainability- The following is an excerpt from the observations and opportunities re- related policies and the robustness of the underlying data management ported back to the management of APMM. They are generally consistent system, information flow and controls. We interviewed 44 management with management objectives already in place. staff at Group Head Office and at offices of five Business Units selected • APMM should follow up on the implementation of the Group Sustainability by APMM (Denmark: Maersk Tankers, Maersk Supply Service, Svitzer; General Accounting Principles when conducting internal revisions and busi- Benelux: APM Terminals, Safmarine). ness reviews within the individual business units and underlying entities. • Having achieved a more reliable data set for GHG emissions, APMM Conclusions may wish to consider a recalculation of the baseline year for measur- In DNV’s opinion, the 2010 Sustainability Report provides a fair and ing its emissions reductions. credible representation of APMM’s overall sustainability performance • APMM is now in a good position to select and establish targets for a and application of the AA1000 Accountability Principles. The Report wider set of key performance indicators to enhance future measure- describes the sustainability issues that are most important to the dif- ment and reporting of performance. ferent business areas as well as the response from local management and at Group level. The quality of environmental and safety data has DNV’s competence and independence increased significantly due to the new procedures for data collection, DNV provides sustainability risk management services through quali- consolidation and internal control. The information is presented in a fied specialists worldwide. DNV was not involved in the preparation of way that will help stakeholders make informed decisions about the any statements or data included in the Report except for this Assurance Group’s sustainability performance. Statement. DNV maintains complete impartiality towards people inter- viewed during the assignment. We confirm that the Report meets the requirements of GRI’s 2006 Sus- tainability Reporting Guidelines’ Application Level C+. For Det Norske Veritas AS,
We evaluated adherence to the following principles on a scale of ‘Good’, ‘Acceptable’ and ‘Needs Improvement’: Dr Helena Barton Jens Peter Høiseth Lead Verifier Key Customer Manager AA1000 principles Inclusivity: Acceptable. APMM has strengthened its approach to iden- Copenhagen, 17 February 2011 tifying and engaging with stakeholders and considering their input in its management and reporting of material stakeholder concerns. Coverage and competence in stakeholder engagement appear to have improved across key parts of the organisation.
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A.P. Moller - Maersk Esplanaden 50 1098 Copenhagen K Denmark Att: Group Sustainability
Email: [email protected] Telephone: +45 3363 3522 www.maersk.com/sustainability
Forward-looking statements The report contains forward-looking statements on expectations regarding the achievements and performance of A.P. Møller - Mærsk A/S and the A.P. Moller - Maersk Group. Such statements are subject to risks and uncertainties, as various factors, many of which are beyond A.P. Møller - Mærsk A/S and the A.P. Moller - Maersk Group’s control, may cause actual results and development to differ materially from expectations contained herein.
Print This publication is printed by KLS Graphic House, carbon neutral printer, on Galerie Art Matt
Editors Marie Damsgaard Susanne Nielsen
Contributing writer Eva Harpøth Skjoldborg
Design and layout e-Types & India
Printed in Denmark 2011 2010
the course Setting The A.P. Moller - Maersk Group’s - Maersk Moller A.P. The Sustainability Report
A.P. Moller - Maersk Group Sustainability Report 2010