Global Business – Global Challenges

The A.P. Moller - Maersk Group’s Sustainability Report 2 011

Global business – Global challenges 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. A.P. Moller - Maersk Group

Material issues

MATERIALITY IN A used in the development of our Group ten principles for responsible CONGLOMERATE Sustainability Strategy, launched in business practice a step further. For a conglomerate as diverse as 2010. We monitor material issues Maersk, a Group-level assessment of on an ongoing basis through general 3. The 2011 GlobeScan reputa- materiality cannot cover all material trend spotting, media monitoring, tion survey – which provides a issues faced by individual business stakeholder engagement and view on Maersk and our key sus- units. Our approach is to have a internal reviews. We also review our tainability impacts from a group of Group-level materiality assessment material issues when preparing our 1,357 internal and external stake- and provide guidance for all business sustainability report. We have chosen holders from around the world. units to complete individual assess- to base our analysis of material issues ments of their prioritized issues. to cover in this report on four distinct 4. The UN Millennium Develop- Some businesses have completed sources that provide insight into key ment Goals – these provide their materiality assessments or issues across the Group: a broader view on worldwide identified priority issues as part of challenges and guide how we can their sustainability strategy develop- 1. The Maersk Sustainability align our strategy and operations ment process. The issues identified Strategy – which reflects the to contribute to tackling some of are reflected in the business unit per- commitment of Maersk’s Execu- these challenges. formance section on pages 48-71. tive Board to sustainability. We realise that there are sources and GROUP-LEVEL MATERIALITY 2. The UN Global Compact viewpoints we do not consider. Yet, ASSESSMENT Blueprint for Corporate Sus- we find that this approach provides Our first Group-level materiality re- tainability Leadership – which the best illustration of the issues that view was completed in 2009 and was takes the UN Global Compact’s are material to the Maersk Group.

Sustainability timeline

Environmental Membership of First Group Sustainability Group Sustainability Strategy approved 2010 Sustainability Report published First Annual Executive Strategy Global Compact signed Report published (2009) Sustainability Day Global Labour Principles launched Member of the Logistics Emergency Teams (LET) – focus on Safety

Group Accounting Responsible Procurement Maersk Sustainability Principles implemented Programme launched Reporting Guidelines

2008 2009 2010 2011

Globescan Group Health and Reputation Survey Safety Strategy conducted approved

First HSE Report First Group HSSE Report Anti-Corruption Member of WEF First Annual Group Member of UN Global Compact LEAD Second Annual Group Climate Change Programme launched Sustainability Conference Sustainability Conference Strategy approved Whistleblower Programme launched

Partnerships Reports published Strategies Internal Programme or Initiative launched Other events Sustainability Report 2011

Material issues

Materiality Material issue at Group Level Our Response Page reference reference

Safety Health and safety strategy Page 28 Executive Board safety day Page 27

Business conduct and governance Sustainability governance Page 23 Responsible procurement Page 47 Responsible lobbying Page 25 Anti-corruption Page 45 Accountability and transparency Page 72

Environmental impact and climate change Environmental risk review Page 43 Climate change strategy and target Page 41

Human rights Human rights framework Page 33

Labour standards Global Labour Principles Page 36 Diversity Page 38

Sustainable economic development Business investments Pages 13-20 Maersk disaster response programme (part of LET) Page 34 Strategic donations programme Page 35

Maersk Sustainability Strategy 2010-2013 (based on materiality assessment conducted in 2009) GlobeScan reputation survey from August 2011 UN Global Compact LEAD Blueprint and Advanced Level Criteria UN Millennium Development Goals

Group Accounting Responsible Procurement Maersk Sustainability Principles implemented Programme launched Reporting Guidelines

2008 2009 2010 2011

Globescan Group Health and Reputation Survey Safety Strategy conducted approved

introduction Company profile ...... 4 Executive Board ...... 6 Foreword by the Executive Board ...... 7 About this report ...... 8 Our size and reach makes us an Group consolidated performance ...... 11 enabler of global trade and opens up Global business – global challenges the possibility of assisting long term economic development . Delivering value for the long term ...... 13 Pages 13 – 19 Group Performance Group Sustainability Performance ...... 21 Health and safety ...... 27 Human rights ...... 33 Labour principles ...... 36 Environmental stewardship ...... 40 Safety continues to be our top Anti-corruption ...... 45 priority and our new safety strategy Value chain ...... 47 facilitates knowledge sharing across business unit performance the Group to minimise accidents . Introduction ...... 49 Pages 27 – 32 Container activities Maersk Line ...... 50 Damco ...... 52 Oil and gas activities Maersk Oil ...... 54 Terminal activities Our recent framework for Human APM Terminals ...... 56 Rights outlines our approach to Tankers, offshore and other shipping activities managing compliance with UN Maersk Tankers ...... 58 guiding principles. Maersk Drilling ...... 60 Pages 33 – 35 Maersk FPSOs ...... 62 Maersk Supply Service ...... 64 Svitzer ...... 66 Retail activity Dansk Supermarked ...... 68 Other Businesses Maersk Container Industry ...... 70 We have set a new Group wide CO2 reduction target, steering us towards accounting principles and assurance a lower carbon future . Sustainability accounting principles ...... 72 Pages 40 – 44 Assurance Report ...... 74 UN Global Compact LEAD – Covering the Blueprint Dimension 2 and 3 . . 76

A P. . Moller - maersk group Introduction Sustainability Report 2011 4

Company profile

1 MAERSK OIL MAERSK DRILLING

3 5 2 MAERSK LINE MAERSK TANKERS

APM TERMINALS SVITZER

6 MAERSK SUPPLY SERVICE 7 MAERSK FPSOs 4

9 11

1 Maersk Line 2 Maersk Oil 3 Maersk Drilling 4 APM Terminals 5 Maersk Tankers 6 Maersk Supply Service 7 Maersk FPSOs

The A .P . Moller - Maersk Group (Maersk) More than 1,000 companies, operating a large share of the world’s products is a worldwide conglomerate headquar- under a variety of brands, make up the around the globe . tered in Copenhagen, Denmark . We A .P . Moller - Maersk Group . The major operate in more than 130 countries, ones are displayed in the graphic above We are also prominent in the explora- employing approximately 117,000 and we report on these in the last tion, extraction and transportation of people . pages of this report . A more extensive oil and gas, which provides the energy list of companies can be found on our needed to support global trade . Our consolidated revenue in 2011 was Group website, www .maersk .com and US $60,230 million, returning a profit in our annual financial report . after tax of US $3,377 million . Read more www.maersk.com/investorrelations We are the world’s largest container A .P . Moller - Maersk is a Group of busi- shipping operator and together with nesses with core focus on shipping our tanker and logistics businesses and and oil & gas . portside container terminals, we move

A P. . Moller - maersk group Introduction Sustainability Report 2011 5

1 MAERSK OIL MAERSK DRILLING

3 5 2 MAERSK LINE MAERSK TANKERS

APM TERMINALS SVITZER

6 MAERSK SUPPLY SERVICE 7 MAERSK FPSOs 4

9 11

8 Svitzer 9 Damco 10 Maersk Container Industry 11 Dansk Supermarked

Cash outflow and revenue distribution 2011

Cash outflow distributed by stakeholder group Revenue split on regions

Suppliers Our revenue flows from all parts of the world and our 5 Employees 12 14 (salaries) Europe & Eurasia activities enable trade and production in places we do Shareholders 15 Asia & Pacic 8 (dividends) business . This helps to drive Percentage Percentage 46 Middle East 55 Public sector economic growth by genera 9 Americas (taxes) 14 ting wealth, creating jobs and Africa 9 Investments (net) paying taxes, both directly 13 Repayments of and indirectly as seen in the borrowings graphic .

A P. . Moller - maersk group Maersk’s Executive Board holds ultimate responsibility for sustainability matters and sustainability decision making. Safety features on the agenda of Executive Board meetings. In November 2011 the Board took part in the first ever Executive Sustainability Day, which focused on safety (page 27).

The Executive Board functions Nils S. Andersen, Group CEO Søren Skou, CEO of Maersk Tankers as the day-to-day management Trond Westlie, Group CFO Claus V. Hemmingsen, CEO of Maersk Drilling and of the Group and consists of: Kim Fejfer, CEO of APM Terminals Chairman of the Group Sustainability Council Jakob Thomasen, CEO of Maersk Oil Introduction Sustainability Report 2011 7 foreword by the executive board

Our basic assumption and experience is that we increase our attractiveness and competitiveness by integrating sustainability in our efforts to create strong financial results.

Fuelling Our basic assumption and experience aspiring to hold a leading position in is that we increase our attractiveness sustainability . sustainable growth and competitiveness by integrating sustainability in our efforts to create This programme challenges us to Global trade flows are shifting in favour strong financial results . We have take our efforts even further . We will of the emerging growth markets, where gained valuable insights from our fulfil this engagement by working the Maersk Group already has a strong initiatives, for example on the envi- efficiently and with determination to presence . Almost one third of the Group’s ronmental side, where our approach set new, higher standards, not only for revenue and a little more than half of to emissions reduction has not only ourselves but also for the industries in the Group’s profits are created in growth benefited us but also our customers, which we operate . markets . With increasing investments in and we will continue to reach out and new terminals in Africa, Asia and Eastern engage in constructive collaborations Our core business and sustainability Europe, in new vessels and in oil licences, across industries . efforts go hand-in-hand . It is not only we are well positioned for this new global part of our values; it is in our own situation and to benefit from growing THE SAFETY IMPERATIVE interest to deliver efficient, sustain- demand for our main products and Safety is another issue which is both able solutions to our customers and services in the developing world . challenging and at the top of our partners, thus enabling growth and agenda . This year, we held our first Sus- development of businesses as well as LONG TERM DEVELOPMENT tainability Day for executives, where societies . Our commercial success and growth the subject was safety . are closely linked to the continued development of societies in growth mar- Many years of ongoing efforts and kets, including social improvements . improved performance have resulted We benefit from increasing and more in a strong safety culture in our Group . widely spread wealth in these markets . However, it is with regret that we still A stable political situation is also im- see fatalities within our business . This portant both for local businesses and year, 15 people lost their lives in work global ones such as ours . related accidents; every single one being unacceptable . We will continue to We recognise that there are challenges focus on safety until we reach our goal related to the creation of long term of zero fatalities . Executive Board sustainable development in growth A.P. Moller - Maersk Group markets, such as increased resource COMMITTED TO EXCELLENCE use, protection of human rights and Our approach to sustainability is no dif- climate change . We focus on doing ferent from our approach to the rest of business in a responsible manner, our business – we strive for excellence not least enabling local businesses to in all we do . In 2011, we were invited to expand and take responsibility for their join the UN Global Compact LEAD pro- people and their environment . gramme, an initiative for companies

A P. . Moller - maersk group Introduction Sustainability Report 2011 8 About this report

With this our third sustainability report we intend to provide our stakeholders with a balanced account of our performance and position on issues that are material to Maersk.

A NEW REPORT STRUCTURE Business unit performance – gives a following a long-planned closure pro- In response to the LEAD reporting brief summary of sustainability activi- gramme and is now being converted requirements, we have adopted a new ties and performance within our main into an industrial park . During 2011, structure for our Sustainability Report business units (pages 48-71) . the sale of our liquid gas shipping com- for 2011 . This year’s report has three pany, Maersk LNG, was announced . main sections: The reporting period is 1 January to 31 The sale will be completed in 2012 and December 2011 . The report describes data for LNG are still included in the Global business – global challenges our activities at Group level and for scope of this report . – explores how Maersk is positioned the following five segments: Con- to respond to the risks and opportuni- tainer activities, Oil and gas activities, 2011 also saw the announcement ties that global sustainability issues Terminal activities, Tankers, offshore to integrate the management and and megatrends present to the Group & other shipping activities and Retail support functions of Safmarine into (pages 13-20) . activity . Maersk Liner Business . Safmarine will

Group sustainability performance – reports on Group level performance and progress in programmes and com- “ We believe we have a duty of care to ensure all of mitments . This is done in relation to our employees are safe at work wherever we UN Global Compact LEAD dimensions operate, regardless of financial control or leasing 1 and 4 in the blueprint for Corporate Sustainable Leadership and is struc- arrangements .” tured around the eight main themes annette Stube, Head of Group Sustainability of the Global Compact Advanced Level criteria . Dimensions 2 and 3 and the UN Global Compact principles are covered Compared to our 2010 Sustainability still operate as an independent brand by the table in the back of this report . Report, we no longer report separately within the Maersk Liner Business More information can be found at www . on Odense Steel Shipyard, which has portfolio . More details are available on unglobalcompact .org (pages 21-47) closed down its shipbuilding activities www .maerskline .com and

A P. . Moller - maersk group Introduction Sustainability Report 2011 9

www .safmarine .com . Safmarine pages the sustainability performance . The are reported as part of Maersk Line’s change in our reporting scope last year FRAMEWORKS, GUIDELINES pages, as last year (see page 50) . coincided with the transfer of certain AND STANDARDS data processes to our Group Account- SCOPE OF DATA ing department, which continues to The report also fulfils our obligation to The text in this report covers activities improve the quality of these data . provide Communication on Progress at Group level and for the business (CoP) to the UN Global Compact . As units listed above, while consolidated Safety and oil spills are reported on members of the UN Global Compact data include all Maersk activities . operational scope . This is because we LEAD programme, the report accounts believe we have a duty of care to ensure for Maersk’s efforts to implement the For the second year, the majority of all of our employees are safe at work Global Compact Blueprint for Corporate data in this report are based on a finan- wherever we operate, regardless of Sustainability Leadership . This includes cial scope . We changed our approach financial control or leasing arrangements . responding to the 24 criteria of the to data reporting from operational to However, although the overall principle Global Compact Advanced Level and re- financial scope to establish a clear link for the group figures is financial control, sponding to a further 20 criteria showing between our business activities and BUs may have relative targets based how LEAD participants are supporting financial performance and our sustain- on operational scope . Such targets are broader UN goals and engaging with the ability performance . The overall con- presented in the BU pages of this report UN Global Compact . The index on page solidation principle is financial control: and where this occurs it is marked by a 76 shows where this information can Where the Maersk Group has full or joint footnote in the BU target table . be found . financial control we measure and report on our sustainability performance, and Data comparability This report also follows the GRI Guide- consolidation is done accordingly . The addition of 2011 data means we now lines on sustainability reporting and cov- have three years of data reported by fi- ers the AA1000 Accountability principles This principle also defines how we nancial scope . Operational scope data are standard . More details can be found on report sustainability performance reported for the Group for 2011 and also pages 72 . for owned and leased ships, rigs and retrospectively for 2010 in cases where trucks . With owned or leased-in assets data were only reported by financial scope that are used by the Group, the Group in last year’s report . Where improved data is liable for consumption, emissions have been received for 2009 and 2010 and other sustainability performance these have been re-stated . Additional data . For owned assets that are notes on our sustainability accounting ap- leased out, the Group is not liable for proach can be found on pages 72-73 .

A P. . Moller - maersk group Introduction Sustainability Report 2011 10

Responding to 2010 assurance recommendations from DNV

Assurance recommendation Maersk action Page reference

Maersk should follow up on the implementa- Group Internal Audit will have sustainability on their agenda from 2012, N/A tion of the Group Sustainability General when they conduct their EuroSox Risk, Control and Compliance (RICC) audits Accounting Principles when conducting with our business units . The Board's Audit Committee has approved of this internal revisions and business reviews within development . the individual business units and underlying entities .

Having achieved a more reliable data set for We have established a new climate strategy that includes a GHG target to Page 41 GHG emissions, Maersk may wish to consider 2020 . The revised baseline for the target is 2010 . a recalculation of the baseline year for measuring its emissions reductions .

Maersk is now in a good position to select We have set a new GHG target to 2020 and established a target for responsible Pages 41,47 and establish targets for a wider set of key procurement . As the roll out of our sustainability strategy continues we will performance indicators to enhance future continue to expand measurement and targets . measurement and reporting of performance .

Supporting business units to improve stake- We are working with business units to develop a common approach to stake- Page 22 holder engagement – including best practice- holder engagement . This will include stakeholder engagement tools and guid- sharing and customer engagement . ance on other elements of stakeholder engagement, including good practice sharing across business units .

Address messages from reputation assess- The conclusions from the survey suggest to link our sustainability efforts Page 25 ment survey . closer to innovation efforts and supporting long term economic growth when opening new markets . The Group strategy takes account of this through a workstream on sustainability as a source of innovation in high-growth markets .

Use the outputs from the CEO reviews and Our new sustainability dashboard will monitor quarterly business unit integra- Page 22 continue to monitor business unit materiality tion of sustainability in line with the Group sustainability strategy . outputs / KPIs . Five CEO reviews were piloted in 2010 and 2011 and a full schedule of CEO Page 23 and peer reviews will start in 2012 .

Conduct stakeholder engagement outside We conducted a GlobeScan survey of stakeholders in multiple countries in Pages 25,78 Denmark . 2011 . We are also involved in a range of UN Global Compact workstreams and are promoting business units to engage with UNGC local networks .

Capture employee turnover and redundancy We are unable to capture these data at Group level because we have many N/A data . different human resource systems that operate at business unit level . The development of a Group wide HR system is underway and when completed will allow these data to be captured .

Support business units on human rights risks . Human rights risk assessments have also been included in our Enterprise Risk Page 33 Management process . In 2011, we conducted a human rights gap analysis and developed a framework for managing human rights issues across the Group .

Ensure implementation of new accounting We have established a new Group greenhouse gas target in 2011 and are Page 41 approach and look to expand range of targets . encouraging business units to set targets as part of the sustainability strategy integration process . Accounting approach has been fully established and a programme of improvements is underway with external consultants .

Reporting of excluded Associate companies According to our accounting policies ”Associated companies” are defined as en- Page 72 where a business unit has management tities in which the Group does not have control; thus the data are not included . control and impacts are significant .

Inclusion of meaningful data on implementa- Improvements in all areas . Pages tion of various policies (anti-corruption, diver- 36, 38, 45, 47 sity, labour and responsible procurement) .

A P. . Moller - maersk group Introduction Sustainability Report 2011 11

group consolidated performance

Social performance a Rosti and Norfolkline Our employees are only partially 2009 2010 2011 included in 2010, Number of full time equivalents (FTE) 120,965 c 113,741 c 117,080 since they were sold Gender (female representation) % 32 c 33 c 32 during the year . The Employee engagement (percentage favorable) b % 67 69 75 data collected until point of sale are FTEs, Performance appraisals (percentage recieved) % 48 60 67 gender-split and Safety safety data . Fatalities d number 13 12 13 a Including Group functions and Environmental performance Odense steel shipyard . Energy consumption b The engagement 2009 e 2010 e 2011 survey does not include The Dansk Su- Fuel oil 1,000 tonnes 11,390 10,724 11,798 permarked Group, Diesel 1,000 tonnes 221 184 181 The Odense Steel Natural gas 1,000 tonnes 472 607 669 Shipyard Group, JV Electricity 1,000 MWh 1,225 f 1,213 f 1,295 companies and blue Energy consumption GJ 498,419,904 g 475,815,229 g 522,487,533 collar workers . c Greenhouse gas (GHG) emissions Group principle on FTEs adjusted to GHG emissions 1,000 tonnes CO2 eq 40,595 37,717 41,059 include JVs acc to Direct GHG emissions (Scope 1 GHG Protocol) regular financial con- CO2 1,000 tonnes 39,272 36,478 39,734 solidation rules . d CH4 1,000 tonnes CO2 eq 398 316 370 Data collected with operational scope . N2O 1,000 tonnes CO2 eq 184 183 194 e Diesel, natural gas, HFC 1,000 tonnes CO2 eq 53 81 65 waste and water HCFC 1,000 tonnes CO2 eq 106 31 30 re-stated due to Indirect GHG emissions (Scope 2 GHG Protocol) incorrect reporting CO2 1,000 tonnes 579f 625f 663 in some entities CH4 1,000 tonnes CO2 eq 0 f 0f 0 and a change to the converter for N2O 1,000 tonnes CO2 eq 3 f 3 f 3 gas to direct energy Other emissions consumption . Emis- g SOx 1,000 tonnes 660 610 663 sions have also been

NOx 1,000 tonnes 919 866 947 re-stated . f VOCs 1,000 tonnes 22 19 19 Reefer electricity consumption at ter- Particulate matter 1,000 tonnes 83 79 77 minals in 2009 and d Category 1 spills m3 3 40 12 2010 was allocated Other resource consumption to the company having reefers at the Steel consumption 1,000 tonnes 202 346 415 terminal . All reefer Waste total 1,000 tonnes 393 424 368 consumption is now – recycled (composting, reused, recycled) 1,000 tonnes 198 271 176 reported by APM – solid (landfill, on-site storage, incineration) 1,000 tonnes 172 133 182 Terminals . 2009 – hazardous (controlled deposit) 1,000 tonnes 23 20 10 and 2010 re-stated accordingly . ERS rail Water consumption 1,000 m3 3,989 2,842 3,311 electricity consump- 1,000 m3 – surface water 36 45 80 tion in Germany re- – ground water 1,000 m3 1,294 236 353 stated for 2009 and – rainwater 1,000 m3 0 0 2 2010 due to omis- – municipal water supplies /water utilities 1,000 m3 2,659 2,561 2,876 sion of reporting . g Converter for SOx for heavy fuel re-stated based on actual Economic performance measurements of sulphur content .

2009 2010 2011 Revenue USD million 48,580 56,090 60,230 Profit for the year USD million -1,024 5,018 3,377 Tax for the year USD million 3,805 4,655 6,060 Electricity cost USD million 194 f 183 f 195

A P. . Moller - maersk group

Global Business – Global Challenges Sustainability Report 2011 13 Delivering value for the long term

Maersk Group is a global conglomerate with operations in over 130 countries. The majority of our activities are in the global transport of goods and global energy supply. This places us at the centre of some of the most pressing global challenges today, revolving around long term sustainable economic growth.

Maersk’s fortunes are linked to the the same period global GDP rose from conducting our business according to trends in global consumption and US $6 .9 trillion in 1960, to US $75 tril- our values and the Maersk Principles trade . We produce the containers that lion2 in 2010 . Global demand for energy of Conduct . Added to this, sustainable carry cargo around the globe and own has increased in line with global growth economic development of communi- the ships, trucks and support services and the availability and affordability ties and societies over the long term to transport them from producer to of energy lies at the heart of economic makes commercial sense because consumer . We run ports and terminals development . successful development provides to handle the cargo and, in Northern further opportunities for our business . Europe, the retail stores to sell it . We Business and beyond It offers a real opportunity to create are also prominent in the exploration, Past and present, these trends have shared value that benefits the nations extraction and transportation of oil and do provide us with huge business that we do business in as well as our and gas, which provides the energy opportunities . Exploring these, Maersk own business . needed to support this development . has become increasingly embedded in global and local infrastructure and One example of how we influence Global trade is mainly driven by popula- development alike, a position which entire sectors is containerised trade . tion growth and economic growth . In offers opportunities for business Today our container business is the 2011 the estimated world population and into setting industry standards, biggest operator within the industry reached seven billion people, having impacting on the welfare of local com- and we play a significant role in the grown from only three billion in 1960 . munities and the environment . global marketplace, connecting suppli- It is estimated that another two billion We acknowledge that impact carries ers with global markets . Around 90% will be added in the next 35 years1 . In responsibility, and we live up to this by of global trade uses sea transport 3 and

1 www .worldometers info/world-population. and UN Department of Economic and Social Affairs/Population Division World Population to 2300 . 2 Goldman Sachs GS Sustain, “The die has been cast: A new age of accelerating consumption, constraints and competition”, April 2011 . 3 www .marisec .org/shippingfacts/worldtrade

A P. . Moller - maersk group Global Business – Global Challenges Sustainability Report 2011 14

over 60% of this is containerised4 . With energy efficient container ships yet the fortunes of a region and provide Maersk Line holding a 16% share of built . Or when Maersk Line introduced jobs for decades to come, enabling global container capacity, we are in a slow steaming in 2008 it quickly belong term economic development . Or good position to set new standards for came clear that this brought not only when Maersk Drilling develops its new how world trade is conducted . economic benefits, but also created XL rigs it is raising standards in drilling, greater reliability for customers and enabling global trade to keep advanc- When Maersk Line invests in the reduced CO2 emissions . Today more ing through secured energy supply . new Triple-E ships (see page 51) it is than 50% of global container shipping introducing new standards for how applies the principles of slow steaming . Long term economic development is trade and supply chains are currently intrinsically linked to our core business, managed, while driving long term eco- Other examples include APM Terminals the sectors we operate in and the nomic growth and delivering the most building a port, which can transform growth markets that we are investing

Latest investments and initiated activities in growth markets

• Poti Terminal, Georgia • Callao Terminal, Peru • Moin Terminal, Costa Rica • Santos Terminal, Brazil • Monrovia Terminal, Liberia • Cai Mep Terminal, Vietnam • Aqaba Terminal, Jordan • Introducing the WAFMAX and SAMMAX vessels • Opening direct Mexico-Europe and Morocco-Russia services • Oil licences offshore, Brazil • Chissonga oil licence, Angola • Two year drilling contract, Angola • Peregrino FPSO into operation, Brazil • Acquisition of NTS International Transport Services, China = Growth markets

4 www worldshipping. .org/about-the-industry/history-of-containerization 5 The Economist, 30 June 2011 (www .economist com/node/18895150).

A P. . Moller - maersk group Global Business – Global Challenges Sustainability Report 2011 15

in . It impacts our strategic priorities development has created enormous can counter long term economic devel- and we impact the speed of growth benefits, including raising the living opment . with our actions . standards of many people in countries around the world . But it is still true The continuing rise in consumption of Shifting trade patterns that many economies are held back by goods and services will drive increasing A more recent trend in global economic poverty and a lack of healthcare and levels of greenhouse gas emissions, growth is that patterns of trade are education . Advancing trade into these and mitigating climate change is a shifting from the OECD nations to economies and connecting them to major global priority . Action to tackle emerging high growth markets . In the the global marketplace is essential to greenhouse gas emissions is needed last five years, these markets have create a virtuous circle where a health- from governments, businesses and been responsible for 80% of GDP ier, better educated population is able individuals alike . growth and overall they represent half to engage in economic development . of global GDP, compared to only one Maersk has set out a new climate third 30 years ago . Trade between Much of the world’s economic develop- change position (see page 41) that emerging economies is also a growing ment over the last half century has recognises the risk that climate change trend, with trade between BRIC na- been linked to oil and gas and these poses to society and our business as tions growing from US $21 .6 billion in fuels have played a huge part in helping well as the need to shift to a lower car- 2001 to US $154 .5 billion in 2009 5 . We countries improve their standard of bon economy, if global warming is to have recognised this opportunity and living . This role will continue in the fore- be kept below two degrees Celsius . We high growth markets now represent seeable future with raising demands support the widely held view that fossil one third of our total revenue and half from a growing population . fuels will be needed in the foreseeable of our total profits . future, in order to continue powering But increased world trade and energy the economic development that will Recognising the dilemmas consumption also have a range of support a growing global population This recent history of global economic unintended negative impacts, which and contribute to lifting less developed

Unlocking the the world’s supply . Bananas are the India, where most banana farms are potential of the world’s favourite fruit and the fourth less than three acres, up to 34,600 most important food crop after rice, smallholder farmers would be among Indian banana trade wheat and maize, so the potential for those to benefit . This upturn in farmer developing the Indian banana industry incomes and economic activity could As a leading provider of refrigerated and delivering economic and social also lead indirectly to opportunities for transport, Maersk has the potential to benefits is significant . progress in healthcare and education . offer increased export opportunities to global providers of fruit and vegeta- The headline findings of the study To make this work for India, effective bles by opening up markets that may show that with a 4% annual increase cold chain storage and transportation traditionally have been unreachable in yields and a 27% annual increase in are a vital part of the banana export with non-refrigerated transport . acreage dedicated to export quality model . We can play a role as a key bananas, the economic value created facilitator of this type of trade de- A recent study by Maersk Line into for Indian banana producers would velopment . In general, for perishable trade opportunities within the Indian increase from US $28 million today goods to be effectively transported banana industry found that banana to US $1 .612 million . At the same over greater distances and for greater exports from India make up less than time it would lead to the creation of periods of time, there needs to be 0 .1% of global banana production, some 96,000 jobs, supporting around effective, unbroken cold chains from even though India is the world’s 405,000 dependents . With the small- pack-house to port and onward to largest producer, growing 28% of holder model of banana growing in retailers and consumers .

A P. . Moller - maersk group Global Business – Global Challenges Sustainability Report 2011 16

nations and their populations out of among others, simply create less sta- Maersk Oil and Action poverty . ble business environments . The new on Diabetes in Qatar UN Guiding Principles on Business and Maersk will work to extract and supply Human Rights launched in June 2011, At least 20% of adults in Qatar have diabe- oil and gas in an energy efficient and are addressing some of the dilemmas tes, and experts fear the true picture may safe way, as well as to raise the bar for arising between societies and compa- be nearer 50% . It is a major threat to the efficiency in the shipping sector . Wider nies in a globalised world . health and future success of the nation . efforts to combat climate change may also drive new business opportunities While it is the obligation of nation Maersk Oil has been a major player in in our oil business, such as making car- states to protect human rights and to the Qatari economy for many years and bon capture and storage (CCS) a reality, ensure adequate level of national laws Maersk Oil’s workforce includes a grow- which will allow fossil fuels to play their and enforcements, Maersk is commit- ing proportion of Qataris . We are com- part in a lower carbon economy . ted to respecting human rights and mitted to a long term presence in the we are implementing programmes to country which gives us a significant in- Social issues in focus work systematically towards this goal terest in the health and future of Qatar . Globalisation clearly has many benefits such as our Global Labour Principles, including greater ease and speed of Responsible Procurement, Health and In identifying issues which Maersk Oil’s transportation for goods and people . Safety programmes, as well as our “Action for Qatar” sustainability pro- It does, however, have potential down- anti-corruption programme . We have gramme could help tackle, diabetes was sides, including cultural convergence established a framework and action an obvious choice and the company has and loss of diversity, greater social plan to understand what the Guiding created a partnership with the Qatari au- inequality, and potential exploitation of Principles mean for Maersk and the thorities, Qatar Diabetes Association and labour and corruption . way we do business (see page 33) . Novo Nordisk to do just that . An aware- Such issues also need to be addressed ness raising programme was launched if the full benefits of development The future role of business in November 2011, with an “Action on can be achieved . For us as a company, Business will continue to play a Diabetes” exhibition . The next phase of unsafe work places, systems plagued major role in shaping ongoing glo- the programme is in preparation . by corruption, populations without balisation through its management access to healthcare and education, of capital and investments and by

Transforming transportation with low carbon solutions

CO (in grams) emitted per metric tonne of freight per km of transportation Transport is responsible for 23% of global CO2 emissions6 . Considering the need for long term Aircraft 500 – 950 (air cargo) economic development alongside the risks of climate change, transport is both part of the problem and part of the solution . Modern truck 60 – 150 This dilemma is clearly reflected in our transport businesses, which produce the largest Modern amount of CO2 emissions in the Group by far . train 30 – 150 Yet sea transport is the most climate friendly mode of transport and has the potential to form the backbone of future lower carbon Modern ship transport systems. (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 .

6 CO2 Emissions from Fuel Combustion, 2011 Edition, International Energy Agency .

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developing products and services crisis of 2008, has led to a growing rather than only short term gains . For that meet emerging societal needs debate on how to design long term Maersk, as a company with substantial in a sustainable way . sustainable growth . The concepts of capital investments that have a life “creating shared value” 7 and “capital- span of 20–30 years, long term think- The future trajectory of population, ism for the long term” 8 have been put ing is a natural part of the way we do economic development and resource forward to identify that business is business . insecurity, combined with ongoing a force for good when it serves long economic instability the economic term economic and social interests

MAXimising West Africa’s trade potential

Maersk Line is introducing 22 new con- to be the fastest growing in the world along with increased demand for lower tainer ships to West Africa . Designed to and in Nigeria annual growth has been priced Chinese products in fast grow- enable higher port productivity in West around 9% during the last 10 years9 . ing West African markets . Africa, the “WAFMAX” vessels help reduce important barriers for continued Growing trade relations between WAFMAX overcomes trade growth in the region . Far East Asia and West Africa is one barriers to growth outcome of the strong growth . In In response to the trade growth Africa rising 2011, container volumes between between Far East Asia and West Africa, Africa’s economy is growing rapidly . Far East Asia and West Africa grew by Maersk Line is introducing 22 new con- Over the past decade six of the world’s 25%, mainly due to large GDP growth tainer ships from 2011-13 . Nine have ten fastest growing countries were in Ghana . In comparison, container already been introduced in 2011 .The African, and in the period 2011-2015 volumes grew by approximately 6% be- WAFMAXs are the biggest container seven of the world’s 10 fastest grow- tween Europe and West Africa . China’s ships to ever serve West Africa . They ing economies will be in Africa . West need for resources and commodities can carry 4,500 containers (TEU) and Africa stands out in this respect . In is a key driver of increased trade flows have been designed specifically to ac- 2011, Ghana's economy was predicted between Far East Asia and West Africa commodate West African ports .

The WAFMAX effect • Reduced transportation and • Reduced environmental footprint: logistics costs: WAFMAX can help The introduction of WAFMAX will We have studied the current and bring down shipping, inventory and reduce absolute sulphur dioxide future impacts of the WAFMAX in congestion costs with US $131 mil- emissions in the ports by 20% per Ghana (Tema) and Nigeria (Apapa) lion per annum in Apapa and US $80 annum in Apapa and 13% per annum and estimated the following effects million per annum in Tema . in Tema compared to a situation by 2013, all else being equal: without WAFMAX . (Sulphur dioxide is • Increased trade potential: the a regional pollutant causing acidifica- • Increased port productivity: WAFMAX has the potential to tion and impacting on the health of WAFMAX will reduce port turn- increase trade flows by US $760 the people who live close to ports) . around time with up to 20% per million per annum in Nigeria and Furthermore, the WAFMAX vessels annum in Apapa and up to 12% per US $490 million per annum in will have a 30% lower CO2 footprint annum in Tema . Ghana by 2013 . per container moved compared to the industry average .

7 Harvard Business Review, “Creating Shared Value”, January 2011 8 Harvard Business Review, “Capitalism for the Long Term”, March 2011 9 International Monetary Fund

A P. . Moller - maersk group Global Business – Global Challenges Sustainability Report 2011 18

In West Africa, ports and container same time, the West African economy transportation network; and upgrading terminals are among the least efficient continues to be heavily dependent on the logistics planning capabilities of and most congested in the world . commodity exports of oil and mineral West African businesses . Dwell times - the time from when a container is discharged from a vessel until it exits the port facilities - are nearly quadruple those of Asian “ Transport is one of the key sectors that play ports10 . crucial roles in achieving the goals of poverty eradication and sustainable development . The Moreover, the majority of the container ships currently calling into West transport sector is very much linked and influences African ports are relatively small in size developments in other sectors of the economy . (between 1,700 – 2,500 TEU) and are Indeed, it affects attainment of all eight Millennium unable to meet the specific conditions of the ports, the waiting time spent Development Goals (MDGs) .” getting in and out of West African United Nations Economic and Social Council for Africa, ports is significant . African Review Report on Transport, 2009

In addition to delivering almost twice reserves, resulting in a significant out- significant macrolevel challenges the number of containers in one flow of empty containers . Ultimately, remain for Africa as large inequalities ship, the physical dimensions of the the West African population bears the in income and human development WAFMAX along with an automated costs of the current system and its persist . The African Development Bank container lock feature enables faster inefficiencies . estimates that poverty will remain discharge of containers and can pro- a fact of life for around a third of the vide a safer working environment for Improvements still needed people living in Africa for the next 40 port stevedores . Important challenges remain to be years . addressed in order for West African Low port productivity contributes to communities to benefit from the For poverty to decline significantly it high trade cost and inflated pricing full “WAFMAX effect” . These include is estimated that Africa needs a long of consumer goods . Transportation overcoming the current capacity term average of 7% annual growth in and logistics costs in West Africa constraints in West African ports, GDP across the continent . Enabling are among the highest in the world increasing efficiency and transparency and improving conditions for trade and imported goods are out of reach in customs declaration processes, – which is exactly what the WAFMAX for many African consumers . At the improving and expanding the inland does – will support reaching this level .

Partnering with ports Examples of joint efforts include vessels . In some ports such as Walvis and terminals for training of pilots and stevedores along Bay in Namibia dredging has already with careful stowage planning to been conducted to accommodate a MAXimum effect ensure that the vessels are navigated fully loaded WAFMAX vessel . In the safely to shore and containers are port of Tema, an important milestone discharged safely and efficiently . Fixed was reached in October of 2011 when Getting ready to receive the WAFMAX berthing windows are key to bringing the terminal delivered an all time high vessels requires close collaboration down waiting time and helping ter- of 64 container moves per hour on a between Maersk Line and the receiv- minal operators prepare for the large WAFMAX vessel . ing ports and terminals in West Africa . incoming volumes of the WAFMAX

10 Harding, Pálsson and Raballand, 2007

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Increased port productivity: Up to Up to 12% 20 % tema Apapa

Reduced logistics costs: Reduced absolute sulphur Tema: US $80 million dioxide emissions: Apapa: US $131 million Tema: 13% Apapa: 20% Increased trade

potential: Reduced CO2 footprint: Ghana: US $490 million 30% per container com- Nigeria: US $760 million pared to industry average

The value of time “In Sunda´s business, time is of the es- from China with assurance and thus for Sunda sence and must be reduced as much impacts both our stock levels and as possible to remain competitive . A related costs spent on warehousing, stable and fast delivery of WAFMAX safety buffer and cash in the business Guangzhou Sunda Intl Trading service is very important for Sunda . loop . We hope it will enable us to ex- (Sunda) is a Chinese owned multina- Every day we check the estimated port more than ever . With the support tional trading company established in time of arrival (ETA) of our cargo on of the WAFMAX service, we may have 2000 . Sunda exports mainly construc- Maersk Line’s website . Any delay of a more healthy cash flow and expand tion materials, sanitary products and shipment impacts our inventories, our market share in Ghana, by beating fast moving consumer goods from sales and cash flow as well . And if our our competitors who are not accom- China to Africa and South America . In competitors get the products first, we modated with such level of assurance 2011, the company exported 16,000 will run the risk of losing our market . in transit reliability and vessel space, TEU of goods . Being confident of simply .” on-time delivery is one of the main WAFMAX may have an important im- reasons Sunda uses Maersk Line to pact on the future growth of our busi- – Mr . YC Shen, President of Sunda ship their products: ness . WAFMAX allows us to export

A P. . Moller - maersk group

Group Performance Sustainability Report 2011 21 Group Sustainability Performance

Important steps towards stronger integration of sustainability in our business were taken in 2011. We completed new strategies in the areas of health and safety as well as climate change, and progressed with the roll out and implementation of a number of Group programmes.

Our performance in 2011 is testament established, and Group wide pro- was tested by the reality of life in a to how far Maersk has travelled since grammes on anti-corruption, global global conglomerate . 2008 when we began to integrate labour standards and responsible pro- sustainability in our business . In 2011 curement were implemented across our In January 2011, Maersk was announced we agreed on a new health and safety business units . Moreover, 2011 was the as one of the 55 global corporate strategy, a new climate strategy and year where our governance structure, sustainability leaders to join the LEAD target for CO2 emissions was vision and strategy for sustainability programme under the Global Compact .

Sustainability strategy

The Group sustainability strategy pro- As simple as this sounds, making vides direction, purpose and ambition it a reality in a global corporation is Read about… on sustainability for Group functions more complex than as such . To follow and business units alike . The overall through on our ambition we have em- • Our strategy for integrating Sustain- goal of the strategy is to integrate ployed existing and new instruments . ability into the business by 2013 . sustainability in all of our business The strategy is structured around four • Our governance structure and the operations by 2013, with the ultimate key sustainability themes: health and sustainability council. purpose of turning sustainability into safety; environment and climate, social • Stakeholder engagement and how a mid to long term competitive advan- responsibility, and responsible busi- employees see Maersk . tage for the Group . ness practices .

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ROUTES TO 3. trend spotting and understanding of how our businesses BUSINESS INTEGRATION stakeholder engagement impact long term economic develop- Our sustainability strategy outlines In 2011 we asked more than 1300 ment, as an outset for identifying five priority areas, each of which aids in stakeholders what they thought about innovation opportunities . securing business integration . These, our performance (see page 25) . We are and 2011 achievements within each, refining our approach to investigate MONITORING INTEGRATION are listed below . future trends to understand better During 2011, we developed and imple- the mid to long term risks and op- mented a dashboard system to monitor 1. Group standards portunities for Maersk and stay in tune the level of integration of sustainability In key areas we establish standards with the future needs of markets and within our business units’ operations . and provide guidance for our business societies . Beginning fourth quarter 2011, business units and Group functions to improve units now report on integration progress our sustainability performance . In 4. capital expenditure quarterly to the Sustainability Council . 2011 implementation and training During 2011 we updated our due The first such report showed good but progressed for the Group wide pro- diligence processes for mergers and varying progress made by business units . grammes on responsible procurement, acquisitions (M&As) and included anti-corruption and global labour further environmental and social, principles . We also developed Group including human rights, criteria into strategies on health and safety and cli- the risk screening process . We aim to Our sustainability mate change as well as new Principles further include sustainability perspec- vision and strategy for Government Interaction . tives in broader capital expenditure decisions and this work will be a focus Our vision is to be a responsible and 2. performance management area in 2012 . profitable enterprise balancing eco- Sustainability must become part of nomic, social and environmental con- the performance system across the 5. sustainability as cerns for the benefit of the Group and Group, and from 2011 we include a source of innovation the global community . To achieve this, sustainability in management reviews, We are exploring how we can help our strategy is to integrate sustainabil- leadership development programmes solve societal needs in a way that ity systematically into all our business and our employee engagement will at the same time make sound processes and make sustainability a survey . business sense . In 2011 we initiated competitive advantage . a programme of work to deepen our

A P. . Moller - maersk group Group Performance Sustainability Report 2011 23

Governance

The sustainability governance In 2011, a selection of agenda items Business units framework connects Group and busi- included: Business units develop and implement ness units closely and promotes the • Adoption of a new Group wide their own sustainability strategies as integration of sustainability into daily Health and Safety strategy well as Group standards . This includes operations . It covers three main areas: • Approval of a disaster response monitoring and reporting on their commitments, governance processes, programme performance . See the business unit and performance management . • Approval of a new Group wide section starting page 48 . climate change strategy and ROLES AND RESPONSIBILITIES position GOVERNANCE PROCESSES Executive Board • Review of the five pilot CEO Three separate processes are The Group’s top management, the Sustainability Reviews interlinked to ultimately provide the Executive Board, has overall responsi- • Adoption of a dashboard system Executive Board with a strong overview bility for sustainability matters . to measure business integration of sustainability performance and of sustainability integration: Sustainability Council • Approval of the Group Human The Sustainability Council reports to Rights Framework • A CEO review process designed to the Executive Board and oversees • Approval of the new Group wide enable open discussion between compliance with Group sustainability strategic donations framework . Group Sustainability and each busi- standards and the integration of ness unit CEO about how sustain- sustainability across business units . Group Sustainability ability is relevant for the future of the It also deals with Group-wide sustain- The Group Sustainability team sets business . During late 2010 and early ability dilemmas . Membership of overall direction for sustainability in 2011, we piloted five CEO reviews the Council includes executive level Maersk, developing strategy, minimum with Maersk Line, Maersk Supply Ser- representatives from major business standards and positioning for the vice, Maersk Tankers, Maersk Oil and units as well as relevant Group func- Group, as well as holding responsibility Danbor . The full process will be rolled tions . Executive Board member, Claus for sustainability governance . Exter- out in 2012 . The review process will V . Hemmingsen, chairs the Council . nal trend spotting and stakeholder follow a two-year cycle of alternating The Sustainability Council meets four engagement and communication are CEO and peer reviews, which means times a year . also responsibilities of the team . that every year each business unit

Sustainability governance framework

COMMITMENTS GOVERNANCE PERFORMANCE MANAGEMENT

Executive Board Our values Integration Dashboard

Maersk Principles of Conduct Personal KPIs Sustainability Council

UN Global Compact Employee engagement survey

Management Enterprise risk Policies and guidelines CEO reviews Leadership training business reviews management

A P. . Moller - maersk group Group Performance Sustainability Report 2011 24

will either host a CEO review or par- Management process, run by Group held in November 2011, focused on ticipate in a review with sustainability Finance . safety, one of our headline sustainabil- experts in other business units . ity issues (see page 27) . PERFORMANCE MANAGEMENT • Integration of sustainability elements We have established a number of Personal KPIs into existing business unit manage- performance management tools and In 2011, four members of the Execu- ment reviews . Run by our Group Strat- processes to help embed sustainability tive Board had sustainability related egy function, the reviews focus on busi- into our performance culture . KPIs . Over the coming years, we will consider how to integrate sustainability performance metrics into the “ In its first full year of operation, the Sustainability Coun- personal objectives of our leaders . cil has reviewed, debated and agreed a range of critical Employee engagement survey and forward looking sustainability initiatives that will Our annual employee engagement survey has a number of questions dedi- further guide us in achieving our aim of inte- cated to Maersk and sustainability . grating sustainability across the Group . Judging Employees’ perceptions of sustainabil- from both the quantity and the magnitude of issues ity are directly fed back to managers, who are able to respond to any areas tabled at the Sustainability Council, it is very clear that requiring improvement . More details on the APMM Group and our activities generate substan- the engagement survey and results for tial public interest . True to our history and values, we 2011 are contained in the stakeholder engagement section, page 25 . will continue to focus on always doing the ‘right thing’ .” claus V. Hemmingsen, member of the Executive Board and Leadership training CEO of Maersk Drilling, Chairman of the Group Sustainability Council During 2011, we developed and piloted a sustainability module for the Group wide leadership training programmes . Full roll out will be carried out in 2012 along ness unit positioning and performance Executive Board Sustainability Day with the launch of an e-learning module and some sustainability questions are An annual event for the Group Execu- on sustainability . When fully in place, already included in the process . tive Board allowing the time and space around 900 to 1,000 leaders will under- to engage on sustainability topics take the sustainability training each year . • We are working to integrate sustain- and issues faced by the Group and its We will offer a voluntary, full day sustainability into the Group Enterprise Risk operations . The first sustainability day, ability training course from 2012 .

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Stakeholder engagement

In 2011, Maersk commissioned Globe our businesses is an important way for survey explores employee perceptions Scan to carry out a reputation assess- Maersk to contribute to public policy of our approach to sustainability . ment survey among key stakeholders and political debates . We believe that of the Group and six key business units . this engagement is to the benefit of Compared with 2010, the employee business as well as society and helps engagement scores for sustainability A total of 1,357 responses globally to manage potential issues and risks related questions improved in line with were gathered from a wide variety of actively . A sizeable share of this work an overall improvement in engage- Maersk stakeholders . The main conclu- is conducted through our participation ment across the company . Overall, the sions from the survey were: in industry organisations such as the response rate to the employee engage- 1 . Stakeholders hold more positive Danish Shipowners’ Association . ment survey was 90% and there was impressions of Maersk (79%) com- a 6% leap in favourable responses to pared with competitors (37%) . We strive to act as a good corporate the question “my company makes a 2 . Maersk scores well on operational citizens when engaging with govern- genuine effort to be socially and en- metrics, such as financial perfor- ments and political institutions, and vironmentally responsible” and a 4% mance and innovation, but relatively to share in a responsible manner our jump in favourable responses to the lower on sustainability elements, experience and views on subjects of question “my company is committed such as climate change and social concern to the Group . We conduct lob- to employee safety.” responsibility . bying in accordance with the Maersk 3 . Maersk’s reputation is ultimately Principles of Conduct and in 2011 took In the 2011 survey we added a new based on the ability to open up new a step further with the development of question to gauge perceptions of markets, contribute to economic a set of uniform Principles for Govern- sustainability at a general level, in ad- growth of countries and to innovate . ment Interaction . These Principles are dition to specific questions on safety currently being reviewed internally to and environmental protection . Follow- We are using these results to inform understand implications across dif- ing a pilot with Maersk Line in 2011, our future communication and en- ferent regions and legislations . Once we will add a further question to the gagement efforts . finalised they will be made publicly survey in 2012 asking employees available . whether they feel that their manager LOBBYING takes into account social and envi- Engaging in constructive dialogue and HOW EMPLOYEES SEE MAERSK ronmental considerations in decision lobbying on issues that are relevant to Our annual employee engagement making .

Employee engagement survey 2011

Percentage favourable responses In Maersk’s annual employee engagement survey, employees indicate how they see the 90 company’s efforts on safety management, 85 diversity and environmental management .

80 My company is committed to employee safety 75 My company treats people equally with respect to gender, race, nationality, 70 religion etc. 65 My company is making a genuine effort to be socially and environmentally responsible 2007 2008 2009 2010 2011

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Strategic partnerships and memberships

We are involved in many partnerships at Group level and within our business units, and we are members of many organisations that are relevant to our business or specific sustainability issues.

The UN Global Compact World Economic Business for Extractive Industries As members of the UN Global Forum (WEF) Social Responsibility Transparency Initiative (EITI) Compact we are engaged in WEF is an independent inter- Business for Social Responsi- In 2011, Maersk Oil became a both local and global networks national organisation commit- bility (BSR) is an international supporter of the EITI . The EITI and groups . We currently en- ted to improving the state of sustainability expert group . is a coalition of government, gage in the Nordic, Singapore the world by engaging busi- Maersk is active in two BSR companies and civil society and Mexican local networks . ness, political and academic programmes . Beyond Moni- that aims to make natural We also participate in four leaders . toring investigates options resources benefit all . It sets a Global Compact issue working for creating sustainable, high global standard for transpar- groups on anti-corruption, Car- We are part of the Logistics performance supply chains ency in oil, gas and mining . ing for Climate, Supply Chain Emergency Team (LET), a and Clean Cargo works to www .eiti org. Sustainability, and Business group which assists in the first standardise the CO2 calcula- and Peace . weeks after a natural disaster tion methodology for shipping, www .globalcompact .org (page 34) . We are also mem- creating a recognised source bers of several working groups of high quality, performance focusing on logistics, transpor- based data on ocean shipping . tation and sustainability . www .bsr .org World Ocean Council Maersk Line is a corporate Maersk is a member of the partner of the WEF’s “New World Ocean Council, an UN Global Compact LEAD Vision for Agriculture” project, international, cross sector alli- Maersk Group is one of 55 which focuses on challenges ance for the private sector on participants in the UN Global of food security and environ- corporate ocean responsibility . Compact LEAD programme . mental sustainability as well Forum for the Future In 2011, Maersk Line entered Launched in January 2011, as the economic opportu- Forum for the Future’s Sus- into a research programme LEAD is a platform that nity provided by agricultural tainable Shipping Initiative – “Smart Ocean/Smart In- supports leading UN Global growth . (SSI) brings together compa- dustries” – with the World Compact participants in their www .weforum .org nies from across the industry Ocean Council and rig operator, efforts to achieve higher levels to plan how shipping can Transocean . The programme of corporate sustainability per- contribute to – and thrive in – aims to expand the collection formance . We take an active a sustainable future . The Initia- of ocean and atmospheric part in LEAD meetings and tive, founded by Maersk Line, observations from ships and task forces, including the Task Gearbulk, BP Shipping, Lloyd’s platforms to improve the Force on Communicating Sus- Register, ABN Amro and WWF modelling and predictability of tainability Leadership . has set out a shared vision for weather, ocean conditions and www .unglobalcompact .org/ a sustainable shipping indus- climate change . lead try in 2040, backed up with www .oceancouncil .org specific commitments . www .forumforthefuture .org

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Health and safety

The health and safety of our employ- demand excellence in safety manage- tunities . This is why safety is not only ees, the safety of our assets and the ment and procedures . In some of our at the core of our sustainability efforts security of our operations against pi- industries, such as oil and gas explora- but at the core of our business . Safety racy will always remain among the very tion, drilling and marine services, top is an all-encompassing priority for our top priorities of the Maersk Group . The class safety performance is closely Group, from the Executive Board down industries that we operate in and some connected with our licence to operate to all business units . of the environments where we work and abillity to pursue business oppor-

Safety governance

From a governance point of view, safety is our business units and all members • Human errors cannot be accepted as well defined at all levels of our organisation . of the Sustainability Council come a root cause of any safety incident . In- Safety is at the top of the agenda at the together to discuss and debate safety stead we need to better understand Executive Board’s 25 or so meetings per within the Group . With input from the reasons behind human errors and handle these background factors . • We will strengthen systematic learning between business units . “ Safety makes us special . It needs the attention of • Special attention should be paid to the highest leadership and the Executive Board dis- injuries that have a high potential to cuss safety whenever we meet . While working here, become serious events . you enter the tradition of taking care of one another .” nils S. Andersen, Group CEO, speaking at the Executive Safety Day Read about… year and is a principal area of attention external expert speakers, one of the • Our new Health and Safety strategy . for the Sustainability Council . Safety is main themes of the day was improving • The first ever Executive Sustainability also a key area of focus within the annual understanding of how fatal accidents Day, focused on safety . business unit CEO reviews performed by can be prevented . • Our safety performance for 2011, includ- the Group Sustainability team . ing insight on cases of exploding refrige Key points from the Executive Safety rated containers in Vietnam and Brazil . EXECUTIVE SAFETY DAY Day on safety are integrated in our • Our efforts to respond to the risk of The safety day, held in November, saw new Group health and safety strategy . Piracy . the CEOs and heads of safety of all These included:

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A new Group health and safety strategy

The Group operates in different A newly established Health and Safety fatalities is not affected . This pattern industries with different challenges Committee is overseeing the strategy . is backed up by a number of safety and approaches to safety but with This is made up of the safety leaders studies which challenge the traditional the same goal to always improve our from key business units and Group “safety triangle” thinking suggesting safety performance . To ensure that we, Sustainability . The committee has that as accidents and injuries de- as a Group, are working in the same the remit to make decisions on safety crease, fatalities also decrease in line direction we developed a new health itself, but can also refer dilemmas or with these improvements . and safety strategy in 2011 covering challenges to the Sustainability Council 2012-2015, based on the overall ra- for a final decision . We will assess the potential to develop tionale of “share and improve” . The aim additional performance parameters of the strategy is to deliver a concerted For the first phase of the strategy, for safety to allow senior management upgrade for the entire Group with a three key actions are outlined: to measure and evaluate performance focus on fighting fatalities . An impor- more broadly than with standard ac- tant element is to promote systematic Fatality Review Group cident and lost time injury rates . sharing of better safety practices and We will establish a fatality review competences between business units group to assist with the complex task Knowledge sharing framework in order to improve existing standards of investigating a fatal accident . This Within the Maersk Group insight and and procedures across the Group . group will consist of skilled accident experience of safety best practices investigators . The ultimate aim is to is spread across our business units . The strategy kicks off in steps, with bring down fatality numbers to zero . This knowledge is currently frag- the first phase launching in 2012 with mented and there is a large opportu- a focus on process and occupational Group health and safety nity for the Group in better sharing safety . The second phase kicks off performance parameters of information and experiences . The in 2013 and will cover occupational Although we continue to reduce the Health and Safety Committee will health and health management . rate of lost time injuries, the number of establish health and safety networks

Exploding reefer during repairs to up to 323 containers to make them aware of the situation (refrigerated) which were at the APM Saigon repair and ask them to immediately release facility in Cat Lai, Vietnam between 30 information on any similar events . containers March and 25 April 2011 . The containers will remain grounded During 2011, we experienced three We took steps to ground all potentially until the exact reason for the inci- incidents where reefer containers affected reefer containers that had dents is determined and a safe repair exploded during operation . Tragically, received gas repairs in Vietnam since method developed . We have deve three people lost their lives as a result 1 February, a total of 844 containers . loped a testing method to check the of these explosions . See the overview We sent a message to all carriers and grounded containers and commenced of fatalities table for more information . depots transporting or storing the testing at the end of January 2012 . potentially affected reefer containers, Investigations found that the explo- instructing them to turn the refrige Together with suppliers, manufac- sions were caused by the introduc- ration equipment off and under no turers and third party experts, we tion of counterfeit refrigerant being circumstances attempt any repairs . continue to investigate how the charged in to the units . The contami- We also requested that the World counterfeit refrigeration gas entered nated gas may have been charged Shipping Council contact its members our supply chain .

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consisting of experts from relevant SAFETY PERFORMANCE 2011 increased to 13 in 2011 against 12 in business units that will share insights In 2011 the vast majority of business 2010 among our own employees as and lessons learned directly through units improved their lost time injury well as contractors and third parties workshops, as well as on an ad hoc frequency (LTIF); seven out of the 11 who work under our direction . In addi- basis; and a toolbox that will provide largest business units now have an LTI tion, two of our employees lost their a database of cases, standard frequency less than 1 .0 . It is a positive lives by undertaking work at sites where templates for incident reviews and development and reflects the work we do not have operational control . procedures, and a match-making Maersk is doing in order to create a facility with profiles, references and safe workplace . Despite reductions in APM Terminals is an example of the contact details to connect relevant LTIF, we have not been able to reduce fact that a reduction of LTIF does not safety personnel . the number of fatal accidents which necessarily reduce the number of fatal

Fatalities per business segment

Container activities Oil & gas activities Terminal activities Targets 2012 Tankers, oshore and other shipping activities Retail activity Other businesses

• Implement five working groups within 15 the Health and Safety Committee • Reduce the number of fatalities 12 • Ensure strong safety governance 9 across BU’s and Group • Improved accident investigations for 6 severe accidents

3 • Start developing phase two of the safety strategy on occupational health and health management . 2007 2008 2009 2010 2011

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Fatalities 2011

Business unit Location Description Employed by Fatalities under Maersk operational control a APM Terminals Apapa, Nigeria Third party hit by a truck while waiting to enter customs scanning area Third party Mumbai, India Safety and food inspector killed by a container explosion and subsequent fire Third party Mumbai, India In the same incident as above an employee of a forwarding company killed Third party by a container explosion and subsequent fire Cotonou, Benin Co-driver killed by reversing truck and trailer while checking trailer seals Third party Itajai, Brazil Employee crushed between two containers during off loading Maersk Mumbai, India Third party driver hit by a passing trailer during poor weather conditions Third party Cotonou, Benin Traffic accident resulting in a security guard being hit by a truck Contractor Itajai, Brazil Technician killed by an explosion from a reefer container cooling unit while Maersk conducting repairs (see page 28) Apapa, Nigeria Stack of containers blown over by fierce wind . Truck driver struck by container Third party Callao, Peru Truck driver hit by forklift Third party Maersk Container Dongguan, China Employee fatally injured by a moving container Maersk Industry Dongguan, China Fall from height Maersk Maersk Supply West coast of Africa Fatality resulting from an engine room fire Maersk Service Maersk employee fatalities not under Maersk operational control APM Terminals Catlai, Vietnam Technician killed by an explosion from a reefer container cooling unit while Maersk conducting repairs (see page 28) Shanghai, China Mechanic hit by reversing truck Maersk a Excludes fatalities due to criminal acts .

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accidents . APM Terminals new long each step in the right direction can in our 2010 sustainability report . Since term safety strategy has therefore take time . Twenty years without an LTI then, Maersk insurance teams and moved the focus onto the serious and onboard Esvagt Preserver and twelve Maersk Line have continued to investi- potentially serious accidents . years without an LTI onboard Maersk gate and work with trucking vendors to research each case better and improve reporting accuracy . “ Our goal of zero incidents and zero fatalities will This has resulted in revised fatality never change and our commitment to safety numbers that indicate there have been is higher than ever . If we have a facility that 43 fatalities associated with the busi- can’t be brought up to standard, I'm willing to ness in Pakistan and Afghanistan from the beginning of the programme until leave this facility .” December 2011 . Kim Fejfer, CEO APM Terminals Since April 2009, Maersk Line has carried insurance to compensate the In 2011 Maersk Oil started implemen- Arun and Maersk Prime are just two families of those injured or killed during tation of an “Incident Free Maersk Oil” examples of many that show us that the movement of military cargo as which involves Maersk’s own employ- it is possible . part of the U .S . government contract . ees and contractors . Together with Maersk Line’s insurance company has other initiatives, the programme shall Note: A complete list of LTIF for all also contracted a third party firm with help to maintain and strengthen the of our business units is available at local offices in Pakistan to work with safety performance of Maersk Oil both Maersk .com families on compensation issues for in terms of both occupational safety each injury or fatality that has occurred and process safety . OPERATING IN AFGHANISTAN since April 2009 . Maersk reported 39 fatalities associ- We still believe that zero incidents ated with our outsourced trucking op- can be achieved but recognise that erations in Pakistan and Afghanistan

Safety management used in a way that suggested that not findings from the Maersk Master at Maersk Supply the whole fleet suffered from safety safety audit . shortcomings . Service The newspaper was presented with One of the emails covered the find- the many factual mistakes in the In November 2011, safety manage- ings of an external safety audit of the articles and cause of the misunder- ment at Maersk Supply Service was vessel “Maersk Master“ in May 2011 . standing, but the newspaper decided the subject of critical coverage in a Unfortunately this email, sent to all not to print a correction, claiming series of articles by a Danish newspa- Maersk Supply Service vessels, con- the paper had “other anonymous per published over a 14-day period . tained factual errors, which lead to in- sources and documentation” . The The newspaper claimed significant accurate reporting by the newspaper . claims regarding the overall safety failures in safety standards across In addition to covering the actual audit level in Maersk Supply Service were Maersk Supply Service’s on shore and findings, the email incorrectly included however never backed by quotes from on board operations . The claims were a range of additional points that were sources – named or anonymous – in mainly based on three internal emails shown as “typical examples” of safety the published articles, nor were ad- that the newspaper had come into deficiencies on the external auditor’s ditional documentation presented or the possession of . These emails were standard audit form, and were as such disclosed .

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Piracy

Piracy remains the main maritime se- costs have nearly doubled in 2011 . Maersk’s policy is to address the curity concern for the Group . Maritime This increase has come mainly from threat of piracy first through risk based security for Maersk has improved . In preventative measures established in management practices and working 2011, the volume of reported piracy line with industry recommendations, with naval forces . However, where activities around the world was similar the use of higher speeds through ships are particularly at risk and these to 2010, while the hijacking success piracy waters and an increased focus practices do not ensure the safety of rate was reduced by 50% . on courses and training . our crew, we will employ armed guards on our ships . All attacks on our ships were averted Armed guards on board through increased focus on piracy from Shipping operators are increasingly It is Maersk’s firm opinion that armed naval forces, our compliance with best using armed guards on board to add guards on merchant ships will not management practice set by the indus- to the security measures provided by make the problem go away . This is not try and also the deployment of on board naval forces in piracy hotspots . Evi- a problem we or the shipping industry armed guards on several of our ships . dence suggests that more than 50% can solve alone . It must be solved in of unsuccessful pirate attacks result collaboration with and under the direc- Over the last two years Maersk has in- from having armed guards on board . tion of the international community vested substantially in reducing the risk The trend shows that since the use and the relevant authorities . of piracy to our crews and vessels . Pi- of armed guards on board, there has racy related costs for the Group reached not been an escalation in the use of US $100 million in 2010 and these weapons handled by pirates .

Piracy attacks 2011

Attack Attempted attack Source: MaRisk by Risk Intelligence 2011

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Human rights

The UN Guiding Principles on Business rights perspective into our general risk management . By the end of 2013 and Human Rights was launched in risk management systems, including our objective is to have an integrated 2011 . For the first time, a set of principles a systematic mapping of how the risk management system in place to seeks to define the boundaries of respon- business impacts the human rights of manage human rights risks across sibility for human rights between nation neighbouring communities and other the Group and top level processes and states and companies and provide a people affected by our operations systems in place to meet the expecta- comprehensive and widely accepted and services . In addition the need was tions of the Guiding Principles . view of the obligations in this area . highlighted for a “translation” of what human rights mean in the context of The action plan 2012-13 has four key HUMAN RIGHTS GAP ANALYSIS different business functions, such as work streams illustrated in the table . In 2011 we engaged external experts sales, human resources, legal etc . to undertake a human rights gap analysis against the expectations of A FRAMEWORK FOR ACTION the Guiding Principles . The analysis As a direct response to the findings Read about… covered Group functions as well of the gap analysis, we have created a as Maersk Line and Maersk Oil and framework for Business and Human • Our framework for action on assessed all issues, policies, commit- Rights and an action plan for 2012-13 . human rights . ments, systems, processes and KPIs in As with our overall sustainability strat- • Our Disaster Response Programme relation to the Principles . egy, our long term approach is to inte- and partnership with the UN’s grate human rights management into Logistics Emergency Teams . Areas that were identified for improve- existing company systems, such as • Our strategic approach to philanthropy . ment include integrating the human due diligence processes and enterprise

Action plan 2012–13

Work- Mapping and integration of human Extreme risk countries Operational level Legal and stream rights risks grievance mechanism contracting practices

Action High level analyses to understand Assess whether the Guiding Assess how the Guiding Prin- Ensure that potential human how human rights change the risk Principles provide a suitable ciples and its provision for rights risks in contracting prac- and impact profile of the business, framework for operating in access to remedy for victims tices are properly understood including assessments within each extreme risk countries . of human rights abuses can and sought mitigated with our business unit . be operationalised locally . partners, suppliers and other business relationships . 2013 Ensure human rights risks are cap- On a needs basis, establish Develop Group principles for Participate in international targets tured and integrated into the Group a Group position on con- operational level grievance work streams developing Enterprise Risk Management system ducting business in such mechanisms and share with and defining this area . and business unit risk processes . countries . all business units . Share best practice across All business units to conduct human legal departments within rights assessments and amend top Maersk . level systems accordingly .

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Human rights in contracts We are taking part in a 12 month learning “ Businesses are an integrated part of the develop- forum jointly developed by the Institute ment of our societies and the newly UN of Business and Human Rights and the endorsed guiding principles for human Global Business Initiative on Human Rights that focuses on corporate respect rights and business provide a much needed for human rights in contractual relation- clarification of business responsibilities – ships . The forum will launch a public “state and lifts the corporate responsibility for the respect of play” report in mid 2012 setting out existing practices and common challenges of human rights to an international standard .” and dilemmas faced by businesses . John Morrison, Executive Director, Institute for Human Rights and Business

Disaster response and strategic philanthropy

Providing access to areas struck by Forum meeting in Davos . LET is a part- lead on our relief efforts during disasters . natural disasters is a key community nership between the World Economic As part of this team we have trained an focus . To ensure that we deliver the Forum, the UN World Food Programme expert LET response team made up of best aid we have developed a system- and four companies – Maersk, Agility, 24 volunteers from Maersk Line, Damco atic approach; for major international TNT and UPS . In the event of a large and APM Terminals . disasters we are now partners of the scale natural disaster, LET provides UN World Food Programmes Logistics emergency support in the first three to 2011 LET activities EmergencyTeams . Learn more about six weeks in the form of logistics spe- In March 2011, a massive earthquake the programme at www .maersk .com . cialists and managers; logistics assets, and tsunami struck Japan . The LET such as warehouses and containers; was activated and Maersk offered 125 LOGISTICS EMERGENCY TEAMS and transportation services (shipping, twenty foot equivalent units (TEU) of In January 2011, we cemented our in- airfreight etc) . To support our commit- transport including end point delivery . volvement in the Logistics Emergency ment, we have established a disaster Although the LET response required Teams (LET) at the World Economic response coordination team to take the for the Japan earthquake disaster

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was limited, another key element of When we activate our disaster re- • Provide disaster relief and build Maersk’s support was maintaining sponse through LET, we also activate preparedness: Projects that help al- business continuity and keeping Japan an employee giving scheme and the leviate the impact of large disasters connected to the global supply chain . Group matches all employee dona- and increase access to essential Four Maersk employees worked with tions . In 2011, a total of US $176,012 goods and services for the impacted communities

“ We are very happy with the partnership with • Empower people to trade: Projects Maersk which extends our logistics capability to that help develop new social and economic opportunities for under- respond to human suffering and natural disasters .” privileged communities through Wolfgang Herbinger, Director, World Food Programme Logistics Division global trade

• Support health and safety in the World Food Programme and LET to was donated to the Japan earthquake our surrounding communities: undertake a logistics capacity assess- crisis appeal . All donations are made Projects that will support making ment (LCA) in Nigeria . An LCA assesses to the International Federation of Red our local communities more healthy ports and airports, rail capacity, road Cross and Red Crescent . and safe networks and corridors, storage facilities and logistics services . This enables STRATEGIC DONATIONS • Protect the natural environment the humanitarian community to build PROGRAMME and the world’s oceans: Projects scenarios and make accurate logistics We also developed guidelines for dona- that help protect the environment plans in the case of disasters or if mas- tions and community investments and the natural resource base on sive assistance is required . It is also an for business units in 2011 . The overall which we, our customers and local opportunity for Maersk to strengthen purpose is to ensure that donations communities depend its understanding of logistics connec- are managed the same diligence to tions wherever an LCA takes place . value creation as any other part of • Support education and training the business . With the guidelines we programmes: Projects that will ADDITIONAL SUPPORT ensure a consistent approach to dona- support education at all levels of In 2011, Maersk made a corporate donations across the Group by focusing on society including training to sup- tion of US $450,000 to the famine in East and measuring the inputs, outputs and port the objectives of the other key Africa through the UN World Food Pro- impact of donations or partnerships . themes . gramme and “Danmarks indsamling .” The guidelines list five focus areas:

Themes for donations and community investments

Support health Protect the natural Provide disaster Empower Support education & safety in our environment relief and build people to trade and training surrounding and the world’s preparedness programmes communities oceans

Causes where we believe we can have the biggest impact as a conglomerate within shipping, logistics and oil

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Labour principles

Global labour principles

Our Global Labour Principles11 span our to raise concerns or issues within the global operations, covering all business workplace . Read About… units and employees . They are based on international conventions and are The principles help to maintain our • Our e-learning training programmes designed to provide equal minimum reputation as an attractive and trusted on Global Labour Principles . standards for our employees across employer, which supports our abi • How supplier labour breaches in the diverse cultures and regulatory lity to attract talent . Also, by raising Australia lead to the implementation environments that we work in . awareness of the principles among of the Maersk Global Labour Principles . our employees, we believe we reduce • Our efforts to become a diverse and The principles reflect our commit- the risk of workplace disputes and inclusive company . ment to the UN Global Compact and that this supports our ability to retain ensure high quality and fair labour our employees and maintain a stable, conditions for our people and provide engaged workforce . the systems and processes for them

11 www .maersk .com/Sustainability/Documents/Maersk_Global_Labour_Principles .pdf

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Full-time employees per region

Targets 2012 10 • Complete e-learning on remaining 12 Europe & Eurasia 3 principles Asia & Pacic 3 42 Percentage Middle East • Ensure business units conduct Americas self-assessments of local compliance . Africa • Develop e-learning module that gives 33 an overview of the principles and is accessible by all employees .

Training first five principles . The module cover- Reporting concerns In 2011, we launched an e-learning ing the remaining three Principles will be Any employee with a question or concern training programme covering the Global completed in the first quarter of 2012 . on compliance with the principles can Labour Principles . The online training raise this directly with a manager or the introduces business dilemmas, which Following completion of the manager- Human Resources department . Issues the participants work to resolve using level training, development and relating to discrimination and harass- the Principles . During the year over deployment of a Group wide voluntary ment can also be directed to Maersk’s 400 general managers and human employee learning project on the prin- global whistleblower system, available resources managers were trained in the ciples is underway . on www .maersk .com (see page 46) .

Supplier labour workers had the correct working visas of our work to improve continuously breaches in Australia and were being paid AU $25 an hour . procurement processes, as well as Once these labour abuses were dis- our auditing and response mecha- covered and verified, we immediately nisms . In February 2011, the Australian suspended our work with Surveyspec Workers’ Union issued a press release and cancelled the employment of the To prevent this type of labour issue, highlighting the plight of Filipino work- four men in question . during 2011 we have been imple- ers illegally trafficked into Australia menting the Maersk Global Labour and earning three Australian dollars an Looking forward we have now perma- Principles, our code of labour stand- hour, well below the minimum wage of nently discontinued our relationship ards that applies to all employees, AU $15 an hour . The release exposed with the staffing agency . In an effort wherever they work in the world . The the practices of a staffing agency, to offset the disruption caused to the Principles state that all suppliers must Surveyspec, used by Maersk Drilling to four workers, we have also offered adhere to our third party code of con- contract four Filipino workers . them employment on our rigs – product (see page 47) . vided they are employed by an agency The case turned out to involve four that operates in accordance with all If not presented with this code yet, persons, hired by the subcontractor legal requirements . suppliers will be during contract re- and working as painters for Maersk newals and future contracts will also Drilling . Surveyspec had falsely led This serious breach of employee stipulate that we have the right to Maersk Drilling to believe that the rights has highlighted the importance audit suppliers .

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Diversity and Inclusion

To address the challenges of a labour across business units and conduct- leaders . A diversity and inclusion market where skilled talent is in high ing diversity meetings with business module was also incorporated into demand, we believe that a proactive unit human resources and leadership Group’s leadership development approach to diversity and inclusion is teams . We worked to ensure that our programmes . necessary . This will enable us to access hiring and selection processes provide the largest possible talent pool and to equal opportunities and prevent dis- 2. Develop and enable female talent maintain our position as an attractive crimination, and we have assessed or- Ongoing work in this area includes employer to our existing global workforce as well as to future employees . “ As our customer base is changing, so is our As our presence in the growth markets need for local talents who have an intimate has increased significantly and almost one third of our revenue comes from understanding of local needs .” these markets, a focus on local talent rizwan Soomar, Managing Director, Maersk India Pvt . Ltd . is more important to our business than ever . ganisational processes and policies in the Women’s Leadership Network at order to remove barriers to attracting our headquarters in Denmark where The scope of our diversity and inclu- and retaining diverse employees . This we held four events in 2011 . We also sion programme was extended in was in alignment with the diversity and piloted a targeted self-leadership 2011 . At its launch in 2009 the inclusion programme´s three focus training session for women in 2011, programmes key focus was gender di- areas: which will be offered globally in versity, but it now includes all kinds of 2012 with sessions in four different diversity, including age, ethnicity, race 1. Higher awareness of diversity and locations . and sexual orientation, with gender inclusion across the whole Group . and nationality diversity as priorities . The approach to, and benefits of, 3. Strengthen the leadership diversity was discussed at meet- pipeline in growth markets 2011 PRIORITIES ings with the leadership and human – We met with internal and exter- Our newly established Diversity resources teams of the business nal stakeholders and experts to Council, which has a representative units . The diversity and inclusion understand and assess the talent from each of the six largest business programme was also presented at landscape and began the work to units, focused their efforts in 2011 the Annual Leadership Conference, set concrete strategies and targets on reviewing recruitment processes which includes Maersk’s top 120 for our work .

Gender diversity

% female Level 2009 2010 2011 Target representation

Denmark General Manager 17 .0% 17 .6% 19 .5% 20% (2014) Headquarters Director 9 .0% 7 .2% 6 .8% 15% (2014)

Vice President 4 .0% 4 .0% 4 .0% 10% (2014)

Global a General Manager 17 .0% 20 .6% 20 .5% 22% (2012)

Director 7 .0% 8 .4% 8 .5% 9% (2012)

Vice President 4 .0% 4 .0% 4 .0% 4% (2012) a Figures are based on headcount, global figures do not include Dansk Supermarked and some joint ventures

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PERFORMANCE Moreover, in our global employee en- We continue to work towards the gagement survey, 82% responded fa- Gender-balanced target for our Danish headquarters to vourably to the question “my company teams outperform have a female representation of 20% treats people equally with respect at general manager level, 15% at direc- to gender, race, nationality, religion A recent study of the employee engage- tor level and 10% at Vice President etc.” This is up from 77% suggesting ment scores of 4,428 Maersk teams, level by 2014 . that the increased communication made up of 28,234 employees, has around diversity is having an effect in found that teams with greater gender The table opposite shows that the cur- raising awareness . diversity have higher levels of engage- rent percentage of women at General ment and higher levels of manager Manager level in Denmark is 19 .5% In 2012, our work on diversity and effectiveness . External and internal re- which exceeds our 2011 target and inclusion continues to build on the search has shown that higher employee places us close to our 2014 target two three levers: Addressing the inclusive engagement is linked to higher perfor- years ahead of time . The decrease in organisational environment by mak- mance and better customer satisfac- the Danish numbers at Director level ing diversity and inclusion training tion . Similarly, gender-balanced teams can be explained by cross country as- available to all our employees and are proven to lead to better financial signments of female managers . promoting it to our leaders, offering results and better retention of staff . the gender diversity initiatives, cur- Globally, our figures are slightly higher rently piloted in the headquarters, In the study, the engagement score for with 20,5% females at general manager globally for a wider audience and highly gender diverse teams (defined as level . However, we still need to see these designing and implementing the 50-69% same gender) was 6% higher talents move into more senior positions recommendations regarding growth than teams with no diversity and mana- (8,5% females currently hold Director markets talent . gerial effectiveness was also 6% higher positions globally, an increase of 1,5% in the highly gender diverse teams . compared to the 2009 baseline) .

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Environmental stewardship

Environment

Our environmental strategy requires all the impacts arising from Dansk Super- At Group level our focus is on strategy, our business units to pursue greater eco- marked’s operations are very different policy, communications and monitor- efficiency – essentially doing more with from those relating to Maersk Oil . ing performance on the most material less by using natural resources more ef- cross-portfolio issues, of which climate ficiently and with less impact on the en- MANAGEMENT APPROACH change is the key issue for the Group . vironment . By focusing on eco-efficiency, We take a decentralised approach we are able to maintain our focus on to environmental management . business growth while also reducing our Environmental risks and impacts arise environmental impacts . We aim to use at the business unit level and are best Read About… innovation and technological advances managed at that level by individual to drive continuous improvements business units . As a result, we do not • Our new climate change strategy across our portfolio of businesses . have a Group wide environmental – setting a target for a 10% reduction management system, rather business in GHG intensity by 2020 . Our business units work to improve units develop their own systems to • Our recent environmental risk review performance, based on their individual suit their varied operations . Business of key business units . environmental impact profiles, which units are also responsible for setting • The technical solutions we deploy vary immensely depending on the their own environmental improvement to reduce emissions and waste . business sector involved . For example, targets (see pages 48-71) .

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Climate change Maersk position on Climate Change Climate change remains the key envi- climate strategy and position, which ronmental issue across the Group . Not includes clear support for the UN goal Maersk recognises that climate change only are we engaged in fossil energy of keeping global warming below two poses substantial risks to both Maersk production, but our shipping opera- degrees Celsius . The strategy out- itself, and society at large . In line with tions are a major fossil fuel consumer lines our approach to reducing GHG government agreements made at the as well as being one of the most carbon emissions from our operations and Copenhagen Climate Conference in 2009 efficient means of transporting goods . establishes a new overall position on and in order to avoid dagerous climate Climate change, therefore, poses risks climate change . change, Maersk supports the position and potential costs, as well as busi- that adequate efforts must be made to ness opportunities for the Group . A new target for emissions ensure that global warming is stabilised Our approach to emissions reduction below two degrees Celsius, and that those Due to our scale and position in ship- is to work on improved efficiency in a efforts are based on the best available ping, we can play an influential role decentralised manner . We aim to pri- scientific knowledge as currently provided in developing solutions and raising oritise efficiency gains in areas where by the IPCC 1 assessment reports . industry standards in relation to carbon our investments can have the largest emissions and climate change . Not impact and where it is possible to take Key principles: only can our actions go a long way to re- solutions to market . This is demon- • Climate change cannot be seen in ducing our own impacts, they can also strated by our leadership position in isolation from the broader macro-eco- help raise the bar in the entire sector . container shipping, where Maersk Line nomic and social development per- We embarked on a journey to reduce is pursuing a goal of 25% relative CO2 spectives . The challenge is to address our carbon footprint in 2009, setting reductions by 2020 over a 2007 base- climate change while, at the same our first Group wide reduction target . It line (see page 50) . time, supporting economic develop- was a relative target aiming for a 10% ment for an increasing population and reduction in Greenhouse Gas (GHG) We also believe it is important to show middle income classes . Access to se- intensity by 2012 against a 2007 base- general progress and as a result we cure energy is crucial to ensure devel- line . By the end of 2010, we had already have set a target for relative CO2 emis- opment and build new infrastructure achieved a relative reduction of 13% . sion reductions for the whole Group . for many decades to come . • Governments and companies must NEW CLIMATE STRATEGY Trusting our efficiency potential, we each play their role . Governments must During 2011, we developed a new commit to reduce our relative C02 appropriate legislative frameworks based on creating level playing fields . • Maersk, as a company, is willing and preparing to compete on carbon efficiency . Carbon efficiency profile 2011(weigthed per BU) • Shipping is the most carbon efficient way to transport goods and Maersk

Total carbon footprint in 2011: 41,000 million tonnes of CO2 eq . believes that an efficient shipping sector is a key part of the solution to cre- 3.6 ate a future, lower carbon economy . Maersk is determined to set the bar 6.1 7.0 Maersk Line high on carbon efficiency and take a Maersk Oil leadership position in transforming Percentage Maersk Tankers the shipping sector . Others business units • Maersk holds that one part of its contri- 83.3 bution in creating a lower carbon economy will be to expand business at the expense of less efficient companies .

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emissions by at least 10% by 2020 We stated in last year’s Sustainability from 2010 to 2011 . However, this was against a 2010 baseline . At an equiva- Report that we would also establish a outweighed by the extra amount of en- lent level of business activity as today, long term target . We have since come ergy it takes to produce oil from ageing and with the same portfolio composi- to realise that there is not enough fields . In Maersk Tankers the decrease tion, this target equates to a reduction of almost 400,000 tonnes of CO2 each year . During the target period, we are “ Our approach to CO2 reductions is to focus also targeting business growth, which means that our absolute emissions where we can achieve the greatest impact may not decrease . and where we get the maximum benefit from our investments . By unleashing shipping’s low carbon In our shipping business, it is part of our approach to take market share potential we aim at being part of the solution .” from less efficient lines and, as a result, John Kornerup Bang, Lead Advisor, Climate and Environment our emissions might increase but the total emissions of the sector will decrease even more . business or economic certainty beyond in efficiency was mainly due to longer 2020 to establish a credible and realistic waiting time and a decrease in average A major assessment of efficiency po- target over the long term, and we have vessel size . tential is still going on in our container therefore decided not to set this target . business and we expect to be able to Our absolute emissions went up by strengthen this target during 2012 Performance more than nearly 9% or 3 .34 million when this review is finalised . From 2010 to 2011 the group as a tonnes of CO2 . This increase is mainly whole improved its CO2 efficiency due to increased business activity in Setting a relative target across a slightly, representing a reduction in our container business, where fuel diverse portfolio of businesses emissions of approximately 150,000 consumption increased reflecting a poses a challenge of how to compare tonnes of CO2 at equal business acti substantial increase in numbers of and consolidate improvements in vity . This is the first year of our new CO2 vessels operating . With this increase carbon efficiency . To measure Group emissions reduction target and the in fuel consumption follows also an performance, the carbon efficiency improvement is less than half of that increase in other air emissions . of each business unit is collated into needed annually to achieve this target . a Group index . The baseline year for Whereas our container business FUTURE DEVELOPMENTS our GHG target, 2010, is the first year continued to improve its efficiency We will investigate and develop a num- of the index and has a value of 100 . we have seen significant efficiency ber of important subjects in the coming Contributions are weighted within the decreases in Maersk Oil and in Maersk years . These include assessing the cli- Group index figure to reflect business Tankers . Maersk Oil has made a major mate change impacts of our long term units’ share of the Group’s overall effort on reducing flaring and has investments and exploring climate emissions . reduced emissions from flaring by 40% change impacts in our value chain .

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Environmental risk review

We completed a screening of Maersk’s • CO2 emissions • Waste significant environmental risks across • Fuel consumption • Ballast Water our portfolio of businesses during • Biodiversity (with specific importance 2011 . The results of the exercise clearly to ocean governance and the Arctic) Accordingly, we will increase our Group indicate a primary and secondary list of wide focus on preparedness for Tier risks that are of particular importance: Secondary risks: 3 oil spills and also on biodiversity • Tier 2 oil spills (large oil spills related work, including in the Arctic

Primary risks: requiring external resources) region . Regarding NOx, SOx, waste and

• Tier 3 oil spills (major oil spills requir- • NOx ballast water we are pursuing a range

ing substantial external resources) • SOx of technical solutions .

Seeking technological solutions

We are searching for and testing projects with oil production by using lead to the spread on non-native or technological solutions for many CO2 from power plants or other indus- invasive species in other marine envi- environmental issues of concern to trial sources for enhanced oil recovery ronments where it is discharged . the Group, a selection of which are where CO2 is pumped into oil wells to described below . facilitate oil extraction . Maersk has ballast water management plans and conducts internal ALTERNATIVE USES FOR CO2 BALLAST WATER and mid-ocean ballast exchange to Maersk Oil is investigating potential TREATMENT SYSTEMS minimise potential risks . From 2012 business opportunities that combine Ballast water picked up in one marine and over the next five years regula- Carbon Capture and Storage (CCS) environment can, without treatment, tions will be coming into force which

“Oil in water” In response to the criticism, Maersk Oil ter to periodically review performance in Denmark hired an external consultant, Lloyd’s against its procedures and to identify Register, to review the system for test- areas where further clarity can be pro- ing the oil in water concentration and vided . Maersk Oil also responded to the In December 2010, Danish media the quality and consistency of Maersk criticism of the platform management challenged Maersk Oil’s system for Oil’s reporting of this information to on Tyra, making changes to manage- monitoring the amount of oil al- the Danish Energy Agency (DEA) . In its ment and hiring teambuilding coaches lowed in water discharged from its report, Lloyd’s Register concluded that to improve collaboration between North Sea reservoirs and questioned Maersk Oil had established the ap- managers and their employees . whether Maersk Oil manipulated daily propriate procedures and guidance to measurements so as to under report enable operations to meet the expecta- Maersk Oil is committed to reducing the discharged oil from its installations of the discharge permits issued its environmental impact, and is tions . Danish newspaper Politiken by the DEA . Lloyd’s Register also iden- continuously working on reducing the reported that employees at one tified areas in which the process could amounts of oil in discharged water, platform felt pressured by platform be improved and an updated procedure which in 2011 resulted in a more than management to cheat with the timing for the sampling process was issued . 25 percent improvement on average of the sampling . Maersk Oil has retained Lloyd’s Regis- relative to the levels of 2010 .

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requires on-board treatment systems Meeting these new requirements will to reduce NOx emissions by 80% . We that remove living organisms from necessitate a significant investment are involved in a project testing an ballast water . over the next five years and we are cur- exhaust gas recirculation system that

rently investigating trading patterns in is targeting a 50% reduction in NOx We have been developing a ballast wa- relation to ECAs, technical possibilities emissions . The project is on track and ter treatment system through a joint and financial considerations to estab- has so far shown good results . We venture company and we are in the lish the most cost effective approach have also ordered two new ships with process of having the system certified and apply the most suitable techno NOx reduction systems; one with a new by the International Maritime Organisa- logy for each of our ships . The current generation exhaust gas recirculation tion . This process should be complete options include: main engine and one with a water in- by the end of 2012 . At the same time fuel system to reduce NOx . The vessels we are reviewing all ships in the Maersk Fuel switching – to low sulphur will be ready in 2013 . Group, assessing available systems fuel (which can be up to 40% more and the timescale for including each expensive) when ships enter ECAs . It is MINIMISING OIL POLLUTION ship in the new IMO regulations . a practical option for ships that do not When producing and transporting oil stay in ports long . there are routine discharges of oil into WASTE DISPOSAL water, which may potentially affect

Our environmental policy does not al- Scrubbers – remove SOx emissions marine life . Maersk Tankers is target- low the disposal of non-biodegradable from exhaust gas, and we work with ing 5 parts per million (ppm) as the waste at sea . With our ships calling at all major suppliers of scrubber techno standard for its fleet compared to an ports all over the world, finding suitable logy to review the best options . One or allowable limit for oily water discharges waste and recycling facilities can be a two pilot installations will be tested in of 15 (ppm) . Recently acquired tankers challenge . In 2008, we started to review 2012 . were fitted with new oil filters in 2011 and rate port vendors for the effective- and the remaining tankers will be com- ness of their waste disposal facilities . Liquid natural gas (LNG) – burns pleted in 2012 . We assess 160 vendors and these are cleaner and offers significant reduc- rated at least once every two years . tions in SOx, NOx and CO2 emissions, RECYCLING THE WORLD’S but applying LNG technology to exist- LARGEST CONTAINER SHIPS In 2012, we will conduct a more in ing ships is difficult and costly . We are, Maersk has designed and ordered the depth assessment of all deep sea however, reviewing options for LNG as construction of 20 of the largest and ports in Northern Europe on their part of the Green Ship of the Future most CO2 efficient container ships in environmental performance, including Forum in Denmark through tests on a the world, known as Triple-E class . waste disposal . tanker ship . We have decided to make as many of REDUCING SULPHUR EMISSIONS Biofuels – for which we have com- the materials as possible recyclable, The fuel oil used in shipping contains pleted and analysed combustion trials reaching 90% recyclability of the ships, relatively high levels of sulphur, which on a Maersk container ship . Although and we have held workshops with our is released as SOx emissions when the further tests are required, the results Korean ship builders to discuss options fuel is burned . International Maritime show that rapeseed based biofuels and build capacity to enable this . The Organisation regulations coming into can effectively be blended with regular aspirational target is to be able to build force in 2012 will reduce the allowable fuel . In addition we are involved in two new ships from old ones . sulphur content for marine fuel . For further biofuels projects; one with the global waters the allowable limit for US Navy and the other a partnership sulphur in fuel will drop from 4 .5% to with Copenhagen University, the 3 .5% and the limit for coastal Emission Danish Technical University and other Control Areas (ECA), which run 200 leading companies . miles out from the coastline, will be 1% sulphur content . From 2015, these lim- REDUCING NOx its drop again to 1% for global waters Combustion of all fuels releases NOx and 0 .1% for ECAs . and by 2016 new ships will be required

A P. . Moller - maersk group Group Performance Sustainability Report 2011 45

Anti-corruption

Maersk’s values and our Principles of increasingly strict requirements from cus- • Following roll out in 2010 and 2011, Conduct set high ethical standards for tomers, businesses are improving anti- standard anti-corruption clauses are all of our business dealings . We also corruption systems . The Maersk anti- now being used in all key contracts expect the same high standards from corruption policy outlines our approach . across the business . During 2011, our business partners and suppliers . we revised our contractual clauses, 2011 PERFORMANCE risk assessment and due diligence Corruption poses pressing challenges • In 2010 and 2011, we trained more requirements in light of regulatory for business . It increases costs, than 1,000 key staff in over 50 ses- changes on corruption and bribery . destabilises fair competition and un- sions held in more than 20 countries dermines the reputation of individual (see table below for 2011 training businesses and whole sectors . Corrup- numbers) . These included managers, tion impedes economic development legal staff, human resources manag- Read about… and the creation of strong regulatory ers and employees working to secure and governance frameworks, on which licences, permits or contracts with • Our partnerships and training aimed at businesses rely . government offices . raising awareness on anti-corruption and reducing facilitation payments . Action to tackle corruption has grown . • We launched a broad based e-learn- • The Maersk Whistleblower system Regulations and enforcement, particu- ing programme on anti-corruption, that allows employees to anonymously larly in the USA and UK, have been which is available to employees of all report suspected unethical behaviour . strengthened . In response to this, and to business units .

Completed anti-corruption training 2011

Measured in numbers Maersk Damco** Maersk Oil APM Maersk Maersk Svitzer Safmarine Line & Gas Terminals Tankers Drilling, FPSOs & Supply Service

Total BU a 19,720 c 196 15 113 55d 65 3 54

Senior Management b – 1 0 0 – 7 0 0

Country / regional management – 105 1 5 – 11 1 1

Managers and heads of dept . – 60 3 25 – 15 0 7

Legal / compliance staff – 10 1 1 – 2 0 0

Staff w/contact to public officials – 15 10 72 – 40 2 46 and others

2011 Maersk Group business unit anti-corruption training – Actual numbers of staff trained . a Dansk Supermarket and Maersk Container Industry has not conducted any anti-corruption training in 2011; b Damco training includes in person and web-ex traininig; c Maersk Line has conducted e-learning for 77% of all employees as well as in person training for approx . 474 key staff; d Additional third party stakeholders also trained .

A P. . Moller - maersk group Group Performance Sustainability Report 2011 46

• The Maersk whistleblower system • In response to the UK Bribery Act was launched in January 2011, and coming into force in July 2011, we FACILITATION PAYMENTS is available in 130 countries in more analysed our systems against the re- than 40 languages . The system quirements of the act and concluded Facilitation payments are a reality in allows employees to report suspi- we were basically compliant with the global transport businesses, being cions of wrongdoing or unethical Act’s requirements for procedures . a widespread phenomenon in some countries despite being illegal locally . With thousands of port calls each year, “ We are making progress in combating corruption . we come into contact with low ranking government and customs officials on a We are steadily raising awareness on anti- day-to-day basis with a high risk of facili- corruption and implementing that awareness tation payments being demanded . Our into daily operations, through for example, due ultimate goal is to eliminate facilitation payments . We recognise that this goal diligence activities, monitoring and training .” will take some time to achieve . Joseph Simon, Senior Legal Counsel Our policy is always to refuse demands for facilitation payments and to try to behaviour specifically in relation to IN PARTNERSHIP WITH THE UNGC avoid them wherever possible, for ex- fraud, corruption, competition, law We are closely involved with the ample by requesting an official receipt or breaches, insider trading, foreign UN Global Compact (UNGC) on asking to speak to more senior officials or trade controls violations, deliberate anti-corruption as participants in employees . If it appears that a payment is breaches of IT security, discrimina- anti-corruption working groups . These unavoidable, our policy is to document all tion and harassment . All calls are include our Group Legal Compliance payments made . investigated following Group guide- Officer representing Maersk in the UN lines . Global Compact anti-corruption working group as well as involvement in two • There has been a limited number of sub-working groups: • A representative from Maersk Oil reports of alleged violations of the co-chairs another group assessing law and/or Group policies made to • We co-chair the group looking at corruption in the oil and gas sector . the Group’s whistle-blower system . best practice in tackling potential The working group is exploring chal- Such reports are – within applicable corruption in public-private partner- lenges and solutions to bribery and data privacy regulations – all being ships, which aims to generate a best corruption problems in the sector, in investigated and the Group takes practice guidance document for this which large scale bribes to gain ac- appropriate action when allegations area . cess to resources or free movement are substantiated . of goods are a real risk .

Anticipated anti-corruption training by end 2012

Measured in percentage Maersk Damco Maersk Oil APM Maersk Maersk Svitzer Maersk Group Lineb & Gas c Terminals Tankers c Drilling, Container Procure- FPSOs & Industry d ment Supply Service

Total BU a 99% 25% 99% 35% TBD 35% 50% TBD 99%

2012 – Maersk Group business unit anti-corruption training – Anticipated percentages of staff trained . Training will include the e-learning system for all Business Units introduced in Dec . 2011 and in person training for selected staff . a Dansk Supermarket has no plans of conducting any anti-corruption training in 2012; b Safmarine will be merged into Maersk Line in 2012; c Maersk Tankers and MOG will initially focus e-learning on selected staff . d Maersk Container Industry will begin training in 2012 although the anticipated number of staff to be trained has not been determined .

A P. . Moller - maersk group Group Performance Sustainability Report 2011 47

Value chain

Responsible procurement

As a multinational enterprise, with Implementing the Code of Conduct more than 100,000 suppliers in more We started the roll out of our Code of Targets 2012 than 100 countries, we have a good Conduct to suppliers in August 2011 . opportunity to influence our suppliers’ The aim was to have around 1,300 key • Complete assessment of business practices . This entails articulating very suppliers, representing approximately practices for the prioritised suppliers clear requirements towards the suppli- 50% of our overall procurement spend, within 50% of procurement spending . ers and helping suppliers assess their register in our online Responsible Pro- • Approximately 400 buyers to be own performance . curement system and thereby acknowl- trained in Responsible Procurement In January 2011, we began the global edge the Third Party Code . In 2011, our practices . roll out of our Responsible Procure- purchasers sent invitations to 1,122 • Approximately 1,000 buyers to comment programme across all business suppliers, of who 558 have registered . plete the e-learning course . units . The programme focuses on • Business unit strategies on responsi- continuous improvement in suppliers’ We take a priority-based approach in ble procurement to be customised to understanding of sustainability, risk assessing suppliers against the require- meet industry-specific challenges . management and capacity building . ments in the Code . The priority is set based on total spend with the supplier, CODE OF CONDUCT strategic importance of the category, Our requirements are described in a country of operation and product or take our commitment to responsible Third Party Code of Conduct, which service . Our purchasing personnel deter- procurement very seriously . As a result, reflects our commitment to interna- mine whether additional information is we require suppliers of a certain size tional guidance on sustainable supply required in a form of a CSR report, certi- to sign a contractual commitment to chain management: ILO conventions, fication, self-assessment questionnaire implementing the Third Party Code of UNGC principles and other guidance or an independent third party audit . Conduct or an equivalent alternative . documents . The Code sets forth requirements towards Maersk suppliers We use a range of auditing companies Training our buyers in the areas of human rights, labour, to carry out supplier audits, and our Our pilot with 500 suppliers in 2010 environment and anti-corruption . It buyers are often present during the au- showed how important it is for our also provides an extensive section of dit . A findings report, including recom- buyers to be adequately equipped for a guidelines and best practices, which mendations, is provided to the supplier critical and constructive dialogue with gives examples for each of the require- and the purchaser after the audit . The suppliers . As a result, prior to global ments in the Code . supplier is responsible for establishing roll out, we launched two training an improvement plan and timeline to courses on responsible procurement: All businesses benefit from a shared un- address the findings of the audit . a 45-minute e-learning module and an derstanding in business relationships, in-depth full day course . and we believe that the Third Party Code While we understand that it may take will help us and our suppliers establish a suppliers some time to meet all of In 2011, 661 colleagues completed the shared understanding of what it takes the requirements of the Code, we also e-learning course and 253 took part in to operate a responsible business . want them to understand that we the full day face-to-face training course .

A P. . Moller - maersk group

Business unit performance Sustainability Report 2011 49 Business unit performance

As a global conglomerate with over 100,000 employees, conveying information on all aspects of our sustainability performance is challenging. The following pages aim to provide insights into how our business units are addressing sustainability activities in their operations.

Prioritised issues Business unit data Although we have conducted a mate- Key sustainability data for each busi- Business unit Page Own sustainability report riality assessment at Group level, the ness unit are included, However, the diversity of our business calls for indi- data presented do not add up to the Container activities vidual analyses at business unit level. consolidated figures presented on Maersk Line 50 BU pages cover prioritised issues of page 11, which also include input from Damco 52 which some are covered in the Group headquarters and minor business Oil and gas activities pages. All Issues cannot be covered units. Maersk Oil 54 due to limited space, but reference is Terminal activities made to the individual business unit In this part of the report we only APM Terminals 56 web-pages. Links to these can be include selected key performance data found on the respective business unit for each business unit. Full sets of Tankers, offshore and other shipping activities page in the report. data, consolidated for the Group, per segment and per business unit, can be Maersk Tankers 58 Integrating sustainability found on our website. Maersk Drilling 60 Business units are mid way through Maersk FPSOs 62

implementing the requirements of the A number of business units produce Maersk Supply 64 Group sustainability strategy, which calls their own sustainability reports as Service for full integration of sustainability by shown in the table, or provide more Svitzer 66 the end of 2013. Progress against this information on their own websites. Retail activity goal is also covered in each summary. Where relevant, links to this additional Dansk Supermarked 68 information are provided in each busi- Targets ness unit summary. Other businesses Business units are encouraged to set Maersk Container 70 targets against their key sustainability Industry indicators, and where these have been Read more Yes, to be published in the 1st quarter of 2012 www.maersk.com/sustainability Partly, Action Plan published end year 2011 set to date they are included. No

A.P. Moller - maersk group Container activities Sustainability Report 2011 50

Maersk Line is the and act as a catalyst for economic 8%12 lower on CO2 emissions compared development, growth and improved to industry averages. By virtue of our largest shipping line productivity. However, the shipping in- “Daily Maersk” service we are 13% lower in the world and by dustry faces a significant sustainability on the important Asia to Europe trade challenge, not least in terms of carbon route. We have achieved a 15.6% CO2 re- virtue of our size and emissions. duction per container (TEU) since 2007. reach, we strive to lead positive change across OUR EMISSIONS Maersk Line’s fuel switch programme Our absolute greenhouse gas emis- reduced SOx emissions by an esti- the industry. sions rose by 11%. This increase is mated 1,480 tonnes in 2011. Fuel mainly due to increased business switches were implemented in Singa- activity. In 2011 we added 70 vessels pore, New Zealand and Gothenburg.

Sustainability in our business to our fleet and consequently our ab- However, absolute SOx emissions rose Around 90% of world trade is carried solute fuel consumption increased. as our fleet expanded and absolute by the international shipping industry. fuel consumption increased. Through our brand names Maersk Environmental considerations are Line, Safmarine, Maersk Line Limited integral in the development of our new We believe that environmental (MLL), MCC Transport, Seago Line and services and vessels, and increasingly performance must join delivery time Mercosul we provide container trans- vital to our customers. Measured per and cost as hard criteria for competi- portation services across the world container unit, we are approximately tion in the container industry, and to

Targets 2011 Performance 2011 targets 2012

• 25% CO2 reduction per container (TEU) from • 15.6% CO2 reduction per container (TEU) • 25% CO2 reduction per container (TEU) from a owned and chartered ships from 2007-2020 from owned and chartered ships by end 2011 owned and chartered ships from 2007-2020 a (baseline 2007) a

• Minimum 10 fuel switch implementations • By end 2011 six fuel switch programmes have • Minimum 10 fuel switch implementations before 2015 been implemented before 2015

• 15% reduction in TRCF (2010 baseline) b • TRCF: 13% reduction b • Drive towards zero accidents b

a Based on the CCWG methodology which excludes utilisation. b This target is based on operational scope. Verification of 2011 data not yet final.

12 Based on mid 2010 industry emissions data collected by Clean Cargo Working Group (CCWG).

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enable informed decision making by as a means of promoting both the customers. continued growth of Maersk Line and Prioritised issues global social and economic develop-

CRADLE-TO-CRADLE THINKING ment. As part of our growth strategy, • CO2 and SOx emissions – Shipping

Maersk Line’s next generation of ships, we are investing in building an even is a large emitter of CO2, SOx and other the Triple-E class, will come with a Cradle stronger understanding of the social, air emissions. • Safety – The safety of our employees is a key focus we will not lose sight of. “ In Maersk Line, we have always taken an • Extending the socio-economic benefits of trade – Trade fuels eco- active role in defining the future we want to nomic growth and social development be part of. We will continue to do so by challenging and Maersk Line is a key part of this. the industry norms, invest in innovation and improve to make our daily operation more sustainable.” Søren Skou, CEO of Maersk Line workplace injury that occurs in order to identify any trends and prioritise our response. In 2011, manual handling to Cradle passport describing the mate- economic and environmental impacts and maintenance activities were the rial composition of the ship. Our cradle- of trade growth in a range of emerging highest risk activities, the latter show- to-cradle partner, EPEA, estimates that markets. This is demonstrated in a ing a 40% increase. In response, 2012 the energy consumption and CO2 emis- comprehensive study on the chal- will see an even greater focus on main- sions for recycled steel are 50% less lenges and benefits of unlocking the taining the highest standards of care in than those for new steel. We estimate export potential of the Indian banana this area of work. Our “Safer Mooring“ that our new Triple-E ships, currently un- industry (See page 15 ). campaign in 2011 reversed the prev der construction, will be 90% recyclable ious year’s increase in accidents during without loss of material quality. SAFETY mooring operations, resulting in a 30% We aim continuously to improve safety reduction. In 2011 we also launched an THE SOCIO-ECONOMIC processes and behaviours until we have initiative to improve reporting of near BENEFITS OF TRADE achieved our goal of zero accidents. The misses on our ships, resulting in an We believe that international trade can Total Recordable Cases (TRC) went increased reporting by 240%. bring prosperity and social progress. from 143 to 140 while the frequency Where possible, we aim to identify and per million exposure hours (TRCF) was Read more www.maerskline.com develop future sources of trade growth reduced by 13%. We investigate every

Maersk Line key sustainability figures 2011 Social performance – safety 2009 2010 2011 Number of full time equivalents (FTE) number 29,977 b 29,347 b 30,792 Lost time injury frequency (LTIF) * frequency 1.14 0.83 0.57 Fatalities * number 0 1 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 32,641 c 30,766 c 34,168 - of which direct and indirect CO2 (scope 1 & 2) 1,000 tonnes 32,438 c 30,575 c 33,913 Economic performance Revenue USD million 18,288 a 24,022 25,108 a Revenue re-stated due to change in reporting activities. c Changed due to exclusion of CO2 emissions from reef- * Operational scope. b Group principle on FTEs adjusted to include joint ven- ers in terminal and re-stated CO2 figures for diesel and tures according to regular financial consolidation rules. natural gas.

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Damco is one of the not only our customers, employees and recently introduced Damco Packaging shareholders, but also society at large. Optimisation Service. We believe these world’s leading provid- We aim to help our customers to services have the potential to reduce ers of freight forward- optimise their supply chains with more logistics costs by more than 10% while ing and supply chain efficient – and lower carbon – logistics minimising the environmental impact solutions. Importantly, our technology, of the supply chain. During a time of management services. expertise and end-to-end control allow rising consumer expectations regard- for much greater traceability. This is ing carbon reduction and considerable vital to the effective measurement and economic and financial stress, the ef- For more than 100 years, we have been management of the economic, social ficiencies generated by green logistics working all over the world to provide our and environmental impacts of goods services are of great importance to customers with transportation and lo- throughout their value chains, and is our customers. In addition to helping gistics solutions that work for their busi- something we expect customers will our customers to manage their own ness. Damco is an asset-light logistics increasingly demand in the future. impacts, we also have a responsibility company, meaning that we don't own to maintain high standards in our own vessels or trains only have relatively few Green business operations. own trucks and warehouse facilities. is good business Damco offers industry leading green Cutting our own emissions Sustainability in our business logistics solutions, including our During 2011, our carbon intensity At Damco, we believe that our reach and proven Supply Chain Carbon Check increased by 5% in 2011. This is mainly end-to-end logistics expertise can benefit and Carbon Dashboard and the due to the integration of the acquired

Targets 2011 Performance 2011 targets 2012

• 10% reduction in LTIF (2010 baseline) a • 54% LTIF reduction from 1.75 to 0.81 • 10% reduction in LTIF (2011 baseline) a (2010 baseline) a

• Reduce CO2 intensity by 30% by 2014 • CO2 intensity reduced by 8% (2009 baseline) a • Reduce CO2 intensity by 30% by 2014 compared to 2009 a from a 2009 baseline b

a This target is based on operational scope. a different data collection and reporting process and carbon reduction target by 2014, but within a shorter b The baseline has been changed from 2008 to 2009 as a direct comparison with 2009, 2010 and 2011 data timeframe. the 2008 carbon emission data were obtained using was considered inaccurate. We maintain the 30%

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Chinese freight forwarding company comprehensive anti-corruption pro- NTS and our new and large customer gramme throughout the organisation. Prioritised issues service centre in Chengdu, China. Our The main elements of the programme target is to reduce carbon intensity by are top management commitment, • Green business – Logistics solutions 30% by 2014 based on 2009 levels. risk assessment, standards & controls, with low environmental impact are 8% have been achieved to date and training, monitoring and auditing. important products for our business. despite the slight carbon intensity in- • Combating corruption – We’re crease in 2011, and we expect to reach Health and safety taking a lead in improving business our target by end of 2014. Damco monitors the lost time injury practices. frequency (LTIF) on a monthly basis in • Environment – Our business opera- As more than half of our greenhouse each Damco region. In 2011, the global tions have a carbon footprint. We have gas emissions are generated in our LTIF fell to 0.81, down from 1.75 in a responsibility to reduce our impact. warehouses, this year we launched a 2010 and 5.55 in 2009. This is well • Health & Safety – Providing a high project with Siemens Building Tech- ahead of our target for a 10% year-on- quality and safe place to work is vital nologies to analyse and improve en- year reduction. Awareness training and to our success. ergy efficiency at our warehouses. This systematic accident investigation have showed potential energy savings of helped us to achieve this improve- over 25%. Once concluded in Q3 2012, ment, but Damco continues to focus a decision will be made on what criteria on safety. We aim to reduce the LTIF by business strategy. We will be offering to use to select other warehouses another 10% in 2012. Alongside this, sustainability training sessions to our that could benefit from a roll out of the we are implementing a Global Labour management teams during 2012 and initiative. Principles training programme, through will continue integrating sustainability which management teams will com- into our business processes. Combating corruption plete a risk assessment and identify Corrupt practices undermine fair com- what gaps might exist between the For us, integrating sustainability also petition and stifle economic growth principles and current practice. The gap relates to our own supply chain. We and social progress. As one of the analysis will then be used for planning, are implementing the APMM global leading logistics operators in new and prioritization and follow-up. Responsible Procurement Programme emerging markets, Damco can contri that aims to ensure our suppliers bute to raising the standards of busi- Integration of sustainability adhere to high ethical and operational ness practices to combat corruption. Recognising that sustainability is standards when conducting business increasingly important to our business on our behalf. We are committed to eliminating and our customers, Damco is develop- corrupt practices in our industry. In ing its first sustainability strategy, Read more www.damco.com 2011 Damco began implementing a which will be fully aligned with our

Damco key sustainability figures 2011 Social performance – safety a 2009 2010 2011 Number of full time equivalents (FTE) number 10,979 a 10,312 a 10,657 Lost time injury frequency (LTIF) * frequency 5.55 1.75 0.81 Fatalities * number 2 0 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 39 b 39 b 42 - of which direct and indirect CO2 (scope 1 & 2) 1,000 tonnes 38 b 38 b 42 Economic performance Revenue USD million 2,223 c 2,691 2,752 a Group principle on FTEs adjusted to include joint ven- b Subsequently changed due to inclusion of scope-2 CO2 c Revenue re-stated due to change in reporting activity. tures according to regular financial consolidation rules. emissions from district heating. * Operational scope.

A.P. Moller - maersk group Oil and gas activities Sustainability Report 2011 54

Maersk Oil is an and engaging stakeholders and their Oil to be regarded as a natural partner interests is an increasing priority. We for governments and peers. international oil and strive to have a positive impact where gas company with we operate through local employment, SAFETY operated production training, research and investment. In Safety is a core value for Maersk Oil. areas such as the environment, specifi- From top management down, Maersk of 650,000 barrels of oil cally CO2 emissions, Maersk Oil contin- Oil made a commitment in 2011 to an equivalent a day. ues to improve on performance. “Incident-Free Maersk Oil“. This principle is based on a belief that incidents are Demand for energy has increased never inevitable and never acceptable. significantly over the last 20 years es- To embed this approach throughout Maersk Oil operates offshore in Den- pecially in emerging markets. Access to the organisation, 80% of all Maersk mark, UK and Qatar, as well as onshore new resources is taking the industry into Oil staff and over 1,000 contractors in Kazakhstan. Exploration activities challenging environments such as deep- attended workshops that encouraged are ongoing in Angola, Brazil, Norway, water and the Arctic. In Maersk Oil we a personal commitment to safety as a the U.S. Gulf of Mexico, Greenland and are committed to identifying and under- core value and empowerment to speak in the producing countries. standing the impact of our operations, and act on safety issues. consulting with relevant stakeholders, SUSTAINABILITY IN OUR BUSINESS designing projects to avoid adverse We recognise that safety is not just We recognise that our activities have an impact and reducing waste, emissions about human factors; we must ensure impact on employees, the environment and discharges. This is not only the right our systems and controls are robust and local communities, and identifying thing to do but also crucial for Maersk and effective to prevent any accidents.

Targets 2011 a Performance 2011 a targets 2012 a

• LTIF of zero • LTIF of 0.91 • LTIF of zero

• Reduce CO2 emissions from flaring by 50% • CO2 Emissions from flaring have been re- • Reduce CO2 emissions from flaring by 50% in 2012 (2007 baseline) duced by 40% in 2011 compared with 2010 b in 2012 (2007 baseline) a The LTIF is operational scope, the CO2 flaring target was also b This progress is stated as single year performance as the 2007 set as operational scope. baseline will be reviewed during 2012 to ensure its integrity.

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Assessments of process safety were are developing a more robust internal carried out in all our producing loca- business development process. To Prioritised issues tions and a process safety integrity help screen for initial environmental review was completed in Qatar to sensitivities we have started using • Safety –The health and safety of identify areas for improvement. Imple- the Initial Biodiversity Assessment employees. mentation of improvement plans and Tool (IBAT), which was developed by a • Climate & Environment – training is a 2012 priority. consortium of conservation partners, Engaging our stakeholders and con- to help provide key information to sup- tinually improving our environmental We continue to see a positive reduc- port critical business decisions at the performance. tion in lost time injury frequency with earliest possible stage. • Responsible Business Practices – a 24% decrease from 1.19 in 2010 Behaving in an open and responsible to under 1 in 2011. In 2012, we will RESPONSIBLE BUSINESS PRACTICES manner with our employees, inves- continue to strive for an incident free Maersk Oil believes openness and tors, business partners and local com- Maersk Oil. collaboration is essential to being a munities. responsible partner. This year we: Climate and Environment We recognise that we have a respon- • Joined the Extractive Industries sibility to engage constructively in cli- Transparency Initiative (EITI), a INTEGRATING SUSTAINABILITY mate change issues, primarily through global framework that promotes To position ourselves in a highly com- management of our greenhouse gas revenue transparency through public petitive global industry and enshrine a emissions. Maersk Oil uses manage- reporting of company payments and collaborative and responsible approach ment systems to control the impact government revenues. to business, a new vision was launched our production facilities have on the • Launched an “Action on Diabetes“ in 2011: “Maersk Oil, the natural up- environment. In 2011 we achieved our awareness programme in Qatar with stream oil and gas partner, navigating objective of certifying all producing the Supreme Council of Health, the complexity, unlocking potential“. units to the international standard ISO Hamad Medical Corporation, the Qa- 14001. In terms of management of tar Diabetes Association and Novo This vision and our commitment to greenhouse gas emissions we have Nordisk. (See page 16). safety is driving the transformation of stated our target to reduce flaring from • Inaugurated the Maersk Oil Research our culture and systems to provide a our operated facilities by 50% from & Technology Centre at Qatar’s Sci- strong foundation for future growth a 2007 baseline by 2012 and perfor- ence & Technology Park that focuses and sustainability. mance is on target to achieve this. on applied research and aims to As we look to access new environ- foster a generation of accomplished Read more www.maerskoil.com ments, both onshore and offshore, we Qataris.

Maersk Oil key sustainability figures 2011 Social performance – safety 2009 2010 2011 Number of full time equivalents (FTE) number 2,631 2,658 3,130 Lost time injury frequency (LTIF) * frequency 2.16 1.19 0.91 Fatalities * number 1 0 0 Environmental performance Greenhouse gas (GHG) emissions a 1,000 tonnes CO2 eq 3,789 b 3,027 b 2,869 - of which direct and indirect CO2 (scope 1 & 2) a 1,000 tonnes 3,463 b 2,820 b 2,640 Economic performance Revenue USD million 9,025 10,250 12,616 a b * Operational scope. Environmental data are not complete for non-operated Subsequently changed due to re-stated CO2 figures for fields in UK, Algeria and Brazil. diesel and electricity and altered CO2 conversion factor for vented gas.

A.P. Moller - maersk group Terminal activities Sustainability Report 2011 56

APM Terminals part of the way we conduct our busi- zero fatalities and zero incidents. ness. We generate profits for our own- Although we did improve our safety runs a network of 56 ers and aim to do so in a socially and performance by reducing the lost time container terminals and environmentally responsible manner. injury frequency (LTIF) from 4.36 in 2010 over 100 inland services to 3.46 in 2011, a 21% decrease, tragi- Safety is a top priority for our busi- cally 10 fatal accidents occurred in 2011. locations across 63 ness and is fully integrated into the countries, employing business strategy. We are developing This clearly demonstrates that we global minimum standards for safety must work harder to reduce severe in- 24,000 people as well as guidelines for environmental cidents, including fatalities. Our senior and social performance. leadership team has agreed on four key risk activities for APM terminals: APM Terminals plays a vital role in Our continuing expansion is focused lashing, working at heights, falling global trade through the operation of on high growth markets, especially objecs and traffic. Global minimum port, terminal and inland services facili- in Asia, South America and in Africa, standards will be established for these ties. Our aim is to be the most efficient where we are currently the biggest activities. In addition, we will begin and most profitable terminal operator terminal operator. measuring High Severity Incident with 65-70 terminals by 2014. Frequency from 2012 with the aim Continued focus on safety of eliminating severe incidents. On Sustainability in our business Safety continues to be a key priority for the 5th annual Global Safety Day, we We see sustainability as an integrated APM Terminals and our goal remains conducted a safety culture survey to

Targets 2011 Performance 2011 targets 2012

• 15% reduction in LTIF (2010 baseline) a • 21% reduction in LTIF from 4.36 to 3.46 a • 15% reduction in LTIF by 2012 (2011 baseline)

• 6% reduction in CO2 emissions per lifted con- • 4.3% increase in CO2 emissions per lifted • Reduce CO2 emissions from flaring by 50% tainer (TEU) (2010 baseline) b container (TEU) (2010 baseline) c in 2012 (2007 baseline)

• Oil spills: Zero a • Oil spills total 2.1 m3 a

a This target is based on operational scope. b 2011 target does not include inland services, inland c In 2011 additional diesel and electricity consuming services achieved a 15% reduction in absolute CO2 equipment was installed, due to a lower growth in TEU emissions. the efficiency decreased.

A.P. Moller - maersk group Terminal activities Sustainability Report 2011 57

get employees, contractors and third by more than 1.8 million litres in total party- perspectives on our safety per- through installation of hybrid engines, Prioritised issues formance. Just over 19,000 employees using both diesel and electricity, on and contractors responded and the 12 Rubber Tired Gantry (RTG) cranes. • Employee safety – The safety of our result will be used locally to inform The goal is to convert about 400 such employees is of paramount concern safety improvement plans. cranes, which estimates show would to us as an employer and to our cus- result in up to 20% reduction in the tomers and host governments. Environmental IMPACTs terminal GHG emissions per TEU. • Environmental impacts – Clean and We have continued to make improve- carbon and energy-efficient opera- ments in our environmental and Socio-economic Impact tions are an increasingly important social performance. However, our GHG A study carried out in 2009 demon- aspect of competition. emissions per twenty foot equivalent strated the positive impact on local • Socio-economic impacts – Our unit container have only decreased social and economic development operations can have a huge positive by 0.5%. This is to a large extent due since we invested in our Apapa ter- impact on the economic development to the inclusion of electricity used to minal close to Lagos. The study has of host countries. cool customers´ reefer units, and in proven very useful in engaging with many cases our equipment cannot our stakeholders, especially those in yet be assigned to individual cus- emerging markets, and has also helped tomers. As a consequence we have us to understand how we can best Integrating sustainability missed our target for 2011 and it will build positive relationships with the The area of safety is fully integrated be a challenge to realise our target communities where we operate. in our business strategy. Moreover, we of 25% reduction by 2020 against a are developing a questionnaire based 2010 baseline. Looking forward, the study will inform on the UN Global Compact (UNGC) a set of global APM Terminals guide- assessment tool to be answered by On the other hand, avenues for redu lines for conducting environmental our facilities in 2012. The aim of this cing our emissions are open to us and and social impact assessments for exercise is to help us gain a better a proposal to equip all APM Terminals new projects. These guidelines will be insight into how well we are integrating (both retrofitting and new terminal aligned with the International Finance the UNGC global principles into our projects) with electrified engines was Corporation (IFC) Guidelines and will business at a local level. endorsed by our senior management help us understand the needs of local team. We began in 2011 at two termi- communities and to contribute posi- nals in Malaysia and USA, who reduced tively to their quality of life. Pilot pro- their CO2 emissions by more than jects are planned in Moin (Costa Rica) Read more www.apmterminals.com 3,000 tonnes, and diesel consumption and Callao (Peru) beginning in 2012.

APM Terminals key sustainability figures 2011 Social performance – safety 2009 2010 2011 Number of full time equivalents (FTE) number 22,374 a 21,146 a 22,538 Lost time injury frequency (LTIF) * frequency 5.82 4.36 3.46 Fatalities * number 9 10 10 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 663 b 687 b 664 - of which direct and indirect CO2 (scope 1 & 2) 1,000 tonnes 608 b 604 b 635 Economic performance Revenue USD million 4,240 c 4,251 4,682 a b c Group principle on FTEs adjusted to include joint ven- Changed due to inclusion of CO2 emissions from reefers APM Terminals and Container Inland Services

tures according to regular financial consolidation rules. in terminal and inclusion of scope 2 CO2 emissions from consolidated. district heating. * Operational scope.

A.P. Moller - maersk group Tankers, offshore and other shipping activities Sustainability Report 2011 58

Maersk Tankers ships for transport of their cargoes. common Safety Management System Moreover, an increasing number of our resulting in a significant decrease in owns and operates one customers implement responsible the number of procedures. In 2011, of the largest fleets procurement programmes of their own we achieved an LTIF of 1.12, some way and increasingly turn to suppliers with short of our 0.6 target. A target of 0.8 is of crude oil, product, high ratings and standards. A strong in place for 2012. chemical and gas record on sustainability provides us carriers in the world. with a competitive advantage, as we To promote safe workplaces through- are able to assist our customers in out the fleet, two Safety Awareness reaching their ambitious targets and, Weeks (SAW) were held during the in doing so, we can play our part in course of 2011. Our vessel specific Sustainability in our business raising the bar across the oil and gas HSE Action Plan was also updated. The tanker industry provides a vital link industry. These initiatives encourage crews in the global energy supply chain and to think proactively about safety im- plays a key role in ensuring that the Health, Safety and Security provements on board their vessels. industry operates safely, efficiently and Safety is paramount to our business, with as few negative environmental and in 2011 we made further progress On the security front, we have taken impacts as possible. in upgrading our safety procedures. To steps to further ensure that our crews ensure our fleet is kept updated with and vessels are protected from pirate As more new tonnage is added to the the most recent regulations and indus- attacks by approving the use of armed market, oil companies become try requirements, all Maersk Tankers guards on board in certain circum- more stringent in selecting the ships are now aligned to a single stances.

Targets 2011 Performance 2011 targets 2012

• LTIF of 0.6 a • LTIF of 1.12 a • LTIF of 0.8 a

• Reduce CO2 emissions by 15% per cargo unit x • CO2 emissions per cargo unit x nautical mile • Reduce CO2 emission by 15% per cargo unit x nautical mile by end 2015 (2007 baseline) have been reduced by 4.8% (2007 baseline) nautical mile by end of 2015 (2007 baseline)

• Zero tanker spills a • Zero tanker spills recorded a • Maintain our record of zero tanker spills a

• Green ports - rank the most used ports and • Green ports - most used ports ranked in 2011. audit two major ports in 2011 No major ports have been audited

a This target is based on operational scope.

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Environment Operating responsibly We have achieved our target of a 5% During 2011, we took further steps to Prioritised issues reduction in CO2 emissions by 2012, extend responsible business practices although the first quarter of 2011 had throughout our business: • Health, Safety and Security – a bumpy start as our relative CO2 emis- Health, safety and security are core sions were up a few percent compared • Initiating a Responsible Procurement to the success of our business and to our 2007 baseline, mainly caused Programme with a particular focus require constant attention to stay on by slightly poorer market conditions. on our time charter partners and top of new and existing challenges. This has challenged us in our efforts repair yards. This will help to ensure • Environment – Improving fuel to improve our efficiency per vessel that high supply chain management efficiency can reduce our costs and in relation to the Energy Efficiency standards are maintained. our carbon emissions and improve Operational Index (EEOI) and Energy • Carrying out anti-corruption and our competitiveness. Efficiency Design Index. Our target is a fraud awareness training and sharing • Operating responsibly – Aspiring 15% reduction by 2015. We conducted knowledge with staff, both shore- to be a leader on sustainability within workshops in India and the Philippines side and on board. our sector means acting responsibly to build awareness about sustainability • Closing of the last of the gaps in our across all aspects of our business. among new cadets. Among other things, responsibility approach identified they were encouraged to come up with during 2009 UN Global Compact Gap ideas to improve energy efficiency. analysis.

We are developing KPIs targeting a Integrating sustainability BP Shipping CEO’s reduction in the number of voyages At Maersk Tankers we recognise the HSSE Awards carried out by empty ships and an importance of making our sustainabil- increase in the number of “virtual arri ity ambitions a key driver of excellence 2011: Maersk Tankers won two BP Ship- vals“, which involve a reduction in ves- in our management processes. In ping CEO's HSSE Awards. We received an sel speed to meet a revised arrival time. 2012, projects aimed at the com- award in the Partner of the Year category Our target for zero overboard oil spills in mercial and operational management due to our strong Sustainability Action 2011 was met. We were above our target teams will be launched to ensure that Plan and a continued drive for improved of 10% Green Port landings during the we are always considering the social HSSE performance. The second award, year with 13% of waste landed at green and environmental factors into our main the Outstanding Environmental ports – those that are rated as having jor business decisions and strategies. Achievement category, recognised our an environmentally responsible way of work with Lloyd's Register in reach- handling our waste. The number of land- ing our CO2 reduction target ahead of ings in ”red ports“ has, however, risen and schedule. Read more www.maersktankers.com we are investigating the reasons for this.

Maersk Tankers key sustainability figures 2011 Social performance – safety 2009 a 2010 2011 Number of full time equivalents (FTE) number 2,964 2,771 3,223 Lost time injury frequency (LTIF) * frequency 1.34 0.83 1.12 Fatalities * number 0 1 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 1,952 2,329 2,511 - of which direct and indirect CO2 (scope 1 & 2) 1,000 tonnes 1,940 a 2,315 2,496 Economic performance Revenue USD million 1,166 1,219 1,299 a Product tanker company Broström was acquired in 2009. * Operational scope.

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Maersk Drilling however, must never be at the expense and process safety. As dropped ob- of providing safe access to energy jects present a significant challenge operates 26 drilling units and limiting potential environmental to occupational safety we launched a and aims to provide safe risks to an absolute minimum. As Dropped Objects Campaign to reduce and efficient drilling technically challenging offshore drilling the number of incidents. Although the continues, our commitment to sus- statistics show that the frequency of services to oil compa- tainability is more critical than ever. dropped objects has decreased, we nies around the world, haven’t seen the full effects of the Safety is a top priority campaign yet. supporting the global In 2011, we continued to improve our demand for energy. safety performance. With only four lost In regards to process safety we have time injuries (LTI) in 2011, our LTIF of further developed the change sce- 0.21 is the lowest ever achieved in the narios that may affect the risk level of Maersk Drilling history and well below operating our units, and strengthened Sustainability in our business industry average13. However, four the capacity to manage major acci- 2011 was a groundbreaking year for LTIs is still four too many, but with 23 dents and hazard potential. Maersk Drilling. We introduced our out of 26 drilling units reporting zero Accelerated Growth Strategy, which accidents, the target is within reach. Environment and climate states our clear ambition to double During 2011, Maersk Drilling focused In 2011 Maersk Drilling initiated work our fleet by 2016. Focusing on growth on risks related to occupational safety on a new Environment and Climate

Targets 2011a Performance 2011a targets 2012 a

• LTIF of 1.0 a • LTIF of 0.21 a • LTIF of 1.0 a

• TRCF measure of 5.0 a • TRCF measure of 1.4 a • T RCF of 2.5 a

• Reduce relative CO2 emissions by 5% by end • Relative CO2 emissions have increased 15% • Reduce relative CO2 emissions by 10% by end 2011 (2008 baseline) b by end 2011 (2008 baseline) b 2012 (2008 baseline) b

• Maximum 7 significant spills a • Zero significant spills a • Zero significant spills a a Based on operational scope b The CO2 target is based on financial control and includes scope 1 and 2 emissions plus one element of scope 3 13 www.iadc.org (IADC average 1.43 vs MD 0.37) emissions, which is the diesel consumed by customers

A.P. Moller - maersk group Tankers, offshore and other shipping activities Sustainability Report 2011 61

Change Strategy. In 2011, we main- oil companies and drilling contractors tained our record of zero significant by the authorities. In 2011, we imple- Prioritised issues spills into the sea. We had a target of mented our CSR Unit Planning Tool. reducing CO2 intensity of our opera- The tool supports unit management • Safety – A top priority and an essen- tions by 5% by the end of 2011, based teams in assessing relevant issues tial part of our business. on a 2008 baseline. We did not reach and key stakeholders related to their • Engaging with communities – this target – on the contrary our CO2 operations. By engaging with local Maintaining good relations with our intensity increased by 15%. A wide stakeholders, we are better equipped key stakeholders and investing in local range of factors play a part in this re- to flag potential risks and opportuni- activities in the areas where we work sult. First of all, our rigs had more days ties and to focus efforts on managing is vital to our licence to operate. in operation compared to previous and mitigating these. • Environment & climate – We strive years and the fleet was expanded by to find additional ways to limit our en- one additional ultra deepwater semi- In addition, we have developed a set vironmental footprint, going beyond submersible. Secondly, several of our of guidelines and support documents our direct sphere of influence rigs operated at greater water depths. to enhance consistency and transpar- Simultaneously we faced severe ency in strategic social investments, weather conditions and the density of including local education and staffing the formations in which we operated programmes. For us as a growing busi- the new CSR policy we aim to improve became more challenging. All factors ness, these efforts can help to address continuously our CSR commitment contributed to the increase in our total local deficiencies in skilled labour, to strengthen our legitimacy in the energy consumption. which can have a positive impact on offshore industry. In 2011, the CSR our ability to operate, compete and section in Maersk Drilling focused on As most of these factors are outside thrive. driving sustainability processes within our control we are currently working on the organisation, actively engaging em- establishing more accurate metrics for Integrating Sustainability ployees and promoting key initiatives. measuring our environmental perfor- Maersk Drilling introduced a new Sus- In 2012 we focus on our performance mance. These metrics are part of our tainability Framework in June 2011. management system and on fully em- new Environment and Climate Change Under this framework, a newly deve bedding all Maersk Drilling employees’ Strategy. loped CSR policy has been combined understanding of our social, economic with our updated HSSE and Quality and environmental impacts. Engaging with communities policies to guide our work within Maersk Drilling is expanding opera- sustainable business practices. The tions in areas such as Latin America revised HSSE Policy now includes 'The and West Africa, where increasingly stop work directive' as well as process Read more www.maerskdrilling.com stringent demands are being placed on safety and technical integrity. With

Maersk Drilling key sustainability figures 2011 Social performance – safety 2009 2010 2011 Number of full time equivalents (FTE) number 5,355 a 5,828 a 6,281 Lost time injury frequency (LTIF) * frequency 0.70 0.36 0.21 Fatalities * number 1 b 0 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 20 17 12 - of which direct and indirect CO2 (scope 1 & 2) 1,000 tonnes 20 17 12 Economic performance Revenue USD million 1,282 1,627 1,878 a FTE re-stated for 2009 and 2010. report 2009 has been removed due to change of scope. making them liable to report. b One of the two fatalities mentioned in our sustainability The fatality occurred at the premises of a third party, * Operational scope.

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Maersk FPSOs strong record on Health, Safety and FPSOs Environmental Management Environment (HSE) and robust risk System received its renewed ISO 14001 contributes to global management processes are central to certificate in November 2011. Our energy supply by de- our licence to operate. Maersk Peregrino operation in Brazil livering safe and relia- also began the certification process To maintain constant progress, in 2011 this year and a stage two audit is ble floating oil and gas Maersk FPSOs wrote and published its planned for early 2012. We will pursue production services. own HSE policies. Each policy reflects further certification with Nkossa II op- Maersk FPSOs´ commitments in the eration off the coast of Congo in 2012. areas of Occupational Health, Safety and Security and Environment. Adher- Despite our vigilance, we had leaks and Sustainability in our business ence to these policies is of paramount spills on board our units in 2011. Maersk FPSOs plays a vital role in importance in maintaining current li- 15 spills released a total of 1,000 litres facilitating responsible offshore energy cences and pursuing new opportunities. of hydrocarbons to the external envi- production; an important part of the ronment. Other spills were contained world's current energy mix. Care for Reducing our direct on board our units. All external spills, the environment and our people is an environ mental impact even those not considered significantly important part of everything we do Our Environmental Policy was pub- hazardous to the environment, are and vital to our competitiveness. A lished in August 2011 and Maersk investigated and the results inform any

Targets 2011a Performance 2011a targets 2012 a

• LTIF of zero • LTIF of zero • LTIF of zero

• TRCF measure of 8 or below b • TRCF of 3.72 • TRCF measure of 4 or below

• Achieve one external spill or less • 15 external spills recorded • Achieve zero external spills

• Achieve zero dropped object incidents • 7 dropped object incidents • Achieve zero dropped object incidents (of over 40 kJ impact) (of over 40 kJ impact) a Targets only for FPSO, not LNG. All targets are based on operational scope. b Total Recordable Case Frequency (safety)

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necessary improvements to our ap- which enables the whole organisa- proach. Regular drills are held in order tion to share best practice. Prioritised issues to have a fast and appropriate reaction when a spill does occur. • As a continuation of our previous • Safety – For Maersk FPSOs, safety is work, we keep a register of chemicals a value, not a priority that can change. Safety used in our operations to make • Direct environmental impact – We In 2011, we set a target of 8 or below chemicals management safer and are committed to finding ways of re- for total recordable case frequency more efficient. We also provide regu- ducing our environmental footprint. (TRCF), which includes lost time lar training for employees on the safe • Employees – To remain competitive, injuries and incidents requiring medical handling of chemicals. Maersk FPSOs strives to be consid- treatment or restricted workdays per ered a great employer with the best million exposure hours. By the end of • The operation of our newly com- trained, most skilled employees. 2011, we achieved a frequency of 3.72. missioned FPSOs unit, Maersk The target has been lowered to 4 or Peregrino, began off the coast of below for 2012. Several initiatives were Brazil. In a new unit, the same level of taken in 2011 to maintain our focus on safety culture is expected as in any Integration of Sustainability safety: Maersk FPSOs facility, even with a We seek to incorporate sustainability new team with diverse backgrounds into everything we do by: • We launched the “Our Rules” cam- and cultures. • Communicating transparently with paign to publicise essential rules our internal and external stakehold- that we have in place in order to Employees ers through our Uptime newsletters, avoid incidents. As a responsible employer, we have internet, Town Hall meetings and a robust HR policies to protect against range of other channels • We improved the reporting of health discrimination including the recruit- • Pursuing constant improvement in and safety issues and incidents, ment process. Employment related our environmental performance with regular analysis of the data and decisions are based on a variety of • Strengthening our understanding of trend identification. All operating relevant factors such as qualifica- local communities through constant units now use an online health and tions, skills, performance and relevant dialogue safety issues and incident reporting experience. • Implementing consistent and high tool for which training is provided. standards of business conduct in The tool allows regular analysis of Alongside information about safety, relation to responsible procurement, data and trend identification. and training our new induction pack- labour standards and anti-corruption. age to new employees contains ele- • The HSE department initiated a ments on sustainability to help make Read more www.maersk-fpsos.com regular Incident Review Meeting, this part of our culture.

Maersk FPSOs and Maersk LNG key sustainability figures 2011 Social performance – safety 2009 2010 2011 Number of full time equivalents (FTE) number 916 a 880 a 857 Lost time injury frequency (LTIF) * frequency 0.00 1.18 0.53b Fatalities * number 0 0 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 15 39 1c - of which direct and indirect CO2 (scope 1 & 2) 1,000 tonnes 15 39 1c Economic performance Revenue USD million 386 418 591 a Group principle on FTEs adjusted to include joint ven- b LTI occurred at LNG, FPSO had no LTIs in 2011 much depending on the periods of offhires. tures according to regular financial consolidation rules. c The GHG-emitting consumptions/combustions are very * Operational scope.

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Maersk Supply meet rising energy demand, a focus Safety on safety and environment is more It is essential to us that we keep our Service aims to vital than ever. One of the core values people safe, so we are constantly look- provide reliable, safe of Maersk Supply Service is “constant ing at how we can improve our safety and efficient marine care”; we take care of today and ac- performance. During 2011, we ran tively prepare for tomorrow. two e-learning modules to update our services to the global employee´s understanding of safety oil and gas industry. This has been the cornerstone of our risks and procedures. We use Safety sustainability journey. Acting respon- Observation Cards, a paper-based sibly and being able to respond to all reporting system, on all our ships. This circumstances are crucial to our ability simple approach increased reporting We are proud to be the market leader to operate. Our customers, employees of safety observations – conditions in deep water services, and we have and other stakeholders demand that and behaviours that poses a risk. More both the equipment and people to we operate efficiently, safely and than 13,000 cards were submitted in assist our customers with any offshore in line with rigorous environmental 2011, equivalent to 192 per ship. task or challenge. standards. Our size and reach means Our target was a lost time injury that we can play a significant role in frequency (LTIF) of 0.65. We were con- Sustainability in our business driving higher standards and improved fident that we would meet that target As the oil and gas industry targets environmental and social performance but unfortunately an LTI during Decem- deep water exploration in order to in our industry. ber 2011 took us to 0.74 for the year.

Targets 2011 Performance 2011 targets 2012

• LTIF of 0.65 a • LTIF of 0.74 a • LTIF of 0.55 and a TRCF measure of 2.50 a

• TRCF measure of 2.75 a • TRCF of 2.59 a • TRCF measure of 2.50 a

• Internal audits for 100% of the fleet a • All ships have been audited in 2011 a • Internal audits for 100% of the fleet a

• 5.000 safety observation cards submitted a • 13,000 safety observation cards were • 20.000 safety observation cards submitted on 67 vessels a submitted in 2012 a

• 5% CO2 reduction per ship by end 2011 • 16% CO2 reduction per vessel in 2011 • Cut CO2 10% per ship by 2020 (2008 baseline) compared to 2008 (baseline 2010) a

• 20% reduction in total spills (baseline 2011) a

a This target is based on operational scope.

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Our total recordable case frequency data scope). We have set a new target (TRCF) over the year was 2.59, though to reduce CO2 emissions per ship by Prioritised issues against our target of 2.75. However, as an additional 10% by 2020 (against a result of a large engine room fire, we a 2010 baseline). We are currently • Safety – In our industry, safety tragically experienced our first fatality discussing with a number of custom- performance can determine whether in more than ten years. ers the possibility of introducing live you win or lose business. fuel meters and providing daily reports • Environment – In recent years, Environment on fuel consumption by our ships. We climate and environmental issues We recognise that taking care of the can then work more closely with these have become important determining environment and lowering our emis- customers to minimise consumption. factors for our customers and other sions is a requirement for our licence stakeholders around the world. to operate and our ability to win Doing business in a • Doing business in a socially business. We are ISO14001 certified socially responsible way responsible way – We help the com- and set ambitious annual targets Alongside our environment and safety munities where we operate to thrive. for fuel consumption, environmental focuses, we are increasingly emphasis- awareness, oil spill reduction and other ing the importance of our role as a relevant measures as part of a pursuit partner to the communities where we of continuous improvement. operate. We can provide tremendous deeply embedded in the business. benefits as a local employer and inves- To support this, our 2010 Corporate Disposing of waste at sea with the tor, working closely with local authori- Responsibility Strategy pulled together minimum possible impact on the ties to train local people and provide our various policies and commitments environment is always a challenge. In careers. We also support a number into a coherent plan that is integrated 2010, we installed new technology on of community investment initiatives, with the broader needs of the business our newest ship, Maersk Laser, that including an orphanage in Equatorial and our stakeholders. allows combustible waste to be turned Guinea. We are part of the Group pro- into “Syngas”, which can then be used gramme for responsible procurement Our annual HSE Action Plan has grown to fuel the system. This is a cleaner and to enhance the responsible business to become our first Sustainability Re- more efficient means of disposal and, practices throughout our supply chain, view and Action Plan, which contains as a result, Maersk Laser has achieved as well as the anti-corruption training detailed accounts of our progress and emissions lower than even the most and information roll out. future objectives. stringent requirements. Driving down fuel consumption reduces both costs Integration of sustainability and emissions. We reduced our C02 To have a real impact on the business emissions by 16% per ship between and our stakeholders, our commit- Read more www.maersksupplyservice.com 2008 and 2011 (following operational ment to sustainability needs to be

Maersk Supply Service key sustainability figures 2011 Social performance – safety 2009 2010 2011 Number of full time equivalents (FTE) number 2,412 2,088 2,186 Lost time injury frequency (LTIF)* frequency 0.69 a 0.78 a 0.74 a Fatalities * number 0 0 1 Environmental performance Greenhouse gas (GHG) emissions b 1,000 tonnes CO2 eq 34 30 83 - of which direct and indirect CO2 (scope 1 & 2) 1,000 tonnes 33 30 82 Economic performance Revenue USD million 749 772 824 a LTIF 2009 and 2010 is offshore hours only, whereas for b The GHG-emitting consumptions / combustions are * Operational scope. 2011, shore staff is included as well. very much depending on the amounts of off hire.

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Svitzer is the market business activities and is key to the compared to 2010, we believe that we valued relationships we have with both have increased our safety transpar- leader for towage and customers and colleagues. “Respect- ency, which has helped us to build emergency response ing each other and the world we live in” more trust among our colleagues and at sea and has been is the principle driving our environmen- while also improving our awareness of tal sustainability efforts. the specific challenges we face. at the forefront of maritime safety and Safety and security Our one day Safety Culture programme In 2011, our lost time injury frequency was translated into nine different support since 1833. (LTIF) was 0.72, which equates to 12 languages and rolled out across the or- actual lost time injuries. Many of our ganisation. All 4,500 of our employees operations are already up to five years will actively participate in the course Sustainability in our business or more without any lost time injuries, over the next three years. Svitzer’s mission is to provide safety and our ambition is to eliminate these and support at sea. We are a vital part incidents completely by 2015, an initia- We are also making a broad range of of the machinery of global trade, ena- tive we call “Absolute Zero”. improvements to the working environ- bling its safe functioning and allowing ment of our tugs. These include noise shipping lines to connect economies, Preparedness through the anticipation reduction initiatives like double-glazed across the globe. of problems is part of what we do. This windows, reducing vibrations of en- is also true of our approach to safety. gines and fans, and the creation of an Our approach, summed up as “Do it With a 180% increase in reported air gap between ships, funnels and the safely or not at all”, runs through all “Near-Misses” and “Observations” crew accommodation.

Targets 2011 Performance 2011 targets 2012

• LTIF drive towards zero (improve on 2010 • LTIF of 0.72 a • Progressively reduce lost time injuries to zero performance of 0.8 LTIF) a by 2015 a

• 1% yearly CO2 reduction per tug operation • 1% CO2 reduction per tug operation against • 1% yearly CO2 reduction per tug operation (2009 - 2012) b the 2009 baseline b (2009 - 2012) b

• All employees to complete new safety • 10% of employees have completed new • All employees to participate in new safety training programme before end 2011 a safety training programme a training programme during next three years a a This target is based on operational scope. b Because of a change in reporting scope the baseline is moved from 2008 to 2009.

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Piracy remains a challenge for Svitzer specifications for tugs. These include especially in terms of salvage, ocean diesel electric hybrid engines, exhaust Prioritised issues towage opportunities and mobilisa- gas recovery systems, selective cata- tions in high risk areas. We regretfully lytic reactors, LNG powered tugs and • Safety and security – A core value for have to maintain a general “no go” silicon hull paint. a business like ours, we make safety policy in some regions, with a case-by- our utmost priority. case evaluation of business opportuni- Focus on environmental impacts is • Direct environmental impacts – ties when they arise. also increasingly a commercial impera- Making our operations as fuel efficient tive. Demonstrating that we offer sup- as possible reduces harmful green- Reducing our direct port to our customers' sustainability house gas emissions. environ mental impacts efforts helped us to win a long term • Community – Good relations with Reducing our GHG emissions is part terminal contract in a particularly local stakeholders can have a direct of being a responsible company. Our sensitive marine park environment in impact on our ability to grow. target is to reduce fuel consumption Australia. The Svitzer designed diesel relative to tug operations by 1% each electric hybrid tugs played a part in year. In 2011, we began integrating this, among many other eco-efficient GPS feeds into fuel meters on some of design features built into the specifica- Integrating sustainability the ships in our UK fleet. This simple tions of the contract. At Svitzer, annual commitments to intervention has increased fuel aware- sustainability are made throughout ness and reduced fuel consumption Community the business, including at our head- and costs.It has also led to an 8% Our commitment to building positive quarters and in every Region and reduction in emissions on the selected relations with local communities is Division. All heads of HSSEQ – Health, UK tugs. This approach has the a part of our ability to attract both Safety, Security, Environment and potential to reduce carbon emissions customers and talented employees, Quality – meet at least once each year by as much as 10,000 tonnes across demonstrated by our recently awarded and take responsibility for carrying the the fleet. towage contract with Chevron, in message forward to the rest of the Angola. Our commitment to train local organisation through their procedures, We support the 2016 Tier III require- Angolans to become expert seamen regional conferences, monthly updates ments put forward by the International was a key reason for the decision to and newsletters. Sustainability is also Maritime Organization (IMO). This award us the contract. By the time the a key topic when the senior leadership introduces more stringent emission work commenced in September 2011, team meets. standards and fuel sulphur content, we had recruited 65 Angolans into the and we continue to work with our project team. engine and vessel manufacturers to Read more www.svitzer.com evaluate new and more sustainable

Svitzer key sustainability figures 2011 Social performance – safety 2009 2010 2011 Number of full time equivalents (FTE) number 3,806 3,461 4,094 Lost time injury frequency (LTIF) * frequency 1.35 0.82 0.72 Fatalities * number 0 0 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 244 222 225 - of which direct and indirect CO2 (scope 1 & 2) 1,000 tonnes 243 221 223 Economic performance Revenue USD million 779 890 992

* Operational scope.

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Dansk Supermarked this, on behalf of our customers, we • 337 have filled in the BSCI self- influence our wide range of suppliers to assessment scheme, which requires is one of Denmark’s adopt the highest standards of supply information from companies on leading retail groups chain management. issues ranging from working time to and includes the child labour An ethical supply chain • 242 have been audited indepen- supermarket brands As member of the Business Social Com- dently by an auditor appointed by Netto, Føtex and Bilka. pliance Initiative (BSCI), we have set BSCI out to both improve the ethical stand- • 197 have been re-audited ards within our own supply chain,and • 14 are SA8000 certified to influence other Danish retailers. The • 20 are International Council of Toy Sustainability in our business BSCI now involves more than 700 com- Industry certified With a direct interface with both sup- panies committed to improving working pliers of a wide range of products and conditions in the global supply chain. During the past year, 41 of our suppli- their consumers, supermarkets have ers indicated that they intend to apply a key role to play in the transition to a At the end of 2011, Dansk Super- for BSCI membership themselves. more sustainable economy. marked had a total of 416 suppliers from countries defined as “high risk” in Saving energy We strive to offer our customers the DS-BSCI database. It is paramount It is also important that we manage responsible choices, including organic to our business, that we ensure that our own direct impacts. A number of and fair trade products, and we work these suppliers adhere to relevant initiatives this year have helped us to ensure that ethical standards are codes of conduct and certifications. In to make progress towards our new upheld by our suppliers. With Dansk 2011, of these suppliers: target to reduce our operational CO2 Supermarked (DS), customers should • 407 have signed the DS Code of emissions by 5% per square metre of know they can make an informed deci- Conduct, which is based on the UN retail space by 2020, with 2010 as our sion about what they buy. To achieve Global Compact baseline. Reductions in 2011 totalled

Targets 2011 a Performance 2011 a targets 2012

• Reduce CO2 emissions relative to • CO2 emissions relative to building area • Reduce CO2 emissions relative to building area by 10% by 2012 have been reduced by 12.5% in 2011 building area by 5% by 2020 (2007 baseline) (2007 baseline) (2010 baseline) a This target is based on operational scope.

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3%. A number of Initiatives this year • We piloted a variety of new safety helped us to do that: solutions to ensure that cash is not Prioritised issues accessible to our employees, reducing • Netto developed a new heat recovery the risk of them being victims of rob- • Ethical supply chain management system that saves energy by using ex- beries. These included reducing the – We aim to use our influence to im- cess heat from the refrigeration sys- number of cash transports substan- prove ethical and environmental stand- tem for heating and hot water. This is tially, something that also reduces ards throughout our supply chain. being rolled out in all new stores. unnecessary transport emissions. • Energy efficiency – By improving the We expect to implement this solu- efficiency of our operations we can • In all new Netto, Føtex and Bilka tion in high risk areas and stores with cut carbon and reduce our costs. stores, low energy LED light sources transportation difficulties in 2012 • Safety and security – The safety of have been installed. Føtex and Bilka our employees and customers and have also announced that they will • In cooperation with Dansk Handel the security of our business are of exchange all of their old spotlights and Service, we have developed a da- paramount concern to us. with new, energy efficient LED lights. tabase that registers security related events in the retail business, helping • Føtex is building new low-energy us to identify high risk areas. stores in Kolding and Stenløse. Ad- raise money for the Danish Diabetes ditional insulation, energy efficient COMMUNITY ENGAGEMENT Association and for a number of health windows and ventilation, and photo By offering employment, including to centres in Malawi. voltaic technology reduce building vulnerable groups like unemployed energy use. young people and recent immigrants, Integration of sustainability our business contributes to the Being a responsible and more sustain- Safety and security communities in which we operate. able retailer is part of our culture. As A key internal concern remains the In 2010 and 2011, we took up seats one of Denmark’s biggest retailers, we in-store safety of our employees and in the Local Employment Councils in are a key part of communities all over this year we took several measures to seven municipalities and two Regional the country and we therefore have a reduce the risk of our employees being Employment Councils. The Councils stake in the success of those commu- victims of robberies and other crimes. instruct and advise the municipalities nities. These responsibilities are on the and jobcentres in relation to employ- agenda at management committee • We launched a new training ment efforts. meetings. programme for managing conflict situations to help our employees in a We also support a series of university Read more www.dsg.dk robbery situation. scholarships and have programmes to

Dansk Supermarked key sustainability figures 2011 Social performance – safety 2009 2010 2011 a Number of full time equivalents (FTE) number 25,635 26,104 24,537 Lost time injury frequency (LTIF) * frequency 14.10 b 13.53 13.95 Fatalities * number 0 0 0 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 210 c 224 c 200 - of which direct and indirect CO2 (scope 1 & 2) 1,000 tonnes 209 c 223 c 199 Economic performance Revenue USD million 10,683 d 10,537 10,314 a Netto UK was sold with effect from 2011. c Subsequently changed due to inclusion of scope 2 d Revenue is re-stated due to new financial regulations b In the UK and Germany the LTIF has been measured emissions from district heating. for other income. after absence of three days. * Operational scope.

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Maersk Container around the world with minimal loss of related accident after falling from a freshness. This allows movement of roof near his place of work. Industry (MCI) is a agricultural products – even high value supplier of containers products such as fish and flowers over No fatalities are acceptable. Regular to the international longer distances. This in turn helps safety seminars for all employees meet rising global food demand and have been expanded in scope, with the shipping industry. benefits developing countries in particu- assistance of Maersk Training Centre. lar who gain access to global markets MCI’s long-term mission is to entrench and is a vital driver of growth and devel- a safety culture where all employees Our strategy is to combine growth, opment. At the same time a shift from look out for each other and, regardless profitability and sustainability by pro- air to sea transport can result in trade of rank, instinctively react to safety ducing the most durable and energy- related GHG emissions 90% lower. hazards on sight. efficient containers. Safety In 2011, Maersk Container Industry’s Sustainability in our business The success of MCI must never be overall lost time injury frequency (LTIF) MCI has a central role to play in making at the expense of safety standards. was 1.33 per one million work hours global trade more efficient, less carbon Despite improvements in our safety (year on year incl. December). This intensive and a more powerful enabler performance, 2011 was marred by two equates to a 29% reduction compared of economic development. tragedies as an employee lost his life with 2010. At our dry container factory in Dongguan after walking in front of in Dongguan the LTIF was the lowest in Our refrigerated containers allow a moving container on the assembly the factory’s history, with a reduction agricultural produce to be transported line. Another employee died in a work of more than 40% from 2010.

Targets 2011 Performance 2011 targets 2012

• CO2: Reduce 20% - from 0.14 to 0.11 kg/USD • CO2: 27% reduction to 0.099 kg/USD • CO2: Reduce 5% - from 0.10 to 0.095 kg/USD

• Energy: Reduce 16% - from 0.58 to 0.49 • Energy: 19% reduction to 0.47 GJ/1,000USD • Energy: Reduce 4% - from 0.47 to 0.45 GJ/1,000USD GJ/1,000 USD

• Water: Reduce 17% - from 0.64 to 0.53 • Water: 23% reduction to 0.49 m3/1,000USD • Water: Reduce 4% - from 0.49 to 0.47 m3/ m3/1,000USD 1,000 USD

• Waste: Reduce 18% - from 24.8 to 20.4 • Waste: 10% reduction to 22.2 • Hazardous waste: Reduce 8% - from 3.41 kg/1,000USD kg /1,000USD to 3.14 kg/ 1,000 USD

A.P. Moller - maersk group Other Businesses Sustainability Report 2011 71

This was achieved despite a large floors used in container shipping number of new, less experienced em- today, eliminating the risk of using Prioritised issues ployees being hired in Dongguan and illegally sourced wood. Qingdao in 2011 to decrease exposure • Health & Safety – We operate in hours of individual employees in line We have dedicated resources to heavy manufacturing and health & with Maersk Global Labour Principles. further our work on designing and im- safety is our highest priority. plementing cradle-to-cradle principles • Sustainable products – A key com- Delivering into container manufacturing. petitiveness factor is our customers’ sustainable products demand for lower carbon, energy ef- Maersk Container Industry continues to Stakeholder engagement ficient containers. be one of the innovation leaders in con- During 2011, the value of our active • Stakeholder relations – Strong tainer technology. Our latest containers approach was shown in our work stakeholder relations are vital to our are more energy and carbon efficient, alongside local government and unions ability to operate efficiently. This in- use more sustainable materials and to agree to a reduction in working cludes maximising positive economic are even better in reducing waste. Our time at our two production facilities in impact. latest innovations that we can offer our China. For employees, this was largely customers, include the following: offset by wage increases. In 2012, stakeholder engagement will play an • Our Controlled Atmosphere® tech- important role in the success of our across MCI and progress on risk as- nology allows controlled ripening new investment in a reefer factory sessment of suppliers so far amounts process of fruit and vegetables dur- in Chile. It will give us a better under- to 70% of total procurement spend. ing transport. standing of our new environment and Similarly, Group principles on anti-fraud • Our latest Star Cool containers the local community. We hope it will have become an integrated part of our require 15% less energy usage than have a positive impact on the ability of training requirements. those of our closest competitors. agricultural exporters in the region to • Q Liner is a specialist plastic used to access the global marketplace. In 2012, the senior management team replace the steel interior of contain- at MCI will participate in a training ers. It reduces a container's weight Integration of Sustainability programme on Maersk Global Labour by 200kg and hence increases the MCI strives constantly to offer the Principles. The training programme carbon efficiency of shipping. most energy efficient containers on will ensure full compliance with the • In 2011, MCI entered a majority owned the market. This reduces their cost of principles by identifying and closing partnership to produce container use and increases our competitive- any gaps there might exist in our floors made of low grade recycled ness. But this ethos also extends to organisation. plastic and wood fibres. We believe our own supply chain. During 2011, we this represent a sustainable alterna- have begun implementation of group Read more www.mcicontainers.com tive to the conventional hardwood standards on responsible procurement

Maersk Container Industry key sustainability figures 2011 Social performance – safety 2009 2010 2011 Number of full time equivalents (FTE) number 3,138 4,105 5,927 Lost time injury frequency (LTIF) * frequency 2.24 1.88 1.33 Fatalities * number 0 0 2 Environmental performance Greenhouse gas (GHG) emissions 1,000 tonnes CO2 eq 170 a 175 a 226 - of which direct and indirect CO2 (scope 1 & 2) 1,000 tonnes 38 a 75 a 99 Economic performance Revenue USD million 270 689 1,168 a Subsequently changed due to re-stated CO2 conversion factor for vented gas. * Operational scope.

A.P. Moller - maersk group Accounting principles and assurance Sustainability Report 2011 72

Sustainability accounting principles

This report has been prepared in ac- sign off by the respective CEO and Financial scope is defined as follows: cordance with the Global Reporting CFO. Furthermore, all business units Initiative’s (GRI) G3 Sustainability are obliged to provide explanation • Owned assets, which the Group Reporting Guidelines (application level sheets on significant developments uses, the Group is liable for con- C+), and has been independently as- in data. sumption, emissions, and other sured by KPMG. environmental elements From 2011, the data reported under The GRI Content Table and the corre- financial scope are included in the • Owned assets, which are leased out, sponding UN Global Compact principle framework used to assure risks and the Group is not liable for consump- covered in this report can be found at controls for financial reporting (Risk tion, emissions, and other environ- www.maersk.com/sustainability and control compliance). mental elements – lessee is.

The sustainability accounting prin- Scope • Leased in assets, which the Group ciples for 2011 have been changed Operational scope is applied to uses, the Group is liable for con- slightly, as scoping and consolidation health and safety and spills data, and sumption, emissions, and other envi- for health and safety and spills have financial scope is applied for all other ronmental elements – lessor is not. been changed to operational scope. sustainability data. Furthermore, the definition for FTE, For technical management of an asset including gender split, has been Operational scope is assumed when a on behalf of third parties, consumption updated, with joint ventures now in- business unit or one of its subsidiaries and emissions belong to the asset cluded proportionally. For comparabil- holds the governing authority and owner/lessee. If material, the business ity, 2009 and 2010 figures have been responsibility for health, safety and unit may include the emissions as re-stated according to the updated environmental management of the explanations in the text. rules and improved data and emission people, processes and facility either factors. directly or indirectly via third party con- Regarding greenhouse gases, the tractual arrangements. This approach reporting must be compatible with the The consolidated reporting tool is excludes data from assets which are Greenhouse Gas (GHG) protocol: direct validated via IT audit, and manuals partly owned by the Business Unit but emissions from own assets (Scope 1), and online training are in place. A set operated by another company (i.e.a indirect emissions from purchaced elec- of general accounting principles for non-operated joint venture). Mobile tricity and district heating, (Scope 2). sustainability has been established, assets are included, when operated by which defines the reporting rules, the business unit. For vessels, the In- Within the current Group wide climate processes and responsibilities. A con- ternational Safety Management Code change policy we report only on scope trolling guideline has been distributed Document of Compliance (DOC) must 1 and 2 GHG emissions. A business to help secure business units’ own be held by the business unit to include unit can choose to comment on assurance of submitted data, before the data. scope 3 GHG emissions (indirect

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emissions from third parties), how- and flare efficiencies, the Group has up- ever, these data are not part of the dated the converters for 2011, and has full sets of data assured data set. updated some of the 2009 and 2010 available online figures to maintain comparability. Consolidation In this report we only include data on a For operational control, 100% of the AA1000 Accountability few, select key performance indicators data from the operated assets are Principles Standard (APS) 2008 for each business unit. Full sets of data, included irrespective of percentage Maersk is committed to the AA1000 both consolidated and at the business ownership. principles to help embed sustainability unit level can be found on our website: in its Group and business unit (BU) www.maersk.com/sustainability. Financial scope uses the financial con- activities in line with stakeholder solidation methodology of the Group; expectations. Due to the diversity of data are collected per legal entity per our businesses, this mainly takes place activity, and the figures are consolidated at BU level. The criteria are challenging line-by-line. Subsidiaries, in which the but we are making good progress and General notes for data Group has full control, are included believe our current level of adherence 100%. Joint ventures, are included by to the principles is as follows: • Number of employees measures proportional consolidation. Associated average number of full time equiva- companies and other companies, in Inclusivity: Partial lents and employees (FTE) excluding which the Group does not have control, Stakeholder concerns are a key foun- discontinued operations. are excluded. Using financial consolida- dation for Group and BU level sustain- • e mployee engagement reflects the tion principles, help us to compose the ability strategies and policies. Some percentage of engaged employees sustainability indicators, which can business units have developed a more who participated in the annual engage- be compared directly with financial systematic process for stakeholder ment survey. Engagement is the com- data, thereby providing context for our engagement while Group Sustain- bination of satisfaction, pride, referral performance. ability is developing guidance and tools and intent to stay in the organisation. and monitoring progress. A Group level • The percentages for performance Definitions approach to stakeholder engagement appraisals are based on headcounts, The Group has defined two categories will be developed in 2012. not FTE. of data; documented and probable • Lost time injury frequency measures data. The reason for the split is that Materiality: Making progress the number of lost time injuries ex- some data are more difficult to docu- The methodology, based on best cluding fatalities per million exposure ment than others. practice, is defined at group level. hours. Guidelines were distributed in 2009 • TRCF = Total Recordable Case Frequency Documented data comprise: our as part of the sustainability strategy measures the number of recordable employees, energy consumption, other process to all BUs. cases per million exposure hours (LTI + air emissions, steel consumption, oil MTC + RWC). extraction and financial data. Responsiveness: Making good • Particulate matter is calculated on progress heavy fuel. Probable data comprise health and Environment and safety are already • Category 1 oil spills are defined as a safety, waste, water consumption, well established. From 2009-2011 function of distance to shore and vol- spills and anti-corruption training. Group programmes were developed for ume of spill. More than 10 M3 within anti-corruption programmes, respon- harbor or less than one mile from Emission conversions sible procurement and labor principles shore, more than 100 M3 spill less The Group GHG emissions are calcu- including policies, codes of conduct than 12 miles from shore and more lated indirectly via default conversion and training. Implementation is being than 1000 M3 in open sea (more than factors for energy consumption and monitored by Group sustainability. 12 miles from shore). other GHG gases. Based on various In addition sustainability has been official schemes that include standard integrated in a new Enterprise Risk assumptions for emissions, content Management structure.

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Assurance Report We conducted our engagement in accordance with the International Standard for Assurance Engagements (ISAE) 3000: Assurance Engagements other than Audits or Independent assurance report Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standards Board and To the readers of the Sustainability Report 2011 of the AccountAbility ‘AA1000 Assurance Standard (2008)’. A.P. Moller - Maersk A/S Limited assurance in ISAE3000 is consistent with a mode rate level of assurance as defined by AA1000AS (2008). We were engaged by the Executive Board of A.P. Moller - Among other things, these standards contain requirements Maersk A/S (further ‘Maersk’) to provide assurance on the regarding the independence and competency of the assu information presented in the Sustainability Report 2011 rance team. (further ‘The Report’). The content of The Report, including the identification of material issues and the determination Independence, impartiality and competence of the GRI Application Level, is the responsibility of the com- Our engagement was conducted in accordance with the pany’s management. Our responsibility is to issue an assu ‘IFAC Code of Ethics for Professional Accountants’ which rance report based on our engagement as outlined below. requires, among other things, the independence of the Our engagement was designed to provide limited assurance members of the assurance team and of the assurance on whether: organization, including not being involved in writing The Report. The Code contains detailed requirements regarding • the information in The Report is, in all material respects, the integrity, objectivity, confidentiality and professional fairly stated in accordance with the G3 sustainability competence and behaviour. KPMG has internal systems reporting guidelines of the Global Reporting Initiative; and processes to monitor compliance with this Code and • Maersk has applied the ‘AA1000 Accountability Principles to prevent potential conflicts regarding independence. Standard (2008)’ as set out on page 73. We used a multidisciplinary team including specialists in AA1000APS/AS, stakeholder engagement, environmental, In addition, we were asked to check whether Maersk’s GRI social and financial aspects, with experience in similar Application Level, as disclosed on page 72 (and the related engagements. GRI Content Index published on Maersk’s website) is consistent with the GRI criteria for the disclosed Application Work undertaken Level. We carried out the following work: • An evaluation of the results of Maersk’s stakeholder The scope of our engagement conforms to the requirements consultation process and processes for determining the of a Type 2 assurance engagement as set out in the AA1000 material issues at Group level; Assurance Standard (2008) of AccountAbility. We do not • A media analysis and an internet search for references to provide any assurance on the achievability of the targets, Maersk during the reporting period; expectations and ambitions of Maersk. • Interviews with relevant staff for each ‘Group Perfor- mance’ section (overall Sustainability strategy, Health and Procedures performed to obtain a limited level of assurance safety, Human rights, Labour principles, Environmental are aimed at determining the plausibility of information and are stewardship, Anti-corruption and Value Chain) regarding less extensive than those for a reasonable level of assurance. the strategy and policy development, communication, implementation in the Business Units, monitoring and Reporting criteria and assurance standards reporting; For the information covered by our engagement scope • Interviews with relevant staff at each of the main Business Maersk applies criteria as detailed on pages 8-9 and 72-73. Units (Maersk Line, Damco, Maersk Oil, APM Terminals, These include the Sustainability Reporting Guidelines (G3) Maersk Tankers, Maersk Drilling, Maersk FPSO’s, Maersk of the GRI for The Report, the AA1000APS (2008) criteria Supply Services and Dansk Supermarked) concerning for the three principles of inclusivity, materiality and re- stakeholder engagement and materiality, sustainability sponsiveness as set out on page 73. We believe that these strategy and policies, communication and management of criteria are suitable in view of the purpose of our assurance these in the business, and with other staff responsible for engagement. collecting and aggregating the information in The Report;

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• A visit to the APMT terminal at Algeciras to review the local Emphasis of Matter environmental and safety data; Without modifying our conclusions, we draw attention to • An evaluation of the design and existence of the systems the section ‘Prioritised issues’ on page 49 where Maersk ex- and methods used to collect and process the information plains that the Business Unit pages cover a limited number reported at Group level and at each of the main Business of prioritised issues and not necessarily all of the material Units, and the aggregation of the data into the information sustainability issues for each business. as presented in The Report; • Reviewing the existence and results of the internal control Report on GRI application level procedures for the data at Group level and at the main Based on the procedures performed we conclude that the Business Units; Application Level C+ as disclosed on page 72 and based on • Reviewing the information in The Report using internal the GRI Content Index on Maersk’s website is consistent and external documentation, to determine whether the with the GRI criteria for this Application Level. information presented in The Report corresponds to the information in the relevant underlying sources and Observations whether all the relevant information contained in such Without affecting the conclusions presented above, we underlying sources has been included in the sustainability would like to draw the readers’ attention to the following: reporting; • Maersk has begun implementing stakeholder engage- • An evaluation of whether the information presented ment and materiality assessment at Group level and in in the report is in line with our overall knowledge of the the businesses. We recommend extending the materiality organisation. assessment at Group level to include other sources of information, including input from Maersk’s strategic sus- During our investigation, we discussed the necessary tainability partners and stakeholder engagement. We also changes to the sustainability reporting with Maersk and veri- recommend improving the consistency of the approach fied that these changes were adequately incorporated into to both stakeholder engagement and materiality assess- the final version. ment in the businesses to further ensure the comprehen- siveness of the material issues reported upon. GRI check • Maersk uses the Sustainability Group Accounting Prin- With respect to our work on the disclosed GRI Application ciples (GAP) for reporting on environmental and safety Level, our procedures were limited to checking whether the performance. We recommend an in-depth review of these GRI Content Index is consistent with the criteria for the dis- guidelines covering, in particular, the current threshold for closed Application Level and that the relevant information is spills reporting, extending reporting to cover oil in water, publicly reported. and the use, where feasible, of differentiated emission factors per business rather than generic group factors for key

Conclusions emissions such as CO2, SOx and NOx. In relation to the report: Based on our procedures, as described above, nothing has come to our attention to indicate that the Report is not fairly presented, in all material respects, in accordance with the G3 Guidelines of the Global Reporting Initiative.

In relation to the AA1000APS principles of inclusiveness, Amsterdam, Copenhagen, materiality and responsiveness 27 February 2012 27 February 2012 Based on our procedures, as described above, nothing has KPMG Sustainability, KPMG Statsautoriseret come to our attention to indicate that Maersk has not ap- part of KPMG Advisory N.V. revisionspartnerselskab plied the AA1000APS principles to the extent described on page 73. As disclosed by Maersk good progress has been Wim Bartels Jesper Ridder Olsen made in relation to ‘responsiveness’ with a goal of 2013 for Partner State Authorised implementing the Group programs. For ‘Materiality’ and ‘In- Public Accountant clusiveness’ some progress has been made but further work is required at both Group and business level.

A.P. Moller - maersk group UN Global Compact LEAD Sustainability Report 2011 76

UN Global Compact LEAD – Covering the Blueprint Dimension 2 and 3

The Blueprint is intended as a model 1. Implementing the Ten Principles Dimensions 1 and 4 are covered for achieving higher levels of perfor- into Strategies and Operations throughout the report and form the mance and generating enhanced value 2. Taking Action in Support of UN Global Compact Advanced Level through the UN Global Compact. In Broader UN Goals and Issues Reporting Criteria. The tables below dis- the context of the Blueprint, corporate 3. Engaging with the UN Global play A.P. Moller - Maersk’s coverage of sustainability is defined as a company’s Compact the UN Global Compact Principles and delivery of long term value in financial, 4. A cross-cutting component of lead- the remaining dimensions 2 and 3 of social, environmental and ethical terms. ership form an overlay to the three the Blueprint. More information can be The four dimensions of the Blueprint are: dimensions found on www.unglobalcompact.org.

Dimension 1: The Ten Principles

Human Rights Principle 1: Businesses should support and respect the protection of Page 33 internationally proclaimed human rights, and; Principle 2: make sure that they are not complicit in human rights abuses. Page 33 Labour Principle 3: Businesses should uphold the freedom of association and Pages 36-37, www.maersk.com/Sustainability/Documents/ the effective recognition of the right to collective bargaining; Maersk_Global_Labour_Principles.pdf Principle 4: the elimination of all forms of forced and compulsory labour; Pages 36-37, www.maersk.com/Sustainability/Documents/ Maersk_Global_Labour_Principles.pdf Principle 5: the effective abolition of child labour, and; Pages 36-37, www.maersk.com/Sustainability/Documents/ Maersk_Global_Labour_Principles.pdf Principle 6: the elimination of discrimination in respect of employment Pages 36-37, www.maersk.com/Sustainability/Documents/ and occupation. Maersk_Global_Labour_Principles.pdf Environment Principle 7: Businesses should support a precautionary approach to Pages 40-44 environmental challenges; Principle 8: undertake initiatives to promote greater environmental Pages 40-44 responsibility, and; Principle 9: encourage the development and diffusion of environmentally Pages 43-44 friendly technologies. Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, Pages 45-46 including extortion and bribery.

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Dimension 2: Taking Action in Support of Broader UN Goals and Issues

Core Business Contributions to UN Goals and Issues Align core business strategy with one or more The business of A.P. Moller - Maersk supports the long term economic development (LTED) relevant UN goals / issues. of societies, including Least Developed Countries (LDCs). In this way it is aligned, but the core business strategy as such has not been altered to incorporate UN goals. Emerging work on LTED seeks to support this proposition. The 5th priority of our sustainability strategy – focusing on new markets and innovation – also explicitly seeks to explore new business opportunities with high degree of shared societal value. Develop relevant products and services or Examples of products and services designed to include environmental goals include Triple E design business models that contribute to UN vessels (Maersk Line), Green Rig (Drilling), Green Tugboat (Svitzer), Green Logistics (Damco). goals / issues. The Disaster Response Programme under Logistics Emergency Team (LET) initiative is a high profile Group level partnership contributing with A.P. Moller - Maersk resources in response to natural disasters. Further development of new business models – mainly pilots – are envisaged as part of the 5th priority in our strategy. Adopt and modify operating procedures to The Group Sustainability Strategy is in itself a roadmap to do this. maximize contribution to UN goals / issues. Strategic Social Investments and Philanthropy Pursue social investments and philanthropic This is a key purpose of the new Guidelines for Donations and Community Investments. contributions that tie in with the core competences or operating context of the company as an integrated part of its sustainability strategy. Coordinate efforts with other organizations This is being undertaken through the LET partnership. Future pilot projects under the 5th and initiatives to amplify – and not negate or priority in the Group Sustainability Strategy will also seek to incorporate relevant partners. unnecessarily duplicate – the efforts of other contributors. Take responsibility for the intentional and unin- This is accommodated through new Guidelines for Donations and Community Investments. tentional effects of funding and have due regard for local customs, traditions, religions, and priorities of pertinent individuals and groups. Advocacy and Public Policy Engagement Publicly advocate the importance of action in We actively advocate the importance of action on climate change, and this is now formally relation to one or more UN goals / issues. recognised as part of our climate strategy with an explicit position on climate change.

Commit company leaders to participate in key Our commitment to this has been demonstrated by our participation in COP15, WEF meetings summits, conferences, and other important and the UN LDC conference. in Turkey 2011. public policy interactions in relation to one or more UN goals / issues. Partnerships and Collective Action Develop and implement partnership projects Key partnerships include: with public or private organizations (UN entities, • UN GC government, NGOs, or other groups) on core • W EF business, social investments and/or advocacy. • L ET partnership • WWF • Forum for the Future Join industry peers, UN entities and/or other Value chain-focused partnerships include: stakeholders in initiatives that contribute to • WEF New Vision for Agriculture partnership solving common challenges and dilemmas at • UNGC supply chain Advisory Group the global and/or local levels with an emphasis • BSR Green Supply Chain working group on initiatives that extend the company’s posi- • BSR Clean Cargo working group tive impact on its value chain.

A.P. Moller - maersk group UN Global Compact LEAD Sustainability Report 2011 78

Dimension 3: Engaging with the UN Global Compact

Local Networks and Subsidiary Engagement Contribute to the building and operating of at We are actively engaged in the Nordic Network and the Local networks in Singapore and Mexico. least one UN Global Compact Local Network and help elevate performance of other companies through training, mentoring, COP peer review, etc. Encourage subsidiaries to engage with UN All business units have been encouraged to engage. Global Compact Local Networks and to participate actively in events and activities. Publish sustainability information related The Group Sustainability Report includes separate business unit pages. In addition, some to each individual subsidiary separately or business units already publish their own reports. An overview of this can be found under the reference it explicitly in the Communication on introduction to the business unit pages. Progress of Corporate Headquarters. Global and Local Working Groups Participate in relevant global or local working A.P. Moller - Maersk is engaged in the following issue working groups: anti-corruption and groups and share experiences, networks, tools Supply Chain Sustainability. and good practices with other UN Global Com- pact participants. Take active part in defining scope and objectives A.P. Moller - Maersk has contributed actively to development of above mentioned working of new working groups when relevant. groups. Issue-Based and Sector Initiatives Join and help advance one or more existing UN A.P. Moller - Maersk is engaged in the following task forces and initiatives: Business and Peace, Global Compact initiatives, e.g. Caring for Cli- Task Force on Communicating Sustainability Leadership. mate, CEO Water Mandate, Women’s Empower- ment Principles, and Global Business Initiative on Human Rights. Spearhead need-driven development of new A.P. Moller - Maersk has contributed actively to development of above mentioned working issue based or sector initiatives within the UN groups and initiatives, and has spearheaded (together with other Danish companies) a LEAD Global Compact and the wider United Nations. project on New Geographies of Sustainability. Promotion and Support of the UN Global Compact Advocate the UN Global Compact to business We advocate the UN Global Compact to customers, suppliers, universities, stakeholders and partners, peers and the general public. general public in our Sustainability Report, on our website, and in all presentations of our sustainability efforts. We would like to use the LEAD logo even more prominently, and encourage LEAD logo policies to further support this. Encourage suppliers and other business part- Responsible procurement contract clause specifically references the UN Global Compact. ners to join the UN Global Compact, and take on Responsible procurement also follows up on audit improvement plans, but there is no mentoring role on issues related to the initiative. mentoring role as such. Participate in activities to further develop and We do so through active participation in the working groups and initiatives, as well as through strengthen the UN Global Compact. LEAD membership and support of the Blueprint.

A.P. Moller - maersk group We value your feedback

We welcome any questions, comments or suggestions you might have about the report and our performance. Please send your feedback to:

A.P. Moller - Maersk Esplanaden 50 1098 Copenhagen K Denmark Att: Group Sustainability

Email: [email protected] Telephone: +45 3363 8128 www.maersk.com/sustainability

Print This printed matter is carbon compensated This publication is printed by Cool Gray, according to ClimateCalc. environmentally certified printing agency Offsets purchased from: DONG Energy www.climatecalc.eu Editors Cert. no. CC-000004/DK Sebbastian Naerbout Nina Wedel Jørgensen

Editor in Chief Annette Stube

Contributing writers Dan Holmes Josh Bayly Eva Harpøth Skjoldborg

Design and layout e-Types & India

Printed in Denmark 2012