Page 41 - msc_sustainability_report_2016

BREAKDOWN OF CARBON EMISSIONS Source : Energiewende Outlook :
BY MODE OF TRANSPORT Transportation sector, PWC, 2015

MSC’S RESPONSE TO SHIPPING
INDUSTRY CHALLENGES

Maritime transport is responsible for moving around 90% of the world’s
goods in trade, playing a crucial role towards achieving global economic 0.4 % 1.5 % 4.5 % 15.0 % 23.3 % 55.3 %
development and prosperity. It is also internationally recognised as the
most environmentally-friendly and efficient means of transportation. Shipping Local public Rail transport Aviation Road freight Private motorised
World seaborne trade has reached over 10 billion tons and, based on the road transport transport
1
2014 IMO GHG study, the shipping sector’s share of global emissions is
only 2.2%. Global Greenhouse Gas (GHG) emissions have doubled since
the early 1970s due to economic growth and increasing fossil-energy use
in developing countries. According to the OECD Environmental Outlook to
2050, energy and industry-related emissions are projected to more than
double by 2050 compared to 1990 levels. CO emissions are projected to
2
remain the largest contributor to global GHG emissions based on fossil
fuel use in the energy and industrial sectors.
In order to face these increased environmental challenges and achieve
the ambitions set up by the Paris Agreement on Climate Change, new reg-
ulations, with substantial financial implications, have been established.
The shipping industry is also responding to these challenges, while facing
difficulties in the areas of freight rates and maritime transport costs.
The container shipping industry is also in the midst of a profound transfor-
mation with regards to its supply chain and in an ongoing re-organisation,
through the creation of new alliances between shipping lines and signif-
icant consolidations. Alliances such as the 2M alliance between Maersk
and MSC enabled to offer an increased call frequency to customers while
maintaining the quality in service. By optimising the use and capacity of
vessels, shipping lines reduce their fuel consumption and CO emissions.
2
Some of the additional solutions needed are in the infrastructure serving
the industry. In 2015, an important number of infrastructure development
projects were launched or completed. These included improvements to
the Panama and Suez canals to handle growing volumes.
MSC is investing extensively in the modernisation of ports and terminals’
infrastructure, in finding innovative greener transportation solutions and
further expanding its hinterland services, to become even more cost-
efficient and environmentally sound. Both the increased environmental
regulations and the self-initiated efforts made by MSC come at heavy fi-
nancial costs. However, MSC sees the benefits of its substantial invest-
ments starting to emerge and will remain committed to continuously im-
proving its environmental performance.

1 Source: UNCTAD, http://unctadstat.unctad.org

40 MSC’S COMMITMENT TO THE ENVIRONMENT MSC SUSTAINABILITY REPORT 2016 41