The BIMCO ESG network continues to grow – welcoming over 30 new members in the last few months of 2024. With the expansion of the network also comes the expansion of the topics under discussion. The first meeting of 2025, and the 7th of the network held on 14 January, involved a discussion over the complexity of human rights elements to be included in ESG reporting.
In recent years, the shipping industry has become increasingly aware of its role in environmental sustainability- climate-related disclosures are becoming more important nestled in new ambitious goals set by the IMO, and there is a growing awareness of “nature-related disclosures” related to the impact of shipping on biodiversity. And whilst diversity and inclusion is also often well covered in ESG reporting the incorporation of human rights criteria appears to be more of a challenge. With 90% of those in attendance recognised the value in reporting on human rights only 17% had done a human rights assessment.
On hand to deliver a presentation to share experience in the subject was Tariq Desai from Position Green. He covered the basics – from the International Bill of Human Rights through to the Fundamental ILO Conventions on forced and child labour through to health and safety and discrimination as well as human rights within customary law. He drew attention to the fact that the global and diverse nature of shipping, as well as complexity in supply chains means it may have areas with increased risk of negative human rights impacts and that regulatory compliance may result in customers requiring more information and reassurance regarding human rights due diligence. He then went on to look at the details of undertaking human rights due diligence, how to conduct and assessment and how to prioritise and focus.
Discussions within the group focussed on how to deal with human rights due diligence when you have many small suppliers and where information might not be readily available. And whilst it was accepted that this might be onerous it was determined that communication is key- engaging with supplier - talking and learning about issues. Of course, within such a small space of time it was hard to cover all the questions and discuss all the topics and as such a smaller sub-group meeting on this topic will be convened later in 2025.
The second half of the meeting saw the group return to the topic of supply chain due diligence and the proliferation of customer questionnaires and the lack of consistency and standards between them. This continues to be a topic of concern to BIMCO members, but solutions are also now being readily discussed among the group.
The ESG network continues to evolve and adapt to the needs of its members. Future topics will cover seafarer health and wellbeing and the relationship to ESG policies (meeting to be held 24 April), the ins and outs of ESG ratings platforms and maritime anti-corruption.
Enquiries on joining the network and the working group on human rights and ESG can be sent to hdy@bimco.org.
