How Maersk is Accelerating Plans to Decarbonize its Operations

Emissions from the transport of goods and materials within  manufacturing supply chains is a big contributor to global carbon emissions.  

According to a report published last year by the World Economic Forum and the Boston Consulting Group, just 8 supply chains (food, construction, fashion, fast-moving consumer goods, electronics, automotive, professional services and freight) account for more than 50% of global greenhouse gas emissions.

“Supply-chain decarbonization will be a ‘game changer’ for the impact of corporate climate action. Addressing Scope 3 emissions is fundamental for companies to realize credible climate change commitments,” said Nigel Topping, UNFCCC’s High-Level Climate Action Champion in a BCG press release about the report.

A.P. Moller-Maersk, an integrated container freight company, is one global logistics company that is trying to get ahead of customers demands for a more sustainable supply chain.  

Maersk announced earlier this year that it intends to realize its net zero emission targets ten years ahead of global 2050 targets.

Maersk, which operates in 130 countries and employs around 95,000 people, says it intends to achieve net zero emissions across its supply chains for customers by 2040. It also plans to significantly reduce all direct and indirect emissions by 2030.

Maersk’s customers include leading consumer brands such as Unilever, Amazon, and Disney.

Many of Maersk’s customers have announced carbon emission reduction targets of their own and are looking for more sustainable transport solutions in their supply chains.

In a press release about the new targets A.P. Moller-Maersk CEO Soren Skou called the new targets “a strategic imperative” for the company.

“The science is clear, we must act now to deliver significant progress in this decade,” he said. “These very ambitious targets mark our commitment to society and to the many customers who call for net zero supply chains.”

Maersk has previously said that it would commit to a target that would see a minimum of 5% of its deep-sea shipping operations being powered by zero-emission fuels by 2030. 

Shipping currently accounts for approximately 3% of greenhouse gas emissions (GHG), according to the International Maritime Association, and its share of GHGs has been increasing in recent years. It is seen as hard to abate as the alternative fuels required to power shipping do not yet exist at scale.

That’s one of the reasons that Maersk has announced a flurry of investments and partnership in the past year. It is investing in various “fuels of the future” including green methanol, biofuel, liquid lignin technology (which can be used as a marine fuel), and a company that is developing a direct air capture-technology to enable “cost efficient, carbon neutral electro fuels.”

“Our updated targets and accelerated timelines reflect a very challenging, yet viable pathway to net zero which is driven by advances in technology and solutions,” said Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands, A.P. Moller – Maersk. “What is needed is a rapid scale-up which we will strive to achieve in close collaboration with customers and suppliers across the entire supply chain.”

Maersk recently announced that it expects to be operating 8 methanol powered container vessels by 2024. The ships will be built by Hyundai Heavy Industries and the company claims that it is an “industry first” that will offer “truly carbon neutral transportation at scale on the high seas.”