As an industry, shipping has a number of strengths.
However, that is not to understate the magnitude of the challenges we need to address going forward, arguably the most critical of which is to play a role in the global effort to tackle Climate Change and create a sustainable environment for our children.
Recognizing this, the regulatory environment is evolving to meet this challenge. Shipping’s main regulator, the IMO (International Maritime Organization), has published its strategy for reducing GHG (greenhouse gas) emissions from shipping by 50% by 2050, with a parallel target of reducing the carbon intensity of transport work by at least 40% by 2030 and pursuing a 70% reduction by 2050 (compared to 2008 levels). Other regulatory bodies, such as the EU, are also developing significant initiatives focused on decarbonization.
Against this backdrop, the Global Ship Lease investment strategy is focused on mid-sized and smaller containerships, with our fleet capacity weighted towards Post Panamax (wide beam) ships, which retain a high level of operational flexibility while also reducing costs and Greenhouse Gas emissions per unit of cargo carried, aligning our commercial interests with reduced emissions.
Furthermore, we are focused on extending the economic lifetime and optimizing the operating performance of existing ships thus avoiding the carbon footprint associated with constructing new vessels until the industry can transition to next generation, green propulsion technologies.
We are committed members of the Getting to Zero Coalition: an alliance of companies across the maritime, energy, infrastructure, and finance sectors, supported by governments and IGOs, which is focused on getting commercially viable, zero emissions vessels into operation by 2030.
In our ESG report, we endeavor to identify the levers that we, as a company, can pull in order to continue to translate environmental sensitivity, social responsibility, and good governance into specific actions. To this end, periodically we have enlisted the help of our core stakeholders including customers, employees, investors, financiers, suppliers, and industry bodies to gauge the materiality of the many different facets of ESG and guide us in drafting a strategic roadmap to address them. To help drive this process, and to ensure that ESG becomes increasingly embedded in our company culture and the way we do business, we have established a specialized ESG committee at the Board level.
These are complex times, and the challenges we must collectively face, together with the nature of ESG itself, will continue to evolve. We are committed to continuous improvement and to ensuring that Global Ship Lease creates sustainable value over the long term.