SHIPPING companies and their customers are under growing pressure to not only reduce their emissions but to be more accountable and transparent for their contribution to climate change.

In 2018 the International Maritime Organization committed to reducing international shipping’s greenhouse gas emissions by at least 50% by 2050 compared with 2008.

But RightShip chief executive Steen Lund said the market is progressing faster than the existing IMO targets and that in this climate charterers and banks are demanding services that offer greater transparency on emissions reporting.

Mr Lund believes that emissions accounting can help attain both environmental targets and business growth in the sector.

“A commitment towards reducing emissions helps everyone work towards a shared industry sustainability goal,” he told Lloyd’s List.

Mr Lund said that it also enables the charterers to meet shareholder expectations and to manage public perception. That also makes for a more attractive proposition for investors.

“And also as focus on responsible investment grows we clearly see that those with clear emissions reductions strategies, they are given a competitive advantage for capital,” he said.

Initiatives such as the Sea Cargo Charter, under which major charterers will report their annual emissions of their shipping activities and examine whether they are aligned with global decarbonisation goals, has the potential to radically change emissions accounting in international shipping.

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