Compliance & CSR
The most visible trend currently influencing the shipping industry besides global trade is the increasing public demand for responsible business practices and accountability. This is most clearly illustrated by the launch of, and increasing number of signatories to, the United Nations Global Compact (UNGC). TORM was the first Danish shipping company to become signatory of the UNGC.
This trend for corporate responsibility and accountability puts pressure on all shipping companies towards increasing social and environmental performance and reporting progress transparently to stakeholders.
Maritime shipping is the most energy efficient mode of transporting goods and will continue to be so for years to come. The industry is a modest contributor to global CO2 emissions (around 2.7% in 2007 according to the IMO). Still, there is a significant potential for fuel efficiency improvements in the industry and therefore a large scope for CO2 and cost reductions to follow.
When markets are slow, most often companies halt their CSR activities in order to prioritize cost-minimization and revenue generating operations. TORM believes that CSR efforts should not be compromised. Our CSR activities are closely linked to profitability. They facilitate decreasing costs, are important for increasing reliability of operations, and provide a strong value proposition for our customers. In short, CSR makes economic sense. As this will be even more apparent in the future, TORM will continue its CSR efforts.
Compliance and CSR
TORM does not consider CSR equal to legal compliance. Compliance is to uphold laws and regulation wherever TORM operates. CSR is to take responsibility beyond what is required by regulation and to continuously improve performance and accountability.
The shipping industry is one of the most regulated industries in the world. This means that the largest industry players have high standards of health, safety, security and environmental impact compared to most industries. Full compliance with regulation is a requirement for operating within the industry.
Beyond national and international regulation, the largest customers have their own compliance criteria that TORM and other product tanker operators have to comply with. In effect, this higher level of compliance is the minimum requirement for serving customers in the industry. Thus, as one of the world’s largest carriers of refined oil products TORM already performs significantly better than required by regulative compliance.
TORM aims to retain a competitive advantage by continuously exceeding customers’ compliance criteria. To do this effectively, it is essential to continuously integrate responsibility in all business practices. In short, while ensuring that TORM lives up to ethical responsibilities, our CSR initiatives have a real impact on competitiveness and profitability.