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CDP Awards 'B' Score to Euronav for Action on Climate Change

Image courtesy of Euronav
Image courtesy of Euronav

Published Dec 13, 2021 2:07 PM by The Maritime Executive

[By: Euronav]

Euronav NV (NYSE: EURN & Euronext: EURN) (“Euronav” or the “Company”) announces that it has been awarded a B score for taking coordinated action on climate issues by the Carbon Disclosure Project (CDP). This is the same score as the Company obtained in 2020 with its first submission to the CDP platform.

The CDP is a global non-profit organization that has run the world’s leading environmental disclosure platform for over 20 years. In 2021, more than 13,000 companies worldwide shared data on their environmental impact in relation to climate change, forests, and water with the CDP.

Hugo De Stoop, CEO and Chairman of the Sustainability Committee of Euronav: “This is a well-recognised and respected third party accreditation of our sustainability and climate change credentials. Euronav has a strong sustainability focus, that we aim to integrate in every process throughout the company. Now, more than ever, companies, the shipping industry, and governments, need to take their responsibility. The time to act is now.”

Higher score than marine transport average

The CDP score ranges from A to D-, with A being the best possible rating, and is based on independent assessment against the scoring criteria of the CDP. Just like last year, the B score obtained puts Euronav in the ‘Management band’. Companies in this band are undertaking further steps to effectively reduce emissions, indicating more advanced environmental stewardship. Euronav’s score is higher than the marine transport sector average of C.

Euronav maintained its 'A' score on 'Emissions reduction initiatives' and vastly improved its 'Governance' score from a 'D' rating to an 'A' rating in 2021. This is a great achievement given that the CDP has raised the bar for qualification scores for climate leadership. The company's score was therefore lower than last year in five categories. The ‘Business strategy’, ‘Opportunity disclosure’ and ’Risk disclosure’ ratings fell from ‘A-‘ to ‘B’. ‘Risk management’ decreased from ‘A’ to ‘B-‘, and for ‘Targets’ Euronav received a’ D’ score.

Sustainable steps forward

A strong focus on high corporate governance standards and application of similarly high social standards within the company form the bedrock of Euronav’s commitment to sustainability. The Company has taken up a leading role in order to reshape the shipping and crude tanker industries and has been an active supporter of various international climate focused initiatives such as the Poseidon Principles and the Getting to Zero Coalition. More recently Euronav has become one of the signatories of the ‘Call to Action for Shipping Decarbonization’.

In addition to supporting such initiatives, Euronav also undertakes various projects within its own organization and with third parties to increase the sustainability of the organization. Testing biofuels, the establishment of a Joint Development Programme for ammonia-fitted tankers, and further digitization of the company are just a few of them. In December the company also secured an additional USD 73.5 million sustainability linked loan. The conclusion of this funding brings facilities with an integrated sustainability component to 41% of Euronav’s commercial bank financing.

New 2021-2025 CDP strategy to support net-zero emissions by 2050

There is a rising market demand for corporate environmental transparency. More than 590 investors with over USD 110 trillion in assets, and 200 major buyers with USD 5.5 trillion in procurement spend, requested corporate environmental data through CDP in 2021.

A record-breaking 13,000 plus companies representing over 64% of global market capitalisation disclosed through CDP. This is 35% more than last year, and over 141% more than when the Paris Agreement was signed in 2015.

To help tackle the climate and ecological emergency, the CDP has set out a new strategy for 2021-2025, with the aim to achieve net-zero emissions and full nature recovery by 2050.

The products and services herein described in this press release are not endorsed by The Maritime Executive.