The maritime industry is moving too slowly to come into compliance with rigorous new European sustainability regulations, which carry the threat of significant fines and even jail, leading environmental consultancy Tunley warned today.The European Union’s Corporate Sustainability Reporting Directive (CSRD) will accelerate the adoption of sustainable practices, energy-efficient technologies and alternative fuels.
But shipping lines, marine equipment manufacturers and shipyards will need to speed up their compliance work or risk colliding with the giant iceberg of regulation that is just around the corner, said Tunley CEO Will Beer.
“The new directive is a game-changer for business sustainability, but its reach is extensive and poses significant challenges, which require immediate action,” he said.
“Maritime companies will need to enhance their reporting on crucial environmental aspects such as emissions, waste management, and biodiversity impacts. This increased transparency may accelerate the adoption of sustainable practices, including the use of alternative fuels and energy-efficient technologies.”
Companies which fail to comply with the strictures of the new regulations will face severe penalties with fines up to five percent of turnover.
Additionally, France has adopted the directive into national law with specific penalties for corporate directors that include up to five years in jail plus hefty fines.
Around 50,000 companies will fall into the CSRD net, an almost five-fold increase over existing requirements.
Large European companies need to provide compliant sustainability reports from January 1, while listed SMEs will be brought into line in 2026. Large non-EU companies with significant European business will need to be legally compliant by 2028.
“Companies around the world will be impacted,” said Beer. “The directive applies to all large companies operating within the EU, regardless of where they are headquartered, and includes those with significant operations, subsidiaries or business in the EU market.
“Reporting requirements are much more comprehensive. Companies are required to disclose information on sustainability risks, opportunities, and impacts related to environmental, social, and governance (ESG) factors. Importantly, all the information provided has to be audited and approved by a third-party.
“Adopting CSRD can certainly pose challenges such as understanding the detailed reporting requirements and integrating them into existing corporate frameworks,” said Beer. “To navigate these complexities, companies should begin by understanding the essentials of the directive. Key steps include identifying the scope of reporting requirements, assessing current practices against CSRD standards and planning for necessary adjustments.
“By expanding the scope and standardizing sustainability reporting, the EU is increasing transparency around sustainability practices, combatting greenwashing, and enabling consumers, investors, and policymakers to make more informed decisions.”
The implications are particularly significant for the maritime industry, which will likely need to enhance reporting on crucial environmental aspects such as emissions, waste management, and biodiversity impacts.
At Tunley Environmental, its team of sustainability scientists can provide tailored solutions to overcome the challenges with expert guidance, comprehensive training and robust frameworks to ensure seamless integration and compliance with the new regulations.
“The CSRD is a cornerstone of the EU’s sustainability agenda, and it matters because it drives corporate accountability and supports the transition to a sustainable economy,” added Beer.
“The directive is also an opportunity for the maritime industry to position itself as leaders in global sustainability.”
Source: Turnley Environmental
