Ship It Zero Report Card: Many Retail Brands, Ocean Cargo Carriers Failing on Shipping Climate Action
Maritime Shipping is the heart of world trade. The OECD estimates that 90% of traded goods are transported on oceangoing vessels. Ocean shipping is also a major climate polluter. It is estimated that international ocean shipping accounts for approximately 3% of global greenhouse gas emissions. If it were a country, it would be the world’s sixth largest climate polluter. In fact, maritime shipping contributes more total greenhouse gas emissions than the international airline sector. Greenhouse gas emissions from ocean shipping continue to grow.
The international body that regulates transoceanic shipping is the United Nations International Maritime Organization (IMO). In July 2023, the IMO finalized its revised greenhouse gas reduction targets: 30% absolute emissions reductions by 2030; 80% absolute emissions reductions by 2040; and net-zero by 2050. These stronger revised targets are not sufficient to limit global warming to 1.5 C, and yet many ocean carriers are still not yet at a level of ambition to achieve these IMO goals.
The International Energy Agency states that in order for ocean shipping to achieve net-zero by 2050, absolute greenhouse gas emissions from all international vessels must hold steady through 2025 (despite the continued growth) and must start decreasing thereafter.
Although ocean shipping is often a small part of each retail brand’s overall greenhouse gas emissions, those small pieces add up to an enormous climate puzzle that must be solved if the world is to limit global temperature rise to 1.5 C.
Key Findings
This inaugural Ship It Zero report card exposes just how far behind most retail brands and ocean carriers are on tackling this massive climate problem.
IKEA leads retail brands
While IKEA is taking action today to reduce its transportation emissions, many major retailers are not yet even quantifying their complete Scope 3 emissions. These are defined as emissions the company is indirectly responsible for through its supply chain.
Focus on efficiency and optimization
Efficiency and optimization of logistics and packaging appear to be the most common actions taken among those brands that are taking action. While this is an important step on the path to reduce emissions, this falls far short of the level of ambition necessary from retail companies.
Shipping carriers and lagging behind
Most shipping carriers are not only failing to meet out of line with the IMO targets, but are far behind on meeting a 1.5 C trajectory. Multiple carriers are relying on extended timeframes and false solutions (LNG, scrubbers, and carbon offsets) that will not contribute to solving the climate crisis.
