A.p. Moller - Maersk A/s Class A · OMXCOP:MAERSK_A
A.p. Moller - Maersk A/s Class A — A.P. Moller - Maersk — Investor Day (2022)
47 slides from A.p. Moller - Maersk A/s Class A's investor day presentation, 2022
Slide 1: ESG Investor Day 2022
A.P. Moller - Maersk ESG Investor Day 2022 Classification: Public
Slide 2: ESG Investor Day 2022 Agenda
ESG Investor Day 2022 Agenda 13:00 - 13:05 Welcome to ESG Investor Day 2022 13:25 - 14:05 Decarbonising Logistics 14:40 – 15:00 Finance & Targets Patrick Jany Henriette H. Thygesen Patrick Jany Chief Financial Officer CEO, Fleet & Strategic Brands Chief Financial Officer Sarah Spray 15:00 – 15:10 Le
Slide 3: Session 1: ESG – the Maersk approach
Session 1: ESG – the Maersk approach 3 ESG Day 2022
Slide 4: ESG: Integral to business strategy and value creation
ESG: Integral to business strategy and value creation At Maersk, ESG is: E S G Core to our business strategy Embedded with Customer Financial & operational concrete targets synergies synergies Logistics & Ocean Terminals Integral to our company Services purpose and values Technology People 4 ESG Day
Slide 5: Our strategic sustainability priorities
Environment Business ethics Sustainable procurement Climate:Leading the decarbonisation Data Ethics Our vision of transport and logistics Our strategic Responsible Corporate Governance Our values sustainability Environment: Minimising negative environmental impacts Responsible Tax and contributing p
Slide 6: Governance: Operating based on responsible business practices
Governance Operating based on responsible business practices Business Ethics Sustainable Procurement Data Ethics Enabling Responsible Corporate Governance our growth Responsible Tax and business transformation Citizenship 6 ESG Day 2022 Classification: Public
Slide 7: Social: Ensuring that our people thrive at work
Social Ensuring that our people thrive at work Safety & Security Diversity, Equity & Inclusion Creating an environment Human Capital where employees are able Human Rights to bring their whole selves Employee Relations & Labor Rights to work and Sustainable & Inclusive Trade contribute their fullest
Slide 8: Environment: Taking leadership in the decarbonisation of logistics
Environment Taking leadership in the decarbonisation of logistics Driving the decarbonisation of transport and logistics Minimising negative environmental Making a global impact impacts and contributing positively at scale within the decade to protecting ecosystem health and supporting our customers
Slide 9: A.P. Moller - Maersk Carbon footprint
A.P. Moller - Maersk Carbon footprint • Total annual, global emissions of • There are considerable differences • In 2021, the total GHG emissions for green house gases (GHG) are in the carbon intensity between A.P. Moller-Maersk were 66,125 estimated to be approximately 50bn different modes of trans
Slide 10: Taking leadership in decarbonising logistics
Taking leadership in decarbonising logistics 2018 2022 2030 2040 • Launched Net Zero ambition • Accelerated targets towards • Industry-leading green • Net zero across our • Introduced ECO Delivery 2030 and 2040 customer offerings across the business and 100% • Defined future fuels priority • Investe
Slide 11: Session 2: Decarbonising Logistics
Session 2: Decarbonising Logistics 11 ESG Day 2022
Slide 12: Maersk decarbonisation targets on the way to 2040
Maersk decarbonisation targets on the way to 2040 2030 2040 • Ocean: ~50% reduction in • Logistics facilities: Min 90% emission intensity from green operations* 2020 baseline • Landside: Min 20% of moves of • Min. 25% of Ocean cargo customer’s cargo on low/zero transported with green emissions techn
Slide 13: Decarbonising Ocean
Decarbonising Ocean 2030 Targets Key Levers Actions Fuel efficiency improvements 19 green methanol-enabled vessels on order through 2025 Ocean • Network optimisation Green fuel enabled TEU capacity (% of total fleet by year end) ~50% • Network execution reduction in emission ~25% • Technical managem
Slide 14: Decarbonising Logistics Facilities & Terminals
Decarbonising Logistics Facilities & Terminals 2030 Targets Key Levers Actions Electrification Logistics Facilities • Equipment: 100% indoor, outdoor • Current investment in 12 where possible 90% warehouses with BREEAM, of logistics facilities • Renewable energy sources, e.g. LEED or Green 5-star on
Slide 15: Decarbonising Landside & Air Freight
Decarbonising Landside & Air Freight 2030 Targets Key Levers Actions Landside Transportation Efficiency improvements • 2021: Ordered 16 Volvo VNR 20% • Modal shifts Electric Class 8 e-trucks of customer cargo moves on low/zero • Digitally enabled optimized • 2022: Ordered 100 Volvo network and routi
Slide 16: Green Fuels: Expected technology maturation timeline
Green Fuels Expected technology maturation timeline Green methanol Piloting Scaling 2024 Delivery of large vessels 2021 2023 Scale from 2024 First vessel order First vessel delivery Green ammonia (current expectations; scalable late this decade) 2026 Small vessel/tanker deliveries expected 2024 2029
Slide 17: Imperative for success: securing adequate supplies of cost competitive green fuel
Imperative for success: securing adequate supplies of cost competitive green fuel Sourcing levers Expected green fuel requirement and sourcing lever ‘000 FOe ton Illustrative Drop-in biodiesel ~25% ~5 m. tonnes of green fuel ECO Delivery fuel today; Expect APMM green fuel demand required (~2.5 m. in
Slide 18: Signed MOUs: Eight leading partners will support us
Signed MOUs Eight leading partners will support us on the journey – with more to come • 300,000 tonnes per year • 250,000 tonnes per year • 100,000 tonnes per year • 100,000 tonnes per year • First delivery in 2025 • First delivery in 2024 • First delivery in 2025 • First delivery in 2027 • United S
Slide 19: Our decarbonisation roadmap from renewables through Power-to-X
Our decarbonisation roadmap from renewables through Power-to-X Direct electrification Battery electrification Power-to-X Transmission Transmission Transmission and charging infrastructure Electrolysis Electrolysis Synthesis Fuel cells electrical propulsion Combustion 19 ESG Day 2022 Classification:
Slide 20: Current regulation points in the right direction
Current regulation points in the right direction Decided Not decided Regional Measures Global Measures EU Fit US IRA and Clean Carbon intensity Energy Efficiency Long-term IMO for 55 Shipping Act indicator Design Index measures (ETS, FuelEU etc.) (IMO – CII) (IMO – EEXI) • Maersk supports as a • Has
Slide 21: A level regulatory playing field is key to achieving full decarbonisation
A level regulatory playing field is key to achieving full decarbonisation Maersk position A market based A well-to-wake Must look beyond Higher IMO US and EU GHG price/carbon approach is CO2 and include ambitions for measures will tax of at least required (lifecycle all GHG, notably 2030 and 2050 on
Slide 22: Strategic imperative, tangible solutions, strong regulation required
• Strategic imperative • Tangible solutions in place • Strong long-term regulation required 22 ESG Day 2022
Slide 23: Session 3: Creating value for our customers
Session 3: Creating value for our customers 23 ESG Day 2022
Slide 24: Where are customers today?
Where are customers today? Level 4: Leaders Level 3: Implementers • Are visible first-movers Level 2: Risk managers interested in sustainable Level 1: Explorers • Have ambitious sustainability transformation • Have basic minimum strategy integrated with logistics • Acknowledge that sustainability •
Slide 25: Ocean ECO Delivery: strong and expanding demand
Ocean ECO Delivery: strong and expanding demand ECO Delivery Volume (FFE*) Illustrative & scaled ~25% of total Ocean volumes ~3% of total Ocean volumes Q3 20 Q4 20 Q3 21 Q4 21 Q3 22 Q1 21 Q1 22 Q3 19 Q1 20 Q4 19 Q2 21 2030 Q2 20 Q2 22 Anticipated volumes Countries with Ocean ECO Delivery customers *
Slide 26: Ocean ECO Delivery: what's the differentiator?
Ocean ECO Delivery: what's the differentiator? The Ocean ECO Delivery product offers emissions reduced shipping based on biofuels enabling immediate and externally verified GHG savings for customers Customer benefits How it works (current Ocean ECO Delivery product) Flexible & easy Low investment Cr
Slide 27: The value proposition for Ocean ECO Delivery will go beyond emissions abatement
The value proposition for Ocean ECO Delivery will go beyond emissions abatement ECO Delivery 1.0 = current fuel price+ ECO Delivery 2.0 Illustrative & scaled Illustrative & scaled Price Price Ocean ECO Delivery 2.0 customer benefits: • Price certainty and stability Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 28: On the horizon: End-to-End challenge
On the horizon: End-to-End challenge Our goal: Industry leading green offerings across the supply chain by 2030 – net zero by 2040 A holistic approach in which we engage our customers as partners: • Create and provide visibility tools for customer emissions • Collaborate using long-term commitments
Slide 29: A credible, commercial pathway to achieve our emission targets
A credible, commercial pathway to achieve our emission targets The view from 2030: How the future may look from a technology and cost perspective: Direct Electrification Battery Electrification Power-to-X Sustainable Aviation Fuel Negative to low abatement Abatement cost below Abatement cost Abateme
Slide 30: Solving the Scope 3 challenge for our customers
Solving the Scope 3 challenge for our customers Select customer emission scopes and characteristics Scope 1+2 emissions Logistics share of scope 3 emissions Other scope 3 emissions Automotive Customer Apparel Customer Sporting Goods Customer ~11% ~13% Logistics & ~10% Logistics & Distribution Logist
Slide 31: Session 4: Finance & Targets
Session 4: Finance & Targets 31 ESG Day 2022
Slide 32: Clear and manageable financial commitments to reach decarbonisation targets
Clear and manageable financial commitments to reach decarbonisation targets “Green premium” adds approximately USD 1.5bn to capex Capex through 2025 • In order to meet 2030 targets, we expect approximately $5bn of Illustrative capex incremental to planned expenditure, of which ~ 50% in Ocean, Avg. ≤
Slide 33: Capital deployment to secure green fuel supply
Capital deployment to secure green fuel supply Green fuel Partnership Investment We enable supply of green fuels by We are open for partnerships in order to We invest in new, renewable fuel de-risking green fuel investment accelerate large-scale production of technologies via Maersk Growth through o
Slide 34: Target setting and ESG reporting
Target setting and ESG reporting Environment Social Governance Ocean: Group: Group: • ~ 50% reduction in emission intensity • Top Quartile score on engagement • 100% on employees trained on from 2020 baseline by 2030 survey by 2025 Code of Conduct by 2023 • Min 25% of Ocean cargo transported • > 40%
Slide 35: Committed to transparency and best practice
Committed to transparency and best practice Today Tomorrow Ratings Current reporting on material KPIs Committed to transparent reporting Aspire to leadership ratings by selected aligned to EU reporting standards aligned with upcoming ESRS and ISSB agencies. (NFRD), SASB and TCFD frameworks and stand
Slide 36: Goals anchored in management remuneration
Goals anchored in management remuneration Decarbonisation Safety Diversity • Scorecard based on performance in three categories with a three-year vesting period • Represents 20% of Executive Leadership Team (ELT) LTI compensation • Effective from 2023 LTI program 36 ESG Day 2022 Classification: Publ
Slide 37: Session 5: Led by our purpose and values
Session 5: Led by our purpose and values 37 ESG Day 2022
Slide 38: Our Core Values
Our Core Values Constant Care Humbleness Uprightness Our Employees Our Name Take care of Listen, learn, share Our word The right Everything today, actively and create value is our bond environment for we stand for prepare for for others our people tomorrow Whether solving today’s We stay curious, op
Slide 39: Q&A
Q&A 39 ESG Day 2022
Slide 40: Closing remarks: Improving life for all by integrating the world
Closing remarks • ESG is fully integrated into our corporate strategy • As a purpose and values led organisation we recognise our obligation to lead in the decarbonisation of logistics Improving life for all • We have a solid roadmap to achieve our targets and the commitment of all stakeholders by i
Slide 41: Appendix
Appendix 41 ESG Day 2022
Slide 42: Integration into corporate governance
Integration into corporate governance Executive remuneration linked to key ESG targets from 2023 42 ESG Day 2022 Classification: Public
Slide 43: Physical impact of climate risk
Physical impact ofof climate risk Risk Asset identification Impact Mitigation Assessment climate 107 assets selected Analysing the scenarios 7 assets were identified in scenarios for analysis from 2020 - 2050 high-risk locations • Maersk has conducted an • Maersk land-based assets, • Results indicat
Slide 44: We are becoming a diverse equitable and inclusive workplace
We are becoming a diverse equitable and inclusive workplace Our commitment Gender 3/10 Leverage diversity of Women on the Board of backgrounds and experiences to Women in management (JL4+ - % based on headcount) Directors Non OECD Nationalities/Exec Leadership (JL8&9 % based on headcount) create a m
Slide 45: Green Target/Capex/Opex Overview
Green Target/Capex/Opex Overview Ocean LnS APM Terminal • 50% reduction in emission intensity based on • Air: 30% of cargo transported with SAF. • 70% emission reduction based on a 2020 baseline a 2020 baseline. • Logistics Facilities: Min. 90% green operations* (scope 1 and scope 2) • 25% of cargo
Slide 46: Maersk's Green Finance Framework
Maersk’s Green Finance Framework The green finance framework aligns aersk’s funding Maersk Green Investors strategy with sustainability objectives Finance Framework • Investors looking for • Maersk has created the Green Finance Framework which will • Issuing of green bonds based sustainable investme
Slide 47: Sustainability reports and ESG data
Sustainability reports and ESG data maersk.com/sustainability/reports-and-resources Read more about our commitments Learn more about our responsible business practices, our commitments to net zero GHG emissions, and our engagement with customers maersk.com/sustainability 47 ESG Day 2022 Classificati