ESG in Shipping — Basically ISO, Just with Better Marketing

Alright… let’s keep this simple.

ESG in shipping is not really a strategic choice. It just looks like one right now — which is why everyone is still acting relaxed about it.

If you’ve been around long enough, you’ll remember ISO turning up in the late 80s. Total nuisance. People hated it with passion.

Back then the comments were textbook: “We already run a proper operation”, “More paperwork… fantastic”, “No one is actually going to enforce this”

Sounds like any recent ESG conversation you’ve had? Fast forward a few years and suddenly: No ISO = no contract, No ISO = no shortlist, No ISO = enjoy your free time (because you’re not winning anything) And all the guys who said,“this won’t last”, where are they now?

ESG Right Now — Slightly Chaotic, Slightly Annoying

Let’s be honest. ESG today is a bit of a mess: Too many consultants, too many buzzwords, everyone uploading glossy PDFs that nobody actually reads

Half the time it feels like adult homework. But here’s the catch — even if the execution is messy; the direction is not.

Banks are tightening (quietly). Charterers are slipping ESG into contracts (also quietly) and investors are asking questions you wish they wouldn’t. No big headlines. Just pressure slowly increasing.

Like turning up the heat while pretending nothing is happening.

The Industry Split （You Know This Already）

Right now, you’ve got two types of players.

Group 1 - The early movers. The slightly annoying ones. Talking about ESG, building dashboards, putting them in presentations. Easy to ignore.

But what they’re actually doing: Getting better conversations with customers, making life easier with banks and getting ahead of regulation instead of reacting to it. They look expensive today; they will be geniuses later.

Group 2 - The “let’s not rush” crowd. Probably most of the industry. “We’ll wait until it’s clearer”,“Let’s not overcomplicate things”,“We’ll comply when we have to.”

Sounds reasonable, until one day: A customer asks for emissions data you don’t have, a bank asks for ESG metrics you never tracked, or a tender quietly requires something you can’t prove. And suddenly you’re scrambling, paying more, and explaining internally why you’re behind. Good times!

Yes, It Costs Money (No Way Around It)

Let’s not dress it up. Early ESG means: More systems, more reporting, more operational friction, so yes, the cost goes up. That’s exactly why people delay it. Same movie with ISO.

Then Things Flip (This Is Where It Gets Interesting)

Once ESG settles down a bit: Standards start to align, processes become routine and data actually starts being useful. Suddenly you track fuel performance better, you cut inefficiencies you didn’t see before, you manage suppliers more properly, and you get better traction with financing.

So, what started as “compliance pain” quietly turns into performance and cost control. Funny how that works. Exactly what happened with ISO.

Reality Check

You can disagree with ESG frameworks. Plenty do. You can complain that the scores are inconsistent. Also true. But shipping doesn’t move based on opinions.

It moves based on: Who gets cargo, who gets financing and who gets approved

That’s how ISO won. That's how ESG will win.

Final thought (the slightly painful one)

You can absolutely ignore ESG today. No one is stopping you. It’s a perfectly valid strategy…

Until one day you realize: Your competitor is winning the business, your bank is asking different questions, and your “wait and see” plan has turned into a catch-up at any cost plan. At which point ESG becomes very important, very quickly…and usually slightly more expensive than it needed to be.