CMA CGM is a publicly listed company headquartered in France. In 2021 its revenue was USD 56.0 billion. CMA CGM is a shipping and logistics company that offers marine, air and road freight transportation services. It has 566 vessels, and it is present in over 160 countries with more than 130,000 employees worldwide.
CMA CGM has set ambitious decarbonisation targets to achieve net-zero emissions by 2050. However, the alignment of these targets with the company’s 1.5°C pathway could not be assessed because of the target’s reliance on unquantified offsets. The use of offsets reduces the emphasis on direct action to reduce emissions. CMA CGM will benefit from setting targets at 5-year intervals. Setting regularly spaced intermediate targets will incentivise near-term actions on longer-term goals.
Although the company has implemented board-level oversight of climate-related activities there is no evidence that its board has adequate climate expertise. CMA CGM’s transition plan shows the company’s commitment on research and development (R&D) to address climate change issues. However, financial commitments are required to strengthen the credibility of the plan. In addition, a longer timeframe that covers the full timeline of the company’s targets (2050) will help clarify long-term goals and actions as the plan only covers until 2025.
CMA CGM significantly reduced its scope 1 sea fright emissions intensity between 2017 and 2020 at an average annual decrease of nearly 5.5%, compared to 4.6% needed by the company’s low-carbon pathway. However, it should be noted that the company is now increasing air freight activities from its Air Cargo division, introduced in February 2021 and did not disclose data on air freight activity or emissions intensity in 2021. CMA CGM risks undermining the progress it has made in reducing its sea freight emissions intensity.
CMA CGM receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. CMA CGM has set up ambitious emissions reduction targets to reach net zero by 2050. The company has decreased its emissions intensity faster than required by its 1.5°C pathway. However, CMA CGM is increasing its air freight activities due to its new Air Cargo division.
CMA CGM is committed to promoting a modal shift from road to rail and barge. However, its transition plan lacks clarity on its level of ambition for R&D into low-carbon technologies.
CMA CGM is committed to reducing its scope 1 and 2 emissions by 30% by 2025 compared to 2015 and reaching net zero by 2050. To achieve these goals, it aims to increase its LNG-powered fleet, invest in bio-methane research and integrate 10% alternative fuels in its energy mix by 2023.
The company’s transition strategy relies on growing its LNG fleet and introducing bio-methane into its maritime energy mix while expanding its intermodal solutions for inland transport. It also invests in R&D for road fleet electrification and hydrogen-powered vessels.
The company does not disclose what proportion of its R&D expenditure is dedicated to low-carbon technologies. CMA CGM is collaborating with suppliers to reduce emissions via programmes such as partnerships with truck leasing companies for road fleet electrification.
The company’s reported emissions intensity decreased by about 16% between 2017 and 2020, reaching 52 gCO2e/Twenty-foot Equivalent Unit(TEU)-km in 2020. The decrease rate exceeded that required by the company’s 1.5°C decarbonisation pathway.
CMA CGM’s targets suggest it is committed to the low-carbon transition. It recognises that many of its strategies rely on the availability of low-carbon technologies, and it collaborates with vehicle manufacturers, lessors and international research coalitions to realise these needs.
No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.
No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.
No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.
No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.
No policies or commitments of the company related to the respect for human rights in their own operation or their business relationships were found in the public domain. The company does, however, have a grievance mechanism available to workers and external stakeholders.
The company expects commitments to worker health and safety for its supply chain, sets targets for gender equality and it discloses some information on workforce diversity fundamentals. However, the company can strengthen its disclosure on these subjects, as well as on its living wages, collective bargaining and working hours practices.
The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. No relevant disclosure was found in regards to the company tax strategy or income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. Furthermore, while the company does not have a lobbying and political engagement policy, it specifies that it does not make political contribution.