Euronav

Although Euronav’s emissions intensity has increased between 2016 and 2021, despite this, the company’s emissions intensity in 2021 was still below the 1.5°C scenario value. The company has a relatively young fleet with an average age of 9 years and Euronav’s projected cumulative emissions from 2022 to 2036 are expected to remain within its carbon budget.

As Euronav’s transition plan relies on new fuels and technologies being available at scale, research and development (R&D) expenditure on low-carbon vehicles and energies will be essential for the company to develop a low-carbon fleet. The company invests in R&D into alternative fuels for large oil tankers, membrane-based carbon-capture systems, digital twin models, wind-assisted propulsion solutions and alternative propulsion systems. The company also supports academic research on fuel cells for propulsion and for electricity production. However, it does not disclose what proportion of its R&D expenditure is invested in low-carbon vehicles and energies.

Although Euronav has implemented board-level oversight of climate change, there is no evidence that its board members have significant expertise in the low-carbon transition. Moreover, the company does not incentivise low-carbon performance through executive compensation, and the remuneration package in 2021 still incentivised business as usual practices .. Euronav has planned to incorporate environmental, social and governance (ESG) aspects in its incentives from 2022, but it has not disclosed which performance indicators will be included. The company can improve the likelihood of a successful low-carbon transition by aligning its incentives with its decarbonisation commitments.

Euronav has developed a procurement policy which incorporates sustainability as a principle and criterion. Euronav uses the Suppliers Sustainability Index tool to support the sustainability impact assessment of its strategic suppliers. The tool is an engagement platform to capture the suppliers’ sustainability maturity level, support them with their performance and the tool is used in supplier selection. Euronav NV has announced a joint development programme with the largest shipbuilders to help accelerate the development of dual fuel ammonia-fitted vessels.

Euronav has set a target to reduce scope 1 and 2 emissions intensity by 40% by 2030 and plans to achieve net zero by 2050 with an ambition to get to net zero by 2040 the earliest. The company aims to limit carbon offsets to 10% of the total emissions in 2020.

Euronav’s low-carbon transition relies on new low-carbon fuels and technologies and that these are financially viable. The company has invested in the research and development of wind assisted propulsion and alternative fuels and launched joint development programmes with shipbuilders to develop dual fuel ammonia fitted

The company does not disclose what proportion of its R&D expenditure is dedicated to low-carbon technologies. Currently, energy efficiency is a focus area. Additionally, Euronav is testing the operational readiness of various biofuel blends.

Euronav’s scope 1 and 2 emissions intensity increased by 2% per tonne kilometre annually, from 2016 to 2021. Although the intensity increased, the company’s annual emissions decreased and cumulative company emissions remain well within the cumulative budget for the period.

Euronav’s targets suggest it is committed to the low-carbon transition. However, developing a robust transition plan will help it move from commitments to action. The reliance of its plan on new low-carbon fuels and technologies poses further risk, as these are still immature and expensive.

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 evidence was found of the company having a public commitment to respect human rights or to respect all of the ILO fundamental rights at work. Furthermore, the company can strengthen its disclosure on its human rights due diligence process and on its engagement with affected stakeholders. The company does, however, have a grievance mechanism available to workers and external stakeholders for reporting human rights concerns.

The company commits to respecting the health and safety of its workers. However, no evidence was found of the company placing expectations on its business relationships to commit to respecting worker health and safety. The company discloses that 60% of its board members are female and it discloses the gender of its workforce by employee category. However, it can strengthen its commitment to gender equality and women’s empowerment at a broader level. Furthermore, the company can increase disclosure on its living wage, working hours and collective bargaining practices.

No relevant disclosure was found of the company committing to protect personal data of employees and customers. While the company has a grievance mechanism available to all stakeholders to report bribery and corruption concerns, no public document was found specifying the company’s anti-bribery and anti-corruption policy. Additionally, the company can strengthen disclosure regarding its global tax strategy and its lobbying and political engagement approach.