Evergreen Marine Corporation is a privately owned company headquartered in Taiwan, China. In 2021 its revenue was USD 18.93 billion. It is the fifth largest shipping company in the world. The company is a member of the OCEAN Alliance through which it commits to vessel-sharing agreements with COSCO and CMA CGM.
Evergreen has set targets to reduce its scope 1 emissions intensity from shipping operations by 50% by 2030 and 70% by 2050, compared to 2008. Neither target is aligned with the company’s 1.5°C pathway. The company has also committed to reaching net zero by 2050, but it is unclear if the company will rely on carbon offsets. To align its 2030 and 2050 target year emission intensities with its 1.5°C pathway, the company should reduce its emissions intensity by at least 60% by 2030 and 90% by 2050 compared to its 2008 levels, respectively. Evergreen should also set targets with a base year using the most recent year of available data.
Evergreen’s scope 1 emissions intensity increased between 2016 and 2021. Although it decreased by about 2% between 2016 and 2020, in 2021 it increased to its highest level since 2015. This contrasts with the company’s 1.5°C pathway, which requires Evergreen to make decreases of 5% per year between 2021 and 2026. In addition, Evergreen’s cumulative emissions between 2022 and 2036 are projected to greatly exceed the company’s 1.5°C carbon budget. The company can improve its future performance by committing to invest in low-carbon vessels. It should target a 35% low-carbon vessel share by 2035 to align with the 1.5°C sector scenario.
There is no evidence that Evergreen has a comprehensive transition plan though the company demonstrates elements of transition planning through its targets and near-term commitments to improve efficiency. However, it should develop a robust plan with clear financial commitments, that outlines how it will transition to a low-carbon economy in the long-term. Evergreen has assessed climate-related risks in line with the Taskforce on Climate-Related Disclosure (TCFD) recommendations. The company should develop this further by undertaking 1.5°C-aligned scenario analysis and integrating the results into its transition planning.
Evergreen does not engage with suppliers to support their emission reductions. The company plans to start auditing suppliers’ sustainability in the future. It should ensure that climate-related requirements are included and encourage suppliers to set emission reduction targets. In addition, the company plans to undertake research and development (R&D) projects with suppliers to develop and test low-carbon fuels. However, it is yet to turn these plans into action. Evergreen should collaborate with ship and fuel manufacturers and collaborate to develop low-carbon vehicles and fuels that can drive emission reductions within its own operations and its suppliers.
Evergreen receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. Evergreen has not decreased its emissions intensity between 2016 and 2021. This indicates that it is unlikely to reduce its emissions intensity by 2026 and will diverge further from its 1.5°C pathway. The company has not shown any indication that it plans to change its business activities to facilitate the low-carbon transition. In addition, it has not committed to investing in low-carbon vessels in the future.
Evergreen has set targets to reduce its scope 1 emissions intensity by 50% by 2030 and 70% by 2050, compared to 2008. The company also aims to reach net zero by 2050, but it is unclear if it will rely on carbon offsets.
Evergreen does not have a comprehensive transition plan to achieve its decarbonisation targets. It plans to improve fuel efficiency and replace old ships. The company also states that it will work with suppliers to test new fuel sources such as biomass fuel oil, hydrogen and ammonia.
There is no evidence that the company is taking action to reduce its emissions on a large scale. It is focused on monitoring fuel use and applying minor efficiency gains such as improved routing. Evergreen has analysed climate risks but has not undertaken climate scenario analysis.
Evergreen’s scope 1 emissions intensity from its shipping operations decreased by 2% between 2016 and 2020 before increasing to its highest level since 2015 in 2021. This resulted in a small increase between 2016 and 2021.
Evergreen measures its emissions intensity targets against 2008 levels. Despite a significant reduction since 2008, there is no evidence that the company has made progress since 2016. Evergreen is unlikely to achieve its targets or 1.5°C alignment without a comprehensive transition plan.
The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show 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 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 and with stakeholders in its just transition planning.
The company discloses the actions it takes to provide training and education opportunities for workers and affected stakeholders. For instance, it has a post-bachelor training programme for non-maritime students, to engage them in maritime work. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.
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.
The company commits to respecting human rights and the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers, but not external stakeholders.
The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity.
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. The company offers a grievance mechanism for internal and external stakeholders. However, the company can strengthen its disclosure on these subjects and other key ethical business topics, including tax, bribery and corruption, and lobbying and political engagement.