ZIM Integrated Shipping Services is a publicly listed company headquartered in Israel. In 2021 its revenue was USD 10.73 billion. ZIM was established in 1945 to transport immigrants and supplies from Europe to the newly established state of Israel. Now it is the 10th largest shipping company by cargo capacity in the world. It was state-owned until its privatisation in 2004.
ZIM has a sustainability clause in its supplier code and a sustainability questionnaire that it sends out to its suppliers. However, only 45% of the company’s suppliers respond. The company should target all its suppliers and encourage them to disclose their emissions. Additionally, ZIM can go further by encouraging suppliers to set science-based targets and developing joint low-carbon research and development (R&D) projects.
ZIM has set a target to reduce its emissions 50% by 2050 compared to 2008, with an intermediate target set for 2030. These targets are aligned with the recommendations of the International Maritime Organization (IMO). However, they do not align with the company’s 1.5°C pathway and fall short of the level of ambition of many of the other benchmarked shipping companies. ZIM should set a net-zero target for 2050 at the latest as well as intermediate targets at gaps of no more than five years to incentivise near-term action.
ZIM has implemented board-level oversight of climate change and has included fuel-efficiency metrics in the incentive programme of its Chief Operating Officer. The company should expand its incentive programme to include emission reduction metrics in line with its targets for all its executives. The company has developed a low-carbon transition plan. However, ZIM did not conduct a climate scenario analysis to inform its transition plan and ensure the plan’s ambition is sufficient for a 1.5°C pathway.
ZIM receives a trend score of =. If the company were reassessed in the near future, its score would likely remain the same. ZIM successfully decreased its emissions intensity over the last five years at a rate faster than required by its 1.5°C pathway . The company has set a long-term and an interim decarbonisation target. However, the company’s targets do not match the ambition of its 1.5°C pathway. ZIM has implemented board-level oversight of climate change and has developed a transition plan. However, the transition plan lacks detail and financial commitments.
ZIM aims to achieve a 50% reduction in emissions by 2050 compared to 2008, with an interim target to reduce emissions intensity by 40% by 2030 compared to 2008. These targets align with the IMO’s climate strategy.
The company plans to achieve emissions reductions through the use of liquefied natural gas (LNG) vessels and energy efficiency improvements. In the long term the company plans to transition to the use of ammonia as a zero-carbon fuel however, no deployment schedule is disclosed
ZIM has ordered and entered into a charter agreement for LNG ships and plans to bring 28 of these vessels into operation by the first half of 2023 (the company currently operates a fleet of 118 vessels). The company has committed to using bio-LNG “where possible”.
The company has reduced its emissions intensity significantly over the past five years, decreasing at a faster rate than required by its 1.5°C pathway. ZIM has achieved these reductions through energy efficiency improvements and ensuring full capacity is utilised.
ZIM is making efforts toward achieving its low-carbon transition and has strongly committed to expanding the proportion of LNG vessels in its fleet. However, LNG vessels are not considered low-carbon vehicles unless biogas is used. The company does not have a net-zero target and its 2050 target does not match the ambition of its 1.5°C pathway.
Just transition assessment
Social dialogue and stakeholder engagement
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.
The company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in training opportunities. For instance, it partners with an information technology (IT) company to offer training and employment opportunities in software engineering for ultra-Orthodox women in Israel. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition 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.
No evidence in policy documents was found of a company commitment to respect human rights or all of the ILO fundamental rights at work. Furthermore, the company can strengthen its disclosure on its human rights due diligence process and engagement with affected stakeholders. The company does, however, have a grievance mechanism available to workers and external stakeholders.
The company discloses the proportion of its direct workforce covered by collective bargaining agreements and some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, the company can increase disclosure on these subjects, as well as on its living wage and working hours practices. Furthermore, the company can strengthen its commitments to respecting worker health and safety and gender equality.
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 of employees and customers. While the company has a policy prohibiting bribery and corruption, no evidence was found of the inclusion of anti-bribery and anti-corruption clauses in its contracts with business relationships. Furthermore, no evidence in policy documents was found regarding its global tax strategy and its lobbying and political engagement policy.