A mixed-methods analysis of ESG implementation challenges, rating, and investment implications in global shipping

This study investigates challenges and investment implications of implementing Environmental, Social, and Governance (ESG) standards in the global shipping industry, which accounts for 4.4% of greenhouse gas (GHG) emissions. It employs a mixed-methods approach that integrates surveys from 84 participants from 28 companies and 5 financial institutions, expert interviews, and secondary data to examine how ESG frameworks affect sustainability, capital allocation, and corporate transparency in maritime transport. Results show significant discrepancies between disclosed ESG scores and environmental outcomes, with social and governance factors like gender diversity and ethical accountability underdeveloped. ESG financing, including loans and bonds, increased 800% to USD 280 billion in 2022 from 2015, highlighting the financial stakes. The Poseidon Principles (PP) and ESG-linked financing’s impact on emission reduction and governance reforms was assessed. This paper advances stakeholder and institutional theory applications by offering a structured framework to align ESG implementation with regulatory compliance and sustainable investment strategies.