The challenges – and opportunities – of human rights at sea

News article
27 October 202202:00
Sustainable banking newsletter

Ships transport 80 per cent of all goods worldwide – worth a staggering EUR 14 trillion – between countries and continents every single year. Not only is shipping the largest transport sector, but it’s also the most cost-effective means of moving goods internationally. Plus it’s relatively less polluting than road and air transport. But those working in the industry are often isolated while at sea, a situation that can unfortunately sometimes lead to substandard working conditions.

As a general rule, seafarers love their work – they often enjoy the adventure, take pride in what they do and make a vital contribution to the global economy. However, their work has a darker side. Seafarers can suffer from stress, mental health problems, working overtime and a lack of rest. Plus women at sea sometimes face harassment. All this was the subject of recent thesis research at ABN AMRO focusing on seafarers and other industry stakeholders.

Covid-19

The vulnerable position of seafarers was thrown into sharp relief when the Covid-19 pandemic struck. Some interviewed as part of the research reported that they were forbidden to come ashore when various lockdowns were in effect and simply had to keep working. Conversely, others sat at home, without work or income, waiting to sail. Changing crews is important not only for the well-being of the crew, but also for safeguarding the trade in essential goods such as medicines.

“At the bank we focus closely on environmental, social and governance (ESG) factors,” says Business & Human Rights Adviser Emmelie Claessens, who conducted the thesis research. “With the environment so often in the spotlight, the social aspect of ESG can sometimes be overlooked – even in the shipping industry, a sector that can be illusive because of the isolation that comes with being at sea.”

Partner of choice

Shipping is an important sector for ABN AMRO. Indeed, the bank has worked with a number of international shipping companies for decades and is the partner of choice when it comes to ESG and sustainability, says Éomer Zwijnenberg, Senior Director Shipping Clients.“With our purpose of ‘Banking for better, for generations to come’, we want to help accelerate the transition to sustainability in the shipping industry, too, where many pioneering initiatives have already been launched. For example, there’s the Poseidon Principles and the Neptune Declaration on Seafarer Wellbeing and Crew Change, which safeguards the welfare of those at sea. Plus many of our shipping clients have implemented an ESG strategy and put in place training programmes focusing on wellbeing and safe working conditions. But the thesis research shows there are still areas with room for improvement.”

Some issues are implicit in shipping and difficult to change. Being at sea is not, and never will be, a nine-to-five office job. “If you attach great importance to your day-to-day work–life balance, don’t become a seafarer,” Emmelie says matter-of-factly. “People at sea often are on the job day and night for months at a time. It’s often hard work, too – that’s just part and parcel of being at sea. Nevertheless, many seafarers really love their job.””

Transparency and monitoring

The demanding nature of the work doesn’t absolve companies of their responsibility to create and maintain a healthy and socially safe working environment on the vessels, though. Accordingly, ABN AMRO has, in its capacity as a lender to the shipping industry, expressly incorporated the issue of working conditions into its dialogue with clients. Progress involving carbon emissions, for instance, is easy to measure, but that’s not necessarily true of social safety, especially not at sea.

“The problem is that an information gap persists,” Emmelie admits. “We can’t see what happens on board; even shipowners don’t always know everything that’s going on. And that’s precisely why awareness is so important and why we should continue to look at ways to increase transparency and monitoring.”

Opportunities for shipping

Éomer says a sector-wide approach is needed: “Shipping is a complex international industry involving numerous ports, countries and jurisdictions. Regulators, charterers, suppliers, owners and financial institutions all play a role and bear some degree of responsibility. Working conditions are part of our client sustainability assessment process, which equips us with concrete tools for establishing a constructive multidisciplinary client dialogue.”

Shipping companies can also avail themselves of ABN AMRO’s research. Emmelie says, “Not all the research results were positive. But they do present an opportunity, particularly in today’s tight labour market. The research shows what employees place importance on, and where potential areas for improvement are. I hope this turns out to be a win-win situation for shipping – a thriving industry with happy employees.”

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