Maersk Sustainability Report 2012

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Going for Growth

SustainabilityReport 2012

The A.P. Moller - Maersk Groups


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Contents

introduction

Company profle 4

Foreword by the CEO 7

The Group at a glance 8

Growing our business 10

Our impacts in Brazil 14

business units

performance

Container industry 55

Maersk Line 56

APM Terminals 58

Damco 60

Maersk Container Industry 61

Oil & gas industry 63

Maersk Oil 64

Maersk Drilling 66

Maersk Tankers 68

Maersk Supply Service 69

Svitzer 70

Maersk FPSOs 71

Dansk Supermarked Group 72

about the report

Responding to 2011 key

assurance recommendations

Independent assurance report

Group consolidated perorma

Sustainability accounting prin

group performance

Materiality 21

Stakeholder engagement 23

Strategy & governance 25

Saety 28

Piracy 33

Climate & environment 34

Human rights 40

Global labour principles 42

Diversity & inclusion 43

Employee engagement 46

Anti-corruption & whistleblowing 48

Responsible procurement 50

Tax 52

s report fulfils the A.P. Moller - Maersk

ups obligation to communicate on

gress to the UN Global Compact andplit into three related yet independent

ions:

roduction

s the scene and explains the context

hin which the Group operates and our

iness response to key sustainability

llenges and opportunities.

Group performance

Provides an overview of 2012 performance

within our Group programmes whichinvolves all our businesses: efforts within

safety, climate and environment, diversity,

human rights, anticorruption and respon-

sible procurement.

Business unit section

Reports on key material issues and per-

formance for each of our businesses incontainer transport, oil & gas and retail.

The last part of the report delivers con-

solidated data and relevant explanation.

It includes our sustainability accounting

principles and the assurance statement.


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MAERSKDRILLING

MAERSKOIL

MAERSKLINE

DAMCO

MAERSKSUPPLYSERVICE

MAERSKFPSOs

MAERSKTANKERS

SVITZER

MAERSK

CONTAINER

INDUSTRY

NETTO

APM

TERMINALS

Company prole

Read moremk.cm/

ivli

AP Moller - Maersk Group is a worldwide con-

merate with core ocus on shipping and oil & gas

employ approximately , people, operate

countries and are headquartered in Copenha-

Denmark

lang global conanrsd rad

are the worlds largest container shipping com-

y and together with our container terminals and

stics businesses we handle a large share o theds containerised trade

Sorng global dand for nrg

We support global energy needs through the explo-

ration, extraction and transportation o oil and gas

Ral and or bsnsss

The Group is also active in retail, operating more

than , stores in our countries

Our major businesses are displayed in the graphic

below A more extensive list o our companies can

be ound on maerskcom and in our annual report

Comacts

+121,Elees

130Cutries

USD59,03Reveue

USD 4prt r th

USD 3Tx r the

Suliers

Elees (slries)

Shrehlders (divideds)

public sectr (txes)

Ivestets (et)

Reet brrwigs

%

%

%

%

%%2012 fw

distributedb stkehlder gru

Sustainability Report Sustainability RepoIntroductionIntroduction


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There is a dierence between just makingmoney and building a long term sustainab

business. Transparent responsible busines

practices make that dierence or us.Dear reader,

The AP Moller - Maersk Group has set

its course on growth Our investments

are targeted at quality services that can

enable growth and development or ourcompany, our customers and local commu-

nities Our primary ocus or new projects is

on the worlds growth markets

Here, our terminals and shipping services

oer countries and businesses better

access to markets, eicient inrastructure

and reliable transport services Globally,

our oil and gas businesses help provide the

energy needed to underpin the ambitions

o growing industries and economies

Fuelling economic growth and trade

presents a number o sustainability chal-

lenges We are committed to addressing

these as part o our signatory to the UN

Global Compact

W s rod

a safr worklac

Our responsibility is to ensure that our

employees return saely to their homes

and amilies ater work But during seventeen people lost their lives in our op-

erations There is no excuse or this reality

we undamentally believe that every

accident can be prevented The increase

in atal accidents across several o our

businesses stresses the need to urther

strengthen our ocus on process saety

and risk management Our goal is simple:

zero atalities

La n nrg ffcnc

srs nw abons

Climate change is a global concern which

we share Our ocus on energy eiciency

has been successul in reducing our oot-

print and lowering costs; especially in ship-

ping where technical innovation and daily

optimisation help deine new standards

or mass-moving goods Since , the

Group has achieved an % improvement in

CO eiciency Both our relative and abso-

lute emissions decreased in Our new

target is a % improvement rom

to

On rg rack w

ncrasd ransarnc

Whether we are building a new container

terminal, drilling or oil or developing a ship-

ping service, we want to be transparent

about what we do, why and how We see

increased transparency on strategy, peror-mance and industry challenges as an im-

portant part o our competitive advantage

It is not just our results that matter, but how

we deliver them Our custome

and employees naturally pre

someone they can trust

and rard for w

Our growth ambitions depenple To attract and retain the

we want to leverage the mult

diversity in our company and

orward more proactively m

in terms o the number o wo

in leadership positions Overa

engaged teams prove to per

We concluded with top

ployee engagement a proud

and a undamental prerequis

our growth ambitions

The Group stands prepared

ahead There is a dierence b

just making money and build

term sustainable business T

responsible business practic

dierence or us

Nls S. Andrsn

CEo the a.p. mller - mer

Executive Brd csists the

mller - mersk Grus CEo d CFo,

g with the CEos the ur cies

re the i cus ur ivestets

rtegic grwth. Fr let:

Claus V. Hemmingsen, CEO, Maesk Dilling

and Chaiman o the Sustainability Council

Nils S. Andesen, Goup CEO

Tond Westlie, Goup CFO

Jakob Thomasen, CEO, Maesk Oil

Sen Skou, CEO, Maesk Line

Kim Feje, CEO, APM Teminals

S us ta in ab il it y R ep oForeword by the CEO


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FATALITIES

2010 2011 2012

ANTI-CORRUPTION

2010 2011 2012

LABOUR PRINCIPLES

2010 2011 2012

FUEL OIL 1,000 TONNES

2010 2011 2012

EMPLOYEE ENGAGEMENT

2010 2011 2012

WOMEN IN LEADERSH

2010 2011

RESPONSIBLE PROCUR

Approached

Registered

Assesed

CO EMISSIONS 1,000 TONNES CO eq.

2010 2011 2012

he Gru t glce

2012 perormance

,,

,

2

,

,

%% %

% %

errce

We experienced 17 fatalities. This

is an unacceptable reality. We will

continue to focus on improving pro-

cess safety and risk management to

reach our goal of zero fatalities.

Our fuel oil consumption decreased

and as a consequence so did our

absolute and relative CO2 emissions.

Consequently, the Group has ad-

justed its CO2 reduction target.

We continue to make progress on

our Group programmes to imple-

ment our anti-corruption policy,

global labour principles and respon-

sible procurement practices. Train-

ing of employees and engagementwith suppliers are a key part of this.

We met our goal of being considered

a best in class company on employee

engagement which has never been

higher in the Group.

Our employee engagement survey

and gender diversity numbers show

that we need to take more meas-

ures to realise our aspirations for

diversity, most notably in terms of

increasing the number of women wehave in leadership positions.

Ttl (cuultive) uber ited leders

tried i the ur lbur riciles er t dte:

483

Ttl (cuultive) uber elees

tried i ti-crruti er t dte:

25,3561

overll eggeet scre:

76%

Decrese:

6%

Fele elees i ledersh

(Directr d Vice presidet lev

9%

nuber suliers registere

ressible rcureet rgr

1,431

nuber tl ccidets:

17

e scope o each o the perormance indicators, please reer to the respective pages in the report and our sustainability accounting principles on pages

,

,,

ersk Lie

ersk oil

mersk Tkers

others

Decrese illi tes:

2.3

impROvemeNt

tive Co reducti ( bselie):

%

%

%%

%

Shre

ttl Co eq.

eissis

1 Approximate total, since some training data is not available2 Programme was launched in 3 Since the programmes launch in



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outlook

Tds grwth rketsre recst t ccut r

34% the wrlds welth i ,

cred t % i . 1

30 40%icrese i the Grus

ivestets ver the ext

ve ers.

Growingour business

ays growth markets are orecast to account or

% o the worlds wealth by , compared to

% in 1 We ocus on advancing our core busi-

ses in these markets, where the needs o grow-

populations and rising aluence mean increased

mand or the goods transported by Maersk Line

the inrastructure provided by APM Terminals

he same time we are investing to grow our oil

duction and drilling services

nrbng o conoc grow

t-eicient transport, access to markets and en-

are all integral components o most economies

ay They can act as dynamic opportunity crea-

or local businesses and aect the economic

ormance o a region Positive impacts derive

m doing things saer, more eiciently and with a

-term perspective For example, adjusting ship

gns to local port conditions, and the other way

nd, can help increase container throughput De-

d cost eiciencies can help generate new trades between countries

hermore, we can accelerate our positive impacts

tructurally combating societal challenges such

orruption that negatively impact our employ-

the communities we operate in and the cost

oing business At the same time, by ensuring

sae and air working conditions, improving diversity

and developing our employees, we help support our

growing business and a more sustainable growth

trajectory or the countries we work in Growth, how-

ever, is not devoid o challenges

t wn callng:

conoc grow and cla cang

While economic growth undoubtedly brings beneits

in terms o increased incomes and quality o lie, there

is sound evidence associating it with negative impacts

on resource sustainability, the climate and environ-

ment We recognise that without documenting, meas-

uring, understanding and mitigating these negative

impacts, desired levels o economic growth may not be

sustainable and will incur increased costs to society

The global challenge is to increase economic well-

being or a growing population without incurring

corresponding increases in environmental pressure,

ie decoupling environmental degradation andeconomic growth The United Nations acknowledge

this as one o the biggest global challenges over the

coming decades 2

In the next pages, we describe the impacts o our

activities in transport, ports and energy, both good

and bad, and how we go about addressing them

Our ocus on economy o scale, uel eiciency and

smart ship designs helps ensure that global trade o

goods and energy can be conducted as eiciently as

possible

Trade is potentially a signiicant driver o economicgrowth, creating jobs, increasing consumer choice,

and helping countries acquire new technologies

There is a documented direct link between coun-

tries logistics perormance and income level 3 One

critical challenge or developing countries is how to

overcome inrastructure barriers to trade expansion

and how to reap the ull beneits o trade

talor-akng ransor

o orco rad barrrs

Some parts o the world do not yet have the port

capacity, drat or equipment to take advantage o

the eiciencies stemming rom the use o the largest

container ships Maersk Lines SAMMAX ships were

speciically designed to overcome these challenges in

Brazilian ports In Brazils busiest port in Santos, Sao

Paolo, the vessels are now loading and discharging

% more containers per call than the ports average

The SAMMAX vessels are helping the port reduce the

waiting time and paving the way or increased trade o

potentially , containers (TEU) annually in Santos

(see our Brazil impact study on pages )

K ssanabl callngs

Shippings signiicant contribution to the global

economy has a sizeable environmental impact The

ossil uel dependent industry accounts or % o

man-made CO emissions worldwide Maersk Line

alone accounts or approximately % o the worlds

CO emissions, emitting million tonnes o CO in

Sulphur emissions (SOx) are also a challenge in

shipping, impacting both air quality and health

We take this very seriously and work continuously to

improve the uel eiciency o our transport services

to reduce our impacts In , we reduced both the

absolute and relative CO emissions o our container

shipping services (see page )

We strongly support CO regulation o the shipping

sector to create a global level playing ield Reducing

the industrys dependence on ossil uels may be an

option in the uture, i innovation can overcome the

many current barriers to the wide-scale production

and uptake o alternative uels

Other key challenges in global containerised trans-

port are issues that add to the cost o trading, such

as corruption, illegal cargo and piracy We seek to

address these global challenges in our policy work,

training o sta and through industry collaborations

(see pages and )

acts

600ctier v

marsk Ln

8.5illi ct

trsrted

Liei

31.8illi t

eitted b

i .

* Drewr Ct

dFrecst

outloo

a sll recctier tr

is recst

4.9%cred t

grwth i

European Commission (): The World in Rising Asia and socio-ecological transition

ed Nations: Climate change and the development challenge, wwwunorg

3 The World Banks Logistics Perormance Index

he a.p. mller - mersk Grus busiess d lg-ter ls

urt ecic grwth d develet. our ctributi

sustible ecic grwth lies irst d rest i ur

ilit t dvce the beeits d ddress the chlleges

trisic t glbl trsrt, irstructure d eerg.

The level ccess t trde d eiciec trsrt re irttctrs r ec d ex rt biti. We hve rle t li helig rkets verce destic trde grwth brriers whilereducig the trit glbl ctierised trsrt.

Global transport and trade

acts

t Gros rndsrbon 0Reveue slit b regi

%aric

%Eure &Eursi%

middleEst

%aerics

%asi & pcic

Sustainability Report Sustainability RepoIntroduction Introduction


8/44

s, container terminals, roads, rail and depots rep-

nt some o the physical inrastructure needed or

continuing development o the global economy

ntries that invest in inrastructure are likely to

eit rom not only aster and saer transportationoods, but also increased business activities,

e eicient allocation o labour and overall im-

ved national competitiveness 4

r rodc as

dr conoc acs

perormance o ports is important or the overall

iency o trade lows Eiciency gains achieved at

can be nulliied i port and inland inrastructure

s not perorm eiciently Eicient port inra-

ctures have the knock on eect o decreasing

age and uel cost Lower transportation cost

mprove the competitiveness o the countrys

orts and decrease prices o imported goods 5

ough APM Terminals we actively pursue terminal

ects and partnerships in underserved high-

wth markets In , APM Terminals work to de-

p, modernise and optimise container terminals

ed increase its global average berth productivity

% compared to the previous year

zil is a prime example o a country that is invest-n port inrastructure to support increasing ex-

ports and underpin its growing economy Upgrades

to the Port o Santos are being made to alleviate

congestion and delays Here, APM Terminals is build-

ing a container terminal under a joint venture agree-

ment The USD billion investment will improve

Santos berth productivity by up to % We havecalculated the wider socio-economic impacts o this

investment (see our Brazil impact study on page )

K ssanabl callngs

The risks o accidents in port operations remain a

major challenge Severe accidents continue to hap-

pen and some have atal consequences or our em-

ployees and the people working on our premises This

is a challenge we do not take lightly (see page )

The same goes or corruption which continues to

hold back trade and economic growth in dierent

parts o the world (see page )

Running a terminal involves careully managing

stakeholder interests within the port community as

well as minimising any potential adverse impacts on

the local environment (see page )

outlook

6%glbl ctier rtded grwth recst

er er r t, but with sigictregil vritis.*

Reducig sul chibrriers t trde culdicrese GDp b erl

5%d trde b

15%**

Global energy demand is expected to increase

by % between and 6 Fossil energy

sources are currently making up more than % o

the worlds energy mix 7

Fllng conoc grow and radBesides supporting a growing population and

industrialisation with access to energy services, the

oil industry is currently key to keeping the global

economy mobile Today, more than % o the

global oil and gas production is being used to serve

transportation needs

We are investing to increase our oil production by

% by to , barrels per day

K ssanabl callngs

The pursuit o a proitable oil business and the act

that CO emissions induce climatic changes that

are potentially highly detrimental to society raise

a number o sustainability challenges and dilemmas

The AP Moller - Maersk Group supports the position

to reduce global warming whilst recognising the di-

rect and indirect impacts that oil production entails

Our view is that governments and companies must

each play their role to address the dilemma Govern-

ment policy action is needed to shape the uture o

energy and we support legislative rameworks thatcreate a level playing ield

We see our role in addressing climate change as

in optimising our production and consumption

o resources In our oil activities our ocus is thus

on increased operational eiciency to ensure that

resources can be produced in an eicient and eco-

nomically sound manner The pressure to maintain

such perormance will only intensiy as competition

or natural resources drives the industry to explore

and produce in increasingly harsher environments

K ssanabl oorns

For us, the most impactul way to address climate

change is through energy eiciency in shipping Our

shipping activities are responsible or % o the

Groups total CO emissions Here, s igniicant ad-

vancement in energy eiciency is helping us reduce

the impacts o uel price luctuations and bringing

about signiicant cost and CO reductions The

improvements made so ar in energy eiciency are

enabling us to push the bar or continuously more

eicient transport o ood and goods

The cost o consuming resources such as bunker

uel oil will continue to drive energy eiciency in our

company The shipping industry's dependence on

bunker uel oil is also helping to sow the early seeds

or potential uture energy diversiication Develop-

ing aordable alternatives to bunker uel in shipping

is still in the very early stages However, we support

the research and development eorts to overcome

the current barriers

6 http://wwwoecdorg/site/aricapartnershiporum/pd7 USEIA InternationalEnergy Statistics:http://tontoeiadoegov/capps/ipdbproject/IEDIndexcm

outloo

Glbl eerrecst t b

40%higher i

t . *

ld Economic Forum (): Positive inrastructure A ramework or revitalizing the global economy

Maersk Lines WAFMAX study on maersklineroutecom

acts

Apm trnals rtliicludes ertis i

63rts d terils

with ew terils i

develet d

ild services ertis.

9%apm Terils glbl

verge berth rductivit

icrese i .

* Drewr GlblCtier

oertrsaulRert .

** WEF:Eblig Trde:Vluig

Grwthortuities.

acts

Trsrtthe lrgest c eerg iccutig

50% liquid ue

marsk O

257,brrels

d (bed

rducti

marsk Ln

9.9illi t

uel il i

* oECD:www

** WWF:plugg

the ilge

The il idustr i s ke t surt the eerg eeds idustriesd cutries. I light cl ite chge ccers d resurcesustibilit, the ursuit ritble grwig il busiess

brigs rth sust ibi lit chl leges.

rstructures re t ed i theselves, rther the re esr esurig the sth ruig ecic sectrs. Thtkes the errce rts d ild trsrt irstructurertt ctrs r til cetitiveess.

EnergyPort inrastructure



9/44

, we set ut t deee ur uderstdig the Grus sci-ecic icts

hi trde, irstructure d eerg i Bril (see abut the stud ge ).

ril w ils grwig ec hs see GDp er cit

e th trilig ver the lst decde. millis

le hve bee lited ut vert it risig

dle clss. Itertil trde hs ctributed

rils ecic grwth : Exrts hve grw

% er er verge r t 1.

rts d irts ccuted r % d %

ectivel GDp i 2.

, Bril is the wrlds secd lrgest exrter

be, is ressible r % the wrlds

rge juice d ccuts r % glbl exrts

rw ce d reied sugr 3, t e just ew

jr cdities. Sice , Brils exrts

griculturl rducts hve grw b re th %4.

But Brili reight lgistics csts re high but

% GDp 5. Trsrt irstructure bttle-

ecks re ke rt the rble. The Brili

gveret recgises irstructure develet

s e the st irtt drivers t surt

ecic grwth d ctiued scil rgress 6.

Buildig- We hve bee buildig u resece i Bril sice

our busiesses i Bril hve ivested ttl U

billi i shi ig, rt ertis d shre

i the cutr.

Our impacts bz

ci-ecic stud uts ubers ur icts i Bril.

O Database See: http://statwtoorg

ld Bank indicators See: http://dataworldbankorg/indicator

ing Economics See: http://wwwtradingeconomicscom/brazil/exports

O database See http://statwtoorg

5 World Bank, How to decrease reight logistics costs in Brazil, Transport Papers, TP-, April 6 OECD Economic Surveys Brazil, October 7 Theimpactstudy estimatesthecontribution toGDP asthe totalvalue-addedothe Groupsdirect,indirectand inducedimpacts:Indirectimpactsare theturnover andvalueadded create

providegoodsandservicestoourcompaniesactivitiesInducedimpactsarethe resultospendingothe wagesandsalariesoourandthe suppliersemployeesonood,housing,transportatio

* OperatedtheMaersk Peregrinoa oatingproductionstorageandooadingvessel inthe Peregrinooileld Thevesselwas soldto Statoilin

USD 256bnBrili exrts i

Brili reight lgisticscsts i :

1518% GDp

Exrtsccuted r:

12% GDp i

sugar

key igur

2,169Elees (FT

USD 1Exterl reve

USD 3prcureet s

USD 1Direct d idire

icl. illi

our comp

and bran

In BRazIL

apm TerilsDc

Dbr

mersk FpSos*

mersk Lie

mersk oil

mersk Sul

mersk Trii

mercsul Lie

Srie

Sviter

The Grusctributis

t the Briliec 7

USD1.7bn

~ .% Brili

GDp i

48,000jbs creted i

the wider ec

rtuities rt exsi dic develet

llegesde bttleecks

d lgistics csts



10/44

prt rductivit The SammaXs icts rt rductivit c

be illustrted b lkig t the prt Sts, the

biggest rt i B ril. I this rt the SammaX ld

d dischrge , ctiers er vessel cll %

re th Sts prts verge i , d

% re th the revius mersk Lie vessels.

Fr the se ut ctiers this es tht

mersk Lie c reduce its ul clls b clls

d the verll witig tie i Sts b %.

The SammaX vessels ls hel reduce berthig

tie thrugh ster ld d dischrge cti-

ers. This is due t the vessels legth d irved

stbilit eblig re cres t erte t the

se tie. I Sts, the SammaX hve berth

rductivit berth ves er hur %

higher th the revius mersk Lie vessels d

% higher th the verge i Sts. This de-

creses ur berthig tie r , t , hurs

d verll berthig tie i Sts b %.

The % witig tie reducti d the % berthig

tie reducti will decrese Sts verll rt

turrud tie b %. o this bsis we estite

tht the SammaX vessels hve the tetil t

icrese ul trde b u t , ctiers

(TEU) i Sts. Whilst trde grwth icreses Co

eissis i bslute ters, the SammaX vessels

Co trit is sller er ctier. With the

itrducti SammaX, the reltive Co eis-

sis mersk Lies asi-Bril trde le were

reduced b % i .

Siilr beeits d trde grwth tetil c

be exected i ther rts clled b the S ammaX

vessels.

ata calculations, methods, models and scope used in this case study can be ound in our Brazil impact study

pared to the previous , TEU Maersk Line vessels deployed on the same trade lane

maXim

FUEL EF

The Samma

uel ecie

10%higher c

ew vessels

sie. Its ws

sste use

i the ht ex

rduce ext

rulsi.

maX imising trade in Brazil

ersk Lies SAmmAX vessels re tur ig u the seed ili rts. Bstig rt rductivit d reducig witig

e d Co give rise t re sustible trde grwth i Bril8.

SammaX vessels were itrduced i t

dte the lrge ded r rerigerted

betwee Suth aeric d Eure. The

desiged t verce the liittis shllw

ers d lw rt ccit i Bril.

mor conanrs rog sallow wars

With , reeer lugs, the SammaX re g

the lrgest reeer shis lt. The hve drt

etres d ccit u t , ctiers

(TEU). The drt-ctier rti llws the SammaX

t cll Suth aeric rts with re ctiers

cred t the verge vessel there.

, the SammaX vessels lded d dis-

rged ctiers er vessel cll verge,

red t the revius mersk Lie vessels

ves er cll % irveet. als, the

mmaX berth rductivit ws verge

h ves er cll, c red t r the revi-

mersk Lie vessels % irveet. The

rveets hve wider sci-ecic icts.

Icresig the eiciec trsrtti lwers

the cst trde r busiesses d csuers, d

trsltes it tetil r icresed trde, jb

creti d ecic grwth. Trde is hwever

gurtee r scill iclusive grwth which

deeds rge ctrs icludig gveret

licies.

SammaX vessels c crr u t

8,600ctiers (TEU) d c ss shllwwters due t the drt-ctier rti

37%irveet i verge

berth rductivit i *+72%ctiers er vessel cll *

5%overll witig tiereducti i prt Sts

2%overll berthig tiereducti i prt Sts

7%overll rt turrudtie reducti iprt Sts

u t

39,000ctiers (TEU) ictrde tetil (TEU

SammaX eects por of Sanos*



11/44

Desite lg cstlie but , k (,

iles) studded with rud jr rts 10, the

tetil cstl shiig hs t et bee ull

relised i Bril.

ol rcti the ttl destic ctier trs-

rt is crried ut b cstl shiig. The extesive

use trucks icreses trsrt csts thrugh ties higher reight rtes, cgesti d urelible

trsrt ties. This i tur reduces Brils trde

d wekes its til cetitiveess.

als, trucks hve high sci-ecic csts. Cstl

shiig l trsrts crg vlues crresd-

ig t % ttl truck trsrt, but cred t

trucks, cstl shiig ech er sves the Brili

sciet , rd ccidets d USD illi

i rd itece, edicl d teril csts s

well s . illi tes ir eissis.

makng o

I the Bril ict stud, we estite tht .

illi ctiers (TEU) c be ved r trucks

t cstl shis. This is reltivel sll shre

the ttl vlues trsrted b truck but wuld

crresd t % icrese i Brils cstl

shiig trsrt vlues.

I ubers, gig cstl with . illi ctiers

wuld reduce ul rd ccidets b rx. ,;

rd ccidet csts b USD , , illi; rd

itece b USD illi; d eissis b .

illi tes Co. Tht es verll lwer reight

csts scill, eviretll d ecicll.

Thus, cstl shiig culd hve uch re

riet rle t l i surtig the sustible

develet the Brili ec d its bi-

tius exrt trgets.

data calculations, methods, models and scope used in this case study can be ound in our Brazil impact study

rld Bank (), How to decrease reight logistics costs in Brazil, Transport Papers, TP-, April

grwth i Brili exrt d irt is uttig

ccit d rductivit uder ressure. With

% rket shre, the prt Sts is Brils

t irtt rt.

e , the witig tie r vessels t the rt

stedil icresed. Durig the irst hl ,

s hve hd t wit but hurs verge

re berthig. The Wrld Bk estites tht ex-

hrges r deled crg cstitute rud USD

illi er er i Sts10.

sng n Bralan rad grow

tier tric i the prt Sts is exected t

w b % er er i the erid .

tiig the sttus qu the curret ctier

il ccit i Sts wuld led t excess

d r ctier trsrt rud . illi

iers (TEU) b , crresdig t %

s ttl ded.

ether with Teril Ivestet Liited, APM

minals is ivestig USD billi i the cstruc-

ew wrld-clss ctier teril, Brsil

il prturi (BTp). Whe ull ertil i

, BTp is exected t deliver berth rductivit

u t ctiers er hur % irveet

cred t the curret verge berth rductivit

Sts three ertig terils.

mor conanrs a lowr cos

The develet BTp will icrese ccit i the

prt Sts b u t %. This will revet urther

deterirti i witig d berth ties, icreses i l-

red high trsrt csts, d lss trde d diver-

si t ther rts. mrever, BTp will irve Sts

verll berth rductivit b u t %. Cbied, the

icresed ccit d irved rductivit hve the

tetil t icrese the ul ctier thrughut

b u t % crresdig t icresed trde

tetil wrth u t USD . billi er er.

B rqrs br accss roads

I Bril, st ctiers re trsrted b trucks

t d r the prt Sts but the curret ccess

rds re t dequte t ccdte this tric

withut dels. Td, the ild trsrt bttleecks

dd t the csts usig the rt. T ull re the

beeits the BTp teril rject, Bril wuld eed

t irve the rd irstructure rud the rt.

The case or going coastalBuilding tomorrowserminal today

grdes t Brils busiest rt i Sts, S pl re beig de t llevitegesti d dels. We hve clculted the sci-ecic icts tht crelised r USD billi jit veture ctier teril rject9.

Brils cstl shiig idustr hs % grwth tetil. Therere scil, eviretl d ecic rguets r relisig it 9.

BRazILmodal

Coasal s

esible l

trucks wheceeds ,rigi d dlcted witdius rtll ther thi

Tp will irve theerth rductivit ts prt b u t

10%

Cbied with icresed ccitthis hs the tetil t icresethe ul ctier thrughut

i Sts b u t

12%

Reduce ul rdccidets b rx.

36,000d rd itece csts bUSD 125m

Reduce eissis b

4.4mtes Co

2.7mctiers (TEU) c be vedr trucks t cstl shis which wuld:

The icresed trdetetil is wrth u t

USD 15.3bner er

taXes and jobsIn nUmBERS

Thrugh the develet BTp, the prt Stswill beet ullr ver:

USD 100mtx ice (ederl, stte

d uicilit).

BTp is exected t crete:

3,000jbs durig the

cstructi hse.

1,500jbs durig the

ertil hse.

9,000idirect jbs ce

ertil. abut the studour Bril ict stud icludes

lsis the icts the Grus ctivicvers te diferet busiesses d six i-dies. as the vilbilit dverse sustibi(e.g. eissis, scil icts d wrk-relt cutr level is ver liited, the cse stuclude detiled ssesset ll the scietl icts ur ertis d slutiil the curret d estited utureicts ur ivestets, icludig ecd eviretl ersectives. Iheretlcrised estitis d cti sigi

tis. Fr clete exlti the surces used, the stud c be btied u

Brsil Teril prturi(BTp) i prt Sts

p

%Shi

%Tri



12/44

Materiality

mang aral sss

In , we worked systematically to gain an en-

hanced understanding o our material sustainability

issues and their potential impact on our business Adedicated tool was developed to support the mate-

riality analysis and process

Bg ck s

The issues that are o highest importance to both

our business and stakeholders are major oil spills,

atalities, arctic operations and anti-corruptionMajor oil spills and atalities represent some o our

most signiicant risks and stress the importance o

Deiig d cuictig terilit hels us cus

ur erts res tht deliver the gretest vlue t

ur busiess d st irtt stkehlders.

The shws which issues re st teril t

ur busiess bsed the ctrs ict cst,

reveue, clice d reutti, crreltig

m trix

this with the deeed level irtce t e-

lees, custers, regultrs, edi, ivestrs,

lcl cuities d nGos.

Ecosystems&biodiversity

Localcontent

Fatalities

Anti-corruption

Arcticactivities

Majoroil spills

Transparency/reporting

SOxNOx

TaxLobbying

Oceansustainability

Piracy

RecyclingNaturalresourcesscarcity

Wastemanagement

Accidents/LTIsHumanrights

Carbonmarkets

Wateruse/management

Stakeholderengagement

Ballastwater

Conictzones/highriskcountries

Governance

Diversity&inclusion

SupplychainmanagementProcesssafety

COemissions

EnergyconsumptionChemicalsLabourstandards

Whistleblowing

Importance to business

Importancetostakeholders

Communityengagement

read m

ati-crruwhistleblw

arctic: ge

Bllst wt

Bidiversit

Co eissi

Diversit & ges

Ftlities, crcess s

Gverce

Hu righ

Lbur st

Lbbig:

oil sills:

pirc: ge

Sox d no

Stkehldeges

Sul chgee

Tx: ge

Wste

Gru errce

Group perormance Sustainability Repo


13/44

Describig theissues i detil

Deig the risks d

rtuities ssci-

ted with the issues.

Describig the stke-

hlders relevt t r

ccered with the

issues.

migthe issues

The results the l-

sis re ltted b the

tl i trix with the

-xis reresetig the

irtce t stke-

hlders d the x-xis

reresetig the i-

rtce t busiess.

alsig

Deteriig the sttus,

irtce d tu-

rit the issues usig

the tls redeed

rtig schee.

eige criteri

tig sigict

siess sects d

tig their reltive

rtce.

tig sigict

kehlders d

tig their reltive

rtce.

Selectigthe issues

Idetiig evir-

etl, scil d

ecic issues tht

re, r ight tur ut t

be, relevt t the a.p.

mller - mersk Gru

d its stkehlders,d cllectig the i-

rti eeded t

ssessig their ict.

tinuously strengthening process saety and risk

nagement Whilst our activities in the Arctic at the

ment are still in the very early stages predomi-

tly concerned with exploring any uture potential

e overall growing corporate interests in the Artic

a subject o great importance and concern to

e o our stakeholders We ully recognise the

sitivity and uniqueness o the Arctic environment

describe our interests and preparation activities

is report

larly, issues such as process saety, energy

sumption and CO emissions represent critical

erial issues in the Group For example, our

emissions in shipping are signiicant in

olute terms but also represent a major driverenergy eiciency improvements and cost

ctions

Our anti-corruption eorts rank high on the list as

well Corruption negatively impacts our business,

the communities where we do business and overall

global economic development Furthermore, supply

chain management is critical to minimise risks in

our supply chain, supporting responsible business

conduct and the respect o human rights Finally,

diversity and inclusion are essential to reach our

growth and perormance aspirations

Gong forward

The matrix and tool will serve as valuable input or

the process o preparing a new Group sustainability

strategy during We will be validating our as-

sessments through consultations with our internal

and external stakeholders in the strategy process,and promote a uniied approach to materiality as-

sessments going orward

Our ambition is to have a more structured and con-

sistent approach to stakeholder engagement We

are not there yet and this will be an important part o

our approach and governance going orward

Key stakeholder engagement activities in

include:

Shareholder and investor engagement

The AP Moller - Maersk Group held its irst Capital

Markets Day to increase transparency on strategy

and inancial perormance The companys peror-

mance, growth strategy and planned investments

were presented with a ocus on the plans or Maersk

Oil and APM Terminals More than analysts and

investors participated

Engaging external stakeholders

on sustainability

The UN Summit on Sustainable Development in Rio

de Janeiro, Brazil (Rio+) was an important event

or us to engage with a wide group o stakeholders

on our role in contributing to a more sustainabledevelopment We engaged in panel discussions,

co-chaired a session on anti-corruption and spoke

on responsible procurement

Engaging employees on sustainability

Our work with sustainability can be an engaging

actor in itsel and potentially help increase the

companys attractiveness as an employer In ,

% o employees viewed the surveys sustainability

dimension1 avourably The dimension is used as

an indicator o how a given team is incorporating a

sustainability mindset (social, economic and envi-

ronment) into daily business decisions It is the irst

time that we have this dimension

On pages we elaborate on our employees

general attitudes and perspectives towards the com-

pany and sustainability

During , we will be engaging with stakeholders

in a systematic and structured manner to obtain

input in connection with the development o a new

sustainability strategy

Rsonsbl lobbng

The Group engages in dialogue and lobbying on

issues that are relevant to our businesses We

believe that rendering our experience and opinion

available to policy makers and other key opinionleaders provides beneits or both our business

and society

A large degree o our engagement at Group level

takes place through our membership and participa-

tion in industry organisations, primarily the Danish

Stakeholderengagement

top 3 maTERIaLISSUES In THEBUSInESSES

I , wrksh r urbusiesses ws cductedrvidig guidce hwt rere terilit d

stkehlder ssessets.The terilit ssess-ets b the busiessesheled rvide ud-ti r their rertig thiser b idetiig theirt three teril issues(see ges ).

1 Thesustainabilitydimensionconsistsotwo questions:Mycompanyis makingagenuine eortto besociallyandenvironmentallyresponsibleandMymanagerencouragesme toconsidersocialand environmentalimpactsomydecisions

We wt t build trust i ur c b eggig

i trsret rctices d e dilgue with

stkehlders.

terilit

Sustainability Report Group perormance Group perormance Sustainability Repo


14/44

our

2008Eviretl

strteg

First Gru

HSE Rert

2007HSSE mul

2009meber UnGlbl Cct

ati-crruti

rgre

Diversit

prgre

2010First Gru

Sustibilit RertFirst Gru

Sustibilit

Strteg ( )

Glbl Lbur

priciles

Whistleblwer

prgre

Gru Sustibilit

Cucil

2011meber Un Glbl

Cct LEaD

meber the

Lgistics EergecTes (LET)

Ressible

prcureet

prgre

Clite Chge

Strteg

Gru Helth &

Set Strteg

First aul

Executive

Sustibilit D

20Iteg

sust

iter

rgr

Hu

Fr

Sust

idex

Eg

Sust

iteg

eter

Strategy& governanceWe i t be ressible d ritble eterrise

blcig ecic, sc il d evir etl cc ers r

the beeit a.p. mller - mersk d the glbl cuit.

Our strategy is to integrate sustainability sys-

tematically into all our business processes and

make sustainability a competitive advantage Top

management at Group and business level are held

accountable or progress The ull governance rame-

work can be seen on page

Dasboard cras orw

An integration progress dashboard is compiled

twice a year on the basis o sel-assessments com-

pleted by all our businesses1 The sel-assessment

measures progress o integration and not actual

perormance Its purpose is to provide an overview

o how ar integration o sustainability has advanced

according to our current strategy

At the end o , the dashboard showed that

most business units are making good progress on

integration into strategies, management systems

and stakeholder engagement Two speciic areas

stand out as lagging, and we will review these gaps

in :

) Sustainability as an opportunity-creating driver o

innovation and business development

) Integration into employee KPIs

1 MaerskDrilling,DanskSupermarkedGroup,Maersk FPSOs,DanborService,Maersk ContainerIndustry,MaerskSupplyService,APM Terminals,MaerskTankers,Svitzer,MaerskOil,Damcoand MaerskLinerBusiness (thelatter includingMaerskLine,Samarineand otherregionalbrands)

mmer,C()Corporatesocialresponsibilityandshareholderreaction: Theenvironmentalawarenesso investors,AcademyoManagementJournal

iis re divided but reserch idictes tht

stibilit rertig c esure re stble

ck rices, rbbl becuse the rvide

re trsret risk rile which cts s r

isurce gist ict stck rices r

gtive evets2.

ther beeit is thught t be lwer cst

itl r the sustibilit-rertig c.

prticulrl istitutil ivestrs re exected t

be best ble t use the rerts .

We sked tw ur ivestrs wht the thik:

Dish aTp, e the lrgest esi ivestrs

i Eure, d UK Heres Equit owershi Ser-

vices, rvider dvisr services, rewed

r its citet t ressible ivestets

d wershi.

As investors we find that our capital is best protected by companieswho are in dialogue with their surroundings, as we think they arebetter armed for success in a changing world. We do not focus on

any particular issues but rather look for sustainability and corporate

responsibility as integrated parts of the company and its business

model. We are pleased that A.P. Moller - Maersk deals with the risks

inherent to the industries in which they operate. Ole Buhl, Head o Environmental, Social and Governance (ESG), ATP

We consider the management of sustainability issues to be indicativeof the overall quality of management and the ability of a company tomanage risk. This is particularly the case in the industries in whichA.P. Moller - Maersk operates. We are long-term investors who have

an interest in long-term value-creation in A.P. Moller - Maersk, so the

management of health and safety (both process and occupational),

energy and operational efficiency, as well as employee relations is

very important to us. Paul Lee, Director, Hermes Equity Ownership Services

W v

ur sustibilit erts

powners Association and Oil Gas Denmark, in

tion to ongoing business speciic contacts with

ernment and public authorities

The majority o our dialogue and lobbying activities

are conducted by our businesses eg through inter-

national industry organisations



15/44

Adancn ools

We provide management and employees with tools

to enhance their knowledge o sustainability We have

integrated sustainability modules into our leadership

training in By the end o the year, , persons

had participated in these training programmes

We also developed and rolled out an e-learning

based introduction course on sustainability in

It is designed to serve as a pre-work to the leader-

ship courses, but the course is available to all em-

ployees through our Learning Management System

Since the launch in September , people

have completed this training

An annual sustainability day is organised or all

the Groups CEOs In , the ocus was on the

business value o sustainability The day marked

a starting point or the next phase in our approach

to sustainability, where maximising synergies and

generating income will be in ocus Erika Karp, Man-

aging Director and Head o Global Sector Research

or UBS Investment Bank, had been invited to give

an investors perspective and to participate in a

panel debate with Maersk Line, Maersk Drilling and

APM Terminals The debate showed that while not

all sustainability-related values are easily quantiied,

there is potential or linking sustainability closer to

the core process o shareholder value creation

mgeet busiess reviews Sustibilit issues re icluded i the ul busi-

ess reviews cducted b the Gru Strteg ucti.

Executive Brd is ressible verll.Sustibilit

Cucil versees strteg

d crditi.

CEo d eer reviews Ech er, busiess uits rticite i either

CEo review r eer review with the Gru Susti-

bilit ucti.

I , ive CEo reviews were held, d ive busi-

esses rticited i tw eer review wrkshs.

Eterrise risk geet a ew eterrise risk geet rewrk ite-

grtig sustibilit ws ileeted i .

Iut r busiesses d Gru uctis ke

risks is ggregted it Gru ke risk register.

ustibilit

he busiesses re sked t scre their rgress

scle crss ke esures ite-

ti, csiderig ech the ur cus res

the Grus sustibilit strteg: helth d

et, scil ressibilit, eviret d

ssible busiess rctices.

With busiess itegrti s the i cus the

Grus sustibilit strteg, ech

the busiesses will idell be ble t ssig the-

selves scre ll questis b the ed .

The dshbrd belw shws the sttus s Q i

(esured i %).

Cleted (scre )

Uder ileetti (scre )

pled (scre )

nt strted et (scre )

D u esure errce -gig bsis?

Hve u deed ecessr stdrds, tls d

cetecies t erte rcesses efectivel?

Hve u ileeted the required structures?

D u ssteticll ssess ke sustibilit risks?

are u curretl trck t relise ur trgets?

managn

Hve u idetied ur ke stkehlders?

Hve u deed wh is ressible r eggig with ke

stkehlders?

D u egge with ke stkehlders -gig bsis?

D u get eedbck ur eggeet?

D u shre the eedbck ssteticll with the rgisti?

Sakoldr ngagn

. Is sustibilit icluded s risk-itigtig driver i the

busiess strteg?

. Is sustibilit icluded s rtuit-cretig driver

i the busiess strteg?

. D u hve sstetic rch r sttig treds

d ticitig chge?

. D u itegrte sustibilit it ivti d busiess

develet rcesses?

. D u llcte resurces t test ilts r t ivte

busiess dels?

4. Ancang cang

4.1

4.2

4.3

4.4

4.5

. Des t geet cuicte t elees but

sustibilit?

. Is sustibilit icluded i geet triig rgres?

. Is sustibilit icluded i elee triig rgres?

. Hve the triig rgres bee rlled ut t ll relevt

elees?

. Is sustibilit icluded i elee KpIs d icetive

rgres?

5. Clr

5.1

5.2

5.3

5.4

5.5

highli

1,144leders c

sustibil

s rt th

triig i

Is there sustibilit strteg i lce?

Des the strteg iclude SmaRT bjectives/trgets, ctivities,

tielie, resurce llcti d gverce setu?

Hve u cducted rbust terilit lses?

Is the strteg liged with the verll busiess strteg?

are ressibilities d ccutbilities clerl deed?

Ssanabl srag & con

our sustibilit v w

Citets

Our values

Cstt cre, hubleess,

urightess, ur elees

d ur e.

Our Principles o Conduct,

policies and guidelinesour estblished

citets.

UN Global Compact

We re rt the LEaD

gru cies,

citted t shwig

ledershi i crrte

sustibilit.

perrce

Sustainability

integration dashboard

Bi-ul sel-ssess

busiesses tht eed i

rerts r the Susti

Employee engagemen

Where ew questi

bilit ledershi ws

Red re ge .

Leadership training

mdules sustib

Grus dtr le

triig rgres

E-lerig rgr

sustibilit.

aul Executive Br

bilit d.



16/44

Saetyet is t the cre the a.p. mller - me rsk Grus

usies s. We believe tht ech d ever ccidet c d

huld be vided. We ust esure tht ur elees

retur he uhred t the ed ever wrk d.

ping our employees sae and secure while they

heir job is o primary importance to us Providingemployees with a sae working environment

so our licence to operate But despite saety

ership positions in a number o our industries

well as continuous improvements in most saety

ormance areas, severe accidents continue to

pen in some o our operations

r srag and gornanc

Groups Health & Saety Strategy, which we

an implementing in , acilitates systematic

ing o insights and better practices between

nesses and thus helps improve existing stand-

and procedures

Health and Saety Committee oversees the

th & Saety strategy at Group level, whereas oper-

nal responsibility or health and saety lies with the

vidual businesses In , our Board o Directors

an to receive more detailed quarterly reports on

ty, with the same inormation being shared with

Executive Board and the Sustainability Council

als a ajor callnggoal is zero atalities In , we had atali-

compared to in , continuing the trend

the last couple o years contrary to our stated

and intent That is unacceptable to us

story has more aspects than the bare numbers

al In , Svitzer experienced their worst ever

accident with a loss o seven people (read more on

page ) This was an extraordinary event At thesame time, APM Terminals, where historically most

o the Groups atalities are ound, had ive atalities

in , compared to in This coincided

with a new approach to saety which seeks to mobi-

lise the entire organisation in the battle or a atality-

ree working environment (read more on page )

Our analyses show that atal accidents can be divided

into two groups, based on their root causes One group

involves traic and container movements and the ac-

cidents are caused by traditional ocus areas in saety

work: mechanics, behaviour and saety culture The

second group o accidents have more complex causes

and typically involve the ailure o several processes

This is in line with the conclusion made by an external

working group on atalities, in which we were active

participants in This group ound that

there was no conclusive evidence pointing towards one

set o common precursors leading to atal accidents

There are clear indications that we need to increase

our ocus on process saety The Svitzer acci-dent grew to its signiicant size because o process

saety issues, and had no direct links to the compa-

nys lost time injury requency (LTIF) perormance

Maersk Line began testing o rerigerated con-

tainers at risk o having countereit contaminated

gas inserted into their rerigeration equipment

during maintenance These containers had been

grounded since when three such containers

exploded The testing is expected to be completed

in As urther insurance, Maersk Line has com-

missioned the development o a scalable method

or testing or contaminated gas in existing contain-

ers which can be implemented globally, and has

rolled out a test procedure or all new rerigerant gas

two knds of saf

Many industries ocus their saety eorts almost

exclusively on occupational saety measures In

the oil industry, however, the inclusion o process

saety measures has been a core practice or many

years The current trend is that still more industries

are embracing process saety thinking, to make the

inal leap to incident-ree environments Below are

explanations o both types

Process safety ocuses on preventing ires,

explosions and accidental releases o hazardous

materials The impact o a process saety incident

can be personal injuries, asset damage or damage

to the surrounding environment (or a combination)

highlights

17tlities i .

50%reducti i tlities

i apm Terils.

7busiesses with

LTIF belw .

>80% ll ur ccidets ccur i

Dsk Suerrked Gru

d apm Terils.

Business unit Location Desciption Employed by

Apm trnals Cll, peru Ctrctr hit b ld durig litig ertis ivlvig

rech stckers.

Ctrctr

pivv, Idi Tll clerk crushed b lrr durig the ctier ldig

rcess.

Ctrctr

Cll, peru Stevedre ell iside the crg hld durig ctier

erti.

Ctrctr

Bie H,

Viet

Ctrctr died r ijuries icurred whe tre

exlded durig re-ttig wheel sidelder.

Ctrctr

mbile, USa Geset lded echic s it ell, struck the grud

d ivted durig its disutig r reeer.

ow

marsk Ln Itertil

wters est

Suth aeric

Tw serers died s result vilet cict

brd e ur shis (ctegrised s criil ct).

ow

Kbe, J Rescue bt hk ilure durig drill cused the bt t

dr resultig i the deth e ur serers.

ow

Jebel ali, Dubi Serer hit b vessels stres cre histig hdle. ow

marsk Conanr

indsr

Qigd, Chi Elee died r ijuries sustied i exlsi

i etlliig bth.

ow

Sr Q t r S ev e e le di ed i e x l si d re b r d tu gbt durig its rticiti i hse itece.

ow (six), thirdrt (e)

2012

Whe we rert ccidets ledig t tlities we iclude ur w elees, thse ur ctrctrs d third

rties. The ivtl it i this is whether the ele ivlved were wrkig uder the a.p. mller - mersk Grus

ertil ctrl. I s, the re icluded i this tble. o the ther hd, the level iuece we hve eles

triig difers deedig their elet sttus. Fr ur w elees we c crete culsr triig

rgres, d t lrge extet this is true r recurrig ctrctrs. We hve liited ctrl, hwever, ver third

rt elees, excet tht we c ded certi levels triig r the sulig c.



17/44

I , apm Terils tk the extrrdir

ste itig iterl set ctivist i

bid t ke chge i set its qus d

i its rds the wrld ver. The cs rer

Eure CEo apm Terils veter ws

chrged with edig tl ccidets i ve

thught t be irst r the rts idustr.

actis icluded:

New safety principles that empower all work-

ers, regrdless rk, t st use er-

tis. The ls reid elees their w

bligti i ters apm Terils rise

t ever lwer its stdrds.

Regional safety managers established global

iiu requireets t be erced t ll ter-

ils, while lie cllbrti ltr

brught teril g eet tgether.

Four training sessions for around 50 employees

with itertil ledig ccidet ivestig-

ti c. Fitee thse hd dditil

triig, which kes it ssible t deliver tri-

ig t the reiig cilities. Thse ele

ls cstitute glbl resse te which

will be distched i cse ther tlit c-

curs. The wuld use udted ivestigti

rcedure d rert thrugh ew icidet

rertig sste, which is due i erl .

The safety activist travelled to problematic

sites d de weekl he clls t rts d

ild ertis r udtes set d t

er high-level surt set tters.

Use of social media was increased as a means to

cuicte with evere i d utside the

rgisti. phts threts t set big

d sll ud t apm Terils lcti

were sted Fcebk, with ele skig

questis d thers swerig the.

Sites crss the wrld hve lred ebrced

the esclti s et b itig their w

ctivists i mrcc, peru, Cst Ric, argeti

d Jrd.

s v i ight r lives

aging process saety is generally a matter o

ting barriers to prevent multiple breaches and,

uch to avoid the chain reaction that potentially

lead to a major accident happening

upational health and safety is concerned with

ecting the saety, health and welare o people at

k Examples o typical areas o occupational saety

personal protection equipment, dropped objects,

king alone and slips, trips and alls LTIF is a com-

n way o measuring your o ccupational health

saety perormance A key element in managing

upational health and saety is risk assessment,

ch is also closely related to process saety

grss on gro acslth and saety targets are set and the work is

ed out in the individual businesses Group level

sponsible or strategy, governance and high-level

elopment activities Our new strategy or

mitted us to the ollowing:

stablish fatality review group

epresentatives rom the major businesses have

viewed the investigations o the atalities incurred

uring the year The group ound that oten a atal ac-

dent could have been avoided i established proce-

ures had been ollowed The businesses concerned

ave taken action to encourage stricter adherence

Developing new performance parameters

While not pointing to speciic precursors, we

learned rom the external atalities group that

we need a greater ocus on process saety

parameters Working with process saety implies

looking at risks inherent in the production pro-

cesses and creating barriers to ensure that it is

not possible to cause a large-scale accident as a

result o a single or ew actions Process saety is

widely practised in the oshore industry, and we

will learn rom the example o Maersk Oil

Knowledge-sharing framework

The atality review group is instrumental in shar-

ing good practice or accident investigations Fur-

thermore, an online portal was launched in with the goal o creating an internal platorm or

discussion o our approach to saety Finally, to

gain insights and inspiration or use in our devel-

opment o health and saety initiative

Set errce

Overall, our LTIF data rom show a declining

or lattening trend over the last our years Hidden

in this data is the act that seven out o eleven

businesses have an LTIF below one This equals one

accident per employees during a year

APM Terminals and Dansk Supermarked Group ac-

count or the majority o all our LTIs in Dansk

Supermarked Group reported LTIs and APM

Terminals Comparatively, Maersk Oil had

and Maersk Drilling LTIs

The incident severity ranges rom minor injuries result-

ing in a ew sick days to permanent disability eg lost

limbs In Dansk Supermarked Group, injuries cover em-

ployees in stores, warehouses and oices The main

part o the injuries is o a psychological nature ollowing

robberies in the stores In addition, the severity o the

injuries are generally low (strains, cuts and bruises), and

injuries with permanent disabilities are extremely rare

At Group level, we do not have systems to capture the

severity o the LTIs, but the Health and Saety Com-

mittee is working to set up a severity index, as a way

o tracking the causes o the most serious accidents

The business with the most novel approach to man-

aging saety is APM Terminals (see the box below)

q er busiess

pm Terils d Dsk Suerrked Gru ccut

r the jrit ll LTIs i the Gru i .

MaerskLine

MaerskOil

APMTerminals

MaerskDrilling

MaerskSupplyService

MaerskTankers

D am co Svitze r D an skSuper-

marked

MaerskContainerIndustry

MaerskFPSOs

50

people tained inaccident investigation

50%dop in atal accidents



18/44

Piracy

nuber -

I lie with the ttl recrded uber

tteted hi-jckigs i the re the Sli

cst, we exerieced sigiict dr i irtescirclig i ur shis.

This sitive tred is result the re eiciet

vl trllig the re d ehced rtec-

ti the shis.

The cost o piracy is high Lives are altered or lost due

to piracy, trade needs to re-route and shipping com-

panies invest large sums to avoid attacks In ,

the AP Moller - Maersk Group continued to invest in

securing our close to , transits through the Gul

o Aden and past the Somali coast the main arena

or maritime piracy

Fortunately, global societys investments began

to show a dividend From a total o in ,

there were incidents in We experienced

two attempted hi-jackings, which were unsuccess-ul as our ships increased speed and let the area

The main drivers behind this positive trend are

compliance with best management practices or

anti-piracy, including the use o armed guards in

selected cases, and still more eicient patrolling by

naval orces Extensive risk assessments, training

and experience in sailing in these waters meant that

we could begin slow steaming o the coast o So-

malia As yet, no cases o accomplished attacks on

a ship compliant with best management practices

have been registered

When employing armed guards, we carry out training

in the roles and relationships between our crew and

the guards We hire guards only through providers

that have been vetted and screened by external

providers and audited by the Group

A long-r solon

Our position remains that only a concerted eort

rom the global community can alleviate this threat

to global trade In the meantime, we have joined

orces with Shell, BP, Stena Line and Japanese ship-

ping companies (NYK, MOL and K Line) to supportcommunity and job creation projects in the coastal

regions o Somalia The companies will contribute

between them around USD million over two

years ( ) The basic premise o the initia-

tive is that piracy may be a problem at sea but it

requires a long-term sustainable solution on land

A ong arg

Unortunately, the more stable conditions in the

Gul o Aden do not imply less risk o piracy or the

shipping industry in total We are seeing a growing

number o attacks o the coast o West Arica So

ar, none o our ships have been attacked in this area

highli

USD500errked

mller - m

ivestig i

t cbt r

irc i S

2010 2011 2012

r LTIF has dropped rom to over the

our years A lack o valid benchmarks or saety

e port industry makes it diicult to know the

ormance level compared to competitors

e set-rductivituti

work on saety is not driven by business case

siderations Nevertheless, we are seeing still

e cases o a link between improved saety and

er productivity

rsk Oil has compared the last ten years reduc-

s in LTIF with production eiciency and while itely that other actors contribute to the rise in

ductivity, the comparison does give an indication

improved saety is good or business

e ports industry, there are examples such as

port in Tema, Ghana, o which APM Terminals

s % Ater two atalities within a span o ive

months between March and July , APM Termi-

nals invested USD , to limit man-machine

interace

The port lost % o its berth productivity in the

irst month o enacting the new policy Workers

were conused, truck drivers were losing their way in

between stacks, cranes, stations, etc But gradually

operations began to get back into rhythm and the

port ended September setting new records in terms

o container handling combined with a strong saety

perormance

The APM Terminals Port o Itajai in Brazil registered

days without lost time injuries a new record

or the terminal At the same time, berth productiv-ity rose by % Again, there could be other actors

inluencing the increase in productivity, but there

seems to be a clear pattern here and in other

terminals

64%beth poductivity incease in 37 dayswithout injuies in Pot o Itajai, Bazil

USD 450,000invested and new ecods set in containehandling combined with stong saetypeomance in Tema, Ghana



19/44

Climate& environment

highlights

20%ew Gru trget r

reltive reducti i C

r t .

8%reltive Co reducti

chieved r t .

82% the Grus Co

eissis ce

r mersk Lie.

6%reducti i So eissis.

0il sills

(ctegries d ).*

We recgise the risks clite chge ses t sciet

d ur busiess s well s the eed t shit t lw

rb ec. We surt the siti tht dequte

rts ust be de t liit glbl wrig.

AP Moller - Maersk Groups activities carry

iicant environmental risks as well as direct

indirect impacts on the environment The three

mary environmental risk categories across the

Group have been identiied as major oil spills, uel

consumption and related CO emissions, and bio-

diversity impacts, with speciic importance placed

on the Arctic On page we explain our progress in

managing these risks in order to mitigate and reduce

any adverse impacts on the environment rom

process saety procedures to eiciency measures

and new technology

Cla cang and nrg ffcnc

Climate change is the key environmental issue

across the Group Primarily due to the direct and

indirect CO impacts related to running an oil busi-

ness, as well as the signiicant levels o CO emitted

by our leet o more than container ships

As a response, we ocus on advancing energy e-

iciency across the industries in which we work, and

put the lions part o our eorts where we have the

largest impact: shipping While our size in shippingcomes with a signiicant ootprint, it is also through

our scale and position that we can drive signiicant

eiciencies and help raise industry standards

The shipping industry is pivotal in improving the

eiciency o the entire global transportation system

as shipping is the most eicient way o transporting

goods across the globe

Nw Gro CO2 rdcon arg: 0%

To document and promote eiciencies across our

dierent businesses, we have a Group-wide target o

reducing relative CO emissions We have adjusted

our target rom a % relative CO reduction rom

to to relect Maersk Lines advancement

in energy eiciency (see the box below) The new

Group-wide target is a % relative CO reduction

rom to The increased target would

correspond to the reduction o more than ,

tonnes o total CO emissions, all other things beingequal (ie with the same level o business activity in

as today)

ch busiess hs shre the Grus ttl Co

issis.

ur busiesses esure their reltive Co ei-

ec i dieret ws. Fr exle, mersk Lie

ertes with Co er ctier (TEU), mersk

kers uses Co er crg uit x uticl ile,

d apm Terils Co er lited ctier (TEU),

eti just ew exles.

he we cslidte the ul Co eiciec

ch busiess t deterie the Grus Co eiciec,

e irst deterie the chge i errce b er-

tge r ech busiess. The reltive errce

r ech busiess is cllted it Gru idex. I

is idex ech busiess ctributi is weighted i

rs their shre the ttl Gru Co eissis.

his igure shws ke busiesses shre the

tl Gru Co eissis.

mersk Lie

mersk oil

mersk Tkers

others

mersk Lie clerl destrtes the busiess

cse eerg eiciec. I , the shiig lie

reched its trget reducig Co e issis

b % er ctier (TEU) r its bechrk

levels eight ers hed tie.

T kee etu, mersk Lie hs rised the

trget t % reducti i Co er ctier (TEU)

b . mersk Lies cus eerg eiciec

hs de the c sigiictl re cst

cetitive.

It is estited tht shiig crries % glbll

trded gds. While shiig is b r the st

eerg eiciet w t trsrt crg lg dis-

tces, the ctributi Co t the tshere is

% the glbl ul ttl.

mersk Lie reched its trget lrgel r

cbiti ertil eiciec, etwrk d

vge tiisti, slw steig d techicl

ivti. mre the se will hel mersk Lie

rech the % trget. als, ctiued certi

with vessel lesig rters t retrit shis d

the rrivl the ext geerti Trile-E vessels

will ctribute t uture Co reductis.

mersk Lies qutu le i

enitiono categoryand spillsis explainedinoursustainabilityaccountingprinciplesonpages

40%New Maesk Line elativeCO2 eduction taget (00700)25%

CO2 eduction pecontaine since 007

Shre

ttl Co eq.

eissis

%

%%

%



20/44

u errce

AP Moller - Maersk Group has achieved an %

rovement in CO eiciency since , mainly

en by large improvements in our container busi-

s Both our relative and absolute CO emissions

eased in The improvements are mainly

to Maersk Lines advancement in energy e-

ncy (see the box on the previous page)

rsk Oil exceeded its target to reduce CO emis-

s rom laring by % CO emissions rom lar-

rom operated producing acilities were reduced

% since This helps consolidate Maersk

position as better than average on CO peror-

nce against its industry peers Most o the laringctions were achieved in Qatar (see page )

SOx and NOx

, tonnes o SOx were cut by the Group in

The main contributor was Maersk Line, primarily

through reduced uel consumption, and by virtue o

a new Emission Control Area (ECA), which entered

into orce in August covering an area o

nautical miles rom the coast o North America

Spills

Maersk Tankers ship, Maersk Erin, accidentally

spilled m3 o waste, while de-canting slops in

the Atlantic, which was the only category and

spill in None o the businesses have expe-

rienced major oil spills The deinition o category

and spills is explained in our sustainability

accounting principles on pages

mjr il sill resse

oil sills re risk shred b st ur busiesses:

whe drillig r d extrctig il, ccidets led

t il streig r the well; d whe trsrtig

il, the shi sufer brech d lek substtive

uts il it the se. The se sceri c be

evisged r lrge ctier shis tht crr sigict

qutities buker il r csuti. Such breches

culd ls ccur while i rt, s re-uellig tkes lce

i rts.

The ressibilit r resdig t il sill lies with

ech the ur busiesses, ll which hve il sill

resse ls.

Co eissis d uel csuti

The i driver ur ctiuus reductis i Co

eissis is reduced seed, ls kw s slw ste-

ig. This leds t l wer uel csuti d Co eis-

sis. Slw steig is ssible with slight l tertis t

the shis egies d the w the re erted, which

we develed with egie suliers d shred reel

with the shiig idustr.

Td, slw steig is the r, d i we

ursued ew eciec levels b tiisig ur rute

etwrk r wider use slw steig. This icluded

tkig ut rts r jures, higher eciec i rts

llwig r re tie t se, irved cuicti

betwee rts d shis t llw r lwer seed i cse

rt dels d reegtiti rrivl ties r es-

tblished jures.

The jrit ur eet ws built r tie where seed

ws ririt. We re wrkig t tiise these shis

usig techlg-bsed slutis i ccrdce with the

cus uel eciec:

Relcig the shis bws with she better suited t

slw steig. The reducti tetil is % uel

csuti er er. Istlltis begi i .

mersk Lie hs lied ethds t switch idividul

turb chrgers d f. The reducti i ttl uel c-

suti is estited t be .% (.% idividul ves-

sels). vessels re w equied with the sluti.

adjustig uig ccit r sewter used t cl

dw the chier shi reduce ttl csu-

ti b .%. Se shis lred hve this sluti i-

stlled d ther shis re beig evluted r istllti.

Istllig sll s the cetrl rt the shis

reller rvides estited reducti i ttl uel

csuti .%. The istllti is curretl beig

ivestigted b mersk Lie d mersk Tkers.

The svig tetils shuld be cred t curret uel

csts rud USD billi er er. Svig % uel

equls % less Co eissis.

noCbusti ll uels releses no x. new shis built

ter Jur will be required t reduce no x eis-

sis b % whe ertig withi Eissi Ctrl

ares (ECas). I c-erti with man Diesel & Turb,

we re cductig brd test, strtig mrch ,

man egie exectig % no x reducti.

SoThe glbl gl is t lwer So x eissis d the issue is

beig regulted b the Itertil mritie orgis-

ti (Imo). Kw ws t reduce rie So x eissis

re burig uel with lwer r sulhur ctet, bcleig exhust gs thrugh the use scrubbers, d

usig shre wer while i rt.

Imo regultis ce it rce i , d urther

liittis llwed sulhur levels will ce it

rce i . a uber Eissi Ctrl ares

(ECa) re lred i lce, ls regulted b Imo. Whe

ew Sox restricti withi ECas ces it rce i

, the sulhur i uel will be lwered r % t

.%.

We surt the gl lwerig So x eissis. Sice ,mersk Lie hs cducted seve vlutr uel switch

rgres wrldwide i res utside ECas, where the

shis switch t lw-sulhur uel whe eterig secied

re. Five these re still ctive.

We re ivestigtig techlg-bsed slutis withi

scrubbers, liquid turl gs d biuels. The scrubber

test is exected t begi i the rst hl .

, mersk Tkers bece the irst tker

t sig crb ct with jr il

. The ct clls r % reltive reduc-

the trit Sttils vges ver

ree er erid ( ).

live u t the ct, mersk Tkers is servicig

til with their st eerg eiciet shis d

itrig the errce ever sigle v-

e. Ever six ths mersk Tkers udtes

til its rgress.

mersk Tkers will egge with Sttil i techi-

cl, ertil d cercil wrkshs t

tiise the shred beeits the ct.

S r, the ct hs id . The vessels de-

led Sttils vges hve reduced their

crb trit b %, st which is due t

seed wreess d tie rrivls i rt.

mersk Tkers

10%tageted elative CO2 eduction o theootpint o St atoils voyages (0 04)

o v d itigtig stes



21/44

The arctic ses r t e d tur

it re il extrcti. Due t the secil

sesitivities the arctic, it will be t lest ther

three t ive ers bere we decide i we believe il

rducti c tke lce i se er. I the

etie we re wrkig t ke ur decisi

ired e.

marsk Ol hs .% iterest i exlrti

licece r re i the Bi B shre nrth

West Greeld. Durig , the c crried ut

ctivities t gi better uderstdig the re:

. A 3D seismic survey The D seisic surve

is rl irst ctivit whe exlrig r il.The chllegig rt ws the resece

icebergs i the re. The erti lsted tw

ths d ws cleted stisctril, d

curretl the dt is beig rcessed.

. Hydrographic survey The hdrgrhic

surve, detiled ig the wter deth,

ws erred i the se re s the seisic

cquisiti. additill, se sles were

cllected r the sebed t xiu deth

se ive etres. The urse ws t get bet-

ter uderstdig the er sebed cditis

becuse se the re ws kw t cti

ver hrd teril, which c ict the iter-

retti the seisic dt.

. Shallow coring mersk oil iitited the rti

csrtiu il cies with liceses i the

Bi B t bti better uderstdig the

res gelg. The csrtiu, erted b Shell,

drilled wells t lctis r where the cres

were extrcted. These cres will rvide gd u-

derstdig the subsurce reresetig severl

kiletres i the re where the tetil dee drill-

ig will tke lce i the uture. mersk oil exects

t rcess d iterret the cllected dt ver theext ew ers t ssess the hdrcrb tetil

i rder t decide i dee well is wrrted.

marsk Drllngis exlrig the ssibilit d

tetil develig ll-er sluti r drill-

ig i the arctic. This rject, which is crried ut

i certi with mersk Sul Service, Esvgt

d Dbr, is still i its erl stges d decidig

whether mersk Drillig will be ctive i the arctic

is still se ers w. The sluti exlred i the

curret rject cbies existig techlgies i

ew ws, ivlvig dres d subries r ice

geet, ewl desiged ice-brekig shis,

ew ws ctrllig the etire drillig rcess

d crehesive risk lses.

marsk Sl Src hs bee ig arctic

rtuities d is curretl desigig ice brekigchr hdlig shis tht re ble t erte i

the arctic, d is ivlved i the mersk Drillig-led

arctic ccet. mersk Sul Service wrks tw

tetil busiess rtuities i the arctic: il

exlrti d cercil ice brekig.

marsk tankrs hs sice aril bee deliver-

ig eerg t Greeld ive er ctrct d

is surtig the ileetti stdrds

d regultis t esure se d sud shiig

ctivities i the arctic regi.

Danbor Src hs tgether with Rl arctic Lie,

shiig c r Greeld, set u the jit

veture arctic Bse Sul, which is ertig shre

bse r Cir Eerg. arctic Bse Sul is ressi-

ble r gst ther thigs ldig d uldig

sul shis, crg hdlig, ckig d stckig

ctiers, hdlig ies d wste.

esag curretl hs -er ctrct i the rctic

regi nrw: The Glit ield with Herest

s bse hrbur. There re curret ctivities i

Greeld, but Esvgt hd tw ctrcts with Cir

Eerg the Wester cst Greeld durig

their drillig cig i .

lorng Arcc

US Geological Survey, the Arctic was esti-

ed to be home to more than % o the worlds

scovered conventional hydrocarbon reserves

apped Recovery o these reserves could make an

ortant contribution to secure economic growth

continued welare o populations both locally

globally

oring the Arctic or oil is more challenging thanother environment The majority o the area is

ree only a ew months per year and, even then,

ergs sail through the waters At the same time

marine environment is ragile at best, and some

ntists claim that i an oil spill were to occur it

ld be very diicult to deal with in waters with

h low temperatures

We ully recognise the sensitive and unique Arctic

environment To us, it is a new area and signiicant

amounts o analyses and preparations lie ahead o

eventual operations in the area

What is true or all o our business activities in this

area is that the saety and natural environment o

the Arctic region and its people must not be compro-

mised Our position is clear: i we cannot ind a way

to ensure that we can handle daily operations in asae way as well as upholding a satisactory level

o disaster response, we will not proceed

a d rertisctiueddiversit

, the a.p. mller - mersk Gru rtered with

e Un Eviret prgre Wrld Cservti

itrig Cetre, t udertke stud t ssess ur

bl ertig sites tetil exsure t bidiversit

sitivities, d t devel c rewrk r

e crss ur ertis. This Bidiversit Sesitivit

sesset icluded threteed secies, rtected

res, vulerble secies d ecsstes d res

cservti irtce.

art r cretig c rewrk d deitis

r the Gru, this lsis rvides rst ste i eblig

ur busiesses t uderstd bidiversit i the ctext

their ertis d t begi t ge ict.

Wste

estsigictdecresewsteutsiis re-

edtthectthttheGrudidtscrshisi;

heresi SLItegritwsscredrmerskLie.

Dsk Suerrked Gru, wste uts hve

cresed due t re stres, but the direct re-use hs

cresed eve urther due t elrged greeet

cku surlus bred, which is resld r rk eed.

Suitble wste d recclig cilities re t lws

vilble i rts, thugh eeded b ur shis, which

ct disse -bidegrdble wste d sludge

t se ccrdig t ur eviretl lic. mersk

Lie hs therere iitited c-wrk with se rt

uthrities d wste revl cies t esure

clice with the Grus stdrds.

llst wter

schrge utreted bllst wter leds t tetil

ese -tive r ivsive secies i rie

virets wrldwide.

r this res, the Imo will diister regultis tht

ll disllw eissi wter whe crssig r e

-e t ther. These es re t be deteried

the idividul cutries. The regultis c be

ected t ce it rce i /.

I rder t rere r this regulti, we re lig t

istll bllst wter tretet ls -brd ll shis i

itertil trde. T esure sul we hve rticited

i the develet bllst wter tretet sste,

certied b the Imo i .

other tis re ls beig csidered, r exle

wter tretet ls be istlled -shre rther

th -brd.



22/44

Human rightsWe resect hu rights d wrk t esure tht

e d t ctribute t hu rights viltis.

working to integrate human rights in our business

esses, we are able to stay true to our values

simultaneously reduce risks in the supply chain

-compliance with human rights creates the risk

oth disruptions to o perational stability, reputa-

al damage and stable market conditions

ag and gornanc

approach is to integrate human rights manage-

t into existing business processes We aim to

work in accordance with the UN Guiding Principles

on Business and Human Rights The eorts at

Group level and targets or can be seen in the

box below

In practice, a large part o the human rights agendais covered by other programmes such as health and

saety, responsible procurement, labour principles

and anti-corruption, or simply responsible business

practices Progress in these areas is described in

separate chapters in this report Beyond these pro-

grammes, human rights in business requires transla-

tion o universal principles into practical, relevant

guidelines or action in areas such as responsibility

in the value chain, responsibility by association with

business partners and customers and when operat-

ing in politically volatile regions

In , we carried out high-level workshops

acilitated by the Danish Institute or Human Rights,

and with representatives rom our businesses This

resulted in a list o prioritised issues or us to inves-

tigate urther, or example working conditions or

third party in-premise sta We will work urther with

these issues in

Onng arks

Our business is strongly dependent on emerging

economies On many occasions, the markets we

ocus on may also be highly volatile and corruption-

plagued When we work with human rights we also

mitigate our risks in growth markets

An example o this typ

Maersk Sustainability Report 2012

Documents