Maersk Sustainability Strategy Case Study

1. Company sustainability strategy 2014- 2018

In 2014 Maersk introduced a new sustainability strategy in order to face the sustainable challenges that constitute a bottleneck for the company´s growth. Furthermore, the aim of Maersk sustainability strategy is to address sustainable value creation for society and Maersk. The company has identified three main areas of opportunity where they have to focus on, in order to promote the positive impact of the company:

• Energy efficiency: enhancing CO2 efficiency by promoting efficient supply chains and infrastructures, while reducing costs;

• Enabling trade: access to global markets that can help generate economic development and employment, improving conditions for businesses through new opportunities

However, internal resources are not sufficient, and synergies with external players and circumstances are important. Applying the concept of shared value, formulated by Porter & Kramer (2011), the successful outcome of Maersk sustainability strategy is influenced by the supporting companies, institutions and infrastructures in the Indian market. The cooperation with large multinational banana companies could bring the necessary level of investments to improve farmer educations. Investing in education and relevant support services will give farmers the knowledge and skills to increase quality production and reduce waste. Another key issue for unlock future growth is the state of India´s rural roads and the accessibility to ports. Today, it will take up to three days to move a banana pack-house to the closest port, 300 kilometers away. Quality production and innovation are strongly affected by geographical concentrations of firms, suppliers, institutions and logistical infrastructures. As a matter of fact, helping small farmers increasing their yields will not bring any lasting benefits unless there are customers, suppliers and logistical infrastructures ready to be engaged to mobilize these

Maersk can take advantage of its embracer role in order to influence local government investments and regulations. Embracers are distinguished from second movers by size, sector and often they operate globally. First movers claim that sustainability strategies are also helping them to gain competitive advantage. In this case, Maersk export trade expansion will be driven by knowledge and resources. In other words, Maersk contributes to the Indian banana export by developing a sustainable shipping and trade strategy. As an example, through investments in container technologies and innovation, the firm developed a refrigerated container which is able to save 12% of CO2 emission, compared to the industry average (Emneus M., AEHR & Scheving L, First Line, 2012). The company also applies the new system created for saving water in Costa Rica, which will enable to reduce the water consumption per banana box from 150 liters to 18. The firm´s ability to recognize the value of new information, extract relevant market knowledge, combine it with existing knowledge and integrate it into new products as well as into the whole organization, has been defined by Ketata et.al.(2014) as absorptive capacity. Absorptive capacity can be a key factor of competitive advantage for many firms. AC is developed by R&D activities, which stress the technological aspect. As outside sources of knowledge are