ESG Sustainability 2
.docx
School
Deakin University**We aren't endorsed by this school
Course
EAP 2
Subject
Management
Date
Jan 9, 2025
Pages
5
Uploaded by SuperHumanChinchillaMaster1319
The Rise of ESG:In 2004, ESG became official after it entered a report called “Who Cares Wins.” The report stated how to incorporate the ESG factors into a company’s operation and going in depth in each of what ESG is made of; Environmental, Social and Corporate Governance.ESG has evolved throughout the years, it changed the way of processing certain aspects of businesses and to start taking into consideration the impact of a certain decision made whether it was good or bad and to what degree has it been affected.
Each pillar has certain responsibilities a company must follow to achieve sustainability. Therefore, SilverSea must focus on the following factors.EnvironmentalIn order to assess how well SilverSea is managing its impact on the environmental sector, the company would have to focus on being efficient with the resources and manage their water and energy consumption completely. Moreover, SilverSea would have to implement strategies on tackling wastes in order to avoid killing the animals and endangered species at sea by reducing, reusing and recycling.SocialThe following pillar assesses how well the company in this case, SilverSea, is taking care of its employees, customers, suppliers and the other people. The company will have to embrace diversification in order to show the world that SilverSea is open to having a distinct set of personalities from different cultures around the globe. As well as, focusing on customer satisfaction, human rights, and being in compliance with the labor practices by providing their employees with minimum or fair wage while avoiding any illegal employment in unseen areas (Areas that cannot be seen by the guests) such as child labor.GovernanceThe governance pillar focuses on transparency and accountability of actions taken by the organization. The following assessments focus on diversification across the board members, being in compliance with the laws and regulations, overseeing the policies and ensuring no fraudulent activities are being implemented within the organization and making sure that the company’s current position is inline with its goals.Materiality Analysis:SilverSea Stakeholders:1.Employees2.Guests3.Regulators4.Investors and Royal Caribbean5.Local Communities across Ports
Environmental1.Sustainable ProceduresThe use of LNG (Liquefied Natural Gas) to decrease carbon emission by 30%. Therefore, SilverSea is contributing to sustainability and is considering its carbon emissions and trying to lower them down by taking into account the main aspects that are having a drastic effect on the environment. With SilverSea´s new ships, it is evident that the company is in compliance with today´s sustainable standards.2.Waste ManagementSilversSea is using towels instead of tissues to minimize waste as well as recyclable materials to further minimize the effect on the environment.3.Local PortsSilverSea is following the rules of the local ports (The ports where the ship usually ports in) and is making sure that the ship is in compliance to their standards in order not to affect the location’s economy as well as environmental.Social1.Employee SatisfactionThe company is well invested in their employees and this can be seen by the way they are taken care of, covering travels as well as being in compliance with the norm in work hours.2.Guest SatisfactionSilverSea is all about luxury when it comes to guest experiences as it stands out from the other luxury cruises with its unique services offered to the guests while ensuring their safety throughout the whole voyage all at once.3.Localized GoodsWith S.A.L.T, SilverSea is focused on using localized food thus benefiting the economy of the ports they visit around the globe. Moreover, SilverSea tends to use localized products not just for S.A.L.T but for their other restaurants.This explains their strong contribution to the social sector.Governmental1.The company was recently owned by Royal Caribbean which is considered as the number one company in the cruise line industry in 2020. Knowing Royal Caribbean, it is one of the biggest investors in green emission.2.The fact that SilverSea has been acquired by Royal Caribbean, the company clearly shows a positive health for the long-term financially and is well aligned with its goals. Moreover, since Royal Caribbean is in the green-movement, it is a
common move for them to also look into purchasing future proof companies. Therefore, SilverSea is considered as one of those green companies.Materiality MatrixReferences:Krantz, T. (2024, December 17). Environmental social and governance history. IBM. The History of Environmental Social And Governance (ESG) | IBM.
Peterdy, K. (2023, October 26). ESG (Environmental, Social, & Governance). Corporate Finance Institute. ESG (Environmental, Social, & Governance).ESG performance: Definition and best practices. (n.d.). Plan an Academy. ESG performance: Definition and best practices.