DP World has announced it will invest up to $500 million to cut CO2 emissions from its operations by nearly 700,000 tonnes over the next five years.
The announcement was made at the UN Climate Conference (COP 27) in Sharm El-Sheikh, Egypt.
DP World also announced it will be joining the Green Shipping Challenge (GSC).
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Launched earlier this year by US Special Presidential Envoy for Climate Change John Kerry and Norwegian Prime Minister Jonas Gahr Støre, the challenge encourages countries, ports, companies, and other actors in the shipping value chain to come forward with concrete announcements to further ocean-based climate actions.
“Global trade has been an enormous force for good, keeping our world connected and lifting millions out of poverty over the last few decades,” said Sultan Ahmed Bin Sulayem, DP World Chairman and Group CEO.
“But this growth is not without consequences – from the scale of energy required to make, move and use goods to the resource intensity of logistics and the challenges economic growth can bring.
“As a leading enabler of global trade, we have the tools, ingenuity and drive to lead a step change in logistics.”
The planned reduction in carbon emissions represents a 20 per cent cut from 2021 levels.
DP World’s plans include replacing its global fleet of assets from diesel to electric, investing in renewable power and exploring alternative fuels.
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“We have already committed to becoming a carbon neutral enterprise by 2040 and net zero carbon enterprise by 2050,” added Bin Sulayem.
“We will work with our global partners to develop an action plan to advance the goals of the GSC and encourage industry players to devise plans to address climate change.”
In January, DP World entered a strategic partnership with the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping undertaking intensive research and development to find ways to decarbonise the global maritime trade industry.
Bin Sulayem highlighted that one of the biggest challenges comes from the company’s marine services and logistics businesses, which represent a major portion of the DP World’s total carbon footprint through their fleets of vessels and trucks.
DP World Limited handled 59.6 million TEU across its terminals in the first nine months of the year in spite of decelerated growth rates.
In the third quarter of this year, DP World handled 20.1 million TEU, up 1.5 per cent year-on-year.