Adapting to disruptions and decarbonisation becomes ‘new normal’ for global companies (2024)

April 9, 2024. Shanghai – In a radically changed business environment marked by volatility, uncertainty, complexity, and ambiguity (VUCA), building resilience is essential for global companies to navigate disruptions and move towards a greener future.

This was one of the key messages delivered by Executive Vice President and President Europe at Maersk Aymeric Chandavoine during a fireside chat at our Shanghai campus today.

During this engaging forum, Mr. Chandavoine and CEIBS Vice President and Dean Frank Bournois delved into the significant changes in today’s global trade, and how Maersk, an integrated logistics company, is responding to modern challenges and helping customers build resilience in their supply chains.

As a new global economic cycle begins, Mr. Chandavoine identified a polycrisis framework characterised by four major shifts, namely geopolitical turmoil, value chain disruptions, resource competition, and climate change.

“Five years ago, I would have never imagined that we’d have the Ukraine crisis and conflict between Hamas and Israel. There is also more and more restriction, and protectionism is coming back,” said Mr. Chandavoine, highlighting that the crisis in the Red Sea, a region that has long been an important artery for global trade, adds more disruptions to global supply chains and prompts shippers to divert routes south via the Cape of Good Hope.

“In the past, global trade grew faster than the economy. Now, it grows slower,” he continued.

Technological change, including the advent of AI, is another source of disruption. “AI is changing the way we do business. It creates opportunities, but also disruptions with new business models and consumer preferences,” Mr. Chandavoine explained.

The fourth shift is climate change, he continued. Taking the Panama Canal as an example, Mr. Chandavoine noted that 5% of global maritime trade goes through it, but now a severe drought in the region has led to shipping disruptions and posed challenges to global trade.

Disruptions are becoming the ‘new normal’ and are here to stay. For many years, we were here to simplify and optimise the supply chain. Today, we need to rewire the supply chain to be cost efficient, and most importantly, to be resilient,” Mr. Chandavoine said, adding that resilience is the defining criteria and primary motivating factor for supply chain strategy.

In discussing the emerging trends in anticipating disruptions, Mr. Chandavoine pointed out that AI investment is a major success factor to help Maersk move from “reactive” to “proactive” in offering solutions for customers.

“When we give our customers the visibility, that their ships will be late, they would ask for optionality, what can we do as a shipment provider,” said Mr. Chandavoine, noting that AI-powered systems can be used to identify potential problems, offer customers real-time visibility into supply chain operations, and optimise delivery routes.

As a global provider of logistics services across all transport modes, the Danish company has also been in the forefront of decarbonisation and is committed to achieving net zero greenhouse gas emissions by 2040 across its entire business with new technologies, new vessels, and green fuels.

“The logistics industry is the third largest polluter in the world, with around 11% of the global emissions coming from supply chain, among which vessels is the major carbon emission sources […]. At Maersk, green methanol-fuelled vessels is a way to move forward, which can save up to 85% of carbon emissions compared with traditional fossil fuels,” Mr. Chandavoine said.

In 2023, Maersk successfully secured green methanol for the maiden voyage of the world’s first methanol-enabled container vessel, marking a significant step for the company and the industry’s efforts to reduce greenhouse gas emissions.

“When we started, there was no supply of green methanol. But if you don’t invest into green vessels, you don't create a supply. So, you need to take some risk into it. It will take time, but if you keep waiting for the perfect solution, then it's too late for the planet, you just need to act now,” he explained.

In talking about “China Plus One”, an emerging supply chain strategy that encourages multinationals to diversify their operations away from China to mitigate risk and access new markets, Mr. Chandavoine expressed confidence in Chinese foreign trade given that the country accounts for 20% of global export trade.

“When companies relocate their factories, what is super difficult is how to build the ecosystem around, how to build your network of suppliers and raw materials. When you move the factories to small countries, there is not enough capacity to bring those goods to US and Europe. It would take for more than three to ten years,” he concluded.

Adapting to disruptions and decarbonisation becomes ‘new normal’ for global companies (2024)


Why are we Decarbonising? ›

Decarbonisation is the strategic reduction of human-induced carbon dioxide (CO2) emissions to combat the severe impacts of global warming. This effort demands a worldwide pivot away from fossil fuels, including oil, coal, and gas.

What is the need for decarbonization? ›

Decarbonization aims to mitigate the impacts of climate change by significantly decreasing the amount of CO2 released into the atmosphere. To reach the global temperature goals established by the Paris Agreement and the UK government, it is imperative to reduce the quantity of carbon dioxide around the globe.

How does manufacturing affect climate change? ›

Manufacturing and industry produce emissions, mostly from burning fossil fuels to produce energy for making things like cement, iron, steel, electronics, plastics, clothes, and other goods. Mining and other industrial processes also release gases, as does the construction industry.

What is Decarbonizing? ›

What is decarbonization? Decarbonization is both a method of climate change mitigation and the process of significantly reducing or eliminating carbon dioxide (CO2) and other greenhouse gas (GHG) emissions from the atmosphere.

Is decarbonisation good or bad? ›

This can cause knocking and compression pressure loss which can reduce the car's performance drastically. Frequent engine decarbonisation is not recommended.

Are we removing carbon from the atmosphere? ›

Today's approaches can capture only a tiny fraction of what's needed: around 2 billion tons of carbon dioxide annually, according to one recent study. Nearly all of this removal is accomplished through longstanding, nature-based strategies such as replanting forests, rather than via advanced technologies.

What are the three main decarbonization strategies? ›

  • Strategy 1: Energy Efficiency.
  • Strategy 2: Renewable Energy.
  • Strategy 3: Building Electrification.

Why is decarbonisation important for businesses? ›

In short, corporate decarbonisation emerges as a critical strategy for businesses aiming to mitigate their environmental impact. It is a holistic strategy to decrease or eradicate the carbon dioxide (CO2) emissions associated with their operations.

What are the five pillars of decarbonization? ›

The five decarbonization pillars depicted above are: Energy Efficiency (rose/pink bars): Reducing energy consumed to provide energy services. Clean Electricity (gold/yellow bars): Reducing the carbon emissions intensity of electricity generation. Electrification (blue bars): Switching end uses to electricity.

What are the 3 main causes of global warming? ›

Burning fossil fuels, cutting down forests and farming livestock are increasingly influencing the climate and the earth's temperature. This adds enormous amounts of greenhouse gases to those naturally occurring in the atmosphere, increasing the greenhouse effect and global warming.

What are 5 causes of global warming? ›

10 Causes of Global Warming
  • #1. Power plants. ...
  • #2. Agriculture. ...
  • #3. Vehicles and transport. ...
  • #4. Landfills. ...
  • #5. Offshore drilling. ...
  • #6. Fracking. ...
  • #7. Deforestation. ...
  • #8. Overfishing.

What are 5 ways to stop global warming? ›

10 Ways to Stop Global Warming
  • Change a light. Replacing one regular light bulb with a compact fluorescent light bulb will save 150 pounds of carbon dioxide a year.
  • Drive less. ...
  • Recycle more. ...
  • Check your tires. ...
  • Use less hot water. ...
  • Avoid products with a lot of packaging. ...
  • Adjust your thermostat. ...
  • Plant a tree.

What is a decarbonisation strategy? ›

A decarbonisation strategy brings together key elements of your Net Zero planning process to provide a high-level framework for how your organisation is going to act on carbon.

How do you Decarbonize the world? ›

at the core of the decarbonization transition.

Carbon-neutral electricity can be produced from renewable sources (windmills, photovoltaic power, concentrated solar power, large dams and small hydropower, and biomass), nuclear power, and fossil- fuel resources with carbon capture and storage (CCS).

What are the negative effects of decarbonization? ›

Higher fuel prices due to increased use of decarbonised supply leading to fuel poverty and associated health effects. 3. Energy efficiency improvements increasing the risk of summertime overheating which can result in impacts on health.

Why does the US emit so much carbon? ›

Human activities are responsible for almost all of the increase in greenhouse gases in the atmosphere over the last 150 years. The largest source of greenhouse gas emissions from human activities in the United States is from burning fossil fuels for electricity, heat, and transportation.

Why do we emit so much carbon? ›

Carbon dioxide concentrations are rising mostly because of the fossil fuels that people are burning for energy. Fossil fuels like coal and oil contain carbon that plants pulled out of the atmosphere through photosynthesis over many millions of years; we are returning that carbon to the atmosphere in just a few hundred.

Top Articles
Latest Posts
Article information

Author: Domingo Moore

Last Updated:

Views: 6201

Rating: 4.2 / 5 (53 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Domingo Moore

Birthday: 1997-05-20

Address: 6485 Kohler Route, Antonioton, VT 77375-0299

Phone: +3213869077934

Job: Sales Analyst

Hobby: Kayaking, Roller skating, Cabaret, Rugby, Homebrewing, Creative writing, amateur radio

Introduction: My name is Domingo Moore, I am a attractive, gorgeous, funny, jolly, spotless, nice, fantastic person who loves writing and wants to share my knowledge and understanding with you.