UN agrees to halve shipping emissions by 2050 in historic deal
Members of the UN’s International Maritime Organization (IMO) have struck a historic deal to halve their CO2 emissions from shipping by 2050.
The deal marks a critical shift for the global shipping sector - which until last week, was one of the only major industries without a sustainable climate plan.
Cargo ships are crucial to today’s global economy, transporting about 90% of internationally traded goods.
Between 2007 and 2012 alone, global shipping by sea emitted around 1 billion metric tonnes of CO2 per year on average, according to the International Maritime Organisation.
This equates to 3.1% of global CO2 emissions per year, which is more than the annual emissions of Germany.
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The Maritime body predicts that, if the industry is left unchecked, shipping-related emissions could soar by as much as 250% by 2050, as global trade continues to grow.
Publishing a detailed analysis of the climate agreement, University College London said “Meeting this target means that in the 2030s most newly built ocean-going vessels will run on zero carbon renewable fuels.
“Ships, which transport over 80% of global trade, will become free from fossil fuels by then."
Under the agreement, 173 nations are pursuing efforts to reduce CO2 emissions, taking into account the core objective of the Paris Climate Change Agreement, which aims to limit the rise in global average temperature below two degrees Celsius.
Speaking of the deal, Patricia Espinosa, the UN's Climate Change Executive Secretary, said: “The decision to at least halve greenhouse gas emissions from international maritime transport by 2050 is a major milestone in addressing climate change.
“It will accelerate the inevitable decarbonization of global shipping, which we all need to achieve the goals of the Paris Agreement.
She added: “I call on all nations to build on this achievement and use the review mechanism enshrined in the strategy to step up the level of ambition in 2023 when the strategy will be reviewed in light of the new science and available solutions. The climate compass is now clear, a low-carbon and resilient future is the only way forward for the sustainability of maritime transport.”
ASCM: Supply chain pay gap closes in under 40s
The pay gap between men and women working in supply chain under the age of 40 has finally reached parity, according to the Association for Supply Chain Management’s latest annual Supply Chain Salary and Career Report.
The gender pay gap in this age group had been narrowing over the past two years, the ASCM’s previous surveys show, and in 2021 has closed entirely. Women report a median salary of $81,000 annually, while men earn a median annual salary of $79,000. Across all age brackets, men report a median salary of $82,000 and women $80,000.
Other highlights from the ASCM report
- 95% of supply chain professionals kept their job through the pandemic
- The typical starting salary for a supply chain professional is $60,000
- 48% of supply chain professionals now work from home
- 88% of survey respondents find supply chain a fulfilling career path
But there is still work to be done in closing the divide in those over the age of 40. Older men are still earning far more than their female peers, with a discrepancy of between $12,000 and $23,000 annually. ASCM’s report does not definitively conclude why this disparity remains, but says women who began their careers several decades ago may have started out on lower salaries. They may also have missed out on steady wage increases and career development after taking time away from work to have and raise families.
It is also likely that the pay gap in over 40s is affected by a lack of women in executive leadership positions. A recent Gartner study found that, while women now represent 41% of the supply chain workforce - a five year high - only 15% of executive level positions are held by women. That figure is a decline of two per cent on 2020.
Supply chain’s racial pay gap remains
For the first time, ASCM’s annual survey also looked into the pay gap between ethnicities, finding that the median salary for black professionals was 12% less than their white peers, and Latinos earned on average 14% less. That represents a divide of between $9,000 and &10,000 in real terms. Asian professionals earned a median salary of $80,000, compared with the $83,000 for white professionals.
Abe Eshkenazi, the ASCM chief executive, said reporting on and acknowledging lingering wage disparity was not enough: “Supply chain organisations must lead the way by creating environment where diverse talent is valued, included and developed. The need for supply chain professionals has never been greater, so now is the time to expand the aperture to include diversity of thought, influence and input — particularly for women and people of colour.”
Read the full report: ASCM 2021 Supply Chain Salary and Career Report