The Maritime Anti-Corruption Networks (MACN) published its annual report for 2023, highlighting the multiple challenges that the maritime industry is facing.
Navigating Increasing Geopolitical Uncertainty
The maritime industry is navigating increasing geopolitical uncertainty and extensive risks. From Ukraine to the Red Sea, merchant ships have been directly targeted as part of direct and proxy conflicts, leading companies to divert vessels to alternate routes. New trade routes may mean new threats, and managing port calls with less support infrastructure may increase corruption risks. Sanctions, compliance, and trade rule enforcement are likely to increase for all companies involved in the moving and management of trade explained by MACN CEO Cecilia Müller Torbrand
MACN has also seen considerable changes in the public visibility of Environment, Social, and Governance (ESG) issues. There is public frustration around the perceived lack of tangible ESG results despite numerous and sometimes overstated corporate efforts. This has resulted in regulatory responses to related Greenwashing, with the EU Parliament passing groundbreaking legislation. Companies engaging in Greenwashing making unsubstantiated claims now face considerable penalties.
Third-Party Risks and Compliance Challenges
Outsourcing risks and delegating unethical behavior in high-risk markets has been a no-go for a long time. However, third-party liability remains one of the biggest challenges for companies with global operations. There is a growing trend among regulators to include the activities and actions of local business partners and suppliers in corporate Anti-Bribery and Corruption compliance.
Download the report here
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Source: Safety4Sea
