As a global shipping and logistics company, we continue to play a key role in the decarbonization of our industry and help our customers and partners decarbonize their supply chains.
Partnered with Salesforce to measure and analyze carbon emissions across our value chain.
As of March 30, 2022
Joined the Ship Recycling Transparency Initiative (SRTI).
As of March 30, 2022
Formed the New Energy division to expand availability of affordable clean energy.
As of March 30, 2022
Our Journey to Net Zero by 2050
While shipping is the most efficient means of transport, we are committed to improving our own practices. We are dedicated to net-zero GHG emissions across all scopes by 2050, pursuing a path aligned with the latest climate science to limit global warming to 1.5 degrees Celsius above pre-industrial levels. Starting in 2020, we developed a company-wide inventory of our carbon emission equivalents to serve as the baseline for our emissions reduction efforts moving forward. To reach our target, we will need to reduce overall emissions by this baseline number, over 3.7 million metric tons per year.
We have also initiated strategic partnerships to both measure and reduce emissions across our value chain. Notably, Crowley is the first U.S.-based maritime company to partner with Salesforce to use Net Zero Cloud to measure and analyze carbon emissions across our full value chain. By enabling us to see our carbon footprint in real time, this tool will help us reduce our impacts faster.
Percent of Scope One & Two Emissions by Business Unit
|Business Unit||Metric Tons CO2e (Scope 1+2)|
Greenhouse Gas Emissions by Scope
|Emission Scope*||Metric Tons CO2e|
|Scope 2||Location Based: 29,291||Location Based: 32,056|
|Market Based: 29,929||Market Based: 33,119|
*Conversion factors sourced from the US EPA Center for Corporate Climate Leadership’s GHG Emission Factor Hub, eGRID, the Green-e Residual Mix, DECC’s GHG Conversion Factors for Company Reporting and the International Energy Agency
**Estimated based on the Greenhouse Gas Protocol Scope 3 (Corporate Value Chain) Evaluator Tool
Climate Change Risks & Opportunities
The implications of a warming climate are serious – especially for the health and safety of our oceans and coastal communities. As a global maritime company, we must consider the risks of climate change to our business in the short- and long-term. In addressing these risks, there are areas of opportunity to lead the decarbonization of our industry, help our communities and partner for progress.
- Climate change impacts, including more frequent extreme weather events and rising sea levels, could disrupt transportation routes; damage company vessels, machinery or cargo; and require significant infrastructure changes for coastal facilities.
- Regulations mandating operational efficiency requirements for global fleets could result in significant costs for Crowley’s existing assets.
- Customers who have set their own GHG reduction goals could expect accelerated action on decarbonization efforts, and fully embrace the transition to a low-carbon economy. If our goals are not met, it could result in a significant revenue loss across the business.
- Year-over-year declining demand for liquid petroleum fuels due to greater fuel efficiency coupled with increased demand for low-carbon fuels could reduce the profitability of Crowley Fuels.
- The threat of ransomware attacks on systems that control navigation for ocean-going vessels, along with increased and changing storm patterns associated with climate change, are more critical than ever.
- The decarbonization of our business and the broader maritime transportation industry can drive decarbonization for businesses around the world.
- New zero- and low-carbon fuels could bring substantial development gains and reduce risks from the price volatility of liquid petroleum fuels.
- Positive progress toward achieving our GHG reduction goals can increase confidence among our partners and customers, potentially leading to more partnership opportunities and greater revenue.
- Refurbishing and retrofitting existing vessels to transport next generation bio- and renewable fuels could ensure the continued relevance of our vessel assets to assist in the new energy economy.
- Creating microgrids for island communities, such as our current project in Puerto Rico, can mitigate the physical risks of extreme weather events in vulnerable locations.
- Increased U.S. interest in offshore wind infrastructure could provide an opportunity for us to leverage our expertise in maritime and logistics solutions to support the development of large-scale offshore wind projects.
Reducing GHG Emissions
At Crowley, we will reduce emissions across our entire value chain by concentrating on three core strategies:
Embed Sustainability in our Work
In addition to the work we are undertaking to reduce our emissions and bolster zero- and low-carbon customer solutions, we support our employees’ continued sustainability engagement. In 2021, we began developing Sustainability Training, Assistance & Resources (STAR), a multi-faceted program that provides a series of learning experiences and educational content targeted at a variety of roles and levels across the organization. We have integrated sustainability into our employee onboarding process and will continue to engage colleagues through open forums, including suggestion boxes and monthly sustainability town halls, to highlight best practices across the business.
Lead the Way for Customers
At the end of 2021, we provided all our customers with a Global Logistics Emissions Council-approved GHG Protocol-aligned carbon calculation for movements. We are also actively investigating innovative low- and zero-carbon transport solutions for leading cargo owners in the Americas using renewable fuels. And we will continue to partner with our customers to drive emissions reductions, support innovation and build long-term credibility and trust.
Collaborate with Suppliers
Our emissions reduction goal includes our Scope 1, 2, and 3 emissions. With more than 80% of our emissions falling under Scope 3, our suppliers’ sustainability programs are critically important to our own ability to reduce emissions. In 2022, we will continue working diligently to build collaborative systems for emissions reductions by developing vendor evaluation and reporting tools that highlight areas for potential partnerships.
Building the First Fully Electric U.S. Tugboat
Crowley is currently developing the nation’s first all-electric powered harbor tugboat, called eWolf. Compared to a conventional tug, eWolf will emit 178 tons less of nitrogen oxide (NOx), 2.5 tons less of diesel particulate matter, and 3,100 tons less of carbon dioxide (CO2) in just the first 10 years of its operation.
Partnering for Progress
Developing the Nation’s Largest LNG Bunker Barge
Crowley entered into a Time Charter Party Agreement with Shell North America LNG, LLC, (“SNALNG”) to build a new LNG bunker barge, to be built by Fincantieri Marine Group, operated by Crowley and time chartered out to SNALNG, which will be the largest Jones Act-compliant vessel of its kind. We expect to deploy the bunker barge, which will operate along the east coast of the U.S., in 2024.
Transporting Sustainable Aviation Fuel (SAF)
In partnership with Neste, a leader in sustainable aviation fuel (SAF) development, we transported the company’s first shipment of SAF from Texas to California in an upgraded product tanker ship previously used to transport traditional petroleum products. Unlike typical crude oil, SAF is sustainably sourced from 100% renewable waste and residue materials, including cooking oil and animal fats.
Expanding Access to Jones Act-Compliant Vessels
Through a partnership with Danish shipping company ESVAGT, we will work to develop a best-in-class design and deliver our first U.S. flag Service Operation Vessel (SOV) dedicated to offshore wind. The vessel will be specifically designed to safely carry technicians and equipment from the shore to offshore wind installations to perform construction, maintenance, and repairs.
Training the Next Generation of Offshore Wind Leaders
Crowley and our industry partners are joining forces to create a first-of-its-kind training and workforce development program specifically focused on the New England region’s offshore wind energy industry, starting at the Massachusetts Maritime Academy (MMA). The academy will coordinate with RelyOn Nutec, the world’s largest provider of specialized instruction for energy and industrial sectors, to deliver the courses. The program will be certified by the Global Wind Organisation (GWO), a non-profit that sets international standards for safety training.
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Click below to download our 2021 sustainability report and ESG disclosures.