Background and challenge

The client is one of the world’s largest independent containership owners and managers, operating a global fleet primarily chartered to major liner companies. Over the years, their ESG strategy evolved from basic reporting and governance into a more commercially integrated sustainability model, and as stakeholder and investor expectations grew, so did the need for independent assurance of its environmental performance data.

Environmental KPIs were being collected across a large and diverse fleet, with data originating from multiple systems and stakeholders operating with varying levels of control and standardisation. This created challenges in ensuring consistency, accuracy and traceability across reported metrics. There was also a need to establish clear audit trails for emissions and fuel data, while aligning reported metrics with recognised reporting frameworks and assurance requirements.

Solution

Lloyd’s Register (LR) Advisory carried out a comprehensive Environmental and Social Due Diligence (ESDD) benchmarked against International Finance Corporation (IFC) Performance Standards, covering key environmental and social aspects across the client’s operations. The scope combined a structured gap assessment against IFC requirements with a risk-based evaluation of existing practices, resulting in the development of a prioritised Environmental & Social Action Plan (ESAP).

This was delivered using established assurance methodologies aligned with international standards, providing a clear basis for demonstrating alignment with lender expectations while ensuring that required improvements remained practical and grounded in operational reality.

Approach taken

The work began with a structured review of environmental and social performance across the organisation, considering both policy-level alignment and how those policies translated into operational practice, including examining environmental and social factors across operations.

This was supported by LR Advisory’s expertise in environmental data assurance and International Standard on Assurance Engagements 3000 (ISAE 3000), alongside a practical, risk-based verification approach applied to maritime emissions and fuel data systems.

These findings were then benchmarked against IFC Performance Standards to determine how existing practices compared, and to identify areas where they were not fully met. Throughout the process, engagement with internal stakeholders was used to validate findings and ensure that any recommended actions could be implemented within existing operational constraints. The outcome of this process was consolidated into a prioritised ESAP, setting out clearly defined actions, responsibilities and timelines to support implementation.

Key activities & outputs

  • Defined assurance scope covering key environmental KPIs and reporting boundaries
  • Reviewed methodologies for emissions calculations and fuel consumption reporting
  • Assessed data management systems and internal controls
  • Conducted sample-based testing and data traceability checks from source (e.g. vessel logs, bunker data) to reported figures
  • Validated consistency of assumptions, emission factors and calculations
  • Identified discrepancies, gaps and areas for improvement
  • Provided practical recommendations to strengthen data processes and controls
  • Issued an independent assurance statement on environmental KPIs.

Key client benefits

  • Increased confidence in reported environmental performance
  • Improved accuracy and consistency of emissions and fuel data
  • Stronger data management processes and internal controls
  • Enhanced alignment with stakeholder and investor expectations
  • Reduced risk of misreporting and associated reputational exposure
  • More efficient data handling across vessel and onshore teams
  • Established a repeatable approach for future assurance cycles

Project outcome

The engagement established a structured assessment of environmental and social performance against IFC Performance Standards, supported by a prioritised ESAP that defines the actions required to address identified gaps within an operational context.

Impact on client's business and operations

Environmental performance data became more reliable and transparent, with improved alignment between technical, fleet and corporate teams responsible for KPI reporting. Internal governance around environmental data management was strengthened, supporting more consistent reporting practices. The work also positioned the client to meet future regulatory and assurance requirements.

Conclusion

LR Advisory supported the client in strengthening the credibility and robustness of its environmental disclosures through independent KPI assurance.This engagement highlights LR Advisory’s ability to deliver focused, highquality assurance that both validates reported data and improves the systems and processes behind it.