Gearbulk Integrated Report 2023 - Report - Page 48
GEARBULK
TOP 10
RISKS
OUR STRATEGIC PILLARS
ENABLE the green, blue and
DEVELOP our organization
circular economies
and human capital
TRANSFORM our business
SUSTAIN our business for
through innovation
the future
1 CLIMATE CHANGE
2 FREIGHT RISK
Risk Description
Regulatory requirements together with
decarbonisation becoming a critical topic
across all industries, Gearbulk’s operations
could be affected if action is not taken
across the supply chain.
The freight market can be extremely
volatile and can impact the Group’s
overall pro昀椀tability and earnings to a
large extent.
Impact on value
High emissions generated from our organisation has a direct impact on non-compliance, reputational damage due to pollution
and additional costs such as taxes impacting
our value.
Operational losses impact value as
earning are not su昀케cient to cover operational costs incurred.
A joint performance team has been set up
with our Joint Ventures to drive decarbonisation on the vessels . Various fuel types
have been considered and a decarbonisation roadmap with target setting is work
in progress.
The business model of Gearbulk together
with hedging and targets on operational
costs supports the organisation to at
least achieve break even rates.
By actively addressing climate change risk,
Gearbulk can unlock numerous opportunities for business growth, resilience, that
in turns as a positive impact on the environment and society. These opportunities
include but are not limited to cost savings,
access to funding, reputational enhancement and innovation and collaboration.
Freight risk presents numerous opportunities to improve our operational e昀케ciency, reduce costs, enhance partnership opportunities, and position ourself
for sustainable growth in the competitive
industry we operate in.
Capitals impacted
Mitigation strategies
Strategic pilar
Opportunities
48
PART 2 – OUR BUSINESS IN CONTEXT
