At Riviera’s Tanker Shipping & Trade, Europe virtual conference session on ESG & finance, held on November 16th, 2020, Karatzas Marine Advisors & Co chief executive Basil Karatzas forecasted a future where banks prefer lending to the bigger names in the sector to limit their risk
Investment bank Jefferies senior vice president equity research Randy Giveans emphasised the likelihood that banks will be cautious and lend to bigger names and added that cost will continue to be the “driving force” in a strong market.
However, he noted that there is a clear interest in environmental, social and governance (ESG)-rated companies, even from Western European banks whose funding to shipping has shrunk over the last few years.
Vortexa freight analyst Arthur Richter said that ESG financing will fundamentally place new emphasis on data reporting. If access to capital is to be linked to transparency in reporting, loans will require data, he said.
Macquarie Asset Management senior shipping industry advisor Morten Arntzen said Macquarie believes that IMO’s decarbonisation goals can only be achieved if cargo interests make a commitment to shipowner profitability over the coming decades.
Coverage of the Session can be on Riviera's website at "Tanker finance: large operators better positioned to secure future funding"
SESSION 2: ESG & FINANCE
Accelerating market forces and regulation mean tanker owners and operators face ever greater scrutiny of their environmental, social and governmental approach. How will tanker owners fund these new and multiplying requirements?
15:15 Finance as a driver of change: the rise of ESG investing
* Does the rise of ESG mean owners will compete on factors others then cost
* Do investors enjoy higher returns by favouring firms with higher ESG ratings
Randy Giveans, Senior Vice President, Equity Research, Jefferies
15:25 Meaningful data reporting
* How the rise of ESG places a new emphasis on meaningful data reporting
* Digitalised chartering: uptake and prospects assessed
Arthur Richier, Senior Freight Analyst, Vortexa
15:35 DEBATE: How will tanker owners bridge the funding gap required to solve the “trillion dollar” question on shipping emissions
Representatives from the world of finance, regulation, tanker ownership and chartering will present their perspectives on the estimated “trillion dollar” cost of meeting environmental legislation
* Do bankers have the appetite, and is affordable financing available?
* Where will the financing come from – traditional markets or other sectors?
Randy Giveans, Senior Vice President, Equity Research, Jefferies
Morten Arntzen, Senior Shipping Industry Advisor, Macquarie Asset Management
Basil Karatzas, CEO, Karatzas Marine Advisors & Co.
George Plevrakis, Director, Global Sustainability, ABS
Arthur Richier, Senior Freight Analyst, Vortexa
16:15 Live Q&A session - ask the experts
Your opportunity to question the speakers and get answers to those vital issues which will help drive your business forward. You can also post questions throughout the session for the moderator to ask on your behalf.
16:45 Closing remarks by conference chairman
Edwin Lampert, Executive Editor & Head of Business Relations, Riviera Maritime Media
16:50 Close of conference day one
The presentation by Basil Karatzas at the conference can be seen herebellow:
