A former ESG leader at a standstill
Before CMB took control of Euronav in October 2023, the company was the uncontested ESG leader in the listed tanker market, with clear milestones along its path to net zero in 2050. Its pioneering sustainability strategy and ambitious targets were praised by independent ESG rating agencies.
A big step backwards
By contrast, CMB.TECH (formerly Euronav) has seen a recent drop in ESG ratings, representing a significant fall from grace. Its new "strategy” contradicts the Saverys’ publicly stated claims to make CMB.TECH the “global benchmark of sustainable shipping.” For example:
Sustainalytics now rates CMB.TECH as high risk from an ESG perspective, with a score of 30. Under previous leadership the company was categorized as medium risk.
CMB.TECH’s slump in the 2024 Webber ESG Scorecard by 11 places – more than any other publicly listed ship owner. The report raises questions about its technology and governance practices.
Conversely, before Euronav came under the control of the Saverys family, it was the highest performing company in the sector with respect to ESG ratings. Both Sustainalytics and MSCI ESG Ratings ranked Euronav as Tier 1, outperforming its peer group.
Valuation in question?
CMB.TECH’s valuation is largely predicated on hydrogen and ammonia being the future of shipping. However, several industry and sustainable fuel experts question the viability of hydrogen & ammonia, noting safety concerns and a lack of regulation from the International Maritime Organization (IMO).
While ammonia and hydrogen may have been seen as potential future propulsion technologies in the past, the industry is now focused on decarbonizing fleets using liquified natural gas (LNG).
As early as late 2022, Euronav’s supervisory board had voted against a merger with CMB.TECH, stating a strategic misalignment and governance concerns. The board had pointed out that the technologies CMB.TECH was betting on had no clear future viability and a highly uncertain timeline to realization.