Sustainability
Report 2022
Supporting a sustainable futurein the maritime industry

COLLECTIVELYSTRONGERThe International Group of P&I Clubs (the “Group”)
is a collective of 13 competing not-for-profit mutual
insurance associations known as P&I clubs (the“Group Clubs”). The Group Clubs insure third-party
liabilities arising from the operation of vessels in the
global commercial shipping sector. As a collective,
the Group Clubs share and reinsure the largest claims
arising from shipping incidents.

Over

2.4

%

90

%

of global trade
is ocean-goingof global greenhousegas emissions result
from shipping[Clarksons Research]

90
11.9

bn

of the world’s oceangoing tonnage insured
with Group Clubs(circa 65,000 vessels)

tonnes of cargo
carried by sea
in 2021

Over

$3

bn

of insurance cover per
ship per incident throughthe Group’s reinsurance
programme(oil pollution $1 billion)

The Group gives shipowners a unified voice oncompensation and liability issues. We also workwith other stakeholders to help raise vessel standards,
advance the safety of life at sea and shareknowledge to reduce the frequency and impact ofmaritime incidents.
For over a century, since the time of sail andsteam, the Group has facilitated global trade, andin doing so has helped to ensure a safe, sustainableshipping industry. The Group continues to be fullycommitted to this important role. However, our world
faces new and accelerating challenges affecting
climate, resources and society, to which governments,
industry organisations and communities are
responding.
Each of the Group Clubs has its own sustainability
priorities and initiatives. The value of the Group liesin the collaboration between these Clubs who,
together, share a common ambition and purpose.
We are collectively stronger, and the action we take
together as a Group has a unique and significant
impact on the global maritime sector.

%

The Global Picture

In this report, we will explore how theGroup’s role and current activities align withand support the United Nations Sustainable
Development Goals (UN SDGs). Much of thework that the Group does as a collective
is inherently aligned with the ambitions of
the UN’s SDGs. However, the Group’s role atthe heart of global trade provides us withboth the opportunity and responsibility to
do more. We are seeking to build on our
positive impact and support shipowners intheir work towards a sustainable future.
Further information about the Group canbe found here.

INTRODUCTION
Shipping underpins global
trade in a world that ismore connected thanever, and our industry has
a responsibility to makea positive contribution tosustainability objectives.
The spotlight on thesustainability of the shipping
industry and the increasing
expectations of all of our
stakeholders have only
reinforced the importanceof understanding our
impact and our potential,
and sustainability therefore
lies at the heart of theGroup’s agenda.

Supporting asustainable
futureThe maritime industry’s moveto meet ambitious targets
concerning the reduction ofgreenhouse gas emissions
from shipping is vital. Of course,
sustainability is a much broader
concept. It incorporates
our wider impact on theenvironment (environmental),
our relationship with people(social) and the resilienceof our systems (governance)(ESG). This report explains how
the Group understands ESG in
the context of its activities andwhere it contributes to a moresustainable shipping industry.
As a collective of not-for-profit mutualindemnity insurers, the Group’s role isto support the owners of 65,000 vessels
trading around the world. When losses
and damage follow from catastrophic

maritime disasters, the Group’s claims
sharing arrangement and collective
reinsurance create a robust system that
ensures that financial security is in place
for response activities aimed at reducing
the impact of such maritime casualties,
including the clean-up of pollution in themarine environment and compensation
for those who suffer losses.

Finally, we strongly believe that quality
education and life-long learning
opportunities are enablers of sustainable
development. We are proud of theGroup’s education initiatives, including
our P&I Qualification, our partnership with
the World Maritime University and theFellowship we established for 2021/22 at
the International Maritime Law Institute.

We bring together the knowledge andexpertise of our 13 Group Clubs with thegoal of reducing risk and making themaritime industry safer. We also act asa single voice for shipowners to engage
with governments, legislators andmaritime regulators around the world on
matters relating to shipowners’ liabilities.
In doing so, we assist in the development
and promotion of international regulatory
frameworks that ensure an appropriate
practical response to marine casualties
and pollution, as well as certainty in thelegal liabilities that follow.

Our platform, as P&I insurers for 90%of the world’s fleet, puts us in a strong
position to understand the drivers ofchange and to support the industry inmeeting the IMO’s environmental targets
as well as wider ESG aspirations that will
make our industry more sustainable.

Paul Jennings
Chairman of the Group
Nick Shaw
Chief Executive Officer of the GroupOUR
PROCESSThe UN SDGs are 17 areasof focus which set the global
agenda for collective action
towards a sustainable future.
We used the UN SDGs as aframework to understand where
we already deliver a positive
impact and where we cando more.

Delivering
global impacts
We are committed to effecting positive outcomesin five areas of activity, which are exploredfurther in this report.

Healthier marine
environments
We support and provide
financial security for response
activities aimed at reducing
the impact of significant
maritime casualties andthe restoration of healthymarine environments.

The actions we take as a Group
were distilled into the following
primary impact areas:• response to large maritime
incidents;• safety agenda; and• collective voice within the
shipping industry on liability issues
and our role as a responsible
partner to other stakeholders in
the global supply chain.

We are supporting
shipowners in the movetowards a cleaner energy
and low-carbon future.

Promoting seafarer wellbeing and safety worldwide.

Advancing knowledge andunderstanding of the maritime
P&I industry to all.

All 13 Group Clubs contributed
to the mapping of the Group’s
existing activities within the
UN SDG framework.

• claims sharing (pooling) andreinsurance arrangements;

CleanerenergyFrom these core Group activities,
eight UN SDGs were identified as
the principal areas in which theGroup’s collective action delivers
a positive impact:

Partnershipfor the goals
We engage with the International
Maritime Organization (IMO) –the global regulator for shipping– and collaborate with maritime
agencies and industry bodies
around the globe to assist in theimplementation of sustainable
initiatives and frameworks.

Training askilled workforce
We are advancing
knowledge andunderstanding of themaritime industry amongst
our stakeholders.

A commitment to understanding
and, where possible, supportingnew technology to help
shipowners decarbonise.

Saferenvironments
We are working to help
create safer environments
for seafarers and to reduce
the number of accidents
at sea.

Promoting safe working
conditions, supporting skills for
productive employment andglobal economic relationships.
Providing robust and resilient
liability cover for the world’s
trading fleet.

Preventing and responding tocasualties that threaten themarine environment, including
ship-sourced pollution.
Prioritising the implementationof fair and transparent
frameworks for liability andcompensation.

Working with governments,
legislators, maritime regulators,
industry associations andreinsurers to promotesustainable outcomes.

This impact area is aligned to UN SDG 14: Life below
water, which seeks to “conserve and sustainably
use the oceans, seas and marine resources.”

Environmental
monitoring

Healthier marine
environments
We support and provide financial security for
response activities aimed at reducing theimpact of significant maritime casualties andthe restoration of healthy marine environments.
The consequences of maritime accidents can be verysignificant from a human, environmental and financial
perspective. These consequences have become more
complex to address as vessel sizes, as well as consciousness ofsocial and environmental drivers, have increased.
The Group’s role in sharing (pooling) claims and collectively
arranging reinsurance for the largest maritime claims meansthat shipowners have cover which is exceptionally high inlimit and broad in scope. The Group and the Group Clubs all
operate on a not-for-profit mutual basis and the Group’s claims
sharing and reinsurance arrangements have adapted to theneeds of shipowners and society at large over time.
Between 1990 and 2022, the limit on the reinsurance coverunder these arrangements has increased from $1.25bn to$3.1bn (separate oil pollution limits have similarly increased
from $500m to $1bn).

Death andpersonal
injury claims
The Group reinsurance programme,
together with the unrivalled high levelsof cover that it provides, ensures thatshipowners who are entered with aGroup Club are able to meet the very
substantial liabilities that can arisein the event of a serious maritime
casualty. This, in turn, ensures thatfair and sufficient compensation isavailable to the third-parties who suffer
loss as a result of such incidents andthat sufficient resources exist to help
restore heathy marine environments.
Further information about the Group’s
claims sharing and reinsurance
arrangements can be found here.

Site
restoration

Types of P&I
claims that
may arise froma casualty

Pollution
prevention

Disposal ofwaste fromwreck / cargo

Cargo damage,recovery andclean-up

Pollutionclean-up
Wreckmonitoring
and removal

GROUP CLAIMS ANDREINSURANCE ARRANGEMENT
IN MARINE P&I CLAIMSCOLLECTIVELEARNING$10m

The Group provides a forum in which theGroup Clubs that have handled casualties
can come together to learn lessons fromincidents and spot trends.

IndividualGroup ClubThe Group prepares a Casualty Review every three
years in which the largest and most challenging
wreck removal incidents are analysed.
In 2021, the Group, alongside industry stakeholders,
supported and funded an independent investigation
into a specific issue that had been identified
concerning delays in signing salvage contracts
and the potential for this to increase risks to the livesof crew or passengers as well as the environment
in emergency casualty situations. A report will be
published during the course of 2022 which should
help address the delay issue and find ways to protect
lives and the marine environment by ensuring thisis not a stumbling block to a prompt and effective
maritime incident response.
Regrouping helps us to build expertise which
can prevent losses or improve the Group Clubs’
responses to casualties. It also provides the basis for
us to have meaningful engagement with maritime
administrations and other industry stakeholders.

$100m
Claims sharing
arrangements between
the Group Clubs

Collectively stronger:
It is only together that Group
Clubs have the means to respondto the very largest casualties. As acollective, we learn from our experiences so that we can preventor better respond to casualties in
the future.

$3bn

Cover from ourreinsurance partners

CASE STUDY:RAPID RESPONSE AND
ENVIRONMENTAL RESTORATIONOn 5 October 2011, the container ship, Rena, ran agroundon the Astrolabe Reef (Ōtāiti), 12 nautical miles offshore
from Tauranga, New Zealand. The Astrolabe Reef is locallydesignated as an area of outstanding natural characterand has cultural value to the indigenous Māori population.
As a result of the grounding, heavy fueloil spilled into the sea and a number ofcontainers were lost overboard. Later,
the ship broke in half with one section
sinking in the deeper water adjacentto the reef, whilst the other remained
lodged on Astrolabe.

Images © rena@visionmedia.co.nz

A casualty of this magnitude requires
the Club in question to call upon theGroup’s claims sharing “pool”, andassociated reinsurance, to support theprovision of the significant financial
resources required to address theimmediate impact of the casualty andthe subsequent legal liabilities. It is withthe strength afforded by the Groupsystem that the relevant Club was able
to respond to the multitude of issues
that the casualty raised.
Upon notification of the casualty, salvors
were promptly engaged. Fuel oil was
pumped from the wreck to prevent
further pollution, and a ship was engaged
to search and recover lost containers.
An oil spill response team was mobilised,supported by volunteers, to clean oily
waste from the coastline as well as toattend to penguins and beach-nesting
birds impacted by the oil spill.

An environmental recovery plan wasdeveloped in collaboration with thelocal government and indigenous Māori
representatives. A detailed salvage andwreck removal operation recovered
significant amounts of debris from theseabed. Permission was later granted
to leave what remained of both theship and cargo on and around the reef.
Further wreck removal operations could
have caused greater damage to thereef and also carried personal risk to thesalvors. The most dangerous pollutantsfrom the fuel and cargo were removed.
Possible pollutants like copper andtributyltin (TBT) from the antifouling paintwere monitored.
To mitigate the impact of leaving
the wreck in situ, it was agreed thatenvironmental monitoring would
take place until December 2027.

An independent
report commissioned
by New Zealand’s
Transport Ministerhighlighted that:Environmental monitoring to dateindicates that the marine ecosystem
is recovering, with the potential for the
wreck to have a positive impact on
certain marine habitats. In a dive in
December 2020, divers reported thatthe wreck had become a thriving kelp
forest and that various types of rays
(believed to have cultural significanceto the health of the reef) had returned to
Astrolabe.
Despite the sector’s efforts to prevent
losses, significant maritime casualties
can and do still occur. It is only together
that the Group Clubs have the means
to respond to the very largest casualties.
It is as a collective that the Group Clubs
have access to the widest scope ofexperience and expertise needed torespond to such incidents around theworld and to learn from and develop
appropriate strategic responses.

“The reviewer finds that the response teamovercame initial hurdles to set up a strong andeffective team that worked closely with the local
community. The response minimized the risks
to wildlife and achieved a high quality, worldclass clean… The generally positive results of
the Rena Recovery Plan’s scientific monitoring
program support this finding.”

This impact area is aligned to UN SDGs 3 and 8, which,
together, seek to ensure healthy lives, to promote
well-being and education, and to provide full andproductive employment and decent work for all.

General cargo ships
4.83%

2.24%

Specialised Cargo Ships

Saferenvironments
We are working to help create safer environments for seafarers
and to reduce the number of accidents at sea.
The Group works collaboratively witha wide range of industry bodies,governments and NGOs, and in the
IMO, to gather and share knowledge.
This improves safety standards, helping
to provide safer environments for
seafarers and reducing the number ofincidents at sea. This work forms part ofthe larger drive by the maritime industry
to constantly improve the operating
environment in all areas, including vessel
design, operational standards, insurance
provisions and regulatory oversight.

COVID-19
The Group works closely with its
governmental and industry partners
to help improve conditions on board
for seafarers. This has never been more
important than during the ongoing
COVID-19 pandemic. These arechallenging times for the maritime
industry and seafarers in particular. The
Group has worked with industry partners
to improve access to vaccinations for
seafarers and has supported the various
industry wide and IMO calls to classify
seafarers as key workers.
In order to assist those affected bymeasures introduced at ports andcountries across the globe to prevent thefurther spread of COVID-19, the Groupalso launched an online digital tool toprovide access to relevant information
about the current situation in individual
countries. This dashboard tool was
made publicly available and allowed
the maritime sector to track country
and port specific advice, detailing themeasures being put in place in responseto the COVID-19 pandemic.

The comparative detention
rates for Group and non-Group
insured tonnage can be seen
in 2020 data published by
Equasis and which highlights
the percentage of ships
detained by Port State Control inconnection with safety, health orenvironmental deficiencies:1

1.73%

Group

3.27%

non-Group

Container Ships
1.22%

2.97%
Ro-Ro Cargo Ships

1.45%

8.55%
Bulk Carriers

2.03%

3.64%
Oil and Chemical Tankers

0.94%

4.70%
Gas Tankers

0.56%

1.2%
Other Tankers

2.36%

Collectively stronger:
Learning from experience
Since all 13 Group Clubs sharemutual risks, a large claim forone can result in a large claim
for all. All Clubs therefore ensure
they share and learn from theunparalleled depth and range ofloss prevention knowledge.

22.22%
Passenger Ships

0.83%

9.57%
Offshore Vessels

0.94%

4.11%
Service Ships

0.51%

3.51%
Tugs

0%

16.67%
Fishing Vessels

0%

6.98%
Total

1.62%

4.71%

1

Equasis 2020; GT>500; Detentions in Paris MoU,
Tokyo MoU, IO MoU, USCG, VDM and Med MoU
divided by total number of inspections.

Working together to drive
safety standards
The Group Clubs collectively andindividually play an integral role in
influencing safety standards across thesector. The Group Clubs, and the local
correspondents and experts that they
instruct, are very often early responders
to a shipping incident, whether amajor grounding, oil spill or the total
loss of a vessel. The Group participatesin cross-industry safety initiatives,and collaborates with international
institutions, to ensure that emerging
risks and trends are identified, and thatlessons are learned. It also reviews issues
relating to vessels, crews, cargoes,trading areas and other matters, and via
the Group Clubs often notifies shipowners
with recommendations for action.
As well as sharing safety-related dataand providing guidance on preventing
losses, through the Group, the Clubs alsocollectively adopt a minimum standard
for ship surveys which assists to maintainthe quality of shipping and the safety ofseafarers on board.

Looking ahead
The Group recognises that it can do more
to help improve safety standards at sea
and protect the marine environment,
within the context of its claims sharing
arrangements, through greater sharing
of insights based on analysis of data,
and by taking a more evidence-based
approach to loss prevention strategies.
We have initiated a project of enhanced
data analysis amongst Group Clubs forsuch purposes.
These steps may also provide thecommercial shipping industry with astronger foundation from which to help
shape future regulatory measures forthe maritime sector.

CASE STUDY:MINIMISING LOSS OF LIFE AT SEA
Between 2011 and 2020, at least 34 bulk carriers werelost at sea, at a cost of 128 lives.2 Vessels capsizing
due to cargo liquefaction – where vibrations transform
solid cargoes with high moisture content into a fluid
state – account for almost half of those deaths.
Lessons learned and the sharedexperience of such losses have allowed
us to promote initiatives aimed at safetyof life at sea and effective casualty
response. This has included targeted
advice for the carriage of certain bulk
cargoes by sea. For example, we haveengaged the international regulatory
body (IMO), shippers, mining companies,
port authorities and governments acrossthe globe – including onsite visits to Brazil,
Indonesia, Malaysia, Philippines - toseek to ensure that the necessary safe
carriage requirements and oversightare in place to reduce the risk of cargoliquefaction and loss of life at sea.
However, there is no room forcomplacency. Seafarer safety remains
one of our key priorities, and we willcontinue to participate in a sectorwide focus on safety awareness andunderstanding.

2Intercargo Bulk Carrier Casualty Report Years 2011
to 2020 casualties and trends

This impact area is aligned to four
UN SDGs, which, together, seek
to promote economic growthand decent work for all, build
resilient infrastructure and foster
innovation, build accountable
and inclusive institutions, andrevitalize global partnerships forsustainable development.

Over 40 partnership
events, including throughthe IMO’s Integrated
Technical Cooperation
Programme, in over 70
countries since 2015.

22 of the largest 25
global reinsurers
participate on
our reinsurance
programme.

Partnershipfor the goals
We are partnering with other stakeholders
to implement and maintain sustainable
initiatives and efficient frameworks in themaritime community.
Building efficient and resilient frameworks and effecting
meaningful progress in the industry requires different
sectors and actors to work together. The Group
collaborates to mobilise and share knowledge, expertiseand resources to support sustainable initiatives andframeworks.
The Group’s system requires a delicate balance
between the continued confidence of governments
and regulators on the one hand and the reinsurance
markets on the other. A unified global regulatory
framework and adherence to international rules andregulations underpin these relationships.

A leading voice
Our consultative status at theInternational Maritime Organization(IMO) allows the Group to speak forthe commercial shipping and marine
insurance industries on liability andcompensation issues, together with theInternational Chamber of Shipping andother industry bodies, including providing
expert industry advice and experienceon the development of legislation thatseeks to make the oceans clean andsafe when maritime casualties and shipsourced pollution occur. The collective
financial strength of the Group systemenables shipowners, and supports
states, to meet the obligations set out

in international treaties on liability andcompensation. This financial strength
underpins the treaties and, through an
extensive certification regime establishedby the Group, allows shipowners andstates to operate in the knowledge
that insurance cover is in place inthe event of ship-sourced pollution
damage. The strength of this systemmeans that fair and due compensation
can be paid to those who suffer losses
as a result of maritime incidents. It also
facilitates capacity building activities
that strengthen and maintain states’
capabilities to minimise the impacts ofmaritime incidents on the environmentand coastal communities.

Over 50 first responders
worldwide engaged
with the Group to ensure
contracts and insurance
arrangements are inplace to respond to shipsourced pollution of themarine environment.

12 memoranda ofunderstanding signedwith international
maritime authorities
spanning fourcontinents, with ongoing
discussions with more.

Outreach
We collaborate with maritime administrations
worldwide to provide training and help countries build
readiness to deal with serious maritime incidents.
Ship-sourced pollution incidents

Significant maritime casualties

We participate in cooperative initiatives
with the UN and inter-governmental
agencies – specifically the IMO and theInternational Oil Pollution Compensation(IOPC) Funds – to help countries build
their readiness and ability to deal withship-sourced pollution incidents.

Significant casualties are, thankfully,
relatively rare and not all states haverecent experience of a large-scale
maritime incident. We establish lines ofcommunications and share the lessons
that the Group, as a collective, haslearned about casualty management
and preparation. We seek to ensurethat states have appropriate legal
frameworks to address large casualties.
In some cases, we enter into amemorandum of understanding (MoU)
to formalise our common understanding
and ongoing relationship with relevant
maritime administrations.

We are an active partner of the IMO’s
Integrated Technical Co-operation
Programme (ITCP). The ITCP aims toassist countries to strengthen theircapacities for uniform compliancewith the IMO’s regulatory framework.
In the last five years, we have actively
assisted over 70 countries through ourpartnerships with ITCP and the IOPC
Funds as well as through our own
initiatives. Many of these nations areleast developed countries (LDCs) andsmall island developing states (SIDS).
This ultimately leads to enhanced
environmental protection in theevent of ship-sourced pollution. It
also ensures that there are statutory
systems in place for compensation andenvironmental restoration in the eventof damage occurring.

CASE STUDY:PROMOTING EQUAL UNDERSTANDING
OF OIL SPILL LEGISLATION
Due to increased safety standards and regulatory oversight, large
ship-sourced oil spills are now rare occurrences. Nonetheless,
we recognise the importance of objective guidance on theregulatory framework and clear procedures for cost recovery
when loss and damage occur following ship-sourced oil pollution.
Most coastal states around the world(102 states covering over 95% of theworld’s ocean-going tonnage) have
implemented an IMO treaty thatgoverns compensation in the eventof pollution damage from ship’s fueloil (when used for the operation andpropulsion of the ship). However,there is a lack of internationallyrecognised guidance for those who
suffer loss or damage in the event ofsuch an occurrence.
Given the long-standing existence andapplication of guidance for those who
suffer loss or pollution damage frompersistent oil carried as cargo by sea,

we have initiated discussions with ourpartners in the IMO to develop similar
guidance that will apply a consistentand uniform approach across the globe
to the treatment of claims for those
who experience loss or damage fromship’s fuel oil. Without this guidance,states may be at a disadvantage whencontingency planning for maritime
incidents, and claimants may bedisadvantaged in seeking recompense
for their losses. We will continue to beat the forefront, seeking to ensure thatclear and objective guidance is in place
for those who suffer damage from shipsourced oil spills.

First responder
organisations

Image © ITOPF

The Group engages regularly with local,
first responder organisations across theglobe to seek to ensure that appropriate
contract and insurance arrangements
are in place so that a rapid response canbe undertaken to clean up ship-sourced
pollution of the marine environment.
This requires up-to-date response
capabilities and timely responses
to maritime incidents through themobilisation of specialist clean up
resources.

Collectively stronger:
One industry voice
The Group speaks for 13 Clubs and 90%of the world’s fleet by tonnage on issues
relating to liability and compensation.
Having one industry voice gives theGroup a platform to partner at thehighest levels and to effect meaningfulchange in the industry and the global
regulatory framework in these areas.

The Group and the Group Clubs also
engage with ITOPF, a not-for-profit expert
body funded in part by the Group Clubs
on behalf of their shipowner members
through insurance premiums. ITOPF is
the world’s pre-eminent ship-sourced
pollution response adviser. It provides
a trusted source of objective technicaladvice and education for Clubs,
shipowners and governments on shipsourced spills. Through the promotion ofeffective, timely and efficient responses
to incidents, adverse impacts on themarine environment and coastal
communities are reduced.

P&I correspondents
When incidents or casualties occur, inorder to ensure direct and immediate
assistance to shipowners enteredwith Group Clubs, Group Clubs liston their websites a wide networkof “correspondents” in major ports
around the world. Correspondents are
independent advisors appointed by
the shipowner, and the Group has arole in coordinating their educationand training and providing guidelines
to ensure the quality of correspondent
services. In addition, the Group works
with correspondents to help with its
outreach activities with maritime
administrations.

Communication withreinsurance markets
The Group places one of the largest
reinsurance contracts in the world,which helps to underpin global trade.
The stability of the Group’s systemdepends on the continued support of,and partnership with, the reinsurance
markets, and their confidence in theregulatory framework that will apply
in the event of a significant maritime
incident. Shipping is inherently
international in nature and the adoptionof regulatory frameworks at the global
level increases certainty and stability. This
allows all parties in the insurance chain
to plan responsibly and provide maritime
liability cover that is sustainable in nature.
We use our single industry voice tomaintain an open dialogue with ourreinsurers in connection with the largest
claims and industry issues that may
affect P&I coverage. In this way, we
maintain the trust necessary for oursystem of claims sharing and reinsurance
to be effective.

This impact area is aligned to UN SDG 7, whichseeks to “ensure access to affordable, reliable,
sustainable and modern energy for all”.

CleanerenergyCollectively stronger:
Supporting shipowners
through the fuel transition
Together we can adopt an
inclusive approach to poolingthat will support all shipowners
through the fuel transition.

2.4%
Shipping is responsiblefor 2.4% of global
carbon emissions.
[Clarksons Research]

R&D

Seeking a low-carbon future.
International shipping should be regulated at the global
level by the IMO. There is no more important, nor truly global
issue on the agenda for the IMO at present than phasingout Greenhouse Gas (GHG) emissions from shipping, and lastyear marked the end of a decade of action by the IMO andthe adoption of a new set of mandatory energy-efficiency
measures for the existing fleet. Shipping is responsible for2.4% of global GHG emissions and, whilst shipping is the mostefficient form of commercial transport from an emissions
perspective, the IMO has recognised the need for urgent
action to decarbonise the shipping sector. The Group
recognises that it has a role to play in supporting shipowners
within the framework of the IMO discussions. The Groupsupports the view that, at current rates of production, zerocarbon fuels are not presently available at sufficient scale,either physically or commercially, in a sustainable way forthe global fleet. The Group considers that further significant
research is necessary to accelerate the development of zerocarbon technologies, so that the existing IMO GHG emissions
goals can be achieved.

The Group also recognises the role thatits claims sharing (pooling) arrangements
and reinsurance programme can playin facilitating industry’s transition to low
or zero-carbon fuels. The Group Clubs
have historically sought to meet andsupport the needs of shipowners byadapting to changing demands forliability cover and adopting an inclusive
approach to cover within the mutual
system, with a key objective being how
to pool claims arising from particular
types of vessels and/or activities. The
same approach to pooling will apply to
any changing needs from low or zerocarbon fuels and associated P&I risk. The
Group will also participate in an industrywide alternative fuels working group in
its efforts to understand the availability,
practicality and implications of moving
to the use of such fuels.

R&D investment and sharingof knowledge is vital toprogress to decarbonise
the shipping industry.

CO2
Shipping is the most efficient
form of commercial transport
in terms of CO2 emissions per
tonne of cargo transported one
mile, but action is still required.

90%
Taking into account trade growth,shipping will need to improve its
carbon efficiency by 90% in orderto reach present IMO targets
to reduce emissions by 50%
compared with 2008 levels by 2050.
[ICS]

This impact area is aligned to UN SDGs 4 and 8, which,
together, seek to ensure and promote inclusive,
quality education, lifelong learning opportunities,
productive employment, and decent work for all.

P&I Qualification

Skilled workforce

10
Running for
10 years

We are advancing knowledge andunderstanding of the maritime industry.
Our industry relies on its people. We are committed tosupporting quality training and development globally. Quality
education is a key enabler for sustainable development.

4000+

A key qualification
We established the P&I Qualification (P&IQ) in 2010. The P&IQ
is comprised of eight modules each subject to a rigorous
exam. The early modules cover the shipping business, the P&I
industry, underwriting, claims handling and loss prevention.
The later modules look in detail at specific P&I risks, e.g.,
people or cargo.
We created and regularly review the learning materials foreach module as well as coordinating the twice-annual
examination process. Formalising learning through the P&IQ
raises standards across a broad spectrum of our stakeholders.
P&IQ exams are open to everyone and are widely takenby those working in Group Clubs. However, the Group iscommitted to promoting the P&IQ to the broadest possible
range of stakeholders and has seen increasing uptake byseafarers and others engaged in the maritime sector aroundthe world, particularly Club correspondents.

Over 4000
exams taken

Collectively stronger:
Bringing together our
knowledge and resources
By pooling knowledge andresources from all Group Clubs,
we can contribute to wider
and better education acrossthe industry.

“Wherever a P&I incident occurs,
clubs and owners look to local
port correspondents to assist themon the ground, usually on a very
urgent basis. P&IQ has helped
me understand and be prepared
for any P&I incident so that I canprovide effective assistance. It also
showed me how my role fits
into the wider industry.”
Sebastian Trigub, Pandi Liquidadores SRL,
Club correspondent in Argentina

8
8 modules

778
778 participants in 2021
and expanding

Academic outreach
We also engage with maritime education institutions acrossthe globe to share our knowledge and expertise and to foster
greater access to recognised academic qualifications.
World Maritime University (WMU)

International Maritime Law Institute (IMLI)In September 2021, we signed amemorandum of understanding (MoU)
with the World Maritime University (WMU),
based in Malmö, Sweden. The MoU is
designed to increase co-operation andengagement with both the university andwith students studying there, including intheir post-academic careers.

Last year, we also established a Masterof Laws student Fellowship at the IMO’s
International Maritime Law Institute (IMLI)
for the 2021/2022 academic year. IMLI is aworld recognised centre for the training ofspecialists in maritime law, with a particularemphasis on regulations adopted by the IMO.

WMU is a postgraduate university
founded within the framework of the
IMO. With more than 5,000 alumni from170 countries and territories, WMU has
created a global network of leaders in
the maritime sector.
The signing of the MoU will facilitatecloser and more regular engagement
between the Group, and the university.
It will increase students’ understandingof the world of P&I and the functions andimportance of the Group and promoteparticipation in the P&IQ. All of this will
stand them in good stead for their future
careers in the maritime sector.

Our 2021/2022 IMLI Fellowship increased
accessibility to IMLI as an institution and its
postgraduate degree courses, and represents
the increasingly important emphasis that weplace on education and our role in sharing
knowledge and expertise across the globe.
We are delighted to have awarded afellowship in 2021/2022 to a legal officer
in The Gambia’s Maritime Administration.
The candidate has progressed within hisorganisation despite both financial and social
constraints. The advanced training, study andresearch programmes provided at IMLI, andmade available via this fellowship, will support
him to further his career, with an in-depth
understanding of international maritime law.

“Fellowships to IMLI provided byexternal organisations are both
integral and vitally importantto facilitating access to IMLI
programmes and studying at
IMLI. The Group’s IMLI Fellowshipfor 2021/22 represents animportant commitment forthis academic year and will
greatly assist the Institution in its
continued mission to enhancecapacity-building in all States,
particularly developing States,
to contribute to the fulfilmentof the IMO objectives thereby
promoting safe, secure,environmentally sound, efficientand sustainable shipping
through cooperation. The awardof the Group’s Fellowship has
been gratefully received by IMLI,
the fellow and The Gambian
Maritime Administration. He isan excellent candidate andwe are looking forward to theGroup’s continued engagementwith the Institution.”
Professor David Attard (IMLI Director, 1992-July 2022)

The Group has also agreed to provide a
Fellowship for IMLI’s LLM course for the 2022/23
academic year.

Looking to
the future
The Group brings together 13 leading indemnity
insurers to share third-party maritime claims
and knowledge, thereby facilitating a strong
and dependable insurance framework for
shipowners, designed to shoulder the impact ofthe very worst maritime disasters. The longevityof the system is proof of its efficiency and its
value for all stakeholders.
When wrecks and pollution are cleaned up, we help
safeguard the oceans and sustain life underwater. Throughrisk prevention and risk sharing, we help protect lives at sea
and make the oceans safer. Our collective financial strengthmeans that Group Clubs are able to provide the insurance
cover which underpins international treaties. This gives
maritime authorities and seafarers confidence that claims
will be paid in a fair and timely fashion, thereby protecting
the livelihoods of seafarers and others.

This report highlights just a few of theGroup’s activities and how they makean impact towards a more sustainableocean economy. More can be done,
and new goals and initiatives will surely
follow. This is a journey we are taking
in partnership with shipowners andthe broader maritime industry. We willcontinue to work together, to reduce
any negative impacts, enhance positivechange, and above all, to support theindustry in the decisions and changes
needed ahead.
We are collectively stronger.

Rolf Thore Roppestad,
Chair of the Group’s Sustainability Committee

For more information about the International Group,
please visit our website at www.igpandi.org or
contact the International Group Secretariat:
International Group of P&I Clubs
78/79 Leadenhall Street, London, EC3A 3DH, UK
Tel: (0)20 7929 3544
e-mail: secretariat@internationalgroup.org.uk

www.igpandi.org