The yachting industry must urgently address environmental, social and governance (ESG) issues if it is to survive, according to MB92 Group’s latest report, People and the Ocean – How the Yachting Industry is Addressing the Sustainability Challenge with Top Talent. The superyacht refit management specialists’ report unveils critical insights into the industry’s current approach to social issues and sustainability, revealing a scene of both promise and challenge, using insights from experts on social issues and sustainability in the yachting industry with extensive research.

This includes a quantitative survey of companies within the shipyard’s supplier network and a qualitative survey of yacht management representatives and captains. The panel, comprising various industry stakeholders from different backgrounds, examined the sector’s social challenges, noted recent progress and identified key focus areas, driving factors and obstacles to adopting sustainable social practices.

“Unfortunately, social issues tend to be overlooked by industry members and the general public. That is partly due to the niche nature of the industry. But it needs to change if we want the transition to happen,” explains Jean-Marc Bolinger, CEO of MB92 Group.

“Change should take place at all levels: individuals, companies, and the industry as a whole. At the heart of the matter is how we promote awareness, understanding and sensitivity across the yachting community. We will not resolve the environmental issues confronting the sector without formal mechanisms to develop the skills of all our people.”

According to the report, while there have been some positive impacts on local economies, the strategies addressing social concerns in yachting remain largely inadequate and fragmented. Only about a third of companies have embraced “sustainable people-management strategies” beyond the confines of traditional HR practices. There is a growing willingness to invest in sustainable initiatives, but the absence of robust incentives and widespread adoption continues to hinder progress. The well-established status quo persists, often upheld by bold individual initiatives rather than collective industry efforts.

Tackling environmental, social, and governance (ESG) issues is pivotal for attracting and retaining talent, especially among the younger generations. Formalising ESG roles and recruiting specialists from outside the sector can significantly bolster expertise and commitment within companies.

“Yachting would not exist if it were not for the passion of those who work in the sector. Passion for navigation, passion for the ocean, and passion for this beautiful industry. To a very large extent, it is that very passion that binds us together. So much so that the lines between work and leisure are often blurred especially when at sea.

“As our industry grows and becomes increasingly professional, the world is also changing radically around us. ESG issues have taken centre stage, and the industry must now adapt to this new paradigm. But addressing the sustainability challenge is not about rushing headlong in an attempt to fix the “E” of ESG,” continues Bolinger.

“It’s about taking a step back and ensuring one has the necessary resources. This is where the “S” comes in. Because passion is no longer enough to attract talent, and ensure adequate skills and knowledge.”

The report stresses that the industry must amplify its focus on developing essential skills, encompassing sustainable materials and practices, environmental impact assessment, and regulatory compliance. Equally important are soft skills such as adaptability and teamwork. Strengthening the synergy between the yachting industry and academia is crucial to ensuring students acquire relevant skills. While universities are beginning to offer courses on sustainability, ongoing industry feedback and partnerships are indispensable.

Employees within the industry require comprehensive training on sustainability issues, including gender equality and mental health. On-board training, in particular, is deficient due to limited budgets. Efforts to address gender imbalances have achieved some success onshore, but there is a pressing need for progress on board, especially in ensuring contracts incorporate maternity leave.

The MB92 survey reveals a commitment to diversity and inclusion, with 77% of companies adopting inclusive hiring practices. However, only 23% have implemented specific programs to promote workforce equality. Supporting local communities is a strategic imperative that can elevate the sector’s image and legitimacy. Locally focused initiatives, when effectively communicated, can foster positive relationships with neighbouring communities.

To confront sustainability challenges in talent management, greater industry-wide collaboration is essential. Currently, a mere 10% of companies regularly collaborate with other stakeholders. The urgency to act is stressed by the looming threat of European regulations, which may soon impose mandatory changes upon the industry if proactive measures are not taken.

The report calls for a transformative approach, urging the industry to adopt comprehensive and cohesive strategies that transcend traditional practices, invest in sustainable initiatives, and foster collaborative efforts to ensure a resilient and thriving future.

“We’re at an inflection point,” warns Nigel Marrison, Founder of Blue ESG. “If we don’t do anything, who is going to want to work for a gas emitting, waste producing sector that lacks purpose and is experiencing increased protests and activism, whose employees are experiencing burnout and increased mental health issues? We have to align purpose with the values of the next generation.”

The full comprehensive report can be found on MB92 Group’s website.

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