Currently, MSC’s recycling policy remains weak, relying solely on the Hong Kong Convention (HKC), a framework widely criticised for failing to ban beaching and properly manage hazardous waste downstream. Also, while the company claims to audit scrapping yards, it provides no transparency on the process or results. Independent audits have already found major flaws in yards that claim HKC compliance, particularly in South Asia, and that are used by MSC.

MSC's top management also came under scrutiny from Swiss media for its aggressive lobbying efforts directed at the Swiss Federal Tax Administration (FTA). The aim was to introduce an exceptionally favourable tonnage tax regime in Switzerland, which could have resulted in virtually zero taxation for the company. According to detailed reports from Reflekt, MSC succeeded in incorporating several items from its "wish list” into the draft bill of the Swiss tonnage tax regime, including the removal of stringent requirements related to flag states and labour rights compliance. However, the National Council rejected the draft proposal in May 2024.

Repeated attempts by the Platform to engage with MSC’s sustainability team on their recycling policy have gone unanswered. As MSC continues to turn a blind eye to the irreversible damage caused by the poor end-of-life management of its fleet, and lobbies for lowering compliance with international labour rights, there is growing global emphasis on both environmental sustainability and corporate accountability. Companies are expected to align their operations with not only their stated values, but also the law. The Platform remains committed to assisting companies achieve this, including by means of actively supporting technological innovation and meaningful advancements in the ship recycling sector to create capacity for sustainable ship recycling. 

MSC’s competitor CMA-CGM is already exploring how to boost sustainable ship recycling in Europe following a commitment in 2022 to not transport plastic waste on-board its vessels.  Now is the time for MSC to show whether or not they are truly committed to sustainability throughout their entire operational chain.

NOTE

(1) Several high-profile legal proceedings, such as those surrounding the Harrier case, are drawing attention to persistent violations of EU laws by ship owners attempting to circumvent regulations. Criminal investigations underway in multiple EU nations, including Germany, reflect a growing international commitment to holding offenders accountable and strengthening regulatory enforcement to address environmental and labor hazards associated with unlawful shipbreaking.