How can you make sure your business has a positive impact if your profits mostly come from activities that damage the planet? One good answer comes from shipping giant Maersk. I spoke to the company’s former chairman, Jim Snabe, following a Fortune Connect event this week.
The recent headlines coming from the Danish multinational are impressive—whether you care about profits or purpose. In its annual report released in February, Maersk announced a record year for revenues and profits. And by this summer, the company’s (and the world’s) first-ever carbon-neutral vessel should hit the water in South Korea, while the port of Shanghai will bunker its green fuel.
Back in 2016, though, the largest shipping company in the world was in a tough spot. Its revenues had been falling for almost half a decade, to a 2016 low of $35 billion, and for the first time in a generation, the company’s bottom line turned red. When Snabe and his fellow board members met to assess the situation, however, they did the opposite of what you may expect: They got rid of their most profitable unit.
