HOW THE YACHTING INDUSTRY IS ADDRESSING THE SUSTAINABILITY CHALLENGE WITH TOP TALENT
I. Introduction / PAGE 04.
II. Methodology / PAGE 06.
III. Executive summary / PAGE 08.
IV. No sustainability transition without effective talent management / PAGE 10.
V. Interview: Giles Barkley / PAGE 22.
VI. Interview: Marco Taricco / PAGE 24.
VII. The industry in numbers / PAGE 26.
VIII. MB92 in numbers / PAGE 28.
IX. Conclusion / PAGE 30.
Jean-Marc Bolinger / MB92 Group CEO
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 passion that binds the industry 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 arround us. Environmental, social and governance (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.
It requires taking a step back and ensuring one has the necessary resources. This is where the “S” factor comes in. Because passion is no longer enough, we must be able to attract talent, and ensure adequate skills and knowledge. Also, acceptable practices and expectations of younger workers are very different from what they were only a decade ago.
Clearly, the social pillar of ESG is an indispensable engine of the transition. Unfortunately, however, 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.
And 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.
Admittedly, ensuring adequate training across an industry that requires such a rich and diverse range of skills as yachting is no small feat. As this report illustrates, many steps must be taken. This is especially true for crew, who are often at sea and come from diverse backgrounds.
Actually, it is with this in mind that MB92 partnered with the Water Revolution Foundation to publish earlier this year a set of Environmental Crew Guidelines, a comprehensive package of crew best practices designed to foster a culture of environmental awareness on board.
At a time when such fundamental changes are taking place in yachting, different actors are embarking on a wide range of different initiatives. Some will prosper, others may not, which is only natural. This is why we think it is so important that we make a concerted effort to adapt to these changing times.
We firmly believe that investing in the social pillar of sustainability leads to a virtuous circle. If we can channel our passion so that we can prove that we are an industry which takes care of its people, that can only be beneficial. Put simply, it is good for business: ESG is a phenomenal commercial opportunity.
Passion is no longer enough, we must be able to attract talent, and ensure adequate skills and knowledge
The findings of this report are based on a panel discussion between renowned industry experts who focus on the intersection between social issues and sustainability in the yachting industry. They are also based on extensive research carried out by MB92 prior to the panel discussion, including a quantitative survey of 30 companies within the shipyard’s network of suppliers and a qualitative survey of representatives of yacht management companies and captains.
After analysing the current social challenges facing the sector, the panel outlined the progress made in recent years as well as the way forward to achieve a more sustainable industry. The debate set out the main areas of focus for the sector, the key factors driving change and some challenges still holding back broader adoption of sustainable solutions and practices. Panellists also discussed the key role different industry players should play – both on shore and off shore – to lead transition towards a more socially sustainable yachting ecosystem.
Finally, the report takes a closer look at two issues in particular: first, how academia is adapting to the changing situation and what it is doing to prepare students, in an interview with Giles Barkley who teaches yacht design at Solent University; and second, how activist investors can have a positive impact on sustainability issues, in an interview with Marc Taricco, a founding partner at Bluebell Capital Partners.
Marc Hervás Sustainability Manager at MB92 Group
Nigel Marrison Founder and Director at Blue ESG
The yachting industry must urgently address environmental, social and governance (ESG) issues. While some progress has been made on environmental issues in recent years, social issues all too often get left behind. A failure to tackle social challenges in a concerted and systematic way poses a serious threat to the survival of the sector.
Despite the yachting sector’s positive social impact on local economies through job creation, the existing approach to social issues is insufficient and disjointed. MB92’s survey of its network of working partners shows that while about 60% of all survey respondents say their company has a formal sustainability strategy, just over a third of respondents have implemented a sustainable people-management strategy that goes beyond traditional human resources practices.
While attitudes are changing towards people management, and there is a growing willingness to invest in sustainable initiatives, incentives are still not strong enough and a powerful inertia remains in the industry. Few are willing or able to challenge the status quo, leading to a reliance on bold initiatives taken by individuals.
However, it is crucial to understand that taking ESG issues seriously helps to attract and retain talent. Younger generations require employers to have sustainability practices in place, so taking a stance on sustainability – and communicating what is being done effectively – can help to drive engagement and retention.
Certainly, there is a growing need for ESG skills, knowledge and expertise. For starters, the role of ESG managers in company structures must be formalised. It’s also important to recruit from outside the sector to learn from what’s happening in the corporate world. Above all, sustainability demands commitment: in the short term, social initiatives may not have a direct impact on profitability. But research shows that integrating sustainability across company ecosystems leads to longterm success.
The challenge is that even the most basic skills are sometimes lacking. Here, it is important to distinguish between hard skills and soft skills. MB92’s research suggests that the most important hard skill is knowledge of sustainable materials and practices, according to 86% of respondents, followed by environmental impact assessment (53%) and regulatory compliance expertise (47%). The most important soft skills are adaptability (according to 62%) and collaboration and teamwork (56%).
In order to ensure that students have the skills the industry needs, a close relationship between the yachting industry and academia is crucial. There is little knowledge of sustainability on board, but universities are now offering courses to correct this. Universities and the industry must understand how the curriculum can change to meet needs, so businesses must ensure partnerships with universities and give ongoing feedback.
Beyond academia, industry employees need training to be prepared to tackle sustainability issues, including gender equality and mental health. The problem is more acute on board vessels: training can be highly effective, but there is a lack of sustainability budgets on board to pay for training.
The gender imbalance in the sector is a particularly acute problem: women represent scarcely 2% of the global seafarer workforce. The situation on shore has only improved thanks to concerted efforts, with gender pay gap reporting playing an important role in enabling inequalities to be addressed. To tackle problems among crew, organisations like She of the Sea are valuable. One key area concerns contracts: most do not include maternity leave.
Another area where the sector must do more is supporting local communities. This is an important way to improve the sector’s image and legitimacy. Just having a budget to invest in sustainable initiatives is not enough, as too many initiatives lack focus and commitment, thus diminishing impact. The approach needs to be more local, and better communicated, to promote better relationships with neighbouring communities.
Ultimately, there needs to be more collaboration across the industry. According to MB92’s survey, just 10% of companies collaborate regularly with other industry stakeholders to address sustainability challenges in talent management. Although many more (64%) do so occasionally, 26% do not at all. MB92’s additional research conducted through in-depth interviews with yacht captains backs up these findings.
But without collaboration, it will be impossible to generate an overarching strategic plan to advance industry interests. It is necessary to join forces, communicate between organisations, and seek common benefits – not just individual profits.
Greater cooperation requires more strategic thinking to generate a formal framework that would enable the whole sector to work together towards the same goals. Not only would this enable progress to be measured systematically, allowing transparency and effective communication, but ultimately it would lead to a greater positive impact on sustainability. Key areas for impact should be identified, breaking down what is being done, while clear targets for the future are needed.
If the industry fails to act quickly enough, looming regulation in Europe is likely to force change anyway. Consequently, there is a big opportunity for the frontrunners to benefit. In the end, taking the social pillar of ESG seriously is in the industry’s best commercial interests.
The need for the yachting industry to address environmental, social and governance (ESG) issues has never been greater. While some progress has been made on environmental issues in recent years, relatively little has been achieved in tackling social challenges.
Yet a failure to do so in a concerted and systematic way is a serious threat to the survival of the sector. The fourth in a series of annual reports by MB92 on sustainability, this report examines the social challenges facing the yachting industry as it moves toward a more sustainable future, and offers concrete insights on how to tackle them.
These challenges include addressing skills shortages and gender imbalances in an industry trying to improve its environmental performance and allay concerns about wealth concentration, even as it has a positive social impact on local economies, especially by creating jobs and supporting craftmanship. The people who build, service and operate yachts must align their values with a new generation of socially conscious employees and potential customers; undertake socially beneficial projects for shipyardneighbouring communities; do better at finding, integrating and keeping talented employees, especially those who can master increasingly complex systems; prioritise wellbeing, diversity and gender equality on their work forces; and train them to meet the industry’s main challenge – mitigating environmental harm.
Until the social pillar of ESG is tackled consistently by all parties – on shore and off shore – other dimensions of sustainability can be only partially addressed, and the yachting industry will remain vulnerable to pressures seeking to restrict or even end its activities.
“We talk about sustainability, but the ‘S’ [in ESG] often gets left behind. That is a missed opportunity to capitalise on human behaviour, to improve performance, efficiency and ESG impact. Lack of awareness is a big problem,” says Nigel Marrison, founder of Blue ESG, a maritime ESG consultancy. “If we want to reduce emissions, how do we do that? That transition requires the people implementing it to be educated and trained. It’s the ‘S’ that comes first, it’s human behaviour. The narrative in the sector has organically been channelled towards the ‘E’ for obvious reasons, but the ‘S’ goes hand in hand with the ‘E’. There needs to be a holistic approach to a development strategy.”
That includes a stronger focus on the changing job profiles the industry needs to prosper in the face of chronic talent
1 See the Methodology section of this report for details.
shortages. It is too often the case that players in the sector cannot find the right talent because of a lack of more and better training and education. At the same time, integrating that talent into the industry requires greater focus.
Not only are social issues not given enough attention, but even when they are tackled, the approach is all too often insufficient and disjointed. One of the most complex challenges is ensuring awareness among the owners of yachts of the importance of the social side of sustainability.
The scale of the challenge is laid bare by MB92’s survey of its network of working partners.1 While about 60% of respondents say their company has a formal sustainability strategy (the remaining 40% do not), of those companies about 60% of respondents incorporate people management as part of that strategy. In other words, just over a third of all survey respondents have implemented a sustainable people-management strategy, which means going beyond traditional human resources practices. In particular, such a strategy understands that environmental issues cannot be fixed without first addressing social issues. These include prioritising employee well-being and embracing diversity.
While attitudes are gradually changing and there is a growing willingness to invest in sustainable initiatives, the incentives are still not strong enough to counteract powerful inertia in the industry. Few are willing or able to challenge the status quo.
Given the significant importance that younger generations give to the sustainability practices of prospective employers, these efforts are inadequate. Paulina Gallant, senior partner for human resources at Winch Design, warns: “Millennials won’t take a job if employers do not have strong sustainability practices. Many candidates say jobs are more fulfilling if they have opportunities to have a positive impact on social and environmental issues. Taking a stance on sustainability can help drive engagement and retention.” Transparency is critical: “Candidates are more eager to find out what companies are doing to address ESG matters. So, we have to be more open and communicate our initiatives.”
The results of MB92’s survey suggest that most companies still bet heavily on more traditional methods to attract and retain talent, with 85% of companies relying on competitive salaries and benefits, followed by offers of flexible work arrangements and professional development opportunities (67% and 63% respectively).
Competitive salaries and benefits are the main tools companies use to attract and retain talent.
Source: MB92 Survey of working partners, 2024.
Yet increasingly frequent protests against superyachts are a warning signal. “We’re at an inflection point,” Marrison warns. “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 burn out and increased mental health issues? We have to align purpose with the values of the next generation,” he says, adding that this is an issue for both the clients as well as the workforce.
“Companies or even superyachts that can demonstrate an ongoing commitment to ESG unlock opportunities to attract talent. If you can quantifiably demonstrate how the company is treating employees and communities, that’s a key differentiator, and unlocks commercial advantage,”
says Marrison. For instance, being able to address jobrelated mental-health challenges has become a critical factor for young workers. A recent McKinsey study showed that Generation Z workers were much more likely than other cohorts to say that mental-health issues have a major impact on their ability to perform at work.2 “If we are not demonstrating how we are addressing mental-health issues, we have immediately reduced our attraction rate by 80%,” Marrison adds.
Exacerbating this problem is the conservative nature of the yachting sector, with often stagnant recruitment because of lengthy careers that can limit opportunities for fresh talent. According to a recent survey by People and Skills,3 almost two-thirds of employees in shipyard management, for example, keep their jobs for more than a decade. As the median age of employees gradually rises, that ultimately leads to skills shortages.
Nevertheless, retaining the best talent is just as challenging as attracting it. Another recent survey, by Great Place To Work,4 shows that people who feel that their employer is making a positive impact on the world are 11 times more likely to stay with their organisation for the long haul. “Are we offering an experience which is purposeful? I believe that we are, but it has not been strategised or formalised. We are not measuring or communicating the impact the sector delivers,” Marrison says.
From a human resources perspective, that points to a growing need for ESG skills, knowledge and expertise within the sector. A critical way to achieve that is formalising the role of ESG managers in the companies and institutions. “We have to recruit from outside our sector to learn from what’s happening in other parts of the corporate world so that we can benefit from high-level expertise,” Marrison says. “We have to recruit smart and broaden our vision. If we are not fostering DEI initiatives5 and blocking profiles who can add value, then we are restricting progress and missing financial gains,” he adds.
2 Dua, A., Ellingrud, G., Lazar, M., Luby, R. and Pemberton, S., October 2022, “How does Gen Z see its place in the working world? With trepidation”, McKinsey & Company.
3 Wilson, S., October 2022, “Survey reveals lack of fresh talent entering superyacht industry”, BOAT International.
4 Hastwell, C., 13 December 2023, “Workplace ESG: How Environmental, Social, and Governance Factors Impact Employee Experience”, Great Place to Work.
5 DEI stands for Diversity, Equity and Inclusion.
Jesús Marrodán, Senior Client Partner at executive search company Korn Ferry, agrees that there is much that the yachting industry can learn from other sectors – especially technology and financial services, which are among the most advanced in implementing sustainability practices. “These companies were successful in attracting and retaining new talent, as they focused on corporate social responsibility, gender equality and diversity in general,” he explains. Although integrating different profiles and people with new skills into a sector with a conservative work culture can be challenging, Marrodán cites the successful example of telecoms engineers. That industry traditionally had limited diversity, but changed gradually thanks to open-minded, forward-looking people management strategies.
Marrodán warns that sustainability demands commitment: In the short term, social initiatives may not have a direct impact on profitability. But numerous academic studies show that integrating sustainability across company ecosystems leads to long-term success.6 “Many of the most successful and profitable companies have put a focus on sustainability from a social perspective. Investing in corporate social responsibility provides long-term results. Even though it requires significant investments, it pays off,” he says.
Leaders of successful companies have followed two overarching strategies, according to Marrodán. They anchor sustainability to the purpose of the company and integrate it into corporate strategy. And going beyond simply creating sustainability departments, they prepare themselves and their employees to embrace change in how the company is run.
One of the industry’s greatest obstacles to sustainability is a deficiency of training. “There’s almost no knowledge on sustainability in the yachting industry,” says Claire Ferandier-Sicard, founder and chief executive officer of ETYC, which specialises in environmental training for crews. “There is basic mandatory training, but crews don’t know anything about sustainability – even when you just ask what sustainability means, they often don’t really know. But it doesn’t mean they don’t want to act, they just don’t know how to start.”
That is not surprising when looking at the results of MB92’s research: just over a third of respondents (36%) provide sustainability-related training programs for employees regularly (more than once a year), but slightly more (39%) do not provide them at all – while just a quarter do so occasionally (less than once a year).
6 See for example: Whelan, T., Atz, U., Van Holt, T. and Clark, C., 2021, “ESG and
Investing in corporate social responsibility provides longterm results. Even though it requires significant investments, it pays off
- Jesús Marrodán
Whilst over a third of companies use sustainability-related training programmes, more do not use them at all.
Source: MB92 Survey of working partners, 2024.
It is important to distinguish between hard and soft skills. MB92’s research suggests that the most important hard skill, by far, is knowledge of sustainable materials and practices, according to 86% of respondents. That is followed by environmental impact assessment (53%) and regulatory compliance expertise (47%). Meanwhile, the most important soft skills that respondents saw for navigating sustainability challenges are adaptability (according to 62%) as well as collaboration and teamwork (56%).
Knowledge of sustainable materials and practices is the most important hard skill; adaptability is the key soft skill, followed by collaboration and teamwork.
Source: MB92 Survey of working partners, 2024.
While both kinds of skills are important, Marc Hervás, MB92 Group Sustainability Manager, underlines the need for soft skills – in particular teamwork, creativity and proactivity. Regarding teamwork, Hervás says there are still very few roles in the industry that focus on sustainability. “Even then, you must work with other departments and companies on a daily basis. So, being a team player is key to get successful results,” he says, highlighting the importance of alliances between organisations. “There is no company in the world, even big multinationals, that can approach their sustainability strategy alone and be successful,” he warns.
Creativity and proactivity are also key because the area of sustainability is evolving fast, with new technologies and regulatory requirements being introduced regularly. “Being able to complement soft skills and technical knowledge is the real issue,” he says.
There are two profiles in sustainability: those who come from within the industry and outsiders with sustainability training who can adapt to the industry. “Both profiles have advantages and disadvantages, but both work if they have good soft skills to match their technical knowledge,” he concludes.
Marrodán emphasises that many other industries have been grappling with this challenge. “There has been a big effort to bring in people from different sectors. So, you are now seeing a significant change in structures, composition and head counts. You still need people with knowledge from the sector, but you also need disruptors,” he says, adding this can be tricky. “It can be tough to combine two very different mindsets within one company.”
Being able to complement soft skills and technical knowledge is the real issue
- Marc Hervás
ETYC’s Ferandier-Sicard says, bringing outsiders on board has to be handled deftly. Often such people, who arrive as green crew, can be promoted to heads of departments. “They have no knowledge in management, they don’t know how to communicate, or how to be a leader. That puts pressure on teams, and often many leave the boat because of one person who can’t be fired, as the owner likes them but doesn’t know this is an issue,” she says. This highlights the importance of training in communications, leadership and team management. “This would reduce the risk of stress, depression and harassment on board,” she adds.
Gallant from Winch Design cites another example concerning hard skills on shore – specifically software skills, which are increasingly important in design. “We need to look for designers who can work with AI and generative design tools. This provides an opportunity to create bio-inspired structures and layouts which can lead to innovation and efficient design well suited to the environment. Universities are not teaching this yet,” she says. “There is a mismatch in terms of the experience that students get, and what we need as a business.”
Another example of the skills shortage is the growing need for IT skills on board yachts to handle increasingly complex audiovisual and satellite communication systems.
Competent electro-technical officers and engineers are often hard to come by, partly because of a lack of adequate training. Marine electronics training providers are attempting to fill that gap, which requires up-to-date training to keep pace with fast-changing digital trends.7
A close relationship and dialogue between the yachting industry and academia is crucial. “There must be a good match between industry needs and the profile of the students. Nowadays, there is little knowledge of sustainability on board, but we are now offering courses on sustainability to correct this, as well as courses on project management and leadership – there is also a gap there,” says Jordi Fonollosa Magrinyà, from the Facultat de Nàutica de Barcelona (FNB). “Very soon students and young professionals will have these skills, and know what sustainability is before they enter the industry,” Course curriculums are updated exhaustively every four to five years, adding or removing courses according to the needs of the industry and the legal framework.
“There is an obligation both at universities and in the industry to understand how the curriculum can change to meet the needs of the yachting sector. As businesses, we
We need to look for designers who can work with AI and generative design tools. This provides an opportunity to create bio-inspired structures and layouts
- Paulina Gallant
must ensure partnerships with universities and give ongoing feedback,” says Gallant, explaining that Winch Design has an especially close relationship with Kingston University London, which runs a sustainable design course. “We work with them by giving briefs to students to get them to think creatively. There is more to be done in both universities and businesses alike, working in partnership with one another to ensure that students that come out have the necessary sustainability skills, but also from a practical point of view, to deliver good work.”
Gallant suggests that students could be allowed to take a year out. “That would give them an opportunity to immerse themselves in the real world and make an informed
decision as to whether it is the right career, but also to equip themselves with the necessary skills to perform the role effectively.”
Meanwhile, Fonollosa highlights the value of “company days” at FNB, where different companies come to show their activities and build up relationships with students. “We do different activities to try to understand each other and close the gap,” he says. Work experience and internships are also important, but there is a downside. One area of concern: students are sometimes tempted by appealing job offers and leave without finishing their degrees.
This has been accentuated by the recent boom in the yachting industry. The number of superyachts on the water rose more than six times in the last 40 years – leaving shipyards straining to keep up with demand. The scarcity of skilled labour sometimes means buyers must wait for several years for a custom-made boat. “It would be good if companies understand that it is important to hire young people who have finished their education. Otherwise, at some point in their career they won’t be able to progress,” says Fonollosa.
For those already working in the yachting industry, the question is how much training they get on environmental sustainability issues or social issues such as gender equality or mental health. And even if crews understand what needs to be done to reduce their yacht’s impact on the environment, their ability to act depends on captains or owners.
Training in sustainability matters can be highly effective: Ferandier-Sicard reports that, without exception, all the crew she has trained since establishing her company in 2019 went on to take sustainability action. But not enough crew receive the right training. A critical problem is the lack of budgets to pay for sustainability training. “There is absolutely no sustainability budget on board. There is [only] a training budget for mandatory skills covering basic issues like security, safety, medical skills,” she says. Unlike industry players on land, where regulations are increasingly stringent, environmental regulatory obligations for yachting especially tend to be much lighter. “So, it’s a tricky situation,” she says. “It’s not like a commercial ship. On board there is a lot to do – we hear lots of talk, but don’t see much action.”
The lack of training in the industry can perpetuate a negative image in the public eye and low morale in the crew. “There are always some crew members who feel that sustainability training is a waste of time – as soon as you turn on the engine there is pollution,” says FerandierSicard. But she adds: “Some crew members are not proud of their job because of the impact of boats.” This can quickly change when they understand the difference they can make with different actions, she said. “That’s why we’ve developed our digital platform, where every crew member we train can track their actions on board in terms of reducing their impact on the environment.”
6,000
Plastic straws
3,600
Paper napkins
5,400
Plastic water bottler
6,000
Coffee pods in aluminum
500L/h
Fuel consumption at full speed*
Ferandier-Sicard highlights one success story that reinforces the importance of creativity as a soft skill. She trained the crew of a 50m sailing yacht whose owner cared about sustainability. “The crew were hard to train but they finally saw the power they could have on board. You don’t have to tell them what to do. As soon as you give them the knowledge, the solution comes from them,” says Ferandier-Sicard. She adds that the training resulted in a commitment for the yacht to shift to 100% HVO (fossilfree) fuel. “If you don’t know anything about a certain topic you can’t be creative. But with knowledge throughout the course, you have the power to act.”
Another attempt to address the crew skills shortage in the yachting industry is a joint initiative between maritime charity Trinity House and Hill Robinson, a yacht management company. Together they are sponsoring four cadets for three years of training that will lead to Maritime and Coastguard Agency (MCA) certification as a Deck or Marine Engineer Officer of the Watch (Unlimited). Just Be Maritime, a maritime consultancy company, will manage the cadets, while Warsash Maritime School will provide the training.7
Can reduce your boat’s carbon footprint by up to 50%
Train your crew to further reduce your yacht’s environmental impact
Limit unsustainable expenditure and operating costs over the long term Influence customers to look for environmentallyfriendly yachts Meet and exceed evolving regulations
Source: MB92 based on ETYC data and analysis using a 45m. LOA yacht as a reference. *Equivalent to 150 diesel cars per hour.
Few industries have a gender imbalance as acute as that of the yachting industry – in large part because seafaring has traditionally been a male domain. According to the International Transport Workers’ Federation, women represent only 2% of the global seafarer workforce, including commercial shipping. In an attempt to change this, eight regional Women in Maritime Associations have been formed to represent female maritime workers in more than 150 countries, an initiative supported by the International Maritime Organization, a United Nations agency. The situation is less extreme in the yachting sector but gender balance remains an issue.
While male dominance is more noticeable on board yachts, the situation on shore has improved somewhat thanks to concerted efforts across the sector, as shown by MB92’s survey: 77% of companies surveyed say they use inclusive hiring practices to promote diversity and inclusion. However, just 23% of respondents say they have set up targeted diversity and inclusion programs.
Inclusive hiring practices are the most important way companies address diversity and inclusion, by far.
Source: MB92 Survey of working partners, 2024.
As soon as you give them the knowledge, the solution comes from them
- Claire Ferandier-Sicard
The presence of women at senior levels with successful careers in the industry “hasn’t happened by accident,” Gallant says; it has required a culture that enables inclusivity and promotes respect, irrespective of seniority, gender, age or background. Gallant says that Winch Design offers flexible working arrangements and generous parental leave, including financial rewards for those who return from parental leave. “There is a budget for this, but it has also required some openness from the senior leadership team for that to happen,” she says. In particular, Gallant emphasises the importance of gender pay-gap reporting so that inequalities can be measured and addressed, and recruiting can be adjusted.
However, these issues are harder to address on board yachts: While the crew working inside are mostly women, those in engineering, on deck and on the bridge are predominantly men. She of the Sea, an association started to support women and promote diversity in the industry, is working to fix the imbalance. Its emphasis on people and its mission to promote an industry where high performance and competence are what count – regardless of gender, race or other factors – is a valuable contribution toward the professionalisation and modernisation of the sector.
One area where women at sea need more support is contracts. In particular, most contracts do not include maternity leave – often because boats are registered with flags where it is not mandatory. This is an area where management companies can provide more support, and those applying for new positions can also request it. Additional research conducted by MB92, which included a series of interviews with yacht captains, suggests that it is important to take advantage of the experience that women can provide on shore after maternity, giving them more career longevity and enhancing onboard knowledge.
Another issue that affects women differently at sea is mental health. Few are prepared for the unique working conditions on board, which involves living and working at close quarters with strangers for long hours with little sleep and no days off. These challenges can be exacerbated by other factors such as bad management or harassment.
“When the owner is shouting because the air conditioning is not working, they will shout at the chief stewardess first, who will then go to the chief engineer; if the food is not good, they will go to the chief stewardess first, who will then go to the chief cook,” says Ferandier-Sicard. “So, there are some positions on board where women are more exposed to pressure.”
She adds that the consequences are often depression, accidents due to exhaustion, or even suicide. The 24/7 ISWAN help line is a useful resource if people want to talk to a psychologist, but it is not enough, she insists. “We have to communicate more about this,” she says. One proposal is that shipyards should have dedicated safe spaces in private rooms for crew, when boats dock for refitting, for example.
Source: Norwegian Ministry of Trade, Industry and Fisheries, 2023.
One important way the yachting industry can improve its image is by supporting local communities. Many such initiatives lack focus and commitment, limiting their impact. The approach needs to be more local, according to MB92’s Hervás. “It takes a lot of time, effort and commitment from shipyards to be well integrated into neighbourhoods,” he says. It is important to sponsor local projects that translate into a better relationship with the neighbouring community.
“We need to go one step further and be part of the solution, not just giving money, but being part of a project and making sure it grows, so that awareness is raised in local areas. Taking a more local approach in which you invest time into a project you’re supporting, know the people, provide expertise and try to be part of it – that’s where a real difference is made. I would like to see this in other companies and institutions in the industry,” explains Hervás.
Some of these initiatives Include, for example, supporting marine research projects through non-profit organizations such as Yachts for Science, or participating in regular beach clean ups. The yachting community can also offer support by getting involved in onshore events, such as the annual pentathlon organised by BWA Yachting in Barcelona, that supports a local charity.
Other actions Include the collection and donation by onshore and offshore teams of nonperishable foodstuffs, medical supplies or hygienic products for less privileged local communities. “It’s very important to be transparent about what you’re doing and intending to do,” Korn Ferry’s Marrodan says.
ETYC’s Ferandier-Sicard suggests a more direct way of supporting local communities: training and advising local crew members to help them find work or more education when they leave the yacht. Most interior crew staff have only basic qualifications. “They stop as soon as they start a family, and are left with nothing. This community needs our support,” says Ferandier-Sicard.
Despite all efforts to improve its sustainability credentials, the reputation of the yachting industry is an ongoing challenge when it comes to attracting and retaining talent. It is telling that 84% of the MB92 survey respondents saw enhanced reputation and brand image as a way to address sustainability challenges through humanresources management.
Most HR departments see enhanced reputation and brand image as the top way of addressing sustainability challenges.
Source: MB92 Survey of working partners, 2024.
Gallant admits that the sector’s image can be “problematic” and lead to “difficult questions” from clients. “It’s all about trying to be as transparent as possible, communicating what we are doing on our website, and when we meet face to face, tell them what we are doing as a business to combat environmental damage happening in the industry,” she says. But while transparent communication is paramount, the sector must take great care to avoid greenwashing, warns Ferandier-Sicard: “That just makes matters worse. Results come from actions. Actions are nice; results are better.”
As Hervás puts it: “Even if we do things perfectly, it is difficult to change the image completely overnight. It’s an industry that is not essential for society, it’s purely recreational. So, clearly, that is going to invite some opinions and feelings in society.” That is why each company must explain its position and commitment clearly to its employees, or future employees, says Hervás. He adds that MB92’s efforts at reputation management far outweigh those of any previous company he has worked with in other sectors with more neutral reputations.
Although Hervás has seen an improvement in the sector’s image over the last three years, each company or shipyard must be judged on its own terms. There is an opportunity in the introduction of new, greener technologies – not just to mitigate the environmental impact of yachts, but also to enhance the biodiversity of port areas and improve the management of waste, water and energy.
Even so, that is not enough. Hervás continues: “The industry is trying to improve its image, but the main focus is on reducing its environmental impact – the social part is secondary. But if you really want to take care of sustainability from the inside out, you must work on the social part too. You must create that foundation, awareness and commitment from all working in the industry. Then, it will be much easier to improve other aspects of sustainability in the long term.” Awareness must be created through training, so that people in the industry are knowledgeable about the problems, and understand how to tackle them through a long-term strategic plan. “The foundation is what we must work on, and that starts with the social part,” he adds.
At the heart of the problem in the yachting industry is a lack of collaboration among the many different players. Without it, it will be impossible to come up with an overarching strategic plan to develop the industry, and change will be piecemeal or one-sided. The survey results drive this point home: Just 10% of companies collaborate regularly with other organisations or industry stakeholders to address sustainability challenges in talent management. Although many more (64%) do so occasionally, 26% do not at all. MB92’s additional research conducted through in-depth interviews with yacht captains backs up these findings.
The majority of companies only occasionally collaborate with others to address sustainability challenges.
Source: MB92 Survey of working partners, 2024.
It is not unusual to find different groups working on similar but separate sustainability projects, often even competing against each other, according to Hervás. “It’s a tough moment for a company wanting to support certain organisations in the industry seeing this environment in which there is no collaboration, communication or joint efforts between different actors. It’s really discouraging, we need to cooperate. No company can work on this alone. We have to join forces, communicate between shipyards and other organisations, and look for the common benefit, not just the profit of each company,” he says, emphasising the importance of alliances and a common strategic plan.
This lack of cooperation across the sector is mirrored in miniature on board vessels. “Some crew members are taking individual action on yachts, but it is not organised or part of the general objectives of the boat. It is often not followed up in the long term, so it’s not very efficient,” says Ferandier-Sicard.
In order to stimulate greater cooperation in the sector, Marrison sees a need for more strategic thinking to generate a formal framework that would enable the whole sector to work together toward the same goals. Not only would this enable progress to be measured systematically, allowing transparency and effective communication, but ultimately it would lead to a greater positive impact for people and the environment.
“What is very important, and missing, is a common framework. As long as our efforts are fragmented, we can’t measure, monitor, improve and communicate. We need to be more cohesive in the way we are strategising our social contribution,” says Marrison. One suggestion was to use the framework of the UN’s Sustainable Development Goals. “We need to start to identify key areas where we want to have an impact, break down what we are doing related to each pillar, and targets going forward, and start to put data in,” he adds. That data could cover multiple areas such as gender equality, quality education and training, retention rates, charitable contributions and social initiatives.
If the industry fails to act quickly enough, Marrison says, regulation in Europe is likely to force change. He points to a torrent of regulation in the pipeline, including the European Union’s Corporate Sustainability Reporting Directive, directly impacting large listed companies and indirectly affecting SMEs and the supply chain to report on ESG performance.
Marrison believes there is a big opportunity for the frontrunners to benefit – quite simply, because it is good for business. “Business will be divided between those who move to deliver positive value for all stakeholders, a ‘net positive’ business model, and those who don’t. Those who don’t will increase risk and costs, have lower performance and eventually fall behind. Those who do transition will mitigate climate and reputation risk, reduce operational costs, improve performance and secure a more resilient and profitable business model. Delivering social value provides a competitive advantage that helps to attract more clients and increase revenue,” says Marrison.
Gallant concludes: “Clearly there is an appetite in the industry to do more on the ESG agenda. It’s a great opportunity for us to join forces and work in true partnership and exchange ideas to drive sustainability to greater heights, which there is a great need for.”
Delivering social value provides a competitive advantage that helps to attract more clients and increase revenue
- Nigel Marrison
Course Leader, Yacht Design Portfolio
Solent University, Southampton
We work alongside the yacht and superyacht design industry to see what software they are using and then incorporate this in our degree programs
-
Giles Barkley
“BOTH INDUSTRY AND ACADEMIC PARTIES NEED TO WORK TOGETHER”
When Giles Barkley started teaching students at Solent University in 1991, the same year as it launched its first degree in yacht design, the average length of the boats being designed was about 40 feet.
Almost three decades later, those boats had grown so much that the Southampton-based University saw an opportunity in 2019 to launch its first Master’s degree in Superyacht Design aimed at vessels whose minimum length was 79 feet (24 metres) – the largest are now more than ten times longer than the average a generation earlier. As well as the size of yachts which have multiple decks and cater for crew and up to a dozen guests, sustainable design is becoming a major element of Superyacht design.
“The industry is now pushing for graduates with knowledge of sustainability,” says Barkley, who developed and leads three Yacht Design degrees at Solent University, including the Superyacht Design course, attended by six students on average every year. With the degree courses updated every five years, Solent is preparing to launch a new version of the Master’s course in September 2024, with an additional focus on designing for a sustainable future.
The sustainability aspect means studying everything from the life-cycle of materials used in the yacht’s construction to both considering and implementing alternative power and fuel sources, including methanol, electric and hybrid engines. From a “rules and regulations” perspective, this means graduates must understand the subject and the applicable maritime statutory rules regarding sustainability, which are updated regularly. To deliver this knowledge to students, Solent University has just hired a lecturer who has specialised in this area “so that yacht and superyacht design graduates will gain the knowledge and appeal to the industry.”
In addition, fast-moving technology is of growing importance. “What was complex software such as programmes for computational flow dynamics, is now becoming increasingly user-friendly,” says Barkley. “We work alongside the yacht and superyacht design industry to see what software they are using and then incorporate this in our degree programs and train students to use it,” he adds.
Given the importance of computer-aided design packages, Barkley says that if artificial intelligence can be harnessed to design new hull forms – he points to AI source code linked to hull modelling and analysis software – then it could generate more efficient, “less drag” hull forms which a more traditional approach to design may have missed.
Despite the many changes taking place, Barkley says: “There is still a relatively low percentage of female students on his
courses at Solent University. No more than six or seven women join each year, and sometimes as few as two.” However, he insists that they tend to excel, and often perform better than their male counterparts. Last year, three women were offered jobs before finishing their course. They had also all worked the equivalent of a day a week with design companies during their final year of study.
Clearly, this is a talent pool which is not being properly exploited by the industry, suggests Barkley, who has taught many successful naval architects, including Jason Ker, Juan Kouyoumdjian, Sam Manuard and Guillaume Verdier.
While a greater effort needs to be made to attract more females into the sector, in terms of nationalities the industry is certainly becoming much more diverse, as it expands beyond its Western European heartland. “We can see the industry slowly shifting east,” he says.
Given that fewer Western Europeans are applying, due to Brexit and the resulting higher tuition fees, it seems these are being replaced by a new generation of students who are now coming from further afield – from Eastern European countries like Latvia and Poland, to Asian countries such as Korea and China. The yacht design courses are also gaining a reputation in the US yacht and power craft design industry, and Solent is seeing an increasing number of US students wishing to enrol. The as yet unanswered question is whether that talent will remain in Western Europe or return to their countries of origin to support growing industries there.
Certainly, strong partnerships between universities and the yachting industry are essential if “design for sustainability” challenges are to be tackled fully. For one thing, it helps students to get jobs. Here, Solent’s results speak for themselves: last year, for each of Barkley’s roughly 30 Yacht and Superyacht Design graduates, there were two jobs offered, he says. “This year, the employment market still favours the graduates,” he adds.
“The partnership between education and business works well because commercially everyone wants to go greener. For industry to do this on its own is difficult and expensive. Often, they don’t have time [to conduct research], but we do,” says Barkley of the mutual dependence between the two sectors.
“We are seeing a lot of joint partnerships between academia and industry to see what is sustainable,” says Barkley, explaining that this initiative is being supported by Innovate UK, part of UK Research and Innovation, who work with the UK’s Department for Transport to reduce greenhouse gas emissions from shipping. “Both industry and academic parties need to work together.”
There is still a lack of skills across the board – not just in the yachting industry
-Marco Taricco
“THE S [OF ESG] IS THE ONE WHICH IS LEAST FOCUSED ON IN EUROPE AT PRESENT”
When companies or industries fail to address a pressing issue adequately, change often ends up being forced from the outside instead. It can for example come from a shift in public opinion, or from regulators, or sometimes even from activist investors. There is a lesson in this for the yachting industry.
Marco Taricco, a founding partner at Bluebell Capital Partners (BCP), a London-based activist investor with a particular focus on ESG issues, warns that although it has been relatively neglected compared to governance and environmental issues, especially in Europe, the social pillar of ESG is becoming increasingly important when assessing sustainability challenges.
At the same time, though, he highlights the long-term benefits of approaching the challenges properly. “We aim to create value for investors by engaging with target companies. That means that we need to identify specific actions that can be implemented at the board or management level to create medium-term value in share prices,” says Taricco.
According to him, there is still much hypocrisy when big investors mention ESG. There is a lot of talk, but not much action, he insists. But that doesn’t mean the needle can’t be moved. In fact, engaged and active investors are ideally positioned to challenge management teams on these issues, that go beyond daily operations, and trigger change.
“We are doers, not talkers. When we see an issue, such as a social one, we prefer to actively engage with target companies and address the issues,” adds Taricco. “If we do this properly, there should be a direct correlation between best-in-class practices and stock market appreciation for companies.”
One key area of focus regarding social issues, in Taricco’s experience, is the gender pay gap. “Very often we ask companies to assemble data about the gender pay gap, and most importantly, comparing like-for-like jobs,” he says, adding that it is surprising how many companies do not have anti-harassment policies in place.
Taricco suggests that it is not too late for the yachting industry, whose heartland is in Western Europe, to take action to address social challenges. “When it comes to environmental issues, Europe is ahead of the US. At the end of the day, Americans look for profits, returns – everything else is secondary,” he says.
“But it’s the opposite when it comes to social issues. The US is more advanced, given the broader composition of its
population, and more of a history of social issues. The S [of ESG] is the one which is least focused on in Europe at present,” Taricco explains.
The yachting industry also has the advantage that the owners of the yachts themselves tend to be wealthy and successful individuals from a range of different corporate sectors where ESG issues are prime concerns. It gives them an opportunity to become “champions of the ESG movement”.
Taricco highlights one salutary example where BCP achieved radical change in a Belgian chemical company, Solvay, whose soda ash plant on Italy’s Tuscan coast was responsible for creating a 5km-long “Caribbean-like” beach with residue from its production process. “It was an environmental disaster,” he says.
An intensive campaign that involved writing dozens of letters to the company and various local, national, European and global authorities and agencies, as well as submitting 106 questions at Solvay’s annual shareholder meeting, led to an agreement establishing a path for the company to eliminate its contamination.
All of this, Taricco emphasises, when the asset manager held only one, symbolic, share. “We had no significant economic interest. It was a way of proving the point that it doesn’t matter how big you are. We achieved more with one share than [major global investors that talk a lot about ESG] who did nothing.”
Just as some investors overplay their impact on ESG issues, to their own detriment, so the yachting industry must take care not to trumpet advances in the area if they are not real. The consequences of greenwashing can be just as damaging as the initial practices being played down – credibility is a fragile commodity which, once lost, is hard to recover.
Instead, the sector needs to concentrate on building the right skills and knowledge required to address sustainability issues. “There is still a lack of skills across the board – not just in the yachting industry,” says Taricco. “We are at the beginning of the journey, but it’s critical. This is the future.”
Data compiled by The Superyacht Group, a publisher focused on the superyacht market, estimates that the total fleet of yachts over 30 metres in length will continue to grow at a healthy clip over the foreseeable future to 7,500 ships in 2031, compared to 6,270 at the end of 2021. Secondly, after 20 years of steady industry growth, the maintenance and refitting needs of the fleet are rising, as owners seek both to modernise their vessels and to reduce their environmental footprints.
FLEET GROWTH FORECAST (OVER 24 METRES)
Source: The Superyacht Group
Source: The Superyacht Group
Source: SuperYacht Times
Source: Superyacht Times
Source: Superyacht Times
MB92 Group is one of the world’s largest superyacht refitters, with facilities in Barcelona, La Ciotat, and the Red Sea. With over 380 direct employees and more than 1,750 indirect employees, MB92 Group focuses exclusively on maintaining, refitting and rebuilding superyachts. This makes the company a key player in the industrial fabric of its locations, as it continually seeks highly skilled specialists for its projects.
The shipyards have invested heavily in infrastructure to accommodate the largest vessels in the industry. The shiplift in Barcelona, with a capacity of 4,800 tonnes, is the largest of its kind in the world. Additionally, a shiplift in La Ciotat, with a capacity of 4,300 tonnes, began operations in 2022.
36%
Direct employees
+380 Of the total workface is female (2023)
3,579
Hours dedicated to training in 2023
€172,855
Social contributions to support sustainable development in 2023
THE COMBINATION OF MB92 BARCELONA, MB92 LA CIOTAT AND MB92 RED SEA PROVIDES VIRTUALLY LIMITLESS DOCKING SOLUTIONS:
4 travel lifts/ high capacity crane
600t crane
300t travel lift
300t travel lift
150t travel lift
4 shiplifts
4,800t: 9 slots
2,000t: 4 slots
2,000t: 4 slots
4,300t: 6 slots
2 dry docks
220 metres 200/350 metres
When MB92 first created a managerial position entirely dedicated to sustainability issues in 2020, many others in the yachting industry struggled to understand why. The role remains an outlier in the sector, but it is a mark of how far it has progressed that it is no longer necessary to explain why we took this decision.
Indeed, the growing acceptance of the need for sustainability managers represents an inflection point for the yachting industry. With that very first obstacle largely overcome, it is now a question of putting what we are learning into practice across our organisation and across our industry. It is time for action.
At MB92, we are currently focusing on three core people management areas. First, we must do better at attracting and retaining talent. Young people today demand much more of their prospective employers than they used to. If we cannot demonstrate that we are addressing sustainability issues, we risk missing out on a pool of talent that we cannot afford to ignore.
But it is not just about those joining the industry at the start of their careers. We also need to do more to attract experienced talent from outside our sector too – especially those with skills and knowledge in areas that have seen the most change, such as engineering and software – in order to support the transition. This is indispensable to inject new perspectives into our ways of operating.
Second, we also need to improve education and training. This is why we are working closely with academia so that young people are adequately prepared for the sustainability challenges that face the yachting industry. We are also providing constant training to our existing
The growing acceptance of the need for sustainability managers represents an inflection point for the yachting industry
employees – at all levels – to ensure that we keep up with fast-moving change. This includes retaining knowledge from experienced and senior members of our team, so we have developed our own training platform and database to complement new skills as they emerge. In 2023, we completed 3,579 hours of training across the group, up from 2,961 hours in 2022.
Third, we continue to work persistently to address the gender imbalance. MB92 has taken great strides in this area, at all levels of seniority, and we are broadly in line with other industries. In 2022, we started implementing our Equal Opportunities Plan and have already seen a slight increase, from 26.2% to 26.5%, of the proportion of women in the workforce between 2022 and 2023. But there is always more to do to foster change across the industry. That starts with enticing more female students to take degrees in naval engineering and similar subjects. More challenging is how to promote and protect female workers on board yachts.
The transition towards a more sustainable future cannot succeed without a prepared and engaged workforce. If we don’t continue to adapt, we risk compromising the very future of our industry. Some players, including MB92, are already leading the way. But, as this report shows, a more coordinated approach is needed.
In fact, tackling these issues at industry level will be indispensable to address the existential threat posed by the sustainability challenge. Fortunately, the will is there – which explains the progress made so far. New practices that were unthinkable not so long ago, have now become normal. But this is only the beginning of the journey.
THANKS TO
Benedict Mander – Moderator & Writer | Carmen Sánchez - Culture & HR Director at MB92 Group | Claire Ferandier-Sicard – CEO & Founder at ETYC | Giles Barkley – Course Leader, Yacht Design Portfolio at Solent University | Jesús Marrodán – Senior Client Partner at Korn Ferry | Jordi Fonollosa - ViceDean of International Relations and Research at Facultat de Nàutica de Barcelona | Marc Hervás – Sustainability Manager at MB92 Group | Marco Taricco - Founding Partner & Co-CIO at Bluebell Capital Partners | Nigel Marrison – Founder & Director at Blue ESG | Paulina Gallant – Senior Partner, HR at Winch Design | Our global network of suppliers | All the Captains and company representatives who participated in the preliminary research for this report
info-barcelona@mb92.com
info-laciotat@mb92.com info-redsea@mb92.com
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