Turning regulation into results: why compliance should be tied to your performance strategy

By Frederik Lerche-Tornoe, CEO of Oceanly

The maritime industry stands at a defining moment. As regulations like the Carbon Intensity Indicator (CII) and the European Union Emissions Trading System (EU ETS) now in force, we’re seeing a predictable split: some shipowners are reacting, others are adapting, and a few are leading.

What troubles me is how many are still treating these regulations as little more than a bureaucratic burden. For some, compliance has become a paperwork exercise. Tick the box, file the report, move on. But if we continue down that path, we’ll miss an even bigger opportunity. After all, these regulations are not intended to be administrative hurdles. They are meant to help transform the industry.

At Oceanly, we believe the only really effective approach to sustainability is to move beyond the requirements of industry compliance and focus on incorporating this more into your overall company performance.

The illusion of “good enough”

Let’s be honest. The temptation to do just enough to avoid penalties is strong, especially in an industry already grappling with tight margins, fluctuating fuel prices, and mounting technical complexity. But “just enough” doesn’t build future-ready fleets. It doesn’t attract environmentally conscious clients, nor does it impress stakeholders increasingly focused on ESG metrics.

CII and EU ETS are not static checklists, they’re signals for change. They offer shipowners a way to track efficiency and benchmark progress before regulatory or commercial consequences hit. If companies view these tools only through the lens of minimum compliance, they surrender a key strategic advantage.

The quest for data

One reason for the “compliance mindset” is the volume of data required. Owners and operators are collecting more information than ever, such as fuel consumption, voyage specifics and engine parameters, but too often they lack the systems or expertise to translate this data into actionable insight.

At Oceanly, we’ve seen how smarter data, not more data, can make a big difference. When you move from , say, excel sheets to automated, intelligent platforms, compliance becomes a natural process which forms part of optimising performance. You are much more likely to spot inefficiencies, benchmark vessel behaviour, and simulate scenarios that help avoid costly ETS allowances or improve your CII rating. In short, you stop reacting and start planning.

The commercial case for performance

There’s a growing business case for going beyond compliance. Charterers are already factoring CII ratings into their decisions. Cargo owners are asking about carbon footprint and financiers are pricing risk based on climate exposure. In this landscape, high-performing vessels command premium terms, not just because they’re greener, but because they’re smarter investments.

More broadly, proactive environmental performance helps to build your company’s reputation. It signals that your company isn’t just responding to change, it’s driving it.

So why the inertia? Why are many still stuck in the “tick-the-box” loop?

Part of the problem is the industry itself and its culture. Compliance has long been the language of safety and regulation in shipping. Shifting to a mindset of continuous improvement requires more than software or KPIs, it requires leadership.

So, I’m calling on fellow CEOs in the maritime industry. Let’s stop seeing regulations as roadblocks and start viewing them as enablers.

Yes, you should invest in digital solutions that turn data into decisions. But that’s not enough. We must also demand accountability, ask your teams to demonstrate how they’re using these tools to drive real outcomes.

Too often, I’ve seen so-called ‘performance’ platforms reduced to generators of monthly reports no one reads because they arrive too late. What is the point of collecting near real-time data if you're only going to review it a month after the voyage is over, after the ship has burned too much fuel, violated the TC agreement, or exceeded emissions limits? By that point, the damage is done.

Modern systems give us the power to act before things go wrong. So let’s use them wisely, not like glorified typewriters sending out after-the-fact summaries.

As CEOs, we must expect results and insist on a culture where managers understand what those results are, why they matter, and how their teams contribute. Sustainability isn’t a side project, it’s central to profitability and resilience.

A call to action

Regulations like CII and EU ETS are just the beginning. More will come. They will grow in complexity, scale and ambition. However, with the right tools and mindset, they can also fuel a smarter, leaner, greener maritime future. By doing the right thing for the environment should also become the best thing for your business, the future of the shipping industry, and, most importantly, our planet.