The above diagram follows the ABYC's recommended connection. The shield
goes only to the green shore cable grounding wire. The transformer's
metal case is connected to the boat's AC ground.
Charlie Wing's Handbook of Wiring conforms with the ABYC recommendations.
It is not clear what is represented in this circuit. The shield appears
to be connected to the boat's AC ground system and the shore cable
grounding wire appears in the circuit to be left unconnected. I have not
encountered this and do not recommend it. If you are using a Sterling
transformer, you might email them raising the issue.