Climate Change Data

Hector Rail Group (consisting of Hector Rail AB and Hector Rail GmbH)

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:1.00 metric tons CO2e per 1,000,000 gross ton-km
Renewable Energy Share:100% for train operations in Sweden, Norway, Denmark, and Germany
Total Energy Consumption:18.36 Wh/gross ton-km

ESG Focus Areas

  • Safety
  • Green Value Creation
  • Promoting Diversity & Inclusion
  • Sound Business Ethics
  • Promoting Rail Transportation

Environmental Achievements

  • 100% renewable energy for train operations in Sweden, Norway, Denmark, and Germany from sustainable CO2e neutral energy sources (wind and hydro power).

Social Achievements

  • Increased percentage of women in management positions to 30% from 29% in 2020.
  • Increased percentage of women in Hector Rail Group to 21%.

Governance Achievements

  • Updated Code of Conduct fully rolled out in HRAB and included in the onboarding program for all new employees.
  • New Social Media guideline implemented and rolled out for all employees.

Climate Goals & Targets

Medium-term Goals:
  • Women in Management positions: 40%
  • Women in Hector Rail Group: 25%
  • Employee satisfaction: above 75%
Short-term Goals:
  • Decrease GHG emissions by 2% per annum.
  • Decrease energy usage by 2% per annum.
  • Decrease infrastructure waiting time by 10% per annum (HRAB).

Environmental Challenges

  • Serious accident in HRAB causing derailment.
  • Three high-risk safety incidents in HRGmbH.
  • Increased energy usage compared to 2020 due to improvements in energy usage measurement and introduction of passenger traffic.
  • Infrastructure waiting time of 12.1% for T21 and 12.0% for T22 (target not achieved).
  • Increased infrastructure fees in Sweden (23%) and Germany (3%) from 2020 levels.
Mitigation Strategies
  • Detailed root-cause analysis and action plans implemented after the accident in HRAB.
  • Dialogue with ECM IV agencies to avoid similar events in HRGmbH.
  • Ongoing modernization of the fleet and optimization of locomotives.
  • Lobbying for less waiting time in timetables.
  • Working with Tågföretagen to argue for reduced infrastructure fees.

Supply Chain Management

Responsible Procurement
  • Hector Rail uses large, well-established European suppliers with their own sourcing strategies.

Climate-Related Risks & Opportunities

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Data collection started in 2023; material emissions identified from purchased goods and services, capital goods, transportation and distribution, and business travel.
Renewable Energy Share:100% (secured proof of origin for all operational electricity in GmbH)
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:0.88 gCO2e per gross ton-km in 2023

ESG Focus Areas

  • Working Conditions
  • Diversity and Equality
  • Energy Efficiency
  • Climate Change

Environmental Achievements

  • Decreased energy usage by 1.2% to 17.33 Wh per gross ton-km (compared to 17.53 in 2022).
  • Decreased GHG emissions by 3.3% to 0.88 gCO2e per gross ton-km (compared to 0.91 in 2022).
  • Increased net ton-km to 4.9 billion (first time measured).

Social Achievements

  • Increased the number of women in management positions to 31.4% (from 27.8% in 2022).
  • Maintained LTIs below 2 per 100,000 working hours at 1.7.
  • Offered free counseling and psychological support to all employees (starting September 2023 for HRAB).

Governance Achievements

  • Implemented a new HR and recruitment system in HRAB.
  • Updated internal Code of Conduct to cater for the Whistleblower Protection Act (HinSchG) in GmbH.
  • Maintained ISO certifications (9001, 14001, 27001 for HRAB; 9001 for GmbH).

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve maximum of 0.8 gCO2e per gross ton-km by 2028.
  • Increase number of women in management positions to >50% by 2028.
  • Increase number of women in Hector Rail Group to >30% by 2028.
Short-term Goals:
  • Reduce energy usage by 2% per year.
  • Reduce GHG emissions by 2% per year.
  • Increase net ton-km by 2% per year.

Environmental Challenges

  • Global unrest and supply chain disruptions.
  • Shortage of operational staff and loco drivers.
  • Increased infrastructure charges.
  • Surging energy prices and volatility.
  • Complex energy acquisition due to high prices and competition.
  • Challenging electricity-price brake application process in Germany.
Mitigation Strategies
  • Close monitoring of energy markets.
  • Securing proof of origin of renewable energy for all operational electricity volume in GmbH.
  • Continuous modernization of the loco fleet and optimization of locomotives.
  • Implementation of eco-driving training and emission feedback to drivers.
  • Utilization of loco simulators in training.
  • Lobbying for electrifying tracks that require diesel locomotives.

Supply Chain Management

Supplier Audits: Audits of critical suppliers to improve quality of delivery and cooperation.

Responsible Procurement
  • Supplier Code of Conduct
  • Information Security Supplier Guideline

Climate-Related Risks & Opportunities

Physical Risks
  • Forest fires, storms, droughts, and floods
Transition Risks
  • Increased infrastructure fees
  • Surging energy prices
  • Stricter sustainability reporting legislation
Opportunities
  • Promoting rail transport as a sustainable alternative

Reporting Standards

Frameworks Used: CSRD (reporting planned for 2026)

Certifications: ISO 9001 (GmbH & HRAB), ISO 14001 & 27001 (HRAB), ECM (HRAB & GmbH)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 7 (Affordable and clean energy)
  • SDG 8 (Decent work and economic growth)

Alignment considered during materiality assessment.

Sustainable Products & Innovation

  • Modern and more efficient locomotives

Awards & Recognition

  • Not disclosed