Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Decent Work and Economic Growth
• Life below Water

Environmental Achievements

• Reduced CO2 emissions by 3% compared to 2019 (696,888 tCO2e vs 801,578 tCO2e)
• Achieved a 20% reduction in GHG emissions compared to 2008.
• 18,000 Green Operations performed, saving 34,500 tons of fuel (108,000 tons of CO2 avoided)
• ISO 50001 Energy Management certified

Social Achievements

• Implemented the safety behavior and culture program “Solstad Incident Free Operations” (SIFO), considerably reducing incidents.
• Three work-related lost-time injuries in 2020 (TRCF of 1.28)
• Implemented a ‘Whistleblower’ arrangement.
• Sick leave onshore was 1.6% in 2020, down from 2.0% in 2019

Governance Achievements

• Successful restructuring completed on October 20, 2020
• Simplified company structure
• Reduced debt by NOK 9.6 billion
• Adheres to the Norwegian Code of Practice for Corporate Governance

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions due to overcapacity of OSVs and the COVID-19 pandemic.
• Decline in oil and gas activity.
• Crew changes impacted by travel restrictions and COVID-19.
• Dispute with Saipem regarding payment of a termination fee of USD 44.3 million

Mitigation Strategies

• Comprehensive restructuring process.
• Vessel divestment.
• Proactive measures to minimize COVID-19 disruption.
• Legal pursuit of termination fee from Saipem.
• Ongoing discussions with Maximus Limited to find a solution for Normand Maximus lease financing.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISM, ISO 14001:2015, ISO 9001:2015, ISO 45001:2018, ISO 50001:2018, MLC, ISPS, STCW 10

UN Sustainable Development Goals

• SDG 8
• SDG 13
• SDG 14

Solstad actively uses the UN Sustainable Development Goals (SDG) to align its commitments.

Environmental Metrics

ESG Focus Areas

• Safety
• Emissions Reduction
• Diversity and Inclusion

Environmental Achievements

• 1 percent improved fleet fuel efficiency through technical and operational measures
• 28 percent reduction in single-use plastic water bottles (65,600 bottles), leading to a 9-ton CO2 reduction
• Nine hybrid vessels resulting in an annual fuel reduction of 10-15 percent

Social Achievements

• 44 percent increase in the number of female seafarers (from 147 to 212)
• Total Recordable Cases Frequency (TRCF) record low at 1.19
• Three Lost Time Incidents (LTI) recorded

Governance Achievements

• Establishment of a dedicated sustainability department led by the Chief Sustainability Officer (CSO)

Climate Goals & Targets

Environmental Challenges

• Total fleet CO2 emissions increased by 2.1 percent due to higher operational activity
• Difficulty in achieving 100 percent reduction in single-use plastic bottles due to varying views, opinions, cultures, crews, and clients
• Covid-19 pandemic causing disruptions to crew changes and other operations

Mitigation Strategies

• Detailed implementation plan to install zero-emission technology on vessels
• 50 percent reduction target for single-use plastic bottles in 2022
• Implemented monitoring and response systems to adapt to Covid-19 challenges

Supply Chain Management

Supplier Audits: 9/year

Responsible Procurement

• Suppliers must satisfy strict criteria including documented HSE management system, avoidance of scarce resources, ethical guidelines, anti-corruption measures, adherence to UN Global Compact principles, and compliance with sanctions authorities.

Climate-Related Risks & Opportunities

Physical Risks

• Worsening weather conditions

Transition Risks

• Decreased market demand for existing vessel types

Opportunities

• Increased global market for vessels related to offshore wind farm construction

Reporting Standards

Frameworks Used: Norwegian Shipowners’ Association Guidelines for ESG reporting, TCFD, GRI

Certifications: ISM, ISO 14001:2015, ISO 9001:2015, ISO 45001:2018, ISO 50001:2018, MLC, ISPS

Third-party Assurance: Governance Group

UN Sustainable Development Goals

• SDG 8
• SDG 13
• SDG 14

Aligned with SDGs 8, 13, and 14 based on materiality assessment

Sustainable Products & Innovation

• Three zero-emission vessel designs developed

Environmental Metrics

ESG Focus Areas

• Safety
• Emissions Reduction
• Diversity and Inclusion
• Responsible Operations
• Supply Chain Sustainability
• Human Rights

Environmental Achievements

• Reduced single-use plastic water bottles by 31% (72,000 bottles), leading to a CO2 reduction of 9.1 tons.
• Decreased oil spills to 153 liters in 2022 from 293 liters in 2021 and 348 liters in 2020 despite increased operational activity.
• Achieved a KPI of 20 Solstad Green Operations (SGO) per day per vessel.
• Upgraded two more vessels with battery-hybrid systems, bringing the total to 10 hybrid vessels, resulting in an annual fuel reduction of 10-15%.
• Added one more vessel with shore power connection, bringing the total to nine.

Social Achievements

• Achieved a record low Total Recordable Cases Frequency (TRCF) of 1.24 and only four Lost Time Incidents (LTI).
• Increased the number of female seafarers by 44% and reached 6% of seafarers being women.
• Increased the percentage of female managers onshore to 22%, aiming for 35% by 2030.
• Implemented digital appraisal talks and My Plan (personal development plan) for all onshore employees in 2022, planning to include offshore employees.
• Conducted Norwegian Transparency Act due diligence and implemented minimum safeguards.

Governance Achievements

• Updated company-wide guidelines and directives for implementing corporate social responsibility and sustainability in the supply chain.
• Created, updated, and supplemented Solstad Frame Agreement, Solstad General Terms and Conditions, and Supplier Code of Conduct (SCoC).
• Conducted 10 supplier audit verifications.
• Became a member of Transparency International (TI).

Climate Goals & Targets

Environmental Challenges

• Increased total fleet CO2 emissions by 1% due to higher operational activity and more vessels in operation.
• Difficulty in reaching emission reduction targets without low-carbon fuels and new vessels with advanced technology.
• Challenges in reducing single-use plastic bottles to the target of 50%.
• COVID-19 related disruptions.
• War in Ukraine impacting crew sourcing.

Mitigation Strategies

• Focus on operational efficiency through Solstad Green Operations (SGO) program.
• Investment in battery-hybrid systems and shore power.
• Ongoing projects exploring hydrogen-based fuels and biogas, along with retrofit and newbuild initiatives.
• Implementation of monitoring and response systems to mitigate COVID-19 risks.
• Replacing Russian crew with Ukrainian or Filipino crew.

Supply Chain Management

Supplier Audits: 10/year

Responsible Procurement

• Supplier Code of Conduct (SCoC) covering general compliance, human rights, labor, business ethics, and improper business conduct.
• Requirements for documented HSE management systems (ISO 9001 or equivalent).

Climate-Related Risks & Opportunities

Physical Risks

• Worsening weather conditions

Transition Risks

• Regulatory changes (e.g., EU Taxonomy, ETS), market shifts
• Cost of green fuels

Opportunities

• Increased market demand for vessels related to offshore wind farm construction.

Reporting Standards

Frameworks Used: Norwegian Shipowners’ Association Guidelines for ESG reporting, TCFD, GRI

Certifications: ISM, ISO 14001:2015, ISO 9001:2015, ISO 45001:2018, ISO 50001:2018, MLC, ISPS

Third-party Assurance: DNV (for fleet emission data)

UN Sustainable Development Goals

• SDG 8
• SDG 13
• SDG 14

Focus on decent work and economic growth, climate action, and life below water.

Sustainable Products & Innovation

• Development of low/zero emission vessel concepts.

Awards & Recognition

• Årets Maritime Lærebedrift 2022 (Maritime Training Company of 2022)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Workforce
• Governance

Environmental Achievements

• 25% of total revenue came from non-oil and gas activities
• Strategic divestment of the PSV segment (37 vessels), increasing share of revenue from sustainable activities
• Reduced total fleet direct vessel CO2 emissions by 19% in 2023 to 582,280 tons compared to 720,101 tons in 2022
• Direct Scope 1 emissions reduced by 56% from 2022 to 2023 due to vessel sale and increased fuel efficiency
• Average fleet CO2 emissions per operational vessel day reduced by 3% in 2023 compared to 2022, even with higher activity
• Achieved KPI of 20 SGOs per day per vessel in 2023 (20.2 with 24,964 SGOs done)
• Reduced single-use water bottles by about 100,000 from 2022 to 2023
• In 2023, revenue from taxonomy-aligned activities was 22%
• In 2023, revenue for non-oil and gas-related activities was 25%

Social Achievements

• Increased share of female seafarers to 7% by end of 2023 (compared to 6% in 2022)
• Total share of female managers at 23% onshore (target of 30% by 2030)
• Seafarer retention rate of 94% in 2023
• Onshore staff retention rate of 90% in 2023
• Reduced number of crewing companies from 12 to 4 in 2023
• 64% of new onshore hires were women in 2023
• Increased number of female trainees to 10% in 2023
• Sick leave onshore was 1.3% in 2023 (down from 1.8% in 2022)

Governance Achievements

• Published first Transparency Act accounts in 2023
• Implemented a performance-based pay system for key executive management personnel
• No incidents related to Corruption and Bribery in 2023
• 84% of all employees completed Anti-corruption training in 2023

Climate Goals & Targets

Environmental Challenges

• Decarbonization of operations remains a challenge due to the lack of readily available green technologies and fuels
• Setting realistic emission reduction targets in the short and medium term is challenging without access to low-carbon fuels and new vessels
• Dependence on collaboration with customers to realize emission targets
• Lack of industry-wide recognized standard for proactive hull cleaning
• High risk for Solstad related to negative reputation, media exposure, legal issues and/or operational issues due to use of external Crewing companies and Shipyards

Mitigation Strategies

• Focus on energy efficiency through the Solstad Green Operations (SGO) program (approx. 20% fuel reduction since 2008)
• Upgraded 10 vessels with battery-hybrid systems and 9 with shore power systems (although many were later sold)
• Working with partners to develop next-generation vessels with significantly lower emissions
• Collaboration with clients to realize emission targets through newbuild and retrofit projects
• Introduced a new emissions parameter: average tons of CO2 per vessel per day in operation
• Implemented a range of measures to mitigate Crewing related risks (e.g., primarily employing own crew, using reputable crewing companies, complying with Solstad’s supplier Code of Conduct and MLC)
• Implemented a range of measures to mitigate Shipyard workers related risks (e.g., implementing Solstad’s supplier Code of Conduct, using selected shipyards, pre-meetings with shipyard management, spot checks for human rights breach, etc.)

Supply Chain Management

Supplier Audits: 10/year

Responsible Procurement

• Solstad Frame Agreement
• Solstad General Terms and Conditions
• Solstad Code of Conduct
• Supplier Code of Conduct (SCoC)
• Supplier Questionnaire
• Supplier Registration form
• Supplier Assessment

Climate-Related Risks & Opportunities

Physical Risks

• Increase in violent weather systems
• Damage to assets
• Interruption of operations
• Disruption to supply chains

Transition Risks

• Impacts of future carbon taxes or regulations
• Market demand decrease for existing vessels

Opportunities

• More business opportunities within the renewables sector
• Opportunities for vessels with low GHG footprint

Reporting Standards

Frameworks Used: Norwegian Shipowners’ Association Guidelines, TCFD, GRI

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, MLC, ISPS

UN Sustainable Development Goals

• SDG 8 – Decent Work and Economic Growth
• Other unspecified SDGs

Focus on areas where Solstad can have the most significant impact.

Sustainable Products & Innovation

• Unmanned Service Vessel (USV) reducing carbon footprint by more than 90%