Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment and climate
• Employees and diversity
• Responsible business practices

Environmental Achievements

• 20.5% decrease in rate of work-related injuries per million working hours.
• Obtained external assurance of calculation of indirect scope 3 carbon emissions.

Social Achievements

• 20.5% decrease in rate of work-related injuries per million working hours.
• Improved employee safety

Governance Achievements

• Became a UN Global Compact signatory in 2021.
• Launched updated Code of Conduct for Employees, covering sustainability issues.

Climate Goals & Targets

Environmental Challenges

• Decarbonising the transport sector on a global scale is limited with current technology and lack of ability to scale low carbon emission solutions.
• Increased costs from carbon taxes and inclusion in emissions trading schemes.
• Risk of corruption in interactions with public authorities.

Mitigation Strategies

• Collaboration with customers and support from suppliers to reduce carbon emissions.
• Legal Compliance Program to prevent, detect, and mitigate risks regarding corruption, foreign trade controls, and competition laws.
• Due diligence on third parties interacting with government.

Supply Chain Management

Responsible Procurement

• Codes of Conduct towards employees and suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Increased costs from carbon taxes and inclusion in emissions trading schemes

Opportunities

• Minimising greenhouse gas emissions to differentiate business in the market

Reporting Standards

Frameworks Used: UN Global Compact, EU Taxonomy Regulation

Certifications: ISO 9001, ISO 14001

Third-party Assurance: PricewaterhouseCoopers (limited assurance on Scope 3 carbon emissions)

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 16
• SDG 17

The report addresses progress and activities related to material topics for NTG's sustainability areas and will therefore not include a dedicated one-to-one review of results regarding the committed topics in UNGC or SDG’s, as we consider the intention behind these as embraced by the topics covered.

Environmental Metrics

ESG Focus Areas

• Environment and climate
• Employees and diversity
• Responsible business practices

Environmental Achievements

• Installed two rooftop solar panel systems in Netherlands and Sweden, producing electricity equivalent to the consumption of 149 Dutch households.
• Implemented a company car policy allowing only electric or plugin hybrid electric vehicles. 28% of company cars are now powered by electricity or a combination of electricity and fossil fuels.

Social Achievements

• Increased gender diversity among employees and at managerial level.
• Number of days of absence due to work-related incidents decreased despite an increase in the number of incidents.

Governance Achievements

• Updated Code of Conduct for employees and suppliers to include sustainability issues.
• Established an ISO legal register and implemented a governance framework within NTG Group ISO companies.
• Improved scores from rating agencies Ecovadis and Morningstar Sustainalytics.

Climate Goals & Targets

Environmental Challenges

• Persistent supply and demand pressures leading to market volatility.
• Increase in number of work-related incidents, especially among hourly paid employees at warehouses and terminals.
• More than 98% of total carbon emissions originate from subcontracted transports, requiring significant effort to reduce carbon footprint.
• Limited availability of alternatives to fossil fuels in the transport sector.

Mitigation Strategies

• Commitment to join the Science Based Targets initiative (SBTi) with an ambition to reduce carbon footprint in line with limiting global warming to 1.5°C.
• Optimising customers' supply chains, assessing transport modes, and choosing decarbonising alternatives where possible.
• Implementing ESG clause in property lease agreements to support initiatives to reduce carbon emissions.
• Phasing out fossil-fuelled company cars.
• Local incident procedures in place to prevent work-related injuries, with all incidents registered and examined.
• Increased focus on sanctions compliance and due diligence of NTG’s supply chain.

Supply Chain Management

Supplier Audits: Yearly compliance audits and spot checks performed through remote audits, questionnaires and checklists.

Responsible Procurement

• Updated Supplier Code of Conduct.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: UN Global Compact, EU Taxonomy Regulation

Certifications: ISO 9001 (Quality), ISO 14001 (Environment)

Third-party Assurance: PricewaterhouseCoopers (limited assurance on scope 3 emissions)

UN Sustainable Development Goals

• Goal 8: Decent work and economic growth
• Goal 12: Responsible consumption and production
• Goal 16: Peace, justice and strong institutions
• Goal 17: Partnerships for the goals

NTG's sustainability strategy and targets aim to support these SDGs through various initiatives.

Environmental Metrics

ESG Focus Areas

• Environment and climate
• Employees and diversity
• Responsible business practices

Environmental Achievements

• 46% of NTG's company cars are fully or partially powered by electricity.
• >330,000 litres of HVO fuel used to decarbonise transport solutions offered to customers
• > 700,000 tonnes of CO2e emissions saved compared to the standard bio-blended diesel
• Significant decrease in the number of work-related injuries (+60% decrease in rate)

Social Achievements

• ~1,200 Street children supported every day through Gadens Børn’s 12 difference-making projects.
• Improved occupational safety with a significant decrease in work-related injuries.
• Increased employee diversity initiatives

Governance Achievements

• Achieved equal gender distribution on the Board of Directors (2/7 female representation).
• 83% completion rate of Code of Conduct training in 2023.
• 69% of the Group's revenue is generated in ISO certified companies (up from 66% in 2022).

Climate Goals & Targets

Environmental Challenges

• Difficulty in building trustworthy reduction targets for emissions from subcontracted transports (95% of total emissions).
• Limited alternatives to fossil fuels in the transport sector.
• Additional costs associated with sustainable alternatives.
• Challenges in deploying battery electric vehicles (BEVs) due to cost, capacity, range, and charging infrastructure limitations.

Mitigation Strategies

• Collaborating with customers and suppliers to reduce carbon emissions.
• Optimising customer supply chains and transport modes.
• Introducing bio-based HVO fuel.
• Exploring the use of battery electric vehicles (BEVs).
• Implementing a Group policy allowing only electric or plug-in hybrid electric vehicles as company cars.
• Switching to electric forklifts in terminals and warehouses.
• Expanding the installation of solar panels on building roofs.

Supply Chain Management

Supplier Audits: Yearly compliance audits and spot checks

Responsible Procurement

• Code of Conduct for suppliers

Climate-Related Risks & Opportunities

Transition Risks

• Increased costs for sustainable alternatives
• Regulatory changes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: United Nations Global Compact, GRI, EU Taxonomy Regulation

Certifications: ISO 9001 (Quality), ISO 14001 (Environment)

Third-party Assurance: PricewaterhouseCoopers (limited assurance on scope 1, 2, and 3 carbon emissions)

UN Sustainable Development Goals

• Goal 8: Decent work and economic growth
• Goal 12: Responsible consumption and production
• Goal 16: Peace, justice and strong institutions
• Goal 17: Partnerships for the goals

NTG's sustainability strategy aligns with these SDGs through codes of conduct, sustainable practices, ethical business conduct, and stakeholder collaboration.