Climate Change Data

Höegh Autoliners ASA

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1,435,025 tCO2e/year (Scope 1, 2 market-based, and 3)
Scope 1 Emissions:1,103,090 tCO2e/year
Scope 2 Emissions:590 tCO2e/year (market-based)
Scope 3 Emissions:331,340 tCO2e/year (estimated)
Renewable Energy Share:2% of total energy use (biofuel)
Total Energy Consumption:15,157 GJ/year
Waste Generated:12,590 m3/year
Carbon Intensity:5.15 g CO2/GT*Nm (2023)

ESG Focus Areas

  • Climate change
  • Own workforce
  • Business conduct
  • Pollution
  • Resource use and circular economy
  • Biodiversity and ecosystems
  • Workers in the value chain

Environmental Achievements

  • Reduced carbon intensity by 38% from 2008 levels
  • More than 80% of the fleet received a CII rating of C and above in 2023
  • 100% increase in biofuel volumes purchased and consumed in 2023 compared to 2022
  • Ordered technical upgrades for 12 vessels to enhance energy efficiency
  • Ordered cargo deck LED lights for 30 vessels to reduce energy consumption
  • Exercised option to build four additional Aurora Class vessels (9-12), bringing the total to twelve

Social Achievements

  • Increased land-based employee headcount by 69 positions
  • Maintained overall positive employee engagement score of 80%
  • Increased paid maternity leave in Manila to six months (180 days)
  • Zero overstays of crew beyond the maximum period onboard of 11 months
  • Initiated collaboration with Höegh LNG on gas safety and handling training for officers

Governance Achievements

  • Release of Sustainability Linked Financing Framework
  • Formalising partnership with Sumitomo Corporation for clean ammonia supply
  • Strategic partnership with VARO for advanced biofuel supply
  • Implemented Human Rights Policy with associated whistleblowing system

Climate Goals & Targets

Long-term Goals:
  • Reach net-zero emissions by 2040
Medium-term Goals:
  • Reduce carbon intensity by more than 30% from 2019 levels by 2030
  • Run at least 5% of deep sea operations on green ammonia or methanol by 2030
Short-term Goals:
  • Zero casualties (2024 and 2025)
  • Zero oil spills (2024 and 2025)
  • Newbuildings delivered with 100% LED lights (2024)
  • 5% reduction in plastic generation (2024)

Environmental Challenges

  • Supply chain disruptions due to extreme weather (Panama Canal drought)
  • Temporary rerouting of Red Sea transits due to risk level
  • Availability and cost of alternative fuels
  • Meeting decarbonisation expectations of stakeholders
  • Technology risks related to fuel technology for fleet transition
  • Commercial availability and economic viability of green fuels
  • Customer willingness to participate in green transition
  • Potential physical risks from increased frequency of flooding and droughts
  • Tougher weather conditions impacting seafarer health and safety
  • Potential political instability impacting operations
Mitigation Strategies
  • Securing income via longer-term customer contracts with higher rates
  • Reducing capacity costs by declaring purchase options for vessels
  • Optimizing fleet in preparation for newbuilds
  • Partnering with ammonia suppliers for future fuel supply
  • Partnering with VARO for advanced biofuel supply
  • Continuous assessment of decarbonisation strategy
  • Implementing fuel saving technologies
  • Regular use of advanced biofuels
  • Offering carbon-neutral operations to customers
  • Improving fleet energy efficiency
  • Phasing out legacy tonnage
  • Implementing safety barriers such as crew safety awareness campaigns and pre-PSC inspections

Supply Chain Management

Supplier Audits: 100% of new suppliers covered by third-party sanction screening

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
  • Droughts
  • Operational downtime
  • Increased operational costs
  • Impact on seafarer health and safety
  • Political instability
Transition Risks
  • Inability to decarbonize operations at expected pace
  • Technology risks related to fuel technology
  • Market risk related to green fuel availability and viability
  • Customer willingness to participate in green transition
  • Non-compliance with EU ETS leading to increased operational costs
Opportunities
  • Increased fleet energy efficiency reducing operational expenses
  • Assisting in decarbonisation of customer supply chains
  • Competitive advantage in tenders
  • Increased volumes from electric vehicle shipments
  • New strategic partnerships

Reporting Standards

Frameworks Used: GRI, GHG Protocol, SASB Maritime standard, EU Taxonomy, TCFD

Certifications: ISO 45001

Third-party Assurance: PwC (Scope 1 and 2 emissions)

UN Sustainable Development Goals

  • UN SDG Goals (implied through UNGC membership)

Supporting the UN’s 10 principles and 17 Sustainable Development Goals

Sustainable Products & Innovation

  • Aurora Class vessels (zero-carbon ready, multi-fuel)