Cadeler A/S

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:23487.81 tCO2e/year

Scope 1 Emissions:6553.52 tCO2e/year

Scope 2 Emissions:7.78 tCO2e/year

Scope 3 Emissions:16926.51 tCO2e/year

Water Consumption:12769.00 m3/year

Waste Generated:195.64 m3/year

ESG Focus Areas

Health and Safety
People
Environment
Governance

Environmental Achievements

Reduced plastic waste by switching to reusable shoe covers in 2021 (projected 2450 kg reduction)
Offsetting Scope 1 and 2 emissions since 2011 through investment in a REDD+ project
Achieved a Medium Green rating from CICERO Shades of Green for its environmental performance

Social Achievements

Achieved a goal of having at least one woman on the Board of Directors before 2020
Implemented a diversity requirement at the interview stage for managerial positions
Zero incidences of corruption and no breaches of the Code of Conduct reported in 2020

Governance Achievements

Established various company policies including Health and Safety, Human Rights, Environmental, Sustainable Development, Financial Governance, People, Supply Chain Sustainability Code of Conduct, Procurement, Stop Work, Corporate Code of Conduct, and Quality Policy
Implemented Safety Management System (SMS), Environmental Management System (EMS), and Quality Management System (QMS)
Achieved ISO 9001 and ISO 14001 certifications

Climate Goals & Targets

Long-term Goals:

Contribute to the International Maritime Organization’s (IMO) goals for the shipping sector

Medium-term Goals:

Achieve two women on the Board of Directors by the end of 2022
30% women in management positions by 2025

Short-term Goals:

Reduce carbon intensity of operations by 3% year on year
Switch to reusable shoe covers onboard, reducing plastic waste

Environmental Challenges

Pandemic era regulations and restrictions impacting vessel operations
Reducing the environmental impact of vessel operations
Reducing consumption of single-use plastics
Maintaining ethical business practices across the supply chain

Mitigation Strategies

Comprehensive restructuring and rebranding to become an independent, publicly listed company
Investment in greener vessel designs (shore power connections, battery packs, biofuels, fuel cells)
Initiatives to reduce single-use plastics (reusable water bottles, shoe covers)
Annual review of company policies and proactive approach to upholding values across the supply chain

Supply Chain Management

Responsible Procurement

Supply Chain Sustainability Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

Investment in greener vessel designs

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, DNVGL (ISM)

Third-party Assurance: CICERO Shades of Green

UN Sustainable Development Goals

SDG 7
SDG 12
SDG 13
SDG 14

Cadeler's core business is installing and maintaining offshore wind farms, contributing to renewable energy (SDG 7); actively seeking solutions to reduce environmental impacts (SDG 12); reducing its carbon footprint (SDG 13); minimizing impact on the marine environment (SDG 14).

Sustainable Products & Innovation

X-Class Green Design vessel

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:37269.9 tonnes CO2e

Scope 1 Emissions:6,631.61 tonnes CO2e

Scope 2 Emissions:15.65 tonnes CO2e

Scope 3 Emissions:30,632.74 tonnes CO2e

Water Consumption:11,672.00 m3

Waste Generated:279.4 m3 (plastic waste from vessels)

ESG Focus Areas

Health and Safety
People
Environment
Governance

Environmental Achievements

Avoided purchasing single-use water bottles for vessels in 2021.
Achieved zero spills of hydrocarbons or other toxic substances into the oceans.
Installed D2-compliant ballast water treatment systems on vessels, avoiding the introduction of invasive species.
Invested in improved fuel tracking systems on Wind Orca and Wind Osprey.

Social Achievements

Became a signatory of the UN Global Compact.
Signed Danish Shipping’s “Charter for More Women in Shipping”.
Moved Wind Osprey and Wind Orca under the Danish flag, improving seafarers' employment terms and conditions.
Implemented a management training program for four employees.

Governance Achievements

Rewrote safety management manual and implemented new permit-to-work systems.
Adapted management systems to fit Cadeler’s new company structure.
Improved supply chain management processes to ensure compliance with company values.

Climate Goals & Targets

Long-term Goals:

Achieve net zero greenhouse gas emissions by 2035.

Medium-term Goals:

Reduce carbon intensity of operations by 3% year-on-year.

Short-term Goals:

Install fuel monitoring systems on Wind Orca and Wind Osprey by end of 2022.
Select at least one additional investment in technological improvements to reduce emissions from O-class vessels by end of 2022.

Environmental Challenges

Reducing the environmental impact of vessel operations.
Improving corporate governance and responsible operations.
Ensuring fair treatment of employees and supply chain personnel.

Mitigation Strategies

Investing in new-build assets with lower carbon emissions and adaptability for renewable technologies.
Identifying improvements to existing O-class installation vessels.
Implementing improved fuel monitoring systems.
Joining the UN Global Compact and Danish Shipping’s “Charter for More Women in Shipping”.
Strengthening supply chain management systems to ensure supplier compliance.

Supply Chain Management

Responsible Procurement

Supply chain sustainability code of conduct outlining expectations for human rights, environment, health and safety, business ethics, and community issues.
Procurement policy outlining best-practice procurement practices and standards.

Climate-Related Risks & Opportunities

Opportunities

Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards (inspired by)

Certifications: ISM (DNVGL), ISO 14001 (DNVGL), ISO 9001 (DNVGL), ISO 45001 (working towards)

Third-party Assurance: DNVGL (financial data), No explicit mention for other data

UN Sustainable Development Goals

SDG 7
SDG 8
SDG 12
SDG 13
SDG 14

Cadeler's core business contributes to SDG 7 (affordable and clean energy) by installing offshore wind farms. The company addresses SDG 8 (decent work and economic growth) through its focus on employee well-being and development. SDG 12 (responsible consumption and production) is addressed through efforts to reduce environmental impact. SDG 13 (climate action) is supported through emission reduction targets. SDG 14 (life below water) is addressed through marine environmental protection initiatives.

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:25,593.74 tCO2e/year

Scope 1 Emissions:3,204.56 tCO2e/year

Scope 2 Emissions:22.15 tCO2e/year

Scope 3 Emissions:22,367.03 tCO2e/year

Renewable Energy Share:0%

Water Consumption:9,856.65 m3/year

Waste Generated:182.80 m3/year

Carbon Intensity:103.9 tCO2e/MW installed or serviced in 2022

ESG Focus Areas

Health and safety of employees
Emission reduction
Marine environment protection
Positive workplace environment
Corporate responsibility
Circularity and resource consumption

Environmental Achievements

Installation of fuel monitoring systems on O-class vessels (expected to reduce fuel consumption)
Planning for shore power connections on O-class vessels
Commitment to leasing only electric vehicles or vehicles running on renewable fuel cells from the end of 2023
Commitment to sourcing 100% of its electricity consumption from renewable sources by 2030
Two minor spills in 2022, involving a release of less than 10 litres each

Social Achievements

Redeveloped safety management system
Initiated a safety leadership programme
Introduced a monthly safety award
Moved Wind Osprey and Wind Orca under the Danish flag, improving seafarers' working conditions
Establishment of a People and Culture department

Governance Achievements

Migrated to a fully integrated HSEQ management system
Implementation of a new process for gathering suppliers’ agreements to uphold company policies
Supplier audits to ensure standards are upheld
Inclusion of adherence to the Supply Chain Code of Conduct as a contractual obligation for suppliers

Climate Goals & Targets

Long-term Goals:

Net zero emissions by 2035

Medium-term Goals:

Net zero operations by 2035
Reduction of company-wide scope 1 and 2 emission intensity by 50% by 2030
Sourcing 100% of its electricity consumption from renewable sources by 2030

Short-term Goals:

Reduce waste from its own operations by 50% by 2030
100% of key personnel trained on core responsible business topics by 2024
Achieve 30% women in onshore management positions by end of 2025

Environmental Challenges

Loss of revenue if vessels are taken out of operation or new builds are delayed
Potential problems affecting China, component availability, or shipyard issues leading to delays in new builds
Risks associated with marine operations (breakdowns, weather, pollution, collisions)
Difficulty obtaining future vessel cover and potential utilization drop
Foreign exchange risks due to USD commitments for new vessels
Challenging terms and covenants in debt financing agreement
Liquidity risks related to milestone payments on new vessels
Macroeconomic risks (global economy, political conditions, currency fluctuations, inflation, geopolitical tensions)
Interest rate risks

Mitigation Strategies

Implementation of technological advancements across the fleet to reduce emissions
Green design elements in new X-class and F-class vessels (shore power, fuel-efficient engines)
Fuel monitoring systems and shore power connections for O-class vessels
Company car policy to limit emissions
Partial currency swaps to EUR for USD commitments
Exploration of various funding options, including export credit agencies support
Interest rate swap contracts to partially mitigate interest rate risk
Stringent procedures on extending credit terms to customers and monitoring credit risk
Maintaining sufficient cash and credit facilities to meet operational needs

Supply Chain Management

Responsible Procurement

Supply Chain Sustainability Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

Harsh weather conditions

Transition Risks

Regulatory changes

Opportunities

Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001:2015, ISO 45001, ISM

UN Sustainable Development Goals

SDG 3
SDG 7
SDG 8
SDG 10
SDG 12
SDG 13
SDG 14

Cadeler's initiatives contribute to these goals through its focus on health and safety, emission reduction, marine environment protection, workplace environment, corporate responsibility, and circular economy.

Sustainable Products & Innovation

Energy-efficient X-class and F-class vessels

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

Decarbonization
Sustainable Practices

Environmental Achievements

Wind Orca and Wind Osprey crane replacements reduced project costs and minimized vessel off-hire time.
50% reduction of scope 1 & 2 emission intensity by 2030 target.
Waste reduction from operations by 50% by 2030 target.

Social Achievements

Post-merger integration program set up, with solid progress across all workstreams.
New organization defined with representation from both Cadeler DK and Cadeler UK across all management levels.
Strong partnerships with clients, enablers, and suppliers.

Governance Achievements

Dual listing on the New York Stock Exchange successfully completed on December 21st.

Climate Goals & Targets

Long-term Goals:

Net zero operations by 2035.

Medium-term Goals:

Waste reduction from operations by 50% by 2030.

Short-term Goals:

50% reduction of scope 1 & 2 emission intensity by 2030.

Environmental Challenges

O-class crane upgrade and Scylla dry-dock impacting 2024 FY.
Supply chain and grid expansions under significant pressure.
Increasing demand for offshore wind not offset by equal increase in supply of capable installation vessels.
Value chain bottlenecks and project delays.

Mitigation Strategies

Secured EUR 1,105M in funding for CAPEX program.
Expansion of performance guarantee lines from EUR 60M to EUR 100M.
Partnership driven approach to support clients.
Largest, most capable, and versatile offshore wind jack-up fleet.
Next-generation vessels optimized with longer legs and higher carrying capacity.
Continued innovation in processes and equipment to optimize efficiency.