Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Air Quality
• Waste Management
• Health, Safety and Wellbeing
• Human and Labor Rights
• Diversity, Equity, and Inclusion
• Training & Development
• Innovation
• Quality of Service
• Sustainable Consumption
• Sustainable Supply Chain Management
• Tax Practices
• Sustainable Finance
• Corporate Governance

Environmental Achievements

• Reduced CO2e intensity (EEOI) from 33.51 gCO2 per tonne-km in 2021 to 30.38 gCO2 per tonne-km in 2022.
• First global shipping company to equip five vessels with an AI-tool to optimize voyages, reducing fuel consumption by up to 10%.
• Secured EUR 9m in funding from the Horizon Europe award for the Orcelle Wind project.
• Installation of ballast water treatment systems (BWTS) on nine company-owned vessels, bringing the total to 83% of the owned fleet.

Social Achievements

• Launched Mariners Medico Guide app for diagnosing and following up physical and mental disorders for seafarers.
• Implemented employee assistance programs in various locations to support employee mental health.
• Launched pilot programs with fixed work schedules in the US to improve employee retention.
• First female captain appointed within Wilhelmsen Ship Management.

Governance Achievements

• Launched sustainability-linked financing framework v1.0.
• Secured USD 950 million of sustainability-linked bank- and bond financings.
• Updated and implemented group authority policy and matrix.
• Improved IT contracting through updated routines regarding data processing agreements.

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions leading to light vehicle production and sales at a ten-year low.
• Port congestion causing vessel delays.
• Lack of access to skilled labor, particularly in land-based operations.
• Continued impact of Covid-19 on seafarers.
• Rising fuel and labor costs.

Mitigation Strategies

• Continuous dialog with customers and re-routing of cargo to less congested ports.
• Systematic efforts to attract, train, and retain skilled workers, including increased use of temporary labor.
• Implementation of Covid-19 response measures to ensure seafarer wellbeing.
• Fuel consumption initiatives and increased focus on safety management to reduce the impact of rising fuel and labor costs.
• Repricing of customer contracts to reflect high-cost market.

Supply Chain Management

Supplier Audits: Supplier self-assessment (SSA) sent to 25 targeted suppliers.

Responsible Procurement

• Sustainable Procurement Policy
• Supplier code of conduct
• Integration of sustainability and human rights criteria into procurement processes for vessel newbuilds.

Climate-Related Risks & Opportunities

Physical Risks

• Port flooding
• Extreme weather events
• Heat stress on crew and workers

Transition Risks

• Increased regulations
• Technological challenges
• Changes in customer demand
• Reduced access to capital

Opportunities

• Development of energy-efficient products and services
• Improved access to capital due to lower emissions
• Positive customer sentiment towards low-carbon products

Reporting Standards

Frameworks Used: GRI Standards, SASB Maritime and Road Transport standards, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 17 (Partnerships for the Goals)

The company's initiatives contribute to these goals through decarbonization efforts, sustainable supply chain management, and responsible business practices.

Sustainable Products & Innovation

• Orcelle Wind project (wind-powered RoRo vessel)

Awards & Recognition

• Stellantis Supply Chain 2022 award
• EcoVadis Silver sustainability rating
• John Deere sustainability award
• John Deere partner status (15th year)
• Toyota’s Kaizen award
• Recognition from NIO

Environmental Metrics

ESG Focus Areas

• Principles of Governance
• People
• Planet
• Prosperity

Environmental Achievements

• Reduced absolute CO2e emissions from shipping by more than 10 percent year over year despite increasing activity.
• Successfully implemented AI solution (Pythia) for speed and route optimization onboard 83 vessels, minimizing fuel consumption and CO2 emissions by up to 10 percent.
• Introduced zero-emission battery electric trucks in the US.
• Opened the Orcelle terminal in Belgium.
• Ordered four next-generation pure car and truck carrier vessels (Shaper Class) capable of running on green methanol, reducing emissions by almost 95 percent compared to vessels running on conventional fuel.
• Increased the share of company-owned vessels with Ballast Water Treatment Systems (BWTS) to 97 percent.

Social Achievements

• Launched a safety survey to measure safety culture and identify areas for improvement.
• Achieved ISO 14001, 9001, and 45001 certifications for all facilities in the Americas.
• Launched several successful safety campaigns.
• Held first fully joint officer conferences bringing together over 130 seafarers.
• Improved gender balance in executive management to 50 percent women.

Governance Achievements

• Updated code of conduct and human rights policy.
• Established a human rights committee.
• Strengthened compliance program by hiring a dedicated Chief Ethics and Compliance Officer.
• Developed a new procurement policy with accompanying supplier code of conduct.

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions.
• Port congestion.
• Security situation in the Red Sea (leading to rerouting of vessels).
• Workforce shortages at certain locations.
• Limited availability of biofuels in Korean ports.
• High fuel prices.

Mitigation Strategies

• Continuous dialogue with customers and cargo rerouting to less congested ports.
• Rerouting vessels around the Cape of Good Hope due to Red Sea security concerns.
• Implementing energy efficiency solutions across the fleet (AI-driven optimizations, retrofits, etc.).
• Securing biofuel supply contracts (e.g., with Exxon Mobil).
• Investing in zero-emission equipment for logistics operations.
• Developing a transition plan to reach net-zero emissions by 2040.

Supply Chain Management

Supplier Audits: 8 sustainability audits conducted in 2023

Responsible Procurement

• New group procurement policy and supplier code of conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Increased rate of weather-related accidents
• Port flooding
• Heat stress on workers

Transition Risks

• Transitioning to low-emission propulsion technologies
• Lock-in of emitting fuels
• Increased costs to ensure compliance with regulations

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, SASB Maritime and Road Transport standards, TCFD

Certifications: ISO 14001, ISO 9001, ISO 45001

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Reduced Carbon Service (RCS)
• Shaper Class vessels

Awards & Recognition

• Heyerdahl Award 2023 (Orcelle Wind project)
• Excellent Quality Award from Nio
• Best Supplier Award from LiuGong Machinery
• Toyota Canada’s Kaizen Award
• John Deere’s Achieving Excellence award
• Nissan’s North America Finished Vehicle Logistics Partner of the Year