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2019

Annual report

Priority 4: Navigating towards zero emissions

The world is quickly moving towards a healthier, emissions free future – a challenge we embrace as an opportunity. As the operator of a fleet of approximately 126 RoRo vessels, and terminals and processing centres around the world, Wallenius Wilhelmsen is deeply committed to decarbonising our operations and future-proofing our business. Transforming logistics into a zero emission, carbon-free industry is the challenge of a generation, but it is also our opportunity to redefine sustainable logistics. The company’s Lean:Green strategy and our Sustainability Policy guide our efforts and progress towards zero emissions.

Wallenius Wilhelmsen is in the process of assessing the financial impacts of climate-related risks and opportunities in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Physical risks due to harsher weather are considered manageable; regulatory and market risks will likely have the greatest impact on the company’s future business operations. The potential costs of reducing Green House Gas (GHG) emissions to meet International Maritime Organization (IMO) reduction targets, combined with the European Union’s (EU) increased focus on shipping as reflected in the European Green Deal, pose complex compliance and financial risks for a global player like Wallenius Wilhelmsen. Changes in consumer preferences due to increased climate awareness may bring about new modes of production and logistics that will impact both our land-based activities and our fleet.

In line with the increasing demand for climate-related action and reporting, Wallenius Wilhelmsen is taking a systematic approach to identifying climate-related risk and opportunities, assessing the potential financial implications, and integrating climate considerations into overarching strategic plans. Prioritised actions for 2020 are to stress-test and refine our strategy to better position the company’s products and services for a low-carbon economy.

To improve our emissions footprint and help us navigate our fleet and operations towards zero emissions, we measure, manage and report on our performance in four material areas: GHG emissions from ships, Non-GHG air emissions from ships, GHG emissions in land-based operations, and Non-GHG emissions in land-based operations.

Review of progress in 2019

In 2019 we prepared our fleet, our customers, and our organisation for an important milestone in our zero-emission journey: compliance with “IMO 2020”, the IMO’s new global sulphur fuel cap designed to dramatically reduce SOx emissions and pollution, effective 1 January 2020. Read details on our rigorous preparation for the new rules. Consistent with our Lean:Green strategy, Wallenius Wilhelmsen founded the Trident Alliance, an industry coalition that actively engaged officialdom throughout the year on effective and transparent enforcement of the new regulations.

This year, Wallenius Wilhelmsen also made strides in carbon emissions performance. The relative CO2 emissions from the WW Ocean fleet in 2019 was 33 g/tkm, meeting the target we set for an 8% reduction relative to 2017. Total CO2 from all ocean operations dropped to 4,640,979 tonnes, a reduction of 547,000 tonnes or nearly 11% from the prior year. Reductions in total fuel consumption and emissions were mainly driven by less activity compared with 2018, and improvements in vessel efficiency and performance, including an improved hull fouling programme.

Landbased CO2 emissions (from fuels consumed) increased slightly, as a result of 10 more land-based facilities reporting and 5% more hours worked in 2019. Existing fuel and power reporting tools were enhanced and now provide emissions KPIs for land-based activities. All fuel and electricity consumption are now reported, converted to CO2 and displayed in the company’s reporting dashboard.

The company joined the Getting to Zero Coalition, an alliance to bring commercially viable, zero-emissions deep sea vessels into the global fleet as early as 2030. We also started ongoing collaborations with Wallenius Marine to develop and operate the first wind-powered deep sea RoRo vessel by 2022, and with Maersk, Copenhagen University and major shippers including BMW Group, to form the LEO Coalition to develop and test Lignin Ethanol Oil for shipping.

As part of a company-wide implementation of a new Sustainability Management System in 2020, management will be reviewing all prioritised material topics; setting and validating current KPIs, informed by science-based targets as relevant; reviewing progress against current goals and setting new goals and targets for the short and long term.

Relevant governance policies and documents

Environmental Policy, Lean:Green Strategy.

 

2019 annual performance data

KPI Description Unit of Measurement 2019 Data
Relative CO2e emissions from ocean services Grams per ton kilometre 33.00
Total CO2e emissions from ocean services Tonnes 4,640,979
Average sulphur content of fuel Percent 2.05%
Total SOx emissions of fleet under group control Tonnes 60,989
Relative NOx emissions from owned fleet (as an average of International Air Pollution Prevention certification values) Grams per kilowatt hours 13.64
Total electrical consumption, landbased services megawatt hours 16,095
Total CO2e from electrical consumption, landbased services Tonnes 6,611
Total CO2e from liquid and gaseous fuels, landbased services Tonnes 8,005

 

Highlights

 

3-Year Emission Trends