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2020

Annual report

Social

Managing diversity, equity and inclusion, safety, human rights, working conditions and welfare.

As a global logistics provider with customers and operations worldwide, we believe diversity is a critical asset in meeting all our stakeholders’ needs. People are fundamental for us to create value, and a diverse workforce is essential for our long-term success. Developing diversity is the responsibility of the Global Human Resources and the Top Executive Team. The company’s Diversity, Equity and Inclusion (DEI) project coordinator manages, monitors and reports from the diversity and inclusion initiatives and projects.

The purpose of our diversity approach is to cultivate a supportive and inclusive work environment for all our employees, promoting a workplace with equal opportunities to all candidates and employees regardless of their protected characteristics.

To attract and retain a diverse workforce able to meet our purpose, we have developed and invested in seven strategic initiatives to be launched between 2021-2022. They are designed to promote seven different facets of diversity. Management developed and used a set of five diversity metrics (Recruitment, Retention, Pay, Representation, Advancement) to assess the impacts of those initiatives on our people and our organisation.

Top management meets quarterly to review our sustainability performance and ESG management processes, including Diversity, Equity and Inclusion.

Safety for all our workers across all our operations is crucial to our success as an employer and a supplier. Therefore, the ultimate responsibility for safety rests with the company CEO. Safety at sea is the primary responsibility of the Marine Operations Management team. External ship management companies employ the crew of Wallenius Wilhelmsen’s owned vessels. Our Marine Operations Management team is responsible for ensuring these management companies comply with our working conditions and safety policies and our Ship Operations and Maintenance Policy.

Logistics services employs both direct employees and outsourced labour for logistics activities and operations at terminals and processing centres, and respective site managers are responsible for safety and wellbeing at terminal and processing sites.

Driver safety is the bedrock of our trucking and transport operations. Driver safety is managed and promoted by providing:

  • Extensive onboard training-safety techniques and securement of machines; ingress/egress tractors
  • Continual/remedial training
  • Boot allowance provided for drivers (steel-toe, over ankle, etc.)
  • Hi-vis apparel requirements (multiple apparel options)
  • Structured safety protocols at all our facilities
  • Continued safety communication updates to the fleet monthly
  • Continuous review to improve ways for drivers to load, unload and secure cargo

Training and development are central to how we learn as individual contributors and as an organisation, and we prioritise the development of all employees globally. When employees are well supported, they enjoy a better employee experience, are more engaged in our purpose and perform at their best. This positively impacts our workforce retention, while ensuring we have the skills needed to deliver innovative, sustainable logistics solutions. ‘Go, Grow, Succeed’ is the company-wide platform for co-workers to manage their professional development objectives and facilitate their performance and development dialogues.

We believe there is a direct link between the working conditions and welfare we provide and the quality of service we deliver. This is material to our ocean services, as vessel crew spend working hours and recreation and resting hours onboard company vessels. The Marine Operations Management team is responsible for the ocean crew’s working conditions. They work in close collaboration with ship management companies to ensure daily operational compliance with the many regulations governing this area.

For a company operating approximately 83 owned vessels, vessel recyclers’ working conditions are essential to our sustainability. When ocean vessels reach the end of their lifecycle, they are often recycled without regard for worker safety and rights. To protect the safety and human rights of men and women working in ship recycling, we have adopted a Responsible Vessel Recycling policy, applicable to all owned vessels.

Our aim in adopting this policy is to positively impact the working conditions of the men and women earning their income in recycling yards, helping ensure their human rights are protected and respected. The Marine Operations Management team is responsible for implementing our vessel recycling policy, and through membership in the Ship Recycling Transparency Initiative, we are driving meaningful industry change.

To foster an environment where our people can thrive and succeed, we measure, manage and report on our performance in the following material social areas: Diversity, safe operations, training and development, working conditions and welfare, and human and labour rights in ship recycling.

Relevant internal governance documents

Wallenius Wilhelmsen Code of Conduct, Ocean Employees Handbook, Solutions Employee Handbook, Safety Policy, Responsible Vessel Recycling Policy, Solutions ESHQC Policy.

Review of progress in 2020

Throughout 2020, the COVID19 pandemic had a crippling effect on supply chains worldwide as the need to protect the health of our workers took precedence over most economic activity.

Our Diversity, Inclusion & Equity project engaged co-workers globally through a Peakon survey on a range of diversity-related topics. Several demographic assessments of our workforce were conducted to create baselines and analyse the data to understand the current diversity of our employees better and make action plans. To continue to drive progress and expand diversity to new areas, the company created and filled a new role, diversity and inclusion coordinator, who reports directly to the CEO and the chief HR officer.

To systematically improve employee experience at Wallenius Wilhelmsen, we have implemented a process for measuring metrics related to engagement, health and wellbeing. The data and insights from this process guide the development of action plans on a team, site, country, and global level.

The fleet had no marine casualties and no work-related fatalities, and Lost Time Incident Frequency for Ocean services slightly skewed upward in 2020 by fewer crew hours due to vessels put into layup during the pandemic. Lost Time Incident Frequency for Logistics services improved to 13.94, mainly due to a continued global push on a safety mindset.

The ocean crew’s annual retention rate improved from the previous year to 97%, and satisfaction survey results remained consistent with 2019.

Absenteeism for Logistics services improved from 3% in 2019 to 2.5% in 2020, resulting from a continued global push for human resource improvement in workplace performance.

In 2020, we integrated Keen Transportation’s operations into our sustainability management system, and KPIs for the transportation sector were incorporated into our reporting. We developed extensive support for our drivers throughout the ongoing COVID19 pandemic, often jointly between Wallenius Wilhelmsen management and our customers, including:

  • Masks and hand sanitisers at all facilities
  • Applying ‘PermaSafe’ (disinfectant fogger application) to tractor interiors when the driver enters
  • Reduced face-to-face interactions for trip paperwork by using electronic vs signed Bills of Lading
  • Real-time information updates from industry organisations, national, state, and regional levels, OEMs on COVID19 prevention strategies

 

KPI description Unit of measurement 2020 2021 target 2030 target

Gender balance of office workers in senior roles, M:F 1

Ratio 81:19 +10% women 65:35

Diversity Score from Employee Survey

Score (scale 1-8) 7.6 7.7 8

Lost Time Incident Frequency, Shipping

Rate 0.99 1 1

Lost Time Incident Frequency, Logistics

Rate 13.94 13 8

Work-related fatalities, Shipping

Number of incidents 0 0 0

a)Number of port state control detentions; and

b) average number of deficiencies per vessel inspection, Shipping

a) number

b) ratio

a)0

b)1.0

a) 0

b) 0.5

a) 0

b) 0.5

a) Number and

b) percentage of retired vessels responsibly recycled

Number;percentage a)2

b)100%

a)n/a

b)100%

a)n/a

b)100%

Annual retention rate of ocean crew

Percentage 97% >90% >90%

* Performance data for all KPIs we measure available on pages 62-64.

1) This KPI was modified from 2019 to capture more of our workforce, and will be used for reporting in 2020 and after