Environment

Our world must become not only net zero, but nature positive. Odfjell has set ambitious targets to reduce our environmental footprints: We aim to reduce our carbon intensity
by 50% by 2030 compared to 2008 benchmark and have a zero-emission capable fleet
from 2050. Both targets go beyond the targets set by IMO and contribute to achieving the
UN Sustainable Development Goals.

Shipping is recognized as being the most environmentally friendly way of transportation over longer distances. Compared to other transportation methods, shipping is by far the most efficient and environmentally friendly. However, due to the size of the industry and as ships burn fossil fuels, shipping is also responsible for about 2-3% of global greenhouse gas emissions.

Per today, there are no commercially available alternatives for deep-sea shipping. We are a part of the problem, but also a part of the solution – and we have a responsibility to do what we can to make a positive difference.

As part of our work to meet IMO emission targets and our own goals, we conducted in 2020 a thorough fleet review and prepared a transition plan. Based on this plan, we decided to set ambitious climate targets, aligned with our planned technical and operational improvements, retrofits, and digitalization efforts: We want to reduce our carbon intensity by 50%, as compared to 2008 benchmark.

To achieve a 50% absolute reduction, we need to reduce the intensity by more than 70-80%. Ultimately, we decided to go beyond the IMO target and set ourselves the goal of becoming climate-neutral by 2050.

Climate neutral is an ambition for Odfjell, but it requires actions outside our control. An example is availability of fuel. We will do what we can to prepare and be capable of being climate-neutral if climate neutral fuel is available. Carbon-ofsetting is not a part of our strategy to be climate-neutral.

Climate targets

1. We will cut greenhouse gas emission by 50% by 2030 compared to 2008*.

2. We are dedicated to pursuing a zero-emission strategy and will only order newbuildings with zero-emission capable technology.

3. We will have a zero-emission-capable fleet from 2050.

4. We will actively support initiatives to develop technology and infrastructure for decarbonization, energy efficiency and zero emissions and support international regulation to drive zero-emission for our industry and our value chain.

_{*Intensity target for carbon, measured in Annual Efficiency Ratio of CO2}

Sea transportation and storage of bulk liquid products involve many potential environmental hazards. We know that we are exposed to the risk climate change poses, and continuously work to understand, assess and mitigate that risk. Sound principles and well-implemented quality management systems are necessary to provide safe and efficient operations. At Odfjell, decarbonization is integrated in our ship management and tankers business.

We are on our way: the carbon intensity for our controlled fleet is now 49% lower than the 2008 reference value.

This efficiency increase and emission reduction is not only good for the environment, it is also good for business, leading to substantial financial savings. In tandem with the development of our climate targets, we developed a Sustainability Linked Framework for issuing sustainability-linked loans and bonds.

Go to our ESG report: Environment for more details.

Some key results of our emission reducing initiatives in 2022: