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ESG report: Social

In 2018, we presented our approach and sustainability strategy in the document 'Global Operations – Our Responsibility'. For the 2021 ESG reporting, we follow the guidance of the Norwegian Shipowners' Association and the SASB framework. The climate risk assessment follows the TCFD framework, and the reporting is in line with the Euronext ESG reporting guidelines. The ESG report has three parts: Environment, Social and Governance (incl. SASB Activity metrics).

Annually we respond to the CDP. We also report emissions to the EU MRV, the IMO DCS and the Poseidon Principles. We annually present Communication of Progress to the UN Global Compact and also report sustainability data to EcoVadis

The Annual report 2021 was published  28.03.2022. This ESG report table is last updated 07.12.2022.


Topics Accounting metric Unit Ref
Safety, Human and Labor Rights
Lost Time Incident Frequency (LTIF)

At Odfjell, we have a goal of zero accidents and incidents. We monitor and track all Lost Time Injuries (LTIs), Restricted Work Cases (RWC), Medical Treatment Cases (MTC) and First Aid Cases (FAC). Management and the organization have incentive KPIs related to LTIF.

LTIF for shipping is calculated as lost time incidents * 1,000,000) / number of Exposure Hours.

LTIF for terminals is calculated as lost time incidents * 200,000) / number of Working Hours. 

For 2021 LTIF for our managed fleet is 0 compared to 0.21 in 2020.

For 2021, LTIF for Terminals consolidated is 0.45, compared to 0 in 2020.

SASB TR-MT-320a.1 GRI 403-9


Safety is more than a priority at Odfjell. It is a core value and part of our license to operate. We are relentless about ensuring the safety of our employees and surrounding communities by improving the way we operate as a company. We continually review personal protective equipment to find the best for our employees, so that they can safely perform their tasks. We strive to ensure our employees do things the right way, and only the right way. We continuously develop and monitor our safety training, and we do not compromise on safety.

For all operations, we conduct safety hazard identification and safety risk assessment to ensure that all risks are mitigated, and to ensure the safety of our people and the environment.

Odfjell has dedicated emergency preparedness policy procedures and systems, a dedicated contingency/operations room, and we conduct regular training and exercises with the Emergency Response Management Team (ERMT).

Odfjell has implemented safety standards in accordance with the requirements of the flag state of vessels and Odfjell's policies.

To raise awareness and employee involvement, Odfjell has implemented a minimum target of safety observation rounds (SOR) per employee, per month at our terminals. 

Total Recordable Case Frequency for our managed fleet is 1.13 in 2021. This is an improvement of 2.6% since 2020 (1.16).


Diversity, equity and inclusion

Odfjell promotes diversity, equity and inclusion (see chapter Our people in annual report 2021 on pages 57-63, and Diversity & Inclusion at, and equal opportunities for our employees. We believe that recruiting from a wide talent pool, increasing diversity, and creating an inclusive organization adds business value.

We have taken steps to collaborate with industry networks in driving the diversity agenda, as we believe that this is a missed opportunity in our industry today. We support offshore career and recruiting initiatives to promote gender balance. We have a goal to increase the ratio of females in leadership positions, and to improve the gender balance at all levels.

In 2020, we set a diversity target to realize a minimum 30% gender balance by 2030, at all levels of our shipping shore-based organization.

The same year, Odfjell participated for the first time to the Ernst & Young SHE index for Norway. We have submitted 2020 and 2021 data and will report diversity status and progression under this framework. Our scores and ranking confirms the need for structured and long-term efforts.

Odfjell follows up the requirements of the Norwegian Equality and Anti-Discrimination Act §26. Odfjell Management AS and Odfjell Maritime Services AS’ analysis and reporting for 2021 are made available in the annual report and under the ESG reporting framework. As per regulations, Groups <5 are not represented.

Both permanent and temporary employees on Odfjell's payroll are included in the analysis. However, temporary and part-time employees (voluntary and non-voluntary) are not represented in the tables below (fewer than 5 for each group).

The workforce organization is sorted into four (4) levels. Each level comprises several sub-levels and thereby captures a wide scope of positions:
    - Executive and Leadership
    - Front line management and senior professional
    - Professional
    - Business support

The table below shows the average income of women in % of the average income for men broken down by levels and based on full-time position for Odfjell Management AS. Basic salary and benefits (cash and non-cash) are included in the wage gap calculation.

At Odfjell Maritime Services AS, wages are tariff regulated. Salary levels are linked to specific positions and equal regardless of gender. Salary levels will therefore not be represented in a table format.

Board of Directors of Odfjell SE is 50% female.

Executive Management is 100% male.

Odfjell Management AS (shore-based employees HQ): 68% male/32% female (68/32% in 2020), Odfjell Maritime Services AS (seafarers): 95% male/5% female (95/5% in 2020).

SHE Index ranking Norway 2021: 65 out of 84
(+4 points from 2020).

Average income of women 63% of those for men (all levels, total of 172
shore-based employees).

On average in 2021,
women in Odfjell Management AS took 13 weeks parental leave while men took 6 weeks. No parental leave was taken in Odfjell Maritime Services AS.

GRI 405-1
SDG 10

Labor Rights

Odfjell is a signatory to the UN Global Compact and supports all the ten principles. Principles 3 to 6 concern labor rights.

Odfjell supports freedom of association and, in line with local norms and regulations, adheres to various collective bargaining agreements for elements of our workforce. Odfjell has established work councils with employee representatives and local management.

Odfjell complies with the Maritime Labor Convention (MLC), and all our vessels are externally audited and carry a certificate of compliance with the MLC.

Odfjell has no people < 18 years working or living at sites.

The performance management system (appraisals) for our shore-based shipping organization ensures that managers and employees check in multiple times a year (at least annually) to discuss performance, and align on training, development, and objectives. 

No incidents or legal actions required in 2021.

MLC, 2006
GRI 102-41

Human Rights

Human rights actions are managed by our Human Rights Management System, and policies are reflected in several of Odfjell's policies and reporting, such as our Human Rights policy. Our policies on human rights are in line with The Norwegian Transparency Act. We also expect the same from our suppliers, who must sign our Suppliers Code of Conduct principles, which also covers human rights. Odfjell expects suppliers to support and respect the protection of internationally
proclaimed human rights, and to ensure that they are not complicit in human rights abuses or child labor.

As part of Human Rights Due Diligence process, a Human Rights Impact Assessment was carried out in 2021 and presented to the Board of Directors. Odfjell uses the UN Guiding Principles on Business and Human Rights, chapter II, and the OECD Guidelines for Multinational Enterprises as key frameworks.

Odfjell has identified the following essential inherent risk area, where our operations can have an impact on human rights and labor rights:
   – Right to a healthy and safe work environment and living environment
   – Right of freedom from forced labor and human trafficking
   – Right to access to a clean, healthy, and sustainable environment
   – Right to non-discrimination in hiring, employment, and pay
   – Right to a non-harassing work environment

In our reviews and risk assessment, we score the risk of direct non-compliance with the regulation on human rights and child labor as low.

Odfjell cooperates with the Rafto Foundation for Human Rights to continuously develop and improve our policies and best practice on human rights, and we also support the development of Ship Lifecycle Principles with the Rafto Foundation, Institute for Human Rights and Business, and the Danish Institute for Human Rights. Odfjell has also signed the Future-Proof Initiative. The Bergen Chamber of Commerce and Industry and the Rafto Foundation for Human Rights and Business have created the business and human rights collaboration platform known as 'Future Proof'.

Odfjell provides Account of Human Rights Due Diligence pursuant to Section 4 of the Norwegian Transparency Act here. No ethical incidents were reported in or outside the reporting system, and no legal actions were taken against Odfjell on human or labor rights in 2021 or 2022 ytd. Odfjell has not been involved in providing or enabling remedy, where it has caused or contributed to adverse impact in 2021.

No ethical incidents or legal actions required in 2021.

GRI 412
GRI 408
SDG 16

ILO Maritime Labour Convention (MLC)

International Maritime Organisation (IMO) Conventions

UN Convention on the Law of the Sea (UNCLOS)

Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal

UNGP and OECD Guidance

Norwegian Transparency Act

Working Hours

Odfjell has a policy on working hours, but due to our global presence, this will differ from country to country depending on local regulations.

The policies are built into our HR systems to ensure overtime and/or extra time is calculated, monitored, compensated and to ensure that it is compliant with local regulation.

Work and rest hours on board are regulated under ILO MLC regulations. Any violations of work/rest are reported and monitored, and records are audited. 

MLC 2006 ML 2.3

Port State Control (PSC)

PSC is the inspection of foreign ships in national ports to verify that the condition of the ship and its equipment comply with the requirements of international regulations and that the ship is manned and operated in compliance with these rules.

Management and organization in Odfjell have incentives with KPIs related to Port State Control (PSC) findings.

In 2021, Odfjell had 0.9 findings per PSC inspection
(0.66 in 2020).

We had no detentions in 2021.

SASB TR-MT-540a.3 SDG 8
SDG 14

Marine casualities

Odfjell defines a marine casualty in accordance with the UN IMO's Code of International Standards and Recommended Practices for a Safety Investigation into a Marine Casualty or Marine Incident, MSC resolution 255(84).

Odfjell vessels have not been involved in any such incidents in 2021.

SASB TR-MT-540a.1 SDG 8

Process Safety Terminals

Odfjell follows the reporting guidelines and practices of the American Petroleum Institute (API) Recommended Practice (RP) 754, Process Safety Performance Indicators for the Refining and Petrochemical Industries. Tier 1 and 2 include LOPC (see more in annual report 2021 on page 124).

Tier 1 and 2 events in 2021 were 0, compared to 6 in 2020.

API RP 754

Last updated 07.12.2022