Norled Sustainability Report 2021 by Apriil Media

Sustainability Report 2021

"Ships at sea and in the fjords connect people together and make trade and development possible. Since 1855 Norled has had a vital social role in ensuring that both people and commodities arrive at their destination. We facilitate sustainable mobility by providing low and zero emission vessels at sea and in the fjords, and we avoid using pristine natural areas. Our commitment to green innovation will pave the way for new sustainable solutions and make us the most attractive partner to work with when it comes to mobility at sea." Heidi Wolden, CEO, Norled

NORLED / SUSTAINABILITY REPORT 2021

Sustainability in Norled In the second and third quarters of 2021, Norled carried out an extensive mapping of which priorities related to sustainability employees and stakeholders wish the company to pursue. The work consisted of questionnaires sent out to all employees and a number of workshops with participants from many parts of the company. The result of the mapping was a value-based situation and materiality analysis, which provided the basis for further work. The process resulted in a sustainability strategy containing four focus areas for our work. Additionally, we have linked and integrated the focus areas to the UN’s sustainability development goals and Norled’s overall strategy plan; all with the aim of ensuring that sustainability becomes a natural and fully integrated part of Norled’s activities. This is clearly stated in the company’s updated vision:

Norled shall deliver the best travelling experience through innovative and sustainable solutions and proud employees. Sustainability is an integrated part of our activity, strategy and plans. It’s our goal to cut our CO2 emissions by 67% by 2030 through boosting the share of low and zero emission vessels in the fleet from 4 % in 2019 to 65% by 2030. We shall reach this goal by working together with strategic partners within propulsion systems, automation and energy carriers. We shall also work to attract more women to the industry, where the goal is a 50% proportion in the onshore organization management, and 30% proportion in the company by 2030. We have an ambition to be a zero emission company by 2040.

FOCUS AREAS

Climate and environment Norled shall be a leading player within sustainable maritime solutions Norled has a long and proud tradition when it comes to finding sustainable solutions for ferries and express boats. We will strengthen this tradition by: → Cutting CO2 emissions by 67% by 2030 (from 2019 basis).

→ Boosting the fleet’s proportion of low and zero emission vessels from 4% in 2019 to 65% by 2030 → Be a net zero emission company by year 2040 → We shall in 2022 identify all greenhouse gas emissions related to Norled → We shall identify risks related to climate change and new climate regulations in order to operate Norled in the best possible manner

Results for 2021

Proportion of zero/low emission ferries in the fleet Proportion of zero/low emission express boats in the fleet Total emissions of CO2 (tonnes) CO2 per nautical miles (kg/nm) Reduce the number of discharges to sea/sea pollutio Waste handling

2019

Low and zero emission vessels in fleet 4%

Basis of 2019 measurement

2021

Goal for 2030

12%

65%

16%

65%

160 540

112 574

53 500

5 (~208 l)

8 (~104 l)

32%

35.8%

55%

2030

Reduce CO2 emissions by 67% Low and zero emission vessels in fleet 65%

NORLED / SUSTAINABILITY REPORT 2021

2040

Net zero

FOCUS AREAS

People and communities

We put safety first and focus on maritime expertise

→ Norled shall be a leading player within safety, for both people and vessels → Norled shall work to attract more women to the industry. We have a goal of 50% women on the board and in senior positions, and aim to increase the proportion of women in the company to 30% by 2030 → Norled shall work to reduce the number of serious incidents and keep injury absence below 3.5% → Norled shall work to strengthen internal competence within relevant disciplines

Results for 2021 Basis of 2019 measurement

2021

Goal for 2030

-the board

-management

-organization (%)

Number of incidents, personal injuries, per million working hours

7,9

6,46

Number of incidents, personal injuries per million machine hours

24,9

36,1

Proportion of women in:

*Target figures for 2030 have not been set

FOCUS AREAS

Prosperity We are the preferred partner for new, green solutions

→ Norled is a leader when it comes to developing climate friendly and environmentally friendly technology in the sector through being the preferred partner for new concepts and cooperation in development → Norled shall strengthen cooperation with strategic partners within propulsion systems, automation and energy carriers → Norled shall have financial muscles to foster new environmental technology → Norled shall win more tenders that have an environmental focus → Norled shall promote innovation in order to stimulate novel approaches and creativity

Results for 2021 In 2015 Norled launched the world’s first electric ferry, the MF “Ampere”. The ferry represented the start of a large-scale evolution of electric ferries in Norway, where currently around 80 ferries are electrically operated. In 2021 Norled launched a solution for autonomous battery swap for express boats in partnership with SEAM. A prototype is now being built by our partner Aarbakke. The goal is to enable electric operation of express boats that does not compromise on speed or regularity. With battery replacement in place express boats will be able to operate for 30 minutes at 35 knots or 45 minutes at 30 knots. Expanding the existing network infrastructure will not be necessary. Battery replacement systems can be installed on existing express boats, or built into new ones. The solution is cost effective and may contribute to electrification of the fleet being started earlier than expected.

NORLED / SUSTAINABILITY REPORT 2021

In 2022 Norled’s ferry, the MF “Hydra”, will be operating on liquid hydrogen, the first ferry in the world to do so. This is groundbreaking work that goes to show Norled is in the forefront in developing environmental technology. In 2021 Norled won the tender for operation of local express boats in Kinn, Bremanger, Stad, Vik, Høyanger, Sogndal and Lærdal local councils from 2024 to 2036. The express boat contract included explicit requirements for CO2 cuts of minimum 52 percent. Under the contract it was an option to operate six years with regular fuel and the last six years with low emission solutions. Norled presented a solution involving 12 years operation on low emissions. This solution was accepted, and the services will now be low emission from day one in the new contract.

FOCUS AREAS

Management principles Sustainability is integrated in our activities and we are transparent about what we do → Norled reports carbon accounting within current rules and our numbers and ambitions are transparent → Sustainability is integrated in the company’s management principles → Norled shall work systematically to be able to report sustainability development goals and shall comply with reporting standards; notably the GRESB standard

Results for 2021 Norled shall increase its GRESB points from 35 in 2019 to 85 in 2030. GRESB stands for Global ESG Benchmark for Real Assets. GRESB is an organization that annually assesses the performance of companies worldwide on a number of sustainability indicators. The assessments are based on a number of internationally recognized reporting standards, the Paris agreement and the UN’s

sustainable development goals, in addition to regional and national guidelines. Norled has laid out a strategy to increase the GRESB points toward 2030. Norled will also consider other reporting standards and frameworks within sustainability development that will potentially be adopted in addition to GRESB.

Norled’s work related to the UN’s sustainability development goals

The UN’s sustainability development goals are integrated in Norled’s work on sustainability development. All sustainability development goals are equally important and mutually affect each other. However, we recognize that some are more relevant than others for our industry, which is where we may have a positive influence. We have linked our focus areas to ten sustainability development goals; i.e. 5, 8, 9, 11, 12, 13, 14, 15, 16 and 17. We are working on measures connected to all sustainability development goals. We have chosen to concentrate of four of them to show Norled’s commitment. They are number 5, 9, 11 and 13.

→ Goal Achieve gender equality and empower all women and girls

→ Relevant sub-target

Gender equality

Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.

→ Why The maritime industry and Norled are currently competing for manpower. There is a considerable shortage of maritime expertise. Norled needs bright heads, skilled hands and persons with the right service attitude. If we are to be able to attract and hold on to our staff we must not forget the women. We must encourage women and show the potentials that are open to women. We firmly believe that diversity is positive for the company as well as our employees.

→ How – Norled’s specific goals

· Norled will work to attract more women to the industry · Our goal is a 50% proportion of women in the board and in senior positions, and to boost the women proportion in the company to 30% by 2030

NORLED / SUSTAINABILITY REPORT 2021

Industry, innovation and infrastructure

→ Goal Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

→ Relevant sub-target By 2030 upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.

→ Why It’s part of Norled’s DNA to engage in innovation, in particularly connected to new, eco-friendly solutions. We have pushed boundaries before and will continue to do so in order to offer better and eco-friendly solutions for the future. At the same time, innovation and novel approaches are necessary to succeed in the competition with other players. We also see many opportunities in circular thinking and reuse of vessels. Pursuing such opportunities may be profitable to Norled, but it also necessary in order to make the industry more sustainable.

→ How – Norled’s specific goals · Adopt new eco-friendly technology and solutions for ferries and express boats · Adopt low and zero emission vessels that can offer sea transport in areas carrying a great deal of traffic.

Sustainable cities and communities

→ Goal Make cities and human settlements inclusive, safe, resilient and sustainable.

→ Relevant sub-target By 2030, provide access to safe, affordable, accessible, and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons.

→ Why Norled has an important role in the community in securing safe, accessible and sustainable transport services along the entire length of the Norwegian coast. We will provide safe transport for travellers and employees. Heavy traffic and many departures in varying weather conditions require continuous work on risk understanding and safety measures.

→ How – Norled’s specific goals · Prioritize new contracts that have an environmental focus · Continuous work to avoid safety incidents on our vessels

NORLED / SUSTAINABILITY REPORT 2021

Climate action

→ Goal Take urgent actions to combat climate change and its impacts.

→ Relevant sub-target · Integrate climate change measures into national policies, strategies · Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

→ Why Shipping and the fisheries stood for 7.5 percent of Norwegian greenhouse gas emissions in 2020. Emissions rose from a level of approx. 2.5 million tonnes CO2 equivalents around 1990, to approx. 4 million tonnes CO2 equivalents around turn of the millennium. Emissions have since stabilized at approx 3.5 million tonnes CO2 equivalents. * The ferry sector can become emission free by 2030 in Norway, provided the government follows up the situation as expected, demanding zero emissions in all tenders from 2023. Norled has led the way with the world’s first electric ferry, the MF "Ampere". In 2022 there are around 80 electric ferries in Norway. Express boats use the most diesel and emit the most greenhouse gases. Therefore these also need to be converted to low and zero emission propulsion. Norled has launched a new battery replacement system for express boats as a solution to the entire industry. *Miljøstatus.miljødirektoratet.no

→ How – Norled’s specific goals · Cut 67 % of our CO2 emissions by 2030 · Become a net zero company by 2040 · Increase our proportion of low and zero emission vessels from 4% to 65% by 2030

Stavanger Børehaugen 1 4006 Stavanger

norled.no

Bergen Kong Christian Frederiks plass 3 5006 Bergen

Oslo Fjordalléen 16 0250 Oslo