Annual
Report
2024
Contents
Wallenius Wilhelmsen at a glance 3
Leading the way to connected, sustainable supply chains 4
2024: The numbers in brief 5
Key figures 6
Key sustainability figures 7
Corporate structure 8
Board of Directors 9
Management team 11
Words from the CEO 15
Directors’ report 18
Message from the board 19
Our strategy 19
Our values 20
2024 in brief 21
Financial review 22
Long-term financial targets and dividend policy 25
Shipping segment 26
Logistics segment 28
Government segment 29
Market development and outlook 30
Key risk exposures 33
Events after the balance sheet date 37
Prospects 38
Sustainability statement 39
General information 39
Environment 62
Climate Change 62
EU Taxonomy Statement 82
Pollution 89
Biodiversity and ecosystems 93
Social 102
Own workforce 102
Workers in the value chain 120
Governance 124
Business Conduct 124
Sustainability notes 129
ESRS Index 130
Data points from other EU legislation 132
Responsibility statement 134
Consolidated financial statements 136
Parent financial statements - Wallenius Wilhelmsen ASA 203
Alternative performance measures 229
Audit reports 233
Contents »
Wallenius Wilhelmsen – Annual Report 2024 2
Wallenius Wilhelmsen at a
glance
Wallenius Wilhelmsen is a global leader in integrated vehicle transportation and
logistics, supporting customers across their entire supply chain, all the way from
the factory to end-consumers.
We partner with global original equipment manufacturers in the automotive
segment, as well as the leading manufacturers of high & heavy equipment for
construction, agriculture and mining.
Our ambition is to continue to lead the way in transforming the shipping and
logistics value chain. With around 12000 dedicated colleagues, on shore and at
sea working tirelessly towards this, we aim to consistently be customers’ preferred
partner.
Together, we lead the way to connected, sustainable supply chains.
Contents »
Wallenius Wilhelmsen – Annual Report 2024 3
8
Terminals
66
Service &
Processing
centers
125
Vessels
15
Trade
routes
Leading the way to connected, sustainable
supply chains
Our fleet of 125 vessels sails on 15 trade routes, serving six continents. The RoRo
vessels in our fleet typically have a higher than average number of hoistable decks
and a stronger ramp capacity than our competitors. This provides enhanced
flexibility allowing us to carry multiplex cargo answering the needs of a wide variety
of customers. By fleet size, we are the world’s largest operator of pure car and
truck carriers (PCTCs).
On shore we provide a comprehensive land-based logistics network through eight
terminals, 11 inland distribution networks and more than 66 service and
processing centers. Strategically located to support customers’ operations, in
addition we also work in-house at many manufacturers' plants preparing vehicles
for end consumers.
Benefiting from over 160 years of heritage and history, Wallenius Wilhelmsen
includes EUKOR, American Roll-on Roll-off Carrier (ARC), Armacup and Keen, and
today has operations in three key segments: Shipping services, logistics services
and government services. Wallenius Wilhelmsen ASA is listed on the Oslo Stock
Exchange. Our head office is located in Bærum, Norway.
You can read more about our different segments and their performance in 2024
here.
Contents »
Wallenius Wilhelmsen – Annual Report 2024 4
2024: The numbers in brief
“Wallenius Wilhelmsen further enhanced its financial position in 2024 with a very
strong financial performance. This enables us to both continue to invest in future
growth and deliver dividends to our shareholders in line with our new pay-as-you-
go policy.
During the year we significantly strengthened the company’s book of business
and thanks to the dedication and hard work of the team, we delivered record
results in terms of revenue, profitability and cash conversion in 2024. We continue
to reduce our debt profile and remain well within all our long term financial targets.
Despite increased geopolitical uncertainty and its potential impact on the markets
we operate in, we still expect 2025 to be another strong year for Wallenius
Wilhelmsen. On that basis, we intend to pay high dividends in the top-end of our
policy range, with extraordinary payments when our financial position allows”.
Jermund Lien
Acting CFO
You can read more about our financial performance in 2024 here.
Contents »
Wallenius Wilhelmsen – Annual Report 2024 5
Total
Revenue:
2024
5,308
USD million
2023
5,149
USD million
EBITDA:
2024
1,869
USD million
2023
1,807
USD million
Oslo Stock
Exchange Ticker:
WAWI
Key figures
Key figures consolidated financial statements
2024 2023
1
2022 2021 2020
USD million unless otherwise stated
Income statement
Total revenue 5,308 5,149 5,045 3,884 2,958
Operating profit before depreciation, amortization and
impairment (EBITDA) 1,869 1,807 1,548 830 473
Operating profit (EBIT) 1,289 1,225 931 306 (84)
Profit before tax 1,138 1,042 829 199 (306)
Profit for the period 1,065 974 794 177 (302)
Balance sheet
Non-current assets 5,750 5,853 6,242 6,315 6,391
Current assets 2,650 2,690 2,151 1,479 1,237
Total assets 8,400 8,543 8,394 7,794 7,628
Equity - parent 3,313 3,051 3,153 2,539 2,391
Equity - non-controlling interests 9 29 355 266 224
Interest-bearing debt 3,151 3,713 4,087 4,128 4,081
Key financial figures
Net cash flow provided by operating activities 1,762 1,771 1,297 623 615
Cash and cash equivalents at December 31 1,393 1,705 1,216 710 654
Current ratio 1.1 1.2 1.8 1.1 1.1
Key financial targets
Return on capital employed adjusted (>8%) 19.9 % 17.9 % 12.9 % 4.5 % -1.3 %
Leverage ratio (<3.5x) 0.9x 1.1x 1.9x 4.0x 6.4x
Equity ratio (>35%) 40 % 36 % 42 % 36 % 34 %
Key figures per share
Basic and diluted earnings per share 2.33 2.00 1.60 0.32 -0.68
EBITDA per share 4.42 4.28 3.66 1.96 1.12
Average number of shares outstanding (thousand) 422,646 422,692 422,451 422,399 422,360
Market price per share at year end (NOK) 93.50 89.00 97.05 50.60 23.20
Market price high (NOK) 138.80 103.60 103.00 50.95 28.40
Market price low (NOK) 87.10 60.60 44.86 20.80 7.75
Dividend paid per share (USD) 1.75 0.85 0.15 0.00 0.00
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Wallenius Wilhelmsen – Annual Report 2024 6
1
Figures for 2023 have been restated for the change in accounting method for the
put and call option over the non-controlling interest in EUKOR. Figures for 2020
through 2022 have not been restated.
Key sustainability figures
2030 Climate Targets validated by SBTi
Reduction of absolute scope 1 GHG emissions from Logistics operations 42 %
Reduction of absolute well-to-wake scope 1 and 3 GHG emissions from
Shipping operations 40 %
Reduction of intensity well-to-wake scope 1 and 3 GHG emissions from
Shipping operations per tonne nautical mile 44 %
Annual sourcing of renewable electricity 100 %
Carbon performance
Total GHG emissions Scope 1, 2, 3 (Market-based) 5,254,001
Total GHG emissions Scope 1, 2, 3 (SBTi coverage) 4,929,234
% emissions reduction from 2022 to 2024 (SBTi trajectory) (7) %
Safety performance
LTIF for Ocean operations 0.41
LTIF for Logistics operations 12.25
Gender diversity
Women in top management 40 %
Women in our workforce 25 %
Women on the Board 43 %
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Wallenius Wilhelmsen – Annual Report 2024 7
Board of Directors
Rune Bjerke
Chair of the board
Extensive career in international energy and banking corporations.
Previous experience: CEO of DNB, CEO at Hafslund, CEO at Scancem
International, advisor at the Norwegian Ministry of Petroleum and
Energy, city commissioner of finance in the city cabinet of Oslo.
Board positions: Chair in Norsk Hydro and Reitan Retail and Vice
Chair in Schibsted.
Education: Degree in economics, University of Oslo, and Master's
degree in public administration, Harvard University.
Margareta Alestig
Board member and Chair of the Audit Committee
Extensive experience from the financial, shipping and logistics
industries.
Previous experience: CFO at Broström AB, CFO at JCE Group, Deputy
Managing Director at Sjätte AP-fonden (AP6) and Swisslog AB.
Board positions: Chair of the Board in Erik Thun AB, Vice Chair of the
Board and Chair of Audit Committee in Inission AB, Board member in
Tjörns Sparbank, Svenska Fribrevsbolaget and Brännehylte
Lagersystem AB.
Education: MBA degree, University of Örebro, Sweden.
Thomas Wilhelmsen
Board member
Group CEO at Wilh. Wilhelmsen Holding ASA since 2010.
Previous experience: Various management roles across the
Wilhelmsen group, including group vice president for shipping and
regional director for Europe in Wilhelmsen Ships Service.
Board positions: In addition to holding directorships in several
industry-related companies and organizations, he sits on the boards
of many Wilhelmsen group and family-owned companies.
Education: Master of arts in business, Heriot-Watt University,
Scotland. Has numerous courses from other universities including
the program for executive leadership from IMD, Switzerland.
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Wallenius Wilhelmsen – Annual Report 2024 9
Yngvil Eriksson Åsheim
Board member
Extensive career in the maritime industry and currently CEO of BW
LNG.
Previous experience: Various positions at the classification society
DNV and shipowner Höegh. Joined BW Group in 2010 and has had
different positions covering different segments.
Board positions: BW Ideol and Navigator Gas.
Education: Master of Science degree in marine engineering, the
Norwegian Institute of Technology (NTNU).
Anna Felländer
Board member
One of Sweden's leading experts on the effects of digitalization and
AI on the economy, society and businesses. Founder and president
anch.AI, an AI governance platform.
Previous experience: Chief economist at Swedbank and 10+ years at
the Swedish government in numerous positions.
Education: Master's degree in macroeconomics, Stockholm School
of Economics.
Hans Åkervall
Board member
Extensive experience as lead partner for a diverse portfolio of large
clients across financing, manufacturing, and logistics.
Previous experience: CEO of KPMG Sweden, Partner in KPMG
Board positions: Board member Rederi AB Soya
Education: Chartered accountant, bachelor´s degree in business
and economics, University of Stockholm.
Magnus Groth
Board member
Extensive experience from diverse industries including consumer
goods, energy, and consultancy. Currently President and CEO at
Essity Aktiebolag.
Previous experience: Prior to his current role Magnus was CEO and
President of Svenska Cellulosa Aktiebolaget SCA, SCA Hygiene
Products, President and CEO of Studsvik AB, Senior Vice President at
Vattenfall AB and senior manager at Enron Corporation.
Board positions: Board member at Essity and Vinda.
Education: Master’s degree in economics and business, and Master
of Science in Avionics and Naval Technology.
*Each of the two largest shareholders, Wilh.Wilhelmsen Holding ASA and Wallenius Lines AB have in Wallenius Wilhelmsen
each nominated one observer to the board, Christian Berg and Erik Nøklebye respectively.
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Wallenius Wilhelmsen – Annual Report 2024 10
Management team
Lasse Kristoffersen
Chief Executive Officer
CEO since June 2022
Previous experience: 15 years at Torvald Klaveness with 11 as CEO.
President of the Norwegian Shipowners’ Association, and a decade
at DNV in various management positions .
Board positions: Vice Chair at DNV Group and DNV Foundation,
Board member in Gard, Chair of SAYFR AS and Leader of the election
committee at the Norwegian War Risk Insurance Association.
Education: Master of Science degree in naval architecture and
marine engineering from the Norwegian University of Science and
Technology (NTNU). Completed IMD’s Senior Management Program
and INSEAD’s Executive Management Program
Jermund Lien
Acting Chief Financial Officer
CFO since November 2024
Previous experience: Extensive experience with prominent Nordic
and global corporations, both as a consultant and a corporate
executive. At KPMG, he headed Financial Management services in
Norway and led numerous large-scale international transformation
projects, primarily in the oil & gas and FMCG industries. Additionally,
he served as Director of Financial Planning and Analysis (FP&A) at
the TINE Group. Joined Wallenius Wilhelmsen in 2021 as SVP Global
Business Performance Management.
Education: MBA and a Bachelor of Science from the Norwegian
School of Economics (NHH) Executive programs at SDA Bocconi
School of Management in Milan and the National University of
Singapore.
Pia Synnerman
Chief Customer Officer
CCO since January 2023
Previous experience: Has for 27 years had various leadership roles at
Ericsson with 20 years in the sales and commercial area working in
Sweden, Middle East, Russia, and South Africa. Joined Wallenius
Wilhelmsen in 2021 as SVP Sales to EMEA.
Education: Master of Science degree in mechanical engineering
from KTH Royal Institute of Technology, Stockholm, and executive
programs at INSEAD Business School, Thunderbird School of Global
Management and London Business School.
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Wallenius Wilhelmsen – Annual Report 2024 11
Wenche Agerup
Chief People Officer
CPO since November 2022
Previous experience: Various roles in Telenor ASA from 2015 to 2022,
including EVP Corporate Affairs and General Counsel and Head of
Board Governance and Support in Singapore. Prior to joining Telenor,
16 years in Hydro ASA, including plant manager in Årdal, Norway,
project director in Australia and EVP People and General Counsel
from 2010 to 2015.
Board positions: Board member at Equinor ASA from 2015 to 2020
and Oslo Stock Exchange from 2012 to 2015, currently a board
member at Crayon ASA.
Education: Master’s degree in law from the University of Oslo and an
MBA from Babson College, Boston.
Michael (Mike) Hynekamp
Chief Strategy & Corporate Development Officer
In current role since May 2024
Previous experience: Joined Wallenius Wilhelmsen in 2007 with first
ten years at Wallenius Wilhelmsen Logistics AS, then 9 years as COO
Logistics Services . Prior to joining the company Mike spent 13 years
at Mercedes Benz (Daimler AG) in various roles in marketing,
operations and finance both in the US and in Europe.He started his
career with Ernst & Young LLP
Education: MBA degree in corporate finance, Fairleigh Dickinson
University, executive education from Columbia Business School,
licensed CPA, CGMA and holds a CTP accreditation as well as a
member of National Association of Corporate Directors
Xavier Leroi
COO Shipping Services
In current role since November 2022
Previous experience: Chief Customer Officer heading the global
group sales teams, customer experience and strategies for the
Wallenius Wilhelmsen group. Has held numerous positions within the
group for 25 years. Also holds the position as CEO of EUKOR Car
Carriers Ltd
Board positions: ARMACUP Car Carriers Ltd and PIRT Terminal
Education: Master’s degree from the Graduate School of
Management in Grenoble, France where he majored in finance. Has
completed various leadership programs, including the IMD Global
Leadership Program
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Wallenius Wilhelmsen – Annual Report 2024 12
Anette Maltun Koefoed
Chief Communications and Marketing Officer
In current role since April 2023
Previous experience: Joined the company in 2021 as VP Corporate
Communications responsible for establishing the Wallenius
Wilhelmsen group’s strategic marketing, brand building,
communications, and emergency management. Previously EVP of
Marketing & Communications at Berg-Hansen.
Education: Master of Science degree in marketing and has
completed Executive MBA courses in Strategic Business
Development and Innovation and Building High-Performance
Organizations.
Gro Rognstad
Chief Technology and Information Officer
In current role since October 2023
Previous experience: Joined the company in 2022 as SVP Global
Digital Platforms. Prior to joining Wallenius Wilhelmsen, she held
various technology management positions at DNB and was CTO of
Sogneti. During her consultant carrier, she worked in a wide range of
industries such as telecom, oil and gas, finance and insurance,
healthcare, and the public sector.
Education: Computer science candidate from the Norwegian School
of Information Technology. Has completed various leadership
programs.
Mikael Bjørklund
Chief Operating Officer, Digital Supply Chain Solutions
In current role since May 2024
Previous experience: Global President of Digital Products, Software
Engineering, and IT at Polestar, leading the strategic direction and
operational excellence of the digital products and software
engineering efforts, both commercial and industrial.
Education: Bachelor of Business Administration from Uppsala
University. Master of Science in Business and Economics | MSc,
International Marketing & International Management from University
of Miami Herbert Business School. Master of Business
Administration | MBA, Marketing & Management from School of
Business, Economics and Law at the University of Gothenburg.
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Wallenius Wilhelmsen – Annual Report 2024 13
John Felitto
Chief Operating Officer Logistics Services
In current role since August 2024
Previous experience: Joined Wallenius Wilhelmsen in 2001 as Vice
President-Sales, and has held various key commercial and executive
management roles in sales, ocean and logistics including Head of
Commercial, Deputy Head of Region Americas and President of the
WWL VSA Joint Venture. John has 34 years in the ocean
transportation and logistics industry.
Education: BBA in Marketing/Finance from Pace University in New
York City, an executive education in leadership from IMD Business
School in Lausanne, Switzerland and continuing studies credits in
ESG and Finance from NYU.
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Wallenius Wilhelmsen – Annual Report 2024 14
Words from the CEO
2024 has been a strong year for Wallenius Wilhelmsen. Our safety statistics are
strengthened, our customers are happier with our services and our global team is
more engaged. Our emissions continue to be reduced year over year, and we
delivered the best financial results in our history.
Thanks to the outstanding achievements of our team, or our rock band as we like
to call it, we are in a unique position to shape our industry and capture new
opportunities. Our industry is in dire need of connected, sustainable supply chains
and our mission is to lead the way in this transformation. To do so, we are
committed to perform and transform at the same time.
Safety, security and compliance is our number one priority
We never compromise on safety, security or compliance. Over the past years, our
performance has improved significantly in these areas, with lower injury rates,
improved cyber security defense and implementation of a robust compliance
program. Sadly though, in January 2024 we lost a crew member operating a forklift
on one of our vessels. We believe all accidents can be prevented and the in-depth
investigation that followed the accident has led to increased safety initiatives and
not least an extensive program for safety culture development. I take this fatality
very personally. It is a reminder to all of us that safety must continue to be at the
top of the agenda and at the forefront of our minds – every minute of every day.
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Wallenius Wilhelmsen – Annual Report 2024 15
Solid and growing book of business
In 2024 our customers demonstrated their trust in us through larger and longer
contracts than what we have had in the past. We announced USD 8.9bn worth of
contracts with a value above 100 million dollars during the year, and our solid and
growing book of business tells me that we have earned our customers’ trust and
that we are a vital part of their business.
We are proud to see that customer satisfaction increased in 2024, despite severe
disruptions caused by the unsafe situation in the Red Sea, the Baltimore bridge
collapse and increased uncertainties on global trade. Our work to increase
customer satisfaction will never stop and we have a team that is ready and able to
respond to new challenges and maintain the reliability and resilience of our global
supply chain.
Happy and engaged people
None of our achievements would have been possible without all our exceptional
and engaged people. I am very happy to see that our engagement score has
strengthened in 2024, exceeding our goal for the year. Going forward we will need
to be better at digitalizing our operation and customer interaction to ensure that
our people can continue to utilize their competencies effectively. Our unique band
of rock stars are our biggest asset. Leveraging all our knowledge and
implemented AI tools is key to increasing productivity, improving our connectivity
and taking the next step on the journey as an integrated supply chain partner to
our customers.
Cost and energy efficiency
We are taking considerable steps to become more efficient and move towards
net-zero by 2040. In 2023 we introduced our new Shaper Class vessels, and in
2024 we extended the new building program with the world’s largest RoRo vessels
with a capacity of 12,100 CEU. The Shaper Class program now totals 14 vessels and
is vital for us to renew our fleet with cost-effective and energy-efficient vessels,
capable of running on green fuels. Through these vessels, and systematic
investments to decarbonization across our company, we are positioning the
company to deliver on our ambitions to make net-zero solutions available and
affordable. As a testament to the depth and breadth of our decarbonization plan,
we are very happy that it was validated by the Science Based Targets initiative as
one of the first in our industry.
Strong financial performance and position
2024 was a record year for our financial performance. Our adjusted EBITDA ended
at USD 1,901m, resulting in a ROCE of 19,9%, an equity ratio at 39,5% and a leverage
ratio of 0.9. Our strong financial position allowed us to invest heavily into our
business and pay record dividends to our shareholders. We are dedicated to
delivering long-term value to all our stakeholders by striking a sustainable
balance between investments and returns. With our new pay-as-you-go dividend
policy, we have a dynamic means to ensure effective capital allocation.
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Wallenius Wilhelmsen – Annual Report 2024 16
Connecting the dots
As a global shipping and logistics company, we navigate in a complex world of
geopolitical uncertainty, climate change impacts, and fast-moving technology. So
do our customers. In times of deep and profound change, partnerships of co-
creation and co-innovation are essential.
Our mission is to lead the way to connected, sustainable supply chains. We will do
this by continuing to be our customers’ first choice in all our businesses,
differentiate through integrated solutions, make net-zero available and affordable
and with that, create sustainable value for all our stakeholders. The key to deliver
on this, is our people and the way they live our values to Care, Challenge and
Commit every day.
Our commitment to shape our industry is even more relevant in times of change
and uncertainty. Over the next few years, we will speed up our efforts in leading the
way to connected, sustainable supply chains. We will invest in new technologies,
competence development and customer integration. We call it Connecting the
Dots - of our customers’ supply chains and our own operation.
Lasse Kristoffersen
CEO
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Wallenius Wilhelmsen – Annual Report 2024 17
Message from the board
Our strategy
Our new revised strategy is a continuation of the overall direction set out in 2023.
With integrated solutions and best-in-class services as the foundation, we can
lead our customers to cost-effective ways to get their products to market, reduce
their emissions and make their supply chains more sustainable.
This is captured through our updated mission statement.
To lead the way to connected, sustainable supply chains, we must become an
integrated supply chain partner. The revised strategic goals aim to better reflect
what we want to achieve as an integrated company. These four goals are not
independent, but rather build on, and reinforce each other:
Goal 1: Be our customers’ first choice in core businesses
It is essential for our strategy and competitiveness that we have best-in-class
individual business units with the best products, the highest productivity and the
right pricing. Our goal is to further increase the competitiveness and continue the
development of our established businesses (shipping, terminals, processing), and
further extend our capabilities and products into supply chain management,
digital solutions and inland transportation.
Goal 2: Differentiate through integrated solutions
Through integrated and transparent solutions, we will be able to deliver enhanced
value to customers through solving more valuable problems for them. At the same
time, by having an integrated delivery ability across our businesses and products,
we will increase the efficiency and value capture of each of these.
Goal 3: Make net zero available and affordable
Reducing emissions represents a large challenge for us and our customers. We
have set out on a journey towards net-zero in 2040 and see it as our responsibility
and opportunity to make low and zero-emission solutions broadly available at the
lowest possible cost. Our customers need help to drive down emissions in a cost-
effective way across their supply chains, and we need to make sure that we can
offer integrated solutions with the lowest increase in fuel and energy cost per unit
handled.
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Wallenius Wilhelmsen – Annual Report 2024 19
Goal 4: Create value for stakeholders
We aim to combine best-in-class individual products with integrated solutions
and affordable low/zero-emission offerings to create long-term value to our:
• Employees by creating opportunities for skill development and career growth
in a company that is committed to leading the way on sustainability and
connectivity.
• Customers by addressing high-impact problems with cost-effective, resilient
and integrated products.
• Shareholders through growth and high quality earnings by leveraging
synergies across our operations and reducing cyclicality.
• Partners by expanding our network, which will provide them more effective
market access and greater transparency as part of our integrated offering.
Our values
Wallenius Wilhelmsen is a value driven company. In 2023 we made an in-depth
study of how these values can be expressed in a clear, simple and recognizable
way. This study resulted in implementation of the values: “We Care, We Challenge,
We Commit” in 2024.
We care about the safety and wellbeing of our people, customers and partners.
About the environment and society.
We challenge the status quo and we always strive to improve. We speak up and
listen up.
We commit for the long term and deliver on our promises. We act today but shape
for the future. In a safe, sustainable and responsible way.
Our values are essential to realizing our revised strategy of becoming an
integrated supply chain partner for our customers. These values serve as the
foundation for the relationships we build, the solutions we create, and the impact
we have in the industry.
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Wallenius Wilhelmsen – Annual Report 2024 20
2024 in brief
2024 was a remarkable year for Wallenius Wilhelmsen.
The company delivered growth and strong financial performance across all
segments. This enabled Wallenius Wilhelmsen to exceed its over-the-cycle
financial targets by a solid margin. The associated cash flow allowed the company
to pay attractive dividends, further invest in the business, and reduce net debt.
Multi-year contracts were consistently renewed at rates reflecting the current
market, securing a significant book of business for the years to come.
We also made important progress towards our sustainability goals, with
improvements in safety statistics and consistent reductions in emissions year
over year, trending ahead of our long-term target of net-zero in 2040 .
On the back of 2024, Wallenius Wilhelmsen has decided to pay a dividend of USD
1.24 per share for H2, bringing the amount for the full year to USD 1.85 per share, or
USD 782 million in total. The dividend consists of an ordinary dividend based on 50
percent of the company's 2024 net profit plus an extraordinary portion based on
the company's strong financial performance.
Overall, 2024 has strengthened Wallenius Wilhelmsen's strategic position and
ensured a solid financial foundation for the future.
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Wallenius Wilhelmsen – Annual Report 2024 21
Financial review
Consolidated financial results
Total revenue was USD 5,308 million for the year 2024, an increase of 3 percent
compared to 2023. Shipping revenues were up 1 percent year-over-year (YoY),
from USD 3,881 million in 2023 to USD 3,937 million in 2024. Capacity constraints as
a result of re-routing vessels via the Cape of Good Hope negatively impacted
volumes. Shipping experienced a 8 percent drop in transported volumes year-
over-year. The lower volumes were more than offset by increased average rates
driven by the continued repricing of the book of business. In addition, average
rates were positively impacted by improvements in cargo and trade mix. Logistics
revenues were up 5 percent, from USD 1,148 million to USD 1,205 million, as
volumes increased as a result of less disruptions in supply chains. Government
revenue increased 32 percent from USD 324 million in 2023 to USD 427 million,
mainly due to increased U.S. flag cargo activity. In addition, two vessels were
added in 2024 generating increased charter revenue from the shipping segment.
EBITDA ended at USD 1,869 million for the year 2024, up 3 percent from USD 1,807
million in 2023. Adjusted EBITDA ended at USD 1,901 million, up 5 percent
compared to in 2023. 2024 was another strong year for shipping services in spite
of the reduction in volumes, with adjusted EBITDA up 2 percent from 2023. The
improvement over last year was mostly related to a continued tight global RoRo
fleet situation and the group’s continuous efforts to reprice its book of business.
Increased net fuel costs (fuel surcharges less fuel expenses) contributed to
dampen the improved profitability from increased rates. For logistics services,
adjusted EBITDA increased 13 percent, as revenue increases exceed the increase
in costs resulting in a higher average margin. Government services saw adjusted
EBITDA increase of 41 percent, due to higher revenues and improved margins. For
a detailed explanation of the definition of adjusted EBITDA, please refer to the
section on ‘Reconciliation of alternative performance measures’ . Depreciation
and amortization amounted to USD 580 million versus USD 577 million in 2023.
In 2024, Wallenius Wilhelmsen recognized an impairment loss of USD 1 million
related to intangible and tangible assets in the shipping and logistics segments.
Net impairment loss in 2023 was USD 5 million from a charge to goodwill allocated
to logistics services.
Net financial expenses were USD 154 million versus USD 186 million in 2023. Net
financial income was USD 86 million, up from USD 74 million in 2023. Interest
expense including realized interest derivatives was USD 219 million, an increase of
USD 2 million versus 2023. Currency gain including realized currency derivatives
was USD 11 million, compared to a loss of USD 9 million in 2023. Net financial
expenses were negatively impacted by USD 19 million in unrealized derivative loss,
mainly driven by USD 22 million unrealized losses on foreign currency derivatives.
This was partly offset by USD 3 million unrealized gains om interest rate
derivatives. In 2023, unrealized derivative loss was USD 18 million, with USD 17
million in unrealized losses on interest derivatives and USD 1 million unrealized
losses on foreign currency derivatives. See note 5 in the financial statements for
further details.
The group recorded a tax expense of USD 73 million versus a tax expense of USD 68
million in 2023. Payable tax was USD 81 million, wherein USD 27 million was
withholding taxes. In addition, there was a USD 8 million change in deferred tax.
The group continues the non-recognition of net deferred tax assets in the balance
sheet related to tax losses in the Norwegian entities, primarily due to uncertainty in
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Wallenius Wilhelmsen – Annual Report 2024 22
future utilization. In addition, the group reversed certain deferred tax assets in
2024 related to interest expenses that cannot be utilized.
Net profit for the year 2024 was USD 1,065 million, up 9 percent from USD 974
million in 2023, whereof USD 973 million attributable to owners of the parent and
USD 93 million to non-controlling interests.
Financial position and capital structure
The financing structure in the group consists of five funding units, as seen below
as of December31, 2024
2
. Most financing is subject to certain financial and non-
financial covenants or restrictions within the funding unit. The group frequently
upstream cash from its subsidiaries within regulatory, shareholder agreements,
financing terms and tax restrictions. Upstream from the 100 percent owned
funding units WW Ocean, WW Solutions and ARC is flexible and can be executed
through the year. Upstream from EUKOR is limited to maximum two dividend
payments per year, and Wallenius Wilhelmsen receives its pro-rata share. See
more information on financing activity in 2024, financing structure and covenants
in Note 15. Interest-bearing liabilities.
Wallenius Wilhelmsen ASA
Consolidated interest-bearing debt:
WW ASA entity debt:
Consolidated group cash:
WW ASA entity cash:
$3,158m
$374m (unsecured bonds only)
$1,393m
$227m
↙ ↓ ↓ ↘
ARC
(100% owned)
EUKOR
(80% owned)
WW Ocean
(100% owned)
WW Solutions
(100% owned)
Bank debt, secured by vessels Bank and leasing debt, mainly
secured by vessels
Bank and leasing debt, mainly
secured by vessels
Parent company guarantee
Bank and lease debt, pledge in
shares
Parent company guarantee
Covenants on ARC:
• Fixed charge coverage ratio
• Funded debt / EBITDA
• Value to loan
Covenants on EUKOR:
• Minimum liquidity
• Ratio of EBITDA to interest expense
• Loan to value
Covenants WW ASA consolidated:
• Minimum liquidity
• Gearing ratio
• Loan to value
Covenants WW ASA consolidated:
• Minimum liquidity
• Gearing ratio
Bank debt: $163m
Undrawn RCF: n.a.
Leases: $2m
Cash: $126m
Bank debt: $429m
Undrawn RCF: $50m
Leases: $657m
Cash: $471m
Bank debt: $517m
Undrawn RCF: $402m
Leases: $216m
Cash: $337m
Bank debt: $303m
Undrawn RCF: $42m
Leases: $499m
Cash: $232m
Total equity amounted to USD 3,321 million at year-end 2024, corresponding to a
ratio of 39.5 percent, up from 36.0 percent at the end of 2023. The liquidity position
was solid, with cash and cash equivalents of USD 1,393 million and USD 494 million
in undrawn credit facilities at year end 2024. The group had net interest-bearing
debt of USD 1,758 million, consisting of bonds, bank loans, export credit facilities
and leasing commitments. The group was in compliance with all loan covenants at
year-end 2024. The group had 25 unencumbered vessels per year end.
Remaining CAPEX for the fourteen Shaper class newbuildings on order is
approximately USD 1.5bn with deliveries stretching from 2026 to 2028. In
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Wallenius Wilhelmsen – Annual Report 2024 23
2
Wallenius Wilhelmsen ASA has deposited USD 224 million in the WW Ocean
Holding cash pool. In the financial accounts, this is presented as cash in WW
Ocean Holding and as an inter-company receivable in Wallenius Wilhelmsen ASA .
September, EUKOR secured in total USD 450m of post-delivery sustainability-
linked financing for six vessels for seven years from each delivery at Term SOFR +
margin 155 basis points. Of the remaining eight vessels, seven are to be owned by
WW Ocean and one by EUKOR.
In September 2024, the group repaid a USD 138 million bond maturity with cash,
reducing the number of outstanding bonds to three as per the group’s financial
strategy.
Cash and cash equivalents was USD 1,393 million as at December31, 2024.
Cash flow
The group reported a negative net cash flow of USD 275 million from operations,
investing and financing activities in 2024. The net cash flow from operations
amounted to USD 1,762 million, slightly down from USD 1,771 million in 2023. Net
cash flow used in investing activities was USD 108 million compared to USD 91
million in 2023. The most significant investing activities were installments on
newbuilding contracts and other vessel upgrades of USD 108 million, regular dry-
docking of approximately USD 63 million. Various investments in logistics services
amounted to USD 23 million. Net cash flow from investing activities was positively
impacted by interest income USD 80 million. Net cash flow from financing
activities was negative USD 1,929 million compared to negative USD 1,190 million in
2023, reflecting net repayment of debt (including leasing liabilities), interest costs
and payment of USD 738 million of dividends paid to shareholders in 2024. In
addition, USD 115 million in dividends was paid to non-controlling interests.
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Wallenius Wilhelmsen – Annual Report 2024 24
Long-term financial targets and dividend policy
Wallenius Wilhelmsen has three long-term financial targets to maintain
throughout the business cycles.
Long-term financial targets (over the cycle):
• Return on capital employed (ROCE) > 8 percent. Calculated as last twelve
months of adjusted EBIT divided by the last twelve months of average capital
employed (total assets less total liabilities plus total interest-bearing debt).
• Leverage ratio < 3.5x. Calculated as net interest-bearing debt divided by last
twelve months of adjusted EBITDA.
• Equity ratio > 35 percent. Calculated as book value of equity divided by book
value of total assets.
Dividend policy
Wallenius Wilhelmsen’s objective is to provide shareholders with a competitive
return over time through a combination of rising value for the Wallenius
Wilhelmsen share and payment of regular dividend payments to the shareholders.
The company targets a dividend which over time shall constitute 30-50 percent of
the company’s profit after tax on an annual basis. The dividend will be declared
and paid on a semi-annual basis. The size of the dividend will be derived and paid
based on the reported net profit for the first and second half of each fiscal year,
respectively. Dividends will be declared in USD and paid in NOK.
When determining the size of the dividend, the Board will consider its financial
targets, near-term market outlook, the group’s financial position, future capital
requirements, as well as other relevant factors such as extraordinary effects.
Furthermore, the Board may from time to time, taking into consideration the
financial position of the company, consider extraordinary dividends and/or share
buybacks to enhance shareholder returns.
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Wallenius Wilhelmsen – Annual Report 2024 25
Shipping segment
Wallenius Wilhelmsen's main objective for the shipping segment is to strengthen
its position as the RoRo shipping market leader with unrivaled high & heavy and
breakbulk capabilities. This will be achieved while taking a leading position in
decarbonization and the journey to net-zero by digitalizing the supply chain,
driving technological innovation and further improving operational effectiveness.
Summary of 2024
2024 was another extraordinary year for the shipping segment and the best year
on record in terms of EBITDA. Shipping services has delivered strong results since
the middle of 2021 following several years of weak markets and fleet overcapacity.
A fully utilized fleet, along with the repricing of our book of business, were the main
drivers for the 2024 performance.
In December 2023 we decided to re-route all our vessels planned for Red Sea
transit via the Cape of Good Hope due to the security situation in the region. The
safety of our people is our number one priority, and Wallenius Wilhelmsen was the
first car carrier operator to suspend sailings through the Red Sea. The re-routing
impacted tonnage capacity negatively and about one week was added to each
Europe-Asia and Asia-Europe sailings. The policy continued in 2024. This
represents a loss of about 5% of the transport capacity and is one major driver of
the drop in volumes we saw in 2024.
Total revenue was USD 3,937 million for 2024, up 1 percent compared with 2023.
Average net freight rates increased by about 7 USD/cbm, where the major driver
was repricing book of business. Positive development in trade and customer mix
were also contributing factors in terms of average net freight rates.
We saw a positive development in the energy efficiency operating indicator (EEOI)
compared to 2023, despite lower transported volumes and increase in voyage
durations on account of Red Sea re-routing. We achieved this by reducing the
average speed in the fleet, and increased our biofuel purchases substantially in
2024. We continue to focus strongly on the long-term plan to achieve our net-zero
by 2040. Further information about the company's commitment to
decarbonization is described in the Environment chapter.
EBITDA for the shipping segment ended at USD 1,561 million, up from USD 1,527
million in 2023. Cargo and voyage related expenses decreased by USD 56 million
due to efficient voyage operations and less volumes. Fuel expenses increased
USD 31 million on significant increase in biofuel purchases and consumption.
Charter expenses increased by USD 24 million on increased charter hire to the
government segment, as well as reclassification of several vessels from right-of-
use assets to short-term charters. This impacted the full charter cost, as opposed
to only the service component when the leased vessel is capitalized on the
balance sheet as a right-of-use asset. Vessel operating expenses were up USD 18
million on exercises of purchase options, as well as a general increase in vessel
operating cost based on inflation and cost increase. Selling, general and
administrative expenses (SG&A) increased USD 37 million on general inflation and
payroll increase, further coupled with increase in Korean tonnage tax related
expenses and legal provisions.
The fleet
At year-end 2024, Wallenius Wilhelmsen operated a fleet of 125 vessels, stable
from 125 vessels at year-end 2023. The group owned 90 vessels at year-end, an
increase from 86 vessels at year-end 2023, the result of the exercise of purchase
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Wallenius Wilhelmsen – Annual Report 2024 26
options. Long-term charters decreased from 39 vessels in 2023 to 35 vessels in
2024 based on this exercise of purchase options. Charter rates remained high in
2024.
At year-end, the assessed market value of the company’s 90 owned vessels was
USD 6.4bn based on the average of two independent ship broker’s valuations. At
year-end, the company and its subsidiaries hold 14 purchase options linked to
leased vessels, all at prices significantly below current market levels.
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Wallenius Wilhelmsen – Annual Report 2024 27
Logistics segment
Our ambition for logistics services is to be our customers’ first choice in
processing and terminal services. Logistics services mainly serve the same
customer groups as shipping services. Customers operating globally are offered
sophisticated logistics services through four distinct products.
Auto is the largest product group in the logistics portfolio, providing light vehicle
processing services to auto producers globally. High and heavy (H&H) includes
equipment processing centers at, on and off port sites globally. with the largest
concentration in the US. Terminal offers cargo processing, handling and storage
at some of the world’s largest RoRo ports. Inland includes the transporting of
cargo by road or rail to a port or final point of sale.
Summary of 2024
Logistics services delivered a strong 2024. Auto, terminal and high and heavy all
grew in revenue, while inland services experienced decline compared to 2023.
Total logistics segment revenue for 2024 was USD 1,205 million, up 5 percent from
USD 1,148 million, as volumes significantly increased from 2023. Adjusted EBITDA
was USD 197 million, up USD 22 million (13 percent) compared to 2023.
Auto revenue for the full year ended at USD 566 million, an 11 percent increase
from 2023. Auto EBITDA for the full year ended at USD 82 million, a 30 percent
increase from 2023, thanks to 11 percent revenue growth and operational
efficiencies. North America, a main contributor to the auto business, delivered a 4
percent increase in volume and 6 percent price/mix, positively impacting profit
margins.
The high and heavy market was slow in 2024, impacted by higher interest rates.
Although this impacted processing volumes and revenue negatively, storage
revenue was very strong. New high and heavy site investments increased storage
capacity hence the revenue, especially in US and Australia. Total high and heavy
revenue was USD 165 million, an increase of USD 22 million vs 2023. EBITDA for
2024 was USD 35 million compared to USD 31 million in 2023
Terminal revenue was USD 283 million, a 4 percent increase from 2023. EBITDA for
2024 was USD 102 million compared to USD 98 million in 2023. The Brunswick
terminal expansion brought incremental business, which more than offset the
negative impact of the Baltimore bridge collapse in US. The announced sale of
MIRRAT terminal in Australia to a subsidy of Qube logistics is expected to be closed
in H1 2025, subject to regulatory approval. Up until closing, we will operate the
terminal as normal. See note 24 in the financial statements for further details.
A slower high and heavy market and longer storage periods in our facilities
resulted in less stock movements, and hence less inland transportation revenue.
EBITDA was USD 1 million in 2024 compared to USD 9 million in 2023. We expect a
stronger H&H market and hence improvements in inland transportation in H2
2025.
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Wallenius Wilhelmsen – Annual Report 2024 28
Government segment
The government services segment provides ocean transport of United States flag
cargoes and performs global logistics services for the U.S. government. Ocean
transport includes RoRo cargo, breakbulk and vehicles. It also includes charters of
vessels to affiliated companies in the shipping services segment and charters or
sales of vessels to the US government. Logistics services for the US government
are primarily related to multimodal transportation, third party logistics support,
stevedoring and terminal operations. The primary customer is the US government,
but the segment also includes U.S. flag commercial cargos such as those
generated by the financial sponsorship of a federal program, or a guarantee
provided by the US government.
Summary of 2024
Total revenue from the government segment for the full year of 2024 was USD 427
million, up 32 percent from USD 324 million. This was mainly due to increased US
flag cargo activity in large part attributable to cargo moved in support of the United
States and NATO response to the Russian invasion of Ukraine, two vessels added
in 2024 generating charter revenue, increased vessels on charter and increased
logistics support to the U.S. government. EBITDA was USD 183 million, up USD 53
million (41 percent) compared to 2023. The increase in EBITDA was mainly driven
by increased government and charter revenue, offset in part by increased
operating costs.
The segment's revenue and EBITDA development is primarily driven by
government activities that are in part driven by world events and government
objectives which do not follow regular seasonal patterns or the commercial
business cycle driving the other segments. In line with the company's
sustainability objectives, the segment reduced the impact of rising fuel and labor
costs through fuel consumption initiatives, pricing adjustments and increased
focus on safety management.
In 2023 government services won its 10th Maritime Security Program (MSP)
contract. In accordance with that contract, the M/V Tulane was re-flagged to U.S.
registry in February 2024. As part of the process the vessel changed its name to
M/V ARC Honor and was added to the MSP fleet. In September 2024 M/V Tugela
was re-flagged to U.S. registry, changed its name to the M/V ARC Endeavor and
later in the year replaced the M/V Endurance in the MSP fleet. The company is
continuing to operate the M/V Endurance under U.S, flag without the benefits of
MSP.
Government services continued to expand its U.S. government logistics
businesses. This included stevedoring and related terminal services in Europe and
winning contracts and task orders for various global logistics support activities for
the U.S. government.
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Wallenius Wilhelmsen – Annual Report 2024 29
Market development and outlook
In 2024, the global auto market experienced varied trends, with growth in North
America and China, but challenges in BEV
3
sales in the EU. For 2025, global GDP
growth is anticipated to strengthen, though geopolitical tensions and the
introduction of new tariffs in the US create increased uncertainties. Auto exports
are expected to rise, led by China and Korea, with the US likely to see continued
sales momentum and the EU potentially boosting BEV sales.
Auto markets
4
In 2024, global light vehicles sales, excluding Russia, amounted to 86.5 million
vehicles, growing at 1.1 percent YoY, while light vehicle production ended at 87.9
million units, adding approximately 1.3 million units to global inventory.
In the US, total annual sales were 15.85 million units, still 7 percent behind pre-
COVID levels. BEV and hybrid sales climbed to a record 8.9 percent share in
December, likely due to anticipated EV subsidy reductions by the new
government.
In 2024, North American production reached 16 million units, a 2 percent increase
over 2023. Growth was uneven among OEMs, with Tesla and GM increasing
production, while Nissan and Stellantis saw decreases due to inventory reduction
efforts. In December, US inventory levels rose 13 percent YoY, but total auto
inventory declined by 9 percent due to OEMs' efforts to shrink inventories, lower
post-election uncertainty, and increased consumer confidence.
In the EU, new car registrations grew by 0.8 percent YoY, whereof BEV volumes
declined by 7 percent. The total BEV penetration for the year ended at 13 percent
compared to 14 percent in 2023. Weak sales momentum was likely due to subsidy
cuts and OEMs pushing higher CO
2
-emitting models ahead of the 2025 CO
2
scheme. This is expected to boost BEV sales in 2025, especially in the entry-level
segment.
Deep-sea volumes in 2024, excluding Russian and intra-regional trades, are
estimated at 15.6m units, growing by 6 percent YoY. The YoY growth was driven by
higher volumes from Asia and Europe.
In 2024, Chinese exports totaled 5.86 million vehicles, growing by 19.3 percent YoY,
driven by higher volumes to Southeast Asia, the Middle East, Africa, and South
America. The total annual Korean export totaled 2.78 million vehicles, including 2.17
million units from Hyundai and Kia, while Japanese exports totaled 4.2 million
units in the year, representing a 5 percent YoY decline. Despite soaring hybrid
sales in key export markets, declines by Toyota and Nissan, partially offset by
higher exports from Honda, contributed to the drop.
For 2025, global GDP growth is projected to strengthen slightly to 3.3 percent
5
,
while inflation is expected to decline further and reach its target in almost all major
economies by the end of 2025 or early 2026 (OECD). However, elevated
geopolitical tensions, and particularly the possible introduction of new trade
tariffs, pose significant uncertainties, potentially increasing inflation and
hindering economic activity and consumer confidence.
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Wallenius Wilhelmsen – Annual Report 2024 30
3
BEV: Battery electric vehicle
4
Sources: S&P500, JAMA, KAMA, CAMA, Cox Automotive, Autonews
5
Source: IMF
In terms of auto exports, the Chinese Association of Automobile Manufacturers
(CAAM) forecasts an export volume of 6.2 million units, a YoY growth of 6 percent.
The Korea Automobile & Mobility Association forecasts a 1 percent YoY growth,
reaching a volume of 2.79 million units, marking the highest level since 2016.
In the US, a fully recovered supply of light vehicles after several years of
disruptions, improved affordability with interest rate cuts, higher purchasing
power, and pent-up demand are expected to sustain higher sales levels. However,
this demand could be weighed down by uncertainty related to policy changes and
IRA incentives, tariffs on imports, a higher risk of returning inflation, and resilient
new and used vehicle pricing.
In the EU, the auto market will be significantly influenced by tariffs and EU CO
2
emission targets. European OEMs will aim to shift their product mix towards
affordable BEVs and PHEVs to avoid significant penalties for non-compliance. A
promising pipeline of new models in the entry-level segment and tough price
competition from Chinese OEMs are likely to drive the growth of BEV and PHEV
sales. Regarding exports, the looming risk of American tariffs on European
vehicles is likely to hurt export volumes to the US. In China, European OEMs are
also struggling to maintain their market shares, particularly in the BEV segment.
However, a large portion of these volumes are sourced domestically in China, and
we expect limited impact on exports from Europe to China, as most of the exported
volumes are in the luxury segment.
High and Heavy market
The soft trend for our unprorated load volumes of rolling high & heavy equipment
continued trough 2024. The volumes in Q4 hit the lowest level on record, and the
loaded volumes declined with 29 percent YoY. YoY, volumes were down 23 percent
in 2024. For our six major trades, volume declined 20 percent in 2024, but only one
trade was down more than 25 percent.
Higher uncertainty and lower global activity levels, mainly due to geopolitical
tensions, US elections, increased costs, and a new economic reality, are factors
likely to have affected Q4 loaded high & heavy volumes. Once the market adjusts,
we anticipate higher demand for rolling high & heavy, potentially recovering in H2
2025 and into 2026.
In terms of high & heavy demand, global economic growth is the key factor for the
activity level. For the construction industry interest rates, higher costs and political
initiatives will affect the short-term outlook and demand for machinery. We have
observed more focus on investments in infrastructure, energy, and utilities. For
commercial real estate and residential construction, the uncertainty has come
down somewhat, and there are signs of flattening. We assume activity in the
western world may pick up in 2025. The property market in China is still
demanding, but stimulus packages and political intervention is likely to stabilize
the market and give a more positive outlook. The recovery will probably take time,
but we expect higher activity level for both real estate and infrastructure projects
in the mid-term period.
Farming sentiment remains weak, but there are recent signs of optimism among
US farmers. Key concerns are low crop/livestock prices, higher operating costs,
interest rate levels, and international agricultural trade's future. This outlook
negatively impacts machinery demand, but there are signals that indicates hope
for a mid-term recovery. The UN food price index is at a steady level, and we
assume the farming economy will improve in the coming years.
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Wallenius Wilhelmsen – Annual Report 2024 31
The mining industry remains strong, and we expect this to continue. Geopolitical
tension, electrification, and awareness of their own sourcing vulnerability has
made western countries focus on self-sufficiency and domestic production of
metal, minerals and rare earth metals. It implies more focus on investments in the
mining industry. The trend for digitalization, electrification, and automation is also
lending support to demand for mining equipment.
Global fleet
At year-end, the global vehicle carrier fleet totaled 721 vessels with more than
2,000 car equivalent unit (CEU) capacity. In 2024, there were 69 new orders of
vessels placed, 46 vessels were delivered. No vessels were retired during the year.
According to Clarksons, the orderbook for deep-sea vehicle carriers was by year-
end 2024 around 216 vessels (>2,000 CEU), representing approximately 39 percent
of the global fleet in capacity terms.
As per the current delivery schedule and barring any delays, some 65
newbuildings are planned for delivery during the remainder of 2025, 58 vessels in
2026, 45 vessels in 2027.
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Wallenius Wilhelmsen – Annual Report 2024 32
Key risk exposures
Wallenius Wilhelmsen has a group-wide enterprise risk management model that is
based on ISO 31000 risk management and seeks to ensure that risks are
identified, analyzed, evaluated, and appropriately managed. Our risk management
policy defines that risk management is an integral part of strategic decision-
making as well as our operational day-to-day activities, and risk management
shall help decision makers understand uncertainties before deciding on actions.
Every quarter, management presents a detailed risk assessment to the Board of
Directors. This includes mitigating actions which cover all business units and
corporate functional areas, as well as emerging risk factors. Governing bodies,
management and employees are aware of the current environment in which we
operate and are responsible for implementing measures to mitigate risks, acting
upon unusual observations, threats or incidents, and proactively try to reduce
potential negative consequences. Wallenius Wilhelmsen monitors and
continuously improves internal controls, systems and processes for handling
risks.
Wallenius Wilhelmsen is exposed to a variety of risks through its global operations.
These risks are within the following areas: strategic, operational, financial and
regulatory
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Wallenius Wilhelmsen – Annual Report 2024 33
Strategic risks
Severe geopolitical event negatively impacting global trade
Geopolitical risks are threats,
realizations and escalations of adverse
events associated with wars, terrorism
and tensions among states and political
actors that affect the peaceful course of
international relations. Potentially
escalating trade wars, increased tariffs,
and a growing concern of global
leadership deficit are factors that
contribute to an increased risk.
Our broad global presence combined
with solid client exposure contributes to
reducing this risk element.
Crisis management, risk scenario
analysis and business continuity plans.
We continuously monitor and scan the
horizon for emerging geopolitical risks.
Changes in tariffs can shift the balance
between locally produced and exported
cargo and negatively affect the overall
demand for deep-sea ocean
transportation. A shift in customers'
market positions can represent both
opportunities and risks for the
company’s operating entities.
Risk trend: Increased
Resilience in a market downturn
Demand for shipping and logistics
services are cyclical and closely
correlated to global economic activity in
general, and deep-sea transportation of
light vehicles (LVs) and high and heavy
(H&H) equipment in particular. Changes
in the global economy therefore strongly
impact the development of Wallenius
Wilhelmsen's volumes and financial
performance.
A more volatile market environment
poses challenges to the company given
our global reach.
The owned tonnage and long-term
charters represent the core fleet. The
short-term charters enable the operating
entities to scale up and down capacity to
meet changing demand in a cost-
efficient manner. The company
proactively handles trade imbalances
through vessel swaps and space charter
arrangements for excess volumes with
other operators.
In the short-term, any reductions in
volumes are not expected to be critical
since we can adjust capacity and reduce
costs temporarily. On the other hand,
indirect effects could lead to continued
and increased overcapacity and create
pressure on rates. Such effects could be
slower underlying global economic
growth combined with reduced deep-sea
volumes across all cargo segments.
New emissions standards in the LV
markets, as well as incentives, will also
influence sales mix and trading patterns.
Risk trend: Increased
Failure to deliver on decarbonization transition plan
Wallenius Wilhelmsen has a net-zero
2040 objective. There are several
uncertainties related to achieving this
objective. These, include selection of
technology, customers’ willingness to
pay in an economic downturn, too slow
transition, external events (f.ex.
Baltimore) that affect the transition plan,
insufficient supply of new fuels and drop-
in fuels..
Regulatory developments from for
instance the International Maritime
Organization (IMO) and the(EU have an
impact on the shipping industry and the
company.
We have a comprehensive board-
approved decarbonization strategy, and
we are implementing a corporate
sustainability management system.
We are investing in new technology and
fuels, and engaging with partners on
new technology and energy solutions.
High on the agenda is to prepare and
position ourselves for regulatory
changes. We seek to contribute to
progressive yet pragmatic outcomes
through active engagement in the
regulatory development process.
Please see the sustainability statements
for details of our materiality analysis, and
the chapter on Climate change in the
Environment chapter of this report.
Risk trend: Stable
What is the risk How we manage the risk Possible consequences and scenarios
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Wallenius Wilhelmsen – Annual Report 2024 34
Operational
Health, safety and security risks
As a result of our core operations,
Wallenius Wilhelmsen is exposed to
safety risks arising from both its sea and
land operations. Our key safety risks are
incidents onboard and related to vessels
such as fire and outbreak of contagious
diseases. The key risks at our land-
based operations mainly relate to the
handling and treatment of vehicles and
machinery and undesired breaches to
perimeters of our terminals and other
facilities.
As other companies in the shipping
industry, Wallenius Wilhelmsen risks
exploitation by criminal organizations
involved in for instance smuggling of
narcotics and human traffickers.
We believe all accidents are avoidable
and seek to mitigate these risks through
respective management systems and
safety culture initiatives. The systems
include a sharp focus on training,
updating routines and processes and
measures designed to secure
continuous compliance with health,
safety and security regulations.
Frequent and regular emergency
response drills, toolbox talks and risk
assessments are run to reduce these
risks.
The group monitors key performance
indicators and performs root cause
analysis of undesired events to identify
and prevent potential risks. For further
information, please see the Social
chapter in this annual report..
Please see the Social chapter in this
annual report for more information on
possible consequences and scenarios
Risk trend: Stable
Cyber security
Cyber-attacks and attacks on our
operational systems are identified as an
important risk due to increasing attacks
in the maritime sector, with a significant
rise in OT vulnerabilities due to IoT
connectivity and geopolitical tensions.
Together with partnerships with leading
industry players, Wallenius Wilhelmsen
has protection tools and mechanisms in
place. We are stepping up our initiatives
and target operating model development
for an uplift in cyber security capabilities,
including Maturity assessments of cyber
security in OT environments on vessels,
ports, and facilities.A Business
Continuity Management System will be
implemented in 2025.
Please also see Security and
emergency response in Principles of
governance section.
Cyber operations targeting port entities
causing significant congestion and
delays. Causing loss of control of
vessel(s) or significant downtime in
vessel operations. Replacement of
potentially compromised ICT systems.
Non-compliance towards new
regulations such as the EU’s NIS2
Directive and IACS standards.
Risk trend: Increasing
Operational disruption and congestions
During 2024, global supply chain
disruptions continued to create
challenges to logistical planning. Due to
the security situation in the southern
parts of the Red Sea, all vessels were
re-routed to avoid the area from
December 2023 and onwards.
Other areas of concerns are US West
Coast & Brunswick congestion (mainly
due to lack of yard space for import
volume), Industrial actions (strike) by
dockworkers (stevedores) etc
We continue to monitor the Red Sea
situation closely and stay in direct
consultation with marine authorities,
industry bodies and all relevant
counterparts.
Sustained port congestions cause
vessel delays and pose a risk to
operations and the overall fleet utilization
and lifting capacity.
Shortage in tonnage supply when vessel
days are lost in waiting also entails high
opportunity cost.
Risk trend: Stable
Environmental risks
The environmental risks are mainly
related to our vessels and include risks
such as oil spills through bunkering,
chemical handling and most severely, in
case of fire, explosion, collision and
grounding.
To reduce these risks, we conduct
frequent emergency response drills,
toolbox talks and risk assessments. We
monitor key performance indicators and
performs root cause analysis of
undesired events to identify and prevent
potential risks.
The management systems prioritize
training, routines and measures
designed to ensure continuous
compliance with environmental
regulations.
Please see the Environment section of
this report for further information.
Risk trend: Stable
What is the risk How we manage the risk Possible consequences and scenarios
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Wallenius Wilhelmsen – Annual Report 2024 35
Financial
Financial exposures
The main financial risk exposures for
Wallenius Wilhelmsen are interest and
currency rates along with fuel and
carbon prices.
Currency: The US dollar is the dominant
currency for both revenues and costs
across the group. It is also the group's
presentation currency. The group is
exposed to currency risk on revenues
and expenses in non-functional
currencies (transaction/cash flow risk)
and balance sheet items denominated in
currencies other than USD (translation
risk). The group's largest foreign
exchange exposure is EUR against
USD, but the group also has exposure to
a number of other currencies whereof
KRW, JPY, SEK, CNY and NOK are the
most important.
Fuel and carbon prices: The group is
exposed to carbon price risk through the
EU ETS.
There is a low-probability risk that HMG
will exercise its option to put its 20
percent ownership in EUKOR on
Wallenius Wilhelmsen
Interest rates: Wallenius Wilhelmsen's
policy is to economically hedge between
20-80 percent of the average net interest
rate exposure over the next five years,
predominantly through interest rate
swaps and fixed rate loans. The hedge
ratio currently stands at about 65
percent.
Currency: Various financial derivatives,
such as forwards, options and cross-
currency (basis) swaps are used to
hedge this exposure.
Fuel risk: Primarily managed through the
inclusion of fuel adjustment factors (FAF)
in the customer contracts. Since FAFs
are typically calculated on the average
price over an historical period, and then
fixed during an application period, a lag
effect exists, which means that the group
is exposed to price changes in the short
term.
Carbon prices: Primarily managed
through surcharges in customer
contracts, though lag effects exists.
For a detailed assessment of financial
risk, see note 16 – financial risk and note
17- written put option in the financial
statements.
Risk trend: Stable
Regulatory
Regulatory management
Due to our global presence and
operations within different segments, the
group is exposed to numerous
regulatory frameworks. These include
regulations related to health and safety,
climate, environment, anti-corruption,
sanctions, fair competition, security and
data privacy. Changing regulatory
environment is adding complexity e.g.
EU Omnibus simplifying the Corporate
Sustainability Reporting Directive
(CSRD), Corporate Sustainability Due
Diligence Directive (CSDDD) and
Taxonomy,
Compliance with relevant requirements
within these fields, in addition to other
corporate matters, are managed in
collaboration with corporate functions,
subject matter experts and local
responsibilities as per jurisdictional
requirements
Awareness and training activities are
conducted based on roles and
responsibilities. For more on risk
management and internal control, please
see Business conduct.
Non-compliance can lead to reputational
damage, fines, default on loan
agreements and debarment from
applicable markets
Risk trend: Stable
What is the risk How we manage the risk Possible consequences and scenarios
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Wallenius Wilhelmsen – Annual Report 2024 36
Events after the balance sheet date
Wallenius Wilhelmsen is expanding its logistical footprint and was in January
awarded the role as operator of the RoRo terminal in the port of Gothenburg,
Sweden. Wallenius Wilhelmsen will take over operations as of February 2026 and
the contract has a duration of 12 years.
On February 11, 2025, the Board approved a dividend payment linked to 2H 2024
totaling USD 1.24 per share, or USD 524m in total. The dividend consists of an
ordinary dividend based on 50 percent of the company's net profit and an
extraordinary portion based on the company's strong financial position.
On February 12, 2025, Wallenius Wilhelmsen introduced a new sustainable finance
framework.
On March 4, the USA introduced 25 percent tariffs on imports from Mexico and
Canada. Canada responded by introducing reciprocal tariffs on imports from the
USA. Additional tariffs was also introduced on Chinese imports to USA. The latter is
expected to have limited impact on auto imports.
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Wallenius Wilhelmsen – Annual Report 2024 37
Prospects
Based on our book of business and recent contract renewals in shipping and
logistics, we expect 2025 to be another strong year.
Our outlook remains positive, while we are closely monitoring two key risks:
1. Geopolitical challenges and the risk of escalating trade conflicts
2. We expect fleet growth to accelerate and this may impact the market balance
The current market situation and recent contract renewals, combined with
heightened market and geopolitical uncertainty, we expect our adjusted EBITDA
for 2025 to be at least in line with, or up to 10 percent above, what we reported in
2024. We anticipate that the second half of 2025 will be better than the first half as
new contracts take full effect. The guidance is based on the following
assumptions:
• Sale of MIRRAT completed in Q1 2025
• Continued avoidance of the Red Sea
• No material negative effects from tariffs on volumes
The forward-looking statements herein, including assumptions, opinions and
views of Wallenius Wilhelmsen or cited from third party sources, are solely views
and forecasts which are subject to risks, uncertainties and other factors that may
cause actual events to differ materially from any anticipated development. The
company does not provide any assurance that the assumptions underlying such
forward-looking statements are free from errors, and it does not accept any
responsibility for the future accuracy of any forward-looking statements.
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Wallenius Wilhelmsen – Annual Report 2024 38
Sustainability statement
General information
Basis for preparation
BP-1 – General basis for preparation of the sustainability statements
Wallenius Wilhelmsen has reported on its sustainability performance for many
years. For 2024, we report in line with the Corporate Sustainability Reporting
Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) as
required by amendments to the Norwegian Accounting Act. Our reporting also
incorporates the EU Taxonomy Regulation, which has been implemented into
Norwegian law through the Sustainable Finance Act. This report also serves as
Wallenius Wilhelmsen's Communication on Progress according to the
requirements from UN Global Compact.
The directive and standards are designed to trigger sustainable transformations
and specify comprehensive requirements. We are committed to their intention and
have over the years implemented significant initiatives to improve our
sustainability performance and reporting. We do, however, recognize that it will
take time to fully operationalize sustainability across our value chain. We are
committed to reporting transparently on our progress, and to work towards
reporting sustainability data as accurately as we report financial data.
This report covers the period January 1 to December 31, 2024, and the scope of our
sustainability statement is aligned with the scope of our financial statements
unless otherwise stated. This ensures consistency and comprehensive coverage
of our operations and activities. The company does not have any subsidiaries
exempt from individual or consolidated sustainability reporting pursuant to
Articles 19a (9) or 29a (8) in the Directive 2013/34/EU. The sustainability statement
follows the categorization of short-term (1 year), medium-term (<5 years) and long-
term (>5 years) horizons. No information related to intellectual property,
knowledge, or the results of innovation has been omitted from the sustainability
statement. The company has not made estimations based on indirect sources
when reporting data related to our upstream and/or downstream value chain, nor
omitted a specific piece of information corresponding to intellectual property,
knowledge, or the results of innovation. Wallenius Wilhelmsen is not based in an
EU member state that allows for the exemption from disclosure of impending
developments or matters in course of negotiation, as provided for in articles 19a (3)
and 29a (3) of the Directive 2013/34/EU.
Our reporting is based upon the result of a double materiality assessment (DMA)
and covers our own operations and both material upstream and downstream
aspects of our value chain, including suppliers. For further details of the scope,
methodology and assumptions of our DMA process, see IRO-1 below.
As we develop our internal controls, there may be inherent uncertainties related to
some of our sustainability data. See GOV-5 for further details. However, no
material errors have been identified in the reporting of prior periods, and there
have been no changes to the preparation and presentation of the sustainability
statement compared to the previous reporting period(s), beyond those required by
CSRD. The environmental, social and governance data has not been validated by
another external body than the assurance provider. The report has been assured
by our auditor, EY. However, performance data from 2022 and 2023 is excluded
from the assurance scope. We only provide prior years' performance if the data is
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Wallenius Wilhelmsen – Annual Report 2024 39
comparable. Finally, the taxonomy data for 2023 has been restated following
emerging interpretation of the regulation.
The sustainability statement does not include information stemming from other
legislation which requires the reporting of sustainability information and/or from
other sustainability reporting standards and frameworks. The company has not
incorporated any information by reference in the sustainability statement.
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Wallenius Wilhelmsen – Annual Report 2024 40
Strategy, business model and value chain
SBM-1 Strategy, business model and value chain
As a provider of global logistics solutions, Wallenius Wilhelmsen has three main
services: ocean shipping, logistics, and government services. To provide these
services, the company owns, leases and operates a significant amount of
shipping and logistics assets. In 2024, the company added an additional service
offering, integrated digital supply chain solutions. The company’s key customer
groups are automakers, manufacturers of heavy machinery, project cargo for
OEMs (original equipment manufacturers), and the US Department of Defense.
Our shipping service is comprised of a fleet of 125 vessels uniquely constructed
with ramps and movable decks for efficiently and safely moving rolling cargo (Ro-
Ro) like trucks and cars from one port to another. The main inputs of shipping
services are newbuild vessels, fuel, and labor (vessel crew, fleet planning and
marine operations). The company works closely and long-term with newbuild
yards to extend our future fleet.
The company also provides logistics services to a range of global OEMs. We create
value for our customers by owning and/or operating a comprehensive land-based
logistics network of port terminals, inland distribution, and service and processing
centers located around the world. The main resources we use to provide logistics
services are labor (for loading and unloading vessels, trucks and rail carriers, and
processing cargo), land, equipment such as forklifts and heavy-duty trailers for
moving cargo, and a fleet of trucks for inland distribution. We manage a global
network which moves and processes millions of cubic meters of cargo (CBMs)
annually to our consumers and the end-users.
We move, complete and orchestrate the logistics of rolling goods
The main features of our value chain include:
• Our direct operations, i.e. inland distribution, ocean operations, ports,
terminals and offices and processing centers
• Upstream activities such as new vessel and facility building, and
• Downstream activities i.e. vessel and infrastructure recycling at end of life.
The main business actors in our value chain are:
• Newbuild yards
• Energy providers
• Port authorities
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Wallenius Wilhelmsen – Annual Report 2024 41
• Terminal operators
• Stevedores
• Freight forwarders and inland transportation providers, and
• Customers.
Key suppliers include:
• Energy providers
• Port and canal authorities,
• Stevedores, and
• Tug operators.
The company’s activities are all within the ESRS sector called "transportation.” The
company is neither active in the fossil fuel sector, chemicals production,
controversial weapons nor the cultivation and production of tobacco. The
company provides services to the US Department of Defense. However, we do not
ship any of the controversial weapons that are specified in ESRS, i.e. anti-
personnel mines, cluster munitions, chemical and biological weapons.
The company recognizes that demand is rapidly increasing for more sustainable
logistics solutions in nearly all the segments we serve. This is particularly relevant
for automakers and high and heavy equipment OEMs, especially those with scope
3 emission reduction targets.
Our ambition is to become an integrated supply chain partner and a strategic goal
is to make net-zero logistics available and affordable while creating value for
stakeholders. We aim to introduce a pilot net-zero emission end-to-end service by
2027 and becoming net-zero by 2040. Since our services utilize assets that require
significant energy and impact our carbon footprint, reaching these goals are
challenging and affect all our services. The main challenges are customer
demand, transition risks like technology adoption and fuel sourcing. Shipping
services significantly affect the company’s sustainability goals, particularly for
climate, safety, and corporate compliance, due to consumption of fossil fuel use
and a complex operating environment involving hoist-able decks, lifts, rolling
cargo, and global operations. Logistics services have less impact on climate
change due to smaller GHG footprint, but this business area is still an important
part of our climate transition. Our activities also significantly impact our safety
performance. Our digital supply chain service does neither impact nor
significantly contribute to our two most material ESG topics, safety and climate,
although this business unit is exploring the feasibility of offering an emission-
reporting consultancy product.
In 2024, we expanded our low carbon shipping service and engaged relevant
stakeholders, especially customers and suppliers, regarding their interest in lower
and net-zero emission transportation solutions and offerings. OEM customers,
particularly automakers and manufacturers of high and heavy rolling equipment
like agricultural and construction equipment and windmills, are significant
contributors to - and drivers of - our sustainability goals.
See table below for the company’s employees by region, and revenues by ESRS
sector.
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Wallenius Wilhelmsen – Annual Report 2024 42
Strategy, business model and value chain 2024 2023 2022
Total number of employees (head count) 8,626 8,527 7,433
EMEA 1,920 - -
The Americas 6,589 - -
Asia 565 - -
Oceania 291 - -
Total revenue for significant ESRS sector 2024 2023 2022
Transportation sector (USDm) 4,106 - -
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Wallenius Wilhelmsen – Annual Report 2024 43
Our stakeholders
SBM-2 Interests and views of stakeholders
Wallenius Wilhelmsen is committed to engaging the company’s stakeholders and
responding to their interests and expectations. These interactions help shape our
understanding of how to best manage our sustainability performance. The views
of our stakeholders were essential for our double materiality assessment, and the
development of our decarbonization strategy. Engagement involves many teams
such as sustainability, marine operations, operational excellence, customer, the
decarbonization accelerator team and investor relations in addition to our
executive management and the Board of Directors.
Executive management and the Board are informed about stakeholders’ views
and interests through the double materiality assessment process and results.
In 2023 and 2024, the company’s strategy was updated to address stakeholders'
views on climate change risks by adding a climate goal to its four strategic goals
(see Our Strategy for more details). To meet investors' expectations, we have also
linked our financing to our carbon targets. The company’s engagement with key
stakeholders is described in the table below.
The interests, views, and rights of people in our workforce are considered in our
strategy and business plans.
#Engage, our internal employee engagement survey, gathers employees’ input on
various topics, including our strategy. In 2024, during the company's annual
strategy process, our executive management reviewed six potential paths and
how each path could impact our material topics, and vice versa. Sustainability is
therefore embedded in our strategy. For example, one of the four strategic
enablers is to make “one band of rockstars” of our people. This is a recognition
that our strategy affects our employees, and that employees impact our strategy.
A second enabler, "Safety, security and compliance" recognizes the
interdependency between safe working conditions and our strategy. Feedback on
the strategy was also sought from the Group senior management team. The
company also conducts an annual human rights due diligence process, where we
assess impacts on our workers. The results of this assessment inform our people-
related policies and our code of conduct.
Workers in our value chain are also considered in the company’s strategy and
business plans, as we recognize that our decisions can have both positive and
negative impacts on their working conditions and rights. For example, decisions
we make can impact the safety and human rights of workers at newbuild and
recycling yards, as well as stevedores working at port and terminal operations.
When we conduct our annual human rights due diligence, we assess these
impacts on workers in our value chain. The result informs our policies, our supplier
code of conduct, and supplier requirements.
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Wallenius Wilhelmsen – Annual Report 2024 44
Stakeholders Engagement and organization Purpose and outcome
Suppliers We engage our suppliers through our supplier code of conduct,
supplier audits, due diligence processes, annual ESG reports, and
day-to-day correspondence. Suppliers also take part in our double
materiality assessment, helping us better understand the external
impacts on the environment, people. Annually, we also host events
(called RoRo Rodeos) at our port and terminal operations, to engage
our suppliers on safety topics.
Our aim for these engagements is to
strengthen our value chain by lowering
ESG risks in our supplier base, improve
safety and working conditions for workers
in our value chain, and ensure we
together reach our emissions targets.
The outcomes inform how we manage
material ESG impacts, risks and
opportunities (i.e., policies, actions,
metrics and targets) within our supplier
base.
Employees Employees are engaged regularly through #engage, our biannual
employee survey that allows employees to share concerns and
ideas confidentially with their managers and other leaders. All
managers are also required to have individual meetings with their
team members twice a year to discuss and evaluate their personal
development and business goals. We also engage workers through
code of conduct training, throughout the year with the CEO’s
quarterly townhalls and during strategy week.
Our employee engagement aims to foster
a collaborative and meaningful workplace
for our own workers. Objectives include
reaching our target #engage score,
supporting a diverse and collaborative
workplace, and improved health and
safety conditions. The company's
employee survey tool generates reports
that are used by management to bring the
employees' perspectives into
management decisions.
Customers Our customers’ perceptions and satisfaction are key indicators of
quality, making engagement central to improving our services. To
amplify the voice of our customers in internal decision-making, the
company developed and launched a Customer Satisfaction (CSAT)
Survey in 2022. The overall customer satisfaction score is measured
by asking customers “How satisfied are you with our service?”
Responses range from 1 to 5 (1 = extremely dissatisfied, 5 =
extremely satisfied). The survey also asks customers about five
strategic topics: Effective communication, operational excellence,
partnership/relationship, service offerings and digital solutions. Our
global sales team conducts the semi-annual CSAT. We also engage
our customers in our double materiality assessment and other ad
hoc sustainability initiatives. For example, in 2024 we engaged with
several global OEM customers regarding our decarbonization
strategy.
Managers use the results of our Customer
Satisfaction Survey to help business units
plan and prioritize initiatives for improving
quality and the customer experience.
Account Owners and Global Account
Managers develop improvement plans
and renegotiation strategies at an account
level.
Investors &
Bankers
We regularly engage with our investors via our quarterly
presentations which include ESG performance, annual report and
annual general meetings. We also engage with the financial
community to communicate our sustainability-linked financing
frameworks. In addition, we meet with investors individually to
discuss ESG topics.
The engagement with investors and
bankers is crucial to align Wallenius
Wilhelmsen's sustainability strategy,
targets and how we mitigate ESG risks in
line with their expectations.
Seafarers Although seafarers report to external ship management companies,
they are considered our “non-employee workforce,” and we view
them as our own employees. In collaboration our two largest ship
managers, we arrange biannual “officers conferences.”
Typically, more than 100 officers and representatives of Wallenius
Wilhelmsen and our ship managers attend these conferences. High
on the agenda is safety, health and wellbeing as well as training to
contribute to our carbon target. We also arrange family days for
seafarers and their families. Moreover, seafarers contribute to our
annual employee engagement survey.
The officers' conferences are part of the
company's efforts to value and appreciate
the contributions of seafarers. Equally
important is the feedback we receive from
the seafarers about challenges they
experience and support they need.
The outcome of the conferences provides
input into our business strategy and
management. This is particularly related
to their safety, health, and well being.
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Wallenius Wilhelmsen – Annual Report 2024 45
Material impacts, risks and opportunities
SBM-3 Material impacts, risks and opportunities and their interaction with strategy
and business model
Our material impacts, risks and opportunities (IROs) were identified using a double
materiality assessment (DMA) in 2023, and refined during our DMA annual review
in 2024. The DMA process involved collaboration with a broad spectrum of
stakeholders such as employees, suppliers, customers, investors, research
institutions and NGOs, to pinpoint the company’s significant sustainability issues.
Engagement methods included both interviews and thorough desktop research,
and workshops with internal stakeholders. See SBM-1 for how we are working to
align the company's strategy and DMA, and E-1 for how climate IROs have
impacted our climate transition and opportunities.
In 2024, we developed and conducted our first DMA annual review, resulting in
several changes to our material topics. It was deemed that E5 Resource Use and
Circular Economy, and related subtopics, are not material due to Wallenius
Wilhelmsen being a service provider and not a producer. It was also determined
that E3 Water and Marine Environment is not material to our business, as none of
the subtopics are relevant for our operations. The subtopics that we first identified
during the company’s DMA as "marine environment," such as ballast water and
underwater noise, impact on whales, etc., all fit better as subtopics of E4
Biodiversity and ecosystems, which is a material topic for us. This assessment is
also in line with other members of the Norwegian Shipowners' Association.
Many of our impacts are endemic to the industries we operate in and therefore not
directly connected to our strategy, per se. Some of the impacts, such as
biodiversity and pollution, may occur in the medium to long-term, whilst climate
and diversity, equal opportunities and inclusion already affect the company. Our
impacts relating to climate, compliance, safety and diversity and equal
opportunities are all reflected in our strategy. Some impacts are in, or due to, our
direct operations, while others are found in our supply chain. Please see the table,
IROs in our Value Chain for a list and description of the company’s material topics,
impacts, risks, and opportunities in our upstream and downstream value chain.
While we reviewed our initial DMA in 2024, we have not yet identified the financial
effects of all our material ESG risks and opportunities. We have nonetheless
introduced a carbon price for internal planning and taken other steps to prepare
for preliminary financial assessments. We will begin deeper assessments of
financial effects per material topic starting with Climate, in 2025. See E1-8 for
further information on the internal carbon price.
To test the resilience of our strategy in relation to climate change, we relied on two
main activities: During our annual strategy review in 2024, executive management
assessed potential strategic pathways and evaluated how our ESG material topics
impact each of them. The Company has also conducted scenario analyses. These
are aligned with the recommendations of the Task force on Climate-related
Financial Disclosures (TCFD) and test our resilience against climate impacts. In
2023, we conducted two climate risk scenarios based on the Intergovernmental
Panel on Climate Change (IPCC) Representative Concentration Pathways (RCP) 2.6
and 8.5. These represent a future global temperature of 1.5°C and 4.0°C
respectively and provide both a structured and a disorganized scenario. Projected
climate data was sourced from CMIP6 for the years 2030 and 2050. The scenarios
are are considered to remain valid.
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Wallenius Wilhelmsen – Annual Report 2024 46
Key insights from our scenario assessments:
• Managing technological transition risks will continue to be the focus area to
mitigate financial impact of climate change.
• Preparing for a 1.5°C degree future will enhance resilience and mitigate
impacts of climate-related financial risks.
Most of the company's actual and potential impacts on our own workforce do not
directly originate from our strategy, but are endemic to our industry and not strictly
a result of the company’s business model. However, our strategy is designed to
have workforce impacts, including "safety, security and compliance" and "one
band of rockstars”.
All people in our workforce who could be materially impacted are included in our
DMA, human rights due diligence and in the scope of information in this
disclosure. For a description of the types of employees and non-employees in the
company's own workforce, see chart, Workers by employment classification.
Material negative impacts are largely systemic in the shipping and logistics
sectors. Some safety risks are related to individual incidents. Material safety risks
to the company (fire and outbreak of contagious diseases) also arise from
workforce dependencies. The key risks at our land-based operations mainly relate
to the handling and treatment of vehicles and machinery and undesired breaches
to perimeters of our terminals and other facilities. Attracting and retaining diverse
talent is a material risk for the company, due to our reliance on labor in the
shipping and logistics sector. While all groups of workers were considered in our
DMA and human rights due diligence, logistics workers and seafarers are
especially impacted by safety risks.
Although in our initial DMA we did not identify positive material impacts, we aim to
be a responsible employer and we set high expectations for how we treat our
employees. We do currently not have a benchmark or related metrics to assess
positive impacts on our workers as we have focused on identifying and managing
negative impacts. We will continue to integrate ESG into our people policies and
practices in 2025.
While we have developed a transition plan to reach our net-zero goals, we have
not yet thoroughly assessed the impacts of that plan on our entire workforce.
However, transporting EVs and starting to use new fuels represent risks that we
have to manage as they create new safety risks for some of our workforce. This
applies particularly to batteries in EVs and ammonia fuel. LNG is also a new fuel for
the company, and we are establishing processes to ensure that our workforce has
the necessary equipment and training to ensure safe bunkering.
During our human rights due diligence, we identified four key groups of workers in
our value chain who we materially impact: Workers at the shipyards, recycling, and
dry-docking, and crew on time charter vessels. Safety and human rights impacts
on workers at newbuild yards are integral to our strategy and business model, as
we build and buy most of the ocean vessels in our fleet.
Material negative social and environmental impacts such as healthy and safe
working conditions, human and labor rights, and pollution are potential risks at
vessel recycling yards, and health and safety risks are systemic for logistics
workers.
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Wallenius Wilhelmsen – Annual Report 2024 47
While we have not encountered child labor, forced labor, or compulsory labor at
any of our operations and suppliers, we assume there is an inherent risk in all
countries and regions. We have also developed a Country Watch List which is
monitored and updated regularly.
Since we aim to be a responsible business partner, we also set high expectations
for our business partners. Workers across the value chain are positively impacted
by our requirements for suppliers within our Supplier Code of Conduct. We are
beginning to integrate these requirements into supplier contracts. However, we do
not have a benchmark or related metrics to assess positive impacts on value chain
workers. We have much work to do in this area and we will continue to integrate
ESG into our value chain practices in 2025.
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Wallenius Wilhelmsen – Annual Report 2024 48
Materiality assessment
IRO-1 Description of the processes to identify and assess material impacts, risks
and opportunities
Wallenius Wilhelmsen has conducted a double materiality assessment (DMA) to
determine our material ESG topics. The materiality assessment identifies the
environmental, social and governance areas strategically important for Wallenius
Wilhelmsen and the sustainability topics we are required to manage and disclose.
The double materiality assessment
Sustainability topics Relevant ESRS topics
1 Climate change E1 Climate change
2 Waste and Circular economy E5 Resource Use and Circular Economy
3 Biodiversity E4 Biodiversity and Ecosystems
4 Pollution E2 Pollution
5 Safe and Secure Operations S1 Own workforce
S2 Workers in the Value Chain
6 Diversity, Equal opportunity and Inclusion S1 Own workforce
7 Working conditions and human rights S1 Own workforce
S2 Workers in the Value Chain
8 Freshwater E3 Water and Marine Resources
9 Corporate culture and governance G1 Business Conduct
10 Affected communities S3 Affected communities
11 Trafficking S2 Workers in the Value Chain
6,7
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Wallenius Wilhelmsen – Annual Report 2024 49
6
Topics marked in bold are considered material and will be reported in line with European
Sustainability Reporting Standards.
7
The horizontal axis of this chart shows the level of impact materiality whilst the horizontal axis shows
the level of financial materiality. Topics that are marked in green represent environmental topics, those
in pink represent social topics whilst black represents governance topics. The arrows show how we
anticipate a topic to grow in importance over time.
Our double materiality assessment followed five steps:
1. Kick-start process and understand context
The double materiality assessment was conducted in line with the CSRD
requirements. The scope of our DMA included corporate, shipping and logistics
operations. Desk top research was used to evaluate potential material topics. This
included reviews of previous years’ materiality and value chain assessments, peer
analysis, screening of reporting frameworks and a media scan. The aim was to
understand Wallenius Wilhelmsen’s context.
2. Develop a long list of sustainability topics
Positive, negative, potential, and actual impacts were identified across the value
chain, supported by the desk research, and compiled into a long list. Topics from
CSRD were mapped against and aligned with topics of other relevant reporting
frameworks, trends, and peer analysis.
3. Determine impact materiality of topics
Relevant internal and external stakeholders across the value chain were identified.
To assess impact materiality, stakeholders were engaged through interviews. A
threshold was applied, and if 65 percent of stakeholders assessed a topic as
‘significant’ or ‘very significant’, it was deemed material.
4. Determine financial materiality of topics
A workshop was held with internal stakeholders to assess the financial materiality
of the topics. The stakeholders included representatives from finance, risk,
strategy, internal control, sustainability and decarbonization. Existing risk
management frameworks were used as thresholds to assess likelihood and
financial consequence of the relevant risks in a short, medium and long-term
horizon. The financial consequences and likelihood of occurrence for each topic
were then multiplied to yield a final financial materiality score.
5. Validate results
The results were validated in a workshop with the participants from the financial
materiality workshop. Final validation with executive management, the Board
Audit Committee and the Board of Directors was confirmed in 2023 and again in
2024. The following points were validated:
• Results of the assessment
• Materiality thresholds
• Topics where there had been opposing views in the workshop
The company’s activities and business relationships, value chain and affected
stakeholders were assessed during the DMA to identify relevant sustainability
issues as outlined in ESRS 1, paragraph AR16. This approach ensured a thorough
examination of critical sustainability themes through a sector-specific
perspective, alongside the exploration of company-specific matters. Irrelevant
sustainability topics and sub-topics that did not align with Wallenius Wilhelmsen's
business model were excluded from the analysis. The impacts, risks and
opportunities identified by our DMA are described under the relevant topical ESRS
in this report.
Critical decisions in the process included identifying relevant stakeholders,
scoring IROs, and assessing sustainability matters, particularly financial risks and
opportunities in the workshop. Several internal control measures were
implemented throughout the process, ensuring that only sustainability matters
identified by a stakeholder representative and associated with an IRO were
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Wallenius Wilhelmsen – Annual Report 2024 50
considered. The scoring methodology adhered to ESRS guidelines, leveraging the
thresholds applied by our enterprise risk management. The materiality
assessment process and resulting material topics and IROs were documented.
At Wallenius Wilhelmsen, we view the process of identifying, assessing, and
prioritizing material topics and IROs as dynamic and we commit to annually
revisiting the DMA process and further integrating it into the strategy process. This
involves both providing information on key sustainability topics and IROs as input
to the strategy process and assessing the sustainability impact of strategic
options as part of our due diligence process. We have already started aligning the
double materiality process with the company’s annual strategy review. In 2024, the
material topics identified were included in the strategy review, whereby executive
management assessed the impact of potential strategy alternatives on the
material topics.
We also integrate the IROs (ESG risks) into our enterprise risk management (ERM).
The senior manager for ERM is closely involved in the DMA process, especially in
the assessment of financial risks and opportunities to ensure the adequacy of the
risk assessment and alignment with corporate risk management. The corporate
risk register includes ESG risks. The management of our material topics is also
being integrated into our management system according to key ISO standards.
In 2024, we developed and conducted our first DMA annual review. The process
involves validating our value chain and changes to our material topics following
regulatory changes or stakeholder input. The result determines the scope of work
needed to update our material topics and IROs. Significant changes will trigger a
more comprehensive assessment to ensure its efficacy and relevance.
Several key stakeholders participated in the 2024 DMA annual review, and they
confirmed that our value chain had not changed significantly. However, as we
worked more with implementing CSRD, it became clear that E5 Resource Use and
Circular Economy, and E3 Water and Marine Resources (which were deemed
material in 2023) were not material during our 2024 annual review. Executive
management and the Board of Directors approved the results of the DMA.
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Wallenius Wilhelmsen – Annual Report 2024 51
IROs in Our Value Chain
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Wallenius Wilhelmsen – Annual Report 2024 52
Material Topic Impacts, Risks & Opportunities Location in Value Chain Time horizon
Upstream
Own
Operations Downstream
Short
Term
Medium
Term
Long
Term
Climate change R4 - Failure to transition fleet
X X X
R6 - Failure to supply renewables
X X X X
R8 - Investing in the "wrong" low carbon fuel
X X X X
Biodiversity R2 - Operational risk related to compliance with local
regulations regarding invasive species
X X X X
R5 - Reputational damage due to negative impact on
the marine environment and endangered species
X X X X X
Pollution R1 - Fines, legal action and/or reputational damage
due to pollution of water bodies including grounding,
bunker spills.
X X X X X
R6 - Increased regulations on pollution.
X X X X X
Safe & Secure
operations
R3 - Safety risks at vessels (fire, piracy, attacks and
outbreak of contagious diseases) damage to both
assets and people.
X X X X X
Diversity, equal
opportunities and
Inclusion
R3 - Inability to attract and retain diverse talents due to
difficulty in fostering diverse and inclusive culture.
X X X X
01 - More attractive to potential employees (larger
talent pool, multigenerational workforce, higher
engagement, less turnover)
X X X X
Working
conditions and
human rights
R1 - Not meeting increased demand for management
and transparency in our supply chain, e.g. risk of
exploitative work environments at shipyards for new
builds, drydocking and recycling and on vessels
including TC (time charter).
X X X X X X
Risk of human rights violation of workers in supply
chain
X X X X
Corporate culture
and governance
R1 - Non-compliance with applicable regulations and
laws, within the field of privacy law, competitive law
and trade law.
X X X
R2 - Major infringements of non-compliance with
reporting requirements (e.g. EU Taxonomy,
Transparency act) leading to reputational damage, loss
of revenues and additional costs
X X X X
R3 - Procurement risk from purchasing unapproved
products, services or resources: inadequate vendor
management & sourcing
X X X
Sustainability governance
GOV-1 - The role of the administrative management and supervisory bodies
Board of Directors
The Wallenius Wilhelmsen’s Board of Directors is a unitary board comprised of seven non-executive
members with extensive experience in relevant sectors, including international energy, banking and
finance, accounting, shipping, marine engineering, consumer goods, and logistics. The composition of the
Board of Directors reflects the shared interests of all shareholders and aligns with the company's need for
expertise, including industry and sustainability knowledge, geographical insights, diversity and overall
capacity. Four of the seven board members, or 57 percent, are independent non-executive directors. There
are no employee representatives on the Board, and none of the members of the Board or executive
management team has held any positions in public administration in the preceding two years.
57%
43%
Female board members Male board members
In 2024, a third-party consultancy assessed the Board’s roles, skills, and competencies. Through one-on-
one interviews and desk-top research, they investigated the level of experience and familiarity of the board
member regarding sustainability, energy transition and the other material topics identified by Wallenius
Wilhelmsen as especially relevant to the company. The consultancy concluded that, in addition to having
familiarity with all relevant topics, the Board demonstrated strengths in relevant areas outlined in the table
below.
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Wallenius Wilhelmsen – Annual Report 2024 53
3
Female board
members
4
Male board
members
7
Total board
members
Competencies of Board of Directors
Overall
Sustainability
•
•
•
•
•
•
•
Energy Transition
•
•
•
•
•
•
•
Sustainability Topics
Climate change
•
•
•
•
•
•
•
Water & circular environment
•
•
•
•
•
•
•
Biodiversity & marine environment
•
•
•
•
•
•
•
Pollution
•
•
•
•
•
•
•
Freshwater
•
•
•
•
•
•
•
Safe and secure operations
•
•
•
•
•
•
•
Diversity, equal opportunities and inclusion
•
•
•
•
•
•
•
Working conditions & human rights
•
•
•
•
•
•
•
Corporate culture & governance
•
•
•
•
•
•
•
Affected communities
•
•
•
•
•
•
•
Trafficking
•
•
•
•
•
•
•
Practiced competence
•
Familiarity
•
The Board of Directors are collectively responsible for overseeing sustainability impacts, risks and
opportunities. The company's sustainability objectives, metrics and targets, and the annual report, are
reviewed by all board members, who also approve the material sustainability topics. Moreover, the Board of
Directors is accountable for the company's internal control and risk management frameworks. The Board
reviews the company's risk matrix quarterly and evaluates the internal control arrangements at least
annually.
Wallenius Wilhelmsen’s governance framework is based on ISO 37000 and outlines the corporate
governance principles and the company’s governance model. The framework provides a clear set of
requirements, guidelines, processes, and structures that help ensure that the company operates
effectively, efficiently, and in alignment with its strategic ambitions, values, and compliance program. It
covers various aspects such as delegation and limitation of authority, governance and management,
stakeholder engagement, sustainability, internal control, and risk management. It also describes our policy
hierarchy by specifying our constituting documents and group policies such as people, safety, and
environment policies. The document and group policies are owned by an executive manager and approved
by the Board.
The Board Audit Committee (BAC) serves as a preparatory working group, supporting the Board in its
supervisory responsibilities with respect to financial and sustainability reporting, as well as the
effectiveness of the company's internal control system, governance, risk management and assurance-
related items. The sustainability responsibilities are explicitly specified in the BAC's mandate:
• Monitor sustainability reporting and related processes to identify the information reported in
accordance with the relevant sustainability reporting standards.
• Monitor the effectiveness of the company's internal control system, governance, risk management
and assurance related items.
• Monitor the assurance of annual and consolidated sustainability reporting.
• Explain how the BAC contributed to the sustainability reporting integrity and their role in that process.
The People, Culture, and Remuneration Committee is responsible for preparing and facilitating the Board's
decision-making regarding remuneration and strategic human capital management.
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Wallenius Wilhelmsen – Annual Report 2024 54
Group Executive Management
The Executive Management Team is comprised of the CEO and nine executive managers who report to the
CEO. Forty percent of its members are women. Collectively, the management team brings decades of
extensive global experience in shipping, logistics, consulting sectors, along with deep expertise in the
company's key markets in the EU, Middle East, USA, and Asia. In 2024, the positions were:
• EVP & Chief Financial Officer
• EVP, Chief Strategy & Corporate Development Officer
• EVP & Chief Operating Officer, Shipping services
• EVP & Chief Operating Officer, Logistics services
• EVP & Chief Operating Officer, Digital Supply Chain solutions
• EVP, Chief People Officer
• EVP, Chief Customer Officer
• EVP, Chief Technology and Information Officer
• SVP, Chief Communications and Marketing Officer
The executive management has primary responsibility for reviewing and approving the result of the
company's double materiality assessment used to identify material impacts, risks, and opportunities.
The CEO and members of our executive management oversee group policies, approve management-level
ESG policies, and conduct an annual review of metrics and setting targets for the upcoming year. The Chief
Sustainability Officer, who reports to the CEO, is responsible for embedding sustainability in our governance
and management systems as well as the integrity of the company's sustainability data collection
procedures and reporting. The Chief People Officer oversees the development of the remuneration program
within the company’s long-term and short-term incentive plans which are then submitted, reviewed, and
approved by the Board of Directors. See GOV-3 for more details on financial incentives.
The Board of Directors and executive management have access to extensive sustainability skills and
expertise relevant to our material IROs, encompassing energy, naval engineering, public accounting and
assurance, as well as corporate governance. The corporate sustainability team, along with the Orcelle
Accelerator team, a cross-functional group of dedicated climate experts, provide the board and executive
management direct access to critical skills essential for our sustainability transformation and
decarbonization journey. They bring extensive experience in sustainability, including carbon accounting
and energy analysis.
GOV-2 Information provided to, and sustainability matters addressed by, the business’ administrative,
management and supervisory bodies
Executive management and the Board receive ESG information regularly throughout the year, including
through the DMA annual review process, updates provided by the Chief Sustainability Officer, the Orcelle
Accelerator team, and via the company’s quarterly internal report, OneView.
Sustainability topics are included regularly in the board's agenda, and they are on the agenda for every
Board Audit Committee meeting (at least once per quarter). The board also has access to third party experts
and bespoke training.
Board meetings and sustainability
Sustainability is on the agenda of every board meetings with four deep dives during the year, covering the
following topics: annual report, quality and environment policies, CSRD and biodiversity, governance
framework, strategy, DMA process and outputs, and sustainability financing framework. Sustainability-
related risks were also discussed four times during the reporting year. Similarly, sustainability-related
compliance was covered in general compliance reviews, which occurred as part of the annual compliance
update, and the review of the code of conduct.
The board also conducted dedicated sessions on specific topics:
• January: White paper on future fuels.
• February: Newbuilding options and green fuels sourcing strategy.
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Wallenius Wilhelmsen – Annual Report 2024 55
• March: People and remuneration, including safety and carbon targets.
• May: EU ETS
8
- new fuels update and availability, newbuilding options including fuel study.
• June: Insights on future fuels (presented by McKinsey).
• June: People strategy, which includes values and diversity, equal opportunities and inclusion.
• September: Remuneration, including safety and carbon.
• December: Climate targets, emission model progress, reduced carbon service and bunker adjustment
factor.
Management continuously monitors the company's impacts, risks, and opportunities. To ensure effective
performance monitoring, the Board regularly reviews specific targets relevant to our business, the
enterprise risk manager provides update on key risks and the CPO and VP compensation & benefit updates
the People, Culture, and Remuneration Committee on the progress on the targets they have approved. The
targets include climate, safety and #engage (employee engagement survey).
Material impacts, risks, and opportunities are considered by executive management and the Board through
regular updates provided by the Chief Sustainability Officer and the Orcelle Accelerator team, and also in via
the quarterly report on financial and sustainability performance. Executive management and the Board of
Directors have reviewed specific IROs related to two of our most material topics, climate change and safety.
In 2024, for the first time, our material topics, impacts, risks, and opportunities were integrated into
executive management’s discussions during the annual strategy process. Going forward, the DMA and
strategy review process will be further aligned. While our due diligence process for some major transactions
like supplier agreements and CapEx planning takes ESG topics into consideration, our acquisition strategy
does not yet require the consideration of sustainability matters. However, corporate sustainability risks are
included in the enterprise risk register and include risks such as health and safety, critical vessel accidents,
failure to deliver on decarbonization transition plan, compliance e.g., with environmental regulations, lack of
ability to attract/retain workforce, physical climate-related risks.
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Wallenius Wilhelmsen – Annual Report 2024 56
8
EU Emission Trading System
Sustainability and remuneration
GOV-3 – Integration of sustainability-related performance in incentive schemes
Wallenius Wilhelmsen's sustainable strategy is reflected in our incentive schemes. Measuring how the
company performs and connect this to bonus plans ensures correct and aligned priorities and sets clear
direction.
Our fundamental salary policy is to be competitive, though not necessarily market-leading. This ensures a
sustainable level of reward, performance benchmarks and remuneration policies whilst aligning incentives
with environmental, social, and governance (ESG) and financial goals. This integration promotes
responsible corporate behavior and long-term value creation.
The short-term incentive scheme covers relevant, clear targets derived from the overall strategic goals and
includes sustainability targets such as safety and CO₂e intensity performance and #engage score. The
variable pay scheme takes into consideration both key corporate and financial targets as well as individual
targets. The sustainability targets account for 30 percent of the total of which CO₂e intensity accounts for 10
percent. The program applies to employees from senior manager and above. Employees must also sign the
Code of Conduct and complete the Code of Conduct training to receive the remuneration.
To reflect the long-term view of our strategy, we also have a long-term incentive scheme for the executive
management group. In this scheme, CO₂e intensity in our shipping operations is one of five KPIs.
The People, Culture, and Remuneration committee is responsible for preparing and facilitating the decision
making in the Board with respect to remuneration and the variable remuneration scheme is approved by the
board. Board members are not part of any of the incentive schemes.
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Wallenius Wilhelmsen – Annual Report 2024 57
GOV–4 - Statement on due diligence
Core Elements of Due Dilligence Section in the sustainability statement Page No.
Embedding due diligence in governance, strategy and
business model
Strategy and business model 41-43
Sustainability governance 124-128
Material impacts, risks and opportunities 46-48
Engaging with affected stakeholders in all key steps of
the due diligence
Our stakeholders 44-45
Information provided to, and sustainability matters
addressed by the business’ administrative, management
55-56
Materiality assessment 49-52
Management or relationships with suppliers 125-126
Identifying and assessing adverse impacts
Material impacts, risks and opportunities 46-48
Employee engagement survey 44-45
Supplier screenings 125-126
Corruption and bribery risk assessment 126-128
Taking actions to address those adverse impacts
Prevention and detection of corruption and bribery 126-128
Transition plan for climate change mitigation & Actions
and resources in relation to climate change. 67-73
Policies related to own workforce 103-105
Taking action on material impacts on value chain workers 122-123
Business conduct policies and corporate culture 124-125
Targets related to managing material impacts, risks and
opportunities- own workforce 110-112
Actions and resources related to pollution 90
Actions and resources related to biodiversity and
ecosystems 99-100
Taking action on material impacts on our own workforce 112-113
Tracking the effectiveness of these efforts and
communicating
Employee engagement 44-45
Targets for own workforce 110-112
Health and safety metrics 116-118
Targets related to climate change 65-67
Incidents, complaints and severe human rights impacts 118-119
Supplier screenings 125-126
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Wallenius Wilhelmsen – Annual Report 2024 58
Risk management and internal controls
GOV-5 Risk management and internal controls over sustainability reporting
The corporate sustainability team is responsible for developing comprehensive group reports on
sustainability issues and ESG metrics. Developing adequate reporting processes to align with the
requirements of ESRS has been a top priority in 2024.
The primary challenges in creating unified sustainability disclosures across the organization include risks
associated with incomplete or inconsistent data reporting. Risks related to data accuracy and manual
errors in the reporting process, specifically in aggregating data from multiple systems into the corporate
reporting tool have been identified, along with insufficient internal controls over data at various levels, from
sites to corporate.
To minimize reporting errors, the corporate sustainability team manages a unified data framework for the
entire group, employing a systematic risk prioritization methodology. This standardizes definitions,
calculations, and critical metrics like emission factors in compliance with the GHG Protocol. This centralized
approach to reporting also enables the department to function as an information hub, identifying and
rectifying inconsistencies or errors in data submitted by the business units.
To enhance our reporting, Wallenius Wilhelmsen in 2021 implemented a specialized sustainability reporting
tool to manage and structure data for reporting purposes and monitor adherence to reporting standards.
The tool was updated in 2024 to comply with ESRS. We have also implemented the ESG module of our group
reporting tool. To digitalize the reporting process and strengthen the internal control and efficiency of the
reporting, APIs have been established between our HR system and the sustainability reporting tool, and
between the sustainability reporting and the financial reporting tools. All sustainability data is now based on
the accounting principles outlined by the ESRS.
To strengthen the internal control over sustainability reporting, the corporate sustainability team has
developed a roadmap. In 2024, the priority was to establish the governance, perform risk assessment and
scoping, and prioritize key entity-level controls. These controls cover strategy, metrics and targets, DMA,
reporting boundaries, process, and disclosures. We are in the process of adopting the COSO Guidance on
Internal Control Over Sustainability Reporting framework in our approach. We have conducted a gap
analysis to assess our maturity, and the risks identified regarding the governance and management of the
reporting process is being mitigated through entity level controls. A senior person from the company’s
accounting team has been appointed to further develop, implement and monitor internal controls so that
we can raise our sustainability internal control framework to the same level as our financial reporting.
The company’s risk assessments have been performed on two levels: a) higher level risk assessment, based
on the double materiality assessment and sustainability line items. This exercise assesses and prioritizes
the most significant metrics for which to implement internal controls over the data flow and reporting; and
b) risk assessment performed as part of mapping the data flow for prioritized metrics. The purpose of this
risk assessment is to identify risks in the process, from data input, capture, extraction, handling, reporting,
quality assurance and approval. These risks will be mitigated through design and implementation of internal
control activities.
The risk assessment of the data flow identified the integrity of safety (LTIF) reporting in our logistics
operations as a high risk. An internal audit was therefore conducted to review the governance, risk, and
controls, including efficiency and effectiveness of the safety reporting process. The aim was to improve the
overall reporting process and integrity of externally reported safety numbers. The audit concluded that there
is uncertainty regarding the data and provided concrete recommendations to strengthen the reporting. The
sources of uncertainty related to incomplete reporting of injuries and working hours and inadequate
internal controls. This safety-related data will therefore be used as estimates for 2024, and we have already
started implementing the recommendations of the internal audit. The actions include conducting a detailed
process mapping of the data flow to identify risks and implement actions to prevent, detect and correct
these risks. Roles and responsibilities will be clearly defined, with training provided to relevant roles.
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Wallenius Wilhelmsen – Annual Report 2024 59
Our reporting of data for substances of (very high) concern in our shipping operation is also based on
estimates. Currently available data is procurement of chemicals for 22 out of 125 vessels. Although the data
relates to procured chemicals and not actual amounts released, we have extrapolated this data to the whole
fleet to estimate our performance in 2024. We will collect data for the remaining vessels in 2025. Moreover,
we do not have pollution data for our logistics operations and this will also be mapped in 2025. For 2024, the
data for shipping on pollution of particulate matter is estimated. Finally, stevedores that are directly
employed by Wallenius Wilhelmsen are included in the scope of the reporting. However, the majority of
stevedores belong to pools contracted and managed by unions. We have agreements with the unions to
provide stevedore services for our cargo operations services. It is optional to report on these workers and
they are consequently not included in the scope.
Integrating risk assessment and internal control into the sustainability reporting process is fundamental for
ensuring accurate, complete, reliable, and transparent sustainability reporting. We have defined clear roles
and responsibilities across relevant functions to ensure accountability and consistency. This includes the
Board and executive management, sustainability, compliance and risk teams, finance, business units and
data owners.
We are developing a training and awareness program for all relevant employees to make sure risk and
internal control activities are implemented. We are formalizing our regular review of sustainability risks and
strengthening the internal control design and effectiveness at executive level to ensure reporting supports
strategic decision-making and aligns with the company’s strategic objectives. We are embedding control
activities into day-to-day operations to streamline and standardize these across the company, to ensure
accurate and complete reporting. We perform audits and reviews on sustainability management and
reporting, and based on findings, update relevant policy, processes, procedures, and control activities.
The corporate sustainability team cooperates closely with the CFO and the accounting and financial control
team and the CSO regularly informs the CEO about the progress of the sustainability reporting. The
implementation of ESRS is covered in the regular BAC meetings and two additional meetings were
dedicated to this in 2024.
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Wallenius Wilhelmsen – Annual Report 2024 60
Composition and diversity of the members of the board of
directors and executive management 2024 2023 2022
Board of directors 7 6 6
Female 3 3 3
Male 4 3 3
Total 7 6 6
Percentage of female board members [%] 43 50 50
Independent board members
Number of non-executive members 7 6 6
Number of executive members 0 0 0
Total independent non-executive board members 4 4 4
Percentage of independent board members 57 67 67
Executive management
Female 4 4 4
Male 6 4 4
Total 10 8 8
Remuneration linked to sustainability targets
Percentage of variable remuneration dependent on
sustainability-related targets and (or) impacts [%]
30
30 30
Percentage of the remuneration recognised in the current
period that is linked to climate related considerations [%]
10 10 10
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Wallenius Wilhelmsen – Annual Report 2024 61
Environment
Climate Change
Why is it important?
SBM-3 Material Impacts, risks and opportunities and their interaction with strategy
and business models
International shipping carries about 90 percent of all goods due to global trade
9
.
Although shipping emits less carbon per unit than air and land transportation, it
still accounts for around 2-3 percent of global greenhouse gas emissions
10
.
Wallenius Wilhelmsen is a large emitter of greenhouse gases, particularly from our
shipping operations, which represent about 96 percent of our total emissions. The
UN has acknowledged “a clean, healthy and sustainable environment” as a human
right and climate change is identified as a material topic in our double materiality
analysis, both from an impact and financial risk and opportunity angle.
We seek to continue our legacy of sustainable action and believe that
decarbonization represents one of the greatest challenges and opportunities of
our time. We have therefore committed to become net-zero by 2040. Making net-
zero available and affordable is a strategic goal in our strategy. Since we operate
in a hard to abate sector, this is both a significant technological and financial
challenge. See the chapter on business model and strategy for description of the
resilience of Wallenius Wilhelmsen’s strategy and business model in relation to
climate change and GOV-3 for description of how climate related considerations
are factored into our remuneration program.
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Wallenius Wilhelmsen – Annual Report 2024 62
9
Shipping and World Trade: World Seaborne Trade | International Chamber of
Shipping
10
Shipping emissions worldwide - statistics & facts | Statista
How we work
IRO-1 Description of the process to identify and assess material climate-related
impacts, risks and opportunities
Climate change creates potential risks for our business, but it also presents
opportunities, and both are part of the company’s strategy, and are assessed
regularly as part of our overall risk management.
Beginning in 2021, we identified climate risks and opportunities across the
company, following the recommendations of the Task force on Climate-related
Financial Disclosures (TCFD). This included desktop research to identify industry-
specific risks and opportunities, and potential timeline of each risk and impact. We
expanded on this work in 2022, and the risks and opportunities were reassessed,
categorized and prioritized. The ranking methodology considered the potential
impact on Wallenius Wilhelmsen in three different time horizons – short, medium
and long term. The results of this exercise provided input to the DMA process and
were captured in a risk and opportunities register.
Our top three climate-related risks as as follows:
• Transitioning to low emitting propulsion technologies with uncertain long-
term viability
• Lock-in emitting fuels that become less competitive during ships’ lifetime
• Increased costs to ensure compliance with emerging regional and
international climate regulations.
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Wallenius Wilhelmsen – Annual Report 2024 63
The register covers both physical and transition risks. Physical risks include
increased rate of weather-related accidents, incidents such as flooding of ports
and facilities and heat stress for workers, whilst transition risks relate to market,
technology, reputational, policy and regulatory risks. The climate risks that are
most financially material relate to the shipping segment, for instance transition to
low carbon propulsion technology with uncertain long-term viability. Transition
risks also include regulatory developments from for instance the International
Maritime Organization (IMO), the shipping industry’s global regulator, and the
European Union (EU). These have a significant impact on the shipping industry and
the company. High on the agenda is to prepare and position ourselves for these
regulatory changes, and we seek to contribute to progressive yet pragmatic
outcomes through active engagement in the regulatory development process. We
also advocate for a global carbon price to accelerate the decarbonization
transition by ensuring a level playing field.
In 2023, we conducted two climate risk scenarios based on the Intergovernmental
Panel on Climate Change (IPCC) Representative Concentration Pathways (RCP) 2.6
and 8.5. These represent a future global temperature of 1.5°C and 4°C respectively
and provide both a structured and a disorganized scenario. Projected climate data
has been sourced from CMIP6 for the years 2030 and 2050.
Key insights from our scenario assessments
• Managing technological transition risks will continue to be the focus area to
mitigate financial impact of climate change.
• Preparing for a 1.5c degree future will enhance resilience and mitigate
impacts of climate-related financial risks.
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Wallenius Wilhelmsen – Annual Report 2024 64
E1-2 Policies related to climate change mitigation and adaptation
The Group Environmental Policy is our group-wide policy to manage our material
environmental topics including climate change and decarbonization, biodiversity
and ecosystems and pollution. The scope of the policy covers all activities within
our Group, including ocean shipping, vehicle processing, terminal management,
in-land distribution and upstream and downstream activities across our value
chain, such as vessel newbuilds and vessel recycling. The Board of Directors has
the ultimate responsibility for this policy, while the CEO has the ultimate
responsibility to ensure compliance with this policy. The policy is publicly available
on our website.
The policy specifically states that decarbonization is an essential part of our
business strategy and we are committed to becoming net-zero by 2040. We
embrace renewable energy, new fuels, electrification, and operational and
technical improvements to drive our progress towards a net-zero future.
For all environmental topics, we shall continue to identify, assess, and control the
environmental impacts of our value chain. We shall also establish and maintain a
risk management system that includes regular risk assessments, identification,
and control measures. We will strive to continuously improve how we monitor and
manage our environmental risks with an ISO 14001-compliant integrated
management system.
To ensure a common approach for our global operations, we are committed to the
standards developed by the United Nation’s Global Compact and the OECD's
Guidelines for Multinational Enterprises on Responsible Business Conduct. We
are also a member of the Ship Recycling Transparency Initiative. These
international networks and initiatives support continuous improvement of
managing business’ impact on environmental matters.
E1-4 Targets related to climate change
To achieve our net-zero 2040 ambition, we developed a comprehensive transition
plan. We have established 2022 as our baseline year and identified three key
milestones; 2027, 2030, and 2040. These milestones are integral to our transition
plan which will evolve as new technologies and low-carbon fuels become available
at feasible prices. Driven by innovation, customer focus, and a commitment to
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Wallenius Wilhelmsen – Annual Report 2024 65
reducing our climate impact and environmental footprint, we will adjust our
operations and address unexpected risks and opportunities along the way.
Executive management and the Board of Directors approved the net-zero 2040
target and transition plan in 2023.
By 2027, we aim to launch a net-zero end-to-end service pilot with selected
customers and partners. This service will involve new vessels sailing on low-
carbon fuels, green electricity-powered terminal operations, and net-zero
trucking. This will enable net-zero transportation from the vehicle factory, via the
terminal and processing services, to the end customer. The pilot will provide us
with valuable insights for decarbonizing our value chain.
By 2030, we commit to cutting absolute GHG emissions from our shipping
operations by 40 percent and achieving a 44 percent intensity reduction in well-
to-wake (WTW) GHG emissions, driving a significant shift towards a decarbonized
logistics network. For our land-based operations, the target is a 42 percent
reduction in scope 1 GHG emissions, with terminals and processing centers
running entirely on renewable energy.
By 2040, we commit to reach net-zero across all operations, on land and at sea.
Our trucks, terminals, and vessels will run on renewable energy, reducing
emissions to near-zero levels. Our shipping operations target an intensity
reduction of 97.1 percent in well-to-wake GHG emissions and 96.4 percent in
absolute GHG emission reduction, while our land-based operations will achieve a
90 percent reduction in scope 1 GHG emissions. Scope 3 GHG emissions from our
value chain will be cut by 90 percent, ensuring alignment with our net-zero
targets. We will source 100 percent renewable electricity and remove any
remaining emissions through carbon removal certifications.
Our targets to achieve net-zero as validated by the Science-Based Target
initiative:
2022 2030 2035 2040
Science-based climate targets
Target
scope
Baseline
value Target Target value Target Target value Target Target value
Reduce absolute scope 1 GHG
emissions from logistics
operations
Scope 1
28,299 42 % 16,143 66 % 9,621 90.0 % 2,830
Reduce intensity scope 1 and 3
(Well-to-wake) GHG emissions
from shipping operations
Scope 1+3
5,264,144 40 % 3,159,975 79 % 1,082,437 96.4 % 188,545
Reduce intensity scope 1 and 3
(Well-to-wake) GHG emissions
from shipping operations per
tonne nautical mile
Scope 1+3
66.55 44 % 37.28 82 % 12.33 97.1 % 1.95
Increase active annual sourcing
of renewable electricity
Scope 2
7 % 100 % 0 N/A N/A N/A N/A
Reduce remaining absolute
scope 3 GHG emissions
Scope 3
204,022 N/A N/A 46 % 109,797 90 % 20,372
The targets are set following the SBTi maritime guidance for all shipping related
emissions. The SBTi Corporate guidance was used to set the targets related to our
logistics and corporate emissions. The base year for the targets is 2022. Our
targets have been validated by SBTi and are therefore science-based and support
the goal of the Paris Agreement to limit global warming to 1.5c.
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Wallenius Wilhelmsen – Annual Report 2024 66
How did we perform?
During 2024, several achievements were made to enhance our climate efforts:
• Our near-term and net-zero science-based greenhouse gas emission
reduction targets were validated by the Science Based Targets initiative
(SBTi) and have been classified as in line with a 1.5c degrees trajectory. See
E1-4 for further information.
• We developed a new sustainability financing framework to reflect our net-
zero targets. The framework outlines the details of how Wallenius Wilhelmsen
may raise financing through green bonds, loans, and derivatives, as well as
sustainability-linked bonds, loans, and derivatives. We intend to allocate the
green financing to new dual-fuel capable vessels that comply with the EU
Taxonomy. Recognizing the evolving nature of the taxonomy, we closely
monitor developments to ensure compliance. The framework was launched
in February 2025.
• Wallenius Wilhelmsen introduced a Reduced Carbon Service (RCS) in 2023
and issued our first customer declarations on reduced CO
2
e emissions to our
first customer in the December that year. Today we have more than 20
customers signed up for the service, and we consumed roughly 140k tons of
B30 biofuel blend in 2024. Transparency, accuracy, and accountability are
critical to ensure trust and confidence in our services. Therefore, we used
DNV as an independent third party to externally verify the RCS declarations.
The process was conducted with a digital emission bank which was
developed in-house. It records emission reductions from consuming biofuel,
the allocated emission reductions to customers, and the remaining balance.
• For Shipping services, our scope 1 emissions were 4,162,261 mt CO
2
e,
equivalent to 4,897,960 mt CO
2
e on a WTW basis. This is a reduction of 1
percent year on year and a 7 percent reduction since the base year and in
alignment with our Science-Based Target trajectory. Our GHG intensity was
60.56 gCO
2
e per tonne-nm, well ahead of our target of 62.65.
• For Logistics services, our scope 1 emissions were 23,862 mt CO
2
e., down
from 29.486 mt in 2023. This reduction is mainly due to lower emissions for
our trucking services.
• It is difficult to attribute CO
2
e
reduction to specific actions, however, on a
general level we estimate that roughly 30 percent of the reduction from 2022
to 2024 was a result of technical energy efficiency initiatives, 50 percent due
operational initiatives and around 20 percent due to increased use of biofuel.
Please see Climate Accounting for an overview of our GHG emissions.
How we will proceed?
E1-1 Transition plan for climate change mitigation
E1-3 Actions and resources in relation to climate change policies
Although we have a long history of sustainable action, we recognize that reaching
net-zero by 2040 will be demanding. To succeed, we must utilize energy sourcing
and energy efficiency combined with new assets in our sea and land-based
operations and a multitude of initiatives to reduce emissions are taking place:
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Wallenius Wilhelmsen – Annual Report 2024 67
Key Initiatives planned
Alternative fuels
›
Drop-in fuels (biofuels/e-fuels)
Bio-LNG
Methanol
Ammonia
Electrification
›
Heating and cooling
Renewable energy
After-treatment
›
Carbon capture and storage
Negative emissions elsewhere
Technical upgrades
›
Main engine upgrades &
load optimization
Auxiliary power saving measures
Bulbous bow retrofits
Propeller retrofits
Propulsion improvement devices
Wind-assisted propulsion systems
Operational
measures
›
Optimal vessel trade allocation to
reduce emissions
Maximized vessel utilization
Speed reduction & slow steaming
voyages
Voyage speed optimization
Weather routing & alternative routes
Hull and propeller anti-fouling
programs, incl. new cleaning
technologies
Trim & ballast optimization
Auxiliary power management
Vessels
›
Dual fuel vessels ordered
Vehicles
›
Electric trucks and equipment
Renewable fuels
Infrastructure
›
Shore-power capability at terminals
EV charging points
Wallenius Wilhelmsen has developed a detailed transition plan which will evolve as
new technologies and low-carbon fuels become available at feasible prices.
Driven by innovation, collaboration, and a commitment to reducing our climate
impact and environmental footprint, we will adjust our operations and address
unexpected risks and opportunities. To succeed, we must utilize energy efficiency
and energy sourcing combined with new assets in our sea and land-based
operations.
Our shipping operations, which include shipping and government activities, are
responsible for 96 percent of the group’s total emissions. In contrast, our land
based logistics operations contribute only one percent to the overall emissions.
The remaining three percent of emissions are associated with our office
operations. This distribution, based on the 2022 baseline year, highlights the
substantial impact of our shipping activities on our environmental footprint.
Below, you will find detailed transition plans for each operation.
Transition plan for shipping services
Our operations at sea represent about 96 percent of our total emissions, and the
main levers to achieve our climate ambition are technical and operational
improvements in addition to investments in new vessels:
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Wallenius Wilhelmsen – Annual Report 2024 68
Technical improvements
• We install upgrades and modifications to vessels’ main engines to allow more
efficient operation. We utilize advanced software to monitor, analyze and
improve engine performance.
• To further conserve energy, we install auxiliary power-saving measures, such
as variable frequency drives that control pumps, fans, and motors, while LED
lighting retrofits lower energy usage and improve safety and cargo quality
onboard.
• We retrofit vessels with new bulbous bows to improve hydrodynamic
efficiency, reducing fuel consumption over a broad range of operating drafts
and speeds. Propeller retrofits and the installation of propeller boss cap fins
improve propulsion efficiency and contribute further to fuel savings.
• We are trialing wind-assisted propulsion systems, which harness renewable
energy to provide additional thrust and reduce fuel consumption during
voyages.
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Wallenius Wilhelmsen – Annual Report 2024 69
Orcelle Wind Development Project: Prototyping a 217-meter wind-powered vessel
Wallenius Wilhelmsen and partners have secured EUR 9 million from EU’s funding program for
research and innovation, Horizon Europe, to develop Orcelle Wind. Orcelle Wind is a 217-meter wind-
powered roll-on/roll-off vessel with a capacity for over 7,000 cars, breakbulk, and rolling equipment.
The funding, shared among eleven partners, covers planning, construction, and operation, ensuring
Orcelle Wind's readiness for commercial deployment. Each partner contributes specialized expertise,
from weather routing to crew training.
To test wind propulsion technology and possible energy savings, we are retrofitting the vessel Tirranna
with a wind propulsion unit, aiming for operation in 2025. This retrofit will enhance industry knowledge
and is a key milestone for the Orcelle Horizon project.
If realized, Orcelle Wind will position wind power as a pivotal element in the future of global shipping.
Operational improvements
• We allocate vessels to trade routes based on size, fuel efficiency, and
emission levels to minimize environmental impact and maximize
performance. We ensure vessels are fully utilized through effective
scheduling and cargo planning, reducing fuel consumption per distance
sailed.
• We reduce speed and slow steam when appropriate to significantly lower fuel
consumption and emissions. Additionally, we use advanced machine-
learning software that integrates real-time sensor data, ship data, and
weather forecasts to determine optimal voyage speeds, balancing fuel
efficiency with delivery timelines.
• Weather routing is another important measure, guiding vessels to the most
fuel-efficient routes by factoring in weather conditions.
• We adhere to strict maintenance schedules for regular hull cleaning and
propeller polishing, specifically designed to prevent bio-fouling and maintain
smooth, clean surfaces crucial for optimizing fuel efficiency. As part of this
effort, we also deploy state-of-the-art robotic systems for proactive hull
cleaning.
• Trim and ballast optimization further reduces hull resistance and improves
overall vessel efficiency. By carefully managing auxiliary power systems end
energy utilization, we reduce unnecessary energy consumption in different
operational modes.
A combination of innovations working together creates real impact on a broad
scale. We constantly assess how we manage fuel and energy usage across our
fleet using solutions designed to optimize every aspect of our vessels’
performance.
To achieve a decarbonized shipping industry, we need a global infrastructure that
ensures availability of green methanol, green ammonia, and other low-carbon
alternatives at several ports. Currently, the supply and infrastructure of green
methanol and green ammonia is limited for global shipping. Wallenius
Wilhelmsen’s fuel sourcing strategy therefore focuses on integrating sustainably
sourced biofuels and alternative low-carbon fuels to reduce greenhouse gas
emissions. We are actively exploring low-carbon fuels worldwide, aiming to secure
both short and long-term partnerships for biofuel, methanol, and other low-
carbon fuels. The transition to renewable fuels comes with significant costs and
we work with customers to share the expenses.
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Wallenius Wilhelmsen – Annual Report 2024 70
Sustainable sourcing of low-carbon fuels
We aim to use fuels with the lowest possible carbon intensity. Whilst the minimum EU requirement is a
65 percent reduction in carbon intensity, we are targeting at least an 80 percent reduction and seek
fuels that have International Sustainability and Carbon Certification (ISCC-EU). We already meet this
standard for biofuel and will extend it to other fuels as well.
We only use biofuels that are:
• Certified according to “ISCC EU”.
• Based on Fatty Acid Methyl Ester (FAME), such as Used Cooking Oil.
• Methyl Ester (UCOME).
• Not based on palm oil, either directly or indirectly.
• Do not compete for water and agricultural resources used for food production.
In addition, acceptable feedstock for bio- or e-fuels, includes only waste products and residues, while
the CO
2
used for producing e-fuels should be of biogenic origin or from direct air capture.
Most of the low-carbon fuels required to meet our 2030 targets will be drop-in
biofuels, which can be utilized by our existing vessels. Green methanol and bio-
LNG will be used in new owned or chartered vessels. By using biofuel blends like
B30, which consists of 30 percent feedstock and 70 percent conventional fuel, we
can reduce greenhouse gas emissions by up to 25 percent. We have signed
contracts with several fuel suppliers to ensure short-term supply of B30 blends.
Additionally, we have trialed B100, a 100 percent biofuel feedstock, which DNV
verified resulted in approximately 90 percent emission reduction compared to
conventional fuel on a well-to-wake basis. This allows us to offer our customers
significant greenhouse gas reductions in our services. We will continue to explore
opportunities to expand the use of biofuel blends in response to customer
demand.
In collaboration with the First Movers Coalition
11
, we have publicly committed to
using at least five percent zero-emission fuels as part of our energy mix in 2030,
excluding biofuels. We are working with partners to source green methanol,
including bio-methanol and e-methanol. We are developing new low-carbon
services to ensure our customers will share the cost of transitioning to low-carbon
fuels and aim to increase green methanol volumes by 2030.
In the longer term, ammonia shows promise as a green fuel, but the technology,
production, and supply infrastructure are not yet mature. We anticipate it will
become more viable in the next decade.
New vessels
In 2023 and 2024, we ordered 14 Shaper class roll-on/roll-off vessels ranging from
9,300 to 12,100 car equivalent unit (CEU). These so-called Shaper class vessels will
surpass the largest vessels currently operating in our segment. This increase in
size, combined with more efficient ship and machinery design, will enhance
energy efficiency by up to 40 percent compared to our existing fleet.
The Shaper class vessels are scheduled for delivery between 2026 and 2028. They
are methanol dual-fuel, designed to run on green methanol from the day of
delivery, while also being capable of operating on conventional fuel and biofuel.
Depending on scalability of green methanol, our newbuilds may operate on a mix
of fossil fuels, biofuel, and methanol from delivery. Once ammonia becomes
available in a safe and secure way, the methanol dual-fuel vessels can be
retrofitted to run on ammonia. We also have the option to convert up to seven of
the vessels to LNG dual-fuel before construction begins, should we need to
diversify our future fuel mix due to the availability and price of green methanol.
LNG dual-fuel vessels can operate on low-carbon alternatives from the start,
including bio-methane, as well as conventional fuel and biofuel.
The Shaper class vessels will have shore power capability enabling zero emissions
at berth and redefine efficiency with numerous innovations throughout the vessel.
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Wallenius Wilhelmsen – Annual Report 2024 71
11
First Movers Coalition: A global coalition of companies leveraging their
purchasing power to decarbonize the world’s heavy-emitting sector
Shaper class vessels built with economies of scale and prepared for net-
zero
• AI in combination with vessel- and weather data to reduce fuel consumption
• Optimized hull form and propellers
• Energy saving and efficiency devices, such as the air lubrication system for the hull
• A battery solution for reduced energy consumption during maneuvering
• Power generation optimization
• The first vessels will be equipped with solar panels as a pilot to test the business case
before further implementation
Transition plan for logistics services
Although our land-based logistics operations account for less than 1 percent of
our total greenhouse gas emissions, reducing these emissions is crucial to
achieving our net-zero ambitions. The challenge is magnified by regional
variations in energy infrastructure development, availability, the high number of
facilities and geographical location. On land, the key strategies include
introducing renewable fuels, electrifying terminal vehicles and equipment, and
adopting new technologies to lower carbon emissions:
• We will electrify our terminals. Our strategy includes transitioning, or
contributing by using the mass balancing method, to renewable energy
sources such as wind, solar, hydropower and renewable natural gas. For
some sites this involves installing solar panels on rooftops or setting up wind
turbines. For sites heavily dependent on natural gas, renewable natural gas
will be sourced.
• We will explore shore to ship power solutions. This would allow vessels to plug
into the terminal's grid and use renewable electricity while at berth, thereby
avoiding stationary emissions from conventional fuel.
• We will increase energy efficiency in our operations. Electrification will be
supported by charging infrastructure strategically placed for operational
efficiency. Data-driven technologies will optimize energy use, with smart
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Wallenius Wilhelmsen – Annual Report 2024 72
systems monitoring vehicle performance and consumption to reduce
emissions further.
• We will use renewable fuels for our terminal vehicles and equipment.
Vehicles and equipment, such as forklifts, cranes, and tugmasters, currently
run on diesel or other fossil fuels. Most of these assets will be replaced by EV
versions, but renewable fuels will continue to play a role in some regions
where full electrification may not be feasible by 2040 due to logistical or
technical challenges, such as charging infrastructure and battery capacity.
• New assets will enable the transition. We will replace our current vehicles and
equipment with new assets that are operating on electricity, green hydrogen
or green biogas.
Reaching net-zero for the remaining part of our value chain
Scope 3 emissions from the production and disposal of assets, such as vessels,
vehicles, and terminal equipment, will be a focus in 2025 as we develop strategies
to reduce emissions throughout our entire value chain. Our scope 3 emissions are
less than our scope 1 emissions (in contrast to many other industries) and highly
dependable upon our value chain and its possibilities decarbonize. We have good
control over scope 3 category 3 data (fuel), which accounts for 78% of our scope 3
emissions. The disposal of assets, especially vessels, can also produce significant
emissions if not managed responsibly. We generally operate our vessels for 30
years. When they reach the end of their operating life, they need to be recycled. We
have a ship recycling policy which specifies our requirements for responsible
recycling and addresses safety, human and labor rights risks and environmentally
sound management including waste.
While our efforts at sea and on land are crucial, we must also address emissions
related to business travel, employee commuting, office buildings and IT. For all
emissions that we are not able to reduce completely, we are exploring carbon
removal solutions to compensate for the emissions we cannot eliminate
elsewhere.
E1-3 Actions and resources in relation to climate change
The targets and transition plan have been approved by executive management
and Board of Directors. The transition plan is reviewed annually and approved by
both executive management and the Board of Directors.
Our actions to mitigate climate change are to implement the initiatives for the
technical and operational levers described in the transition plan above (E1-1). As
mentioned, the scope of these actions is global and affects both downstream and
upstream activities. Given that our significant IRO relate to climate change
mitigation as opposed to adaptation, we are prioritizing this and do not currently
have an action plan in relation to climate change adaptation.
As we developed our decarbonization plan, we assessed the efforts and required
actions needed to reach net-zero by 2040. As further described above, this
involved identifying all possible levers and extent of undertakings to reach net-
zero by 2040. As part of this we assessed and estimated the financial implications,
including the incremental CapEx and OpEx needed to execute our
decarbonization plan beyond business-as-usual.
For 2024, the incurred CapEx related to technical investments such as retrofit
upgrades to the existing fleet and EV trucks and vehicles amounts to
approximately USD 20 million and incurred OpEx to be around USD 40 million,
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Wallenius Wilhelmsen – Annual Report 2024 73
including low-carbon fuel for or vessels, and electricity and natural gas for our
land based activities. Regarding investments from implementation of our
decarbonization plan from 2025 until 2028, these are estimated to be
approximately USD 150 million for CapEx and USD 720 million for OpEx. These
investments are additional costs and can therefore not be compared to the CapEx
and OpEx provided in the EU Taxonomy reporting which applies different
definitions and scope. For instance, the CapEx in the taxonomy reporting includes
the total cost of the aligned vessels, whilst the reporting in this section is limited to
the additional technical measures that contributes to our decarbonization plan.
We are committed to our transition plan and will allocate the necessary capital
expenditures (CapEx) and operational expenditures (OpEx) after 2028 towards
2040.
The Orcelle Accelerator, in close cooperation with the Sustainability Team and the
line organization, is responsible for overseeing the implementation of the
decarbonization transition plan. This team collaborates with various departments,
and external organizations, to ensure alignment with our sustainability goals and
regulatory requirements.
Accurate and complete emissions data is essential for us to reach our 2027 and
net-zero 2040 ambitions. In late 2024, we therefore initiated an initiative to
improve the granularity of our scope 3 emissions. The milestones and ambitions
for this project in 2025 are to:
• Align our scope 3 emissions reporting with our 2027 ambition for an end-to-
end net-zero emission pilot trade lane.
• Ensure our scope 3 data is complete, accurate and assurable.
• Ensure our scope 3 performance and reporting meets regulatory
requirements.
The expected effect of the actions is that Wallenius Wilhelmsen is able to perform in
line with our emission reduction trajectory.
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Wallenius Wilhelmsen – Annual Report 2024 74
Partnerships
We are actively collaborating with industry partners, regulatory bodies, and
academic institutions to leverage collective expertise and drive innovation in
sustainability practices. We aim to strengthen these partnerships and explore new
collaborations to accelerate the development and adoption of sustainable
technologies and practices within the maritime industry:
We are a mission ambassador of the Mærsk Mc-Kinney Møller Center for Zero
Carbon Shipping. This is a not-for-profit, independent research and development
center looking to accelerate the transition towards a net-zero future for the
maritime industry. It aims to drive and facilitate the development and
implementation of new technologies; build confidence in new concepts and
mature viable strategic ways to drive the required systemic and regulatory
change.
We are member of the Global RoRo Community (GRC) of the Smart Freight Centre,
a global non-profit organization focusing on climate action in the freight sector.
Together with peers, we develop a uniform ISO 14083/GLEC compliant global
standard methodology for scope 3 Greenhouse Gas (GHG) emissions accounting
for deep-sea Ro-Ro shipping.
We are a member of the First Movers Coalition, which was initiated by the World
Economic Forum and the Office of the US Special Presidential Envoy for Climate.
The coalition includes 96 members, such as Coca-Cola, Amazon, Ford, Google, Rio
Tinto, Microsoft, and Maersk. It aims to prompt market demand for technologies
critical for achieving a net-zero future.
We have partner status in both the Green Shipping Program and Maritime
CleanTech, a Norwegian private-public industry collaborator dedicated to
fostering environmentally friendly shipping practices.
To accelerate the transition of our industry, our CEO joined a coalition of leading
companies calling for urgent collaboration between governments and businesses
to fulfill the pledges made by UN’s Climate Change Conferences during COP 28.
The pledges include tripling renewable energy, doubling energy efficiency, and
moving away from fossil fuels.
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Wallenius Wilhelmsen – Annual Report 2024 75
Overcoming roadblocks and embracing game changers
The shipping industry is on the cusp of an exciting transformation, shifting from
fossil fuels to low-carbon alternatives like methanol and ammonia. This shift
demands close collaboration with fuel suppliers, governments, and stakeholders
worldwide. While there are several roadblocks to overcome, such as the high costs
of developing and scaling new technologies, regulatory challenges, and the need
for substantial infrastructure investments, there are also many promising
opportunities on the horizon.
Potential game changers include the implementation of more affordable carbon
capture and removal technologies, cost-effective alternative fuels, innovative new
reactors for our sector, and the creation of larger, smarter vessels. By embracing
these innovations and working together, we can overcome the challenges and
pave the way for a sustainable and decarbonized future in the shipping industry.
Potential roadblocks
– that could hinder the transition
Potential gamechangers
– that could speed up the transition
Limited drop-in
fuel availability
Scarcity of biofuel feedstock
Synthetic e-diesel highly resource
intensive
Competition with other sectors
Negative
emissions
High availability of negative emissions
elsewhere
Costs lower than shipping abatement cost
Delayed phase-in
of methanol and
ammonia
Delays in infrastructure and supply chain
development
Regulatory development and safety
standards especially around ammonia
Availability of suitable engines
Ship-based
carbon capture
Ship-based carbon capture becoming cost-
competitive way to reduce emissions
Logistics of storing onboard and offloading
CO2 solved
High capture rates possible
Inability to recover
costs from
customers
Customers being cost-pressured, down-
prioritizing paying for value chain
emissions reductions
Wallenius Wilhelmsen at different price-
point compared to less ambitious
competitors
Abundant drop-in
fuel
Breakthrough in production of sustainable
biofuel
No need to shift to ammonia if sufficient
amounts of bio-methanol/bio-LNG
available
Reduced vessel
utilization
Lasting market normalization/down-turn
reducing utilization
Reduced cargowork compared base case
scenario where cargo grows in line with
CEU capacity
Small nuclear
reactors
Fail-safe small molten salt reactors for
shipping becoming proven technology
Financing schemes to cover high initial
investment
Shift in public perception towards nuclear
Less effect from
energy efficiency
initiatives
Delay in roll-out of energy efficiency
initiatives and/or initiatives having less
impact
Inability to find additional measures
Megaships
RoRO industry moving towards megaships
of 15,000 CEU capacity
Port infrastructure upgraded to handle
larger ships
Efficient feeder network to serve smaller
ports
E1-8 internal carbon price
We have implemented a shadow carbon price based on the EU Emission Trading
Scheme (ETS) in our management system, and visualized how much our direct
carbon emissions would cost globally, if we had the same fee as we must pay for
our shipping emissions in the European continent.
The scope of the internal carbon price is our global business operations. The
scheme includes a shadow price on direct emissions (scope 1 emissions) from
each of our three segments; Shipping, Government and Logistics, approximately
4,160,000 tonnes CO₂e.
The shadow carbon price is based on the quarterly average cost of EU Allowances
(EUA) contracts. The EUA price is the cost of a contract that allows emissions of
one tonnes CO₂e and is issued through the EU Emissions Trading System. The
quarterly average shadow price is calculated using the ICE EUA Daily Future index,
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Wallenius Wilhelmsen – Annual Report 2024 76
which is the same source we use to estimate the actual cost of EUAs needed for
our shipping emissions in the European continent
12
.
The shadow carbon price is reviewed quarterly, and the indicative cost is
visualized per business segment in our OneView report to management and the
Board. The benefit of implementing the shadow carbon pricing scheme is to raise
awareness of the financial impact of our emissions, prepare for stricter
regulations, set one carbon price across the group, enable insights that foster low
carbon culture and management, and improve data quality on emissions and
costs related to inaction.
The accumulated cost of emissions can be factored in when making investment
decisions or management decisions in different business segments.
Internal carbon pricing schemes 2024 2023
Total approximate GHG emissions covered by pricing schemes,
Current year [tCO₂e] 4,160,000 4,100,000
Total approximate scope 1 GHG emissions covered by shadow
carbon price 4,160,000 4,100,000
Total approximate scope 2 GHG emissions covered by shadow
carbon price 0 0
Total approximate scope 3 GHG emissions covered by shadow
carbon price 0 0
Price of GHG emissions covered by pricing schemes (USD/tCO₂e) 70.68 90.31
Total shadow cost (USDm) 294.03 370.27
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Wallenius Wilhelmsen – Annual Report 2024 77
12
ICE Daily Future Index which is the basis of EUA price/shadow cost (in EUR):
https://www.ice.com/products/18709519/EUA-Daily-Future/data?
marketId=400431&span=1
Performance tables
Energy consumption and mix 2024
Total energy consumption (MWh) 15,250,490
Total fossil energy consumption (MWh) 14,814,020
Fuel consumption from coal and coal products (MWh) 0
Fuel consumption from crude oil and petroleum products (MWh) 14,775,302
Fuel consumption from natural gas (MWh) 9,304
Fuel consumption from other fossil sources (MWh) 2,858
Consumption of purchased or acquired electricity, heat, steam, and cooling from
fossil sources (MWh) 26,555
Share of fossil sources in total energy consumption (%) 97 %
Total energy consumption from nuclear sources (MWh) 0
Share of consumption from nuclear sources in total energy consumption (%) — %
Total energy consumption from renewable sources (MWh) 436,470
Fuel consumption for renewable sources, including biomass (also comprising
industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.)
(MWh) 436,470
Consumption of purchased or acquired electricity, heat, steam, and cooling from
renewable sources (MWh) 0
The consumption of self-generated non-fuel renewable energy (MWh) 0
Share of renewable sources in total energy consumption (%) 3 %
Energy intensity based on net revenue in high climate impact sectors 2024
Total energy consumption from activities in high climate impact sectors (MWh) 15,250,490
Net revenue from activities in high climate impact sectors used to calculate energy
intensity (USDm) 4,106
Net revenue (other) (USDm) 1,202
Total net revenue (USDm) 5,308
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Wallenius Wilhelmsen – Annual Report 2024 78
Climate accounting
Retrospective Milestones and target years
Scope 1, 2, 3 GHG emissions 2024
2023
(Comparati
ve)
2022
(Base
year) %N / N-1 2025 2030 2040
Annual
%
Target
/ base
year
Total Scope 1 GHG emissions (tCO2e) 4,186,123 4,225,217 4,320,807 (1) % - - - (3) %
— Shipping 4,162,261 4,195,731 4,292,508 (1) % - - - (3) %
— Logistics 23,862 29,486 28,299 (19) % (15.8) % (42.0) % (90.0) % (16) %
Percentage of Scope 1 GHG emissions from regulated
emission trading schemes (%) 20 - - - - - - -
Total Scope 2 GHG Emissions - market-based 7,412 6,925 4,241 7 % (42) % (100) % (100) % 75 %
— Corporate 4,072 2,709 - 50 % - - - -
— Logistics 3,340 4,216 4,241 (21) % - - - (21) %
Total Scope 2 GHG Emissions - location-based 7,945 6,080 4,455 31 % - - - -
— Corporate 3,031 2,091 4,455 45 % - - - -
— Logistics 4,913 3,989 - 23 % - - - -
Total Gross indirect (Scope 3) GHG emissions (tCO2e) 1,060,465 1,055,888 1,289,752 — % - - - (18) %
1 Purchased goods and services 219,688 199,028 204,022 10 % - - - 8 %
2 Capital goods 36,210 647 990 5499 % - - - 3558 %
3 Fuel and energy-related activities 741,207 738,065 987,828 — % - - - (25) %
4 Upstream transportation and distribution 43,675 99,312 81,774 (56) % - - - (47) %
5 Waste generated in operations 4,319 3,685 3,142 17 % - - - 37 %
6 Business traveling 4,242 4,155 2,324 2 % - - - 83 %
7 Employee commuting 11,124 10,996 9,672 1 % - - - 15 %
Total GHG emissions Scope 1, 2, 3 (Market-based) 5,254,001 5,288,030 5,614,800 (1) % - - - (6) %
Total GHG emissions Scope 1, 2, 3 (Location-based) 5,254,533 5,287,185 5,615,014 (1) % - - - (6) %
Total GHG emissions Scope 1 & 3 (Well-to-wake) from
shipping operations 4,897,960 4,927,050 5,264,144 (1) % (9.3) % (40.0) % (96.4) % (7) %
Total GHG emissions Scope 1 & 3 (Well-to-wake) from
shipping operations per tonne nautical mile (EEOI) 60.56 62.15 66.55 (3) % (10.0) % (44.0) % (97.1) % (9) %
Total GHG emissions Scope 1 (Tank-to-wake) from
shipping operations per tonne km (EEOI) 27.91 28.64 30.38 (3) % - - - (8) %
Total GHG emissions Scope 1, 2, 3 (SBTi coverage) 4,929,234 4,963,461 5,296,684 (1) % (9.4) % (40.0) % (96.0) % (7) %
Biogenic emissions 2024 2023 2022
Biogenic emissions of CO₂ [tonnes CO₂e] not included in
Scope 1: 120,173 1,252 0
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Wallenius Wilhelmsen – Annual Report 2024 79
Methodology and assumptions
To ensure that the baseline value is representative in terms of the activities
covered and the influences from external factors, the following approach was
applied for the Shipping and Logistics reduction targets:
• Comprehensive scope coverage: The scope includes material scope 3
emission categories, including spend on fuel and stevedoring services.
Categories 8-15 are deemed immaterial but will nonetheless by assessed in
the upcoming Scope 3 project.
• Use of verified and reliable data sources: The baseline value is underpinned
by data, sourced from our accounting systems, using a spend based
approach. For scope 2, the baseline value includes electricity consumption
from all sites and estimates for offices.
• Alignment with relevant methodologies: The calculation of the baseline value
adheres to recognized standards such as the Greenhouse Gas Protocol and
relevant ISO standards. Additionally, adjustments have been made to ensure
compliance with CSRD.
• Ongoing review and recalibration: The baseline value will be periodically
reviewed and updated to reflect significant changes in activities, operational
boundaries, or external conditions. This adaptive approach guarantees that
the baseline remains representative and actionable over time.
In 2024 we updated all maritime CO2e factors from GLEC to FuelEU’s emission
factors for well-to-tank (scope 3), tank-to-wake (scope 1) and well-to-wake (scope
1 and 3), for 2023 and 2024. For scope 3 emissions we use Exiobase spend-based
factors for category 1, 2, 4 and 6. In 2025, we have planned for a comprehensive
scope 3 mapping project to review all of our scope 3 emissions.
Scope 2 emissions for office employees are estimated using Odysee-Mure
Emission factors for electricity consumption per employees in offices. Emission
factors for location and market based emissions are used from AIB and IEA.
We work to enhance the quality, transparency, and relevance of our sustainability
disclosures. While some challenges remain, our continuous improvements in data
collection and methodological rigor position us to achieve meaningful progress
toward our climate targets:
Improvements in targets and metrics
• Evolution of targets - We have revised the targets to align with updated
regulatory requirements, stakeholder expectations, and advancements in
best practices.
• Recalibration of metrics to ensure alignment with updated targets
Updated measurement methodologies to improve the accuracy and relevance of
our metrics
• Applied the Science-Based Targets initiative (SBTi) methodology for setting
climate targets aligned with 1.5°C scenarios.
• Implemented advanced data management platforms and digital tools to
improve the accuracy and traceability of collected data, including automated
emissions calculators and blockchain-based traceability for supply chain
metrics.
Assumptions we applied
• Emission factors: Reliance on standardized emissions factors from globally
recognized databases.
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Wallenius Wilhelmsen – Annual Report 2024 80
• Scenario projections: Assumptions regarding global temperature rise, energy
mix transitions, and policy timelines.
• Stakeholder behavior: Expected adoption of sustainable practices by supply
chain partners.
Limitations in our approach
• Data availability: Limited primary data for certain scope 3 categories,
requiring reliance on industry averages or proxies.
• Our reporting of data for HFCs in our shipping operation is based on
estimates. Currently available data is procurement of refrigerants for 22 out
of 125 vessels. We have extrapolated this data to the whole fleet to estimate
our performance in 2024. Although the substances have been procured in
2024, this does not reflect actual amounts emitted as the products may have
a life-span of longer than a year.
• External uncertainty: Unpredictable policy changes, technological
advancements, or market dynamics that could influence our targets.
• Measurement granularity: Difficulty in disaggregating certain data streams
for regional or business-unit-specific analysis.
Our data sources
• Primary data: Real-time operational data from energy meters, production
systems, and waste logs.
• Secondary data: Industry databases, government publications, and third-
party environmental reports.
• Stakeholder input: Data collected through supplier and partner surveys.
Our data collection processes
• Development of centralized data collection protocols standardized across
business units.
• Periodic audits to validate the accuracy of reported data.
• To ensure data credibility and consistency, third-party verification of key
metrics is conducted annually, following standards such as ISO 14064 and
the Greenhouse Gas Protocol.
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Wallenius Wilhelmsen – Annual Report 2024 81
EU Taxonomy Statement
The EU Taxonomy Regulation provides a classification system with technical
criteria for economic activities that can be considered environmentally
sustainable. The regulation creates a common language for transitioning finance
into sustainable investments and it promotes transparency in economic and
financial operations. This classification is a useful tool to support companies in the
transition towards net-zero operations.
The regulation is continuously changing, maturing and evolving, and we will report
in line with the relevant requirements as a non-financial company. Economic
activities defined under the Taxonomy are reported by revenue (turnover), capital
expenditure (CapEx) and operating expenses (OpEx).
13
We have also consulted the
interpretation guideline
14
and sought legal advise.
Identifying environmentally sustainable economic activities
The Group's activities are linked to the boundaries of the reporting entity as
defined by IFRS and described in the group financial statements.
Wallenius Wilhelmsen has screened the economic activities that can be assessed
for Taxonomy reporting. When determining whether an economic activity was
relevant to our reporting, we first assessed the descriptions of the activities
defined under the transport sector since this is the most material sector for us.
15
Our primary activities relate to transportation of goods on sea and land. Whilst we
have processing centers and operate terminals involving other economic
activities, e.g. owning and leasing buildings, we deem these as not material for the
Taxonomy reporting, as our most significant economic activities concern sea
freight water transport. We will include further economic activities if these become
material to our reporting.
We applied the technical screening criteria under Climate Change Mitigation
(CCM) to assess eligibility and alignment of our economic activities. We identified
two material economic activities that are relevant for our shipping and logistics
business segments. The activities are;
• CCM 6.6 Freight transport services by road, and
• CCM 6.10 Sea and coastal freight water transport, vessels for port operations
and auxiliary activities.
We do not currently have any activities in the remaining five environmental
objectives in the regulation.
Sea and coastal freight water transport, vessels for port operations and auxiliary
activities (CCM 6.10)
This activity includes purchasing, financing, chartering and operation of vessels
used for transport of freight.
Most of our economic activities are under shipping and government services, as
all core and most auxiliary activities in the segments are related to international
ocean movement of RoRo cargo. All our vessels are eligible assets under CCM
6.10. We have conducted an analysis of our entire fleet, and determined that seven
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Wallenius Wilhelmsen – Annual Report 2024 82
13
In accordance with regulation EU (2020/852) and the supplementing delegated
acts.
14
November 2024 FAQ
15
As outlined in regulation EU (2020/852) and the supplementing delegated acts
of our operated vessels meet the requirements specified in criteria (d) in the
Taxonomy. The remaining vessels in our fleet do not meet the requirements in the
criteria a-f.
We also have fourteen newbuilds on order that are assessed as aligned to the
technical screening criteria in the Taxonomy. Eight of these incurred capex in
2024. The newbuilds are capable of running on renewable energy (such as biofuel
and methanol) and will have shore power capability enabling zero emissions at
berth. The vessels will meet the technical screening criteria (d):
where technologically and economically not feasible to comply with the
criterion in point (a), until 31 December 2025, the vessels have an attained
Energy Efficiency Design Index (EEDI) value 10 % below the EEDI
requirements applicable on 1 April 2022 if the vessels are able to run on
zero direct (tailpipe) CO
2
emission fuels or on fuels from renewable
sources.
Freight transport services by road (CCM 6.6)
This activity comprises heavy-duty vehicles in the categories N1, N2 and N3.
16
Within the logistics segment of our operations, relevant vehicles are used for on-
and off-loading of cargo from vessels to the terminal, transferring cargo from
ports to processing centers and to the end customer on land. To screen our
activities against the criteria in the Taxonomy, we assessed whether our vehicles
are within the N-categories above. We then reviewed whether they should be
categorized as a “zero-emission heavy duty vehicle” or “low-emission heavy duty
vehicle” and the maximum laden mass capability.
Globally, we have 128 trucks that transport cargo and fall within the N3 category.
Economic activities related to these assets are considered eligible, but not aligned
as they run on fossil fuel.
Do no significant harm (DNSH) criteria
When assessing the alignment of our economic activities, we screened all DNSH
criteria under Climate Change Mitigation. We do not have any activities in other
environmental criteria. For activities within sea and coastal water freight transport,
all of our vessels follow IMO and relevant regional and national jurisdictions when
operating globally. The seven vessels in operation and our newbuilds are deemed
aligned with the EU Taxonomy as they meet the required DNSH criteria. For road
transport, we have assessed our entire fleet and the EV trucks are aligned with the
technical screening criteria. However, these trucks do not meet all the DNSH
criteria, and we have therefore deemed these trucks to be eligible and not aligned.
Compliance with minimum safeguards
Our activities are carried out in compliance with the minimum safeguards:
• Human rights, including labor rights: Our approach to human and labor rights
are described in the Social chapter. Our due diligence process is guided by
the OECD Guidelines for Multinational Enterprises and the UN Guiding
Principles on Business and Human Rights. Wallenius Wilhelmsen has not
been held liable or found to be in breach of labor law or human rights in 2024.
Moreover, OECD National Contact Point has neither accepted any cases
regarding Wallenius Wilhelmsen neither has the Business and Human Rights
Resource Centre (BHRRC) ever taken up any allegations against the
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Wallenius Wilhelmsen – Annual Report 2024 83
16
As referred to in Article 4(1), point (b)(iii), of Regulation (EU) 2018/858
company. We are, however, committed to engaging with relevant
stakeholders including OECD’s National Contact Point and the BHRRC should
we be requested to do so.
• Bribery and corruption: Wallenius Wilhelmsen has developed and adopted a
compliance program covering the prevention and detection of corruption
and bribery. Please refer to the Governance chapter for further information.
None of the members of our senior management were convicted of
corruption or bribery in 2024.
• Taxation: Wallenius Wilhelmsen is committed to being a responsible
corporate citizen. This includes ensuring that we manage and report our tax
affairs in a manner that complies with local laws and regulations the
countries we operate in. This applies to all taxes, including direct taxes,
indirect taxes, payroll taxes and other forms of taxation. Transactions
between Wallenius Wilhelmsen’s group companies are conducted at an
arm’s length basis in accordance with OECD principles and the internal
transfer pricing policy.
Tax compliance and day-to-day responsibilities for the operation of the local
tax function rest with the Wallenius Wilhelmsen subsidiaries. The global tax
department manages tax risks and ensures compliance in all significant
operational and financial transactions as well as securing arm’s length
pricing in all intercompany transactions. The company is committed to
adopting a justifiable and fair tax position in cases where tax regulations are
open to interpretation or choices. The tax position taken in all significant
transactions is supported by employment of qualified in-house personnel
and, where necessary, the use of an external tax opinion. Further, we aim to
operate under a policy of transparency with local tax authorities. Corporate
tax affairs are the Chief Financial Officer’s responsibility and extend to all
jurisdictions in which the company operates.
Neither the company nor its subsidiaries were found guilty of violating any tax
laws in 2024.
• Fair competition: Wallenius Wilhelmsen is committed to fair competition and
to complying with all applicable anti-trust and competition laws. This is
anchored in our Code of Conduct and training is provided for senior
management and other relevant employees. The company nor its
subsidiaries have not been finally convicted of violating competition laws in
2024.
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Wallenius Wilhelmsen – Annual Report 2024 84
Measuring performance
The table below shows the total Revenue, OpEx and CapEx for the Wallenius
Wilhelmsen group, and the estimated proportion of economic activities which is
considered eligible and aligned as defined in the regulation. In combination, the
indicators below are intended by the taxonomy to express the group’s activities
that qualify as environmentally sustainable. During the year, further details
regarding the interpretation of the taxonomy regulation has emerged. We have
consequently restated the numbers from 2023.
Revenue (turnover): Revenue represents the group’s total revenue from contracts
with customers as described in our accounting policy in note 2 in the financial
statements. Revenue from eligible activities includes revenues earned by the
shipping services and government services segment as well as inland
transportation within the logistics services segment.
Capital expenditure (CapEx): CapEx comprises additions to vessels and other
tangible assets, additions to right-of-use assets (leases) and purchase or
development of intangible assets, all as described in our accounting policies, see
note 7, 8, and 9. CapEx related to eligible economic activities includes both
investment in new and existing vessels, facilities and equipment.
Operating expenditure (OpEx): OpEx comprises a subset of “Operating expenses”
in the group’s income statement and represents the group’s total expenses that
are not capitalized that relate to maintenance and repair. Eligible OpEx relates to
the assets and processes associated with taxonomy-eligible economic activities.
Taxonomy Statement related to nuclear and gas
Row Nuclear energy-related activities Yes/No
1
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of
innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the
fuel cycle.
Yes
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear
installations to produce electricity or process heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well as their safety upgrades, using best available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production from nuclear energy, as well as their safety upgrades.
No
Fossil gas-related activities Yes/No
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities
that produce electricity using fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of combined
heat/cool and power generation facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat
generation facilities that produce heat/cool using fossil gaseous fuels.
No
Explanation
We are participants in the Green Shipping Program, piloting an exploration of nuclear power utilization for ship
propulsion. We believe this qualifies as a ‘Yes.’ We are involved with an R&D project called NUPROSHIP II
(Nuclear Propulsion Ship - Part II), sponsored by the Norwegian Research Council, which also evaluates nuclear
technology for commercial ships.
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Wallenius Wilhelmsen – Annual Report 2024 85
Revenue
Financial year 2024 2024 Substantial Contribution Criteria
DNSH criteria
('Does No Significant Harm')
Economic Activities (1)
Code (2)
Turnover (3)
Proportion of Turnover, year 2024 (4)
Climate change Mitigation (5)
Climate change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate change Mitigation (11)
Climate change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned (a.1.) or
eligible (A.2.) Turnover, year 2023 (18)
Category enabling activity (19)
Category transitional activity (20)
USDm %
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
% E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Freight transport services by road CCM 6.6 — - % Y N
N/
EL
N/
EL
N/
EL
N/
EL Y Y Y N N Y Y — % T
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 179 3 % Y N
N/
EL
N/
EL
N/
EL
N/
EL Y Y Y Y Y Y Y 3 % T
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1) 179 3 % 3% -% -% -% -% -% 3 %
Of which Enabling — - % -% -% -% -% -% -% — % E
Of which Transitional 179 3 % 3% 3 % T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
Freight transport services by road CCM 6.6. 44 1 % EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL 1 %
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 3,927 74 % EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL 75 %
Turnover of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2) 3,971 75 % 75% -% -% -% -% -% 77 %
A. Turnover of Taxonomy eligible activities
(A.1 + A.2) 4,150 78 % 78% -% -% -% -% -% 80 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities 1,158 22 %
Total 5,308 100 %
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Wallenius Wilhelmsen – Annual Report 2024 86
Capex
Financial year 2024 2024 Substantial Contribution Criteria
DNSH criteria
('Does No Significant Harm')(h)
Economic Activities (1)
Code (a) (2)
CapEx (3)
Proportion of CapEx, year 2024 (4)
Climate change Mitigation (5)
Climate change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate change Mitigation (11)
Climate change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned (a.1.) or
eligible (A.2.) CapEx, year 2023 (18)
Category enabling activity (19)
Category transitional activity (20)
USDm %
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
% E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Freight transport services by road CCM 6.6 - - % Y N
N/
EL
N/
EL
N/
EL
N/
EL Y Y Y N N Y Y — % T
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 247 36 % Y N
N/
EL
N/
EL
N/
EL
N/
EL Y Y Y Y Y Y Y 20 % T
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1) 247 36 % 36 % - % - % - % - % - % 20 %
Of which Enabling - - % - % - % - % - % - % - % — % E
Of which Transitional 247 36 % 36 % 20 % T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
Freight transport services by road CCM 6.6 - - % EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL — %
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 129 19 % EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL 37 %
CapEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2) 129 19 % 19 % - % - % - % - % - % 37 %
A. CapEx of Taxonomy eligible activities (A.1
+ A.2) 376 55 % 55 % - % - % - % - % - % 57 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 302 45 %
Total 678 100 %
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Wallenius Wilhelmsen – Annual Report 2024 87
Opex
Financial year 2024 2024 Substantial Contribution Criteria
DNSH criteria
('Does No Significant Harm')(h)
Economic Activities (1)
Code (a) (2)
OpEx (3)
Proportion of OpEx, year 2024 (4)
Climate change Mitigation (5)
Climate change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate change Mitigation (11)
Climate change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned (a.1.) or
eligible (A.2.) OpEx, year 2023 (18)
Category enabling activity (19)
Category transitional activity (20)
USDm %
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
% E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Freight transport services by road CCM 6.6 - - % Y N
N/
EL
N/
EL
N/
EL
N/
EL Y Y Y N N Y Y — % T
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 1 1 % Y N
N/
EL
N/
EL
N/
EL
N/
EL Y Y Y Y Y Y Y 1 % T
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1) 1 1 % 1 % - % - % - % - % - % 1 %
Of which Enabling - - % - % - % - % - % - % - % — % E
Of which Transitional 1 1 % 1 % 1 % T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
Freight transport services by road CCM 6.6 - 0 EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL — %
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 54 78 % EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL 78 %
OpEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2) 54 78 % 78 % - % - % - % - % - % 78 %
A. OpEx of Taxonomy eligible activities (A.1 +
A.2) 55 79 % 79 % - % - % - % - % - % 79 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities 15 21 %
Total 69 100 %
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Wallenius Wilhelmsen – Annual Report 2024 88
Pollution
Why is it important?
IRO-1 Description of the processes to identify and assess material pollution-
related impacts, risks and opportunities
Our environmental impacts extend beyond carbon emissions. SOx and NOx are
contributors to acid rain that is harmful to ecosystems and can have an adverse
impact on human health. NOx also reacts with other pollutants in the presence of
sunlight to form ozone, which at high concentrations can damage vegetation. We
have a responsibility to reduce our emissions of SOx and NOx and adhere to global
regulations regarding the emissions of these gases.
We aim to protect our workers, stakeholders, and the environment, and to reduce
our use of pollutants and chemicals whenever possible.
How we work
E2-1 Policies relating to pollution
Our environmental policy specifies pollution-related risks and impacts as one of
our environmental topics. The scope of the policy is all activities within our Group,
including ocean shipping, vehicle processing, terminal management activities
and in-land distribution. Upstream and downstream activities across our value
chain such as vessel new builds and vessel recycling, are also included. The policy
recognizes that emissions to air from our ships and land-based operations have a
broader impact than climate change, and we take responsibility to mitigate these
emissions. The policy specifies the commitment to reduce air and water pollution
from our ocean fleet and to comply with global regulations regarding the
emissions of these gases. The policy specifically notes our commitment to
reducing SOx, NOx and particulate matter. Adhering to global regulations, such as
IMO, is also essential to reduce the risk of fines, legal actions and reputational
damage due to pollution of water bodies.
While we do not source or consume raw materials as a service provider, we strive
to improve the sustainability and transparency throughout our value chain.
Consistent with this approach, Wallenius Wilhelmsen does not purchase, supply,
or use minerals sourced from conflict-affected areas as defined in “OECD Due
Diligence Guidance for Responsible Supply Chains of Minerals from Conflict
Affected and High-Risk Areas”. Conflict minerals are also prohibited from use in
our supply chain. We insist upon responsible management of chemicals at all our
locations, in compliance with laws and regulations. We aim to protect our workers,
stakeholders and the environment, and to reduce our use of chemicals whenever
possible.
We aim to continuously improve how we monitor and manage our environmental
risks with an ISO 14001 conformant integrated management system.
The policy applies to all employees working within Wallenius Wilhelmsen, including
temporary staff, contractors, and agency staff. All employees are responsible for
understanding, promoting, and conducting their work in accordance with this
policy. The Board of Directors has the ultimate responsibility for this policy, while
the CEO has ultimate responsibility to ensure compliance with this policy. Our
policies are posted internally and externally to provide access for all our
stakeholders. Our Supplier Code of Conduct specifies our environmental
commitment and is presented and agreed upon before new contracts are
established.
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Wallenius Wilhelmsen – Annual Report 2024 89
E2-2 – Actions and resources related to pollution
Actions in our shipping activities
Wallenius Wilhelmsen complies with IMO regulations by using scrubbers, or
bunkering either very low sulfur fuel oil (VLSFO, <0.5 percent) or low sulfur marine
gas oil (LSMGO, 0.1 percent max) on ships without scrubbers. On vessels with
scrubbers, the exhaust gases are brought into contact with seawater by spraying
it into the exhaust stream. Through several chemical reactions, the sulfur is
transformed and released to sea as sulfates. In addition to sulfates, the scrubber
wash water may also contain elevated concentrations of other pollutants,
including heavy metals and organic substances. We are investigating how we can
measure the impact from the release of scrubber wash water on the water quality.
The scrubbers significantly reduce SOx emissions to air, in addition to Particulate
Matter (PM).
Our operational efficiency initiatives will further reduce our sulfur emissions as we
become more energy efficient and use less fuel. Wallenius Wilhelmsen is
considering a number of different fuel and engine technologies for the future. A
shift to biofuels or zero emission fuels, such as methanol or ammonia, would
drastically reduce, and potentially eliminate, our emissions of SOx and PM to air.
For our vessels, the chemical range used are “blends” that consists of different H-
nos. However, due to our environmental focus to adapt to stringent rules and
legislation, the concentrations are within the risk factor levels. The chemicals used
are continuously monitored and new/revised environmental chemicals are used
as we phase out chemicals in our range not meeting our environmental focus. For
instance, will we replace the previously used Unitor Fuelpower Soot Remover to
ROCOR NB Liquid. Additionally, we continue to update the refrigerants on our
vessels, from R-404A to R-407f, and this is estimated to reduce our carbon
footprint from these refrigerants by approximately 52 percent.
In compliance with the International Safety Management( ISM) Code, to ensure the
safe operations of each ship and to provide a link between the company and those
on board, the company has designated persons ashore with direct access to the
highest level of management. The responsibility and authority of the designated
persons include monitoring the safety and pollution-prevention aspects of the
operation of each ship. In compliance with ISM Code Chapter 12, the company
conducts regular internal safety audits on board and ashore to verify whether
safety and pollution prevention activities comply with the safety management
systems. Possible corrective action plans may then be identified, which are in
accordance with internal procedures. These key actions occur on an ongoing
basis.
Actions in our logistics activities
The company’s Safety 1st program and HAZMAT safety plans have established
measures to control and monitor chemicals and pollutants used by our logistics
sites. The success of 80 percent of our logistics sites achieving ISO 14001 and
45001 certification has established a stronger framework for monitoring and
measuring environmental and safety performance. These measures help us
monitor and evaluate chemicals and pollutants, working to maintain a safe and
compliant workplace. Moreover, ISO 14001 requires each site to have an impact
assessment to identify material topics with concrete measures. Pollution will then
be covered where material, however a consolidated approach and results are not
available. Operational resources have been allocated to the Safety 1st program.
The key actions listed occur on an ongoing basis.
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Wallenius Wilhelmsen – Annual Report 2024 90
How did we perform?
E2-3 Targets related to pollution
We currently do not have targets related to pollution. However, in 2024, we
completed a mapping of procured pollutants and substances of (very high)
concern for shipping. The mapping focused on substances found in chemicals,
refrigerants and welding electrodes for 22 vessels. We currently do not track the
effectiveness of policies and actions of material impacts and risks for pollution.
E2-4 Pollution of air and water
Air Quality 2024 2023 2022
Total SOx emissions of fleet under group control, in tonnes 11,021 10,167 11,084
Total NOx emissions, in tonnes 83,569 - -
Total Particulate matter, in tonnes 4,361 - -
SOx emissions increased 8 percent from 2023 to 2024. The key reasons for this rise
was the increase in average sulfur content of bunkered fuel in 2024. Also, more
time was spent outside emission control areas (ECA) in 2024, likely due to the
increased time at sea as a result of re-routing vessels around Cape instead of
bypassing Suez. This contributed to a higher relative use of fuel with higher sulfur
content. 2024 is our first year to report on NOx in tonnes and particulate matter
(PM).
Measurement methodology:
Sulfur content in the fuel is obtained from bunkering documentation. We calculate
sulfur emissions per fuel type and quantity burned and compile a summary for
each ship before aggregating it to the fleet level. Some ships have scrubbers and
burn HFO, using the scrubber in ECA areas; otherwise, they use VLSFO. We
account for the percentage of time spent in ECA areas to obtain an accurate ratio
and sulfur amount. For ships with scrubbers, a portion of the sulfur is also released
into the sea. We calculate this as well, resulting in a split of sulfur emissions to air
and to sea.
NOx and particulate matter (PMs) have been calculated using energy
consumption from the main engine and auxiliary engine. The energy consumption
for the main engine is not included when at berth.
For NOx we multiply the energy consumption by the relative NOx emissions from
owned fleet ( as an average of International Air Pollution Prevention certification
values). From the engine manufacturers' factory tests, we have certificates
indicating their relative NOx emissions (g/kWh). We extract these values from the
reports and calculate a simple average. This is a somewhat simplified approach
which relies on estimates, the value only changing when a ship enters or exits the
fleet.
Particulate matter has been calculated using estimates, the energy consumption
being multiplied by a conservative external factor. Please see section Gov-5 for
uncertainty with reporting on pollution.
E2-5 Substances of concern and substances of very high concern
During the mapping exercise of substances of (very high) concern in chemicals,
refrigerants and welding electronics the following were identified:
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Substances of concern or very high concern
Amount, substance
procured (kg)
Amount, substance left
company`s facilities as
emissions (kg)
Substances of very high concern
Rocor Nb Liquid 113,281 113,281
Total 113,281 113,281
Substances of concern
Carcinogenicity categories 1 and 2 7,564 7,564
Germ cell mutagenicity categories 1 and 2 852 852
Reproductive toxicity categories 1 and 2 226,563 226,563
Skin sensitisation category 1 7,387 7,387
Specific target organ toxicity, repeated exposure
categories 1 and 2 8,218 8,218
Total 250,584 250,584
Measurement methodology:
Our reporting of data for substances of (very high) concern in our shipping
operation is based on estimates. Currently available data is procurement of
chemicals for 22 out of 125 vessels. The data relates to procured chemicals,
refrigerants and welding, however not actual amounts released. We have
extrapolated this data to the whole fleet to estimate our performance in 2024.
External density conversion factors have then been applied where relevant.
Although the substances have been procured in 2024, this does not reflect actual
amounts emitted as the products may have a life-span of longer than a year. When
a substance falls under multiple hazard classes, its full amount is reported in each
relevant class. This results in double-counting of the total substances of (very
high) concern and the estimations are therefore over-reported.
Where the density conversion factor is not available, we have a used a 1:1
conversion from liters to kg. In reality, there could be some deviation to this
conversion factor.
We will continue to work on our mapping of substances of concern and very high
concern in shipping. This will then be incorporated into ISO 14001 management
system during 2025. The development of reporting and internal control
procedures will follow suit.
How we will proceed?
In 2025, we plan to initiate a mapping of pollutants and substances of (very high)
concern for logistics. Based on the results, we will assess if targets should be
established.
We shall establish and maintain a risk management system that includes regular
risk assessments, identification, and control measures. We strive to continuously
improve how we monitor and manage our environmental risks with an ISO 14001
conformant integrated management system.
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Biodiversity and ecosystems
SBM-3- Material impacts, risks and opportunities and their interaction with
strategy and business model
Why is it important?
IRO-1 Description of processes to identify and assess material biodiversity and
ecosystem related impacts, risks, dependencies and opportunities
The importance of protecting the planet's biodiversity is critical to preserving a
healthy ecosystem that can sustain society. As a global shipping and logistics
provider, we diligently work to protect sensitive regions and minimize
environmental impact by optimizing operational speed, avoiding specific
territories and implementing robust management procedures for pollution, waste
and invasive species. New standards, regulations and expectations concerning
conservation and protection of nature are evolving and will require us to
continually assess biodiversity impacts and risks as well as opportunities across
all the regions we operate. Against this backdrop, biodiversity is considered one of
the most material topics in the Double Materiality Assessment (DMA).
Assessing nature-related impacts, risks and opportunities
In 2024, we conducted a biodiversity impact assessment using the guidelines and
methodology recommended by the Task force for Nature-related Financial
Disclosures (TNFD). This assessment improved our understanding of the business’
interactions with biodiversity-sensitive areas and provided a deeper analysis of
the material impacts, risks, dependencies and opportunities related to biodiversity
and ecosystems topics and sub-topics from the DMA.
Given our global business operations and complex value chain, we chose to focus
the scope on our shipping operations, which represent our largest business
segment. The remainder of our value chain, including land-based operations, and
the upstream and downstream part of our value chain, will be assessed in the
coming years. We did not consult affected communities during the process, as the
primary focus of the impact assessment was on the global commons, and
affected communities were not identified as a material stakeholder.
The assessment was structured in line with the LEAP-process defined by TNFD,
beginning with locating our interactions with sensitive-locations (Locate),
evaluating impacts and dependencies (Evaluate), assessing risks and
opportunities (Assess), and preparing for target setting and reporting (Prepare).
The process is described below.
1. Locate
To locate interactions with biodiversity sensitive areas, we mapped our global
shipping routes by using AIS data from our vessels in a GIS platform. We then
added data layers such as Marine Priority Areas (MPAs), Ecologically and
Biologically Significant Marine Areas (EBSAs), Marine Wilderness, and Human
Impact on the Oceans, into the platform. These layers are adopted from open
sources such as the UN Biodiversity Lab, they helped analyze and set a boundary
for whether our shipping operations would cross, or spend time within, these
sensitive areas.
2. Evaluate
Due to the global and dynamic nature of our operations, it is challenging to
generalize the impacts and dependencies of our operations on biodiversity and
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Wallenius Wilhelmsen – Annual Report 2024 93
ecosystems. To evaluate our operations, we identified case locations to assess
actual and potential impacts in further detail. These cases included:
• High Seas (North and West Atlantic Ocean),
• Straits/Channels (Malacca Strait and Panama Channel),
• Near Shore (Cape Hope and Melbourne to Brisbane coastline), and
• Harbours (Yeosu and Baltimore).
The regional biodiversity and ecosystems considerations within these locations
vary, prompting us to conduct a comprehensive stakeholder dialogue to gain
deeper insights. This included biologists, research institutions, NGOs, peers and
investors. The impacts defined in the cases were further evaluated by using
methodology from Science-Based Targets Network’s Sector Materiality Tool. This
tool helped us evaluate drivers of biodiversity loss and whether we had any
potential or actual impacts that we could evaluate and score based on scale,
scope, irremediability. We also considered the likelihood of the impact and
whether mitigating actions are in place.
In line with the DMA, the most important impacts across our ocean operations
include invasive species in cargo, ballast water and through hull fouling, as well as
vessels’ impact on whales and other cetacean species. Noise pollution may also
be an area where we have significant impact on life under water. As a global
shipping and logistics provider, we recognize that there are still many unknowns in
how our business directly impacts biodiversity, but we aim to continuously monitor
and increase our knowledge of operational impacts. We worked closely with
stakeholders to understand potential and actual impacts, and to prioritize which
topics and opportunities to focus on going forward.
3. Assess
The most material nature-related risks and opportunities were examined in a
workshop on physical and transition risks, using TNFD recommended scenario
planning. Scenario planning proved valuable in evaluating our business resilience
concerning nature and biodiversity. We considered the physical risks for the direct
shipping operations to be small, but the transition risk is somewhat higher as
sector-specific topics such as protection from invasive species, conservation of
maritime territories and underwater radiated noise may become more regulated.
4. Prepare
The results from the assessment have shaped our strategy and ambitions and
guided our reporting on nature and biodiversity topics. Our ambition going forward
is that we shall actively protect biodiversity and improve internal ocean
knowledge. We will do this by defining further actions under the levers of avoiding
impact, minimizing impact, and contribute to restoring ocean health by sharing
insights gained by our operations.
Sites adjacent or close to biodiversity sensitive areas
Wallenius Wilhelmsen operates globally, and our operations are in proximity of
biodiversity-sensitive areas across different geographies. We used ocean-based
data layers to assess our impact on biodiversity and species.
17
The EBSA territories
encompass areas critical for threatened, endangered or declining species and/or
habitats. As we sail across ocean territories, including EBSAs and other sensitive
areas, our operations may impact threatened species. However, we mitigate this
through measures such as transitioning to cleaner fuels as part of our net-zero
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17
We used the following ocean-based data layers: Marine Priority Areas (MPAs), Ecologically and
Biologically Significant Marine Areas (EBSAs), Marine Wilderness, and Human impact on oceans
strategy and implementing avoidance strategies or speed reductions in territories
important for large marine mammals.
For terminals and sites, we used land-based data layers to find interactions with
biodiversity-sensitive areas.
18
We assessed land-based operations and their
vicinity to several data layers including "Areas of rapid decline in ecosystem
integrity", also called "Biodiversity hotspots." The list below describes operations
that are adjacent to, or overlapping with, the biodiversity hotspots. However, these
areas cover large territories, even countries, and we need to set a threshold to
better understand which terminals and sites are most material for further
assessment. We do not have any resource-intensive operations with material
impacts leading to land degradation, desertification, or soil sealing.
In general, we consider adverse impacts from overlapping with or being located
adjacent to biodiversity-sensitive areas to be immaterial in both our shipping
operations and logistics operations, as we diligently adhere to international and
local regulations. In addition, we are implementing a comprehensive integrated
management system that requires procedures to assess environmental risks and
identify actions to mitigate adverse impacts. We do this through collaborative
measures following ISO principles and share the best practices throughout the
organization.
USA California Floristic Province Santa Paula (EPC)
Los Angeles (VPC)
Oxnard (VPC)
Port Hueneme
Australia Forests of East Australia Fairy Meadow (EPC)
Brisbane (EPC)
Australia Southwest Australia Perth (EPC)
South Africa Maputaland-Pondoland-Albany Durban (Terminal)
Durban TSAM Site (VPC)/
(HFPPO)
East London (VPC)
Prospecton (VPC)
Mexico Mesoamerica Manzanillo (Shipping Services)
Cuernavaca (VPC)
Guanajuato (VPC)
Brazil Mesoamerica Altamira (VPC)
Singapore Sundaland Singapore (EPC)
Country Biodiversity hotspot Sites adjacent or overlapping the
biodiversity hotspot
Biodiversity scenario analysis
To supplement the assessment on material impacts, risks and opportunities, we
conducted a scenario analysis to understand the resilience of our business
regarding systemic, physical and transition risks.
The scenario analysis is important to better understand the future of our sector, to
develop robust strategies and to identify new business opportunities and
concepts. We developed four scenarios in line with TNFD’s proposed approach to
scenario analysis. The TNFD builds on and applies insights from relevant global,
regional and location-specific scientific assessments on biodiversity and
ecosystems conducted by the Intergovernmental Platform on Biodiversity and
Ecosystem Services (IPBES). As a result, we regard this guidance as best practice.
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18
We have assessed sites and terminals and its vicinity to several data layers including "Areas of
rapid decline in ecosystem integrity", also called "Biodiversity hotspots" (data source from Global
Forest Watch) and also its vicinity to "Areas important for biodiversity, including species" (data
source from UN Biodiversity Lab). We also looked at data layers on "Areas of High Ecosystem
Integrity" and "Intact Wilderness Area", but we do not have any overlapping or adjacent sites in these
areas.
We assessed each scenario on different time horizons towards 2030, 2040 and
2050.
Scenario 1: Ahead of the game
Regulations are aligned across geographies, with governments moving in the
same direction to stop the loss of nature, sending clear signals to business and
finance. Companies are not experiencing severe disruptions due to physical
nature risk. Marine ecosystems appear to be improving, including through
population increases. Regulations are being implemented as expected, and the
world is on track to reach the biodiversity conservation target set by the United
Nations to protect at least 30 percent of the ocean by 2030. The High Seas Treaty
is about to be ratified.
Scenario 2: Go fast or go home
The loss of nature is sudden and disruptive as some tipping points are reached.
Governments are aligned when responding with policy interventions. This reduces
uncertainty. Corporations face immediate and material business harm from
disruptions to ecosystem services. To prevent negative impact on marine life,
shipping activities are banned in certain areas as a precautionary measure. This
has a sudden impact on shipping routes, that must be diverted to comply with the
regulatory changes. Countries are taking immediate action to reduce the
mounting problem of invasive species, creating delays and increased costs
regarding for example treatment of ballast water and documentation. Companies
are risking great reputational damage if negative impacts on biodiversity are
linked to their operations.
Scenario 3: Sand in the gears
Nature slips down the list of corporate risk priorities because visible material costs
are small and not expected to change any time soon. While the CSRD is
implemented in Europe, but reporting on nature-related impacts, risks and
opportunities remains high-level and is often overlooked by investors and other
stakeholders. Assessing risks and impacts on biodiversity remains difficult for the
shipping industry as few applicable methods are developed. There are conflicting
directions in government response to nature loss. Some countries
disproportionately experience the results of nature loss. This is particularly true of
the Asia Pacific region which is the region with the greatest marine diversity
globally.
Scenario 4: Back of the list
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Wallenius Wilhelmsen – Annual Report 2024 96
Conflicting and ambiguous signals from national governments, international
bodies and non-market forces prevent corporations from taking systematic
action, even as they face significant negative material impacts from the loss of
ecosystem services. Governments and the international community fail to follow
up on ambitions in the Global Biodiversity Framework and The High Seas Treaty. A
shortage of raw materials disrupts supply chains and create volatility in fuel
prices. This affects shipping companies indirectly through a slowdown in demand
for services as well as directly through effects such as volatility in fuel prices and
shipyard delays. Furthermore, ports are caught up in problems related to pollution,
congestion and ecosystem disruption causing some ports to close periodically.
Summary
Due to the high level of compliance and integrated management system
procedures across the organization, we believe that we are well prepared for
different scenarios whether this entails higher or lower regulatory interventions
and higher or lower magnitude of nature loss. We recognize that systemic or
physical risks disrupting supply chains can have a significant impact across
businesses with global value chains. This may be dire for our business partners,
end consumers and our company, and it stresses the importance of managing
nature and biodiversity in a way that does not lead to natural disruptions but rather
environmentally- sustainable value creation and conservation.
How we work
E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy
and business model
E4-2 Policies related to biodiversity and ecosystems
We manage our impact on biodiversity in several ways, including waste reduction,
and avoiding sensitive areas on our journeys. Most importantly, we strive to reduce
the risk of spreading invasive species in our cargo, through ballast water
treatment systems complying with the US Coast Guard (USCG) regulations and
anti-fouling programs adhering to our strict anti-fouling standard. We also share
data with research institutions, and we work to increase our own knowledge to be
able to implement strategies, policies, targets and measures that contribute to
halting and reversing the loss of biodiversity.
Biodiversity policies
The Group Environmental Policy is our group-wide policy to manage our material
environmental topics including climate change and decarbonization, biodiversity
and ecosystems and pollution. The scope of the policy covers all activities within
our Group, including ocean shipping, vehicle processing, terminal management,
in-land distribution and upstream and downstream activities across our value
chain, such as vessel new builds and vessel recycling. The Board of Directors has
the ultimate responsibility for this policy, while the CEO has the ultimate
responsibility to ensure compliance with this policy.
For biodiversity specifically, the policy underscores that protection and
sustainable management of biodiversity and ecosystems is essential to ensuring
long-term social and economic stability. It establishes our commitment to do our
part in halting and reversing biodiversity and nature loss and protecting
endangered species on land and in our oceans. It also states that we will work to
improve our understanding of our impacts on biodiversity and mitigate negative
impacts on natural environments across our value chain. Land-based issues
regarding sustainable land, agriculture and deforestation are not material topics
for our activities.
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When we have completed the full biodiversity assessment, we will evaluate
whether we need to revise the Group Environmental Policy and consider specific
biodiversity and ecosystem policies. Sustainable land, agriculture and
deforestation are not material topics for our activities.
For all environmental topics, we shall continue to identify, assess, and control the
environmental impacts of our value chain. We shall also establish and maintain a
risk management system that includes regular risk assessments, identification,
and control measures. We will strive to continuously improve how we monitor and
manage our environmental risks with an ISO 14001-compliant integrated
management system.
While we do not source or consume raw materials as a service provider, we still
strive for transparency and sustainability in our value chain. We therefore do not
purchase, supply, or use minerals sourced from conflict-affected areas, and
conflict minerals are prohibited from use in our supply chain.
19
To ensure good
practice, we have developed a questionnaire to be answered by relevant suppliers
regarding resource use and management. This will give us insights into which
suppliers should be further considered based on their environmental impact.
To ensure a common approach for our global operations we are committed to
collaborate and embrace standards developed by the United Nation`s Global
Compact, OECD's Guidelines for Multinational Enterprises on Responsible
Business Conduct. We are also a member of the Ship Recycling Transparency
Initiative. These international networks and initiatives support continuous
improvement of managing business’ impact on environmental matters.
Biodiversity strategy
In 2024, we developed a biodiversity strategy based on the outcome of the global
biodiversity assessment on ocean operations. The strategy is structured and
informed by the mitigation hierarchy of the TNFD and the Global Montreal-
Kunming Biodiversity Framework.
We do not have a biodiversity transition plan and do not plan to develop this in the
near future as we consider our initiatives on managing risk of adverse impacts to
be sufficient. Still, our biodiversity strategy will be reviewed annually and include
elements from land-based operations as well as upstream and downstream value
chain, if this is material.
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19
As defined in “OECD Due Diligence Guidance for Responsible Supply Chains of
Minerals from Conflict Affected and High-Risk Areas”
We shall actively protect biodiversity and improve ocean knowledge
↙ ↓ ↘
Protect and avoid
important ocean territories
Minimize impact
on marine ecosystems
Increase insight to
restore ocean health
Managing risk of invasive species
Reduce risk of invasive species
through ballast water management,
biofouling management, cargo
inspection and treatment
Conservation of important territories
Avoid the arctic territory, recognizing its
importance to the state of the oceans
Avoid/minimize operations in
biodiversity sensitive areas and
particularly areas important for
cetaceans
Manage pollution
Reduce air pollution through
operational and technical efficiencies,
and by transitioning to alternative fuels
Reduce risk of spills into ocean
through detection, monitoring and
training
Reduce noise pollution across our
operations
Collect and share data for research
Engage with research institutions in
need of ocean data
Contribute with data collection to
support research needs
Promote partnerships that publicly
share data
Our primary focus is to avoid and reduce impact and contribute positively with
more knowledge about the ocean. Therefore, we will not use any biodiversity
credits to offset adverse impacts in our strategy.
We have also not yet adopted action plans related to biodiversity and ecosystems.
We are awaiting guidelines on setting science-based targets that we then aim to
follow up with specific actions and allocation of resources.
How did we perform?
E4-3 Actions and resources related to biodiversity and ecosystems
Following the biodiversity impact assessment guided by LEAP and the strategy
process, we have not identified a need to expand the mitigation measures already
in place. Instead, we aim to structure our biodiversity efforts more holistically and
integrate them with existing processes and management systems.
We have several important measures in place to mitigate actual and potential
impacts from invasive species, disturbances and pollution which are important
drivers of biodiversity loss. These measures are connected to our goals and
strategy for ocean operations:
Managing risk of invasive species
Wallenius Wilhelmsen is at risk of carrying invasive species, such as snails and
bugs as well as seeds in the cargo we transport. This is a growing international
concern. The brown marmorated stink bug (BMSB) is a relevant example: The bug
is native to East Asia, but has now migrated to the US, Canada and Europe, where
it ruins crop harvests and has significant economic impact. Measures are being
taken to prevent the BMSB from entering Australia, New Zealand, Papeete,
Reunion and Nouméa, where its impact on the ecosystem would be devastating.
We have established a biosecurity management plan to reduce the risk of
invasives. All cargo travelling to these destinations during the bug season must
undergo either a heat treatment or a stringent fumigation process. We inspect for
BMSB findings during treatment sessions before shipment – as well as count
findings onboard the vessel during sea voyages.
The measures on treating and avoiding the cases of BMSB correspond to the
expectations of the Kunming-Montreal Biodiversity Framework and its ambition in
halting and reversing nature loss by 2030. It is specifically related to target 6
“reduce alien species spread by at least 50 percent by 2030”. It also supports the
goal that we shall “protect and avoid important ocean territories” as stated in our
biodiversity strategy.
To manage and reduce the risk of invasive species, we work to ensure high quality
ballast water management, and biofouling management. For ballast water
treatment, we monitor the percentage of vessels with the Ballast Water Treatment
Management Exchange to ensure compliance with the Ballast Water Convention.
For biofouling management, we track that all vessels follow procedures for
cleaning anchors and chains when heaving up, monitor the frequency of hull
cleaning per year, and pilot new technologies to address biofouling. We have
developed an antifouling policy that specifies niche areas for monitoring, and we
also track the number of inspections conducted on our vessels. In cargo
management, we have a biosecurity management plan that applies to all our
vessels sailing in certain geographies. This includes cargo inspections during
voyage, as well as heat treatment and fumigation for cargo at risk of carrying
invasive species.
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Conservation of important territories
Wallenius Wilhelmsen does not operate in the arctic territory. We adhere to
mandatory regimes on the Americas’ east coast which include reporting when
entering key whale habitats, fixed and temporary speed reduction and slow zones.
On the west cost of the USA, due to our efforts to adhere to voluntary speed
reduction measures, we received the Sapphire award in 2024 by the Blue Whales
and Blue Skies program. Together with a few other shipping companies, we
introduced a new voyage passage around Sri Lanka to protect blue whales during
their feeding and breeding areas. We engage electronic chart displays and
information system (ECDIS) suppliers to add voluntary speed reduction regions to
electronic maps, although it is not easy to keep updated with the movements of
the whale populations.
Whales are endangered species and whilst no longer at risk of being hunted, their
feeding and migration routes are often located close to major ports and often
overlap with shipping lanes. They are therefore vulnerable to collision with vessels
and could be impacted by noise pollution.
Managing risk of pollution
Our efforts to reduce pollution extend beyond fuel emissions. We are exploring
how to implement strict waste management protocols on all our vessels, ensuring
that no harmful waste or plastics enter the oceans. Through detection, monitoring
and training of all staff, we reduce the risk of spills during bunkering. We are also
exploring the use of closed-loop scrubbers and other technologies to minimize
harmful discharges.
Understanding our effect on underwater radiated noise is also important to reduce
potential impacts and help preserve marine habitats. We work to incorporate
quieter propellers and optimized engine designs. Often there are synergies
between speed adjustments for fuel optimization and noise reduction.
Collect and share data for research
Enabling research institutions and the society to enhance our understanding of
the oceans is a key mission in our biodiversity efforts. We were the first carrier to
join the Woods Hole Oceanographic Institute’s Science Research on Commercial
Ships, alias ‘Science RoCS’ initiative. We share data with our partners on ph-values
and ocean temperatures from our vessels participating in the program. We also
deploy free-drifting and vessel-mounted instruments to monitor the vast and open
oceans.
How we will proceed
E4-4 Targets related to biodiversity and ecosystems
To continue developing our knowledge and understanding of the complexities and
importance of biodiversity and ecosystems, we will work to improve our impact
assessment for the remainder of the value chain, and we will also consider setting
science-based targets for nature.
Set biodiversity targets
Setting measurable and quantifiable targets related to biodiversity and
ecosystems requires globally recognized target-setting guidance and defined
sector-pathways. Following our complete biodiversity assessment, we seek to set
targets based on the latest recommended methodology. Once the guidance is
applicable, we aim to adopt targets within a medium-term time horizon and we will
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prioritize setting biodiversity targets for ocean transportation, which is our largest
business segment.
Even if we have not yet set specific targets on biodiversity and ecosystems, we still
have several important measures in place to mitigate actual and potential impacts
from invasive species, disturbances and pollution which are important drivers of
biodiversity loss. These measures include managing risk of invasive species,
conserving important territories for species, managing risk of pollution and
supporting research with data collection. We have already set several goals that
we will quantify and monitor as part of our renewed ocean strategy.
Value chain assessment
In 2024, we prioritized assessment of ocean operations. Going forward, we will
analyze our land-based operations further and set material thresholds for the
sites that are adjacent or located on top of biodiversity sensitive zones. We will
also start planning the assessment of our upstream and downstream value chain.
This is important to get the complete understanding of our impacts, risks and
dependencies, and will be included in our group-wide biodiversity strategy.
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Social
Own workforce
Why is it important ?
SBM-3 Material impacts, risks and opportunities and their interaction with strategy
Deep sea vessels are our most visible assets, however, it is our people that make
Wallenius Wilhelmsen. We need a strong, diverse and thriving workforce so we can
lead the way to connected, sustainable supply chains.
The safety and well-being of our people is at the core of everything we do and
central to our strategy. However, due to the inherent complexity and multitude of
interfaces between equipment and workers, incidents unfortunately occur that
threaten the safety and security of our workforce. Our workers regularly encounter
heavy moving machinery and equipment, and our seafarers are also exposed to
risks such as fires and infectious diseases. These negative impacts and risks
occur over the short, medium and long-term and are considered systemic.
Sadly, we experienced one fatality in January 2024 when a crew member of
EUKOR’s Morning Lisa tragically died while operating the forklift truck on one of
the vessel’s internal ramps while it was alongside in the Port of Bremerhaven,
Germany. Our heartfelt condolences go to his family and friends. The tragic
incident has undergone an internal investigation to identify the contributory
factors and highlights the importance of continuously working on improving
safety in our business. Detailed action plans are being implemented to address
the contributory factors and improve the safety of forklift truck operations
onboard our vessels.
As a global shipping and logistics company with employees and operations
around the world, we recognize that our activities may influence and impact the
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human and labor rights of our stakeholders. Respecting human rights across all
our business activities help to uphold our core values and achieve our vision to
create long-term, sustainable value for society. While our DMA did not identify any
positive material impacts on health & safety and working conditions, and we
currently do not have a benchmark or related metrics to assess positive impacts
on our workforce, we aim to be a responsible employer and set high expectations
for how we treat our employees.
Diversity in thoughts and backgrounds is essential for running our daily business
while transforming towards an emission free and digital future. Wallenius
Wilhelmsen is therefore committed to fostering a diverse and inclusive
organization and work to ensure equal opportunities for both our existing and
potential employees. We see this as an opportunity to makes us a more attractive
employer, provides a larger talent pool, multi-generational workforce with less
turnover and higher engagement.
How we work
S1-1 Policies related to own workforce
Safe and secure operations
The health, safety and well-being of our people is of paramount importance to us.
To reduce and manage these risks and impacts, we have implemented a health
and safety policy and management system. At Wallenius Wilhelmsen we believe
that all accidents and injuries can be avoided. Our ambition is to build a resilient
safety culture which will stand as a core element of our identity and way of
working. The policy specifies that safety is everybody's responsibility and to stop
unsafe acts and behaviors. It covers identification and management of safety
risks, emergency preparedness, training, reporting and investigation. The policy
conforms with ISO 45001 and applies to all employees working in Wallenius
Wilhelmsen, including temporary staff, contractors and agency staff. The Board of
Directors has the ultimate responsibility for the existence of the policy, whilst the
CEO has the responsibility to ensure organizational compliance with its content.
Working conditions & human rights
Our code of conduct, people policy and human rights policy are key to address
working conditions & human rights. The code of conduct is our employees’ guide
to making the right decisions and outlines the behaviors expected from them on
topics such as human and labor rights, discrimination & harassment and equal
opportunities. Our code of conduct prohibits any form of workplace bullying,
harassment or discrimination, promoting a workplace with equal opportunities for
employment and our strive to achieve diversity throughout the company. All
employees are expected to act in accordance with the code of conduct, however,
day-to-day responsibility for its implementation rests with all managers.
Managers are expected to lead by example and drive the culture of integrity across
the company. The code of conduct is approved by the Board and operational
responsibility lies with the Chief Executive Officer.
Our people and human rights policies are based on the United Nations (UN)
Guiding Principles on Business and Human Rights, the OECD Guidelines for
Multinational Enterprises on Responsible Business Conduct, the core conventions
that underpin it, and the International Labour Organization`s Declaration on
Fundamental Principles and Rights at Work.
The people policy is a new group policy which declares our commitment to
fostering, cultivating and preserving an inclusive workplace culture where our
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people are safe, their rights respected, and diversity appreciated. The policy is
foundational to implement our strategic pillars of:
• Expertise and leadership shaping the future.
• Value driven culture and organization.
• Future-ready workforce.
• Attractive employee experience.
The policy outlines our commitments to:
• Safe, healthy, and decent working conditions.
• Enable every employee to maximize their talents to become one band of
rockstars.
• Promote diversity in our workforce by promoting equal opportunities and
inclusion for all our employees.
• A work environment that is free of discrimination, harassment, intimidation,
or coercion.
• Work/life balance through reasonable working hours and living wages and
benefits.
• Respect the human and labor rights of our employees.
• Equip our people with training and development opportunities and attract
new talent with the necessary competencies to be a future-ready workforce.
The people policy is approved by the Board, whilst the Chief People Officer has
operational responsibility.
Our human rights policy outlines our commitment to respecting human rights in all
activities within our operations. The policy addresses working conditions, living
wages, discrimination, right to privacy, and modern slavery such as trafficking,
forced labor, servitude and slavery. Our duty and commitment to respect human
rights requires that Wallenius Wilhelmsen:
• Avoid causing or contributing to adverse human rights impacts throughout
our own activities and prevent or address such impacts when they occur.
• Seek to prevent and/or mitigate adverse human rights impacts that are
directly linked to our operations and services or connected to our business
relationships.
The Chief People Officer has also approved the human rights policy. The Chief
Sustainability Officer is responsible for ensuring an effective human rights due
diligence and to provide governance and advisory to facilitate the implementation
of necessary governance processes and procedures. To read about our
engagement with own workforce in our human rights due diligence, see S2-4.
All policies are publicly available on our website and we raise awareness of the
code of conduct and human rights policy through digital training courses for all IT-
enabled employees. Everyone working at or on behalf of Wallenius Wilhelmsen is
required to comply with the policies. These commitments extend across our
supply chain, and we communicate these expectations to our suppliers,
subcontractors and business partners through our Supplier Code of Conduct.
To read about the measures to provide and/or enable remedy for human rights
impacts, see S1-3.
Diversity, equal opportunities and inclusion
Our commitments to fostering a diverse, inclusive and fair working environment
are anchored in our values, code of conduct, and our people and human rights
policies. These policies, subject to local laws, emphasize our commitment to
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fostering a diverse, inclusive and fair working environment promoting equal
opportunities for all actual and potential employees.
The company’s bullying and harassment policy establishes a group guideline on
how to prevent and handle bullying and harassment. The aim is to ensure a
positive and constructive working environment which promotes organizational
effectiveness and employee well-being. The Chief People Officer is responsible for
the policy execution through involvement and delegation to relevant managers.
The company has a zero tolerance policy for bullying and harassment, and
allegations of bullying and/or harassment shall be investigated fairly, objectively
and confidentially.
Our people policies outline Wallenius Wilhelmsen’s commitment to fostering,
cultivating, and preserving a culture of diversity and inclusion and its commitment
to equal opportunities. The talent and acquisition & selection policy also promotes
fair and equal opportunities by providing guidelines on attracting diverse
candidates and making all stages of the recruitment process objective, inclusive
and free from bias.
The following grounds of discrimination are specifically covered in the policies;
racial and ethnic origin, color, sex , sexual orientation, gender identity, disability,
age, religion, political opinion, national extraction and other forms of
discrimination. As we are a global company, other forms of discrimination may be
covered in local policies in accordance with local laws and regulations.
The Chief People Officer is responsible for the policies and their implementation.
We monitor and measure the efficiency of these policies primarily through our
annual engagement survey.
S1-2 Process for engaging with own workforce and workers representatives
about impacts
At Wallenius Wilhelmsen, we are committed to fostering a culture that is safe,
diverse and prioritizes employee well-being. We have therefore adopted a general
process for engaging with our own workforce on health and safety, working
conditions & human rights and diversity, equal opportunities and inclusion which
complements local laws, cultures, and practices in the countries we operate.
Each year, we monitor our progress and the well-being of our employees through
an engagement survey, #engage, which allows employees to share thoughts,
concerns, and ideas confidentially with their managers and other leaders within
their organization. The survey is launched twice a year: a full survey and a pulse
survey which contains fewer questions. The surveys are sent out globally to all
employees apart for a few unionized sites.
The survey asks employees to rate their experiences and perceptions related to
health and well-being, both physical and psychological. For our production
workforce, we also ask questions related to safety rules and training, physical
conditions, and whether appropriate measures are taken when unsafe conditions
are uncovered.
We are also committed to fostering a diverse and inclusive workplace where every
employee feels valued and respected. Our #engage survey includes specific
questions to gauge our progress in this area and identify opportunities for
improvement. The survey asks employees questions on how Wallenius Wilhelmsen
supports equal opportunities initiatives, the experience of belonging, being
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accepted regardless of background, fair opportunities, and discrimination. In
2024, the overall #engage results were positive and very stable, with record
participation rates.
A dedicated team analyzes the survey results. These were presented to the group
executive management team and actions, desired outcomes, and timeline for
implementation are determined. The analysis helps track changes in employee
sentiment, evaluate the effectiveness of engagement strategies and pinpoint
areas that need attention. By examining YoY data, the company can make
informed decisions to refine its engagement efforts and ensure continuous
improvement in employee satisfaction. The increase in results across various key
themes (employee satisfaction, employer perceptions, and employee fair
treatment) speaks to the effectiveness of both the survey and our mechanisms for
responding to its results.
The engagement scores are also benchmarked against relevant industry sectors
to provide context and identify improvement areas relative to its peers. In 2025,
executive management will set targets and create actions plans for their individual
business areas and for the group. These targets will be shared with the workforce
through on-site and digital presentation.
Our Chief People Officer is responsible for overseeing our workforce engagement.
This includes monitoring the actions implemented in response to the surveys and
assess their effectiveness. Managers review team results, respond to comments,
and create action plans based on the feedback.
Together with two of our ship managers, Wallenius Marine (WM) and Wilhelmsen
Ship Management (WSM), we directly engage with seafarers on health and safety
topics at the officers’ conferences. The officers conference is a biannual event to
bring together our seafarers and other key personnel to ensure engagement, gain
insight into how we can best support seafarers and to communicate the
company's strategies and initiatives. Additionally, the conference provides an
opportunity to meet peers, managers and executives from different regions,
departments, and vessels, and most importantly fostering a sense of community
and collaboration in the organization. The key theme during this year’s officers
conference was “the journey to ZERO”. This is a commitment to zero injuries, zero
serious accidents and zero emissions. One of the topics discussed was the
campaign See it – Say it – Stop it that promotes “Your Voice Matters”, which
included an open exchange of ideas. Officers from across roles-on deck and in the
engine room-shared their expertise, proving that every voice matters when driving
goals forward.
Global Framework Agreements are established at certain sites, but are not
uniform across the organization. In our code of conduct and human rights policy
we recognize employees’ rights to form and/or join trade unions and collective
bargaining without fear of reprisal, intimidation or harassment. In certain parts of
our global organization, where our workforce is unionized, we are committed to a
constructive dialogue with their freely elected representatives. To address the
expectations of our workforce and their representatives, we follow the basic
principles of collective bargaining. We work directly with employees and their
representatives to understand their issues, concerns, challenges and priorities.
With some unions, we have safety and joint labor committees to address and
discuss working conditions. Having gained an understanding of these
expectations, we negotiate directly with employee representatives to reach a
working agreement that reflects the needs of each party. The effectiveness of
engagement with employee representatives is not measured.
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S1-3 Process to remediate negative impacts and channels for own workforce to
raise concerns
We have a whistleblowing channel, the Alert Line, enabling our workforce to report
concerns and complaints. This is handled by a third party to ensure confidentiality.
In the event that the company should cause or contribute to a material negative
impact on our own workforce, we adhere to a structured approach to provide or
contribute to appropriate remedies.
All reports are treated with the utmost sensitivity and confidentiality is protected
as far as possible. When a grievance is received, we conduct a due diligence
process to collect facts about the case, and when verified, we seek to remedy any
adverse impacts. The process for handling grievances and complaints is further
detailed in our whistleblowing policy and procedure for reporting and managing
concerns.
The Compliance Team analyzes all complaints and grievances to understand any
trends over time and the Chief Ethics and Compliance Officer reports Alert Line
cases quarterly to the Board Audit Committee.
We inform our employees of the channel in the onboarding process and by
incorporating them into management touchpoints. During the year we
implemented a new e-learning module with a specific section on the
whistleblowing channel, including when and how employees may raise their
concerns. We have also conducted a compliance survey for all IT-enabled
employees which asked whether employees know about the whistleblowing
channel and trust the process. The results from the survey identified a need to
further increase awareness about the grievance mechanism. For more
information about the Alert Line, please refer to G1-1.
S1-4 Taking action on material impacts on own workforce and approaches to
managing material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions
Safe and Secure Operations
The safety and well-being of our people is at the core of everything we do.
However, due to the inherent complexity and multitude of interfaces between
equipment and workers, there are risks that threaten the safety and security of our
workforce. We are managing these risk through our safety management system
according to ISO 45001. Worldwide more than 80% of our land-based operations
are ISO certified and we are working to certify our shipping operations and
corporate functions.
Safety 1st, our safety management system for Logistics provides our workers with
guidelines to help reduce the risk of injury and illness at the workplace. This is
accomplished through the identification and evaluation of hazards and taking
action to manage the risks that arise in workplace operations. Management is
responsible for ensuring that health and safety policies and procedures are clearly
communicated and understood by all employees, whilst supervisors and lead
personnel are expected to enforce them.
As part of Safety 1st, we launched the “Dare to be aware” campaign in 2023 which
was followed up with the “See It, Say It, Stop It!” campaign in 2024. These
communication campaigns put focus on safety in the tasks front-line workers
perform. The aim of the campaign to raise awareness of safety in the work
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environment, reducing the likelihood of accidents occurring. Although we are not
able to directly track the effectiveness of the actions through our loss time
incident frequency (LTIF), monitoring the LTIF provides an indication of whether
the policies and measures implemented across the organization are successful.
Our shipping services launched this year a safety culture program. Initially about
5000 participants will be involved, including employees in Shipping and
Government services, vessel crew, ship management companies, parts of
Logistics Services that are involved in cargo operations, several terminals and our
sales organization. The aim is to build a culture where people feel safe to admit
mistakes, share safety concerns and work together to reduce the likelihood of
serious incidents and accidents. This is done by implementing eight safety
leadership behaviors;
• Trust as the cornerstone of any successful team.
• Care for the work you do and the people you work with.
• Open to be receptive to feedback and recognizing that mistakes can happen.
• Learn from mistakes and see them as opportunities for growth.
• Feedback given in a respectful and constructive manner is essential for
growth.
• Speak up about concerns or mistakes can prevent small issues from
becoming major problems.
• Promote team so that everyone feels valued and supported, the team
becomes more effective.
• Managing dilemmas so that we reduce risks and build a stronger, more
resilient team.
We use a digital tool - Cultiv8 Application - to learn about these behaviors and
apply them in our daily work. Cultiv8 is an interactive app that uses simulation
games and quizzes to strengthen safety leadership behaviors. While the safety
culture program is a long-term journey, the Cultiv8 application is planned to be
implemented by 2026. To track and assess the effectiveness of the safety culture
program, bi-annual surveys will be conducted in addition to the monitoring of
lagging metrics such as the number of serious accidents.
Re-routing vessels
The company does not operate through the Suez Canal due to safety concerns.
Since December 2023 we have re-routed all our vessels to go around Cape of
Good Hope. The expected outcome of re-routing is to ensure the safety of our
crew. This initiative will continue until it is deemed safe to go via the Suez Canal.
Working Conditions & Human Rights
Due to the nature of our industry and our global operations, we acknowledge that
our practices can contribute to material negative impacts on our own workforce.
Our impacts are identified through our annual human right’s due diligence (HRDD)
assessment. This involves desktop studies to assess external trends and input
from stakeholders across all regions on human rights scenarios which have
occurred during the reporting period. Our HRDD follow the OECD Due Diligence
Guidance for Responsible Business Conduct to identify and asses our actual and
potential human rights impacts, integrate and act upon findings, monitor
progress, track responses and communicate how impacts are addressed. The key
scenarios that were identified in 2024 are the following:
• Ensuring safe, healthy and decent working conditions, including
psychological safety.
• Providing a work environment that is free of discrimination, harassment,
intimidation or coercion.
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• Treating people working for us fairly and without discriminating against
(indigenous and minority) any group or individual based on ethnicity, religion,
gender, age, nationality, sexual orientation, disability, family or carer’s
responsibility or any status protected by law.
• Promoting living wages and benefits.
• Promoting work/life balance through reasonable working hours.
• Respecting employees’ rights to form and/or join trade unions and collective
bargaining.
• Upholding the right to privacy of those who entrust us with their personal
information.
In addition to the HRDD, we conduct a quarterly corporate enterprise risk
assessments at the segment level. This involves business units evaluating
operational and emerging risks and take counter measures or corrective actions
in response.
We follow standardized procedures and policies in our annual salary review for
office-based employees and production workers. For office workers, we involve
internal stakeholders across regions to get information on market trends, inflation
and other factors which impacts wages. In addition, we use external resources
such as Korn Ferry, Hay Rating, World at Work to ensure adequate and fair pay. For
production workers, the annual salary review is determined at the local level,
either via collective bargaining agreements with unions, or via a structured salary
review process which base our wages on external labor market benchmarks.
Across our global operations, we follow all local minimal wage laws. The expected
outcome is to ensure we pay minimum wages, remain competitive and motivate
the workforce. To track the effectiveness, the #engage survey includes questions
on whether employees feel they are fairly rewarded in relation to pay, promotion
and training for their contributions to Wallenius Wilhelmsen. The scores from the
survey are monitored. To read more about the engage survey see Stakeholder
Engagement.
During 2024 we re-launched our human rights training. The training is now
mandatory for all IT-enabled employees. The training introduces human rights and
our approach in addition to taking the participants through scenarios on material
impacts and risks. Additionally, we update our human rights policy on a regular
basis to ensure continued relevance and drive continued improvement. We
require everyone working at Wallenius Wilhelmsen, or on our behalf to comply with
this policy. The expected outcome is to raise awareness and communicate our
human rights commitments to everyone working at Wallenius Wilhelmsen, or on
our behalf.
Together with ship management we are in progress of installing the next
generation of broadband satellite communications to improve crews' contact with
family and improve their psychological environment onboard and promote work-
life balance. BazePort provides seafarers with access to movies, TV programs and
we use Bazeport to promote safety, efficiency and crew welfare summaries from
the officers’ conferences. All owned and bareboat vessels have BazePort installed.
We currently do not assess the effectiveness of the installation of BazePort.
Wallenius Wilhelmsen is committed to providing avenues for affected individuals
to come forward with human rights grievances. If we through our actions directly
cause or contributes to harmful human rights impacts, the company will promote
access to and/or provide fair remediation as outlined in our procedure of
managing concerns. In 2024, there has not been identified any material impacts
through the grievance mechanism. Please see G1-1 for further information.
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Diversity, equal opportunities and inclusion
During 2024 we launched our new company values. The values are "We Care", "We
Challenge" and "We Commit". They are enablers of creating a diverse and inclusive
workplace as they encourage employees to speak up, have different views and
care about each others’ safety and well-being. The values are the cornerstone of
our code of conduct and applies to everyone. All IT enabled employees must sign
off on the code of conduct annually and managers are held accountable to ensure
their direct reports do so. Furthermore, our values are integrated into our
GoGrowSucceed (GGS) process which is part of the broader Workday people
system. GGS is the company`s career development tool and applies to all office
workers globally. Workday is our global system for people processes. Employees
and managers must assess how employees live each value when evaluating
performance of their role. This is documented in the GGS system and thus tracked
centrally.
During the year, Wallenius Wilhelmsen launched its new leadership expectations.
The expectations emphasizes that managers and leaders must have an inclusive
mindset and behave in a way that ensures a diverse and inclusive workplace
where everyone’s different talents and characteristics are appreciated, and where
open communication and different views are encouraged and listened to. The
leadership expectations are set out in our code of conduct and is being built into
our leadership programs such as the global leadership development program. The
progress and completion of all leadership courses are tracked.
The leadership expectations have also been worked into our GGS. Managers are
expected to implement and follow our leadership expectations when conducting
their performance reviews with their direct reports and specific training material is
provided to support this.
In 2024 the company appointed a dedicated Vice President for Culture, Diversity,
Inclusion and Belonging to strengthen our work on diversity and inclusion. The role
is responsible for creating and implementing a corporate strategy to ensure that
all our HR processes support our strategy by reducing biases that hinder equal
opportunities, attracting the best talent and foster an inclusive and
psychologically safe workplace.
These key actions will apply to our employees globally. We expect the outcome of
the listed actions to address the material impacts and risks as well as strengthen
the opportunity identified in our DMA. These key actions will apply to our
employees globally. In particular, these actions will contribute to a future-fit,
inclusive, and resilient organization composed of top talents and well-equipped
leaders. We anticipate that these efforts will foster stronger leadership and
culture, leading to a clearer strategy on diversity, equal opportunities, and
inclusion within the organization. Over time, we aim to integrate these principles
into all HR processes and establish transparent and relevant KPIs related to people
and culture.
How did we perform?
S1-5 Targets related to managing material negative impacts, advancing positive
impacts and managing material risks and opportunities
Safe and secure operations
To monitor our safety performance and the effectiveness of our health & safety
policy and initiatives, we have set loss time injury frequency (LTIF) targets for
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shipping and logistics. The targets are reviewed on an annual basis and applies for
the financial year 2024. There is a collaborative approach to setting and reviewing
targets, led by business performance. LTIF performance is tracked on a
continuous basis.
LTIF Shipping
LTIF is calculated using the number of fatalities, permanent disability, partial
disability and lost work-day cases per 1,000,000 (1 million) exposed hours. In
2024, our LTIF was 0.41 which is significantly below our target of 0,75. Our LTIF for
shipping has decreased from 0.56 our 2023 baseline, to 0.41 in 2024. This
highlights our continuous efforts to establishing a safety culture and improving
our safety performance.
The scope for this target includes all seafarers when onboard vessels. For ARC,
cadets and unlicensed apprentices onboard are excluded from the target and LTIF
calculation.
LTIF Logistics
LTIF for logistics is calculated using the number of fatalities and lost work-day
cases per 1,000,000 (1 million) work hours for land-based employees. The scope
of the target applies to all production workers globally. In 2024, our LTIF was 12.19
which is below our target of 12.83. The LTIF has decreased from 14.33 our 2023
baseline, to 12.19 in 2024.
Safety objectives are reviewed and agreed upon at a company-wide level. Targets
are set after reviewing the previous year's results and trends. Data sources have
shifted from annual injury reports to real-time incident reporting systems, with
quarterly reviews. Once the group-wide improvement objectives are set, individual
business segments and regions review the global initiative and evaluate it against
their local performances.
We are working to strengthen the accuracy of the reporting, please see GOV-5 for
further information.
Diversity, equal opportunities and inclusion
The company primarily tracks and assesses the effectiveness of its actions and
initiatives in this area by measuring annual global employee engagement scores
which asks specific questions related to diversity and inclusion. Please see SBM-2
for further information. Overall, in 2024 our engage scores have increased when it
comes to diversity & equal opportunities, health & well-being and employee
engagement.
In addition, we track turnover rates in Workday and undertake exit surveys that
allows employees to select standardized categories of reasons as to why they
choose to leave the company. This allows us to collect data and assess any factors
which played a part in their decision to leave. The responses are recorded in
Workday which allows us to analyze trends.
In March 2024, Wallenius Wilhelmsen signed the WISTA Norway Pledge "40 by 30".
The Women’s International Shipping & Trading Association (WISTA) is an
international organization for maritime professionals with 4,350 members in more
than 56 countries which aims to attract more women to the male-dominated
shipping industry and support them in their careers. WISTA Norway consists of
some 450 business and Wallenius Wilhelmsen is a member.
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The WISTA Norway "40 by 30" pledge asks companies to commit to creating
specific diversity goals anchored by top management and which are measurable
and transparent. In particular, the pledge asks companies to improve the
representation of women in senior leadership positions, with the ambition of
having 40% of senior leadership roles held by females by 2030. This is an ambition
to focus on removing biases and giving everybody an equal opportunity and it is
not a quota requirement.
Wallenius Wilhelmsen has chosen to interpret this gender focused target wider
than WISTA Norway to improve our gender distribution within the whole
organization globally, subject to local law, and show our commitment to diversity
and equal opportunities. We will seek to improve gender equality from Senior
Manager level upwards. This means our commitment goes beyond level 3 leaders,
it covering the Executive Leadership Team, our Senior Vice President roles, our
Vice President Roles and our Senior Manager roles.
As of our base year 2024, the company had 25 percent of female employees in
senior leadership positions globally, reported in headcount. To reach 40 percent
by 2030 will be a considerable stretch particularly as we have chosen to apply the
pledge more broadly and given our starting point. However, we will still strive to
meet this pledge as we believe it is important to our people strategy and diversity
and equal opportunity ambitions. In 2025, we will undertake a review of the gender
demographics of our workforce to see what measures need to be taken to meet
the WISTA Norway pledge and set annual KPIs. The review will also enable us to
assess the feasibility of the WISTA Norway pledge’s stretch ambition.
The target and our performance will be published on our Intranet and monitored in
Workday. We view WISTA as representing our stakeholders when committing to
the pledge and did not engage directly with our workforce or worker's
representatives.
There are existing limitations to collecting data that can impact our ability to meet
the WISTA Norway pledge. Whilst our digital recruitment tool (i-cims) is integrated
with Workday, it does not collect diversity data from applicants. Furthermore, not
all locations use i-cims and instead have manual processes. This means we are
not able to collect diversity data throughout the recruitment process from
application, to selection, to final candidates. This limits our ability to identify where
bias might affect our recruitment process and take action to improve.
How will we proceed?
S1-4 Taking action on material impacts on own workforce and approaches to
managing material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions
Safe and secure operations
We have taken an integrated management system approach to safety and
security based on key ISO standards. Currently, more than 80 percent are certified
to 9001, 14001, and 45001 standards. The number of certified sites is expected to
continue to grow and we are reviewing options to start a group-wide certification,
which will include 45001.
Working Conditions & Human Rights
We plan to assess how to improve the quality of reporting for data collected and
stored locally (namely, cases of discrimination, harassment, and potential fines).
We will look at our existing systems and how we can leverage them and assess
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whether any short comings need to be addressed with new digital tools or
systems.
Diversity, equal opportunities and inclusion
The company intends to set a diversity, equal opportunity and inclusion roadmap
for creating measurable and transparent KPIs starting from 2025. The People &
Organizational Development team is expected to be in place during 2025 and will
provide global standards, guidelines and processes for company-wide
organizational development, drawing on synergies, standardization and reduce
redundant work. The resources in this team are enablers of diversity, equal
opportunities and inclusion. Going forward, we will standardize our recruitment
procedures and assess how we can gain data from the processes. As our major
risk and opportunity relates to attracting and losing diverse talent, we need better
data in the recruitment area to form data driven decisions.
Wallenius Wilhelmsen has also decided to implement Workday Learnings in 2025.
This is a learning platform that can be integrated into our people system, Workday.
This tool will provide easy access to training and development programs including
those relating to diversity and equal opportunities. Through Workday Learnings we
will be able to push trainings to all IT enabled employees and managers, thus
tracking them centrally. The company plans to start rolling out the training to
managers and staff from 2025.
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Performance tables and methodology
S1-6 Characteristics of the undertaking’s employees
Own Workforce
Employees Non-Employees
• Regular Employee
• Fixed term / temporary
• Expatriate and trainee / apprentice
• Contractor
• Consultant
• Agent
• Seafarers
Workforce characteristics
20
2024
Employees by gender
Female 2,270
Male 6,333
Other 0
Not reported 23
Employees by major countries (>10% of group headcount)
United States of America 3,530
Mexico 2,011
Employee turnover
Number 3,753
Rate (%) 44
Employees by contract type
Number of permanent employees 8,470
Number of temporary employees 156
Number of non-guaranteed hours employees (casual) 15
Number of full-time employees 8,476
Number of part-time employees 135
Methodology and assumptions
Employment type is reported in accordance with the definitions in Workday,
Wallenius Wilhelmsen`s human resource system. In 2024 more than 10 percent of
the company’s workforce were employed in Mexico and the United States.
The employee numbers are reported as headcount, and at the end of reporting
period, representing the information for that point of time, without capturing
fluctuation during the reporting period. All employees registered in Workday are
counted. The data is extracted from Workday on January 8th, a limitation being
that backdated events which occur after this date will not be included.
The turnover covers all employees who have left the company during the reporting
period that registered in Workday by the report extract date, including both office
and production workers. If there are any back dated termination initiated after the
extraction date, these terminations are not included.
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20
see note 4. Employee benefits and board remuneration
S1-7 Characteristics of non-employees
Non-employees in own workforce 2024 2023 2022
Office and production workers 625 - -
Seafarers in pool 3,666 - -
Total number of non-employees 4,291 - -
Methodology and assumptions
Non-employee workers are reported in headcount at the end of reporting period,
representing the information for that point of time, without capturing fluctuation
during the reporting period. It covers external consultants, contractors and
agencies that are registered in our global HR system. Non-employees also
includes active seafarers in the pool. All owned and bare boat chartered vessels
are managed by WSM (Wilhelmsen Ship Management), Wallenius Marine (WM)
and American RoRo Carrier (ARC).
WSM: The number of seafarers represents the total number of active seafarers in
the pool. Seafarers are marked inactive if they have voluntarily resigned, if
terminated, contracts expired, upon expiry of unpaid leave.
WM: All seafarers in pool are included, based on legal requirements.
ARC: All officers are included in the headcount reporting. Ratings are excluded
because they are not licensed, meaning they might not return to ARC vessels after
their leave.
S1-8 Collective bargaining coverage and social dialogue
Employees covered by collective bargaining agreements 2024 2023 2022
Employees in EEA 288 - -
Percentage 3 % - -
Wallenius Wilhelmsen has established collective bargaining agreements in the
EEA. The collective agreement reported is based on headcount at the end of
reporting period, representing the information for that point of time, without
capturing fluctuation during the reporting period. The data quality is dependent on
the data availability in Workday. Due to local laws and regulations, currently the
registration of collective agreements in Workday is not a global mandatory field. In
2024, Wallenius Wilhelmsen did not have more than 10 percent of its workforce
employed in countries in the EEA.
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S1-9 Diversity metrics
Diversity metrics 2024 2023 2022
Age distribution in workforce (headcount)
< 30 years old 1,678 - -
30-50 years old 4,768 - -
> 50 years old 2,180 - -
Top management gender distribution (headcount)
Female 4 4 2
Male 6 4 5
Other 0 0 0
Not reported 0 0 0
Top management gender distribution (%)
Female 40 50 30
Male 60 50 70
Other 0 0 0
Not reported 0 0 0
Methodology and assumptions
Top management is defined as the executive management team as of 31
December. For the reporting on age distribution among employees, we have
included all employees registered in Workday as of Dec 31 2024.
S1-14 Health and safety metrics
Health and safety measures 2024 2023 2022
% of own workforce covered by company`s health and safety management
systems
Shipping 100 - -
Logistics 100 - -
Corporate 100 - -
Work-related accidents (excl. fatalities)
Shipping 7 - -
Logistics 196 - -
Corporate - - -
Rate of work-related accidents
Shipping 0.41 - -
Logistics 12.19 - -
Corporate - - -
Fatalities as a result of injuries
Shipping 1 0 0
Logistics 0 0 0
Corporate 0 0 0
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Wallenius Wilhelmsen – Annual Report 2024 116
Methodology and assumptions
Shipping:
The definitions applied for health & safety metrics for shipping are per the
definitions of the marine injury reporting guidelines published by Oil Companies
International Marine Forum (OCIMF). To read more about how LTIF is calculated,
please see section S1-5.
The following definitions have been applied for health & safety reporting for
shipping:
Incident : This is an uncontrolled or unplanned event, or sequence of events, that
results in a fatality or injury to a seafarer onboard ship or whilst ashore on
company business.
Lost Workday Case : This is an injury which results in an individual being unable to
carry out any of his duties or to return to work on a scheduled work shift on the day
following the injury unless caused by delays in getting medical treatment ashore.
An injury is classified as an lost workday case if the individual is discharged from
the ship for medical treatment
Fatality: A death directly resulting from a work injury regardless of the length of
time between the injury and death. Fatalities are included in the Lost Time Injury
count.
Exposure Hours: 24 hours per day while serving on board.
Lost Time Injuries: Lost Time Injuries are the sum of Fatalities, Permanent Total
Disabilities, Permanent Partial Disabilities and Lost Workday Cases.
Lost Time Injury Frequency (LTIF): This is the number of Lost Time Injuries per unit
exposure hours. The most common unit in respect of LTIF is one million man hours.
All seafarers in the pool are covered by health & safety management systems
when onboard vessels.
Limitations:
Wallenius Wilhelmsen does not manage the health & data itself, the data being
provided by each ship management company. Under normal circumstances we do
not carry out audits to verify the data. Exposure hours are based on actual work
hours onboard including free time when crew members are onboard. However if
this data is not available, the hours are estimated using number of crew onboard
and days in operation. In the case of ARC, turnover days are not included. In
contrast, turnover days are added to the exposure hours of WSM and WM.
Logistics:
To read more about how LTIF is calculated, please see section S1-5. For production
workers, direct hours are measured using time monitoring systems. For office
workers who are located at logistics sites, estimates of indirect hours are used to
calculate LTIF. Indirect hours are estimated using the following formula;
(# Indirect employees) x (21.67 days / month) x (8hrs / day)
Limitations:
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Please see Risk Management and Internal Control to read about limitations with
health & safety reporting for logistics.
Corporate Offices:
For office workers, we do not report days lost or injuries. For office workers, the
total hours worked per year are estimated using 40 hour work weeks, with 48
work-weeks in a year to take into account holidays which are subject to local laws
and regulations.
We currently do not collect data on ill-health however we will start to assess how
we can measure this.
S1-10 Adequate wage & S1-16 Remuneration metrics
All employees are paid an adequate wage, in line with applicable benchmarks. The
company utilizes Hay Job Evaluation methodology for office workers and has
established a job architecture to determine the job size across the organization.
The objective method ensures fair and equitable comparisons both within the
company and with external benchmarks. For production workers, we do not
implement a hierarchical job structure. However, we maintain local systems and
structures to ensure market alignment. Additionally, we offer competitive benefits
to enhance the overall total remuneration package.
Remuneration ratio and gender pay gap 2024
Global gender pay gap (%) (male:female) -4.96
Annual total compensation of the highest paid individual (USD) 743,000
Median annual total compensation for all employees (USD)* 36,200
Remuneration ratio (high to median) (%) 2,052.49
To calculate the gender pay gap and remuneration ratio, we initially converted
salaries to USD to calculate the overall base pay average between all female to
male office and production workers. To calculate the global gender pay gap, the
annual working hours data was estimated using external sources. The gender pay
gap identified that on average women earn 4.96 percent more than males, the
main driver being the production workers. Males have approximately 75 percent
production workers whereas females have approximately 50 percent production
workers, thus brining the male average down due to this weighting. A limitation of
the methodology includes comparing pay without considering the complexity,
responsibilities and skills required for the different jobs which can lead to
incorrect and misleading comparisons. For internal use, we use Hay Job
Evaluation methodology which is a systematic process for assessing the relative
value of different jobs within an organization.
We do not have a standardized method of calculating total compensation yet,
however are currently looking how to calculate this. The measure between highest
paid and median paid is thus for annual base salary in USD.
S1-17 Incidents, complaints and severe human rights impacts
We have a complete overview of number of cases reported through the Alert Line.
Of the complaints filed through the channels for own workers to raise concerns,
we have received in total of 62 reported cases. At end of 2024, 39 cases is related
to the category “bullying, harassment and discrimination”, with some cases still
under investigation.
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Work-related incidents and complaints 2024 2023 2022
Incidents of discrimination incl. harassment
Number of incidents 0 - -
Number of incidents for Ship Management 0 - -
Complaints filed through channels for own
workforce
Number of complaints 62 32 85
Number of complaints for Ship Management 0 - -
Severe human rights incidents
Number of severe human rights incidents 0 0 0
Number of severe human rights incidents for Ship
Management 0 - -
Fines, penalties and compensation for damages from
incidents and complaints (USD) 0 - -
Should Wallenius Wilhelmsen, through its actions, directly cause or contribute to
harmful human rights impacts, we will seek to promote access to and/or provide
fair remediation. Our group-wide whistleblowing channel, the AlertLine, includes
concerns relating to human rights and is managed by an independent third party
to ensure confidentiality and protection of stakeholders. We have also established
a dedicated communication channel for information requests as required by the
Norwegian Transparency Act. We did not receive any queries in 2024. There is a
risk of underreporting as employees may have a fear of retaliation. During 2024 we
have increased training and raised awareness of the Alert Line to encourage
employees to report any potential breaches.
For seafarers, both Wilhelmsen Ship Management and Wallenius Marine have
official grievance mechanism, including their own whistleblowing systems. All
received cases are registered in the whistleblowing systems. Cases are further
investigated and remediating actions will be taken if the allegations are
substantiated. There is a risk of underreporting of cases from our ship managers
onboard of our vessels. We are in 2025 planning on working to further dialogue
with our ship managers on how to raise awareness of grievance mechanisms,
including our own.
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Workers in the value chain
Why is it important?
A sustainable supply chain is essential to satisfy our customers’ needs, while
minimizing our own sustainability risk exposure and ensuring compliance with
new legal requirements and social expectations.
As a large global company with a majority of our workforce in production roles, as
well as a consumer of ships and other transportation and logistics equipment
often built and recycled in developing communities, our operations and policies
can have a significant impact on the human rights and working conditions of
many people. Our supply chain is large and complex, with several layers of
suppliers and sub-suppliers. These suppliers provide us with a broad range of
services and products. In addition to ship managers who are contracted to
manage our vessels, our key suppliers include energy providers; shipyards for
building, repairing and recycling vessels; manufacturers and sellers of equipment
we use at terminals and processing centers; stevedores and labor at our terminals
and processing centers; and providers of IT products and services. We recognize
that our activities may influence and impact the human and labor rights of our
stakeholders.
Impact, risk and opportunities
We take our responsibility to identify, prevent and address the mistreatment of
workers in our value chain seriously. The most significant impacts and risks for
workers in our value chain relate to exploitative work environments at shipyards
for new builds, dry-docking and recycling; and on our vessels, there is a
significant risk of human rights violation by suppliers. See table, IROs in our Value
Chain.
How do we work
S2-1 Policies related to value chain workers
Wallenius Wilhelmsen’s commitment to human rights is specified in our human
rights policy and reflected in our supplier code of conduct, both updated in 2024.
Our commitment to respect human rights requires that Wallenius Wilhelmsen:
• Avoid causing or contributing to adverse human rights impacts through our
own activities, and prevent or address such impacts when they occur; and
• Seek to prevent or mitigate adverse human rights impacts that are directly
linked to our operations and services or connected to our business
relationships.
These commitments extend across our supply chain, and we communicate these
expectations to our suppliers, subcontractors, and business partners through our
procurement policy and Supplier Code of Conduct. Our procurement policy and
supplier code of conduct acknowledge the UN Universal Declaration of Human
Rights and the ILO Declaration on Fundamental Principles and Rights at Work, and
our due diligence process is aligned with the UN Guiding Principles on Business
and Human Rights and the OECD Guideline for Multinational Enterprises and the
Norwegian Transparency Act.
Our supplier code of conduct requires that our suppliers shall not engage in nor
tolerate any form of modern slavery including forced or compulsory labor or
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human trafficking. They may not use any exploitative, unsafe or discriminating
working conditions and practices, nor children under the legal working age.
Our impacts on workers in our value chain include safety risks on vessels, terminal
operations, and at new build yards and recycling yards. There is also a risk of
exploitative working conditions and violations of human rights at these same
locations in our value chain. Please see table, IROs in Our Value Chain for
corresponding risks and opportunities arising from these impacts on our value
chain workers.
Wallenius Wilhelmsen is committed to providing ways for affected individuals to
come forward with human rights grievances. The human rights policy and our
supplier code of conduct are publicly available on our webpage, and stakeholders
may request information and raise concerns through the company’s Alert Line. If
Wallenius Wilhelmsen through its actions directly causes or contributes to harmful
human rights impacts, the company will promote access to and/or provide fair
remediation. The policy is based on and implemented through our human rights
due diligence process and procedures. The policy and related relevant documents
like our Supplier Code of Conduct are all guided by relevant regulatory frameworks
including the Norwegian Transparency Act, the OECD Guidelines for Multinational
Enterprises, and the United Nations Global Compact and Guiding Principles on
Business and Human Rights. The CFO is the most senior-level executive
accountable for the procurement policy and supplier code of conduct and the CPO
is accountable for the human rights policy.
S2-2 Process for engaging with value chain workers about impacts
To consider the perspectives of value chain workers and to understand our impact
on them, we conduct desktop research and seek insight from internal and
external experts NGOs. We also had direct conversations with employees and
contractors during an ESG audit of the new build shipyard. This was important as
workers on shipyards are identified as vulnerable to impacts. Also, our employee
relations and HR teams engage with agent workers and labor unions. However, we
do not have a systematic engagement approach and have not yet started
assessing the effectiveness of this engagement with value chain workers.
S2-3 Process to remediate negative impacts and channels for value chain workers
to raise concerns
We have a whistleblowing channel, the Alert Line, in place for stakeholders,
including value chain workers, to raise concerns. Please refer to section G1-1 and
S1-3 for description of our whistleblowing system. We also have a dedicated
channel for information requests relating to the Norwegian Transparency Act.
We have not identified any cases of non-respect of the internationally recognized
instruments our upstream and downstream chain in 2024. We have neither
received any cases relating to severe human rights issues or incidents to our Alert
Line, nor any inquiries to the information channel required by the Norwegian
Transparency Act.
Whilst we inform about the Alert Line in our supplier code of conduct, we do not
assess how well the workers are aware of this system. We do, however, have
examples where we have received reports from value chain workers.
When a grievance is received, we conduct due diligence to collect facts about the
case, determine whether the grievance has merit and clarify if we or our suppliers
are involved. Where merit is established, we will seek to remedy adverse impacts
where possible. Our grievance mechanism and position on remediation will be
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reviewed on a regular basis to ensure continued relevance and to drive
continuous improvement.
How did we perform?
S2-4 Taking action on material impacts on value chain workers, and approaches to
mitigating material risks and pursuing material opportunities related to value chain
workers, and effectiveness of those actions
In our human rights due diligence assessment, we analyze our actual and
potential risks and impacts from our activities upon people. The process is based
upon the OECD Guidelines for Multinational Enterprises and UN Guiding Principles
on Business and Human Rights and updated annually.
An annual human rights due diligence assessment is conducted by a dedicated
task force led by the CSO and with members from human resources, legal,
compliance, safety, risk, emergency & security, procurement, and operations in
key geographies. The members of the task force represent our own workforce and
convey risks and actions that may impact them. The assessment involves a
desktop analysis of regulatory updates, NGO publications and media cases, and
external expert advice to consider the perspectives of value chain workers. In
workshops with the task force, human rights risks are assessed across our value
chain to determine which specific rights are most relevant, followed by a mapping
of existing mitigating actions. For the relevant risks, scenarios are developed,
likelihood and impact determined and assessed to prioritize key risks and
mitigating actions.
An overview of the key scenarios relating to workers in the value chain that were
identified in 2024 and actions taken to mitigate them is provided below:
Human rights breaches in our supply chain
We are strengthening our supplier management and human rights issues have
been included in our procedure for business partner integrity due diligence for
onboarding new suppliers. This involves an adverse media check which covers
human and labor rights and environmental issues. We are also implementing a
supplier assessment questionnaire for key suppliers with operations in high-risk
countries. The results will be provided in a dashboard of all suppliers which we
create. This enables us to have a live overview of our largest high-risk suppliers. In
2024, we have performed integrity due diligence on all our tonnage providers and
we also worked to include ESG clauses in our contracts with time charter vessels
which are outside of our fleet management control. We will also continue to further
operationalize human rights in the procurement process and supplier monitoring.
These initiatives will enable us to identify high risk suppliers that we can follow.
Human and labor rights being breached at the shipyards we use
During the year we continued to focus on shipyards, since new vessels are our
biggest investments and human and labor rights risk have been associated with
the ship building industry. When ordering several new vessels during the year, we
conducted sustainability due diligence during the selection process in 2023. The
audits covered human and labor rights were conducted by an external expert.
During 2024, the findings were included in the contractual agreement and a
monitoring plan agreed with the shipbuilding yard. The monitoring plan will be
followed up during the building period. The outcome is to ensure safer working
conditions and respect for human and labor rights at a key supplier. We did not
recycle any vessels in 2024.
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Stowaways on vessels
Human traffickers and smugglers can be behind stowaways onboard our vessels
and stowaways are at risk of becoming victims of modern slavery upon arrival. We
experienced four stowaways in 2024. When stowaways are found on a vessel after
leaving the port of departure, guidelines are in place as prescribed by IMO in
Resolution 13 (42): FAL Convention and strictly followed. P&I clubs are consulted to
ensure the safety of stowaways when considering potential ports for
disembarkation. We also cooperate closely with port and terminals to prevent this
illegal activity. Mitigating actions at high-risk areas are ongoing and include
clearly visible crew, ID checks, security guards at the entry points of the vessels,
CCTV-systems, manual cargo inspections and thermal screening cameras.
Migrants in distress picked up at sea
We did not encounter any migrants in distress at sea during 2024. However, it
remains a top risk scenario for us, and we recognize our duty pursuant to
international law for ships to (attempt to) rescue persons in danger at sea. Should
migrants in distress be picked up at sea, we follow practices as per IMO, including
the 1982 UN Convention on the Law of the Sea and the 1974 International
Convention for the Safety of Life at Sea, and advise from local coast guards.
At Wallenius Wilhelmsen, human rights due diligence is an ongoing process, and
we continuously improve our approach and report publicly on our performance.
We take a systematic approach, integrating human and labor rights
considerations into key company activities and processes, e.g. in company risk
management processes, and procurement and supply chain management.
To raise workforce awareness of the importance of respecting human and labor
rights, we updated our human rights training module, and relaunched on UN
Human Rights Day as required training for all IT enabled employees. The CSO also
updated the legal department, management and the Board of Directors on our
human rights work.
Whilst no significant financial resources have been allocated, we have dedicated
some employees’ time to integrating human rights into existing processes. We
also have dedicated employees from different geographies and functions (such as
compliance, legal, HR and marine operations) to the company’s Human Rights
Task Force to implement our human rights due diligence. The company is a
member of WISTA and the Ship Recycling Transparency Initiative to increase our
access to different industry insights while contributing to industry awareness of
human and labor rights.
How we will proceed
S2-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
Going forward, we will develop and strengthen our work on human and labor rights
amongst workers in our value chain by:
• Continuing to raise awareness of the group’s human rights policy and
implement it in all parts of our company and towards suppliers.
• Continuing to expand our stakeholder engagement to a wider group of
internal stakeholders and consult external stakeholders such as NGOs or
industry network.
• Further strengthen our assessment and monitoring of risks in our supply
chain by conducting integrity due diligence on all our high-risk suppliers. We
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will also continue to further operationalize human rights in the procurement
process and supplier monitoring.
• We will consider developing specific targets as we gain more insight into our
supply chain and explore how to track effectiveness of policies and actions.
Governance
Business Conduct
Why is it important?
Wallenius Wilhelmsen adheres to good corporate governance standards. This is
critical to realizing our strategy to deliver long-term prosperity for our
stakeholders. In Wallenius Wilhelmsen, we Care, we Challenge and we Commit.
We strive to build a culture that embraces development and creates trust – a
culture where every employee can realize their full potential. Making good
decisions and ethical choices in our work creates trust in not only each other, but
also our customers and partners, and society at large.
How do we work?
G1-1 Business conduct policies and corporate culture
The cornerstone of our governance framework is the board-approved Code of
Conduct. This sets out ethical guidelines for how we conduct our business. The
Code, which was updated in 2024, applies to all employees and others working for
and on behalf of Wallenius Wilhelmsen. The Code of Conduct provides guidance
on how we execute our business practices and how we conduct ourselves, it lays
out what are acceptable standards when delivering value to each other, our
customers and the society around us whilst considering our environment. The
Code of Conduct complements local laws, cultures, and practices in the countries
we operate. The Code addresses which key expectations we have of all of us as
employees and of our Company. It includes our responsibility to conduct business
transparently, comply with anti-corruption regulation, export controls and
sanctions laws, and protect personal data. It reflects our dedication to the
environment, health and safety, and human rights.
Our Code of Conduct sets out ethical guidelines for how we conduct our business.
It affirms our commitment to preventing the occurrence of bribery in all activities
under our effective control. Our Anti-Corruption and Anti-Bribery Policy are
consistent with the United Nations convention against corruption and sets out our
commitment and all employees' responsibilities in ensuring that no attempt of
bribery or corruption takes place. We also have a procedure for gifts and
hospitality which defines what we regard as permissible.
Corruption takes many forms, all with the aim to obtain or give illegal benefits. Due
to the nature of our business, we are particularly exposed to corruption in our
dealings with public officials, customers, and through high-risk partners such as
agents and intermediaries representing us towards third parties.
Our Code of Conduct also sets forth and regulates areas such as anti-money
laundering, fair competition, tax evasion and conflict of interest.
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Wallenius Wilhelmsen has a group-wide Alert line, which is a global whistleblowing
system where stakeholders can submit concerns about potential non-
compliance, e.g. bribery, corruption, theft, sanctions, anti-trust, fraud, bullying
and harassment, modern slavery and other human rights breaches as well as
other breaches to the Company’s business standards. The whistleblowing channel
is hosted by an independent third party and employees can report with due
process related to confidentiality and anonymity and as per regulations in relevant
jurisdictions. The procedures strengthen transparency and ensure that the
business standards are applied the way they are intended. They also ensure that
the group has a professional way of handling potential breaches of laws and
regulations, self-imposed business standards or other serious irregularities. All
reports submitted via the whistleblower system are investigated promptly and
objectively. When a report is received, we conduct due diligence to collect facts
about the case, determine whether the allegations have merit and clarify if we or
our suppliers are involved. Where merit is established, we will seek to remedy
adverse impacts where possible.
Our whistleblowing policy is applicable to all employees of all companies within
Wallenius Wilhelmsen, as well as external third parties that may be in contact with
our group, such as job applicants, former employees, consultants, or other
business partners. The policy defines those concerns raised in good faith and in
line with good principles related to this, shall not be met with retaliatory actions.
Training and awareness are essential for fostering a culture of integrity and
creating a common understanding of what is expected from our employees. Code
of Conduct, whistleblowing and other compliance training sessions are mandatory
for all new employees as part of their onboarding process, as well as continuously
throughout the employment period. In 2024, we rolled out updated mandatory e-
learning training for all IT-enabled employees, to refresh their knowledge on
different topics in the Code of Conduct. The Code of Conduct training has also
been made available to the Board and several members have completed the
training. We have also run different refresher trainings on a risk-based approach
for different teams within the company, e.g. ethical dilemma training for
managers.
We recognize that embedding a strong ethical culture means setting the tone
from the top. The Board of Directors is responsible for approving the Code of
Conduct. The Chief Ethics and Compliance Officer is responsible for monitoring
implementation of the Code of Conduct, which is reviewed annually and updated
in line with legislative changes. It is mandatory for all employees to familiarize
themselves with the Code of Conduct and acknowledge this in our HR system. We
expect that all of our leaders demonstrate commitment to the Code and our ethical
standards. As a leader, they must ensure that activities within their area of
responsibility are carried out in accordance with the Code of Conduct, our values,
group policies, other governing documents, and applicable laws. The Board and
Audit Committee ("BAC") is responsible for overseeing compliance. The
Compliance function provides minimum quarterly status updates to BAC and
annually to Board of Directors.
G1-2 Management or relationships with suppliers
We believe in cultivating strong and transparent relationships with our suppliers,
emphasizing pro-active and continuous improvement efforts on their part, and a
high level of transparency to manage risk. Our suppliers are trusted, long-term
partners, who help us deliver innovative solutions and services to our customers.
Wallenius Wilhelmsen does not have a policy to prevent late payment specifically
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to SMEs, the Procurement Policy guides our procurement activities. This policy is
also the basis of our Supplier Code of Conduct, which states expectations and
policy objectives to suppliers and subcontractors.
Due diligence is a mandatory and essential part of the sustainable procurement
approach, and supplier contract templates also reference our Supplier Code of
Conduct. The procurement policy is built upon a series of principles that set our
ambition for a more sustainable supply chain:
• A unified approach: We are establishing a common framework for
purchasing that enhances transparency and ensures efficiency throughout
all Wallenius Wilhelmsen entities.
• Empowering our people: Each individual involved in procurement will master
the new policy to align collective efforts.
• Comprehensive coverage: The policy extends to all procurement activities
exceeding USD 50,000.
• Supplier Code of Conduct and sustainability integration: Suppliers are
expected to comply with our Supplier Code of Conduct and sustainability
requirements, mirroring our commitment to responsible practices.
• Streamlined procedures: Documented procurement procedures will be
mandatory in every office, branch and site to ensure uniformity.
• Rigorous supplier assessment: A detailed risk assessment, which includes
ESG risk, is compulsory before we engage with any supplier.
Our procurement policy confirms that Wallenius Wilhelmsen is dedicated to
mitigating Environmental, Social, and Governance (ESG) risks across its supply
chain while fostering sustainable development. The organization requires
purchasers to identify and address these risks collaboratively with relevant
suppliers. Priority should be granted to suppliers who can demonstrate their
commitment to sustainable practices, ethical conduct, and minimized adverse
environmental effects across their operations and supply chains. All suppliers
must align with the ESG standards defined in our Supplier Code of Conduct as a
minimum. This approach not only mitigates risks but also advances economic,
environmental, and social progress, furthering the company’s pursuit of
sustainable development within its operations.
G1-3 Prevention and detection of corruption and bribery
Wallenius Wilhelmsen is committed to preventing the occurrence of bribery
wherever we have effective control. This is outlined in our Code of Conduct and
supported by our anti-bribery and corruption policy, and a gifts & hospitality
procedure. We ask all employees, contractors and suppliers to raise any concerns
regarding bribery or corruption through our independent whistleblowing system.
Concerns submitted through the system are assessed by a third-party company to
determine whether they come under the scope of the whistleblowing policy.
The Compliance function shall assess who is to be involved in the further
processing of a case and of the measures to be implemented, depending on the
type and nature of the case. If an incident is classified as high or medium risk, the
matter shall be referred to Chief Ethics and Compliance Officer (CECO) who will
review the matter and determine the need for and the potential scope of an
investigation. If CECO decides that an investigation is warranted, CECO shall make
a request for mandate to the Compliance Committee for high-risk incidents. CECO
together with HR, where relevant, shall make a request for mandate to the relevant
business or staff area manager for medium risk incidents.
Contents »
Wallenius Wilhelmsen – Annual Report 2024 126
The Compliance function report each quarter to Board Audit Committee (BAC). The
Committee receives reports on cases raised through the whistleblowing system
including cases related to bribery, corruption or other breaches of our Code of
Conduct or policies. We periodically carry out in-person workshop-based bribery
and corruption training for office workers, executive management and Board
members, to reflect the different roles and responsibilities at these levels.
Wallenius Wilhelmsen is a member of the Maritime Anti-Corruption Network
(MACN). MACN is a global business network which works to combat corruption
within the global maritime industry, enabling fair trade. There are over 220
companies globally which are members of MACN.
G1-5 Political influence and lobbying activities
Advocacy, political engagement and donations is specifically addressed in our
Code of Conduct: We will make Wallenius Wilhelmsen’s position known on
important industry matters through proactive engagement with international
institutions, government policy makers and other stakeholders, such as the media
and civil society. However, we will not use company funds to make gifts, donations
or otherwise support political parties or political candidates. We may nevertheless
be members of representative organizations relevant to our industry that advocate
for certain policy positions. Any hiring of lobbyists will be in accordance with
applicable law and subject to full disclosure to any external party they wish to
influence that the lobbyist represents Wallenius Wilhelmsen. We believe in being
transparent in our advocacy efforts and that what it advocates for is consistent
with its publicly stated objectives. All those who work for, or otherwise represent
Wallenius Wilhelmsen, are free to participate in democratic political activities, but
this must be without reference to or connection with their relationship to Wallenius
Wilhelmsen.
Our Code of Conduct highlights:
• Do not use company funds or resources to support any political candidates
or political parties.
• Never use your position in Wallenius Wilhelmsen to try to influence any
person, group or entity to make political contributions.
• Ensure that all contracts with lobbyists impose an obligation to disclose to
any external party they wish to influence that the lobbyist represents
Wallenius Wilhelmsen.
The company is not registered in the EU Transparency Register or an equivalent
transparency register in a Member State. None of the members of the Board or
executive management team has held any positions in public administration in the
preceding two years.
G1-6 Payment Practices
We are committed to being a responsible partner for our suppliers. our payment
practice is standardized in our procurement policy and we aim to pay all suppliers
according to contract terms, with the majority of payment terms being less than 45
days and according to contract terms. Performance data regarding payment
practices is currently not available.
Contents »
Wallenius Wilhelmsen – Annual Report 2024 127
How did we perform?
G1-3 Prevention and detection of corruption and bribery
In 2024, we updated our anti-corruption and gifts & hospitality e-learning training.
The modules sets out behavior expectations, examples of business situations
which could present a bribery or corruption risk and includes tests employees can
apply to different scenarios. The topics covered includes definition of corruption,
policies and procedures on suspicion and detection. This is available to IT-enabled
employees via our online training platform. Both current and new employees are
required to perform the training. Functions at risk includes all IT-enabled
employees. Anti-corruption and anti-bribery training is required for functions at
risk on an annual basis.
Functions-at-risk training programs 2024
Employees in functions-at-risk during the reporting period 3,335
Employees in functions-at-risk that have received training 2,473
% Covered by Training Programmes 74
G1-4 Incidents of corruption or bribery
We have an overview of the number of cases reported through the Alert Line. For
seafarers, both ship managers have official grievance mechanism, including their
own whistleblowing systems. All received cases are registered in the
whistleblowing system.
Incidents of corruption 2024
Convictions for violation of anti-corruption and anti-bribery laws 0
Amount of fines for violation of anti-corruption and anti-bribery laws (USD) 0
We have not received any convictions or fines for violation of anti-corruption or
anti-bribery laws during the year, nor are we subject to any legal action relating to
corruption and bribery. For employees, there is a risk of underreporting as there
are cases which may be handled by local HR or line managers and are not
reported to the Alert Line. Additionally, employees may fear retaliation when
raising concerns.
There is also a risk of underreporting of cases among seafarers to our ship
managers' alert lines. In 2025, we plan to further our dialogue with ship managers
how to raise awareness of the grievance mechanisms, including our own Alert
Line.
To read about how reports received through the Alert Line are handled, please see
(G-1).
How we will proceed?
In 2025, we plan to continue strengthening our compliance program and also raise
knowledge and awareness of our compliance program through trainings.
Contents »
Wallenius Wilhelmsen – Annual Report 2024 128
ESRS Index
ESRS 2 - General Disclosures
BP-1 General basis for preparation of the sustainability statement General 38
BP-2 Disclosures in relation to specific circumstances General 38
GOV-1 The role of the administrative, management and supervisory bodies General 52-54
GOV-1 Characteristics of the supervisory board and management members General 52-54
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies
General 54-55
GOV-3 Integration of sustainability-related performance in incentive schemes General 56-57
GOV-4 Statement on sustainability due diligence General 57
GOV-5 Risk management and internal controls over sustainability reporting General 58-59
SBM-1 Strategy, business model and value chain General 40-42
SBM-2 Interests and views of stakeholders General 43-44
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model General 45-47
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities General 48-51
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement Sustainability notes 130
IRO-2 Data points that derive from other EU legislation Sustainability notes 132
E1 - Climate Change
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Climate change 62
GOV-3 Integration of sustainability-related performance in incentive schemes Climate change 56-57
IRO-1 Description of the process to identify and assess material impacts, risks and opportunities Climate change 62-64
E1-1 Transition plan for climate change mitigation Climate change 67-73
E1-2 Policies related to climate change mitigation and adaptation Climate change 72-73
E1-3 Actions and resources in relation to climate change policies Climate change 67-75
E1-4 Targets related to climate change mitigation and adaptation Climate change 65-68
E1-5 Energy consumption and mix (top level) Climate change 78-79
E1-5 Energy consumption and mix (lower level) Climate change 78-79
E1-6 Gross Scopes 1, 2 and Total GHG emissions (shipping) Climate change 78-79
E1-6 Gross Scopes 1, 2, and Total GHG emissions (logistics) Climate change 78-79
E1-6 Gross Scope 3 and Total GHG emissions and GHG Intensity based on net revenue (corporate) Climate change 78-79
E1-7 GHG removals and GHG mitigation projects financed through carbon credits Climate change 78-79
E1-8 Internal carbon pricing Climate change 76-77
E2 - Pollution
IRO-1 Description of the process to identify and assess material impacts, risks and opportunities Pollution 89
E2-1 Policies related to pollution Pollution 89
E2-2 Actions and resources related to pollution (shipping) Pollution 90
E2-2 Actions and resources related to pollution (logistics) Pollution 90
E2-3 Targets related to pollution Pollution Not available
E2-4 Pollution of air, water and soil (Pollution of air - shipping) Pollution 91
E2-4 Pollution of air, water and soil (Pollution of water - shipping) Pollution 91
E2-5 Substances of concern and substances of very high concern (Substances of concern - shipping) Pollution 91-92
E2-5 Substances of concern and substances of very high concern (Substances of very high concern -
shipping)
Pollution 91-92
E4 - Biodiversity and ecosystems
IRO-1 Description of the process to identify and assess material impacts, risks and opportunities Biodiversity 93-97
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Biodiversity 93-97
E4-1 Transition plan on biodiversity and ecosystems Biodiversity 97-99
E4-2 Policies related to biodiversity and ecosystems Biodiversity 97-99
E4-3 Actions and resources related to biodiversity and ecosystems (Shipping) Biodiversity 99-100
E4-3 Actions and resources related to biodiversity and ecosystems (logistics) Biodiversity 99-100
E4-4 Targets related to biodiversity and ecosystems (shipping) Biodiversity Not available
E4-4 Targets related to biodiversity and ecosystems (logistics) Biodiversity Not available
E4-5 Impact metrics related to biodiversity and ecosystems change (shipping) Biodiversity Not available
E4-5 Impact metrics related to biodiversity and ecosystems change (logistics) Biodiversity Not available
S1 - Own workforce
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Safe and secure
operations
102
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Working conditions and
human rights
102
Standard Section Page No.
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Wallenius Wilhelmsen – Annual Report 2024 130
S1-1 Policies related to own workforce (Health & Safety) Safe and secure
operations
103
S1-1 Policies related to own workforce (Diversity, equal opportunities & inclusion) Diversity, equal
opportunities &
Inclusion
104
S1-1 Policies related to own workforce (Working conditions and human rights) Working conditions and
human rights
103
S1-2 Processes for engaging with own workers and workers’ representatives about impacts (Health &
Safety)
Safe and secure
operations
105-106
S1-2 Processes for engaging with own workers and workers’ representatives about impacts (Diversity,
Equal Opportunities & Inclusion)
Diversity, equal
opportunities &
Inclusion
105-106
S1-2 Processes for engaging with own workers and workers’ representatives about impacts (Working
conditions and human rights)
Working conditions and
human rights
105-106
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns Working conditions and
human rights
107
S1-4 Actions and resources related to own workforce (Health & Safety) Safe and secure
operations
107-112
S1-4 Actions and resources related to own workforce (Diversity, Equal Opportunities & Inclusion) Diversity, equal
opportunities &
Inclusion
107-113
S1-4 Actions and resources related to own workforce (Working conditions and human rights) Working conditions and
human rights
107-112
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities (Health & Safety)
Safe and secure
operations
110
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities (Diversity, Equal Opportunities & Inclusion)
Diversity, equal
opportunities &
Inclusion
111
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities (Working conditions and human rights)
Working conditions and
human rights
111
S1-6 Characteristics of the company's employees Safe and secure
operations
114
S1-7 Characteristics of non-employee workers in the company's own workforce Safe and secure
operations
115
S1-7 Characteristics of non-employee workers in the company's own workforce (seafarers) Safe and secure
operations
115
S1-8 Collective bargaining coverage and social dialogue Safe and secure
operations
115
S1-9 Diversity metrics Diversity, equal
opportunities &
Inclusion
116
S1-10 Adequate wages Working conditions and
human rights
118
S1-14 Health and safety indicators (shipping) Safe and secure
operations
116
S1-14 Health and safety indicators (logistics) Safe and secure
operations
116
S1-14 Health and safety indicators (corporate) Safe and secure
operations
116
S1-16 Remuneration metrics (Pay gap) Working conditions and
human rights
118
S1-16 Remuneration metrics (Remuneration ratio) Working conditions and
human rights
118
S1-17 Incidents, complaints and severe human rights impacts and incidents Working conditions and
human rights
118-119
S2 - Workers in the value chain
S2-1 Policies related to value chain workers Workers in the value
chain
120
S2-2 Processes for engaging with value chain workers about impacts Workers in the value
chain
121
S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns Workers in the value
chain
121
S2-4 Actions and resources related to value chain workers Workers in the value
chain
122-123
S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
Workers in the value
chain
123-124
G1 - Business conduct
G1-1 Business conduct policies and corporate culture Corporate culture and
governance
124
G1-2 Management of relationships with suppliers Corporate culture and
governance
125-126
G1-3 Prevention and detection of corruption or bribery Corporate culture and
governance
126-128
G1-4 Confirmed incidents of corruption or bribery Corporate culture and
governance
128
G1-5 Political influence and lobbying activities Corporate culture and
governance
127
Standard Section Page No.
Contents »
Wallenius Wilhelmsen – Annual Report 2024 131
Data points from other EU legislation
General disclosures
GOV-1-21(d)
Board’s gender diversity ratio x Yes 53
GOV-1-21(e)
Percentage of independent Board members x Yes 53-56
GOV-4-30
Statement on due diligence x Yes 58
SBM-1-40(d)-i
Activity in fossil fuel sector x Yes 42
SBM-1-40(d)-ii-iv
Activity in chemical, controversial weapons
and/or tobacco industry
x No 42
Climate change
E1-1-14
Transition plan for climate change mitigation x Yes 67-73
E1-2-16(f)
Exclusion from EU Paris-aligned Benchmarks x x No 65-66
E1-4-34(a-b)
Emission reduction targets x x x Yes 78-79
E1-5-37(a)(c)
Energy consumption from fossil and renewable sources x Yes 78-79
E1-5-37(b)
Energy consumption from nuclear sources x No 78-79
E1-5-38(a)(b)
Fuel consumption from coal and coal products and from
crude oil and petroleum products
x No 78-79
E1-5-38(c)(d)
Fuel consumption from natural gas and other fuel
sources
x Yes 78-79
E1-5-38(e)
Consumption of purchased or acquired electricity, heat,
steam or cooling from fossil sources
x Yes 78-79
E1-5-40-43
Energy consumption and intensity from activities in high-
climate-impact sectors
x Yes 78-79
E1-6-48-52
Scope 1, 2, 3 and Total GHG emissions x x x Yes 78-79
E1-6-53, E1-6-55
GHG emission intensity x x x Yes 78-79
E1-7-56
GHG removals and carbon credits x Yes 78-79
E1-9-66
Assets at material financial risk x Phased in
Not
applicable
E1-9-67(c)
Carrying amount of real estate assets by energy
efficiency classes
x No
Not
applicable
E1-9-69
Financial opportunities (cost savings, market size and
changes to net revenue) from climate change actions
x Phased in
Not
applicable
Pollution
E2-4-28(a)
Emissions to air, water and soil x Yes 91
Biodiversity and ecosystems
SBM-3
Activities in biodiversity-sensitive areas, impacts related
to land degradation, desertification and soil sealing, and
x Yes 93-97
E4-2-24(b)
Sustainable land / agriculture practices or policies x No 97-99
E4-2-24(c)
Sustainable oceans / seas practices or policies x Yes 97-99
E4-2-24(d)
Policies to address deforestation x No
Not
applicable
Own workforce
SBM-3-11(b)
Geographies or commodities with risk of forced labour x Yes 102-103
SBM-3-11(c)
Geographies or commodities with risk of child labour x Yes 102-103
S1-1-20(a)
General approach to human rights x Yes 103-104
S1-1-20(b)
General approach to engagement with own workforce x Yes 105
S1-1-20(c),
S1-1-32(c)
Approach and availability of grievance and remedy in
regards to own workforce
x Yes 107
S1-1-21
Policies are aligned with internationally recognised
instruments
x Yes 103-105
S1-1-22
Policies addressing human trafficking, forced labour
and child labour
x Yes 103-105
S1-1-23
Policies on accident prevention x Yes 103-105
S1-16-97(a)(b)
Gender pay gap, annual total remuneration x x Yes 118
S1-17-103(a)
Incidents of discrimination x Yes 119
S1-17-104(a)
Severe human rights issues and incidents x x Yes 119
Workers in the value chain
ESRS Information SFDR Pillar 3
Benchmark
Regulation
EU Climate
Law Materiality Page No.
Contents »
Wallenius Wilhelmsen – Annual Report 2024 132
SBM-3-11(b)
Geographies or commodities with risk of forced labour x Yes 48
SBM-3-11(b)
Geographies or commodities with risk of child labour x Yes 48
S2-1-17(a), S2-1-19
Human rights policy commitments and approach related
to value chain workers, aligned with internationally
x Yes 122-123
S2-1-17(b)
General approach to engagement with value chain
workers
x Yes 122-124
S2-1-17(c)
Approach to remedy for human rights impacts x Yes 122-124
S2-1-18, S2-1-19
Policies explicitly addressing forced labour and child
labour, aligned with internationally recognised standards
x Yes 120
S2-1-18
Undertaking has a supplier code of conduct x Yes 120
S2-4-19, S2-4-36
Severe human rights issues and incidents connected
to value chain workers
x x Yes 118-119
Business Conduct
G1-1-10(b)(d)
Statement if no policies exist in regard to anti-corruption
and bribery and to protection of whistleblowers
x No
Not
applicable
G1-4-24(a)
Number of convictions and amount of fines for violations
of anti-corruption and bribery laws
x Yes 128
G1-4-24(b)
Standards of anti-corruption and anti-bribery x Yes 124-126
ESRS Information SFDR Pillar 3
Benchmark
Regulation
EU Climate
Law Materiality Page No.
Contents »
Wallenius Wilhelmsen – Annual Report 2024 133
Responsibility statement
We confirm, to the best of our knowledge, that as of December31, 2024 and for the
financial year 2024
• the consolidated financial statements of the group have been prepared in
accordance with IFRS® Accounting Standards (IFRS) as adopted by the
European Union and additional disclosure requirements in the Norwegian
Accounting Act and that the financial statements of the parent company
have been prepared in accordance with the Norwegian Accounting Act and
accounting principles generally accepted in Norway, and that the
information presented in the financial statements gives a true and fair view
of the parent company's and the group's assets, liabilities, financial position
and results
• the consolidated financial statements and the financial statements of the
parent company have been prepared based on the going concern
assumption, and the conditions to make that assumption are present
• the directors’ report, which includes the message from the board and the
sustainability statement, give a true and fair view of the development,
performance and financial position of the company and the group, and
include a description of the key risks and uncertainties facing the company
and the group
• the sustainability statement is prepared in accordance with the Corporate
Sustainability Reporting Directive (CSRD) and the European Sustainability
Reporting Standards (ESRS) as required by amendments to the Norwegian
Accounting Act as well as article 8 in the EU taxonomy regulation
Lysaker, March18, 2025
Contents »
Wallenius Wilhelmsen – Annual Report 2024 134
Consolidated financial
statements
Consolidated income statement 137
Consolidated statement of comprehensive income 138
Consolidated balance sheet 139
Consolidated cash flow statement 141
Consolidated statement of changes in equity 142
Note 1. Corporate information and basis for preparation 143
Note 2. Segment reporting 146
Note 3. Operating expenses 151
Note 4. Employee benefits and board remuneration 152
Note 5. Financial items 155
Note 6. Tax 156
Note 7. Goodwill, customer relations/contracts and other intangible
assets
160
Note 8. Vessels and other tangible assets 162
Note 9. Right-of-use assets 165
Note 10. Impairment on non-current assets 168
Note 11. Principal subsidiaries 171
Note 12. Subsidiaries with material non-controlling interest 173
Note 13. Share information and earnings per share 174
Note 14. Employee retirement plans 175
Note 15. Interest-bearing liabilities 176
Note 16. Financial risk 181
Note 17. Written put option over non-controlling interests 193
Note 18. Provisions and contingent liabilities 195
Note 19. Disaggregated balance sheet information 196
Note 20. Fuel/lube oil 197
Note 21. Trade receivables and trade payables 198
Note 22. Cash and cash equivalents 199
Note 23. Related party transactions 199
Note 24. Disposal group held for sale 201
Note 25. Events after the balance sheet date 202
Contents »
Wallenius Wilhelmsen – Annual Report 2024 136
Consolidated income statement
USD million Notes 2024 2023
restated
21
Total revenue 2 5,308 5,149
Operating expenses 3 (3,438 ) (3,342 )
Operating profit before depreciation, amortization and impairment (EBITDA) 1,869 1,807
Depreciation and amortization 7,8,9 (580 ) (577 )
Impairment 7,8,10 (1 ) (5 )
Operating profit (EBIT) 1,289 1,225
Share of profit from joint ventures and associates 3 3
Interest income and other financial income 171 122
Interest expense and other financial expenses (325 ) (309 )
Financial items - net 5 (154 ) (186 )
Profit before tax 1,138 1,042
Tax expense 6 (73 ) (68 )
Profit for the period 1,065 974
Profit for the period attributable to:
Owners of the parent 973 853
Non-controlling interests 12 93 121
Basic and diluted earnings per share (USD) 13 2.30 2.00
Contents »
Wallenius Wilhelmsen – Annual Report 2024 137
21
Note that information for comparative periods are restated amounts. Please
refer to note 17 for further information.
Consolidated statement of comprehensive
income
USD million Note 2024 2023
restated
22
Profit for the period 1,065 974
Other comprehensive income/(loss):
Items that may subsequently be reclassified to the income statement:
Currency translation adjustment (17 ) 4
Items that will not be reclassified to the income statement:
Changes in the fair value of equity investments designated at fair value through other
comprehensive income - (3 )
Remeasurement pension liabilities, net of tax 14 (2 ) (3 )
Other comprehensive income/(loss), net of tax (18 ) (1 )
Total comprehensive income for the period 1,047 972
Total comprehensive income attributable to:
Owners of the parent 955 852
Non-controlling interests 92 121
Total comprehensive income for the period 1,047 972
Contents »
Wallenius Wilhelmsen – Annual Report 2024 138
22
Note that information for comparative periods are restated amounts. Please
refer to note 17 for further information.
Consolidated balance sheet
USD million Note Dec 31, 2024 Dec 31, 2023 Jan 1, 2023
restated
23
restated
19
Assets
Non-current assets
Deferred tax assets 6 38 53 59
Goodwill and other intangible assets 7 319 360 395
Vessels and other tangible assets 8 3,889 3,871 3,943
Right-of-use assets 9 1,371 1,443 1,599
Other non-current assets 19 133 125 142
Total non-current assets 5,750 5,853 6,138
Current assets
Fuel/lube oil 20 139 138 139
Trade receivables 21 655 616 605
Other current assets 19 259 231 191
Cash and cash equivalents 22 1,393 1,705 1,216
Disposal group held for sale 24 205 - -
Total current assets 2,650 2,690 2,151
Total assets 8,400 8,543 8,289
Equity and liabilities
Equity
Share capital 13 28 28 28
Retained earnings and other reserves 3,285 3,023 2,798
Total equity attributable to owners of the parent 3,313 3,051 2,826
Non-controlling interests 9 29 33
Total equity 3,321 3,080 2,859
Non-current liabilities
Pension liabilities 14 34 39 40
Deferred tax liabilities 6 56 67 71
Non-current interest-bearing debt 15 1,438 1,897 2,200
Non-current lease liabilities 15 1,092 1,097 1,254
Other non-current liabilities 107 63 95
Total non-current liabilities 2,728 3,163 3,659
Current liabilities
Trade payables 142 103 112
Current interest-bearing debt 15 338 406 316
Current lease liabilities 15 283 313 317
Current income tax liabilities 6 36 37 2
Written put option over non-controlling interest 17 831 878 545
Other current liabilities 19 572 564 479
Liabilities directly associated with the assets held for sale 24 150 - -
Total current liabilities 2,351 2,301 1,771
Total equity and liabilities 8,400 8,543 8,289
Contents »
Wallenius Wilhelmsen – Annual Report 2024 139
23
Note that information for comparative periods are restated amounts. Please refer to note 17 for further
information.
Consolidated cash flow statement
USD million Note 2024 2023
Cash flow from operating activities
Profit before tax 1,138 1,042
Financial items - net 5 154 186
Share of net income from joint ventures and associates (3 ) (3 )
Depreciation and amortization 7,8,9 580 577
Impairment 1 5
(Gain)/loss on sale of tangible assets - (2 )
Change in net pension assets/liabilities (5 ) (2 )
Net change in other assets/liabilities (19 ) 7
Tax paid (84 ) (39 )
Net cash flow provided by operating activities 1,762 1,771
Cash flow from investing activities
Dividend received from joint ventures and associates 5 1
Proceeds from sale of tangible assets 2 2
Investments in vessels, other tangible and intangible assets 7,8 (195 ) (163 )
Interest received 80 69
Net cash flow used in investing activities (108 ) (91 )
Cash flow from financing activities
Acquisition of non-controlling interest - (13 )
Proceeds from loans and bonds 15 126 473
Repayment of loans and bonds 15 (606 ) (655 )
Repayment of principal of lease liabilities 15 (327 ) (319 )
Interest paid including interest derivatives (203 ) (218 )
Realized other derivatives (43 ) (30 )
Dividend to non-controlling interests (115 ) (57 )
Repurchase of own shares - (4 )
Dividend to shareholders (738 ) (362 )
Change in cash collateral 16 (22 ) (4 )
Net cash flow used in financing activities (1,929 ) (1,190 )
Net increase/(decrease) in cash and cash equivalents (275 ) 490
Cash and cash equivalents at beginning of period 1,705 1,216
Cash and cash equivalents related to assets held for sale (37 ) -
Cash and cash equivalents at end of period
24
22 1,393 1,705
Contents »
Wallenius Wilhelmsen – Annual Report 2024 141
24
The group is located and operating world-wide and every entity has several bank
accounts in different currencies. Unrealized currency effects are included in net
cash provided by operating activities. For 2024 this was a negative amount of USD
17 million (2023: positive USD 10 million).
Consolidated statement of changes in equity
USD million Note
Share
capital
25
Share
premium
Currency
translation
26
Retained
earnings
Equity
attributable
to owners of
the parent
Non-
controlling
interests Total equity
Balance at January 1, 2024 28 1,083 (27 ) 2,560 3,644 413 4,056
Restatement
27
17 - - - (593 ) (593 ) (384 ) (977 )
Balance at January 1, 2024
(restated) 28 1,083 (27 ) 1,967 3,051 29 3,080
Profit for the period - - - 973 973 93 1,065
Other comprehensive loss - - (16 ) (2 ) (17 ) (1 ) (18 )
Total comprehensive income - - (16 ) 971 955 92 1,047
Own shares issued under long-
term incentive plan 13 - 2 - - 2 - 2
Repurchase of own shares - - - - - - -
Change in non-controlling
interests - - - (3 ) (3 ) 3 -
Change in put option over non-
controlling interest - - - 48 48 - 48
Dividend to owners of the parent - - - (739 ) (739 ) - (739 )
Dividend to non-controlling
interests - - - - - (115 ) (115 )
Balance at December 31, 2024 28 1,085 (43 ) 2,243 3,313 9 3,321
USD million Note
Share
capital
Share
premium
Currency
translation
Retained
earnings
Equity
attributable
to owners of
the parent
Non-
controlling
interests Total equity
Balance at January 1, 2023 28 1,080 (30 ) 2,076 3,153 355 3,508
Restatement
27
17 - - - (327 ) (327 ) (322 ) (649 )
Balance at January 1, 2023
(restated) 28 1,080 (30 ) 1,749 2,826 33 2,859
Profit for the period - - - 853 853 121 974
Other comprehensive loss - - 3 (4 ) (1 ) - (1 )
Total comprehensive income - - 3 848 852 121 972
Own shares issued under long-
term incentive plan 13 - 3 - - 3 - 3
Repurchase of own shares - - - (4 ) (4 ) - (4 )
Change in non-controlling
interests - - - 67 67 (67 ) -
Change in written put option over
non-controlling interest - - - (334 ) (334 ) - (334 )
Dividend to owners of the parent - - - (359 ) (359 ) - (359 )
Dividend to non-controlling
interests - - - - - (57 ) (57 )
Balance at December 31, 2023
(restated) 28 1,083 (27 ) 1,967 3,051 29 3,080
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25
Includes issued share capital of USD 28.05 million reduced by own shares totaling 0.02 million at December31,
2024 (2023: 0.03 million).
26
Includes accumulated currency translation adjustment on disposal group held for sale of a negative USD 2.7
million.
27
Note that information for comparative periods are restated amounts. Please refer to note 17 for further
information on the restatement.
Note 1. Corporate information and basis for
preparation
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Discount rate
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Parent financial statements -
Wallenius Wilhelmsen ASA
Income statement 204
Balance sheet 205
Cash flow statement 207
Accounting policies 208
Note 1. Employee benefits 210
Note 2. Specification of income statement 212
Note 3. Tax 213
Note 4. Investment in subsidiaries 214
Note 5. Specification of the balance sheet 214
Note 6. Equity 215
Note 7. Employee retirement obligations 217
Note 8. Interest-bearing debt 219
Note 9. Financial risk 221
Note 10. Transactions with related parties 224
Note 11. Transition 225
Note 12. Events after the balance sheet date 228
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Income statement
USD million Notes 2024 2023
44
Operating expenses
Employee benefits expense 1 (5) -
Other operating expenses 2 (29) (18)
Total operating expenses (34) (18)
Operating profit/(loss) (34) (18)
Financial income and expenses
Financial income 2 848 1,648
Financial expenses 2 (112) (105)
Net financial income/(expense)
736 1,543
Profit before tax 702 1,525
Income tax income/(expense) 3 - (3)
Net profit for the year 702 1,523
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44
Refer to note 11 for effects of transition from simplified IFRS to generally
accepted accounting principles in Norway
Balance sheet
USD million Note Dec 31, 2024 Dec 31, 2023
45
Assets
Non-current assets
Deferred tax assets 3 2 5
Investments in subsidiaries 4 3,786 3,016
Other non-current assets 5 1 2
Total non-current assets 3,789 3,022
Current assets
Other current assets 5 528 1,365
Cash and bank deposits 2 131
Total current assets 530 1,497
Total assets 4,318 4,519
Equity and liabilities
Equity
Share capital 6 28 28
Retained earnings and other reserves 6 3,271 3,350
Total equity 3,299 3,378
Non-current liabilities
Pension liabilities 7 17 21
Non-current interest-bearing debt 8 458 456
Financial derivatives 9 2 -
Total non-current liabilities 477 476
Current liabilities
Next year's instalment on interest-bearing debt - 165
Proposed dividends 6 524 482
Other current liabilities 5 17 19
Total current liabilities 542 665
Total equity and liabilities 4,318 4,519
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45
Refer to note 11 for effects of transition from simplified IFRS to generally
accepted accounting principles in Norway
Cash flow statement
USD million 2024 2023
46
Cash flow from operating activities
Profit before tax 702 1,525
Financial (income)/expense (736) (1,543)
Change in net pension assets/liabilities (1) (2)
Change in current assets/liabilities - group companies (92) 57
Net change in other assets/liabilities (20) 18
Interest received 32 12
Interest paid (46) (41)
Dividend received from subsidiaries 523 344
Net cash provided by/(used in) operating activities 361 371
Cash flow from investing activities
Investments in subsidiaries, associates and joint ventures (770) (50)
Subsidiaries' repayment of debt 1,186 126
Group contribution from subsidiaries 39 3
Net cash flow provided by/(used in) investing activities 455 78
Cash flow from financing activities
Proceeds from issuance of debt - 95
Repayment of debt (138) (50)
Repayment of debt to subsidiaries (5) -
Purchase of own shares - (4)
Disposal of own shares 2 3
Dividend to shareholders (738) (359)
Change in cash collateral (22) (4)
Cash from financial derivatives (41) (29)
Net cash flow provided by/(used in) financing activities (942) (348)
Net increase/(decrease) in cash and cash equivalents (126) 101
Cash and cash equivalents at beginning of the period 131 21
Effects of exchange rate changes on cash and cash equivalents (3) 10
Cash and cash equivalents at end of the period
47
2 131
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46
Refer to note 11 for effects of transition from simplified IFRS to generally
accepted accounting principles in Norway
47
Payroll tax withholding account is included in cash and cash equivalents with
USD 0.2 million (2023: USD 0.2 million).
Accounting policies
Wallenius Wilhelmsen ASA (‘the company’) is a public limited company
incorporated in Norway, and its shares are listed on the Oslo Stock Exchange. The
company's registered office is at Strandveien 20, Lysaker, Norway. The financial
statements of the company have been prepared in accordance with the
requirements in the Norwegian Accounting Act for large entities, and Generally
Accepted Accounting Principles in Norway effective on December31, 2024.
Foreign exchange
The functional currency of the company is US dollars (USD). Transactions in other
currencies are translated at the rate applicable on the transaction date. Monetary
items in a foreign currency are translated into USD using the exchange rate
applicable on the balance sheet date.
Interest-bearing debt
Interest-bearing debt is recognized at fair value when the proceeds are received,
net of transaction costs. In subsequent periods, loans are measured at amortized
cost using the effective interest method. Any difference between proceeds (net of
transaction costs) and the redemption value is recognized in the income
statement over the term of the loan.
Financial instruments
Various financial instruments are utilized to hedge the company’s exposure to
currency and interest rate risk. Hedge accounting is applied for financial
instruments that satisfy the criteria for hedge accounting. Instruments that do not
meet the requirements for hedge accounting are measured at fair value.
Cash flow hedges are recognized in the income statement in the same period as
the cash flow from the underlying item. Fair value hedges are reflected in the
carrying value of the hedged and the gains or losses reflected in the income
statement when the instrument is realized.
Income tax
The tax expense consists of the tax payable and changes to deferred tax. Deferred
tax/tax assets are calculated on all differences between the book value and tax
value of assets and liabilities. Deferred tax is calculated as 22 percent of
temporary differences and the tax effect of tax losses carried forward.. Deferred
tax assets are recorded in the balance sheet when it is more likely than not that the
tax assets will be utilized. Taxes payable and deferred taxes are recognized
directly in equity to the extent that they relate to equity transactions.
Classification
An asset or liability is classified as current when it is part of a normal operating
cycle, held primarily for trading purposes, falls due within 12 months or when it
consists of cash or cash equivalents on the statement of financial position date.
Other items are classified as non-current. Proposed dividends to shareholders of
the parent are recognized as current.
Current assets and current liabilities consist of receivables and payables due
within one year. Other balance sheet items are classified as non-current assets /
non-current liabilities. Current assets are valued at the lower of cost and fair
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value. Current liabilities are recognized at nominal value. Non-current liabilities
are recognized at nominal value.
Cash and cash equivalents
Cash and cash equivalents consist of bank deposits and other highly liquid
monetary instruments with a maturity of three months or less.
Investments in shares in subsidiaries
Investments in subsidiaries are measured at cost less any impairment losses. An
impairment loss is recognized if the impairment is not considered temporary, and
reversed if the reason for the impairment loss is no longer present.
Dividends, group contributions and other distributions from subsidiaries are
recognized in the same year as when it is proposed by the subsidiary to the extent
that the parent company is able to control the decision of the subsidiary.
Pensions
Wallenius Wilhelmsen ASA has elected, in accordance with NRS 6, to use the
measurement and presentation principles according to IAS 19 Employee Benefits.
In defined benefit plans, the net liability recognized is the present value of accrued
future pension benefits at the balance sheet date less the fair value of plan assets.
The present value of defined benefit obligations, current service cost and past
service cost is calculated annually by independent actuaries using the projected
unit credit method and actuarial assumptions regarding demographic and
financial variables. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rates
of high-quality corporate bonds that are denominated in the currency in which the
benefits will be paid, and that have terms to maturity approximating to the terms of
the related pension obligation.
The net pension expense includes service cost, past service cost, settlements and
interest on the net defined benefit liability. Actuarial gains and losses arising from
experience adjustments and changes in actuarial assumptions are recognized
equity in the period in which they arise. Gains or losses that arise in connection
with settlement or significant curtailment of defined benefit plans are recognized
immediately in the income statement
Pension costs and obligations include payroll taxes. No provision has been made
for payroll tax in pension plans where the plan assets exceed the plan obligations.
Cash flow statement
The cash flow statement is presented using the indirect method. Cash and cash
equivalents includes cash, bank deposits and other short term, highly liquid
investments with maturities of three months or less.
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Note 1. Employee benefits
USD million 2024 2023
Salary/remuneration board of directors 3 3
Long-term executive incentive plan 1 (5)
Payroll tax 1 1
Pension cost - 1
Other remuneration (1) (1)
Total employee benefits 5 -
USD thousand 2024 2023
Remuneration of the board of directors
Rune Bjerke 167 157
Thomas Wilhelmsen 66 62
Margareta Alestig 69 65
Anna Felländer 66 62
Yngvil Eriksson Åsheim 66 62
Hans Åkervall 66 62
Magnus Groth - -
Nomination committee
Anders Ryssdal 12 11
Jonas Kleberg - -
Carl Erik Steen 8 7
Three members of the group executive management were employed by Wallenius
Wilhelmsen ASA during 2024 (three full time equivalents). The long-term executive
incentive plan shows significant fluctuations, which are largely due to variations in
the share price affecting the fair value of the liability. See separate Remuneration
report for further details regarding remuneration of group executives.
The board’s remuneration for the financial year 2024 will be approved by the
general meeting on April 30, 2024 and paid/expensed in 2025. Magnus Groth was
elected as board member at the AGM in 2024. He did not receive any remuneration
in 2024.
Remuneration paid in other currencies than USD will not be comparable year-on-
year due to changes in exchange rates.
Loans and guarantees
There were no loans or guarantees to employees or members of the board per
December31, 2024.
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Shares owned or controlled by representatives of the group at
December31, 2024
Name Number of shares Percent of shares
Board of directors
Rune Bjerke 34,750 0.01 %
Thomas Wilhelmsen 161,375,095 38.14 %
Margareta Alestig 1,600 - %
Anna Felländer 1,400 - %
Yngvil Eriksson Åsheim 4,250 - %
Hans Åkervall - - %
Magnus Groth - - %
Senior executives
Chief Executive Officer (CEO) - Lasse Kristoffersen 5,000 - %
Interim Chief Financial Officer (CFO) - Jermund Lien 2,000 - %
Executive Vice President (EVP) and Chief Operating Officer (COO) shipping
services - Xavier Leroi 63,649 0.02 %
Chief Strategy & Corporate Development Officer - Michael Hynekamp 137,147 0.03 %
Chief People Officer (CPO) - Wenche Agerup - - %
Chief Customer Officer (CCO) - Pia Synnerman - - %
Chief Technology and Information Officer (CTIO) - Gro Rognstad 1,500 - %
Chief Communications and Marketing Officer (CCMO) - Anette Maltun Koefoed 2,010 - %
Nomination Committee
Anders Ryssdal - - %
Jonas Kleberg - - %
Carl Erik Steen 30,000 0.01 %
The two main shareholders of Wallenius Wilhelmsen ASA are Wilh. Wilhelmsen
Holding ASA with 37.87 percent of the shares and Wallenius Lines AB with 37.82
percent of the shares.
The Wilhelmsen family controls Wilh. Wilhelmsen Holding ASA through Tallyman
AS, and Thomas Wilhelmsen controls Tallyman AS. The Wallenius Kleberg family
controls Wallenius Lines AB through Rederi AB Soya (Soya group).
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Note 2. Specification of income statement
USD million Note 2024 2023
Other operating expenses
Intercompany expenses 10 (18) (13)
Other administration expenses (12) (5)
Total other operating expenses (29) (18)
Financial income/(expenses)
Financial income
Dividend from subsidiaries and group contribution 10 762 1,584
Interest income 10 31 23
Net gain related to interest rate derivatives 26 8
Net currency gain 29 34
Total financial income 848 1,648
Financial expenses
Interest expenses (44) (44)
Net currency loss (65) (33)
Net loss related to currency derivatives 1 (24)
Other financial expenses (3) (4)
Total financial expenses (112) (105)
Financial income/(expenses) 736 1,543
Expensed audit fee
USD thousand 2024 2023
Statutory audit
48
149 187
Other assurance services
49
19 -
Total expensed audit fee 168 187
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48
EY were appointed auditors with effect from the 2024 financial year. 2023 figures
relate to fees to PwC
49
Relates to limited assurance on sustainability statement
Note 3. Tax
USD million 2024 2023
Distribution of tax (income)/expense for the year
Change in deferred tax - 3
Total tax (income)/expense - 3
Basis for tax computation
Profit before tax 702 1,525
22% tax 154 70
Tax effect from
Non-taxable income (372) (75)
Deferred tax assets not recognized 5 11
Currency translation from USD to local currency for tax purposes 1 (3)
Total tax (income)/expense (212) 3
Effective tax rate (30.15) % 0.2 %
Deferred tax assets
Tax effect of temporary differences
Financial instruments 1 -
Non-current liabilities 2 4
Deferred tax assets 2 5
Composition of deferred tax and changes in deferred tax
Deferred tax assets at January 1 5 23
Adjustment previous year (15)
Recognized directly in equity - -
Change of deferred tax through income statement - (3)
Currency translation differences (2) (1)
Deferred tax assets at December 31 2 5
Deferred tax assets not recognized in the balance sheet at December 31, 2024
amount to USD 53 million (2023: USD 54 million. This relates to deferred tax assets
arising from tax losses carried forward in the company, see note 6 to the group
financial statements for additional information.
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Note 4. Investment in subsidiaries
Voting share/
Carrying
amount
Carrying
amount
USD million Business office ownership share 2024 2023
Wallenius Wilhelmsen Ocean Holding AS Lysaker, Norway 100 % 2,037 1,267
Wallenius Wilhelmsen International Holding AS Lysaker, Norway 100 % 1,116 1,116
ARC Group Holding AS Lysaker, Norway 100 % 200 200
Wallenius Wilhelmsen Solutions Holding AS Lysaker, Norway 100 % 433 433
Total investments in subsidiaries 3,786 3,016
Investments in subsidiaries are initially measured at cost. When there are
indications of impairment, an impairment test is performed.
There was a share capital increase of USD 770 million in Wallenius Wilhelmsen
Ocean Holding AS in February 2024. 80,000 new shares were issued at a
subscription price of USD 9,625 per share.
Note 5. Specification of the balance sheet
USD million Notes 2024 2023
Other non-current assets
Other non-current assets from group companies 10 - 1
Financial derivatives - 1
Total other non-current assets 1 2
Other current assets
Receivables from group companies
50
10 495 1,358
Financial derivatives 6 -
Other current receivables 27 7
Total other current assets 528 1,365
Other current liabilities
Trade payables 2 -
Payables to group companies 10 6 6
Public duties payable - -
Financial derivatives liability 1 -
Other current liabilities 8 11
Total other current liabilities 17 19
The put and call option over the non-controlling interest in EUKOR is recognized at
the lower of cost and fair value, i.e., nil at December 31, 2023. In April 2024, the
option was formally transferred to the direct owners of the shares in the
subsidiary.
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50
USD 224 million relates to cash pool (2023: USD 102 million), remainder is
primarily dividends receivable from subsidiaries (2024: USD 245 million and 2023:
USD 1206 million)
Note 6. Equity
USD million Share capital Own shares
Total share
capital Share premium
Retained
earnings Total
Change in equity
Equity at December 31,
2023 28 - 28 1,082 2,267 3,378
Profit for the year - - - - 702 702
Remeasurement post-
employment benefits, net
of tax - - - - - -
Own shares issued under
long-term incentive plan - - - 2 - 2
Repurchase of own shares - - - - - -
Dividend to owners of the
parent - - - - (258) (258)
Dividend to owners of the
parent, accrued - - - (524) (524)
Equity at December 31,
2024 28 - 28 1,084 2,188 3,299
USD million Share capital Own shares
Total share
capital Share premium
Retained
earnings Total
Change in equity
Equity at December 31,
2022 28 - 28 1,079 1,231 2,338
Profit for the year - - - - 1,523 1,523
Remeasurement post-
employment benefits, net
of tax - - - - (1) (1)
Own shares issued under
long-term incentive plan - - - 3 - 3
Repurchase of own shares - - - - (4) (4)
Dividend to owners of the
parent, accrued - - - - (482) (482)
Equity at December 31,
2023 28 - 28 1,082 2,267 3,378
The company's number of shares is as follows: Dec 31, 2024 Dec 31, 2023
Total number of shares 423,104,938 423,104,938
Own shares 404,340 568,338
The nominal share value is NOK 0.52 each translated to USD at the historical
exchange rate.
Own shares are meant to cover management's share incentive program. When
any of the programs are exercised, there will be a reduction of own shares and the
price paid in excess of the nominal value of the shares increases retained
earnings.
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Dividend and group contribution in the parent company
financial statements
Proposed dividends to shareholders in the parent company's are presented in the
parent company financial statements as a liability as at December 31, in the
current year. Group contributions and dividends received from subsidiaries are
recognized as financial income and current assets in the financial statement at
December 31, in the current year.
The largest shareholders at December31, 2024 are:
Shareholders Note Number of shares Percent of shares
Wilh. Wilhelmsen Holding ASA 10 160,210,000 37.87 %
Skandinaviska Enskilda Banken AB
51
10 160,000,000 37.82 %
Folketrygdfondet 8,012,579 1.89 %
Clearstream Banking S.A. 4,881,195 1.15 %
State Street Bank And Trust Comp 4,160,870 0.98 %
BNP Paribas 2,460,000 0.58 %
JPMorgan Chase Bank, N.A., London 2,232,229 0.53 %
Verdipapirfondet Storebrand Norge 2,102,535 0.50 %
Verdipapirfondet Alfred Berg Norge 1,795,114 0.42 %
Verdipapirfondet Alfred Berg Gamba 1,771,117 0.42 %
Other 75,479,299 17.84 %
Total number of shares 423,104,938 100.00 %
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51
The nominee account held with Skandinaviska Enskilda Banken AB for
160,000,000 shares is owned by Wallenius Lines AB.
Note 7. Employee retirement obligations
Description of the pension scheme
In order to reduce the company's exposure to certain risks associated with defined
benefit plans, such as longevity, inflation, effects of compensation increases, the
company regularly reviews and continuously improves the design of its post-
employment defined benefit plans. Until 31 December 2014, the company provided
both defined benefit pension plans and defined contribution pension plans.
The remaining pension obligation is related to some employees in the company's
senior executive management. These obligations are mainly covered via company
annuity policies.
Number of people covered by pension schemes at December 31 2024 2023
In retirement (inclusive disability pensions) 495 511
Total number of people covered by pension schemes 495 511
Financial assumptions applied for the valuation of liabilities 2024 2023
Discount rate 3.9 % 3.7 %
Anticipated pay regulation 3.3 % 3.5 %
Anticipated regulation of National Insurance base amount (G) 3.3 % 3.5 %
Anticipated regulation of pensions 1.9 % 2.4 %
Anticipated pay regulation are business sector specific, influenced by the
composition of employees under the plans. Anticipated increase in G is tied to the
anticipated pay regulations. Anticipated regulation of pensions is determined by
the difference between return on assets and the hurdle rate.
USD thousand 2024 2023
Pension expenses
Interest expense on defined benefit obligation 693 685
Net pension expenses 693 685
Remeasurements
Effect of changes in financial assumptions 974 (993)
Effect of experience adjustments (362) (150)
Total remeasurements included in equity 612 (1,143)
Tax effect of pension in equity (135) 251
Net remeasurement in equity 477 (891)
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Wallenius Wilhelmsen – Annual Report 2024 217
USD thousand 2024 2023
Pension obligations
Defined benefit obligations at January 1 20,780 21,363
Interest expense 693 685
Benefit payments from employer (1,769) (1,752)
Remeasurements - change in assumptions (974) 993
Remeasurements - experience adjustments 362 150
Effect of changes in foreign exchange rates (2,201) (659)
Pension obligations at December 31 16,892 20,780
Payments from operations are estimated at USD 1.6 million in 2024 (2023: USD 1.8
million).
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Wallenius Wilhelmsen – Annual Report 2024 218
Note 8. Interest-bearing debt
At the end of 2024 the company had three outstanding bond loans, with maturities
from March 2026 through August 2028. All three are listed on the Oslo Stock
Exchange. On September 9, 2024 the company repaid at maturity the bond
WALWIL03 with NOK 1,472 million. The repayment was done at par value.
As of December31, 2024, weighted average interest rate on interest-bearing debt
is 8.54 percent.
The main covenant related to the bond debt is a limitation on the ability to pledge
the company’s assets. The covenant is reported on quarterly. There have been no
breaches of loan agreement terms in the current period or at year-end 2024 and
2023).
NOK million
Nominal
Currency
value
Reference
interest rate
Fixed
interest
margin
Interest
coupon
Maturity
date Interest terms
2024
ISIN NO 0011082091
WAWI01 2,000 4.69 % 3.90 % 8.59 % 03.03.2026
Floating, 3M
NIBOR + margin
ISIN NO 012495912
WAWI02 ESG 1,250 4.68 % 4.25 % 8.93 % 21.04.2027
Floating, 3M
NIBOR + margin
ISIN NO 012992090
WAWI03 ESG 1,000 4.70 % 3.25 % 7.95 % 31.08.2028
Floating, 3M
NIBOR + margin
Total bonds 4,250
2023
ISIN NO 010891971
WALWIL03 1,472 0.0462 0.0575 0.1037 09.09.2024
Floating, 3M
NIBOR + margin
ISIN NO 0011082091
WAWI01 2,000 0.0469 0.039 0.0859 03.03.2026
Floating, 3M
NIBOR + margin
ISIN NO 012495912
WAWI02 ESG 1,250 0.0469 0.0425 0.0894 21.04.2027
Floating, 3M
NIBOR + margin
ISIN NO 012992090
WAWI03 ESG 1,000 0.0472 0.0325 0.0797 31.08.2028
Floating, 3M
NIBOR + margin
Total bonds 5,722
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Wallenius Wilhelmsen – Annual Report 2024 219
USD million Notes 2024 2023
Interest-bearing debt
Bonds 458 620
Repayment schedule for interest-bearing debt
Due in year 1 9 - 165
Due in year 2 223 -
Due in year 3 144 223
Due in year 4 94 144
Due in year 5 and later - 94
Total interest-bearing debt repayable 461 626
Amortized financing costs (2) (5)
Book value interest-bearing debt 458 620
Reconciliation of liabilities arising from financing activities
USD million
Non-current
interest-bearing
debt
Current interest-
bearing debt
Total financing
activities
Net debt at December 31, 2023 456 165 620
Cash flows (proceeds) from loans and bonds - - -
Cash flow (repayments) from loans and bonds - (138) (138)
Foreign exchange movement - (27) (27)
Other non-cash movements 3 - 3
Net debt at December 31, 2024 458 - 458
Guarantees
The company has provided parent company guarantees for all bank debt related
to the financing of Wallenius Wilhelmsen Ocean Holding AS (and subsidiaries) and
Wallenius Wilhelmsen Solutions Holding AS (and subsidiaries). The amounts in the
following table is the bank debt covered by this parent guarantee.
USD million 2024 2023
Parent company guarantees to banks for group companies 914 1,234
Total guarantee liabilities 914 1,234
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Wallenius Wilhelmsen – Annual Report 2024 220
Note 9. Financial risk
Currency risk
The company is exposed to currency risk on income and expenses in non-
functional currencies (transaction (cash flow) risk) and balance sheet items
denominated in currencies other than USD (translation risk). The company's
largest individual foreign exchange exposure is NOK against USD.
Various financial derivatives, such as forwards, options and cross-currency
(basis) swaps are used to hedge this exposure. In addition, the company uses the
same instruments to hedge currency risk on behalf of the group. It may thus hold
currency hedges that the company itself does not have any exposure to. Hedge
accounting is applied for cross-currency swaps held in connection with the bond
debt. For other currency derivatives the company is not applying hedge
accounting.
The group has an economic hedging program for NOK and SEK exposures in place
as of both year-ends 2024 and 2023. As of year-end 2024 the company had also
hedged the groups AUD exposure related to sale of MIRRAT (see also group note 16
on financial risk).
The fair value of foreign exchange forward contracts and FX options not eligible for
hedge accounting is presented in the table below.
Assets Liabilities Assets Liabilities
USD million 2024 2023
Forward contracts with external counterparties 6 - - -
Currency option contracts with external counterparties 1 4 3 1
Total 8 4 3 1
All instruments are booked at fair value as per 31 December. For methodology
used in calculating fair value please refer to group note 16.
The cross-currency swaps, for which hedge accounting has been applied, had a
fair value at December 31 as follows:
Assets Liabilities Assets Liabilities
USD million 2024 2023
Forward contracts with external counterparties 6 - - -
Cross-currency swaps with external counterparties - 98 3 78
Total 6 98 3 78
Accounting effects of hedge accounting is reflected under financial income and
financial expense in the income statement. And under the bond debt in the
balance sheet.
Interest rate risk
The company’s interest rate exposure mainly comes from the external funding in
bank and debt capital markets. The group, of which the company is a part, seeks
to economically hedge between 20-80 percent of the average gross debt over the
next five years, predominantly through interest rate swaps and fixed rate loans. It
should be noted that hedge levels are considered at a group level. As such hedge
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Wallenius Wilhelmsen – Annual Report 2024 221
levels for the company can be higher or lower than group policy while still being
within policy.
Interest rate hedges held by the company corresponded to about 25 percent
(2023: about 10 percent) of its gross debt at December31, 2024.
USD million 2024 2023
Maturity schedule economic interest rate hedges (nominal
amounts)
Due in year 1 - 150
Year 5 and later 100 -
Total economic interest rate hedges 100 150
As of December31, 2024 the company did not hold any forward starting swaps
(2023: nil). The fair value of the interest rate hedges at December 31, 2024 was USD
3 million (2023: USD 1 million).
The average remaining term of the existing loan portfolio is about 2.0 years, while
the average remaining term of the running interest rate derivatives and fixed
interest loans is approximately 4.7 years.
Credit risk
Credit risk is the risk of financial loss to the company if a customer or counterparty
to a financial instrument fails to meet its contractual obligations, and originates
primarily from the company's financial derivatives used to economically hedge
interest rate risk or foreign exchange risk, bank deposits as well as the parent
company guarantees provided towards the banks involved in the financing of
Wallenius Wilhelmsen Ocean and Wallenius Wilhelmsen Solutions. The company's
exposure to credit risk on its bank deposits and financial derivatives is considered
to be limited as the group's counterparties are reputable relationship banks. The
credit risk on the provided parent company guarantees is considered limited as
the company controls these debtors through ownership.
Liquidity risk
The company's approach to managing liquidity is to secure that it will always have
sufficient liquidity to meet its liabilities, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the
company's reputation. The development in the group’s and thereby the company’s
available liquidity s continuously monitored through weekly and monthly cash
forecasts, medium and long-term business forecasts as well as financial strategy
plans.
The company regularly issues NOK debt in the Norwegian bond market, with
proceeds swapped into USD via cross-currency swaps at the time of each issue. If
the USD/NOK exchange rate increases above certain thresholds from the rate at
the time of issue, the company will need to post cash collateral with the
counterparties based on the mark-to-market value above the threshold. The cash
collateral is released back to the company if the USD/NOK exchange rate
decreases. As of December31, 2024, the group had posted USD 27 million in cash
collateral relating to cross-currency swaps for the three outstanding NOK bonds.
The cash collateral is recognized in Other current assets in the balance sheet.
The company's liquidity risk is considered low in that it holds significant liquid
assets. At December 31, 2024, the company had USD 233 million (2023: USD 211
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Wallenius Wilhelmsen – Annual Report 2024 222
million) in liquid assets (including in cash pools held by subsidiaries) which can be
realized within a three-day period.
Undiscounted cash flows financial liabilities
USD million
Less than
1 year
Between
1 and 2 years
Between
2 and 5 years
2024
Bonds 32 197 215
Financial derivatives (4) (1) (3)
Total interest-bearing debt 28 196 212
Current liabilities
(excluding next year's installment on interest-bearing debt
and financial derivatives) 540 - -
Total gross undiscounted cash flows financial
liabilities at December 31 568 196 212
USD million
Less than
1 year
Between
1 and 2 years
Between
2 and 5 years
2023
Bonds 279 66 494
Financial derivatives (2) - -
Total interest-bearing debt 277 66 494
Current liabilities
(excluding next year's installment on interest-bearing debt
and financial derivatives) 665 - -
Total gross undiscounted cash flows financial
liabilities at December 31 942 66 494
Interest expenses on interest-bearing debt included above have been computed
using interest rate curves as of year-end.
See note 16 to the group financial statements for further information on financial
risk.
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Wallenius Wilhelmsen – Annual Report 2024 223
Note 10. Transactions with related parties
The two main shareholders of Wallenius Wilhelmsen ASA are Wallenius Lines AB
and Wilh. Wilhelmsen Holding ASA with 37.82 and 37.87 percent of the shares
respectively.
For participation in the board of directors, Thomas Wilhelmsen received USD 66
thousand. Jonas Kleberg has not received compensation for participation in the
nomination committee.
See note 1 regarding fees to board of directors, note 4 regarding ownership and
separate remuneration report for further details. The company has undertaken
several transactions with related parties within the Wilh. Wilhelmsen Holding
group (WWH group). All transactions are entered into in the ordinary course of
business of the company on arm’s length basis.
USD million Notes 2024 2023
Income statement
Operating expenses to subsidiaries 2 (18) (13)
Dividend from subsidiaries and group contribution 10 762 1,584
Other financial income from subsidiaries 24 21
USD million Notes 2024 2023
Balance sheet
Non-current assets from subsidiaries 5 - 1
Current receivables from subsidiaries 5 495 1,358
Current payables to subsidiaries 5 6 6
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Wallenius Wilhelmsen – Annual Report 2024 224
Note 11. Transition
From 2024, Wallenius Wilhelmsen ASA present the parent company financial statements in accordance with
generally accepted accounting principles in Norway. The impact of the transition from simplified application
of IFRS on the balance sheet as at December 31, 2023 and the 2023 income statement is presented in the
reconciliation below:
Balance sheet
USD million
Simplified IFRS
Dec 31, 2023
Transition
adjustment
NGAAP Dec 31,
2023
Assets
Non-current assets
Deferred tax assets 21 (16) 5
Investments in subsidiaries 3,016 3,016
Other non-current assets 2 2
Total non-current assets 3,038 (16) 3,022
Current assets
Other current assets 160 1,205 1,365
Cash and bank deposits 131 131
Total current assets 291 1,205 1,497
Total assets 3,330 1,190 4,519
Equity and liabilities
Equity
Share capital 28 28
Retained earnings and other reserves 2,627 722 3,350
Total equity 2,656 722 3,378
Non-current liabilities
Pension liabilities 21 21
Non-current interest-bearing debt 414 41 456
Financial derivatives 54 (54) -
Total non-current liabilities 489 (12) 476
Current liabilities
Next year's installment on interest-bearing debt 165 165
Proposed dividends - 482 482
Other current liabilities 20 (2) 19
Total current liabilities 185 480 665
Total equity and liabilities 3,330 1,190 4,519
In 2023, the stated accounting policy was unintentionally not followed and proposed dividends were not
presented as liabilities. The corresponding entry is retained earnings and other reserves. Similarly,
dividends from subsidiaries had been recognized in the incorrect period and the correction has been
reflected in financial income and other current assets.
Other transition adjustments with effects on financial assets and liabilities and deferred tax assets, relate to
hedge accounting being applied under Norwegian GAAP.
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Wallenius Wilhelmsen – Annual Report 2024 225
Income statement
USD million
Simplified IFRS
Dec 31, 2023
Transition
adjustment
NGAAP
Dec 31, 2023
Operating expenses
Employee benefits expense - -
Impairment of investment in subsidiaries - -
Other operating expenses (18) (18)
Total operating expenses (18) - (18)
Operating profit/(loss) (18) - (18)
Financial income and expenses
Financial income 428 1,220 1,648
Financial expenses (93) (12) (105)
Net financial income/(expense)
52
335 1,208 1,543
Profit before tax 318 1,208 1,525
Income tax income/(expense) (2) (1) (3)
Net profit for the year 316 1,207 1,523
Transition adjustments with effects on financial income, financial expenses and deferred tax, relate to
hedge accounting being applied under Norwegian GAAP.
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Wallenius Wilhelmsen – Annual Report 2024 226
52
Financial derivatives, presented as a separate line item in 2023 have been reclassified to corresponding
financial expenses and financial income
Cash flow statement
USD million
Simplified
IFRS
Dec 31, 2023
Reclassification
NGAAP
Dec 31, 2023
Cash flow from operating activities
Profit before tax 318 1,208 1,525
Financial (income)/expense (335) (1,208) (1,543)
Disposal of own shares -
Purchase of own shares -
Change in net pension assets/liabilities (2) - (2)
Change in current assets/liabilities - group companies 57 - 57
Net change in other assets/liabilities 24 (6) 18
Interest received 12 12
Interest paid (41) (41)
Dividend received from subsidiaries 344 344
Net cash provided by/(used in) operating activities 62 309 371
Cash flow from investing activities
Interest received 12 (12)
Investments in subsidiaries, associates and joint ventures (50) - (50)
Subsidiaries' repayment of debt 126 126
Group contribution from subsidiaries 3 3
Dividend received from subsidiaries - -
Net cash flow provided by/(used in) investing activities (38) 116 78
Cash flow from financing activities
Proceeds from issuance of debt 95 - 95
Repayment of debt (50) - (50)
Subsidiaries' repayment of debt 126 (126)
Proceeds from issuance of debt to subsidiaries - - -
Repayment of debt to subsidiaries - - -
Group contribution/dividend from subsidiaries 346 (346)
Purchase of own shares (4) - (4)
Disposal of own shares 3 - 3
Dividend to shareholders (359) - (359)
Change in cash collateral (4) (4)
Cash from financial derivatives (29) - (29)
Interest paid (41) 41
Net cash flow provided by/(used in) financing activities 87 (435) (348)
Net increase/(decrease) in cash and cash equivalents 111 (10) 101
Cash and cash equivalents at beginning of the period 21 - 21
Effects of exchange rate changes on cash and cash
equivalents 10 10
Cash and cash equivalents at end of the period 131 - 131
The requirements for classification of cash flows between operating, investing and financing cash flows
differ between simplified IFRS and generally accepted accounting principles in Norway. The above table
shows the reclassifications made to the cash flow statement for 2023.
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Wallenius Wilhelmsen – Annual Report 2024 227
Note 12. Events after the balance sheet date
Dividend
On February 11, 2025, the board of directors approved a dividend payment linked to
the second half of 2024 of USD 1.24 per share corresponding to USD 524 million in
total. The dividend consists of an ordinary dividend based on 50 percent of the
company's net profit and an extraordinary portion based on the company's strong
financial position.
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Wallenius Wilhelmsen – Annual Report 2024 228
Alternative performance
measures
Definitions of Alternative Performance Measures (APMs)
This section describes the non-GAAP financial alternative performance measures
(APM) that are used in the quarterly and annual reports.
The following measures are not defined nor specified in the applicable financial
reporting framework of IFRS. They may be considered as non-GAAP financial
measures that may include or exclude amounts that are calculated and presented
according to IFRS. These APMs are intended to enhance comparability of the
results and cash flows from period to period and it is the group’s experience that
these are frequently used by investors, analysts and other parties. Internally, these
APMs are used by management to measure performance on a regular basis. The
APMs should not be considered as a substitute for measures of performance in
accordance with IFRS..
EBITDA is defined as total revenue less operating expenses. EBITDA is used as an
additional measure of the group’s operational profitability, excluding the impact
from financial items, taxes, depreciation and amortization and impairment/
(reversal of impairment).
EBITDA adjusted is defined as EBITDA excluding items in the result which are not
regarded as part of the underlying business. Examples of such items are
restructuring costs, gain/loss on sale of vessels and other tangible assets and
other income and expenses which are not primarily related to the period in which
they are recognized.
EBIT is defined as total revenue less operating expenses, other gain/loss and
depreciation, amortization and impairment/(reversal of impairment). EBIT is used
as a measure of operational profitability excluding the effects of how the
operations were financed, taxed and excluding foreign exchange gains & losses.
EBIT adjusted and profit/(loss) for the period adjusted is defined as EBIT/profit/
(loss) for the period adjusted excluding items in the result which are not regarded
as part of the underlying business. Example of such items are restructuring costs,
gain/loss on sale of vessels and other tangible assets, impairment, other gain/loss
and other income and expenses which are not primarily related to the period in
which they are recognized.
Capital employed (CE) is calculated based on the average of total assets less total
liabilities plus total interest-bearing debt for the last twelve months. CE is
measured in order to assess how much capital is needed for the operations/
business to function and evaluate if the capital employed can be utilized more
efficiently and/or if operations should be discontinued.
Return on capital employed (ROCE) adjusted is based on last twelve months EBIT
adjusted divided by capital employed. Adjusted ROCE is used to measure the
return on the capital employed without taking into consideration the way the
operations and assets are financed during the period under review. The group
considers this ratio as appropriate to measure the return of the period.
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Wallenius Wilhelmsen – Annual Report 2024 229
Total interest-bearing debt is calculated as the end of period sum of non-current
interest-bearing loans and bonds, non-current lease liabilities, current interest-
bearing loans and bonds and current lease liabilities. The group considers this a
good measure of total financial debt.
Net interest-bearing debt (NIBD) is calculated as the end of period total interest-
bearing debt less the end of period cash and cash equivalents. The group
considers this a good measure of underlying financial debt.
NIBD/EBITDA adjusted (leverage ratio) is calculated based on the end of period net
interest-bearing debt divided by the rolling last twelve months of EBITDA adjusted.
The group considers this a good measure of leverage as it indicates how many
years of EBITDA adjusted, being a proxy for normal cash flow from operations, is
needed to cover the NIBD.
Reconciliations of alternative performance measures
Net interest-bearing debt
USD million Dec 31, 2024 Dec 31, 2023
Non-current interest-bearing loans and bonds 1,438 1,897
Non-current lease liabilities 1,092 1,097
Current interest-bearing loans and bonds 338 406
Current lease liabilities 283 313
Total interest-bearing debt 3,151 3,713
Less cash and cash equivalents 1,393 1,705
Net Interest-bearing debt 1,758 2,007
Net interest-bearing debt divided by last twelve months adjusted EBITDA (leverage
ratio)
USD million Dec 31, 2024 Dec 31, 2023
Net Interest-bearing debt 1,758 2,007
Last twelve months adjusted EBITDA 1,901 1,807
Net interest-bearing debt/adjusted EBITDA ratio 0.9x 1.1x
Equity ratio
USD million Dec 31, 2024 Dec 31, 2023
Total equity 3,321 3,080
Total assets 8,400 8,543
Equity ratio 39.5 % 36.0 %
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Wallenius Wilhelmsen – Annual Report 2024 230
Reconciliation of total revenue to EBITDA and EBITDA adjusted
USD million 2024 2023
Total revenue 5,308 5,149
Operating expenses (3,438) (3,342)
EBITDA 1,869 1,807
EBITDA Shipping services 1,561 1,527
Loss/(gain) on sale of vessel (32) -
Anti-trust expense/ (reversal of expenses) 32 -
EBITDA adjusted Shipping services 1,561 1,527
EBITDA Logistics services 197 174
EBITDA adjusted Logistics services 197 174
EBITDA Government services 183 130
Loss/(gain) on sale of vessel - -
EBITDA adjusted Government services 183 130
EBITDA holding/eliminations (72) (25)
Loss/(gain) on sale of vessel 32 -
EBITDA adjusted holding/eliminations (40) (25)
EBITDA adjusted 1,901 1,807
Reconciliation of Total revenue to EBIT and EBIT adjusted
USD million 2024 2023
EBITDA 1,869 1,807
Depreciation and amortization (580) (577)
Impairment (1) (5)
EBIT 1,289 1,225
Anti-trust expense/(reversal of expense) 32 -
Impairment 1 5
Total adjustments 33 5
EBIT adjusted 1,321 1,229
Profit for the period 1,065 974
Total adjustments 33 5
Profit for the period adjusted 1,098 978
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Wallenius Wilhelmsen – Annual Report 2024 231
Reconciliation of total assets to capital employed and ROCE calculation
Last twelve months average
USD million 2024 2023
Total assets 8,561 8,404
Less Total liabilities 5,404 5,368
Total equity 3,156 3,036
Total interest-bearing debt 3,473 3,850
Capital employed 6,629 6,885
EBIT last twelve months adj 1,321 1,229
ROCE (adjusted) 19.9 % 17.9 %
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Wallenius Wilhelmsen – Annual Report 2024 232
