ANNUAL
REPORT 2024
Board of Directors' report
Contents
Introduction
3
About the report
4
Key figures
5
Highlights of the year
7
Key events
9
About Color Group
11
This is Color Group
12
Corporate governance
17
Sustainability
20
General information
22
Environmental information
39
Social information
80
Governance information
100
ESRS Appendix
108
Financials
117
Comments on the financial statements
118
Consolidated financial statements
121
Parent company financial statements
151
Appendices
165
Report on corporate governance
166
Statement from the Board and CEO
168
Auditor’s report
169
Auditor's limited assurance report
172
Photo: Anders Martinsen, Arild Danielsen, Color Line AS,
Gettyimages, Glenn Walmann, Håvard Storvestre,
Jarle Nyttingnes, Jon Erik Andersen, Michael Damsgaard,
Octocopter Film, Trine Hisdal, Vibeke Scheel Aubert,
Øivind Haug og Øyvind Ganesh Eknes.
Color Group Annual Report 2024Color Group Annual Report 2024
22
INTRODUCTION
About the report
4
Key figures
5
Highlights of the year
7
Key events
9
Color Group Annual Report 2024Color Group Annual Report 2024
33 IntroductionIntroduction Introduction
ABOUT
THE REPORT
COLOR GROUPS ANNUAL REPORT FOR 2024
This report constitutes the statutory Annual Report in accordance
with Norwegian requirements for Color Group AS for the year ending
31 December 2024. The report is filed with the Norwegian Register
of Company Accounts. The version prepared in accordance with the
European Single Electronic Format (“ESEF”), filed with the Oslo Stock
Exchange (“Euronext Oslo Børs”), is the official version of the Company’s
Annual Report, and the ESEF version prevails in case of any questions or
conflicts with other versions.
This report presents the
• The Board of Directors’ report, consisting of the sections 'About Color
Group' 'Sustainability' and 'Comments on the financial statements'
• Consolidated financial statements for the Group
• Parent company financial statements for Color Group AS
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44 IntroductionIntroduction | About the reportIntroduction | About the report
2024 2023 2022 2021 2020
Key activity data
Vessels 5 5 7 7 7
Number of sailings 4 670 4 557 5 793 3 803 3 377
Passengers 3 675 249 3 548 821 3 599 293 1 143 480 1 255 046
Freight units (12m-equivalents) 157 121 179 133 189 658 180 850 174 068
2024 2023 2022 2021 2020
2024 (in EUR million)
Financials (NOK million)
Total operating income 6 684 6 306 5 752 2 614 2 583 566
EBITDA 1 391 1 399 1 222 211 -47 118
Operating profit 808 819 598 -386 -708 68
Profit for the period 486 358 282 -458 -936 41
Total assets 9 016 8 922 8 797 9 514 10 039 764
Total equity 2 087 1 687 1 641 1 373 1 545 177
Equity ratio (%) 23 19 19 14 15
Available liquidity 1 741 1 100 760 720 700 148
Net interest-bearing debt 3 613 3 749 4 404 5 371 5 735 306
KEY FIGURES
20242023202220212020
1 3911 399
1 222
221
(47)
20242023202220212020
3 613
3 749
4 404
5 371
5 735
EBITDA
NOK million
NET INTEREST-BEARING DEBT
NOK million
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2024 2023 2022 2021 2020
Key data Sustainability
Scope 1 emissions
1
tCO
2
e 346 399 345 474 397 545 296 314 296 444
Scope 2 emissions (location) tCO
2
e 1 827 2 041 1 956 1 923 2 204
CO
2
e intensity of fleet (cgDIST) gCO
2
/GT × nm 12.2 12.2 13.3 14.2 13.8
Total energy consumption MWh 1 288 849 1 284 419 - - -
Employees end of year - total FTE 2 191 2 176 2 125 1 425 1 597
Ratio of seafaring/land-based employees in total workforce % FTE 77 / 23 77 / 23 78 / 22 72 / 28 72 / 28
Ratio of women/men in total workforce % FTE 43 / 57 42 / 58 42 / 58 44 / 56 46 / 54
Ratio of women/men in management positions % FTE 30 / 70 34 / 66 31 / 69 29 / 71 28 / 72
Absence due to sickness % 7.0 6.9 7.3 8.7 8.5
Total recordable injury rate (TRIR) employees Incident per million hours 25.28 26.16 - - -
1
Corrected 2023 number due to a reporting error in the 2023 report, see ESRS 2 for explanation.
KEY FIGURES
20242023202220212020
12.212.2
13.3
14.2
13.8
RATIO OF SEAFARING/
LAND-BASED EMPLOYEES
IN TOTAL WORKFORCE
%FTE
RATIO OF WOMEN/
MEN IN TOTAL
WORKFORCE (FTE)
%FTE
RATIO OF WOMEN/
MEN IN MANAGEMENT
POSITIONS (FTE)
%
CO
2
E INTENSITY OF FLEET (CGDIST)
gCO
2
/GT × nm
77% seafaring
23% land-based
43% women
57% men
30% women
70% men
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HIGHLIGHTS OF THE YEAR
Color Group enjoyed yet another strong year in 2024, realizing solid financial results due to continued
high demand, cost-effective operations and stable production on all routes. The positive results
further differentiate the company within a highly competitive industry, and support Color Group’s
long-term strategic direction in relation to both the green transition and the digital transformation.
Despite continued high levels of geopolitical
uncertainty and macroeconomic volatility, Color
Group reported earnings before interest, taxes,
depreciation and amortization (EBITDA) of
NOK 1.4 billion for 2024, having carried a total of
3.7 million passengers and 160 000 freight units
(12m equivalents).
Color Group’s financial performance comes as
a result of years of continuous improvement
and optimization of its product portfolio and
operations both at sea and on land. With its fleet
of custom-built ships and motivated staff, Color
Group offers high-quality products and services
at competitive price levels for passengers and
freight customers on routes between Norway,
Denmark, Germany and Sweden.
In 2024, Norway’s rising popularity as a destina-
tion continued to increase demand from Europe
for Color Group’s activities during both the
summer and winter seasons, offsetting the nega-
tive impact of the weak Norwegian currency on
domestic business. However, cargo operations
experienced softening demand in 2024 due to
weak levels of European cross-border trade.
Color Group’s business model and purpose is
to serve as a bridge between the Norwegian
peninsula and Northern Europe for both passen-
gers and cargo, with daily, year-round services
offering customers a high degree of quality,
flexibility and predictability. This builds on long-
standing traditions in Norway, with exciting
prospects going forward as several of the
greatest challenges of our time also represent
commercial opportunities for sea transport.
However, as the only shipping company
operating in international freight and passenger
transport to and from Norway using Norwegian-
registered ships crewed largely by Norwegian
personnel, Color Group is dependent on
competitive domestic framework conditions.
These have been significantly weakened in
recent years, creating a widening gap between
Norway and other seafaring nations that gives
cause for concern over Norway’s future position
as a major maritime power.
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PREPARING FOR THE
'TWIN REVOLUTION'
Color Group took several significant steps in
2024 in preparation for the green transition
and the digital transformation. All aspects of
our operations are being affected by tightening
environmental regulatory demands, both in
Europe and internationally, together with fast-
paced digital development within systems, cloud
services, sensor technology and artificial intelli-
gence. This requires the company to plan for a
parallel 'twin revolution' over the coming years.
With its modern fleet and shorter international
routes, Color Group has a relatively high degree
of optionality in relation to decarbonization. This
allows Color Group to assess and explore alter-
natives to conventional fuels, and the company
has gained invaluable know-how and operational
experience after launching M/S Color Hybrid
as the world’s largest plug-in hybrid ship on the
route between Norway and Sweden in 2019.
The digital transformation offers significant
opportunities to tailor and personalize Color
Group’s offering throughout the customer
journey, and for strategic partnerships along the
long and varied value chain of the travel industry.
It will also enable Color Group to further increase
its cyber-security, lift performance and reduce
costs. During 2024, Color Group established a
detailed digital transformation roadmap which
covers all aspects of the business and provides
the company with a firm starting point for the
next phase of its digital journey.
Based on strong performance and firm cost
control, Color Group demonstrated yet again
in 2024 its ability to continually improve and
renew its customer offering in accordance with
evolving requirements and expectations. Going
forward, Color Group’s aim is to continue to
meet demands and exceed expectations, while
preparing the next steps of its journey through
the green transition and digital transformation.
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88 IntroductionIntroduction | Highlights of the yearIntroduction | Highlights of the year
KEY EVENTS
M/S Color Fantasy
went into dock.
Work included complete
renovations of the
Oceanic à la Carte,
Fashion Boutique
and Teens Plaza,
and silicone-based
low-friction hull
coating was applied
for increased
energy efficiency.
M/S SuperSpeed 1
went into dock. Work
included installation
of the Starlink satellite
system to increase
internet speed,
and renewal of the
bridge equipment.
The Starlink satellite
system was installed on
M/S SuperSpeed 2, as
the last ship in the fleet.
As part of Color Line’s
continuous product
renewal, M/S Color
Fantasy installed a
new “Wave Truck”
kiosk on the sun deck.
There was a large-
scale exercise on
M/S SuperSpeed 2 and
at our terminal in Larvik
in collaboration with
Larvik Municipality.
Roll-out began of
Color Line Cargo’s
new booking system,
which was completed
on all routes over the
course of the year.
M/S Color Magic
went into dock. Work
included an upgrade
of the conference
center and renewal of
the bridge equipment.
An agreement was
signed to upgrade and
modernize the scrubber
systems (exhaust gas
cleaning) on four ships.
JANUARY FEBRUARY MARCH APRIL M AY JUNE
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Celebrating the 50th
anniversary of 2nd
engineer Olav Nestande
on the Oslo–Kiel route.
M/S Color Fantasy
hosted the largest
ever conference group
of 550 employees
from NorEngros.
M/S Color Hybrid
turned 5 years old.
Completed shooting film
using drone on board
M/S Color Fantasy.
The film gives a unique
presentation of the
facilities on board.
A wreath-laying cere-
mony at Color Hotel
Skagen in celebration
of the construction of
32 new and energy-
efficient hotel rooms
that will be ready in
the summer of 2025.
Large-scale exercise
on M/S Color Fantasy
in collaboration with
the Norwegian Coastal
Administration, the
Directorate for Civil
Protection, the Joint
Rescue Coordination
Centers, Oslo Fire and
Rescue and Bergen
Fire and Rescue.
Celebration of the
20th anniversary of
M/S Color Fantasy.
A record number of
guests travelled with the
Company in December.
JULY AUGUST OCTOBER NOVEMBER DECEMBER
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Part of the Board of Directors’ report
ABOUT
COLOR GROUP
This is Color Group
12
Corporate governance
17
Color Group Annual Report 2024
11 About Color GroupAbout Color Group
Part of the Board of Directors’ report
THIS IS COLOR GROUP
BUSINESS AND STRATEGY
Color Group’s main business activities, operating under
the name 'Color Line', consist of international transport of cargo
and passengers, together with related service offerings. This
activity is managed by the company’s fully-owned subsidiary Color
Line AS. The Group also owns and operates the 4-star Color Hotel
Skagen in Denmark.
Color Group AS was established in 1990 and is Norway's largest
and one of Europe's leading cruise and transport companies. Color
Line operates a fleet of five custom-built RoPax vessels trans-
porting passengers and cargo on four international routes between
seven ports in Norway, Denmark, Germany, and Sweden. The
company employs around 3 000 people (2 191 full-time equivalents)
in four countries.
Color Group provides daily, year-round services between the four
Norwegian ports of Oslo, Sandefjord, Larvik and Kristiansand,
and one port in each destination country – Hirtshals in Denmark,
Strömstad in Sweden and Kiel in Germany. In 2024, the company
transported around 3.7 million passengers and 160 000 cargo units
(12m equivalents).
The company operates the sister ships M/S Color Fantasy and
M/S Color Magic on the Oslo–Kiel route, which remain the largest
Color Group AS ('Parent Company') together with
all subsidiaries constitutes the consolidated group
('Color Group' or 'the Group').
Color Group AS is a Norwegian limited company
headquartered in Norway at Bryggegata 3, Oslo.
The company’s main activities include ownership
management and central finance functions for the
Group. Color Group AS is fully owned by ONS Invest
II AS, which in turn is fully owned by Board Director
Olav Nils Sunde and his family.
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Part of the Board of Directors’ report
vessels in the world within their category, offering a full cruise
experience between Norway and mainland Europe. The sister
ships M/S SuperSpeed 1 and M/S SuperSpeed 2 operate between
the Norwegian ports of Kristiansand and Larvik and Hirtshals in
Denmark, providing highly efficient transport solutions. On the
'shortcut to Sweden' between Sandefjord and Strömstad, Color
Group operates M/S Color Hybrid, which was launched as the
world’s largest plug-in hybrid ship in 2019.
With more than three-quarters of its people employed at sea, Color
Group ranks among the biggest employers of Norwegian maritime
personnel. The company regards its people as its most valuable
asset, and the high level of customer satisfaction and loyalty the
company enjoys is primarily attributable to the commitment,
motivation and expertise of its employees. Color Group prioritizes
health, safety and the environment, and works to secure a strong
and positive corporate culture. The Group has a zero-tolerance
policy towards behavior and incidents in breach of the company’s
strategy for safety and health, including bullying and harass-
ment. Color Group takes active steps to strengthen diversity by
increasing the proportion of female employees within the company
and the maritime industry in general.
Color Group creates value through the payment of taxes and duties
to the authorities, remuneration to its employees and, indirectly,
through the purchase of goods and services from various suppliers
and service providers in Norway and destination countries. Color
Group is one of the Nordic region’s most important travel and
tourism operators and plays a major role in the development of
year-round activity both in Norway and its destination countries.
Color Group’s has as its purpose to utilize the sea to provide a bridge
between the Norwegian peninsula and its neighboring countries.
Based on tailored, high-quality services for both passengers and
cargo, the company continuously develops and renews its product
portfolio to ensure efficient, reliable, safe, modern and comfortable
operations across customer segments on all routes. Ensuring
that guests have a great customer experience is central to Color
Group’s business model and is integrated in the company’s values
and culture. The company has measures in place to provide positive
customer experiences, including training for all employees engaged
in interaction with customers, building a customer-centric culture
and conducting customer surveys to receive relevant feedback as
part of the company’s policy of continuous improvement.
Color Group aims to gradually transform all its operations in
line with the ambition to achieve a low-carbon society, while
utilizing new opportunities arising from digitalization to enhance
cyber- security, reduce costs and improve customer experiences.
(For details on Color Group’s ESG strategy and follow-up, see
'General information').
OUR VALUES
Inspirator Role model Driving force
WE CARE WE BUILD TRUST WE FORGE AHEAD
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BUSINESS MODEL
AND VALUE CHAIN
Color Group’s business model revolves around its
five RoPax-ships offering high-frequency services
for passengers and cargo between Norway and
neighboring countries in Northern Europe, as
well as operation, of the Color Hotel Skagen in
Denmark. These daily, year-round services require
a broad range of input factors and result in a wide
variety of outcomes. Operations also depend on
several support functions across the value chain,
ranging from procurement and IT-services to
logistics and waste management.
• Production of interior
decoration and input factors
• Yard and maintenance services
• Ship building and port development
• Extraction and production of fuel and energy
• Operation and maintenance of ships
(fuel and energy consumption)
• Contracting of ships and port development
• Resale and reuse of interior decorations,
technical spare parts and other input factors
• Transport (passengers, cargo and goods)
• Production of food, drinks, cosmetics,
clothing and other retail goods
• Production of goods for hotel operation
• Travel and tourism
• Local community value creation
• Transport of passengers and cargo
• Consumption of retail products
DOWNSTREAMUPSTREAM
Shipyard services: Northern Europe
Technical procurement: Central and Northern Europe
Commercial procurement: Europe, South America
Customer base: Northern Europe
Cargo origins: Europe
Route destinations: Norway, Denmark, Sweden and Germany Cargo destinations: Europe
Passenger destinations: Central and Northern Europe
OWN ACTIVITY
• Transport of cargo, people and private vehicles
• Restaurant and bars (food and beverage)
• Shops and outlets (cosmetics,
food, drinks, clothing and other retail products)
• Casino, spa and entertainment
• Hotel services (on board and
Color Hotel Skagen)
• Customs services
• Port and terminal handling
MARITIME TECHNICAL OPERATION AND MAINTENANCE
PASSENGER AND CARGO TRANSPORT AND ACCOMODATION
MAIN GEOGRAPHICAL AREAS
SUPPORT OPERATIONS
• Administration,
crewing, sales and
marketing
• IT infrastructure
• Procurement
• Waste
management
• Logistics and storage
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BUSINESS STRUCTURE
Color Group’s management is comprised of its CEO, CFO and Finance Manager, while its fully-owned
subsidiary Color Line is organized into four business areas and six staff and support functions:
Commercial areas onboard
Responsible for creating uniform, attractive
and service-supported travel, hotel and retail
experiences onboard the ships.
Commercial areas onshore
Responsible for sales and marketing,
conceptualization and making the shipping
company’s capacity available.
Cargo
Responsible for sales, handling and follow-up of
freight and customs clearance-related products.
Maritime
Responsible for operating and maintaining the
shipping company’s five ships, port and tonnage
development, as well as process responsibility
when new ships are contracted.
Staff and support functions
Include dedicated departments within the
areas of economy, IS/IT, human resources,
sustainability and compliance, communication
and public relations, and strategy and business
development.
Each department is represented by an Executive
Vice President (EVP) within Color Line’s executive
management headed by Color Line’s President and CEO
While the directors have overall responsibility within
the four business areas, the individual staff and support
functions are responsible for managing and controlling
their respective areas of responsibility and for providing
assistance to the business areas, the President and CEO
and the Board of Directors. Both Color Group and Color
Line are headquartered in Oslo.
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OSLO
SANDEFJORD
LARVIK
KRISTIANSAND
HIRTSHALS
KIEL
STRÖMSTAD
Part of the Board of Directors’ report
FLEET
Build year: 2008 (2011)
Tonnage: 36,822 GRT
Length: 211.3 metres
Beam: 26 metres
Draft: 6.5 metres
Max. capacity: 2,400
Passenger cars: 750
Trailers lane metres: 1,990
M/S SUPERSPEED 1
KRISTIANSAND–HIRTSHALS
CRUISE,
TRANSPORT
AND CARGO
TRANSPORT
AND CARGO
Build year: 2004
Tonnage: 75,027 GRT
Length: 224 metres
Beam: 35 metres
Draft: 6.8 metres
Max. capacity: 2,605 persons
Passenger cars: 750
Trailers lane metres: 1,270
Build year: 2007
Tonnage: 75,100 GRT
Length: 224 metres
Beam: 35 metres
Draft: 6.8 metres
Max. capacity: 2,812 persons
Passenger cars: 550
Trailers lane metres: 1,270
M/S COLOR FANTASY
OSLO–KIEL
M/S COLOR MAGIC
OSLO–KIEL
Build year: 2008
Tonnage: 33,500 GRT
Length: 211.3 metres
Beam: 26 metres
Draft: 6.5 metres
Max. capacity: 2,000
Passenger cars: 764
Trailers lane metres: 2,036
M/S SUPERSPEED 2
LARVIK–HIRTSHALS
Build year: 2019
Tonnage: 27,000 GRT
Length: 160 metres
Beam: 27.10 metres
Draft: 6.0 metres
Max. capacity: 2,000
Passenger cars: 500
Trailers lane metres: 760
M/S COLOR HYBRID
SANDEFJORD–STRØMSTAD
Build year: 1968–2001
Adress: Gl. Landevej 39,
9990 Skagen
Size: 149 rooms
Max. capacity: 400 guests
Facilities: Conferences,
functions, restaurant, café, bar,
gardens, outdoor heated
swimming pool, spa, sauna
and fitness room
COLOR HOTEL SKAGEN 4-star hotel
SKAGEN, DENMARK
COLOR
HOTEL
SKAGEN
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Part of the Board of Directors’ report
CORPORATE GOVERNANCE
GOVERNANCE MODEL
Color Group’s purpose is to utilize the sea to provide a
bridge between the Norwegian peninsula and its neigh-
boring countries for people and cargo, which requires
that the company protects and enhances stakeholder
value through profitable development in a long-term
perspective.
Good governance and corporate management reduce
Color Group’s business-related risk, and the company
strives to utilize its resources in an effective and
sustainable manner. Color Group safeguards its goals
through further development of competence centers,
deliveries of market-leading systems, products and
services across its market segments and throughout
the customer journey, and by operating in an ethical,
sustainable and socially responsible manner.
Color Group has bond loans listed on the Oslo Stock
Exchange and is subject to Norwegian securities legis-
lation and stock exchange regulations. Color Group
reports its policies and practice on corporate govern-
ance in accordance with Section 2-9 of the Norwegian
Accounting Act (Also see 'Report on Corporate
Governance').
OWNERS BOARD MANAGEMENT
Annual general
assembly meeting
The general assembly elects the company’s
Board of Directors, which shall consist of
3 to 8 members. Personal deputies may be
elected for the Board members.
Audit
Committee
The Board decides in all significant matters
and has overall responsibility for the
strategy and management of The Group.
Management Color Group
1
1
Responsible for both financial and sustainability audit matters.
Corporate Executive
Management Color Line
Strategy and operational management.
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Part of the Board of Directors’ report
MANAGEMENT
COLOR GROUP
BOARD COLOR GROUP CORPORATE EXECUTIVE MANAGEMENT COLOR LINE
Chairman
Morten Garman
CFO
Bjørn Paulsen
Finance Director
Christian Arndt
Director
Olav Nils Sunde
Director
Camilla Sunde
CEO
Olav Nils Sunde
President & CEO
Trond Kleivdal
EVP
Human Resources
Einar Monstad
EVP
Strategy & Business
Development
Boge Gulbrandsen
EVP
Economy
Mette Krabberød
EVP
Communication
& Public Affairs
Erik Brynhildsbakken
EVP
Sustainability
& Compliance
Anette Aaser-Stene
EVP
Chief Information Officer
Brage Galtestad
EVP
Commercial & Hotel
Operation on board
Thomas Gudbjerg
EVP
Cargo
Trond Tønjum
EVP
Sales & Marketing
Marianne Borchgrevink
EVP
Technical Maritime
Operation
Per Erik Olsen
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GOVERNANCE PRACTICES
Color Group’s Board of Directors is responsible for the Group’s risk
management strategy, framework conditions and processes, and
adopts decisions around risk management and internal control
systems in consultation with the Audit Committee. Color Group is
committed to having effective processes in place to ensure compli-
ance with applicable laws, regulations and industry standards.
The executive management group of subsidiary Color Line is
responsible for day-to-day risk management, and for developing
the systems around monitoring and managing risk within the
business. Color Line has a compliance function which is organized
independently of the business units, and reports in parallel both to
Color Line’s President and CEO and to the Board of Directors.
The compliance function focuses on ensuring monitoring and
follow-up of relevant national and international legislations and regu
-
lations, as well as making sure the company’s internal guidelines are
followed. Work is conducted on a continuous basis to assess the best
possible adaptation to new regulations and new rules to safeguard
both compliance and the effectiveness of the organization. New
rules and regulations are implemented through Color Line’s steering
documents and procedures. A continuous focus on significant
compliance risks by the management serves to strengthen compli
-
ance and increase awareness within the enterprise.
The company is a member of several boards and committees,
which enables it to play an active role in discussions around frame-
work conditions, legislative issues and changes within the industry.
Memberships include the Norwegian Shipowners’ Association,
the Norwegian Logistics and Freight Association, the Foundation
for Norwegian Maritime Expertise, the Nordic Committee
for Passenger Ships, Interferry and DNV’s Ferry Committee.
Furthermore, the company is represented in the Norwegian-
German Chamber of Commerce and the Trade Council for
Germany, and in the network-based Norwegian Tourism Partners.
RISK MANAGEMENT AND
INTERNAL CONTROL
Color Group is exposed to various forms of risk and therefore
strives to maintain a healthy balance between the company’s
overall risk exposure and risk-bearing capacity. Color Group
routinely performs risk analyses in connection with major invest-
ments and contracts, strategic initiatives and when businesses are
acquired or sold, and as required based on risk assessments.
Handling risk forms an integral part of Color Group’s business
management and strategy. The function of Color Group’s risk and
control management is to minimize risk and identify potential
opportunities. The executive management of Color Line has the
delegated responsibility for day-to-day risk management and devel-
opment of monitoring systems.
The Board conducts an annual review of the company's internal
control procedures and monitors the main areas of risk on a contin-
uous basis. Color Group is committed to having effective processes
in place to ensure compliance with applicable laws, regulations and
industry standards. The compliance function focuses on ensuring
that applicable national and international laws and regulations, as
well as the company’s internal guidelines, are followed. Compliance
risk in this respect refers to the risk of Color Group incurring legal
or regulatory sanctions, suffering financial loss or reputational
damage as a consequence of failure to comply with laws, regula-
tions or governing documents.
Governing documentation is handled systematically in subsidiary
Color Line's quality system, which ensures both access manage-
ment, change logging and deviation processing in relation to
documented routines and guidelines, as well as input for improve-
ments. This is an important part of the company’s ongoing learning
and improvement work. The respective executive vice presidents in
Color Line are responsible for both implementation and follow-up
of governing documents. Deviations from policies and procedures
are documented and followed up through the quality system to
ensure an effective and functional framework for compliance.
Color Group performs regular assessments of relevant risk
elements and reports measures and actions to the Board of
Directors as and when appropriate.
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SUSTAINABILITY
General information
22
Environmental information
39
Social information
80
Governance information
100
ESRS Appendix
108
Color Group Annual Report 2024
2020 SustainabilitySustainability Sustainability
Part of the Board of Directors’ report
For 2024, Color Group’s sustainability statement
is presented in alignment with the requirements of
the Corporate Sustainability Reporting Directive
(CSRD) and the European Sustainability Reporting
Standards (ESRS).
Color Group’s CSRD disclosures are included within the sustainability statement,
in other sections of the annual report and in appendices commensurate with the
company exercising the option of incorporation by reference. The disclosures
outside of the statement are referenced within the sustainability statement. Color
Group has chosen to exclude voluntary and phase-in disclosures for 2024. In
future, the company will include these disclosures when applicable and relevant.
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GENERAL
INFORMATION
Basis for preparation
23
Sustainability governance
24
Management of sustainability risk
26
Statement on due diligence
27
Sustainability strategy
28
Stakeholder engagement
30
Double materiality assessment
31
Material impacts, risks and opportunities
33
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BASIS FOR PREPARATION
ESRS 2 BP-1 General basis for preparation of the sustainability statement
The sustainability statement includes information for Color Group
and all of its subsidiaries, and has been prepared on the same
consolidated basis as the 2024 financial statements for Color
Group.
The double materiality assessment described in IRO-1 includes
impacts, risks and opportunities relating to Color Group’s own oper-
ations, together with its upstream and downstream value chain. For
policies, actions, metrics and targets, the scope is described in the
topical sections.
No information corresponding to intellectual property, know-how
or the results of innovation has been omitted from the sustain-
ability statement. No exemptions from disclosure of impending
developments or matters still under negotiation have been applied.
ESRS 2 BP-2 Disclosures in relation to specific circumstances
Changes in the preparation or presentation
of the sustainability statement
For the 2024 reporting year, the sustainability information
reported by Color Group has been compiled in compliance with the
CSRD. This includes:
• A sustainability statement in accordance with the requirements
of the ESRS.
• Descriptions of material impacts, risks and opportunities, as well
as policies, actions, metrics and targets as required by the ESRS
and a double-materiality assessment performed in accordance
with the ESRS.
• An updated climate risk analysis to meet the requirements of the
ESRS.
• An updated greenhouse gas emissions metric with new calcula-
tion methods for Scope 3 in accordance with the GHG protocol
and the ESRS.
Reporting errors in prior periods
Color Group has identified a few minor errors in the calculation
of Scope 1 emissions in 2023, resulting in a reporting error of
5 091 tCO
2
e, a reduction of 1.5%. This error is not material, but
the company has nevertheless chosen to report the error since it
concerns a critical metric.
Updating disclosures about events after
the end of the reporting period
Information on material events that occurred after the 2024
reporting period and prior to the publication date have been
included where relevant.
Estimation of metrics
Where metrics have been estimated, the methodology and corre-
sponding level of accuracy are described in the relevant accounting
policy or in the associated text.
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SUSTAINABILITY GOVERNANCE
ESRS 2 GOV-1 The role of the administrative, management and supervisory bodies
ESRS 2 GOV-2 Information provided to and sustainability matters addressed by
the undertaking’s administrative, management and supervisory bodies
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive
schemes
Responsibility for sustainability matters in Color Group resides with
the Board of Directors, which has delegated authority in this area
to the President and CEO of Color Line and his executive manage-
ment team.
Sustainability targets are included in the strategic objectives, with
efforts and target achievement tracked as part of operational
management. The variable portion of management compensation
is determined according to the organization's performance, taking
into account sustainability objectives as part of the evaluation
criteria. However, explicit compensation parameters directly linked
to specific sustainability goals have not been established.
The Board and the Audit Committee receive regular updates
on material sustainability information and have approved this
sustainability statement and the material topics identified in the
double-materiality analysis.
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Board of Directors
The Board of Directors has the overarching responsibility for the
Group’s risk management, strategy and internal control processes,
including sustainability matters. The Board receives updates from
the President and CEO of Color Line and his executive management
team on material sustainability matters on a quarterly basis.
At the end of 2024, the Board of Directors was comprised of the
Executive Chairman and two members, one of whom is a non-ex-
ecutive and independent member. One of three members of the
Board is female (33% female membership). There are no employee
representatives on the board.
The Board has general knowledge about sustainability issues, and
in-depth knowledge about material matters that are relevant for
Color Group.
Audit Committee
The Audit Committee is a sub-committee of the Board of Directors
and oversees the general risk management and internal controls in
Color Group, including those pertaining to sustainability concerns.
The Committee is also responsible for the Group’s external
reporting, while operational responsibility has been delegated to
the executive management of Color Line. The Audit Committee has
had close communication with relevant persons in the executive
management of Color Line regarding CSRD reporting process,
materiality assessments and the contents of the final report.
To leverage knowledge on ESG matters, the Audit Committee has
prioritized ESG as one of its primary focus areas in 2023 and 2024.
Its focus on strategic ESG-related topics has been aligned with the
overall ESG strategy, including climate change, safety, diversity,
equity and inclusion, and business conduct. The Audit Committee
oversees sustainability reporting, such as in connection with the
discussion of Color Group’s CSRD double materiality assessment.
To increase Committee members’ insight and expertise regarding
material impacts, risks and opportunity related to sustainability, the
Audit Committee has had several dedicated sessions on CSRD and
double-materiality assessment. Input to these sessions has been
prepared in collaboration with external CSRD specialists and an
independent auditor.
Corporate Executive Management Color Line
The ongoing strategic and operational responsibility for sustain-
ability has been delegated to the executive management of Color
Line. This involves setting sustainability targets in line with the
sustainability strategy and monitoring progress. The role of EVP
Sustainability and Compliance in Color Line was established in
2023, with dedicated responsibility for the sustainability strategy,
sustainability project program, sustainability reporting and to
support the executive management of Color Line in strategic and
operational sustainability efforts. The position reports directly
to the President and CEO of Color Line. Furthermore, EVPs
of each business area and support function are designated as
project owners for all of the respective projects in Color Line’s
Sustainability Program. The executive management is made up
of a variety of profiles in terms of knowledge and experience. All
members of the executive management have basic sustainability
knowledge and receive monthly ESG updates from the EVP
Sustainability and Compliance. Two of the EVPs are currently
pursuing an executive master-degree covering specific courses
within sustainable development and sustainable business model-
ling, alongside their professional role.
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MANAGEMENT OF SUSTAINABILITY REPORTING RISK
ESRS 2 GOV-5 Risk management and internal controls over sustainability reporting
Color Group’s sustainability reporting is exposed to the risk of significant inaccuracies due to
human error or incomplete data. To manage this risk, the company has implemented several
mitigating measures:
• Support, guidance and quality assurance in the preparation of the report from external
CSRD specialists (external audit and consulting firm).
• Limited assurance from external auditor (see assurance statement).
• Internal control mechanisms:
– Centralized responsibility for sustainability reporting has been delegated to the EVP for
Sustainability and Compliance in Color Line.
– Dedicated reporting teams for each ESRS, with internal control routines established
engaging both relevant directors and business unit EVPs in Color Line in quality assurance.
– Every datapoint is controlled by several members of the internal reporting project group.
• GHG emissions accounting is performed using specialized software to ensure verified emis-
sions factors and transparency of data.
• Accounting policies have been established for each topic in line with ESRS requirements.
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STATEMENT ON DUE DILIGENCE
ESRS 2 GOV-4 Statement on due diligence
The increasing complexity of regulatory requirements is challenging for many
companies with global supply chains. Color Group aims to further mature internal
processes over the coming years to ensure that human rights and environmental
considerations are fully integrated into the company’s due diligence processes
and ESG governance mechanisms. Due diligence in Color Group is integrated into
several internal processes to identify, prevent and mitigate negative impacts
arising from the company’s operations and value chain. These processes include
material impacts assessment and value chain assessment of human rights impacts.
Please see the illustration of the group's ESG due diligence methodology:
1
Embed responsible business
conduct in operations
Color Group’s guiding documents
– the Employee Code of Conduct and
Supplier Code of Conduct, outline the
Core Values and policies.
2
Identify and assess material impacts
Material impacts are identified through
the DMA, based on engagement with
both internal and external stakeholders.
See double materiality assessment
See stakeholder engagement
4
Track implementation and results
Color Group measures progress
and tracks performance against
strategic targets through KPI- and
ESG projectprogram reporting.
See sustainability strategy
5
Communicate how impacts
are addressed
Color Group communicates
progress across ESG categories
as part of the Annual Report
and through participation
in selected ESG ratings.
See sustainability strategy
3
Cease, prevent or mitigate impact
Material impacts are managed through
the company’s ESG projectprogram and
through various cross-functional processes,
providing for remediation when appropriate.
See relevant sustainability chapters
See sustainability governance
Approach to ESG due diligence
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SUSTAINABILITY STRATEGY
ESRS 2 SBM-1 Strategy, business model and value chain
For a description of the Group business strategy and
business model, see 'This is Color Group'.
The company has chosen to prioritize eight of the UN’s
Sustainable Development Goals (SDGs), on which the
company will maintain a particular focus in its own
sustainability work. These are areas in which Color
Group can help to make a positive difference. The
targets cover climate, environmental, social and govern-
ance issues. Taking the prioritized SDGs as its point of
departure, subsidiary Color Line has moreover struc-
tured its sustainability strategy within seven strategic
focus areas reflecting the entire scope of the company’s
business within transport, freight shipment, travel and
tourism and retail sales, local value creation, diversity
and social inclusion.
The focus areas 'Towards emission-free operations' and
'Blue ocean, green solutions' encompass climate and
environmental issues, while 'Great experiences, small
footprints' highlights the travel and tourism dimension.
'Our people is our most important asset' focuses on
the company’s role as an employer, 'Responsible
procurement, consumption and waste management'
on purchasing, consumption and the circular economy.
1. Towards emission-free operations
Promoting renewable energy solutions and climate-efficient operations
2. Blue ocean, green solutions
Safeguarding sustainable utilization of the ocean and the environment
3. Great experiences, small footprints
Being a catalyst for more sustainable travel and tourism
4. Our people is our most important asset
Offering an attractive and inclusive workplace with room for growth and development
5. Responsible procurement, consumption and waste management
Contributing towards responsible procurement and promote sustainable consumption and the circular economy
6. From road to sea
Providing safe and reliable transport and transferring more freight from road to sea
7. Stronger together
Driving cooperation and collaboration
ESG strategic focus areas
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'From road to sea' and 'Stronger together' focus respectively on
the transport function and collaboration across industry, business
and public agencies.
Color Group has defined sustainability-related activities, measures,
and goals within these seven strategic focus areas that the company
will emphasize going forward. The focus areas range from establishing
sustainable travel 'From A to Z' to securing responsible value chains,
reducing food waste, enhancing waste management, and promoting
diversity, equality, training and skills development. Many of the
measures will be based on active collaboration with other businesses,
authorities and civil society. The key to success lies in collective effort
through cross-industry collaboration with participants spanning
global suppliers and shippers, the travel and tourism industry, local
ports and authorities to organizations such as Bellona, Zero and NIVA
(Norwegian Institute for Water Research), as well as associations and
networks including the Norwegian Shipowners’ Association, the Green
Shipping Program and the Green Road Transport Program.
These seven areas of sustainability focus are supported by clear,
verifiable goals that are followed up and reported on internally.
Color Group also reports externally on the status and progress
made in its sustainability work in accordance with the CSRD,
thereby enabling investors, partners, customers and other stake-
holders to monitor Color Group’s performance to ensure its ESG
mission is undertaken in a sustainable manner.
STAKEHOLDER ENGAGEMENT
ESRS 2 SBM-2 Interests and views of stakeholders
Understanding the perspectives and needs of stakeholders is crucial to
the success of Color Group’s business, and to ensure a seamless tran
-
sition to more sustainable operations. Engagement with stakeholders
informs the company’s strategy and business model in several ways. It
helps Color Group create a positive work environment for employees,
find solutions to reduce emissions together with suppliers, and ensure
the company operates with a high level of integrity in all markets.
Employees across Color Group regularly engage with the compa-
ny’s various stakeholders. Engagement with key stakeholder
groups is anchored with the relevant business functions across
the company. The HR organization in subsidiary Color Line has
a particular responsibility to engage with employees, whereas
engagement with the financial stakeholders is anchored within
the finance organization in both Color Group and Color Line. The
Executive Management in Color Line receives regular updates
from the relevant business function directors on topics that are of
interest to and raised by various stakeholders.
The following table provides an overview of how Color Group
engages with stakeholders, the purpose of these engagements and
how stakeholder input is used in the company. The perspectives
and views of stakeholders inform the materiality assessment and
the due diligence process.
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Key stakeholders and engagement processes
Key stakeholders Engagement and purpose How stakeholder input is used
Customers The company engages with guests and cargo customers daily in
operations as a customer-centric organization, and through feedback
schemes after travel - continuously receiving feedback through
interactions.
-
Product and service improvements.
-
Adaptation of strategies.
-
Reduction in emissions related to guest behavior onboard the ships.
Employees The employees are the most important resource, and Color Group is
committed to providing an engaging, developing and inclusive workplace.
Color Group engages with employees in several ways, including through
employee representation, performance and development reviews,
training, surveys, and the whistle-blower channel.
-
Adaptation to strategies.
-
Product and service improvements.
-
Employee preferences and behavior.
-
Building a culture to be proud of.
-
High level of health and safety.
Suppliers The company is dependent on suppliers to achieve net-zero operations
and protect the human and working rights of workers in the value chain.
Color Group engages with suppliers through the supplier code of conduct,
memberships in a variety of trade organizations, and direct partnerships
with some key suppliers.
-
Adherence to the supplier code of conduct and procurement policy.
-
Risk assessment in line with the Norwegian Transparency Act.
-
Reduction in emissions in own operations and the supply chain.
Owner The owner receives regular updates through board meetings, the annual
reporting process, and general briefings.
-
Alignment on risk management, strategy, targets and performance.
Financial stakeholders
(investors, banks, etc.)
Color Group engages with financial stakeholders through annual reports,
regular presentations and briefings.
-
Securing financing.
-
Providing information on sustainability reporting to financial
stakeholders to meet their needs.
Regulators/authorities Color Group follows updates from regulators and other relevant public
authorities (such as the Norwegian government, the EU and the IMO).
-
Ensuring regulatory compliance with the markets in which the
company operates.
Color Group actively seeks input across stakeholder groups.
Examples include meetings with investors and partners to
understand their expectations of transparency and reporting
on ESG-related matters, and with suppliers to understand their
challenges and explore common commercial opportunities within
an ESG framework. Color Group also has a close dialogue with
port authorities on the topics of ESG performance expectations
and measures to improve both climate change mitigation and
adaptation in ports. In addition, the company participates in several
research partnerships to better understand impacts on the local
environment and ocean quality, as well as customer preferences on
the climate impact of future transport solutions. The interests of
employees are taken into account through interviews with repre-
sentatives from unions, and regular surveys covering everything
from employees’ expectations towards Color Group’s ESG work to
evaluations of experienced leadership.
Color Group ensures that the views and interests of affected
stakeholders regarding impacts, risks and opportunities are
communicated regularly to the relevant business function director
through meetings and written updates.
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DOUBLE MATERIALITY ASSESSMENT
ESRS 2 IRO-1 Description of the processes to identify and assess material impacts,
risks and opportunities
In 2023, Color Group conducted the first ESRS-aligned double-
materiality analysis (DMA). This was based on a previous
single-materiality analysis that was initiated in 2020. The analysis
has been continuously reviewed and updated throughout 2024 to
reflect new implementation guidance from EFRAG and knowledge
gained by the organization through working with the ESRS-aligned
sustainability statement.
Identifying impacts, risks and opportunities
The double-materiality analysis is based on the guidance made
available in the ESRS disclosure requirements. To identify relevant
impacts, risks and opportunities for Color Group, a four-step
process was followed. In the first step, the main activities of Color
Group’s business model, value chain and interactions with stake-
holders were mapped out. In addition, assessment boundaries,
thresholds and stakeholder involvement were defined. In the
second step, impact, risks and opportunities were identified and
mapped with the help of various stakeholders. In the third step, the
identified impacts, risks and opportunities were evaluated, scored
and prioritized to determine materiality. As part of this step, a
mapping of the risks and opportunities that may arise as a result
of identified impacts and dependencies was conducted. In the final
step, the materiality assessment was validated, refined, docu-
mented and translated to specific datapoints in the ESRS disclosure
requirements. Identified risks were integrated in the Group risk
follow-up processes.
All topics listed in ESRS 1 AR 16 have been assessed and reviewed.
There are currently no sector-specific topics that have been iden-
tified as relevant for Color Group’s operations. The company has
identified an entity-specific topic that has been placed under G1.
Relevant minimum disclosure requirements have been applied as a
foundation for reporting on policies, actions, targets and metrics.
Stakeholder engagement
As a part of the double-materiality assessment, Color Group has
mapped out which stakeholder groups are relevant in terms of the
company’s ESG work, including both affected stakeholders and
users of reporting information. The stakeholder groups identified
under Stakeholder engagement were involved in the double-ma-
teriality assessment through various input channels, with some
examples being described in the aforementioned section. Inputs
and views from stakeholders informed and enriched the process of
assessing impacts, risks and opportunities through providing more
context in which to evaluate each point. It was important for Color
Group to include key people in the organization with deep know-
ledge of the company’s business areas and external connections.
Due to the complexity and number of topics, a project team made
an initial list of potential impacts, risks and opportunities, based
on available data and previous external interviews, which was
then reviewed and assured by representatives from all business
areas. The final list, with scoring, was presented to, reviewed and
approved by the Executive Management in Color Line and the
Board in several workshops, taking into account their input and
assessments of materiality. These reviews by the highest bodies in
the company also served as control and decision-making points for
methods used throughout the process and in determination of the
final results.
Scoring approach
The scoring methodology and criteria for the materiality assess-
ment are in accordance with the requirements in ESRS 1, focusing
especially on impact and financial materiality.
Impact materiality: The consequences of the identified impacts
were determined according to scale, scope and irremediability.
These were assessed on a scale from 1 to 5, ranging from very low
impact (1) to very high impact (5). Together with likelihood, which
was also scored on a range from 1 to 5, these scores determine the
materiality of impacts. An average of all the factors was calculated
to determine the final score for a topic. For human rights-related
impacts, severity (the combination of scale, scope and irreme-
diability) takes precedence over likelihood when calculating the
average in accordance with ESRS 1 requirements. A threshold was
established, and where impacts scored above the threshold, they
were considered impact material.
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Financial materiality: The financial consequence of the risk/oppor-
tunity and the likelihood of it occurring determined the materiality
of the identified risks and opportunities, in accordance with ESRS
standards. The likelihood scoring equals that of impact materiality,
and the score given to financial consequence is aligned with the
financial audit materiality thresholds of Color Group. A threshold
was established, and where impacts scored above the threshold,
they were considered financially material.
The highest score for each subject matter determines the materi-
ality. The assessment of impacts and risks/opportunities are kept
separate, to identify whether a subject matter is impact, financial
or double material. Subject matters where no related IROs are
identified and/or all IROs are below the thresholds, are deemed
non-material. Financial audit materiality has also been taken into
account.
Future steps
Color Group will review the DMA periodically to ensure its rele-
vance, considering evolving contexts and trends, new regulatory
requirements and updated knowledge. Color Group will monitor
how interpretations of subtopics and sub-subtopics evolve and are
handled by comparable companies, sector standards and regula-
tory bodies in the near future. As this is the first year of reporting
on the DMA, there have been no changes in the process to report.
IMPACT MATERIAL DOUBLE MATERIAL
NOT MATERIAL FINANCIALLY MATERIAL
Pollution of water (E2)
Pollution of living organisms (E2)
Water (E3)
Waste (E5)
Working conditions (S1)
Equal treatment and opportunities for all (S1)
Other work-related rights (S1)
Working conditions (S2)
Equal treatment and opportunities for all (S2)
Other work-related rights (S2)
Personal safety of consumers and/or end-users (S4)
Protection of whistleblowers (G1)
Management of relationships with suppliers (G1)
Corruption and bribery (G1)
Pollution of soil (E2)
Substances of concern (E2)
Sudstances of very high concern (E2)
Microplastics (E2)
Marine resources (E3)
Direct impact drivers on biodiversity loss (E4)
Impact on the state of species (E4)
Impact on the extent and condition of ecosystems (E4)
Impact and dependencies on ecosystem services (E4)
Resource inflows and usage (E5)
Resource outflows related to products and services (E5)
Economic, social and cultural rights (S3)
Civil and political rights (S3)
Rights of indigenous peoples (S3)
Information-related impacts for consumers and/or end-users (S4)
Social inclusion of consumers and/or end-users (S4)
Corporate culture (G1)
Animal welfare (G1)
Political engagement and lobbying activities (G1)
Environmental
Social
Governance
Climate change mitigation (E1)
Climate change adaption (E1)
Energy (E1)
Pollution of air (E2)
Border control (G1)
1
Responsible provision of gambling (G1)
1
Responsible sale of alcohol and tobacco (G1)
1
1
Entity-specific topic
MATERIAL SUBTOPICS
WITH NON-MATERIAL
SUB-SUBTOPICS
E3 Water: Water withdrawals, water
discharges.
S1 Working conditions: Work-life
balance.
S1 Equal treatment and
opportunities for all: Employment and
inclusion of persons with disabilities.
S1 Other work-related rights: Child
labor, forced labor.
S2 Working conditions: Work-life
balance, collective bargaining,
freedom of association, social dialogue.
S2 Other work-related rights:
Privacy, adequate housing.
S4 Personal safety of consumers
and/or end-users: Protection of
children.
Materiality matrix
The materiality distribution of the ESRS topics is presented in the matrix.
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MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
The material impacts, risks and opportunities identified in the double-materiality analysis for Color Group are presented below.
E1 Climate change
Type IRO Description
Location in
value chain
Time
frame
Climate change mitigation
Actual negative
impact
Color Group’s ships
directly emit greenhouse
gases (CO
2
, CH
4
, N
2
O).
The main source of GHG emissions is the use of
fossil fuels to power ships.
Own operation All
Actual negative
impact
Value chain emissions
stem from production
of fuel and purchased
goods and services.
The largest value-chain emissions stem from
the production and distribution of fossil fuels
for ships, and the production and distribution of
purchased goods and services.
Value chain All
Risk Inclusion in the EU ETS,
requiring CO
2
emissions
quota purchases.
This has financial implications for ship operators
and owners and acts as an incentive to reduce
emissions.
Own operations All
Risk New technology
developments are
needed to meet the
company’s long-term
emission targets.
Full decarbonization of the fleet is not possible
with the existing technology on the market. The
company is expecting an 'innovation wave' in
the 2030s that will solve the issues currently
faced by Color Group.
Own operation Long
term
Type IRO Description
Location in
value chain
Time
frame
Climate change adaptation
Potential
positive impact
Route adaptations
to secure important
transport infrastructure
between Europe and
Norway in high-emission
scenarios.
Color Group’s routes are important
infrastructure for Norway as they are important
transport corridors for goods and passengers
between Norway and Europe. Weather planning
and adaptation of the routes to reduce number
of cancellations in high-emissions scenarios will
have a positive impact.
Own operation Medium
and
long
term
Energy
Actual negative
impact
Energy consumption
from fossil sources due
to the company’s ship
operations currently
requiring conventional
fuel.
Most of Color Group’s energy consumption
stems from fossil sources due to the ship
operations currently requiring conventional
fuels such as heavy fuel oil and marine gas oil.
Own operation Short
and
medium
term
Potential
positive impact
A renewable energy mix
due to hybridization/
electrification of fleet
and land vehicles.
Gradual electrification of the fleet and land
vehicles already has and will continue to
increase the renewables share of Color Group’s
energy mix over time.
Own operation All
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E2 Pollution
Type IRO Description
Location in
value chain
Time
frame
Pollution of air
Actual negative
impact
Air pollution from ship
operations (NO
x
, SO
2
,
PM10, PM2.5) harms
local air quality.
Air pollution can harm local air quality in Color
Group’s destination ports.
Own operation All
Actual negative
impact
Air pollution from value
chain activities harms
local air quality.
Air pollution can harm local air quality at several
locations in the value chain.
Value chain All
Risk Stricter regulations
on NO
x
, SO
2
, and PM
emissions from ships
can lead to significant
investment costs.
May result in significant investment costs for
shipowners and operators to comply.
Own operation Medium
and
long
term
Pollution of water
Potential
negative impact
Water pollution from
accidental oil spills.
May affect local marine biodiversity if spills
occur.
Own operation All
Pollution of living organisms and food resources
Potential
negative impact
Pollution from ship
operations (CO
2
, NO
x
,
Sox, PM, oil spills) can
affect marine and
coastal organisms.
May affect local marine biodiversity through
ocean acidification and accidental oil spills.
Own operation All
E3 Water and marine resources
Type IRO Description
Location in
value chain
Time
frame
Water
Actual negative
impact
Water consumption
for hygiene, food
preparation,
maintenance, and
cleaning onboard.
Water refill in the Norwegian home ports from
the municipal grid, which may affect the water
supply of those cities to some extent.
Own operations All
Actual negative
impact
Water consumption in
products and goods
production for resale
and own use, including
raw material extraction.
Water usage in the value chain for production of
products.
Value chain All
Actual negative
impact
Discharge to the ocean
of various treated
wastewaters, including
scrubber water.
Treated wastewater, such as greywater,
scrubber-water and blackwater, from ships are
discharged in accordance with regulations.
Own operation All
Actual positive
impact
Contributing to research
by monitoring the sea
and collecting data.
Color Group is collaborating with NIVA to gather
real-time data on the water quality along the
Oslo-Kiel route.
Own operation All
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E5 Circular economy
Type IRO Description
Location in
value chain
Time
frame
Waste
Actual negative
impact
Generation and
handling of waste from
maintenance activities at
shipyard.
Ship maintenance generates waste, but many
materials can be recycled. Color Group is looking
into improving routines and partnerships
with yards to increase the rate of reuse and
recycling.
Value chain All
Actual negative
impact
Generation and
handling of waste in the
production of products
for resale and own use.
The company’s value chain generates various
types of waste, both in the production and
transportation of goods.
Value chain All
Actual negative
impact
Waste generated across
own operations.
Color Group’s operations generate waste
through several waste streams, including food
waste, packaging waste and ship maintenance
waste. The company is actively working on
increasing the amount of waste that is sorted, as
well as the rates of reuse and recycling.
Own operation All
Actual negative
impact
Generation and handling
of waste from sold
products.
The products Color Group sells onboard ships
generate waste when consumed and disposed
of. We are looking into how we can reduce waste
from sold products.
Value chain All
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S1 Own workforce
Type IRO Description
Location in
value chain
Time
frame
Working conditions
Actual positive
impact
Secure employment and
regulated workers’ rights
for employees
Our employees are our most important
resource, and to enable our people to do what
they do best we ensure they are part of a safe
and fair working environment. We are proud
to have a high job security and a high rate of
tariff-protected employees. We have routines to
engage with workers’ unions for both land-based
and seafaring employees.
Own operations All
Potential
negative impact
Health and safety
for employees when
working in higher-risk
environments
Due to the nature of our operations, there is
a risk to employee safety in the case of acute
sickness or accidents onboard since emergency
help is less available at sea. Safety at sea for all
our employees is our top priority and something
we work on every day. Some roles have
physically demanding tasks, long workdays and
rotational schedules which increases the risk of
work-related injuries and health issues.
Own operations All
Equal treatment and opportunities for all
Actual positive
impact
Career advancement
through training and
development
Our apprenticeship and cadet programs provide
opportunities for career advancement for young
people interested in the maritime sector. Our
leader program aims to develop great leaders
and provide advancement opportunities.
Own operations All
Potential
negative impact
Higher risk of
discrimination and
harassment for
employees in certain
positions
Experience discrimination for female employees
based on gender in maritime, technical and male
dominated roles is a challenge for the maritime
sector. There is also a higher risk for employees
in certain customer-facing roles to experience
harassment from some guests due to the
influence of alcohol on behavior.
Own operations All
Type IRO Description
Location in
value chain
Time
frame
Other work-related rights
Potential
negative impact
Reduced privacy for
seafaring employees
The company’s seafaring employees experience
a reduced level of privacy when onboard, as
people are working and living close together for
two weeks at a time.
Own operations All
Potential
negative impact
Protection of employees’
personal data
As an employer, Color Group has access to
some of the personal data of employees. There
is always a risk of data breaches, which could
negatively impact our employees.
Own operations All
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S2 Workers in the value chain
Type IRO Description
Location in
value chain
Time
frame
Working conditions
Potential
negative impact
Lack of secure
employment and
regulated workers’ rights
for workers in the value
chain
Some of the value chain industries are at higher
risk of breaking workers’ rights for workers in
the value chain. Color Group is monitoring these
risks routinely.
Value chain All
Potential
negative impact
Health and safety for
workers in the value
chain working in higher-
risk environments
Shipyards are places with higher risk for injuries.
Ensuring the company chooses shipyards that
protect their workers is a top priority.
Value chain All
Equal treatment and opportunities for all
Potential
negative impact
Lack of equality,
diversity, and inclusion
for workers in the value
chain
Some countries and industries in the value
chain are less concerned with ensuring equality,
diversity and inclusion for their workers, which
can negatively impact value-chain workers.
Value chain All
Potential
negative impact
Lack of training and
career development for
workers in the value
chain
Some countries and industries in the value chain
are less concerned with providing training and
career development for their workers, which can
negatively impact value-chain workers.
Value chain All
Other work-related rights
Potential
negative impact
Potential presence
of forced labor and
child labor in the value
chain in countries and
industries with high or
medium risk for this
Some countries and industries in our value chain
represent a higher risk of forced labor and child
labor being present. We screen our suppliers on
these parameters when performing our social
due diligence.
Value chain All
S4 Consumers and end-users
Type IRO Description
Location in
value chain
Time
frame
Personal safety of consumers and/or end-users
Potential
negative impact
Safety at sea for
passengers
Due to the nature of Color Group’s operations,
there is a risk to passenger safety in the case
of acute sickness or accidents onboard since
emergency help is less available at sea. Safety
at sea for all passengers is our top priority and
something the company works on every day.
Own operations All
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G1 Business conduct
Type IRO Description
Location in
value chain
Time
frame
Protection of whistle-blowers
Potential
negative impact
Lack of protection of
whistle-blowers for
employees, contracted
labor and value chain.
Lack of protection of whistle-blowers may result
in negative impacts for individuals, culture and
company.
All All
Management of relationships with suppliers
Potential
positive impact
Focus on sustainability
and good business
conduct can affect
suppliers positively
Setting sustainability requirements for suppliers
and asking the right questions can have a
positive impact on suppliers’ sustainability work –
both social and environmental.
Value chain All
Potential
negative impact
Undue cost or time
pressure can affect
suppliers negatively
Setting unrealistic time and cost expectations
can negatively affect smaller suppliers. Acting
responsibly as a customer is important to foster
good business relationships.
Value chain All
Anti-corruption and bribery
Potential
negative impact
Higher risk of incidents
of corruption in certain
geographical areas.
Some countries and industries in the groups'
value chain represent a higher risk of incidents
of corruption and bribery being present. The
company screens suppliers on these parameters
when performing due diligence.
Value chain All
Actual positive
impact
Anti-corruption program
for employees
To combat corruption in the company’s value
chain, relevant roles are required to undergo our
anti-corruption program where they are taught
how to handle potential incidents.
Own operations All
Risk Reputational damage
and fines as a result of
suspicions/investigations
of anti-corruption
regulations being
violated.
Not performing proper screenings of new
and existing suppliers can result in fines and
a damaged reputation by being involved in
corruption or bribery cases.
Own operations All
Type IRO Description
Location in
value chain
Time
frame
Temporary border control (entity-specific)
Potential
negative impact
Wrongfully executed
border control activities
can weaken Norway’s
borders
Wrongfully/non-executed temporary border
control could weaken quality of regional
Norwegian border control.
Own operations All
Responsible provision of gambling (entity-specific)
Risk Non-compliance with
regulations can result in
revocation of permits to
be a gambling provider
A breach of regulated responsible gambling
obligations may result in reputational damage
and/or the revocation of permits, which would
result in a loss of income.
Own operations All
Responsible sale of alcohol and tobacco (entity-specific)
Risk Non-compliance with
regulations can result in
revocation of permits to
sell alcohol and tobacco
through the duty-free
scheme.
A breach of regulated responsible alcohol-
and tobacco sales obligations may result in
reputational damage and/or the revocation of
Own operations All
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ENVIRONMENTAL
INFORMATION
EU Taxonomy
40
E1 Climate change
50
E2 Pollution
68
E3 Water and marine resources
72
E5 Resource use and circular economy
76
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EU Taxonomy
The EU Taxonomy is a classification system that defines which
economic activities can be considered environmentally sustainable
as part of the EU’s Green Deal. The EU Taxonomy aims to scale
up sustainable investment, avoid greenwashing and implement
the European Green Deal, and is an integral part of the Corporate
Sustainability Reporting Directive (CSRD).
The EU Taxonomy consists of the following six environmental
objectives:
• Climate change mitigation (CCM)
• Climate change adaptation (CCA)
• Sustainable use and protection of water and marine resources
(W&M)
• Transition to a circular economy (CE)
• Pollution prevention and control (PPC)
• Protection and restoration of biodiversity and ecosystems (BIO)
The EU Taxonomy identifies economic activities that contribute to the
environmental objectives, referred to as “eligible” activities. In addi
-
tion, it defines technical screening criteria that need to be met and
requirements for minimum safeguards to make an activity “aligned”.
Eligible economic activities
Color Group has identified its business activities and assessed each
one in relation to the EU Taxonomy’s economic activities, consid-
ering all six environmental objectives, in accordance with the EU
Taxonomy (Regulation 2020/852).
Color Group has identified five eligible activities:
• Hotels, holiday, camping grounds, and similar accommodation
(BIO 2.1)
• Sea and coastal freight water transport vessels for port opera-
tions and auxiliary activities (CCM 6.10)
• Construction of new buildings (CCM 7.1, CE 3.1)
• Installation, maintenance, and repair of energy efficiency equip-
ment (CCM 7.3)
• Acquisition and ownership of buildings (CCM 7.7)
In 2024, the eligible share of turnover was 45.9%, of which
non-aligned was 44.9%. The eligible share of operational
expenditures was 100%, of which non-aligned was 84.5%. Lastly,
the eligible share of capital expenditures was 100%, of which
non-aligned was 96.3%.
Aligned economic activities
Color Group evaluated alignment of each of the eligible activities
according to the relevant criteria for Substantial Contribution (SC),
Do No Significant Harm (DNSH) and minimum safeguards. In the
cases where an asset did not comply with the criteria in SC, the
assessment of DNSH was not performed. ‘Construction of new
buildings’ is assessed to be eligible under more than one envi-
ronmental objective, which requires that the technical screening
criteria must be assessed for both CCM and CE.
The result was alignment within two economic activities:
• Sea and coastal freight water transport vessels for port opera-
tions and auxiliary activities (CCM 6.10).
• Acquisition and ownership of buildings (CCM 7.7)
Alignment represents 0.9% of turnover, 15.5% of operational
expenditures, and 3.7% of capital expenditures. For information on
calculation practices, see ‘accounting policies’.
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Overview of eligibility and alignment of economic activities
Economic activity
Environmental
objective Eligible/aligned
Hotels, holiday, camping grounds, and similar accommodation BIO Eligible
Sea and coastal freight water transport vessels for port operations and auxiliary activities CCM Aligned
1
CCA Not eligible
Construction of new buildings CCM Eligible
CE Eligible
Installation, maintenance, and repair of energy efficiency equipment CCM Aligned
CCA Not eligible
Acquisition and ownership of buildings CCM Aligned
2
CCA Not eligible
1
Aligned for M/S Color Hybrid
2
Aligned for Central Warehouse, DK
Changes in reporting practices
The EU Taxonomy and interpretations of activities are continuously evolving with additions of FAQs and
reporting practices. Therefore, the company re-evaluated the eligible activities in 2024 that were the
basis for reporting in 2023. This re-evaluation considered activities related to the four additional environ-
mental objectives established by the EU and other new activities started in 2024. The most significant
adjustment made from 2023 to 2024 is demarcation of the respective definitions of revenue from ship
operations to only include revenue from transport and cargo.
Color Group expects the company’s reporting to continue developing in harmony with changes made to
the EU Taxonomy to promote simplification.
Proportion of turnover / Total turnover
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 0.9% 43.9%
CCA 0.0% 0.0%
WTR 0.0% 0.0%
CE 0.0% 0.0%
PPC 0.0% 0.0%
BIO 0.0% 1.0%
Proportion of CapEx / Total CapEx
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 3.7% 95.8%
CCA 0.0% 0.0%
WTR 0.0% 0.0%
CE 0.0% 0.0%
PPC 0.0% 0.0%
BIO 0.0% 0.5%
Proportion of OpEx / Total OpEx
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 15.5% 84.1%
CCA 0.0% 0.0%
WTR 0.0% 0.0%
CE 0.0% 0.0%
PPC 0.0% 0.0%
BIO 0.0% 0.4%
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Minimum Safeguards
The EU Taxonomy specifies minimum safeguards for social and
governance conditions, which must be evaluated to ensure adher-
ence to international standards and guidelines, including:
• The OECD Guidelines for Multinational Enterprises (OECD
Guidelines for MNE).
• The UN Guiding Principles on Business and Human Rights
(UNGPs), including the principles and rights set out in eight of the
ten fundamental conventions identified in the International Labor
Organization (ILO) Declaration of the Fundamental Principles and
Rights at Work.
• The International Bill of Human Rights.
The minimum safeguards establish social and governance criteria
to ensure that environmentally beneficial activities do not nega
-
tively impact broader objectives. Key factors considered in these
safeguards include human rights (including labour rights), tax
compliance, anti-bribery and corruption measures, and fair business
practices. Color Group’s disclosures, such as the Code of Conduct,
outline the company’s policies on internationally recognized human
rights and the OECD Guidelines for Multinational Enterprises (MNEs).
Color Group’s assessment is that the activities of the company are
in compliance with the minimum safeguards as detailed in the EU
Taxonomy at Group level. This conclusion is based on the following
assessments:
Human rights: To ensure that due diligence on Responsible
Business Conduct Principles is followed in accordance with the
OECD Guidelines for MNEs, Color Group’s policies are readily acces-
sible to employees and stakeholders on Colorline.no. Additionally,
employees receive annual training on relevant topics, including
the Color Group Code of Conduct, Human & Labor Rights, and
Diversity, Equality & Inclusion (DEI).
Anti-bribery and corruption: Color Group has a zero-tolerance
policy for corruption and guidelines to prevent it. There were no
known cases related to corruption within the Group in 2024.
Tax compliance: Color Group has a tax policy that describes
ownership and principles for handling taxes. The Group has not
been convicted of any violations of tax laws in 2024.
Fair business practices: Relevant key personnel have received
necessary training in fair competition and competition law. The
Group does not have any disputes related to competition law regu-
lations in 2024.
Template 1: Nuclear and fossil gas-related activities
Row Nuclear energy-related activities
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.
No
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
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
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Turnover KPI reporting
Proportion of
Turnover 2024 (4)
Substantial Contribution Criteria DNSH criteria ('Does Not Significantly Harm')
Proportion of Taxonomy-
aligned (A.1.) or -eligible
(A.2.) turnover 2023 (18)
Financial year 2024
Code (2) Turnover (3)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular
Economy (9)
Bio diversity and
eco systems (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular
Economy (15)
Bio diversity (16)
Minimum
Safeguards (17)
Category
(enabling
activity) (19)
Category
(transitional
activity) (20)
Economic Activities (1)
NOK %
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL 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)
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 61 789 0.9% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0% T
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1) 61 789 0.9% 0.9% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y
Of which enabling 0 0.0% Y
Of which transitional 61 789 100.0% 0.0% Y Y Y Y Y Y Y T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL : N/EL EL : N/EL EL : N/EL EL : N/EL EL : N/EL EL : N/EL
Hotels, holiday, camping grounds and similar
accommodation BIO 2.1 66 857 1.0% EL N/EL N/EL N/EL N/EL N/EL 1.06%
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 2 910 340 43.9% EL N/EL N/EL N/EL N/EL N/EL 98.94%
Turnover of Taxonomyeligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) 2 977 197 44.9% 43.9% 0.0% 0.0% 0.0% 0.0% 1.0%
A. Turnover of Taxonomy-eligible activities (A.1+A.2) 3 038 986 45.9% 44.9% 0.0% 0.0% 0.0% 0.0% 1.0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities 3 585 281 54.1%
Total 6 624 267 100.0%
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CapEx KPI reporting
Proportion of
CapEx 2024 (4)
Substantial Contribution Criteria DNSH criteria ('Does Not Significantly Harm')
Proportion of Taxonomy-
aligned (A.1.) or -eligible
(A.2.) CapEx, N-1 (18)
Financial year 2024
Code (2) CapEx (3)
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)
Bio diversity (16)
Minimum
Safeguards (17)
Category
enabling activity
(19)
Category
transitional
activity (20)
Economic Activities (1)
NOK %
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL 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)
Installation, maintenance and repair of energy
efficiency equipment CCM 7.3 4 858 1.5% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0% E
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 7 236 2.2% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0% T
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
12 094
3.7% 3.7% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y
Of which enabling 4 858 40.2% 40.2% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y E
Of which transitional 7 236
59.8%
0.0% Y Y Y Y Y Y Y T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL : N/EL EL : N/EL EL : N/EL EL : N/EL EL : N/EL EL : N/EL
Hotels, holiday, camping grounds and similar
accommodation BIO 2.1 1 688 0.5% EL N/EL N/EL N/EL N/EL N/EL 0.87%
Construction of new buildings CCM 7.1 30 832 9.4% EL N/EL N/EL N/EL EL N/EL
Acquisition and ownership of buildings CCM 7.7 723 0.2% 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
281 097
86.1% EL N/EL N/EL N/EL N/EL N/EL 99.13%
CapEx of Taxonomyeligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
314 340
96.3% 95.8% 0.0% 0.0% 0.0% 0.0% 0.5%
A. CapEx of Taxonomy-eligible activities (A.1+A.2) 326 434
100.0%
99.5% 0.0% 0.0% 0.0% 0.0% 0.5%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy non-eligible activities 0 0.0%
Total 326 434
100.0%
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OpEx KPI reporting
Proportion of
OpEx 2024 (4)
Substantial Contribution Criteria DNSH criteria ('Does Not Significantly Harm')
Proportion of Taxonomy-
aligned (A.1.) or -eligible
(A.2.) OpEx, N-1 (18)
Financial year 2024
Code (2) OpEx (3)
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)
Bio diversity (16)
Minimum
Safeguards (17)
Category
enabling activity
(19)
Category
transitional
activity (20)
Economic Activities (1)
NOK %
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL
Y ; N ;
N/EL 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)
Installation, maintenance and repair of energy
efficiency equipment CCM 7.3 134 0.0% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0% E
Acquisition and ownership of buildings CCM 7.7 718 0.2% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0%
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10
59 625
15.3% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0% T
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
60 477
15.5% 15.5% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y
Of which enabling
134
0.2%
0.2% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y E
Of which transitional
59 625
98.6%
0.0% Y Y Y Y Y Y Y T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL : N/EL EL : N/EL EL : N/EL EL : N/EL EL : N/EL EL : N/EL
Hotels, holiday, camping grounds and similar
accommodation BIO 2.1 1 544 0.4% EL N/EL N/EL N/EL N/EL N/EL 2.07%
Acquisition and ownership of buildings CCM 7.7 44 754 11.5% 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
282 182
72.5% EL N/EL N/EL N/EL N/EL N/EL 97.93%
OpEx of Taxonomyeligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
328 480
84.5% 84.1% 0.0% 0.0% 0.0% 0.0% 0.4%
A. OpEx of Taxonomy-eligible activities (A.1+A.2)
388 957 100.0%
99.6% 0.0% 0.0% 0.0% 0.0% 0.4%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Opex of Taxonomy non-eligible activities 0 0.0%
Total
388 957 100.0%
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Assessment of activities
Economic Activity
Type of
assessment Interpretation and assessment Conclusion
Hotels, holiday, camping grounds
and similar accommodation
(BIO 2.1)
Eligibility The activity includes hotel operations. Color Group has one hotel in Skagen,
Denmark. Turnover, CapEx and OpEx from the hotel operations are eligible.
Commissions or other income from additional sales of stays at other hotels or
activities outside of Color Group's ownership and operations are excluded.
Eligible
SC To align with the required criteria, hotels must contribute to nature conservation
and restoration activities. Color Hotel Skagen does not meet these the SC
criterias.
DNSH Since the economic activity does not fulfil the criteria for SC, an assessment of
DNSH has not been carried out.
Economic Activity
Type of
assessment Interpretation and assessment Conclusion
Sea and coastal freight water
transport vessels for port
operations and auxiliary
activities
(CCM 6.10)
Eligibility This activity includes sea transport services (passengers and freight) from Color
Group’s RoPax ships. Revenue from transport of passengers and cargo are
eligible.
Color Group’s fleet of ships is eligible under this activity, consisting of M/S
SuperSpeed 1, M/S SuperSpeed 2, M/S Color Hybrid, M/S Color Magic and M/S
Color Fantasy.
Aligned (M/S
Color Hybrid)
SC M/S Color Hybrid was built in 2017-2019 and is subject to the Energy Efficiency
Design Index (EEDI). According to the EU Taxonomy criterion, the attained EEDI
for the ship shall be 10% lower than the EEDI requirements that came into force
on 1 April 2022 until 31 December 2025. With the update on 1 April 2022, Phase 3
was brought forward for several ship types, but not for RoRo passenger ships like
M/S Color Hybrid.
The phase to be used as the basis for calculating the reduction factor is based
on the date of the ship's construction contract. M/S Color Hybrid has a contract
date for the construction contract of February 2017, which falls in the period from
1 January 2015 to 31 December 2019, and is therefore in Phase 1.
According to the EU Taxonomy, the reference value should first be reduced by
the reduction factor of 5% for Phase 1 RoPax passenger ships. An additional
reduction of 10% should then be applied according to the EU Taxonomy. This
increases to 20% from 1 January 2026, according to requirement 1e.
M/S Color Hybrid’s attained EEDI is below 10% of the required EEDI for the
2024/2025 criterion and complies with the 2026 criterion. The ship is able to
run on fuels from renewable sources. For M/S Color Hybrid, the substantial
contribution criteria are assessed as compliant.
M/S SuperSpeed 1, M/S SuperSpeed 2, M/S Color Fantasy, and M/S Color Magic
do not meet one or more requirements under SC. These four ships are therefore
assessed as not aligned with the EU Taxonomy requirements.
DNSH CCA: A climate risk assessment has been performed in accordance with Appendix
A of the EU Taxonomy and Color Group has measures in place to meet the
adaptation requirements. This includes energy efficiency improvements, route
planning and dialog with relevant authorities and ports. No material physical
climate risks have been identified. The criteria for CCA are met.
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Economic Activity
Type of
assessment Interpretation and assessment Conclusion
W&M: M/S Color Hybrid complies with environmental standards set by MARPOL
and IMO, and it does not use scrubbers, complying with the criteria for W&M.
CE: Color Group meets the requirements for circular economy through clear
guidelines and procedures for waste management both onboard the ship and on
land, as well as clauses in ship sales contracts that ensure that ships are not sent
for scrapping (continuous trade).
PPC: Color Group meets the requirements with M/S Color Hybrid for the
prevention and control of pollutions related to SO
x
, anti-fouling and water
discharges, and has certificates documenting this. M/S Color Hybrid is a
hybrid ship that runs on electricity and Marine Gas Oil (MGO) and does not use
scrubbers. M/S Color Hybrid sails between Sandefjord, Norway, and Strømstad,
Sweden, an area classified as an Emission Control Area (ECA). The ship runs on
fuel that contains less than 0.1% sulphate, which is the requirement for ECA.
BIO: An assessment has been performed in accordance with Appendix D of the
EU Taxonomy. Color Group meets the requirements through the use of certified
products on the ship, verification of ballast water management procedures from
DNV, and compliance with IMO guidelines for noise and vibrations.
Sea and coastal freight water
transport vessels for port
operations and auxiliary
activities
(CCA 6.10)
Eligibility See eligibility description from CCM 6.10 above. Color Group has performed a
climate risk and vulnerability assessment, but has not developed a plan that
describes how and when adaptation solutions for the ships will be implemented.
Hence, the activity is not eligible.
SC
DNSH
The economic activity is not eligible. Therefore, assessments of SC and DNSH
have not been carried out.
Construction of new buildings
(CCM 7.1)
Eligibility This activity covers new buildings being constructed or completed during the
year. An extension to Color Hotel Skagen was started in 2024 and is included in
this activity.
SC Since the construction of the new extension is not completed, it was not possible
to obtain an Energy Performance Certificate (EPC). Instead, the EPC as designed
was used to assess the energy performance of the new building. The extension to
the hotel has an EPC as designed lower than the threshold for nearly zero-energy
buildings (NZEB) under Danish measures, which means the SC are met.
Economic Activity
Type of
assessment Interpretation and assessment Conclusion
DNSH CCA: A climate risk assessment has been performed in accordance with Appendix
A of the EU Taxonomy and Color Group has measures in place to meet the
adaptation requirements. This includes energy efficiency improvements. No
material physical climate risks have been identified. The criteria for CCA are met.
W&M: Water management measures that meet the criteria have been
implemented in the new building to make it compliant.
CE: The building design and construction techniques used have focused
on circularity to be more resource-efficient, adaptable, flexible, and easy to
dismantle, which enables reuse and recycling. The activity is assessed as
compliant with relevant criteria.
PPC: Due to the extensive criteria outlined in Appendix C and construction being
underway before taxonomy assessment was begun, Color Group was not able to
assess the criteria related to PPC in a practicable manner. Hence, the criteria are
currently not met.
BIO: An assessment has been performed in accordance with Appendix D and the
activity is considered compliant.
Construction of new buildings
(CCA 7.1)
Eligibility See eligibility description from CCM 7.1 above. Color Group has performed
a climate risk and vulnerability assessment. However, Color Group has not
developed a plan that describes how and when adaptation solutions for the ships
will be implemented. Based on this assessment, the activity is not eligible.
Not eligible
SC
DNSH
The economic activity is currently not eligible. Therefore, assessments of SC and
DNSH have not been carried out.
Construction of new buildings
(CE 3.1)
Eligibility See eligibility description from CCM 7.1 above. Eligible
SC A Life-cycle Global Warming Potential calculation has not been performed. As a
result, this activity is not aligned.
DNSH Since the economic activity does not fulfil the criteria for SC, a complete
assessment of the DNSH criteria has not been carried out.
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Economic Activity
Type of
assessment Interpretation and assessment Conclusion
Installation, maintenance, and
repair of energy efficiency
equipment
(CCM 7.3)
Eligibility This activity includes specific upgrades to a building that have been carried out
to increase energy efficiency. The buildings assessed include buildings that are
owned and leased (where there is a right-of-use asset, according to IFRS 16) by
Color Group.
Aligned
In 2024, the buildings with upgrades covered by this activity were the Hirtshals
terminal, Denmark, the Hjortnes terminal, Norway, and the administration office,
Norway.
SC The implemented measures to increase energy efficiency in the aforementioned
buildings are compliant with the criteria for this activity.
DNSH CCA: A climate risk assessment has been performed in accordance with Appendix
A of the EU Taxonomy and Color Group has measures in place to meet the
adaptation requirements. This includes energy efficiency improvements. No
material physical climate risks have been identified. The criteria for CCA are met.
PPC: Building components and materials comply with the criteria set out in
Appendix C of the EU Taxonomy. None of the materials or products used for
installing the measures violate EU REACH regulations. The criteria are met.
Installation, maintenance, and
repair of energy efficiency
equipment
(CCA 7.3)
Eligibility See eligibility description from CCM 7.3 above. Color Group has performed
a climate risk and vulnerability assessment. However, Color Group has not
developed a plan that describes how and when adaptation solutions for the ships
will be implemented. Based on this assessment, the activity is not eligible.
Not eligible
SC
DNSH
The economic activity is not eligible. Therefore, assessments of SC and DNSH
have not been carried out.
Economic Activity
Type of
assessment Interpretation and assessment Conclusion
7.7 Acquisition and ownership of
buildings (CCM)
Eligibility This activity covers ownership and operation (where there is a right-of-use asset,
according to IFRS 16) of buildings such as office buildings, warehouses, terminals
etc. Color Group has several buildings that are covered by this activity.
Eligible (all
buildings)
Aligned
(Central
warehouse
Hirtshals, DK)
SC The Central Warehouse Hirtshals, Denmark, is assessed as compliant with
relevant criteria. The Central Warehouse holds an Energy Performance Certificate
class A. The other buildings Color Group operates are currently not considered
aligned with the SC criteria.
DNSH CCA: A climate risk assessment has been performed in accordance with Appendix
A of the EU Taxonomy and Color Group has measures in place to meet the
adaptation requirements. This includes energy efficiency improvements, route
planning and dialogue with relevant authorities and ports. No material physical
climate risks have been identified. The criteria for CCA are met.
7.7 Acquisition and ownership of
buildings (CCA)
Eligibility See eligibility description from CCM 7.7 above. Color Group has performed
a climate risk and vulnerability assessment. However, Color Group has not
developed a plan that describes how and when adaptation solutions for the ships
will be implemented. Based on this assessment, the activity is not eligible.
Not eligible
SC
DNSH
The economic activity is not eligible. Therefore, assessments of SC and DNSH
have not been carried out.
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Accounting policies
Calculation of KPIs
The accounting methodology for calculating and determining
the key performance indicators (KPIs) disclosed under the EU
Taxonomy Regulation adheres to the requirements set forth in the
EU Commission Delegated Regulation 2021/2178. In accordance
with this regulation, Color Group reports on turnover, CapEx
and OpEx for each of the economic activities divided into three
categories: Taxonomy aligned (A.1), Taxonomy eligible but not
aligned (A.2), and Taxonomy non-eligible activities (B). By dividing
the calculations into these three groups, it shows how much of the
Group’s turnover, CapEx and OpEx are classified as sustainable.
Calculation of Turnover
The share of aligned and eligible turnover is calculated as the net
turnover derived from products and services associated with aligned
and eligible turnover, divided by Color Group’s total net turnover, as
defined in the EU Commission Delegated Act 2021/2178.
The numerator of the Turnover KPI includes net revenues from
services, that are related to eligible and aligned activities. The denom
-
inator includes all revenue in the Group recognized according to IAS 1,
paragraph 82(a), IFRS 15 and IFRS 16. For Color Group, this is revenue
mainly associated with the economic activity 6.10 — transporting
passengers and freight by ships. The most notable adjustment from
the company’s reporting from 2023 to 2024 is redefining revenue
from ship operations to specifically include only ticket revenue
from transport and freight journeys. Revenue generated from hotel
operations is considered eligible, whereas commissions or income
from additional sales of stays at other hotels or activities not owned
or operated by Color Group are excluded. See note 5 in the Group’s
consolidated financial statements for further information. In the
consolidated financial statements, revenue from ticket sales and
revenue from onboard purchases are recorded separately, each with
distinct performance obligations under IFRS 15.
Calculation of CapEx
The share of aligned and eligible CapEx is calculated as CapEx
derived from aligned and eligible CapEx divided by Color Group’s
total Capex, as defined in the EU Commission Delegated Act
2021/2178.
The numerator in the calculations includes eligible and aligned
CapEx additions in 2024. CapEx includes additions to tangible
and intangible assets during the financial year, considered before
depreciation, amortization, and any re-measurement, including
those resulting from revaluations and impairments. Consequently,
CapEx encompasses costs accounted for under the following IFRS
standards: IAS 16 Property, Plant and Equipment, IAS 38 Intangible
Assets, and IFRS 16 Leases. These standards have been the basis
for Color Group’s allocation of CapEx to both the denominator and
numerator. For related information, refer to notes 11, 12, and 13 in the
consolidated financial statement. Color Group does not currently
have any material capital expenditures related to a CapEx plan.
Calculation of OpEx
The share of Color Group’s aligned and eligible OpEx is calculated
as OpEx derived from aligned and eligible OpEx divided by Color
Group’s total OpEx, as defined in the EU Commission Delegated
Act 2021/2178. The EU Taxonomy has a narrow definition of OpEx
that includes direct non-capitalized costs that relate to research
and development, building renovation measures, short-term
lease, maintenance and repair, and any other direct expenditures
relating to the undertaking, or third parties to whom activities are
outsourced, day-to-day servicing of assets to property, plant and
equipment, that are necessary to ensure the continued and effec-
tive functioning of such assets.
For Color Group, OpEx is part of the consolidated income state-
ment line item ‘Other operating expenses’, see note 8 to the
Group’s consolidated financial statements for more details. Color
Group does not currently have any material operational expenses
related to a CapEx plan.
Risk of double counting
To be compliant with the EU Taxonomy Regulation, preventative
measures have been implemented to preclude double counting and
reporting for turnover, CapEx and OpEx. For economic activities
that have the potential to contribute to multiple environmental
objectives, eligibility has been assessed against each objective, as
well as alignment for climate change mitigation and climate change
adaptation. Any intercompany transactions have been identified
and excluded from the KPIs.
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E1 Climate change
Color Group aims to deliver great
experiences with a progressively
lower carbon footprint and through
this strengthen the role of the sea as
the most sustainable transport route.
Material impacts, risks and opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
Type Material impact/risk/opportunity
Location in
value chain Time frame
Climate change mitigation
Actual negative impact Color Group’s ships directly emit greenhouse gases (CO
2
, CH
4
, N
2
O). Own operation All
Actual negative impact Value chain emissions stem from production of fuel and purchased goods and services. Value chain All
Risk Inclusion in the EU ETS, requiring CO
2
emissions quota purchases. Own operations All
Risk New technology developments are needed to meet the company’s long-term emission targets. Own operation Long term
Climate change adaptation
Potential positive impact Route adaptations to secure important transport infrastructure between Europe and Norway in
high-emission scenarios.
Own operation Medium and long term
Energy
Actual negative impact Energy consumption from fossil sources due to the company’s ship operations currently
requiring conventional fuel.
Own operation Short and medium term
Potential positive impact A renewable energy mix due to hybridization/electrification of fleet and land vehicles. Own operation All
The process to identify and assess climate-related impacts is based on the double-materiality assessment, which is described under
ESRS 2 Double materiality assessment. The process of identifying and assessing climate-related risks and opportunities is described
under Climate-related risk and resilience analysis in this section.
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Policies and approach
Considerable operational changes will be required in the coming
decades towards 2050 to align with Color Group’s ambition to be the
leading provider of sustainable cruise and cargo services in Europe.
Climate-related risk and resilience analysis
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
ESRS 2 IRO-1 Description of the processes to identify and assess material climate-
related impacts, risks and opportunities
The climate-related risk and resilience analysis, is based on
three scenarios from the sixth assessment report by the
Intergovernmental Panel on Climate Change (IPCC).
Color Group believes that these scenarios cover the company’s poten-
tial climate-related risks and opportunities. The 1.5°C scenario covers
main transitional risks related to moving towards a low-emission
economy. The 2°C scenario covers the current situation in terms of
both physical and transitional risks and represents a middle scenario.
Lastly, the 4°C scenario is a high-emission scenario that covers any
potential physical risks related to a warming climate. Color Group has
not considered RCP 8.5 when conducting the analysis, instead opting
for RCP 7.0. The scenarios are based on national and regional-level
data in terms of expected physical changes.
Limiting global warming to 1.5° (SSP1-1.9)
In the lowest emissions scenario of 1.5°C, the
world reaches net zero around 2050. This means
that physical risks are low and transition risks
(and consequently opportunities) are high on a
general basis. This scenario is a result of massive,
immediate, coordinated, and uncompromising
political will in the EU and the rest of the world to
develop policies and incentives, and to allocate
R&D resources to limit climate change and
mitigate risks.
Limiting global warming to 2°C (SSP2-2.6)
In the moderate scenario of 2°C, global
greenhouse gas emissions are drastically
reduced, but not as rapidly, so that net zero is
first achieved post-2050. This scenario envisions
a greater adherence to historical societal
development, where a lack of strong coordination
across different regions, countries and sectors
results in significant variation in emission
reductions globally. The result is that it takes
longer to reach net zero. In this scenario, both
physical risks and transition risks are moderate
on a general basis.
Limiting global warming to 4°C (SSP3-7.0)
In the warmest scenario of 4°C, emissions and
temperatures steadily increase towards the
end of the century. CO
2
emissions double from
today's levels by 2100. Nations become more
concerned with competing against each other,
with focus shifting towards national security and
securing food for their own populations. Sea
levels rise, with persistent drought in many places
and extreme precipitation in others. There are
massive disparities in emissions between sectors
and countries. In this scenario, the physical
risks are very high, and the transition risks are
moderate on a general basis.
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Risk and resilience analysis
The IPCC scenarios described above informed the process of
identifying and evaluating relevant climate-related risks and
opportunities for Color Group. The expected physical changes in
each scenario are mostly taken directly from IPCC, in addition to
Copernicus, the World Bank, the Norwegian Centre for Climate
Services (NCCS), and Color Group’s own data in relation to cancel-
lations, etc. Transition risks and opportunities are based on various
sources, such as the Shared Socioeconomic Pathways (SSP),
implemented and expected national and international legislation,
maritime forecasts from DNV, a science-based research project on
international ferry transport (partners University of South-Eastern
Norway and Deutsches Institut für Tourismusforschung) and Color
Group’s own analyses of expected market changes. The climate-re-
lated risk and resilience analysis covers all of Color Group’s own
operations, in addition to material parts of the value chain – both
upstream and downstream. The analysis was updated with regards
to updated source material and extended in 2024 through a
collective effort from the company’s strategy and sustainability
departments, involving the Board of Directors in the process, to
ensure that results are integrated in strategy development going
forward. Below is a summary of the most significant risks and
opportunities that were identified, along with how risk is mitigated
and opportunities are captured – i.e. the resilience of Color Group’s
strategy and business model. This analysis will continue to evolve
as policies and macro trends develop, and as the company learns
more about climate-related risks facing its own operations and
value chain.
Color Group has defined the short-term time frame as one year,
medium-term time frame as 2–5 years, and the long-term time
frame as more than five years. This is aligned with the strategic
planning horizons of 'before 2030' and 'after 2030', as well as with
the company’s financial planning cycles.
When assessing the materiality of climate-related physical risks,
the likelihood, severity and duration of potential events in each
IPCC scenario were considered, in addition to the effect the inci-
dent would have on operations. The materiality assessment of
the transitional risks and opportunities also took into account the
likelihood, magnitude and duration of events. Some transitional
events are more uncertain than others, for example changes
related to consumer preferences, general market trends and repu-
tational effects. Other transitional events are more certain, such
as policy and legal changes, with draft texts and timelines being
known, making it easier to accurately assess materiality and to plan
mitigating efforts.
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Summary of results from the climate-related risk and resilience analysis
Climate-related physical risks (SSP3-7.0) How risk is mitigated (resilience)
Medium term & Long
term
Acute More and stronger extreme weather events can lead to more
cancellations in fleet operations, Hirtshals port particularly
vulnerable.
Robust ships, highly detailed weather prognosis used for route
optimization, upgrades to Hirtshals port and redundancy port in
Denmark.
Acute More extreme weather events can cause disruptions and
delays in deliveries of goods for retail and own use.
Geographical diversification of suppliers.
Chronic Heatwaves, drought and precipitation changes can challenge
food production in the value chain.
Geographical diversification of suppliers.
Climate-related transitional risks (SSP1-1.9) How risk is mitigated (resilience)
Medium term Technology Access to biofuel and green electricity as medium-term
emission reduction measures.
Ensuring access to biofuel for coming periods through more active
biofuel supply planning and looking into green electricity certificates.
Policy and legal Rapid policy development from the IMO, EU and nationally Close monitoring of policy-updates and early preparation.
Long-term Technology Dependency on green technology innovations to reach
net-zero for the fleet by 2050.
Participation in leading networks for maritime green technology to
ensure access to the latest information to act proactively on new
solutions, if applicable.
Market Unsuccessful decarbonization of the fleet would mean
not being able to meet new climate-conscious customer
preferences.
Development of a comprehensive transition plan based on customer
insight to ensure successful fleet decarbonization.
Reputation Unsuccessful decarbonization could lead to stigmatization of
the maritime sector.
Transparency on emissions and targets on relevant dimensions,
and the development of a comprehensive transition plan to ensure
successful fleet decarbonization.
Climate-related opportunities (SSP1-1.9) How opportunities are captured (resilience)
Medium term
& Long term
Market Temperature changes, enabling new travel habits
(“coolcations”) that favor the Nordics.
Year-round operations with capacity in place to increase the number
of passengers in off and shoulder-seasons. Sales and marketing
operations are already taking advantage of this as a new selling point
for the company’s destinations.
Reputation A successful fleet decarbonization could have a positive effect
on reputation and customer attractiveness.
Development of a comprehensive transition plan to ensure successful
fleet decarbonization.
Climate-related physical risk
When analyzing the company’s own operations, physical risks
mainly stem from more and stronger extreme weather events
that can lead to more cancellations in a medium-to-long-term
perspective, especially in off and shoulder seasons. The routes
Kristiansand/Larvik–Hirtshals are most at risk due to these
routes having the longest stretch on the open sea and the port
of Hirtshals being challenging to enter during poor weather
conditions. The impact on operations is nevertheless limited since
highly detailed weather prognoses allow for upfront cancellation
and rebooking opportunities. In addition, the port of Hirtshals has
decided to upgrade and weather-proof the harbor entry point,
currently estimated to be ready by 2028/2029, which will mitigate
the majority of the risk. Financial investments related to adaptation
of ports to meet increased physical climate risk is not under Color
Group’s operational control. The company is also looking into the
opportunity of using Fredrikshavn as a permanent back-up port
to avoid cancellations, due to this port's more sheltered location.
Climate-related physical risks are not expected to impact the
lifespan of any of Color Group’s ships as they are built for harsh
weather conditions. Hence, the climate-related physical risk does
not affect Color Group’s strategic planning or financial investments
in a significant manner.
In the value chain, medium-to-long-term physical risks also mainly
stem from more and stronger extreme weather events causing
disruptions and delays to the delivery of goods for retail and own
use. Extreme weather events, together with chronic risks such as
heatwaves, drought and changes in precipitation levels can nega-
tively affect food and drink production worldwide, making it more
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difficult to get hold of goods in a timely manner. These risks may
have a negative financial effect through higher wholesale prices for
goods on which the company depends. Such risks are attempted to
be mitigated through geographical diversification of suppliers.
Climate-related transitional risks and opportunities
Policy and legal
Rapid policy development in the European Union and nationally
in the countries of operation to align Europe with a 1.5°C scenario
brings new requirements and costs. These expenses will also pose
a significant financial burden in the event that the company should
be unable to comply with the ambition of reaching net zero in
2050. Examples of adopted legislation include new reporting and
transparency obligations, such as the CSRD and the EU Taxonomy
and EU ETS, as well as specific legislation aimed at the maritime
sector such as FuelEU Maritime. This directive sets an upper limit
on the carbon intensity of ship fuel per year, promoting a shift
towards cleaner and more efficient energy solutions for the mari-
time sector. At the same time the IMO is also developing policies to
reduce emissions from the world fleet in alignment with the same
ambitions, leading to the development of an increasingly complex
regulatory landscape. This requires close monitoring and early
preparation from the organization to mitigate policy-related and
legal risks. The company’s sustainability and compliance function is
responsible for monitoring relevant policy and legal developments,
working in close cooperation with the company’s operational
resources (Color Line Marine AS)and other key resources
throughout the organization. Color Group also actively participates
in relevant networks within the sector to stay updated on upcoming
regulatory processes both nationally, in the EU and in other rele-
vant geographic areas.
Due to the longevity of Color Group’s key assets, with the oldest
ships having a remaining expected lifespan of around 20 years,
there is a risk of locked-in emissions in the business model. This
could potentially affect the company’s ability to reach the GHG
targets and pathways for the maritime sector. This is a risk the
company is taking seriously and is the reason Color Group is devel-
oping a transition plan to ensure the company stays compliant with
strict emission regulations from now until 2050. More information
on how Color Group mitigates the risk of locked-in emissions is
described under E1-1 Transition plan.
Technology
To reach net-zero by 2050 and uphold a 1.5°C scenario, Color
Group is dependent on further development and upscaling of
relevant green fuel technologies, alongside development of the
required port infrastructure. The company is expecting an 'inno-
vation wave' to hit the maritime sector in the medium term, as
the world fleet is being subjected to increasingly strict emissions
reduction requirements. Given its network of fixed routes over
relatively short distances in Northern Europe, developments within
battery technology, hybridization and electrification are of special
interest to the company as part of a potential decarbonization
pathway, including innovations that may impact battery weight and
volume requirements, and price levels. In addition, the company
also closely monitors developments within a broad range of poten-
tial zero and near-zero fuels (e.g. green/blue hydrogen, green/blue
ammonia and bio/e-methanol) and remains an active contributor
within the broader maritime cluster in this area through partici-
pation within networks and organizations such as the Norwegian
Green Shipping Program, the pan-European InterFerry association
and representation within several relevant committees and
working groups within the Norwegian Shipowners’ Association.
Participation in these networks provides information on the newest
technology developments and brings the company into contact
with knowledgeable partners, which enables Color Group to make
informed decisions. Furthermore, these activities also serve the
purpose of informing key stakeholders on the requirements of the
company and wider maritime sector in relation to decarbonization.
Awaiting further innovation within development and upscaling of
alternative maritime fuels, access to green fuels/low-carbon fuels
and green electricity pose a risk in the mid-term, as most industries
are subjected to the same legal emission-reduction requirements
at the same time. This may lead to supply shortages and price
increases that impact the physical and financial availability of green
fuels/low-carbon fuels, which needs to be mitigated through close
monitoring of supply outlooks, market developments and exploring
the availability of longer-term and future contracts. Furthermore,
the company is also following developments within green certifi-
cates as a means of ensuring sustainable electricity.
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Market
All customer segments are expected to become increasingly
climate conscious in all scenarios, especially in a 1.5°C world, and
the company must accede to this development to maintain and
increase its market attractiveness. For certain customer segments,
notably among cargo and conference customers, there are also
requirements for value and supply chain decarbonization that may
impact their decision-making processes.
Climate-related physical changes can also lead to market oppor-
tunities for Color Group. With chronic changes in temperatures
making Southern Europe even warmer in the summer months,
the concept of 'coolcations' – vacations to cool off – could make
Norway a popular destination for travellers from Europe seeking to
avoid the heat. For the same reason, Denmark and Germany could
become increasingly popular destinations compared with Southern
Europe for travellers from farther north. A warmer climate will
also prolong the green summer season in Scandinavia, extending
the traditional peak season for Color Group. Similarly, warmer
winters across Europe and changes in precipitation patterns are
making Norway increasingly attractive as a winter destination for
those seeking skiing activities and other snow-based experiences.
The company’s sales and marketing operations are already expe-
riencing changes in travelling patterns in accordance with these
early trends, which hold the potential for increasing year-round
passenger levels for Color Group’s route network as a key 'gateway
to Norway' from Northern Europe.
Reputation
High-emission and hard-to-abate sectors and industries may come
increasingly in focus for policymakers, customers and society in
general as the green transition is proceeding towards the 2030
and 2050 goals. The reputation of individual companies within
high-emission sectors may on the one hand be impacted by
association in a 1.5°scenario. On the other hand, companies within
high-emission sectors may also achieve higher reputational gains
than in others, through proactive green diversification in relation to
the average climate performance of their industry.
Actual or perceived lack of openness and transparency may also
adversely affect high-emission sectors, while companies within
such sectors may be positively recognized by communicating
clearly defined goals and targets in an open and transparent
manner.
Color Group aims to continue to transition in line with all relevant
international, regional and national climate regulations, and to
communicate progress in a timely, open and transparent manner.
The company regards this as key to mitigate reputational risk
among customers and other stakeholders, and to maintain and
strengthen its attractiveness in an increasingly climate-conscious
environment.
Transition plan
E1-1 Transition plan for climate change mitigation
The green transition will require significant changes and develop-
ments for the maritime industry, and Color Group is no exception.
The Group acknowledges the potential locked-in GHG emissions
associated with the company’s key assets, as the five ships are
designed to operate on fossil fuels contributing to emissions
through their lifespan. In 2024, the company developed a transition
plan that includes high-level strategies on how it plans to reach
net zero by 2050. The plan will be continuously adapted to new
realities brought forward by new technologies, regulatory changes
and changing customer preferences. Color Group’s transition
plan is currently not compatible with the target of limiting global
warming to 1.5°C, in line with the Paris agreement. Color Group is
not excluded from the EU Paris-aligned Benchmark.
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Emission pathways to 2050
Using 2023 as a base-year, Color Group aims to reduce emissions
(scope 1, 2 and 3) by 17% by 2030, 53% by 2040 and achieve
net-zero operations by 2050. The company’s largest emission
reductions will be realized in the 2030–2050 period, based on fleet
renewal through retrofits and/or newbuilds.
Color Group’s climate emission reduction targets are aligned with
the main physical and financial decarbonization pathways of the
IMO and the EU:
• The FuelEU Maritime directive (EU) was introduced on 1 January
2025 and aims to increase the demand of renewable and
low-carbon fuels in the maritime sector by placing gradually
lower limits towards 2050 on the GHG intensity of the energy
used by ships calling at European ports.
• The Carbon Intensity Indicator (CII) regulation (IMO) measures
and sets limits on the carbon intensity of ships, calculated based
on CO
2
emissions per cargo-carrying capacity and nautical mile
travelled. CII will be in effect for the years 2024–2026, but may
be significantly adjusted from 2027 following an ongoing revision
process within the IMO. Due to this uncertainty, the company has
not taken the CII pathway into account from 2030 onwards.
• The EU Emissions Trading System (EU ETS) (EU) is a
cap-and-trade scheme with carbon allowances that limits
emissions from specified sectors, covering almost half of GHG
emissions in the EU. This is being phased in for shipping over a
three-year period, rising from 40% emissions liability in 2024
to 70% in 2025 and 100% in 2026. Furthermore, the EU plans
to reduce the total volume of allowances in line with the EU’s
climate target at a pace determined by an annual reduction
factor. This linear reduction factor is set at 4.3% per year over
the period 2024–2027 and 4.4% per year from 2028, gradually
removing available carbon allowances and thereby lowering the
overall emissions from sectors and industries within the regula-
tory scope.
However, the defined target levels and time periods of these
pathways are currently not aligned with limiting global warming to
1.5°C, nor with the transitional pathway defined for the maritime
sector by the Science-Based Targets Initiative. For more informa-
tion regarding emissions targets, see E1-4 under 'Emissions'.
Embedded in strategy and business model
Color Group’s transition plan is embedded in the company’s sustain-
ability strategy, which is integrated into its business strategy,
annual financial planning processes and long-term investment plan
and approved by the Board of Directors. The President and CEO of
Color Line is responsible for ensuring the transition plan is imple-
mented and has delegated authority to the relevant Executive Vice
Presidents. Color Group’s transition plan supports the company’s
ambition of becoming Europe’s leading provider of cruise and cargo
services and to reach net zero by 2050, signifying politically-backed
efforts to shift more transportation from road to sea.
Color Group has established a comprehensive sustainability
strategy covering all main relevant ESG aspects for the company
and its operations. The strategy’s seven focus areas are under-
pinned by a project portfolio consisting of a total of 19 projects,
and the program is monitored and followed up by dedicated
group strategy meetings on a monthly basis. The top priority
among climate-related initiatives within the strategic focus
areas is 'Towards emission-free operations', in which the gradual
conversion of the fleet towards net-zero propulsion by 2050 is
fundamental from a strategic, operational, financial and regulatory
perspective.
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0
100 000
200 000
300 000
400 000
500 000
2050
emissions
2040
emissions
2030
emissions
Scope 3
Other
Scope 3
Fuel
Scope 2Scope 1
Other
Scope 1
Ship emissions
2024
emissions
2023
emissions
494 996
470 983
39 028 358 128 6 957
14 009
410 686
232 570
ROADMAP TO REDUCE EMISSIONS BEFORE 2030
Scope 1
Scope 2
Scope 3
THE THREE MAIN DECARBONIZATION
LEVERS ARE MADE UP OF A COMBINATION
OF SCOPE 1, 2 AND 3 EMISSIONS.
Lever 1 – A net-zero fleet
This is comprised of Scope 1 Ship emissions, Scope 3 Fuel and the
parts of Scope 2 that relate to shorepower for the fleet.
Lever 2 – Zero-emission and energy-efficient operations
This consists of Scope 1 Other and the parts of Scope 2 that relate
to the energy demands of the company’s building portfolio.
Lever 3 – Decarbonizing the supply chain
This is represented by Scope 3 Other.
73.6%346 399
1 827
122 757
0.4%
26.1%
EMISSIONS 2024
tCO
2
e, %
Scope 1
Scope 2
Scope 3
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Decarbonization levers
E1-1 Transition plan for climate change mitigation
E1-3 Actions and resources in relation to climate change policies
Color Group’s transition plan is focused on decarbonizing
direct fleet emissions, as these represent the majority of
total emissions and are directly within the company’s control.
However, to reach net zero, Color Group must decarbonize all
operations and its value chain. The transition plan is achieved
through the following decarbonization levers:
• A net-zero fleet.
• Zero-emission and energy-efficient operations.
• Decarbonizing the supply chain.
A net-zero fleet
Color Group is closely monitoring developments within a broad
range of technologies and alternative fuel options for maritime
decarbonization, although technical maturity and market avail-
ability is still limited for several of these potential options. The
company has led two key studies under the Norwegian Green
Shipping Program – the first on ammonia in 2017 and the second as
a multi-fuel study to realize zero-emission propulsion for fast-going
ferries in 2022 – providing key knowledge both to Color Group and
the broader maritime cluster.
This insight has enabled the company to further mature its transition
plan, especially in relation to the latter study aimed at the two routes
between Norway and Denmark. Since hybridization with large-
scale onboard battery capacity provides the most energy-efficient
propulsion alternative when feasible, this constitutes a potential
decarbonization pathway for the relatively short routes between
Norway and Denmark when combined with multi-fuel machinery that
has the technical ability to operate on a range of zero and near-zero
fuels. The concept also builds on existing technical, operational and
financial competence and experience from M/S Color Hybrid, which
the company launched on its route between Norway and Sweden
as the then largest plug-in hybrid in the world in 2019. As further
maturation of battery technology is expected to lower costs, reduce
weight and increase performance, hybridization also holds the
potential to gradually provide a viable maritime decarbonization
option for larger ships and longer routes, provided technological
development and maturity is reached in due time
Reductions to 2030
Ahead of 2030 the company’s focus will be on reducing fuel-con-
sumption year-on-year through energy-efficiency measures
and an increased use of biofuel, which will reduce both Scope 1
emissions and Scope 3 Fuel emissions. Energy-efficiency measures
include route optimization, experimenting with different types of
anti-fouling, hull-form optimization, customized propulsion, route
schedule adjustments and regular hull cleaning to reduce water
resistance, as well as small retrofits to optimize engine functionality.
In 2024, M/S Color Fantasy, was coated with silicon, after M/S
Color Magic and M/S Superspeed 1 had received similar coatings
from 2019 to 2023. M/S Superspeed 1 and M/S Superspeed 2 have
also experimented with biofuel and changes in route schedules in
the off and shoulder seasons to reduce fuel use. Going forward,
biofuel will also be a larger component of the energy mix. All
Norwegian ports and the port of Kiel have shorepower supply that
the company’s ships plug into when at berth, reducing emissions.
The company is also working closely with the ports of Hirtshals and
Strömstad in order to realize availability of shorepower by 2030.
This will further reduce emissions on these routes.
The investments needed to achieve the expected emission
reductions by 2030 have been included in Color Group’s five-
year investment plan, which has been approved by its Board of
Directors. The estimated size of the necessary financial resources
is in the region of NOK 35 million per year in capital expenses.
Operational expenses will vary between NOK 40–130 million per
year, depending on the amount of biofuel used each year. Color
Group does not currently have a CapEx plan aligned with the
criteria in the EU Taxonomy. More information on ship alignment
with the taxonomy is provided under ‘EU Taxonomy’.
Pathway to 2050
Beyond 2030, Color Group will employ several measures to gradu-
ally reduce fleet emissions to reach the target of net zero in 2050,
and the company is currently exploring different technologies both
in relation to retrofit solutions and newbuilds. Color Group is plan-
ning to execute its post-2030 transition plan in two broad tranches,
focusing on the three shorter transportation routes between
Norway–Denmark and Norway–Sweden in the period 2030–2040,
and on the Oslo–Kiel route in the period 2040–2050.
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While no investment decisions have yet been made for the period
2030–2050, Color Group is currently in an early feasibility phase
regarding the first tranche, which involves exploring hybridization
on the two routes between Norway and Denmark and increasing
battery propulsion on M/S Color Hybrid between Norway and
Sweden. While the former will require extensive technical, financial
and market studies as well as further technological development
and innovation, the latter is mostly dependent on the establishment
of shore and charging power also in Strömstad, Sweden.
For the possible hybridization of Color Group’s two routes between
Norway and Denmark, the company would first need to verify both
the feasibility of extensive shore-based infrastructure as well as
large-scale onboard battery capacity, either through retrofitting
existing ships or through newbuilds. In addition to sourcing large
amounts of power, the shore-based infrastructure will require access
to significant grid capacity and charging facilities, and possibly
also dedicated battery energy storage systems (BESS) in port.
The ships would need to be able to carry the weight and volume of
large-scale battery packs, combined with multi-fuel machinery to
support propulsion and redundancy, based on zero or near-zero fuel
alternatives. Color Group is already exploring all main elements of
this possible first-tranche (2030–2040) initiative from a technical,
regulatory and financial perspective, although no investment deci
-
sions have yet been made. While all the required main technology
elements have reached maturity, more work is still needed before it
is possible to conclude that they may successfully be combined on
such a scale. It also requires extensive cooperation with a range of
industry-leading actors within battery technology and other infra
-
structure elements on land and on board, and successful regulatory
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processes in all relevant ports (Kristiansand and Larvik in Norway;
Hirtshals in Denmark). The company currently cannot conclude what
this initiative would require in terms of investments and operating
costs. However, a qualified assumption would be that although
capital expenditure requirements could reach significantly above
conventional solutions, all-in operating costs would become increas
-
ingly competitive in comparison with conventional fuel propulsion,
mainly due to climate-related costs. Furthermore, electric propulsion
should also remain competitive vis-à-vis other zero or near-zero
fuels, since these would need to be largely based on renewable
energy with energy losses throughout their value chain.
The remaining first-tranche initiatives relating to M/S Color Hybrid
is from a technical perspective mostly dependent on access to the
required onshore grid capacity for charging power in both Sandefjord,
Norway and Strömstad, Sweden, as the ship has built-in optionality
to extend its current onboard battery capacity. For this case, the
technical and regulatory uncertainties are considerably lower, and
required investments would be limited compared to the possible
hybridization of the two Norway-Denmark routes. The company is in
ongoing dialogue with relevant Swedish authorities regarding estab
-
lishment of shore and charging power in the port of Strömstad.
The second-tranche transition (2040–2050) is dependent on further
technological development for larger ships sailing longer routes
to provide further clarity on the technical, regulatory and financial
feasibility of either converting the existing ships to carbon-neu
-
tral propulsion or replacing the current ships with emission-free
newbuilds of similar size and capacity. Color Group is closely
monitoring developments within this field and is an active participant
in relevant Norwegian and European networks.
Zero-emission and energy-efficient operations
Besides the ships, the remaining Scope 1 emissions stem from
minor leakage of refrigerants from closed systems (onboard ships),
and the fuel combustion of company cars and vehicles used for
loading and unloading goods and cargo in ports. The company
will work to reduce leakages of refrigerants through surveillance,
maintenance measures and new technical solutions. By 2030, all
leased company cars and port vehicles will be low or zero-emission
vehicles. In 2024, 63% of leased company cars were fully electric
and 28% were hybrid, resulting in only 9% being fully fossil-fueled.
Through energy-efficiency measures implemented in older termi-
nals and offices, such as upgrading ventilation systems, changing
to LED lightbulbs and installation of new windows, the company
aims to gradually reduce energy demand within its building port-
folio. The company will continue to explore new ways to increase
the energy efficiency in all buildings. Newer buildings, such as
the logistics warehouse in Hirtshals and the new wing at Color
Hotel Skagen currently under construction, are highly energy
efficient and the warehouse is taxonomy-aligned (2024). For more
information on resource need and investments connected to
energy- efficient buildings, see the EU Taxonomy description.
Decarbonizing the supply chain
Color Group is presenting its first complete climate account in
2024 that includes all relevant Scope 3 categories for operations.
This provides a more granular understanding of prioritizations
and focus areas to reduce emissions within the company’s supply
chain. For Color Group, the focus needs to be on 'fuel and ener-
gy-related activities' (51% of Scope 3; 13% of total GHG emissions)
and 'purchased goods and services' (41% of Scope 3; 11% of total
GHG emissions). Through stronger sustainability requirements in
procurement policies and strategic partnerships with large-scale
suppliers, the company aims to further reduce Scope 3 emissions
from purchased goods and services going forward. The company
has initiated dialogue with its largest commercial supplier on
how to improve data quality and realize emission cuts within the
purchased goods and services category.
Climate-related policies
E1-2 Policies related to climate change mitigation
In addition to complying with international maritime regulations,
such as the IMO’s CII regulation, and the EU’s FuelEU Maritime and
the EU ETS, the organization has implemented policies specifically to
address climate change, energy efficiency and climate-change adap
-
tation. Color Group’s policies ensure sustainable, efficient and safe
maritime operations, while focusing on reducing the carbon footprint
and enhancing energy efficiency in land and sea operations.
In 2024, Color Group created a new overarching climate and envi-
ronment policy to consolidate the climate-related principles that
were dispersed across various existing policies and procedures. The
aim of the policy is to reduce emissions, mitigate risk and capture
opportunities in the areas of climate change, pollution and water.
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The policy covers all of Color Group’s own operations, both at sea
and on land, in addition to the company’s value chain. Responsibility
for implementing and following-up the policy is delegated to the
President and CEO of Color Line. It is supported and detailed by a
comprehensive deck of policies, guidelines and procedures that
ensure safe port operations and effective route planning.
To enhance climate adaptation, Color Group’s policies specify that
the company maintains infrastructure and ships designed to with-
stand harsh weather conditions and integrates real-time weather
monitoring systems to ensure operational resilience. Onshore oper-
ations shall be conducted safely and in compliance with regulations.
Color Group’s climate policy and procedures also describe how to
ensure an increase in energy efficiency across operations, both in
terminals/warehouses and on ships, to minimize energy consump
-
tion. The overarching climate and environment policy specifies that
Color Group shall also increase the use of renewable energy sources.
To mitigate climate change in the company’s value chain through
emission reductions, Color Group has included environmental
requirements both in its supplier code of conduct and procurement
policy. Furthermore, in 2024, Color Group updated its procurement
policy to include a requirement that sustainability should be weighted
in procurement decisions when the value exceeds NOK 150 000 To
define sustainability in the context of Color Group, the company has
leading sustainability principles for each relevant procurement cate
-
gory that will be updated and expanded over time.
Color Group’s climate-related policies are monitored, accounted
for and made available to stakeholders in the same manner as any
other policy in the company. These processes are described in the
'Corporate Governance'. In addition, the main goals and focus of
the climate and environment policy is included in Color Group’s
sustainability strategy, which is communicated widely in ongoing
dialogues with various stakeholders.
Performance, metrics and targets
E1-4 Targets related to climate change mitigation and adaptation
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
Color Group’s material impacts, risks and opportunities related
to climate change mitigation and adaptation are evaluated based
on the metrics presented in this section. The methodologies
used to calculate or measure GHG emissions are provided in the
accounting policies. In terms of the climate accounts, operational
control over emissions is equal to financial control, and vice versa.
Targets related to GHG emissions have been set by the executive
management team of Color Line, in cooperation with the affected
departments for each relevant target, and have been approved by
the Board. Information on target alignment with the Paris agree-
ment, international, regional and national policy goals and climate
scenarios is provided under E1-1. Descriptions of expected decar-
bonization levers and their contributions to achieve the company’s
emission targets are also provided under E1-1. GHG emission
calculations follow the same consolidation principles as the finan-
cial statement, in accordance with ESRS 1, paragraph 62-67. Color
Group’s climate accounting includes all activities under the compa-
ny’s operational and financial control.
Color Group’s total GHG emissions in 2024 were 470 983 tCO
2
e
(location-based), of which Scope 1 accounts for 74% of emissions,
Scope 2 (location-based) 0.4% and Scope 3 26%. This represents a
5% reduction from 2023, where the total was 494 996 tCO
2
e. This
change is for the most part due to changes in Scope 3 factors.
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Scope 1
Color Group’s Scope 1 emissions encompass all direct GHG emis-
sions from sources owned or controlled by the company, including
fuel consumption, refrigerant (HFCs) leakage, and emissions from
company-controlled transportation. In 2024, total Scope 1 emis-
sions were 346 399 tCO
2
e.
Ship fuel consumption accounted for the largest share of the
company’s Scope 1 emissions, comprising 99.4% of the total.
This reflects the significant energy demands of ship operations,
which predominantly rely on fossil fuels. Refrigerant leakage from
cooling and air conditioning systems represented 0.5% of Scope 1
emissions, and heating oil represented 0.01%. Lastly, company-op-
erated transportation, such as vehicles used in port operations and
land-based logistics represented 0.1%.
Targets for reducing Scope 1 emissions are derived from the transi-
tion plan, and more information on how they have been developed
is provided under E1-1. Color Group’s compliance pathway follows
periodic percentage reductions set by the EU until 2050.
From 2023 to 2024 Color Group reduced emissions from refrig-
erant leakage, heating oil, and company-operated transportation
by 38%. This was due to emissions from the diesel and petrol
consumption of company cars being reduced by 52% and
consumption of burning oil for heating by 18%. The company has
also been able to phase out two out of three refrigerant gases
(R-134a and R-407 C) and reduce the consumption of the third
(R-407 F), resulting in 41% emission reductions from refrigerants.
Color Group’s efforts to reduce marine fuel consumption, as part
of the transition plan to reach the company’s 2030 goals, is well
underway. Nevertheless, from 2023 to 2024 total emissions from
the company fleet increased slightly, partly due to the number of
sailings increasing from 4557 in 2023 to 4670 in 2024. Another
factor is the degradation effect of silicone-based hull coating, which
provides significant fuel reductions that gradually lessen as the sili
-
cone wears off. Silicone was applied to M/S Color Fantasy in January
2024, but M/S Color Magic was at the very end of its first silicone
period, offsetting the gains from M/S Color Fantasy. In addition, the
company experienced some technical issues with the shorepower
connection in several destination ports, which resulted in higher
fuel consumption at shore due to an above-average amount of days
without shorepower.
In 2024, 39.74% of Scope 1 GHG emissions were covered by the
regulated emission trading scheme EU ETS implemented for ship-
ping. This percentage is directly linked to the 40% of the fleet fuel
consumption that fell under the EU ETS regulation in 2024, which
is set to increase in 2025 and 2026 in line with the escalation of
the EU ETS. Currently, Scope 1 GHG emissions reporting under the
EU ETS excludes methane (CH
4
) and nitrous oxide (N
2
O), in accord-
ance with the regulatory timeline. However, starting in 2026,
Color Group will include these emissions in the company’s EU ETS
reporting as part of the EU’s phased approach to implementation
of the emissions regulation.
Scope 2
Color Group’s Scope 2 emissions represent the indirect GHG
emissions resulting from the purchase of electricity (buildings and
shorepower) and district heating in Norway, Sweden, Denmark and
Germany. Color Group does not have any guarantees of origin or
energy attribute certificates for the electricity consumed in 2024.
In 2024, Scope 2 emissions under the location-based method
were 1 827 tCO
2
e, reflecting the average energy mix of the grid in
the respective countries. Under the market-based method, which
accounts for specific energy procurement choices (e.g. renewable
energy contracts or supplier agreements), the Scope 2 emissions
were 8809 tCO
2
e. This is a reduction from 2023 by 11% and 6%,
respectively. The difference can mostly be attributed to Norway
and is linked to issues with shorepower in 2024 described under
Scope 1, resulting in a decrease in energy consumption.
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Scope 3
For 2024, Color Group included several new categories within Scope 3 reporting, which explains the
increase in Scope 3 emissions compared with the company’s Annual Report for 2023. All 15 Scope
3 categories have been assessed for relevance and significance, resulting in eight categories being
calculated and reported on. The entirety of Color Group’s operations is included in Scope 3 calculations,
including relevant and material parts of the value chain. More information on these assessments and
calculation methods can be found under 'Accounting policies'. To be able to use 2023 as the base year
going forward, Color Group has also calculated values for all categories for 2023.
The most significant categories are 'purchased goods and services' and 'fuel and energy-related activ-
ities', which make up 41% and 51% respectively of total Scope 3 emissions. Color Group is continuously
working on improving the data quality to ensure accurate reporting of emissions, especially for the most
significant categories.
The Group’s Scope 3 fuel targets directly follow emission targets defined for Scope 1 Ship emissions since
emissions from this category are a result of the fleet fuel consumption and a fixed factor. The company has
separate targets for the rest of the Scope 3 categories, Scope 3 Other, which were set based on expected
decarbonization pathways for the various sectors and dialogue with main suppliers.
Comparing 2024 emissions with base-year 2023 calculations, Scope 3 emissions were reduced by 17%,
with the biggest reductions stemming from purchased goods and services, capital goods, and upstream
transportation and distribution. These categories are all calculated using the spend-based method, which
is sensitive to fluctuations in exchange rates and market development in general. The reductions in these
categories are due to changes in such factors from 2023 to 2024, as the spend-based amounts are quite
similar. Another category with large reductions is waste generated in operations, which is due to DEFRA
methodology updates in 2024. This resulted in a 70% decrease in a selection of emission factors used in
the calculations.
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Retrospective Milestones and target years
Unit
Base year
(2023)
Comparative
(2023) 2024 %N/N-1 2025 2030 2050
Annual %
target/base
year
Scope 1 GHG emissions
Gross scope 1 GHG emissions tCO
2
e 345 474 345 474 346 399 0.3% N/A -11.0% -100.0% 1.6%
Percentage of scope 1 GHG emissions from regulated
emission trading schemes % 39.6% 39.6% 39.7% 0.4% 70.0% 99.4% 99.4% N/A
Biogenic scope 1 emissions of CO
2
from the combustion of
biomass tCO
2
e 0 0 0 0.0% 0.0% 0.0% 0.0% N/A
Scope 2 GHG emissions
Gross location-based scope 2 GHG emissions tCO
2
e 2 041 2 041 1 827 -10.5% N/A -17.0% -100.0% 2.4%
Gross market-based scope 2 GHG emissions tCO
2
e 9 409 9 409 8 809 -6.4% N/A -17.0% -100.0% 2.4%
Scope 3 GHG emissions
Total gross indirect (scope 3) emissions tCO
2
e 147 480 147 480 122 757 -17.0% N/A -31.0% -100.0% 4.4%
1 Purchased goods and services tCO
2
e 70 702 70 702 50 150 -29.0% N/A N/A -100.0% N/A
2 Capital goods tCO
2
e 7 428 7 428 5 262 -29.0% N/A N/A -100.0% N/A
3 Fuel and energy-related activities tCO
2
e 62 517 62 517 62 795 0.4% N/A -11.0% -100.0% 1.5%
4 Upstream transportation and distribution tCO
2
e 2 977 2 977 1 592 -47.0% N/A N/A -100.0% N/A
5 Waste generated in operations tCO
2
e 2 075 2 075 1 382 -33.0% N/A N/A -100.0% N/A
6 Business travel tCO
2
e 113 113 121 7.0% N/A N/A -100.0% N/A
7 Employee commuting tCO
2
e 1 299 1 299 1 109 -15.0% N/A N/A -100.0% N/A
12 End-of-life treatment of sold products tCO
2
e 368 368 346 -6.0% N/A N/A -100.0% N/A
Total GHG emissions
Total GHG emissions (location-based) tCO
2
e 494 996 494 996 470 983 -5.0% N/A -17.0% -100.0% 2.4%
Total GHG emissions (market-based) tCO
2
e 502 363 502 363 477 965 -5.0% N/A -17.0% -100.0% 2.4%
GHG intensity per net revenue 2024 2023 %N/N-1
Total GHG emissions (location-based) per
net revenue (tCO
2
eq/monetary unit) 71.1 74.7 -5%
Total GHG emissions (market-based) per net
revenue (tCO
2
eq/monetary unit) 72.2 75.8 -5%
Connectivity of GHG intensity based on revenue
with financial reporting information (MNOK) 2024 2023
Net revenue used to calculate GHG intensity 6 624 6 247
Net revenue (other) 0 0
Total net revenue (financial statements) 6 624 6 247
Biogenic emissions from
transportation Unit 2024
Base year
(2023) %N/N-1
Biodiesel ME tCO
2
e 2 251 2 452 -8%
Biodiesel HVO tCO
2
e 1 28 -96%
Bioethanol tCO
2
e 22 2 +1000%
Total biogenic emissions tCO
2
e 2 274 2 482 -8%
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E1-5 Energy consumption and mix
Color Group’s material impacts, risks and opportunities related
to energy are evaluated based on the metrics presented in this
section. The energy consumption is primarily driven by the
use of fuel, electricity and heating across operations. In 2024,
total energy consumption amounted to 1 288 849 MWh, with
approximately 99% derived from fuel used aboard the ships,
predominantly crude oil and petroleum products. In total numbers,
there have been no major changes in energy consumption from
2023 to 2024, but there has been a slight increase in the share
of fossil sources of energy. This is due to changes in the fuel
consumption of the ships, which is explained in more detail under
E1-6 and Scope 1.
The high climate-impact sector that is used to determine Color
Group’s energy intensity is transportation. This economic activity
covers almost all of Color Group’s energy consumption and
revenue sources. Energy consumption and revenue from Color
Hotel Skagen, which falls under the hotel and accommodation
sector, is not included as this economic activity is not defined as a
“high climate-impact sector”.
Energy consumption and mix 2024 2023
(1) Fuel consumption from coal and coal products (MWh) N/A N/A
(2) Fuel consumption from crude oil and petroleum products (MWh) 1 256 735 1 248 178
(3) Fuel consumption from natural gas (MWh) N/A N/A
(4) Fuel consumption from other fossil sources (MWh) N/A N/A
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 18 499 18 891
(6) Total fossil energy consumption (MWh) 1 275 234 1 267 069
Share of fossil sources in total energy consumption (%) 0.99 0.99
(7) Consumption from nuclear sources (MWh) 3010 3641
Share of consumption from nuclear sources in total energy consumption (%) 0.002 0.003
(8) Fuel consumption from renewable sources, including biomass (also comprising industrial and municipal waste of biological origin,
biogas, renewable hydrogen, etc.) (MWh) 8632 9411
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 1973 4299
(10) The consumption of self-generated non-fuel renewable energy (MWh) 0.00 0.00
(11) Total renewable energy consumption (MWh) 10 605 13 710
Share of renewable sources in total energy consumption (%) 0.01 0.01
Total energy consumption (MWh) 1 288 849 1 284 419
Energy intensity of activities in high climate-impact sectors 2024 2023
Total energy consumption from activities in high climate-impact sectors per net revenue from activities in high climate-impact sectors
(MWh/TNOK) 0.1961 0.2075
Connectivity of energy intensity based on net revenue with financial reporting information 2024 2023
Net revenue from activities in high climate-impact sectors used to calculate energy intensity 6 558 058 TNOK 6 180 701 TNOK
Net revenue (other) 66 209 TNOK 66 256 TNOK
Total net revenue (financial statements) 6 624 267 TNOK 6 246 957 TNOK
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Tons Tons = metric tons
Scope 1 Scope 1 emissions encompass those generated from the combustion of fuel by Color Group. Direct carbon emissions from
ships, company cars, tug masters, trucks, reach stackers, heating oil and refrigerants are calculated based on the amount
consumed, multiplied by the corresponding emission factor for each fuel type. The emission factors for the fuels used on the
ships, heavy fuel oil (HFO) and marine gas oil (MGO), are from the FuelEU Directive. These emissions and factors are validated
by DNV in April the following year. Emission factors for company cars, tug masters, trucks, reach stackers, heating oil and
refrigerants are derived from DEFRA 2024 standards. Factors used to convert CH
4
and N
2
O emissions to CO
2
e are also taken
from DEFRA 2024.
The company’s ships are covered by the EU ETS, meaning that Scope 1 ship emissions are calculated based on the EU ETS
methodology, in accordance with E1-6 AR 43 (e). This means that any biofuel used by the ships has an emission factor of zero,
in accordance with the goal of the EU ETS to encourage transition towards renewable fuels. Emissions of CH
4
and N
2
O will
only be included in Scope 1 from 2026, in line with the planned phase-in of the scheme.
Scope 2 Scope 2 emissions include indirect greenhouse gas emissions from the generation of electricity and heat purchased and
consumed by Color Group. These emissions are calculated by multiplying the purchased volumes of electricity and district
heating (kWh) by country-specific emission factors.
The factors used for electricity differ between location-based and market-based emissions. Location-based emissions are
calculated using emission factors from the IEA (2024), while market-based emissions utilize factors provided by AIB (2024).
The factors used to calculate district heating are taken directly from the supplier for each location.
Scope 3 The calculation of Scope 3 emissions follows the same reporting parameters as the rest of the report. Color Group assessed
its total Scope 3 emissions based on the categories (C1-C15) defined in the GHG Protocol Corporate Value Chain (Scope 3)
Accounting and Reporting Standard. The identified relevant categories for Color Group are C1-C7 and C12.
The calculation methods used are mostly based on spend data (46%) and average data (52%). Supplier-specific data
makes up 0.4% and waste-type-specific data makes up 1.1% of emissions. Color Group is already working on improving the
calculation methods and data, and will gradually move away from the spend-based method.
The company has calculated most of the categories with the help of software from CEMAsys and its emission factors.
Category 1: Calculated using categorized spend data (purchased goods and services) multiplied by relevant emission
factors. The Group has calculated emissions for the largest supplier categories representing 80% of spend, including all
supplier categories individually representing more than 1% of spend, and then extrapolated to the remaining supplier
categories to cover all the activities that represent emissions within this category.
Category 2: Calculated using categorized spend-data (activated capital goods) multiplied by relevant emission factors.
Emissions have been calculated for all new capital goods purchased or acquired in 2024.
Disclosure requirement Accounting policy
Category 3: Calculated in the same way as Scope 1 and Scope 2, but using well-to-tank factors from FuelEU Maritime for
ship fuel and DEFRA for the remaining fuel types, electricity and district heating.
Category 4: Calculated using categorized spend data (transport and freight activities) multiplied by relevant emission
factors. Emissions have been calculated for all purchased transport activities in 2024. A challenge with this spend data is
that not all suppliers separate the cost of transport and the cost of goods in their invoices, resulting in a strong likelihood
that there are 'hidden' transport costs under C1.
Category 5: Calculated using waste-type-specific weight data and handling method from each supplier, multiplied by the
relevant emission factors for each waste type.
Category 6: Calculated using a mix of supplier-specific data (mainly flights), average data (hotel nights and train trips) and
distance-based data (car travel). The average and distance-based data are multiplied by relevant emission factors.
Category 7: Calculated using a mix of supplier-specific data (leased cars and flights), average data (general commuting)
and distance-based data (car travel). The average and distance-based data are multiplied by relevant emission factors.
Category 8: Not relevant. Any activity that may fall under this category is already included in other categories or in Scope 1
(such as leasing of trucks and company cars).
Category 9: Not relevant. The company has no downstream distribution of sold products, as they are sold onboard the
ships.
Category 10: Not relevant. Color Group does not sell any 'intermediate products'.
Category 11: Not relevant. Color Group mainly sells products in the 'indirect use-phase emissions' category, with a level of
emissions that is not significant for the business.
Category 12: Calculated based on sales data, using statistical data to get an average weight of waste per category,
multiplied by relevant emission factors.
Category 13: Not relevant. Color Group does not lease assets downstream.
Category 14: Not relevant. Color Group does not have any franchises.
Category 15: Not relevant. Color Group is not a financial institution, nor does the company have any significant investments
beyond own operations.
Total GHG emissions Total GHG emissions are determined by combining Scope 1, Scope 2, and Scope 3 emissions.
GHG intensity per net revenue Total GHG emissions per net revenue has been calculated by dividing total GHG emissions with net revenue.
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Fuel consumption from crude
oil and petroleum products
Includes the consumption of Marine Gas Oil (MGO) and Heavy Fuel Oil (HFO) of the ships, the petrol and diesel consumption
of the leased company cars, and the diesel consumption of the port vehicles such as trucks, tug masters and reach stackers.
Factors from DEFRA 2024 and Statistics Norway (SSB) were used to convert consumption from liters and tons to megawatt-
hours.
Consumption of purchased or
acquired electricity, heat, steam
and cooling from fossil sources
Includes the consumption of electricity and district heating in all locations, heating oil and the shorepower used by the ships,
stemming from fossil sources. This calculation is based on the share of fossil sources in the market-based mix of electricity in
the operating countries. The percentage shares are taken from AIB 2023 using their residual mix. The fossil percentage from
district heating was taken directly from the supplier in each region.
Consumption from nuclear
sources
Includes the consumption of electricity and district heating in all locations, and the shorepower used by the ships, stemming
from nuclear sources. This calculation is based on the share of nuclear sources in the market-based mix of electricity in the
operating countries. The percentage shares are taken from AIB 2023 using their residual mix. The nuclear percentage from
district heating was taken directly from the supplier in each region.
Fuel consumption from
renewable sources
Includes the consumption of biofuel (FAME) of the ships and company-operated transportation. Factors from the supplier
were used to convert consumption from tons to megawatt-hours.
Consumption of purchased or
acquired electricity, heat, steam
and cooling from renewable
sources
Includes the consumption of electricity and district heating at all company locations, and shorepower used by the company’s
ships, stemming from renewable sources. This calculation is based on the share of renewable sources in the market-based
mix of electricity in the company’s operating countries. The percentage shares are taken from AIB 2023 using their residual
mix. The renewable percentage from district heating was taken directly from the supplier in each region.
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E2 Pollution
Color Group is dedicated and takes a
proactive approach to preventing and
minimizing the environmental impacts of
the pollution associated with the company’s
operations.
Material impacts, risks and opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
Type Material impact/risk/opportunity
Location in
value chain Time frame
Pollution of air
Actual negative impact Air pollution from ship operations (NO
x
, SO
2
, PM10, PM2.5) harm local air quality. Own operation All
Actual negative impact Air pollution from value-chain activities harm local air quality. Own operation All
Risk Stricter regulations on NO
x
, SO
2
, and PM emissions from ships can lead to significant investment
costs.
Own operation Medium and long term
Pollution of water
Potential negative impact Water pollution from accidental oil spills. Own operation All
Pollution of living organisms and food resources
Actual negative impact Pollution from ship operations (CO
2
, NO
x
, Sox, PM, oil spills) can affect marine and coastal
organisms.
Own operation All
In the process of identifying material pollution-related impacts, risks and opportunities, a general analysis covering Color Group’s operations
and value chain was conducted. However, detailed screening of specific site locations and business activities was not included. Neither was
consultations with affected communities. The company acknowledges these gaps in the analysis and is committed to gradually enhance the
process going forward.
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Policies and approach
E2-1 Policies related to pollution
Color Group aims to minimize the impact on the ocean and environ-
ment from pollution resulting from the company’s operations and
activities.
Color Group has implemented policies aimed at preventing pollu-
tion, adhering to international maritime standards like the IMO’s
MARPOL conventions, and taking additional steps to protect
marine ecosystems. The responsibility of these policies is delegated
to the EVP Technical Maritime Operation. The topic of pollution
is also subject to the overarching climate and environment policy
described in E1 under Policies and approach.
The pollution-related policies include strict measures to control air
pollution, targeting reductions in nitrogen oxide (NO
x
) and sulfur
oxide (SO
x
) emissions. Color Group has implemented policies for
treatment of greywater, blackwater, and scrubbers to prevent envi-
ronmental pollution. These policies include a strict prohibition on
the discharge of untreated wastewater. Additionally, the company
has established procedures for the proper management and
disposal of sewage from ships, ensuring compliance with MARPOL
Annex IV regulations. Detailed checklists and procedures are in
place to prevent and respond to oil spills, including regular mainte-
nance and inspection of equipment, crew training, and emergency
response plans to contain and mitigate the effects of any oil spill, in
line with MARPOL Annex I regulations.
Color Group has also included requirements in the company’s
supplier code of conduct in relation to pollution from wastewater
and solid waste, air emissions, and chemical and hazardous mate-
rials to mitigate pollution in the supply chain.
Color Group’s pollution-related policies are monitored, accounted
for and made available to stakeholders in the same manner as any
other policy in the company. These processes are described under
'Corporate Governance'. In addition, the main goals and focus of
the climate and environment policy are included in Color Group’s
sustainability strategy, which is communicated widely in ongoing
dialogues with various stakeholders.
Key actions
E2-2 Actions and resources related to pollution
Color Group’s actions ensure alignment with relevant regulations
on pollution. The company monitors NO
x
and SO
x
emissions and
discharges to water. The company’s policies on preventing water
pollution also result in actions such as close monitoring and regular
maintenance of the treatment systems for wastewater onboard
the ships, with procedures for avoiding oil spills and waste-sorting
systems onboard to prevent waste ending up in the ocean.
Low levels of NO
x
and SO
x
are achieved through the use of
low-sulfur fuels and alternative fuels such as BIO 100, ensuring
compliance with MARPOL Annex VI standards. Additional
reductions are achieved through exhaust gas cleaning systems
(scrubbers), ensuring compliance with MEPC 340(77).
Color Group has not experienced any major incidents or deposits
related to pollution in 2024, and hence has not incurred any opera-
tional or capital expenditures in conjunction with this.
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Performance, metrics and targets
E2-3 Targets related to pollution
E2-4 Pollution of air, water and soil
Color Group’s material impacts, risks and opportunities related
to pollution are evaluated based on the metrics presented in this
section.
In addition to GHG emissions, Color Group also emits pollutants
such as nitrogen oxides (NO
x
), sulfur oxides (SO
x
), and refrigerants
(HFCs), which are listed in Annex II of Regulation (EC) No 166/2006
of the European Parliament and of the Council 64 (European
Pollutant Release and Transfer Register 'E-PRTR Regulation').
These pollutants primarily result from fuel combustion (NO
x
and
SO
x
) and leakages from cooling systems (HFCs-refrigerants).
Monitoring and reducing these emissions are central to the
company’s environmental management efforts. Color Group saw a
slight increase in the volumes of SO
x
and NO
x
emitted from 2023
to 2024, which follows the slight increase in GHG emissions and
fuel consumption. However, the company witnessed a decrease in
refrigerant leakages of 41% in the same period. For a more detailed
explanation of the volume changes in SO
x
, NO
x
and HFCs, informa-
tion is provided under E1-6 'Performance, metrics and targets'.
Color Group aims for its SO
x
and NO
x
air pollution to follow the same reduction pathways laid out for the company’s GHG emissions reduc-
tions, as these correlate with its consumption of maritime fuels. For more information on these pathways, see E1-1 and E1-4. For leakages of
refrigerants (HFCs), the target is zero in 2050, with reductions occurring from 2030 to 2050. In terms of the CO
2
footprint of refrigerants, the
company’s targets can be found under E1-4 as part of the target levels for Scope 1 outside of direct emissions from the fleet.
The company’s approach to avoiding accidental oil spills is based on remaining compliant with strict laws and regulations. Color Group does not
currently have any targets or ambitions of performing beyond the relevant laws and regulations in this area.
Pollution of air and water
1
2024 2023
SO
x
(Air & Water) (Tonn) 110 109
NO
x
(Air & Water) (Tonn) 5 727 5 687
Hydrofluorocarbons (HFCs) (Kg) 1 104 1 886
1
Soil is deemed non-material for Color Group
Targets for SO
x
Targets for NO
x
Targets for HFCs
Year Tonn % Tonn % Kg %
2023 (base) 109 5 687 1 886
2030 97 -11% 5 061 -11% 1 886 0%
2035 82 -25% 4 265 -25%
2040 56 -49% 2 900 -49%
2045 32 -71% 1649 -71%
2050 0 -100% 0 -100% 0 100%
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SO
x
The following method has been used to calculate SO
x
emissions: Total fuel consumption (MGO and HFO in tons) multiplied by
the SECA limit of 0.10% (m/m).
The method for calculating SO
x
emissions from the consumption of HFO and MGO is in accordance with SECA regulations.
This metric has not been validated by any external bodies.
Source: ‘IMO – the 2020 global sulfur limit.’
NO
x
NO
x
emissions are the total amount of nitrogen oxides emitted, measured in tons.
The general method that has been used to calculate NO
x
emissions (ton NO
x
) is fuel consumption (HFO,MGO, BIO in tons)
multiplied by NO
x
factor divided by 1000.
Sources for NO
x
factor:
BIO: Norwegian Environment Agency report «Utslipp til luft fra Biodrivstoff´» (07.12.2021)
Boiler: «Forskrift om særavgifter - 3-19. Avgift på utslipp av NO
x
», lovdata.no
For Main and Aux engines, the following formula has been used to calculate the NO
x
factor:
Weighted NO
x
value (in g/kWh) multiplied by 1000, divided by the specific fuel consumption (in g/kWh)
Weighted NO
x
Value (g/kWh): This is the NO
x
emission factor derived from the EAIPP certificate, reflecting the emissions
produced per kilowatt-hour of energy generated.
Specific fuel consumption (g/kWh): This indicates the amount of fuel consumed per kilowatt-hour of energy produced,
measured in grams.
Assumptions
The specific fuel consumption is assumed to be 230 g/kWh (0.23) based on historical average values, as precise measurement
methods have not been consistently available. This value is defined in the technical files and is derived from engine testing.
It is important to note that these figures may vary between different engine types, and the values in the technical files are
theoretical. These may change under different operational conditions onboard a vessel. Therefore, while this assumption
provides a useful estimate, actual fuel consumption may differ based on specific circumstances and variations in engine
performance.
Hydrofluorocarbons Hydrofluorocarbons have been calculated by aggregating the consumption data provided by the supplier.
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E3 Water and
marine resources
Water is an essential resource for
Color Group’s own operations and
a key input in many of the goods
manufactured in the company’s
supply chain.
Material impacts, risks and opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
Type Material impact/risk/opportunity
Location in
value chain Time frame
Water
Actual negative impact The ships’ water consumption for hygiene, food preparation, maintenance, and cleaning onboard. Own operations All
Actual negative impact Water consumption in product and goods production for resale and own use, including raw
material extraction.
Value chain All
Actual negative impact Discharge to the ocean of various treated wastewaters, including scrubber water, and wash water
from external ship cleaning.
Own operation All
Actual positive impact Contributing to research by monitoring the sea and collecting data on water quality. Own operation All
In the process of identifying material water-related impacts, risks and opportunities, a general analysis covering Color Group’s operations
and value chain was conducted.However, detailed screening of assets and business activities was not included. Neither was consultations
with affected communities. The company acknowledges these gaps in the analysis and is committed to gradually improving the process going
forward. Material IROs identified come under the topics of water consumption, discharges to the ocean and contributions to research.
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Policies and approach
E3-1 Policies related to water and marine resources
Although water usage has not traditionally been a focus area for
Color Group, the company is committed to addressing, monitoring
and reducing water consumption.
Color Group has put in place policies to manage water responsibly,
ensuring efficient use across maritime and land-based operations.
These policies focus on minimizing freshwater consumption and
ensuring all ocean discharges are treated in accordance with rele-
vant regulations. The ships fill their water tanks in the Norwegian
home ports of Oslo, Larvik, Kristiansand, and Sandefjord with
water from the grid supply for the municipality. The company
does not currently have a policy on water treatment to reduce
total consumption. The policies related to water are subject to the
overarching climate and environment policy described in E1 under
'Policies and approach'. Policies related to water pollution are
covered by E2 under 'Policies and approach'.
To tackle water usage in the value chain, Color Group has updated
its procurement policy in 2024 to include ESG principles that will be
weighted in procurement decisions. The responsibility for this policy
is delegated to the EVP Commercial and Hotel Operation onboard
of Color Line. In procurement processes where water is a large
input resource for suppliers, the assessment must take into account
water consumption and reuse solutions. This criterion will be espe-
cially relevant for suppliers in water-intensive industries located
in areas of water risk, and can be used actively to reduce water
consumption in areas of water risk in the company’s value chain.
Color Group’s water-related policies are monitored, accounted
for and made available to stakeholders in the same manner as
any other policy in the company. These processes are described
in 'Corporate Governance'. In addition, the main goals and focus
of the climate and environment policy is included in Color Group’s
sustainability strategy, which is communicated widely in ongoing
dialogues with various stakeholders.
Key actions
E3-2 Actions and resources related to water and marine resources
2024 was the first year with complete measurement and moni-
toring of water usage for the ships in the fleet of Color Group, as
well as for all land-based locations. Color Group does not operate
in any areas of water risk. The company is currently establishing
routines to ensure that accurate data is collected and analyzed in a
timely manner. The most important actions for the company in this
respect will be to analyze water consumption, set targets for water
usage and define focused measures for how to reach these targets.
In terms of reducing water consumption in the value chain, the
company’s most important contribution is through procurement
decisions. In 2024, water was included as an assessment criterion in
the procurement policy, as described under 'Policies and approach'.
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Color Group is continuously monitoring discharges to water
to ensure the company remains compliant with any updated
regulations. When cleaning ship hulls, the company is using clean
freshwater, avoiding any chemicals. In addition, treatment systems
onboard for blackwater and greywater are highly efficient.
Color Group installed scrubber technology in the mid-2010s, while
this technology was relatively new within shipping. Color Group
therefore had open-loop scrubbers on all ships besides M/S Color
Hybrid from 2019, but the company will upgrade the scrubber
systems on M/S Color Magic, M/S Color Fantasy, M/S SuperSpeed
1
and M/S SuperSpeed 2 to more advanced systems in early 2025.
These extensive technology upgrades will first enable the ships to
operate the scrubber systems in hybrid mode (open/closed), and
later in net-zero discharge mode (i.e. without 'bleed-off'). This will
ensure compliance with new national regulations in Denmark and
Sweden going beyond international regulations in this area, first
requiring closed-loop operations in territorial waters from 1 July
2025 and then net-zero discharge from 2029. The scrubber retrofit
is expected to represent approximately NOK 260 million in capital
expenditures in 2024 and 2025, financed through earnings.
Color Group has since 2000 contributed to ocean research through
a partnership with the NIVA research institute for water and the
environment. The partnership enables the installation and follow-up
of the water monitoring equipment FerryBox onboard M/S Color
Fantasy. The data collected through these monitoring installations
are used actively in water and ocean research performed by NIVA
and partners. In 2025, similar FerryBox monitoring equipment
will be installed on M/S Color Hybrid on the route Sandefjord–
Strømstad, which traverses two national parks – Ytre Hvaler and
Kosterhavet.
Color Group does not currently have an action plan with a related
investment plan for mitigating risk and negative impacts and/or
capturing opportunities in connection with water consumption and
discharges to the ocean.
Performance, metrics and targets
E3-3 Targets related to water and marine resources
E3-4 Water consumption
Color Group does not currently have targets for reducing water
consumption as the company is still in the process of establishing
routines and improving data accuracy. The company plans
to develop relevant water consumption targets by the end of
2025. The company does not have any targets related to water
consumption in the value chain. In terms of discharges to water,
the company does not have targets beyond the scope of operating
in accordance with laws and regulations. Color Group does have a
target related to fully utilizing the ships towards furthering ocean
research through continuous monitoring of the ocean. More infor-
mation about this process is provided under 'Key actions'.
Color Group’s material impacts, risks and opportunities related to
water are evaluated based on the metrics presented in this section.
The company’s water consumption encompasses usage from various
sources within the organization’s operations. The largest portion
of the water consumption is dedicated to filling ships with potable
water, ensuring onboard needs of hotel and accommodation services
for both passengers and crew are met. Water is also utilized in Color
Hotel Skagen and the company’s central logistical warehouse in
Denmark, as well as in terminals and buildings across its operations
In 2024 Color Group’s water consumption was 262 856m
3
, which is a
slight increase compared with 2023, when the consumption was
256 815m
3
. The water intensity is 40m
3
per MNOK. The total
consumption of water in areas of water risk is zero, as the company
does not operate in areas of water risk. The total amount of water
that is recycled and reused is zero, and the total water stored is zero.
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Disclosure requirement Accounting policy
Water consumption Calculated by adding together the water consumption specified on invoices from all suppliers in every location for 2024.
Some of these amounts are estimated by the supplier as they do not have accurate measurements in time for the publishing
of this report due to the use of advance payment schemes. This metric is not validated by an external body.
Water intensity Total water consumption in m
3
divided by net revenue in NOK million. This metric is not validated by an external body.
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E5 Resource use and
circular economy
Color Group is a part of long and
complex value chains, both upstream and
downstream, making its sustainability
impact both direct and indirect. While the
company's operations include various
initiatives for waste handling, it is essential
to recognize that the majority of its
material impacts concerning E5 are linked
to waste management throughout the
entire value chain.
Material impacts, risks and opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
Type Material impact/risk/opportunity
Location in
value chain Time frame
Waste
Actual negative impact Generation and handling of waste from maintenance activities of the ships in shipyards. Value chain All
Actual negative impact Generation and handling of waste in the production of products for resale and own use. Value chain All
Actual negative impact Waste generated across own operations. Own operation All
Actual positive impact Generation and handling of waste from sold products. Value chain All
In the process of identifying material impacts, risks and opportunities related to resource use and the circular economy, a general analysis
covering Color Group’s operations and value chain was conducted. However, detailed screening of assets and business activities was not
included. Neither was consultations with affected communities. The company acknowledges these gaps in the analysis and is committed to
gradually improving the process going forward. The analysis identified waste management as Color Group’s material topic within E5, across
both the company’s own operations and value chain.
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Policies and approach
E5-1 Policies related to resource use and circular economy
Color Group has a waste management plan per ship to ensure
compliance with MARPOL Annex V, including the amendments in
resolution MEPC.201(62). This plan adheres to the International
Maritime Organization's (IMO) guidelines, specifically those
outlined in MEPC.201(62), MEPC.219(63) 2012 Guidelines for the
Implementation of MARPOL Annex V, and MEPC.220(63) 2012
Guidelines for the Development of Garbage Management Plans.
The plan also incorporates local and national requirements, such as
the Norwegian Maritime Authority's interpretation of MARPOL V
and MEPC.201(62).
The majority of Color Group's impacts within E5 are linked to waste
management within its value chain. In recognition of this significant
influence, the procurement policy has in 2024 been updated to
specify waste handling as a focus area in ESG procurement evalu-
ations. This commitment ensures that sustainability considerations
are integrated into purchasing decisions, promoting responsible
waste management practices across all operations.
In terms of stakeholder involvement and availability of the policy,
these processes are standardized and explained under 'Corporate
governance'. Responsibility for implementing and following-up
these policies is delegated to the President and CEO of Color Line.
Key actions
E5-2 Actions and resources related to resource use and circular economy
Color Group has in 2024 also developed improved waste manage-
ment procedures on all ships and land-locations. These focus on
enhancing sorting practices, reducing waste and ensuring the
proper treatment of waste materials through suitable routines,
equipment, training and communication for crew, land personnel
and passengers. The procedures aim to clarify responsibilities
related to waste management, contributing to Color Group's
sustainability strategy and ensuring compliance with Norwegian
law's Regulation on the Recycling and Treatment of Waste (Waste
Regulations) Chapter 10a. The procedures are tailored for different
departments on board and are organized by waste type, detailing
the specific actions required for handling each relevant waste type,
such as: plastics, food waste, ship maintenance waste, textiles,
electronic waste, residual waste etc.
Early in 2025, Color Group will upgrade all ships and terminals with
new waste-sorting facilities to meet the upcoming waste directive
from the Norwegian government, alongside the corresponding
Waste Framework Directive of the EU. This initiative will involve an
estimated NOK 12 million in capital expenditure and NOK 7 million
in operating expenditure to implement source separation across all
ships, ensuring effective waste management practices. To support
implementation of new procedures and equipment, Color Group
provides information and training for employees and passengers.
This training ensures that all individuals on board are aware of the
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waste management policies and understand their roles and respon-
sibilities in adhering to these procedures. From 2025 onward, Color
Group will be able to sort waste generated in its operations to a
larger degree, aligning with its targets and reducing Scope 3 emis-
sions in the waste category.
Color Group has in 2024 also continued the work on reducing food
waste focusing on optimization of food waste sorting through the
Winnow measuring system. Food waste generated onboard all
ships are weighed and categorized. The data collected through
Winnow are critical for implementing targeted measures such as
plate size, serving methods and food waste communication in all
restaurants and crew galleys going forward.
Performance, metrics and targets
E5-3 Targets related to resource use and circular economy
E5-5 Resource outflows
Color Group’s material impacts, risks, and opportunities related to
waste are evaluated based on the metrics presented in this section.
By 2030, Color Group's target is that waste generated in own busi-
ness shall be sorted according to best practices in the respective
countries, and that food waste shall be reduced by 40% compared
to 2022.
Additionally, Color Group aims for 100% source separation of
waste. As this will also require a maturation journey among passen-
gers, the company will focus on providing effective information and
training both for employees and passengers to ensure successful
implementation of these initiatives.
Color Group's waste management targets are designed to align
with national legislation in Norway and the EU Waste Directive,
highlighting the importance of effective waste handling in achieving
net-zero emissions. Furthermore, these targets support the goals
for the waste category outlined in Scope 3 of the transition plan.
The involvement of waste providers and employees has been
crucial in setting these targets, with exploration into potential
opportunities for improvement. Targets have been established in
consultation with specialists from Norsk Gjenvinning's (Norwegian
Recycling) consulting unit, based on analyses of the sorting rates
of waste (2023 data) and knowledge of best practices and oppor-
tunities for a company like Color Group. While these targets are
ambitious and reflect Color Group's commitment to sustainability,
it is important to note that they are voluntary and not based on
conclusive scientific evidence. To ensure progress towards these
targets, Color Group will implement quarterly reporting and KPI
tracking to monitor waste generation and management.
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Activity data related to waste types and quantities has been collected from waste operators in each regional area of operation. There is a
difference in the level of detail related to waste types and handling methods in the different countries. For the waste handled in Norway,
detailed data on the handling method per waste fraction is available. However, for the waste handled in Denmark, Germany and Sweden, the
same level of detail is not available.
Overview of waste generated in our operations Unit 2024 2023 %N/N-1
Total amount of waste Ton 5 553 5 417 +3%
Amount of food waste Ton 338 595 -43%
Total amount of non-recycled waste Ton 4 080 4 229 -4%
Total percentage of non-recycled waste % 73% 78% -78%
Total amount of hazardous waste
1
and radioactive
2
waste generated by the undertaking Ton 385 1 738
Amount by weight diverted from disposal
Preparation for
reuse Recycling
Other recovery
operations Total
Hazardous waste (ton) 0 97 0 97
Non-hazardous waste (ton) 0 1 247 91 1 338
Amount by weight directed to disposal by waste treatment type Incineration Landfill
Other disposal
operations
Hazardous waste (ton) 286 1 0 287
Non-hazardous waste (ton) 2 142 6 1 645 3 793
1
Waste which displays one or more of the hazardous properties listed in Annex III of Directive
2008/98/EC of the European Parliament and of the Council on waste.
2
Radioactive waste is defined in Article 3(7) of Council Directive 2011/70/Euratom
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SOCIAL
INFORMATION
S1 Own workforce
81
S2 Workers in the value chain
93
S4 Consumers and end-users
97
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S1 Own workforce
Ensuring diversity, equality and inclusion
(DEI) among employees, working
systematically in a long-term manner on
skills and career development, as well as
fostering and maintaining job satisfaction
and engagement, are key success factors
for Color Group. This work is built on the
foundation of the company’s core values:
‘We care, we build trust, and we forge
ahead.’ The company works actively to
ensure a safe and inclusive workplace
where all employees can thrive.
Material impacts, risks and opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
Type Material impact/risk/opportunity
Location in
value chain Time frame
Working conditions
Actual positive impact Secure employment and regulated workers’ rights. Own operations All
Potential negative impact Health and safety when working in higher-risk environments. Own operations All
Equal treatment and opportunities for all
Actual positive impact Career advancement through training and development. Own operations All
Potential negative impact Risk of discrimination and harassment. Own operations All
Other work-related rights
Potential negative impact Reduced privacy for seafaring employees. Own operations All
In identifying and assessing material impacts, risks and opportuni-
ties, the scope includes all employees in Color Group who could be
materially impacted by the company’s own operations and activi-
ties in the value chain. Negative impact occurrences are typically
individual incidents, rather than systemic or widespread. The mate-
rial positive impacts could affect all employees and are a result of
Color Group’s sustained efforts to be a responsible employer and
an important training organization for people pursuing a career
within the maritime sector.
In terms of risk management related to ensuring the health and
safety of Color Group’s employees, the company’s workforce is
typically divided into two main categories, land-based and seafaring
employees. Seafaring employees may in general be more exposed
to safety risks than land-based employees.
For more information on the process and the material impacts,
risks, and opportunities identified for S1, see ESRS 2 Material
impacts, risks and opportunities.
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The disclosures related to material impacts, risks and opportunities
are divided into four overarching topics: Safety first, Training and
development, Diversity, equality and inclusion, and Working condi-
tions and employee wellbeing.
Engaging with employees about impacts
S1-2 Processes for engaging with own workforce and workers’ representatives
about impacts
S1-3 Processes to remediate negative impacts and channels for own workforce to
raise concerns
Color Group has regular and ongoing engagement with employees
to achieve a wide range of objectives. Engagement and dialogue
are conducted in various ways, covering diverse topics in different
forums corresponding to the relevant objective. The Executive
Management in Color Line has the delegated overall responsibility
for dialogue with the company’s workforce, with this responsibility
managed in day-to-day operations by the EVP HR, the HR depart-
ment and line managers in Color Line.
Dialogue with individual employees is primarily conducted by
their immediate manager. Guidelines for managers' follow-up and
dialogue with employees are outlined in Color Group's leadership
handbook. Additionally, the HR department in Color Line conducts
regular surveys, the results of which form the basis for follow-up
and improvement in consultation with line managers.
Workers' representatives represent both unionized and non-union-
ized employees. During these meetings, representatives provide
relevant information and discuss matters of importance in connec
-
tion with employees' working conditions. Topics related to Color
Group’s transition to more sustainable operations are also discussed
in these meetings. Furthermore, the company has developed a plat
-
form to communicate with all employees on this transition.
Color Group is continually working to actively promote equality and
prevent discrimination. This ongoing work is conducted in dialogue
and collaboration with employee representatives, providing a
platform to gain insight into the perspectives of workers who may
be particularly vulnerable. Color Group also holds information and
discussion meetings that are used to prevent discrimination and
harassment, and to highlight the importance of diversity within the
organization.
Subsidiary Color Line is an engaged member of the Norwegian
Shipowners' Association (NSA), with representatives on both the
NSA board and the negotiation committee for salary and collec-
tive bargaining agreements (CBAs). This committee serves as a
common platform where employee and employer representatives
can come together to discuss and negotiate their respective rights
and obligations.
The parent company of Color Group has established frameworks
to facilitate cooperation, information sharing, and discussions
between the entities in the corporation and their employees. The
corporate cooperation body address topics that could significantly
impact employment across entities, such as plans for expansion,
rationalization or reorganizations
Color Group has established whistle-blowing procedures for
internal and external stakeholders to report illegal activities,
breaches of Color Group’s supplier code of conduct, human rights
violations, indecent working conditions and other unacceptable
situations. Further information about Color Group’s processes
and channels for stakeholders to raise concerns is described in
G1 Whistle-blowing. Employees also have several other channels
available to raise and address concerns regarding their employ-
ment. Additionally, Color Group has implemented a separate
grievance mechanism for seafarers, which provides broader rights
to raise complaints about maritime services and working conditions
in general.
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SAFETY FIRST
Policies and approach
S1-1 Policies related to own workforce
Color Group places a strong emphasis on safety and has zero
tolerance for behavior and incidents that contravene the health
and safety strategy and procedures. Color Group's core business
of ship operation is governed by strict international and national
regulations that prioritize health and safety. Color Group complies
with all relevant health and safety regulations and requirements,
both at sea and on land.
Color Marine AS (CLM) within subsidiary Color Line is Color Group's
maritime operations company (ISM code company), responsible for
ensuring that ship operations are conducted in accordance with
applicable laws, regulations and the company's safety policy across
the entire fleet, under the overall responsibility of CLM's CEO. This
also includes preventing, recording and investigating situations that
could cause injury or death. Onboard ship, the captain holds overall
responsibility to establish and maintain safe operation of the
particular vessel. In addition, water and food safety is the responsi-
bility of defined resource personnel who follow up issues, planning
and legislative changes on an ongoing basis.
Risks associated with maritime operations are formally evaluated
and categorized using a risk matrix. In addition, 'safe job' analyses
are conducted for non-routine tasks. Employees must not carry out
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work that is unsafe, and health and safety representatives are obli-
gated to halt any work that is considered to pose an immediate risk
to an employee’s life or health. Identified incidents related to mari-
time operations are recorded in the company's health and safety
management system (TQM) and followed up immediately. This
system also acts as an incident prevention management system,
and is certified in accordance with the ISM code. After corrective
actions are implemented, the results are communicated to the
relevant departments as part of the ongoing improvement process.
Color Group has several health and safety representatives who are
in ongoing dialogue with the company regarding employees' health,
safety and environment. The health and safety representatives are
part of the company's working environment committee ('AMU')
that is tasked with ensuring a totally safe and secure working
environment within the company.
Engagement between the crew onboard and the company's
management regarding health, safety and environment is further
safeguarded by designated persons who relay information and
have direct contact with the management.
Key actions
S1-4 Taking action on material impacts on own workforce, and approaches
to managing risks and pursuing opportunities related to own workforce, and
effectiveness of those actions
Color Group has dedicated procedures and systems for emergency
preparedness, with specialized emergency and operations teams
that conduct regular training and drills, both at sea and on land. All
safety equipment is monitored, tested and updated in accordance
with regulations and Color Group’s safety policy. Basic emer-
gency medical assistance is also available onboard ships for both
employees and passengers.
All seafaring employees receive health and safety training upon
commencing employment and are required to retake the courses
regularly. Color Group has defined qualification frameworks
outlining mandatory courses for all employees, including safety
onboard and first aid.
Six safety and environment meetings (AMU meetings) are held
on every ship each year. Additionally, quarterly health and safety
inspections are conducted on all ships, with participation from
the safety officer, health and safety representative, and ship
management. Annual health and safety inspections are also
carried out in all offices with the occupational health service
(Bedriftshelsetjenesten), forming the basis for annual action plans.
The Working Environment Committee for land-based employees,
consisting of managers and employee representatives from all
locations in Norway, holds a minimum of four meetings each year.
The results of safety inspections and upcoming action plans are
reviewed during these meetings. Color Group is represented in
national and international forums working to promote safety and
environment in a maritime context. The company is promoting
common implementation and enforcement of new requirements
and regulations across European shipping markets and sailing
routes.
Emergency planning and training are high on the list of priorities
of public authorities in these uncertain times. Color Group plays
its part by making the company’s ships available to the armed
forces, police, Joint Rescue Coordination Centre, local authorities
and other agencies as arenas for exercises to practice handling
critical situations, accidents or terrorism scenarios. These exercises
provide necessary training that enables participants to handle
critical situations through an effective and coordinated response.
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Performance, metrics and targets
S1-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
S1-14 Health and safety metrics
Color Group’s health and safety targets include zero fatalities and
fewer than 100 injuries per year, covering all employees onboard
ships. They support the company’s ‘Zero vision’ in terms of work-
place-related injuries and the fundamental value that Color Group
shall be a safe workplace for all employees. These targets, appli-
cable on an annual basis, have been developed by the Executive
Management in Color Line and the safety department in alignment
with the IMO’s safety goals for the maritime sector. The targets
are followed up closely through the health and safety management
system.
Color Group has entity-specific metrics to measure the number
of conducted port state controls (PSC) and any identified devia-
tions resulting from these. A port state control is an inspection
conducted by authorities to ensure foreign ships entering a
country’s ports are in compliance with international standards for
safety, pollution prevention and crew welfare. Color Group’s target
is to have less than 1 deviation per inspection, which is lower than
the industry average of approximately 3.0 deviations per inspec-
tion for RoPax ships in Europe.
2024 2023
Employees Percentage of employees covered by the health and safety management system 100% 100%
Number of fatalities 0 0
Number of recordable work-related accidents 113 111
Total recordable injury rate (TRIR) 25.28 26.16
Non-employees Percentage of non-employees covered by the health and safety management system 100% 100%
Number of fatalities 0 0
Number of recordable work-related accidents 11 8
Total recordable injury rate (TRIR) 12.76 4.67
Entity-specific 2024 2023 2022
Port state controls 9 9 12
Identified deviations 10 22 5
Average number of deviations per inspection 1.11 2.44 0.42
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TRAINING AND DEVELOPMENT
Policies and approach
S1-1 Policies related to own workforce
To ensure that Color Group attracts and retains the right talent,
the company’s aspiration is to create an engaging environment for
all colleagues and to be a company where employees can develop
and thrive.
Color Group aims to support employee training and development
by offering opportunities for career advancement within a safe
working environment. The code of ethics and objectives are
outlined in the company’s values, leadership principles, vision and
policies. Developing and clarifying the leadership role is important
to support the company’s vision and values, and defined processes
are in place to ensure leadership continuity through solid training
and development for the relevant positions.
Recruitment and training are key elements in the company’s
efforts to secure the availability of seafarers and landpersonell at
all levels with the necessary competence. The company focuses on
recruiting seafarers with education from both vocational schools
and universities. There are specific competence matrices and
training programs for both seafarers and land-based employees.
Key actions
S1-4 Taking action on material impacts on own workforce, and approaches
to managing risks and pursuing opportunities related to own workforce, and
effectiveness of those actions
Color Group works systematically with training and competence
development to ensure compliance with statutory requirements,
as well as to meet the company's own needs related to skills
enhancement and leadership training. Course requirements are
managed according to competency matrices for both seafaring
and land-based employees. Completed courses are recorded in the
company's HR system to ensure tracking of certificates and course
completion for each employee. The course portfolio includes a
range of both physical and digital courses, which are conducted at
fixed intervals.
Courses can be divided into two main categories, with the largest
volume of courses focusing on safety and emergency prepared-
ness. The second category consists of courses related to specific
professional skills for both seafaring and land-based employees.
Additionally, the company offers on a voluntary basis a course for
land-based employees to ensure proper preparation for retirement.
Color Group has routines and systems in place for employee eval-
uations, which are an essential part of the company's training and
development efforts. Annual performance reviews are conducted
for all permanent employees. These meetings are an important
element in building strong work relationships and form the basis
for evaluations and career planning. There are dedicated evalua-
tion routines for permanent employees, as well as a similar routine
for temporary employees.
Since 1996, Color Group has taken on just under 1 150 apprentices.
These are mainly employees in the deck and engine departments,
but in recent years, apprentices have also been recruited within
the kitchen, waiter and receptionist professions. In 2022, Color
Group began recruiting cadets on a year-round basis to establish
a solid foundation for internal recruitment to permanent positions
within the maritime professions, and the company has a dedicated
program for cadets during the summer months.
Color Group is the largest contributor to the Norwegian Maritime
Competence Foundation. Through the subsidy scheme for interna-
tional ferries in the Norwegian Ordinary Ship Register (NOR), Color
Group is committed to making monthly contributions to the foun-
dation. Over the past 10 years, the company has contributed just
over NOK 93 million. The foundation was established to provide
apprentices and cadets with opportunities in the maritime industry.
The funds are also used for training and development, recruitment
initiatives, and projects related to health and safety in the maritime
sector.
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Performance, metrics and targets
S1-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
To ensure that policies and guidelines are enforced consistently
for all employees and that leaders have equal opportunities for
development, Color Group has set an objective for all leaders – both
land and sea-based – to complete the same leadership course and
receive the same training. This is a core tenet of the knowledge
and development section of the company’s business strategy, and
encompasses all leaders in Color Group. The target has been set by
the Executive Management in Color Line in cooperation with the HR
business function in the subsidiary. In 2024, 60 leaders completed
the course, which results in a total completion rate of 21%.
Color Group continually strives to ensure a high-quality education
and practical tenure for the new generation of seafarers and land-
based employees. For land-based apprentices, the target is to offer
6 places every year, for seafaring apprentices, 76 places per year
and, for cadets, 10 places per year. These targets, which have been
jointly formulated by HR, the commercial function and the technical
maritime function in Color Line, support the company’s values and
vision, and the policy of securing education within the maritime
sector. The target for seafaring apprentices is closely connected
with the company’s need for skilled seafarers and has been deter-
mined according to Color Group’s recruitment needs and training
capacity. In recent years, Color Group has expanded the number of
places offered, resulting in currently full capacity at sea in terms
of available cabins. The goal going forward is therefore to maintain
the volume of places the company can offer to apprentices and
cadets to ensure availability of high-quality trained employees in
the future. For 2024, Color Group had 4 land-based apprentices,
71 seafaring apprentices and 7 cadets.
DIVERSITY, EQUALITY AND INCLUSION
Policies and approach
S1-1 Policies related to own workforce
Color Group aims to be an inclusive workplace where everyone has
equal opportunities to reach their potential, regardless of gender,
age, personality, ethnicity, political affiliation, religion, sexual
orientation or physical challenges. These values apply to all aspects
of work, including recruitment, distribution of responsibilities/
tasks, training and development, salary and working conditions,
and staff reduction. Guidelines related to inclusion and diversity are
described and made available in the code of conduct, employee
and leadership handbooks.
Color Group views diversity as a strength and has a zero tolerance
policy for discrimination and harassment. All whistleblower cases
are taken very seriously and are followed up in accordance with
established whistle-blowing procedures.
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Key actions
S1-4 Taking action on material impacts on own workforce, and approaches
to managing risks and pursuing opportunities related to own workforce, and
effectiveness of those actions
Color Group's most important measure is to strengthen and
preserve the unique corporate culture and the existing diversity
within the company.
Color Group is dedicated to promoting gender equality, especially
in technical and maritime roles, which have historically had a
low representation of women. The company places significant
emphasis on fulfilling the objectives of the Equality and Anti-
Discrimination Act, both for existing employees and when
recruiting for departments that have traditionally been dominated
by either men or women. For information on processes for
engaging with employees on these topics, see S1-2. The company
is working on achieving equal salaries for all, regardless of gender.
For seafaring employees, this is ensured through the fact that all
positions are governed by collective bargaining agreements. This
is also the case for a large portion of positions on land. In addition,
salary surveys are conducted every two years to uncover any
potential gender pay gaps in all operating countries.
In Color Group, there is a strong focus on precautionary efforts to
prevent harassment and discrimination. To fulfill the company's obli
-
gations related to equality and anti-discrimination, targeted measures
have been implemented, and system tools have been acquired to
monitor this work within the organization. For more details on identi
-
fied risks and measures, see Color Group’s due diligence reports.
Color Group has also established a partnership with local branches
of the Norwegian Labour and Welfare Administration (NAV) in
relevant regions to provide annual work trials for individuals who
have become excluded from the workforce. These work trials take
place in selected departments within the land-based organization.
Color Group aims to expand this initiative in the coming years to
help more people re-enter the workforce.
Performance, metrics and targets
S1-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
S1-6 Characteristics of the undertaking’s employees
S1-9 Diversity metrics
S1-16 Remuneration metrics (pay gap and total remuneration)
Color Group has several targets in place to make progress towards
a diverse, equal and inclusive company culture.
One of the company’s targets is to be a workplace with complete
gender equality between women and men. There should be no pay
gap between employees in the same role. To contribute to gender
equality in the maritime sector, Color Group has targets to have
at least 35% women in leading roles onboard all ships by 2030,
and 40% female apprentices within technical and maritime roles
by 2026. These targets are a part of Color Group’s sustainability
strategy and support national and international ambitions of
gender equality, such as the UN Sustainable Development Goals.
The targets have been set by HR and the executive management
in Color Line in cooperation. The target of 35% female employees
in leading roles on ships is followed up by the project for gender
equality in the sustainability program, and is reported on every
month. The target on increasing the percentage of female appren-
tices is followed up together with the Norwegian Shipowners'
Association, the Norwegian Maritime Competence Foundation, and
various schools and unions. For 2024 progress, see 'Key metrics'.
Color Group also takes harassment and discrimination seriously
and has a target to have zero harassment incidents, and zero
harassment/discrimination incidents reported to The Equality and
Anti-Discrimination Ombudsman (LDO) per year. This target covers
all employees in Color Group and is set by HR and the compliance
department in Color Line as a response to the company’s Zero
vision for bullying and harassment. The target is monitored in the
mapping of all ongoing whistle-blowing cases, where cases are
marked in the event they have been escalated externally to LDO. In
2024, zero cases were reported to LDO.
In addition, Color Group works towards offering job training
opportunities at all land-based locations and ships where this
is practically feasible for at least 10 individuals per year. The
target is set based on the company’s sustainability strategy, and
followed up through the project focusing on equality and diversity
in the sustainability program. The target is set by HR in Color
Line, in cooperation with the Norwegian Labour and Welfare
Administration, that is focusing on this issue through political goals.
In 2024, Color Group had 3 individuals in seafaring positions and
3 individuals in land-based positions. More information about the
program is disclosed under 'Key actions'.
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Contract type by country and gender (headcount)
Number of
employees
Permanent
employees
Temporary
employees
Employees with
non-guaranteed
hours
In total 3097 2093 1004 6
Country
Norway 2 734 1 820 914 0
Denmark 274 204 70 0
Sweden 39 21 18 6
Germany 50 48 2 0
Gender
Female 1350 836 514 4
Male 1747 1257 490 2
Other
1
0 0 0 0
1
HR system does not have 'other' as a gender option, due to national and international maritime safety legislation rooted in safety, search and rescue concerns requiring registration of all passengers and
employees as male or female.
Turnover 2024 2023
Employee turnover (headcount) 220 288
Employee turnover rate (%) 10.5% 10.7%
Employees by age group 2024
Under 30 years old 1 151
Between 30-50 years old 1 089
Over 50 years old 857
Gender diversity 2024 2023
Women on the Board 1 (33%) 1 (20%)
Women in senior management 4 (25%) 4 (25%)
Women in management at sea 22% 28%
Women in management on land 50% 49%
Female apprentices in technical/maritime positions 14% 18%
Gender pay gap (% of average male pay level ) 2024 2023
Norway 81% 83%
Sweden, Denmark, Germany 90% No data
CEO pay ratio
2
2024 2023
Norway 14.0 13.38
Sweden, Denmark, Germany 16.28 No data
2
The ratio is affected by variations in bonus payments from year to year.
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WORKING CONDITIONS AND EMPLOYEE WELL-BEING
Policies and approach
S1-1 Policies related to own workforce
Color Group operates in line with the principles of the UN Global
Compact and the OECD Guidelines for Multinational Enterprises,
the world’s largest initiatives for corporate social responsibility.
Furthermore, Color Group operates in accordance with relevant
industry-specific regulations, such as the International Ship & Port
Facility Security (ISPS) Code, the International Safety Management
(ISM) Code, and the International Labour Organization’s Maritime
Labour Convention (MLC). Color Group respects and actively
works to uphold fundamental human rights and decent working
conditions within its own operations. At Color Group, this work
is embedded in the organization’s highest governing bodies and
guidance documents. Color Group takes a systematic, continuous
and risk-based approach to ensuring human rights and decent
working conditions for its own employees, making it a natural part
of the company's daily activities.
Color Group has clear guidelines and directives on working condi-
tions and work-related rights that apply to all employees across
borders, based on international maritime regulations, local regula-
tions and the company's own values and code of conduct. Some of
the specific maritime regulations are described in separate docu-
ments that are available in Color Group’s quality management and
safety systems. The remaining regulations are primarily outlined
in employee handbooks for seafaring and land-based employees,
as well as the leadership handbook. Color Group ensures the
handbooks are available digitally via mobile phones to make the
information and guidelines easily accessible to all employees.
The responsibility to protect employees' privacy and right to confi-
dentiality is taken very seriously by Color Group. The President and
CEO of Color Line has delegated responsibility for data privacy,
supported by the compliance function in Color Line, including
the Data Protection Officer. An overview is maintained of the
company's processing of personal data, and a range of governance
documents have been established to safeguard employee privacy.
These documents include, among other things, a privacy calendar
with control activities, incident management, risk assessment, data
sharing, deletion, camera surveillance, etc. Color Group also has
dedicated contract templates to ensure adequate data protection
with subcontractors (data processors) and independent data
controllers when necessary.
Key actions
S1-4 Taking action on material impacts on own workforce, and approaches
to managing risks and pursuing opportunities related to own workforce, and
effectiveness of those actions
To ensure employees have a positive and supportive working envi-
ronment, HR in Color Line holds quarterly meetings with employee
representatives for both seafaring and land-based staff. In these
meetings, representatives from both sides can present and discuss
issues related to working conditions and the working environment.
Color Group considers strong collaboration and open dialogue with
employees to be vital for fostering long-term wellbeing. For more
information on how Color Group engages with employees about
working conditions and work-related rights, see S1-2.
Employee health and welfare are top priorities. Color Group has an
external partner for occupational health services, and land-based
employees in Norway, Denmark and Sweden are offered medical
check-ups. As part of efforts to prevent strain injuries and reduce
sick leave, Color Group provides monetary support for treatments
by chiropractors, physiotherapists, and naprapaths in Norway.
Additionally, through the occupational health service, employees
have rapid access to consultations with specialists (MRIs, X-rays,
etc.). Color Group also covers annual optional flu vaccines, and
all ships are equipped with fitness facilities to encourage physical
activity and exercise for all seafaring employees.
In recent years, Color Group has worked systematically on data
privacy and compliance with the company's obligations under the
Personal Data Act and GDPR. Privacy is an integrated part of Color
Group’s internal control and risk management systems. All systems
have been assessed for privacy risks, and measures have been put
in place to secure employees’ personal information. Employees
are Color Group’s most important resource in this area, and all
employees are required to complete a data privacy training course
during onboarding, with mandatory annual refreshers.
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Performance, metrics and targets
S1-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
S1-8 Collective bargaining coverage and social dialogue
S1-10 Adequate wages
S1-11 Social protection
S1-17 Incidents, complaints and severe human rights impacts
The results from the HR survey in Color Line ('medarbei-
derundersøkelse'), to which company employees responded,
represent important data points for implementation of targeted
measures. Color Group’s targets are a minimum 4.2 leader score
and a minimum 4.3 employee score, which support the company’s
policy of securing a safe and positive working environment for all
employees. The target levels have been set by HR in Color Line
in cooperation with the executive management in Color Line and
have been informed by, among other things, the survey supplier’s
recommendations for target levels. For 2024, these scores were
4.1 and 4.2. The results from the survey are communicated to all
department leaders in Color Line with more than five employees, to
ensure anonymity, and are used to implement measures to main-
tain the aspects that received positive feedback and improve the
aspects that received negative feedback.
Color Group also has targets in place to minimize sick leave. For
land-based employees the target is for sick leave to be lower than
4% and for seafaring employees to be lower than 8%. These targets
are set by the HR function in Color Line and are based on national
averages for comparable organisations, supporting the company’s
vision of a safe and positive working environment. The targets are
followed up by HR in Color Line on a monthly basis by reporting on
status to department leaders and implementing measures if needed.
Color Group has been working closely with the Norwegian Labour
and Welfare Administration (NAV) during 2024 to reduce sick leave.
The involvement of worker representatives and health and safety
representatives has been an important factor in this effort. For more
information on how the metrics have been calculated, see the rele
-
vant accounting policy for S1 Own workforce.
Sick leave 2024 2023
Sick leave land-based employees 4.5% 4.8%
Sick leave seafaring employees 9.0% 8.7%
Another target is to have valid special agreements (‘særavtaler’)
for all relevant areas to ensure that special conditions applicable
to the maritime industry and all represented professions are
safeguarded. For 2024, Color Group had special agreements in
place for six areas, where three covered land-based employees
in Norway and three covered employees in Denmark. All other
employees are covered by associated main agreements applicable
to each area. The target number of special agreements is assessed
based on dialogue between Color Group and the relevant unions.
All employees in Color Group in all operating countries have
collective bargaining coverage and workplace representation
to ensure social dialogue. The wages for all seafaring
employees are determined based on collective bargaining
agreements. This also applies to a large proportion of
land-based positions. Color Group participates in central
wage negotiations for seafaring employees. For land-based
employees, Color Group conducts local wage negotiations with
employee representatives, based on central agreements.
2024 Collective bargaining coverage Social dialogue
Coverage rate
EEA countries > 10% Non-EEA countries > 10% EEA countries > 10%
80-100% NO, DE, DK, SE NO, DE, DK, SE
All of Color Group’s employees are located in European
countries and are paid an adequate wage in line with the ESRS
definition (DR S1-10 AR 73). All employees are thereby also
covered by social protection through national public programs
for major life events such as sickness, unemployment, parental
leave and retirement. In addition, seafaring employees and
Norwegian employees are entitled to parental leave wages
beyond the wage support provided by the authorities.
Incidents and complaints 2024 2023
Total number of incidents of discrimination, including harassment
1
18 17
The number of complaints filed through channels for people in the
undertaking’s own workforce 26 29
Total amount of fines, penalties and compensation for damages 0 0
1
Included in ‘The number of complaints filed through channels for people in the undertaking’s
own workforce'.
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Accounting policies
Disclosure requirement Accounting policy
Total number of employees Employee data is taken from Color Group’s HR system. The total number of employees are expressed on a headcount basis.
The data represents status at year end (31 December 2024).
Permanent employee Employee data is taken from Color Group’s HR system. The total number of permanent employees are expressed on a
headcount basis. The data represents status at year end (31 December 2024).
Temporary employee Employee data is taken from Color Group’s HR system. The total number of temporary employees are expressed on a
headcount basis. The data represents status at year-end (31 December 2024).
Employee turnover The number of employees who left during the year. This includes employees who left voluntarily, due to dismissal, and
retirement. All numbers are given on headcount basis.
Employee turnover rate The employee turnover rate was calculated using the following formula: Employees who left the company in the reporting
period/Number of employees at the end of the reporting period. All numbers are given on headcount basis.
Women in senior management Includes women in Color Group’s board of director as well as country leaders, and the general manager of Color Hotel Skagen.
Age distribution Calculations include all employees and data is given on a headcount basis.
Adequate wage Calculated by taking the difference between the lowest monthly salary paid in each country and the median and/or average
monthly salary in that country.
Social protection Social protection includes all the measures that provide access to health care and income support in cases of challenging life
events such as the loss of a job, being sick and in need of medical care, giving birth and raising a child, or retiring and in need
of a pension.
Gender pay gap Gender pay gap is calculated as difference of average pay levels between female and male employees, expressed as a
percentage of the average pay level of male employees. For Sweden, Denmark and Germany, 2024 is the first year with
complete data.
Disclosure requirement Accounting policy
Remuneration ratio
(CEO pay ratio)
The ratio is calculated using the following formula: Yearly base salary of the highest paid employee/Yearly base salary of the
median employee. For Sweden, Denmark and Germany, 2024 is the first year with complete data.
Number of fatalities A fatality is a work-related injury that results in death.
Number of recordable work-
related accidents
Total number of work-related incidents that resulted in injury recorded in the health and safety management system during
the year.
Total recordable injury rate
(TRIR)
Total Recordable Injury Rate (TRIR) measures the frequency of all work-related injuries and fatality incidents per million
hours.
Incidents of discrimination,
including harassment
The number of discrimination-related complaints filed through Color Group’s complaint mechanism. These are incidents
or complaints of ill-treatment on the grounds of gender, racial or ethnic origin, nationality, religion or belief, disability, age,
sexual orientation, or other relevant forms of discrimination involving internal and/or external stakeholders across operations
in the reporting period. This includes incidents of harassment as a specific form of discrimination.
Number of complaints This is the total number of complaints filed through Color Group’s complaints mechanism for employees.
Severe human rights incidents Severe human rights incidents include instances of lawsuits, formal complaints through Color Group’s whistle-blowing or
complaint mechanisms and serious allegations in public reports or the media where these are connected to own workforce.
This only includes incidents where the facts of the incidents are not disputed by Color Group, as well as any other severe
impacts of which Color Group is aware.
Total amount of fines, penalties
and compensation for damages
Includes the total amount of fines, penalties and compensation for damages as a result of one or more severe human rights
incidents (see definition above).
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S2 Workers in the
value chain
Color Group conducts its business in
accordance with the provisions of the UN
Global Compact, the Norwegian Transparency
Act and the OECD Guidelines for Multinational
Enterprises. Color Group respects and works
actively to safeguard human rights and decent
working conditions both in its own business and
in the business of its suppliers and business
associates.
Material impacts, risks and opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
Type Material impact/risk/opportunity
Location in
value chain Time frame
Working conditions
Potential negative impact Lack of secure employment and regulated workers’ rights for workers in the value chain Value chain All
Potential negative impact Health and safety for workers in the value chain working in higher risk environments Value chain All
Equal treatment and opportunities for all
Potential negative impact Lack of equality, diversity, and inclusion for workers in the value chain Value chain All
Potential negative impact Lack of training and career development for workers in the value chain Value chain All
Other work-related rights
Potential negative impact Potential presence of forced labour and child labour in the value chain in countries and industries
with high or medium risk for this
Value chain All
In the process of identifying impacts, risks and opportunities related to S2, the scope included all value chain workers associated with the
undertaking’s own operations and value chain, encompassing its products or services, as well as its business relationships.
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To understand how workers with specific characteristics, those
working in particular contexts or those undertaking certain activ-
ities may be at greater risk of harm, Color Group has conducted
risk analyses in accordance with the Norwegian Transparency Act.
Some categories of consumables, raw materials and ship-related
products and services, have negative consequences historically
associated with their industry and geographical location. Examples
of these categories include food and beverages such as coffee,
tea, cocoa and sugar; textiles used in clothes, uniforms, towels
and linens; tobacco products; certain IT products; certain furniture
components; and ship-related products and services, in particular
in connection with shipyards. Nevertheless, the majority of Color
Group’s direct suppliers, including shipyards, are run from histor-
ically lower risk areas such as the Nordics, Western Europe and
Central Europe. For the remaining categories, Color Group believes
any negative impact occurrences are individual in nature.
For more information on the process and the material impacts,
risks, and opportunities identified for S2, see ESRS 2 Material
impacts, risks and opportunities. Some additional information on
the rights of value chain workers is disclosed under Sustainable
procurement in G1. In line with the provisions of the Transparency
Act, Color Group conducts due diligence to identify potential and
actual negative consequences for fundamental human rights and
decent working conditions. More detailed information on this is
provided in a statement from the Board published on the compa-
ny's website in June 2024.
Engaging with workers in the value chain about impacts
S2-2 Processes for engaging with value chain workers about impacts
S2-3 Processes to remediate negative impacts and channels for value chain
workers to raise concerns
Within Color Group, processes to ensure the rights of value chain
workers are upheld are anchored in the highest decision-making
bodies and governance documents of the company. Internal guide
-
lines describe the approach taken and the way in which Color Group’s
employees must work to fulfill the obligations of the company.
The executive management in Color Line has overall responsibility
for the stakeholder dialogue with workers in the value chain. This
responsibility is delegated to EVP Commercial & Hotel Operations
on board, together with the department for strategic procurement
in Color Line. The HR and compliance department in Color Line
assist where relevant, for example in connection with external whis
-
tle-blowing if applicable. For value chain workers employed at Color
Group’s physical premises, relevant managers both at sea and on
land oversee the value chain workers in daily engagement.
Color Group has implemented measures for stakeholder dialogue
with employees in the value chain. Different objectives are to be
achieved through the dialogue, and it is therefore carried out in
different ways and in different forums. Color Group has a policy
dictating that, where appropriate, communication shall be initiated
with those who are affected or potentially affected by negative
impacts in the value chain as a result of its operations. Such
dialogue should be initiated, for example, directly with the relevant
employees, their representatives, trade unions and organizations.
The company has a clear responsibility, and ability, to ensure that
the working conditions and treatment of workers in the value chain
who are physically on Color Group’s premises are satisfactory. These
workers include security guards, entertainers, cleaners and medical
professionals onboard Color Group’s ships, as well as security guards,
cleaners and cafeteria personnel at terminals and offices. For these
workers, there are two main paths for dialogue – directly with the
Color 'manager' on site appointed for the work group and with the
relevant company through Color Line’s procurement function.
Color Group negotiates the right to audit its suppliers' compliance
with Color Group's supplier code of conduct and the right to conduct
supplier documentation reviews on key sustainability matters.
Supplier audits may include dialogue either directly with the value
chain employees or through their representatives where appropriate.
Supplier audits have not been conducted in 2024. Supplier documen
-
tation reviews have been conducted on 15 suppliers in 2024.
Color Group has established whistle-blowing procedures for
internal and external stakeholders to report illegal activities,
breaches of Color Group’s supplier code of conduct, human rights
violations, indecent working conditions and other unacceptable
situations. The whistle-blowing channel is open to workers in
the value chain. Requirements for dialogue and follow-up are
established if a value chain worker reports concern of censurable
conditions. Further information about Color Group’s processes and
channels for stakeholders to raise concerns is described in the G1
Whistle-blowing section of this report.
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Policies and approach
S2-1 Policies related to value chain workers
Workers in the value chain onboard Color Group’s ships are
covered by the same policies and procedures on health and safety
as the company’s own seafaring employees. These policies are
described in more detail under S1 Safety first and ‘Diversity and
inclusion'.
Color Group strives to be a secure employer for workers in the
value chain employed at the company’s ships, terminals and
offices. The company has long-running contracts with trusted
partners to ensure stability for the affected workers. In terms of
training and career development for workers in the value chain
on the company’s premises, Color Group encourages workers to
improve their skills through courses and on-the-job training.
Below are some relevant policies covering workers in Color Group’s
value chain:
• The company has a Supplier Code of Conduct (SCC) to counteract
negative consequences in the value chain. The company's SCC
stipulates requirements for the supplier to safeguard human and
labour rights, and is based on international standards such as the
UNGP, key ILO conventions and the OECD's guiding principles.
• Color Group respects and works actively to safeguard funda-
mental human rights and decent working conditions in its own
operations and the company's value chain, in accordance with
the Norwegian Transparency Act. Color Group has a corporate
policy to ensure compliance with the Transparency Act.
• Color Group has policies of zero discrimination and harassment
within the company and value chain.
• Color Group has developed routines for whistle-blowing that
encourage both internal and external stakeholders to report ille-
galities, deviations from Color Group's supplier code of conduct,
human rights violations, indecent working conditions and other
censurable conditions.
Key actions
S2-4 Taking action on material impacts on value chain workers, and approaches
to managing risks and pursuing opportunities related to value chain workers, and
effectiveness of those actions
For workers in the value chain with their workplace onboard Color
Group’s ships, the same health and safety actions and measures
apply as for the company’s employees, see descriptions under S1
Safety first. Workers in the value chain are subjected to the same
safety training and health checks as Color Group’s own seafaring
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employees. They are also protected by the same measures in place
to avoid harassment and discrimination of own employees at Color
Group’s premises.
Color Group has a systematic, continuous and risk-based approach
to securing fundamental human rights and decent working condi-
tions in the value chain. Regular workshops are held where risk
assessments are conducted by interdisciplinary teams based on
information about risks related to industry, geography, products
and operations. The risk assessments are documented and form
the basis for further follow-up. If the overall risk assessment shows
that further information from the value chain is necessary, the
company obtains such information directly from the suppliers.
Appropriate measures are then considered and implemented based
on the disclosed information. It is established that Color Group shall
monitor the implementation and results, communicate with rights
holders about handling negative impacts, and ensure or cooperate
on remediation and compensation where required. More informa-
tion on actions taken to ensure decent working conditions in the
value chain is provided under Sustainable procurement in G1.
Performance, metrics and targets
S2-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
For workers in the value chain on Color Group’s premises, targets
related to safety and work environment are the same as those
covering own employees. This includes:
• Zero fatalities and less than 100 injuries per year for all
employees and workers in the value chain at Color Group’s
premises
• Zero cases of harassment/discrimination of workers who physi-
cally work at the company’s premises.
These targets support Color Group’s 'Zero vision' for deaths
and injuries, and the vision that Color Group shall be a safe and
trustworthy employer and actor in the transport industry. The
targets, applicable on an annual basis, have been developed by the
executive management in Color Line and the safety department
in alignment with the IMO’s safety targets for the maritime sector.
The targets are followed up closely through Color Group’s health
and safety management system. There were no reported incidents
of harassment and/or discrimination of workers in the value chain
working at Color Group’s locations. For information regarding fatal-
ities and injuries for workers in the value chain working physically
at the company’s premises, see 'Metrics and targets S1'.
In addition, Color Group has some specific targets for workers in
the value chain that cover both people physically working at the
company’s premises and farther out in the value chain:
• Zero incidents of workers in the value chain being involved/
drawn into corruption activity (including influence trading), as
well as money laundering – where this occurs in direct connec-
tion with Color Group’s activity in the value chain.
• Zero incidents of human rights violations among workers in the
value chain.
These targets are set by the executive management and the
Compliance department in Color Line, and are clearly commu-
nicated to suppliers through the supplier code of conduct. They
support the company’s Zero vision for human rights incidents and
zero-tolerance policy for corruption. The targets cover the compa-
ny’s own operations and incidents directly connected to Color
Group’s activities in the company’s value chain. In 2024, there
were zero reported incidents of human rights violations and zero
reported incidents of workers in the value chain being involved in
corruption activities.
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S4 Consumers and
end-users
The safety and customer experience of
guests is a core part of Color Group’s
business model. Safety comes first.
Material impacts, risks and opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
Type Material impact/risk/opportunity
Location in
value chain Time frame
Personal safety of consumers and/or end-users
Potential negative impact Safety at sea for passengers Own operations All
The scope of consumers and end-users likely to be materially impacted by Color Group’s operations include all passengers on the company’s
routes and guests at Color Hotel Skagen. The identified material IRO is related to safety at sea for passengers, hence the scope of disclosures
under S4 is limited to passengers on Color Group’s ferry routes. Negative impacts in relation to passenger safety at sea are incident-based and
rare. For more information on the process and the material impacts, risks, and opportunities identified for S4, see ESRS 2 Material impacts,
risks and opportunities.
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Engaging with consumers and end-users about impacts
S4-2 Processes for engaging with consumers and end-users
S4-3 Processes to remediate negative impacts and channels for consumers and
end-users to raise concerns
Color Group has several processes in place for engaging with
consumers and end-users concerning safety. There is written
communication in place on all ships and terminals, as well as on
the company’s website. Communication with passengers on safety
in relation to ship departures and arrivals is described under Key
actions in this section. Processes for engaging with passengers
beyond safety concerns are described under ESRS 2 Stakeholder
engagement in the General Information section.
Color Group has established whistle-blowing procedures for
internal and external stakeholders to report illegal activities,
breaches of Color Group’s supplier code of conduct, human rights
violations, indecent working conditions and other unacceptable
situations. Further information about Color Group’s processes and
channels for stakeholders to raise concerns is described under G1
Whistle-blowing.
Policies and approach
S4-1 Policies related to consumers and end-users
Color Group operates in line with the principles of the UN Global
Compact and the OECD Guidelines for Multinational Enterprises,
the world’s largest initiatives for corporate social responsibility.
Furthermore, Color Group adheres to relevant industry-specific
regulations, such as the International Ship & Port Facility Security
(ISPS) Code, the International Safety Management (ISM) Code,
and the International Labour Organization’s Maritime Labour
Convention (MLC).
Color Group respects and actively works to uphold fundamental
human rights and decent working conditions within its own opera-
tions. This commitment is embedded in the organization’s highest
governing bodies and guidance documents. Color Group engages
with consumers to inform policy development, incorporating feed-
back to enhance its practices.
The company takes a systematic, continuous and risk-based
approach to ensuring human rights for its passengers are
upheld, making it a natural part of the company's daily activities.
Additionally, Color Group emphasizes corporate governance
through the systematic monitoring of policies and procedures,
addressing deviations and implementing improvement suggestions.
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Safety for passengers and crew is a core part of Color Group’s
business and is embedded in the company’s vision. Strict policies
and routines have been established to ensure that safety always
has the highest priority. Before every voyage, detailed risk assess-
ments, maneuvering and route planning are performed to minimize
uncertainty. The captain of each ship holds the highest authority to
determine when it is necessary to cancel a voyage to ensure
the safety of passengers, personnel and ship. Further informa-
tion on safety policies and internal control can be found under
S1 'Safety first'.
Key actions
S4-4 Taking action on material impacts on consumers and end-users, and
approaches to mitigating material risks and pursuing material opportunities related
to consumers and end-users, and effectiveness of those actions
In matters of passenger safety, all actions outlined under 'Safety
first' in S1 are essential and relevant also for the safety of passen-
gers. Well-trained personnel, regular safety drills and the use of
modern, high-quality safety equipment collectively ensure readi-
ness in the event of an emergency. To familiarize passengers with
safety routines, information is available in all public areas in several
languages, and there are safety announcements over speakers
and on TV screens around the ship before departure. On the
overnight routes there are also safety brochures available in every
cabin. In the event of health emergencies during a voyage, medical
services are available on all ships (except on the route Sandefjord–
Strømstad) during high season, as well as year-round on M/S Color
Magic and M/S Color Fantasy. Additionally, all ships have access to
medical assistance via radio Medico at all times.
Performance, metrics and targets
S4-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
Color Group’s targets in terms of passenger safety are zero fatalities
and zero personal injuries per year for all our guests. These targets
support the company’s 'Zero vision' for deaths and injuries, and
the vision that Color Group shall be a safe and trustworthy actor in
the transport industry, which takes safety seriously. The targets,
applicable on an annual basis, have been developed by the executive
management in Color Line and the safety department in alignment
with the IMO’s safety targets for the maritime sector. The targets
are followed up closely through Color Group’s health and safety
management system. In 2024 Color Group reported zero passenger
fatalities and 29 personal injuries involving passengers.
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GOVERNANCE
INFORMATION
G1 Business conduct
101
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G1 Business conduct
Color Group’s business model, consisting
of professional and commercial services
for various customer segments, is
dependent on trust and loyalty. Color
Group's approach to business conduct
is led from the top of the organization
and rooted in the company's policies.
Color Group is committed to conducting
its business activities with integrity and
ensuring compliance with relevant laws and
regulations.
In the process of identifying material impacts, risks and
opportunities, the applied criteria include where the impact,
risk or opportunity occurs (own operations or value chain),
Color Group’s operating countries, known risks in the ferry and
transport industry, and the nature of transactions. For more
information on the process and the material impacts, risks, and
opportunities identified for G1, see ESRS 2 Material impacts,
risks and opportunities.
Material impacts, risks and opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
Type Material impact/risk/opportunity
Location in
value chain Time frame
Protection of whistle-blowers
Potential negative impact Lack of protection of whistle-blowers for employees, contracted labor and value chain. All All
Equal treatment and opportunities for all
Actual positive impact Career advancement through training and development. Own operations All
Potential negative impact Risk of discrimination and harassment. Own operations All
Anti-corruption and bribery
Potential negative impact Higher risk of incidents of corruption in certain geographical areas. Value chain All
Actual positive impact Anti-corruption program for employees Own operations All
Risk Reputational damage and fines as a result of suspicions/investigations of anti-corruption
regulations being violated.
Own operations All
Temporary border control (entity-specific)
Potential negative impact Wrongfully executed border control activities can weaken Norway’s borders. Own operations All
Responsible provision of gambling (entity-specific)
Risk Non-compliance with regulations can result in revocation of permits to be a gambling provider. Own operations All
Responsible sale of alcohol and tobacco (entity-specific)
Risk Non-compliance with regulations can result in revocation of permits to sell alcohol and tobacco
through the duty-free scheme.
Own operations All
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RESPONSIBLE BUSINESS CONDUCT
G1-1 Business conduct policies and corporate culture
Policies and approach
Color Group depends on the trust of customers, suppliers,
employees, public authorities and financial institutions. It is the
company's managers and employees who manage this trust
on a day-to-day basis. Color Group is committed to upholding
high standards of integrity and ethics in all areas of its business
operations. This approach is anchored in the company's ethical
guidelines and supported with activities to continously improve
compliance awareness. Ethical business conduct is implemented
in the overall guidelines for employees. Day-to-day responsibility
for responsible business conduct is delegated to the President and
CEO of Color Line.
Key actions
According to the the company’s code of conduct, all employees
must act with care, honesty and objectivity, and loyally comply
with regulations from the authorities. Employees are instructed to
refrain from and discuss with their immediate superior if they are in
doubt as to whether an action should be carried out. Furthermore,
explicit guidelines have been established for the handling of
conflicts of interest and close relationships, anti- corruption and
bribery, gift-giving and representation, unfair competition, theft,
embezzlement, money laundering and other ethical business
conduct subjects. Ethical business conduct and awareness training
is obligatory for all company employees.
Performance, metrics and targets
There are no specific targets related to overall responsible busi-
ness conduct. Targets and metrics are specified for relevant topics
related to responsible business conduct
WHISTLE-BLOWING
G1-1 Business conduct policies and corporate culture
MDR-M Metrics in relation to material sustainability matters
Policies and approach
Color Group is dedicated to maintaining a robust whistle-blowing
system that ensures reports are thoroughly investigated in a timely
manner while safeguarding whistle-blowers from any form of retal-
iation. Color Group strictly prohibits retaliation against individuals
who report concerns, which includes a ban on any adverse actions,
practices, or omissions resulting from such reported concerns.
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The company has established whistle-blowing procedures and
encourages both internal and external stakeholders to report
illegal activities, breaches of Color Group’s supplier code of
conduct, human rights violations, indecent working conditions
and other possibly censurable conditions. Day-to day responsi-
bility for whistle-blowing obligations is delegated to the EVP HR,
supported by the EVP Sustainability and Compliance, of Color Line.
Whistle-blowing activity is monitored and regularly reported to the
executive management of Color Line and the Color Group Audit
Committee.
Key actions
The company actively communicates the whistle-blowing process
within the organization, both directly to suppliers and publicly
on its website, and trains managing personnel in how to handle
whistle-blowing cases. Protecting whistle-blowers is of utmost
importance.
Performance, metrics and targets
To ensure that all whistle-blowing cases are handled swiftly and
professionally, Color Group has a goal to close all cases within six
months of notification. This is in line with the implemented routines
for handling of whistle-blowing cases, which are communicated to
all employees, and detail that all cases shall be handled responsibly
and as quickly as possible. The HR and compliance department
of subsidiary Color Line follow up each case with a log detailing
progression and activities. For 2024, 80% of cases were closed
within 6 months.
ANTI-CORRUPTION AND BRIBERY
G1-3 Prevention and detection of corruption and bribery
G1-4 Incidents of corruption or bribery
Policies and approach
Color Group has a zero-tolerance policy for actions involving
corruption.
The company's policy is clearly communicated to employees in
the company's guidelines. The guidelines include descriptions of
actions that constitute corruption and influence peddling, proper
supplier relations, as well as guidelines pertaining to gifts and
representation. It is clearly communicated that violations will result
in consequences for the employment relationship and, where appli-
cable, police reporting.
An internal control culture and routines are key to prevention of
corruption breaches. Color Group takes a systematic risk-based
approach in its work and gives priority to the day-to-day need
to secure good management and appropriate internal control
procedures, such as authorization matrix and a four-eyes principle
for all payments. The compliance function of Color Line reports
compliance issues on an ongoing basis to the executive manage-
ment of Color Line. This function also presents an annual report
to the Audit Committee of Color Group, summarizing the work on
securing efficient internal control and on ensuring compliance with
internal and external laws, regulations, policies and procedures.
Anti-corruption requirements are also imposed on the company's
suppliers through Color Group's Supplier Code of Conduct.
Key actions
The company's anti-corruption policy is communicated to
employees through employee handbooks, with which employees
are required to familiarize themselves. The policy is also part of
the company's e-learning ethics course, which is mandatory for all
employees and must be completed every two years.
In 2024, special courses have been held for majority of manage-
ment of Color Group on laws and regulations related to responsible
business conduct, including anti-corruption. The anti-corruption
part of the training covers, among other things, actions that
constitute corruption, the duties of management and the company,
typical risk areas for corruption, and case studies. Versions of the
course are conducted by executive management of Color Line
with their respective management teams. Approximately 60% of
functions-at-some-risk have been covered by the training program,
while the remaining part will carry out training in 2025. For more
information regarding personnel training on the matter as part of
code of conduct training, see 'Responsible business conduct'.
Suppliers are required to accept audits to verify compliance,
and violations must be addressed and may provide grounds for
termination. Suppliers are further encouraged to report possible
violations, including those related to corruption, through Color
Group's whistle-blowing system. A description of this system is
provided under the Whistle-blowing section.
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Actions that may involve corruption fall under the company's
definition of censurable conditions to be reported through the
company's whistle-blowing system. The company encourages
employees to report censurable conditions and emphasizes corrup-
tion as a matter for reporting. In accordance with the company's
whistle-blowing procedures, the company must ensure adequate
investigations and case processing in accordance with specific
rules which stipulate, among other things, requirements for the
impartiality and competence of the investigating committee.
Performance, metrics and targets
There were no reported incidents related to corruption in 2024, and
no fines paid for violation of anti-corruption and anti-bribery laws.
SUSTAINABLE PROCUREMENT
G1-2 Management of relationships with suppliers
G1-6 Payment practices
Policies and approach
Color Group focuses on ensuring that its procurement processes
are conducted in accordance with principles governing human
rights, labor standards, environmental protection and anti-corrup-
tion. The company’s business is conducted in accordance with the
applicable industry-specific regulations, such as the International
Ship and Port Facilities Security Code (ISPS), the International
Safety Management Code (ISM) and the ILO’s Maritime Labour
Convention (MLC). Relevant suppliers to the company are also
required to comply with these regulations. Color Group has
delegated the day-to day follow-up of value chain suppliers to the
executive management team of Color Line, with EVP Commercial
and hotel operations onboard in lead.
Color Line has mandatory procurement policies and processes
applicable to all Group entities. The objective with purchasing
policy and processes is to give firm guidance to ensure that Color
Group:
• Acts with professionalism and high ethical standards.
• Approaches suppliers in a unified and professional manner.
• Ensures compliance with the company’s Supplier Code of
Conduct.
• Ensures compliance with relevant laws and regulations.
• Conducts business with viable and professional suppliers.
• Secures best possible contractual terms and conditions.
In the Group’s standard terms and conditions there is a minimum
payment period of 45 days for all incoming payments, but policy
allows the contract owner to accept 30 days for suppliers upon
request.
Key actions
The company has a systematic, continuous and risk-based
approach to safeguard fundamental human rights and decent
working conditions in the value chain, in compliance with the
Norwegian Transparency Act. Regular workshops are held where
risk mapping is carried out by interdisciplinary teams on the basis
of information about risks related to industry, geography, products
and businesses. The risk surveys are documented and form the
basis for further follow-up. If the overall risk mapping shows that
it is appropriate to provide additional information from the value
chain, the company obtains such information directly from the
suppliers in terms of interviews or document reviews. Appropriate
measures are then considered and implemented based on the
disclosed information. Color Group shall monitor the implementa-
tion and results, communicate with rights holders about handling
negative impacts, and ensure or cooperate on remediation and
compensation where required. A yearly published account of due
dilligence is available on the company’s website.
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The company’s SCC is established to counteract negative conse-
quences in the value chain. The SCC lays down requirements for
suppliers on safeguarding of human and labor rights, and is based
on international standards such as the UNGP, key ILO conventions
and the OECD's guiding principles. In addition, the SCC dictates
anti-corruption requirements for the company's suppliers. Through
the SCC, the Group is also given the right to audit suppliers, either
directly or through a third-party auditor, and has the opportunity
to terminate agreements if negative consequenses and breaches
are not properly addressed and rectified. Such audits will include
dialogue either directly with the employees or through their repre-
sentatives where appropriate. As a general rule, it is mandatory for
suppliers to accept the SCC.
Color Group is an active member of the purchasing organization
Incentra SA. The head of strategic procurement within subsidiary
Color Line is a member of Incentra's negotiating committee, and
some of the company's purchases are made through this organ-
ization. Incentra may conduct supplier audits when needed on
behalf of its members, which include direct dialogue with either
employees or their representatives where appropriate, as well as
location visits.
Performance, metrics and targets
Color Group has a 2025 target that 80% of its suppliers shall sign
the Supplier Code of Conduct (SCC), and by the end of 2024 this
metric was 66%. Color Group has a target to ensure payments
of incoming invoices by due dates. By year-end, the company has
low figures related to collection and late fees. Color Group has no
currently outstanding legal proceedings for late payments.
TEMPORARY BORDER CONTROL
Entity-specific Temporary border control
Policies and approach
The Norwegian government has imposed a temporary requirement
that border controls must be conducted on passenger ships in traffic
into and out of Norway. Although controls of intra-Schengen and
Nordic border crossings should not require the presentation of a
valid ID/passport in accordance with Schengen and Nordic Passport
Union regulation, this was implemented as a temporary measure by
the Ministry of Justice from November 2015 against a backdrop of
uncontrolled immigration and terror threats in Europe. The tempo
-
rary border control requirement has been extended every six months,
most recently for a further six months in November 2024. A similar
temporary border control, resulting in ID checks on all passengers,
was imposed for all arrivals to the Swedish port of Strömstad for the
period March 2022 to January 2025.
Color Group takes the responsibility of upholding strong borders
seriously and has developed internal procedures on how to conduct
border controls that are available to relevant employees. The
captain of the ship is ultimately responsible for ensuring that all
passengers have been through border control before arrival at a
Norwegian port, supported by the safety and preparedness func-
tion of Color Line.
Key actions
To uphold the temporary requirement of conducting border controls,
Color Group, aided by its own staff and hired-in security personnel,
conducts ID checks on all passengers boarding in the company’s
ports of call outside Norway. Color Group is in dialogue with relevant
police authorities to ensure controls are conducted correctly and to
stay updated on proposed extensions and adopted timelines.
Relevant personnel are trained on how to perform border controls
and how to handle any negative situations that might occur.
Performance, metrics and targets
Color Group has no targets or metrics related to temporary border
control and has no plans to adopt any.
RESPONSIBLE PROVISION OF GAMBLING
Entity-specific Responsible provision of gambling
Policies and approach
Color Group has held a license to organize gambling operations
onboard its ships sailing between Norway and foreign destinations
for more than ten years. The licensing scheme is part of the official
Norwegian policy on gambling and games of chance. Shipboard
gaming makes an important contribution to maintaining the
competitiveness of Norwegian-registered ships sailing between
Norwegian and international ports, which is also underlined by
authorities when issuing permits. Gambling on board the ships take
place only in designated casino areas and is operated in accordance
with the Norwegian act and regulations relating to gambling games.
These regulations strictly regulate maximum bet, payout, winnings
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and losses, and all types of gambling activities must be approved by
The Norwegian Gambling and Foundation Authority.
The gaming operations are also regulated by the Norwegian Anti-
Money Laundering Act, and Color Group has procedures in place
to ensure compliance with the requirements in the law, such as
"know-your-customer-procedures", risk assessment and internal
control measures to ensure safe and responsible gambling activ-
ities. In addition, Color Group has clear policies and procedures
on how to ensure that the provision of gambling is conducted in a
responsible manner by the company’s employees. The responsi-
bility for responsible provision of gambling is delegated to the EVP
Commercial and Hotel Operations onboard of Color Line.
Key actions
Color Group has effective control mechanisms and training
programs in place to counteract gambling addiction and irrespon-
sible gaming. The company has established a partnership with the
professional gaming company Paf, which plays an active part in the
responsible gaming training of personnel.
The company also takes part in the Forum for Responsible Gaming,
which is organized by the Norwegian Gaming and Foundation
Authority.
Each year, the company distributes a statutorily determined
percentage of earnings from onboard gambling to cultural, sporting
and other voluntary organizations in Norway. Approximately
NOK 220 million has been donated to charitable causes since the
introduction of the scheme in 2009. In making these contributions,
Color Group is helping to develop and create activities and meeting
places. The donations to more than 100 recipients play an important
role in promoting wellbeing and social development in local commu
-
nities, particularly for children and young adults. All donations are
approved by The Norwegian Gambling and Foundation Authority.
Performance, metrics and targets
Color Group has as a target that all gambling personnel shall
annually undergo responsible gaming and anti-money laundering
training. All permanent casino personnel have conducted such
training in 2024.
Color Group also has a target of zero cases of reported problem-
atic gaming behavior due to Color Group’ casinos. There were no
recorded cases of problematic gaming behavior in 2024.
RESPONSIBLE SALE OF ALCOHOL AND TOBACCO
Entity-specific Responsible sale of alcohol and tobacco
Policies and approach
Color Group sells alcohol and tobacco on all ships through the duty-
free scheme and is aware of its obligation to ensure that such sales
are carried out in a responsible manner. The company has developed
policies and procedures to ensure that all relevant regulations are met
when serving or selling alcohol and tobacco at company premises. The
responsibility of responsible sale is delegated to the EVP Commercial
and hotel operations onboard within subsidiary Color Line.
Key actions
Since alcoholic beverages are served onboard the company’s ships,
all restaurant and bar personnel annually undergo both digital and
physical training in regulations that need to be upheld when selling
alcohol, including the individual responsibilities held by relevant
staff. Hidden controls are carried out by authorities and the
company at regular intervals to ensure that sales are conducted in
accordance with regulations.
In shipboard shops, tobacco products are presented in separate
screened-off areas following regulated age limits. The company
applies ID control and quota restrictions on sales of alcoholic
beverages and tobacco in accordance with regulated age limits and
quota provisions. Hidden controls are carried out by the company
at regular intervals to ensure sales quota provisions in accordance
with Movement of goods act and Movement of goods regulations.
Color Group has put measures in place to ensure that sales are in
compliance with the provisions of the European Union’s Tobacco
Product Directive, which came into force in 2019. The objective of
this directive is to improve internal control procedures relating to
the production, shipment and sale of tobacco goods within the EU.
Under the directive, Color Group is required to register the actual
shipment route of all tobacco goods.
Performance, metrics and targets
Color Group has a target of zero severe deviations on inspections
of premises licensed to sell and serve alcohol. These inspections
take place regulary. No such deviations were reported in 2024.
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Accounting policies
Disclosure requirement Accounting policy
Number of convictions for
violation of anti-corruption and
anti-bribery laws.
The number of convictions for violation of anti-corruption and anti-bribery laws includes all convictions as a result of legal
proceedings against Color Group and/or any of its subsidiaries in the reporting year.
Number of outstanding legal
proceedings for late payments.
The number of legal proceedings outstanding for late payments includes all legal proceedings against
Color Group and/or any of its subsidiaries relating to late payments of business partners that are outstanding at year-end.
Amount of fines for violation of
anti-corruption and anti-bribery
laws.
The amount of fines paid for violation of anti-corruption and anti-bribery laws includes fines paid as a result of legal
proceedings on these matters against Color Group and/or any of its subsidiaries in the reporting year.
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ESRS
APPENDIX
Disclosures incorporated by reference
109
Content index of ESRS disclosures
110
ESRS datapoints from other EU legislation
112
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Disclosures incorporated by reference
Disclosure
requirement Data point Paragraph Section Page
GOV-1 R.22.a. the identity of the administrative, management and supervisory bodies (such
as a board committee or similar) or individual(s) within a body responsible for
oversight of impacts, risks and opportunities;
Corporate governance
17–18
GOV-1 R.22.b. how each body’s or individual’s responsibilities for impacts, risks and
opportunities are reflected in the undertaking’s terms of reference, board
mandates and other related policies;
This is Color Group,
Corporate governance
15
17–19
GOV-1 R.22.c. a description of management’s role in the governance processes, controls
and procedures used to monitor, manage and oversee impacts, risks and
opportunities
This is Color Group,
Corporate governance
15
17–19
Disclosure
requirement Data point Paragraph Section Page
GOV-5 R.36.d. a description of how the undertaking integrates the findings of its risk
assessment and internal controls as regards the sustainability reporting process
into relevant internal functions and processes; and
Corporate governance
19
GOV-5 R.36.e. a description of the periodic reporting of the findings referred to in point (d) to
the administrative, management and supervisory bodies
Corporate governance
19
SBM-1 R.42 The undertaking shall disclose a description of its business model and value
chain.
This is Color Group
12–14
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Content index of ESRS disclosures
ESRS 2 IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement
Disclosure
requirement Section Page
BP-1 General basis for preparation of Sustainability Statement Basis for preparation 21, 23
BP-2 Disclosures in relation to specific circumstances Basis for preparation
23
GOV-1 The role of the administrative, management, and supervisory bodies Sustainability governance
24–25
GOV-2 Information provided to sustainability matters addressed by the undertaking’s
administrative, management, and supervisory bodies
Sustainability governance
24–25
GOV-3 Integration of sustainability-related performance in incentive schemes Sustainability governance
24
GOV-4 Statement on due diligence Statement on due diligence
27
GOV-5 Risk management and internal controls over sustainability reporting
Management of sustainability reporting risk
26
SBM-1 Strategy, business model, and value chain Sustainability strategy
28–29
SBM-2 Interests and views of stakeholders Stakeholder engagement
29–30
SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and
business model
Material impacts, risks and
opportunities
33–38
IRO-1 Description of the processes to identify and assess material impacts, risks, and
opportunities
Double materiality assessment
31–32
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability
Statement
ESRS Appendix
109–116
E1-GOV-3 Integration of sustainability-related performance in incentive schemes Sustainability governance
24
E1-1 Transition plan for climate change mitigation Policies and approach
55–60
E1-SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
Material impacts, risks and
opportunities; Policies and approach
33, 50
E1-IRO-1 Description of the processes to identify and assess material climate-related
impacts, risks and opportunities
Double materiality assessment; Policies
and approach
31–32,
51–55
E1-2 Policies related to climate change mitigation and adaptation Policies and approach
60–61
E1-3 Actions and resources in relation to climate change policies Policies and approach
58–60
E1-4 Targets related to climate change mitigation and adaptation Performance, metrics and targets
61–64
E1-5 Energy consumption and mix Performance, metrics and targets
65
E1-6 Gross scopes 1, 2, 3 and Total GHG emissions Performance, metrics and targets
61–64
Disclosure
requirement Section Page
E1-9 Anticipated financial effects from material physical and transition risks and
potential climate-related opportunities
Color Group has made use of the
phase-in option for this DR
E2-IRO-1 Description of the processes to identify and assess material pollution-related
impacts, risks and opportunities
Double materiality assessment;
Material impacts, risks and
opportunities
31–32, 68
E2-1 Policies related to pollution Policies and approach 69
E2-2 Actions and resources related to pollution Key actions
69
E2-3 Targets related to pollution Performance, metrics and targets
70
E2-4 Pollution of air, water and soil Performance, metrics and targets
70
E2-6 Anticipated financial effects from pollution-related impacts, risks and opportunities Color Group has made use of the
phase-in option for this DR
E3-IRO-1 Description of the processes to identify and assess material water and marine
resources-related impacts, risks and opportunities
Double materiality assessment;
Material impacts, risks and
opportunities
31–32, 72
E3-1 Policies related to water and marine resources Policies and approach
73
E3-2 Actions and resources related to water and marine resources Key actions
73–74
E3-3 Targets related to water and marine resources Performance, metrics and targets
74
E3-4 Water consumption Performance, metrics and targets
74
E3-5 Anticipated financial effects from material water and marine resources-related
impacts, risks and opportunities
Color Group has made use of the
phase-in option for this DR
E5-IRO-1 Description of the processes to identify and assess material resource use and
circular economy-related impacts, risks and opportunities
Double materiality assessment;
Material impacts, risks and
opportunities
31–32, 76
E5-1 Policies related to resource use and circular economy Policies and approach
77
E5-2 Actions and resources related to resource use and circular economy Key actions
77–78
E5-3 Targets related to resource use and circular economy Performance, metrics and targets
78
E5-5 Resource outflows Performance, metrics and targets
78–79
E5-6 Anticipated financial effects from resource use and circular economy-related
impacts, risks and opportunities
Color Group has made use of the
phase-in option for this DR
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Disclosure
requirement Section Page
S1-SBM-2 Interests and views of stakeholders Stakeholder engagement 29–30
S1-SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
Material impacts, risks and
opportunities; Material impacts, risks
and opportunities
36, 81–82
S1-1 Policies related to own workforce Policies and approach
83–84,
86,
87, 90
S1-2 Processes for engaging with own workforce and workers’ representatives about
impacts
Material impacts, risks and
opportunities
82
S1-3 Processes to remediate negative impacts and channels for own workforce to raise
concerns
Material impacts, risks and
opportunities
82
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
Key actions
84, 86,
88, 90
S1-5 Targets related to managing material negative impacts, advancing positive
impacts and managing material risks and opportunities
Performance, metrics and targets
85, 87,
88, 91
S1-6 Characteristics of the undertaking’s employees Performance, metrics and targets
89
S1-7 Characteristics of non-employee workers in the undertaking’s own workforce Color Group has made use of the
phase-in option for this DR
S1-8 Collective bargaining coverage and social dialogue Performance, metrics and targets
91
S1-9 Diversity metrics Performance, metrics and targets
89
S1-10 Adequate wages Performance, metrics and targets
91
S1-11 Social protection Performance, metrics and targets
91
S1-13 Training and Skills Development metrics Color Group has made use of the
phase-in option for this DR
S1-14 Health and safety metrics Performance, metrics and targets
85
S1-16 Remuneration metrics (pay gap and total remuneration) Performance, metrics and targets
89
S1-17 Incidents, complaints and severe human rights impact Performance, metrics and targets
91
S2-SBM-2 Interests and views of stakeholders Stakeholder engagement
29–30
S2-SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
Material impacts, risks and
opportunities
37, 93–94
S2-1 Policies related to value chain workers Policies and approach
95
S2-2 Processes for engaging with value chain workers about impacts Material impacts, risks and
opportunities
94
S2-3 Processes to remediate negative impacts and channels for value chain workers to
raise concerns
Material impacts, risks and
opportunities
94
Disclosure
requirement Section Page
S2-4 Taking action on material impacts on value chain workers, and approaches to
managing material risks and pursuing material opportunities related to value chain
workers, and effectiveness of those action
Key actions
95–96
S2-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
Performance, metrics and targets
96
S4-SBM-2 Interests and views of stakeholders Stakeholder engagement
29–30
S4-SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
Material impacts, risks and
opportunities
37, 97
S4-1 Policies related to consumers and end-users Policies and approach
98–99
S4-2 Processes for engaging with consumers and end-users about impacts Material impacts, risks and
opportunities
98
S4-3 Processes to remediate negative impacts and channels for consumers and
end-users to raise concerns
Material impacts, risks and
opportunities
98
S4-4 Taking action on material impacts on consumers and end-users, and approaches to
managing material risks and pursuing material opportunities related to consumers
and end- users, and effectiveness of those actions
Key actions
99
S4-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
Performance, metrics and targets
99
G1-GOV-1 The role of the administrative, supervisory and management bodies Responsible business conduct
102
G1-IRO-1 Description of the processes to identify and assess material impacts, risks and
opportunities
Double materiality assessment;
Material impacts, risks and
opportunities
31–32, 101
G1-1 Business conduct policies and corporate culture Responsible business conduct
102
G1-2 Management of relationships with suppliers Sustainable procurement
104–105
G1-3 Prevention and detection of corruption and bribery Anti-corruption and bribery
103–104
G1-4 Confirmed incidents of corruption or bribery Anti-corruption and bribery
104
G1-6 Payment practices Sustainable procurement
104–105
Entity-specific Temporary border control Temporary border control
105
Entity-specific Responsible provision of gambling Responsible provision of gambling
105–106
Entity-specific Responsible sale of alcohol and tobacco Responsible sale of alcohol and
tobacco
106
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ESRS datapoints from other EU legislation
ESRS 2 IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement
Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference
EU Climate Law
reference Material/ Not material Page
ESRS 2 GOV-1
Board's gender diversity paragraph 21 (d)
Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation (EU) 2020/1816(5),
Annex II
Material 25
ESRS 2 GOV-1
Percentage of board members who are independent paragraph
21 (e)
Delegated Regulation (EU) 2020/1816, Annex II Material
25
ESRS 2 GOV-4
Statement on due diligence paragraph 30
Indicator number 10 Table #3 of Annex 1 Material
27
ESRS 2 SBM-1
Involvement in activities related to fossil fuel activities
paragraph 40 (d) i
Indicators number 4 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU) 2022/2453(6)Table 1:
Qualitative information on Environmental risk and Table 2: Qualitative
information on Social risk
Delegated Regulation (EU) 2020/1816, Annex II Not relevant –
ESRS 2 SBM-1
Involvement in activities related to chemical production
paragraph 40 (d) ii
Indicator number 9 Table #2 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Not relevant –
ESRS 2 SBM-1
Involvement in activities related to controversial weapons
paragraph 40 (d) iii
Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1818(7), Article 12(1)
Delegated Regulation (EU) 2020/1816, Annex II
Not relevant –
ESRS 2 SBM-1
Involvement in activities related to cultivation and production of
tobacco paragraph 40 (d) iv
Delegated Regulation (EU) 2020/1818, Article 12(1)
Delegated Regulation (EU) 2020/1816, Annex II
Not relevant –
ESRS E1-1
Transition plan to reach climate neutrality by 2050
paragraph 14
Regulation (EU)
2021/1119, Article 2(1)
Material
55–60
ESRS E1-1
Undertakings excluded from Paris-aligned Benchmarks
paragraph 16 (g)
Article 449a
Regulation (EU) No 575/2013; Commission Implementing Regulation (EU)
2022/2453 Template 1: Banking book-Climate Change transition risk:
Credit quality of exposures by sector, emissions and residual maturity
Delegated Regulation (EU) 2020/1818, Article12.1 (d) to
(g), and Article 12.2
Material
55
ESRS E1-4
GHG emission reduction targets paragraph 34
Indicator number 4 Table #2 of Annex 1 Article 449a
Regulation (EU) No 575/2013; Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book – Climate change transition risk:
alignment metrics
Delegated Regulation (EU) 2020/1818, Article 6 Material
61–64
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EU Climate Law
reference Material/ Not material Page
ESRS E1-5
Energy consumption from fossil sources disaggregated by
sources (only high climate impact sectors) paragraph 38
Indicator number 5 Table #1 and Indicator n. 5 Table
#2 of Annex 1
Material
65
ESRS E1-5
Energy consumption and mix paragraph 37
Indicator number 5 Table #1 of Annex 1 Material
65
ESRS E1-5
Energy intensity associated with activities in high climate impact
sectors paragraphs 40 to 43
Indicator number 6 Table #1 of Annex 1 Material
65
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44
Indicators number 1 and 2 Table #1 of Annex 1 Article 449a; Regulation (EU) No 575/2013; Commission Implementing
Regulation (EU) 2022/2453 Template 1: Banking book – Climate change
transition risk: Credit quality of exposures by sector, emissions and
residual maturity
Delegated Regulation (EU) 2020/1818, Article 5(1), 6
and 8(1)
Material
62,
64, 66
ESRS E1-6
Gross GHG emissions intensity paragraphs 53 to 55
Indicators number 3 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing
Regulation (EU) 2022/2453 Template 3: Banking book – Climate change
transition risk: alignment metrics
Delegated Regulation (EU) 2020/1818, Article 8(1) Material
64
ESRS E1-7
GHG removals and carbon credits paragraph 56
Regulation (EU)
2021/1119, Article 2(1)
Not relevant –
ESRS E1-9
Exposure of the benchmark portfolio to climate-related physical
risks paragraph 66
Delegated Regulation (EU) 2020/1818, Annex II
Delegated Regulation (EU) 2020/1816, Annex II
Phase-in –
ESRS E1-9
Disaggregation of monetary amounts by acute and chronic
physical risk paragraph 66 (a)
ESRS E1-9
Location of significant assets at material physical risk paragraph
66 (c).
Article 449a Regulation (EU) No 575/2013; Commission Implementing
Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking
book - Climate change physical risk: Exposures subject to physical risk.
Phase-in –
ESRS E1-9
Breakdown of the carrying value of its real estate assets by
energy-efficiency classes paragraph 67 (c).
Article 449a Regulation (EU) No 575/2013; Commission Implementing
Regulation (EU) 2022/2453 paragraph 34; Template 2: Banking book
-Climate change transition risk: Loans collateralised by immovable
property - Energy efficiency of the collateral
Phase-in –
ESRS E1-9
Degree of exposure of the portfolio to climate- related
opportunities paragraph 69
Delegated Regulation (EU) 2020/1818, Annex II Phase-in –
ESRS E2-4
Amount of each pollutant listed in Annex II of the E-PRTR
Regulation (European Pollutant Release and Transfer Register)
emitted to air, water and soil, paragraph 28
Indicator number 8 Table #1 of Annex 1
Indicator number 2 Table #2 of Annex 1 Indicator
number 1 Table #2 of Annex 1 Indicator number 3 Table
#2 of Annex 1
Material
70
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Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference
EU Climate Law
reference Material/ Not material Page
ESRS E3-1
Water and marine resources paragraph 9
Indicator number 7 Table #2 of Annex 1 Material 73
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8 Table 2 of Annex 1 Not relevant –
ESRS E3-1
Sustainable oceans and seas paragraph 14
Indicator number 12 Table #2 of Annex 1 Material
60–61,
69, 73
ESRS E3-4
Total water recycled and reused paragraph 28 (c)
Indicator number 6.2 Table #2 of Annex 1 Material
74
ESRS E3-4
Total water consumption in m
3
per net revenue on own
operations paragraph 29
Indicator number 6.1 Table #2 of Annex 1 Material
74
ESRS 2- IRO 1 - E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1 Not material –
ESRS 2- IRO 1 - E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 Not material –
ESRS 2- IRO 1 - E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 Not material –
ESRS E4-2
Sustainable land / agriculture practices or policies paragraph
24 (b)
Indicator number 11 Table #2 of Annex 1 Not material –
ESRS E4-2
Sustainable oceans / seas practices or policies paragraph 24 (c)
Indicator number 12 Table #2 of Annex 1 Not material –
ESRS E4-2
Policies to address deforestation paragraph 24 (d)
Indicator number 15 Table #2 of Annex 1 Not material –
ESRS E5-5
Non-recycled waste paragraph 37 (d)
Indicator number 13 Table #2 of Annex 1 Material
79
ESRS E5-5
Hazardous waste and radioactive waste paragraph 39
Indicator number 9 Table #1 of Annex 1 Material
79
ESRS 2- SBM3 - S1
Risk of incidents of forced labour paragraph 14 (f
Indicator number 13 Table #3 of Annex I Not material –
ESRS 2- SBM3 - S1
Risk of incidents of child labour paragraph 14 (g)
Indicator number 12 Table #3 of Annex I Not material –
ESRS S1-1
Human rights policy commitments paragraph 20
Indicator number 9 Table #3 and Indicator number 11
Table #1 of Annex I
Material
82, 90
ESRS S1-1
Due diligence policies on issues addressed by the fundamental
International Labor Organisation Conventions 1 to 8,
paragraph 21
Delegated Regulation (EU) 2020/1816, Annex II Material
27, 90
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EU Climate Law
reference Material/ Not material Page
ESRS S1-1
Processes and measures for preventing trafficking in human
beings paragraph 22
Indicator number 11 Table #3 of Annex I Not material –
ESRS S1-1
workplace accident prevention policy or management system
paragraph 23
Indicator number 1 Table #3 of Annex I Material
83–84
ESRS S1-3
grievance/complaints handling mechanisms paragraph 32 (c)
Indicator number 5 Table #3 of Annex I Material
82,
102–103
ESRS S1-14
Number of fatalities and number and rate of work- related
accidents paragraph 88 (b) and (c)
Indicator number 2 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Material
85
ESRS S1-14
Number of days lost to injuries, accidents, fatalities or illness
paragraph 88 (e)
Indicator number 3 Table #3 of Annex I Phase-in –
ESRS S1-16
Unadjusted gender pay gap paragraph 97 (a)
Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Material
89
ESRS S1-16
Excessive CEO pay ratio paragraph 97 (b)
Indicator number 8 Table #3 of Annex I Material
89
ESRS S1-17
Incidents of discrimination paragraph 103 (a)
Indicator number 7 Table #3 of Annex I Material
91
ESRS S1-17
Non-respect of UNGPs on Business and Human Rights and OECD
paragraph 104 (a)
Indicator number 10 Table #1 and Indicator n. 14 Table
#3 of Annex I
Delegated Regulation (EU) 2020/1816, Annex II
Delegated Regulation (EU) 2020/1818 Art 12 (1)
Not material –
ESRS 2- SBM3 – S2
Significant risk of child labour or forced labour in the value
chain paragraph 11 (b)
Indicators number 12 and n. 13 Table #3 of Annex I Material
94
ESRS S2-1
Human rights policy commitments paragraph 17
Indicator number 9 Table #3 and Indicator n. 11 Table
#1 of Annex 1
Material
94–95,
104–105
ESRS S2-1
Policies related to value chain workers paragraph 18
Indicator number 11 and n. 4 Table #3 of Annex 1 Material
95,
104–105
ESRS S2-1
Non-respect of UNGPs on Business and Human Rights principles
and OECD guidelines paragraph 19
Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II
Delegated Regulation (EU) 2020/1818, Art 12 (1)
Material
95,
104–105
ESRS S2-1
Due diligence policies on issues addressed by the fundamental
International Labor Organisation Conventions 1 to 8,
paragraph 19
Delegated Regulation (EU) 2020/1816, Annex II Material
27, 95,
104–105
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EU Climate Law
reference Material/ Not material Page
ESRS S2-4
Human rights issues and incidents connected to its upstream
and downstream value chain paragraph 36
Indicator number 14 Table #3 of Annex 1 Material
96
ESRS S3-1
Human rights policy commitments paragraph 16
Indicator number 9 Table #3 of Annex 1 and Indicator
number 11 Table #1 of Annex 1
Not material –
ESRS S3-1
Non-respect of UNGPs on Business and Human Rights, ILO
principles or and OECD guidelines paragraph 17
Indicator number 10 Table #1 Annex 1 Delegated Regulation (EU) 2020/1816, Annex II
Delegated Regulation (EU) 2020/1818, Art 12 (1)
Not material –
ESRS S3-4
Human rights issues and incidents paragraph 36
Indicator number 14 Table #3 of Annex 1 Not material –
ESRS S4-1
Policies related to consumers and end-users paragraph 16
Indicator number 9 Table #3 and Indicator number 11
Table #1 of Annex 1
Material
98–99
ESRS S4-1
Non-respect of UNGPs on Business and Human Rights and OECD
guidelines paragraph 17
Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II
Delegated Regulation (EU) 2020/1818, Art 12 (1)
Material
98
ESRS S4-4
Human rights issues and incidents paragraph 35
Indicator number 14 Table #3 of Annex 1 Material
99
ESRS G1-1
United Nations Convention against Corruption paragraph 10 (b)
Indicator number 15 Table #3 of Annex 1 Material
103–104
ESRS G1-1
Protection of whistle- blowers paragraph 10 (d)
Indicator number 6 Table #3 of Annex 1 Material
102–103
ESRS G1-4
Fines for violation of anti- corruption and anti-bribery laws
paragraph 24 (a)
Indicator number 17 Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II) Material
104
ESRS G1-4
Standards of anti- corruption and anti- bribery paragraph 24 (b)
Indicator number 16 Table #3 of Annex 1 Material
103–104
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Comments on the financial statements
118
Consolidated financial statements
121
Parent company financial statements
151
FINANCIALS
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117117 FinancialsFinancials Financials
Part of the Board of Directors’ report
COMMENTS ON
THE FINANCIAL
STATEMENTS
For Color Group, 2024 was characterized by
stable production with increased yield per
passenger, partly offset by lower transport
volumes as a result of the macro situation. The
total number of passengers carried in 2024 was
3 675 249 as compared with 3 548 821 in 2023.
The volume of freight carried (12m equivalents)
in 2024 totalled 157 121 units, as compared with
179 133 units in 2023.
Color Group AS is a Norwegian limited company headquartered in Oslo.
The consolidated accounts are presented in accordance with IFRS
Accounting Standards as adopted by the European Union and mandatory
for the financial year commencing on 1 January 2024 or later, as well
as Norwegian information requirements pursuant to the Norwegian
Accounting Act as of 31 December 2024. The accounts of the parent
company are presented in accordance with the Norwegian Accounting Act..
OTHER ITEMS: THE PURCHASE OF THE REMAINING
SHARES IN THE COMPANY ONS SHIP FINANCE AS
In June 2024, Color Group AS entered into an agreement with the parent
company O.N. Sunde AS to purchase the remaining 61.4% equity share of
ONS Ship Finance AS for a total sum of NOK 411 million. The total purchase
price was settled by means of offset between Color Group AS and O.N.
Sunde AS in the sum of NOK 411 million, and further the company’s net
debt of approximately NOK 360 million was transferred to Color Group
AS , resulting in an increase in the latter’s net interest-bearing debt.
The purchase price was agreed based on an independent valuation. The
transaction had a positive effect on earnings, including a positive effect on
equity of approximately NOK 180 million.
RESULTS
Operating revenues totalled NOK 6684 million in 2024 as compared
with NOK 6306 million in 2023. Of this figure, the effect of the ONS Ship
Finance AS transaction (outlined over ‘Other items’) (IFRS 16 leases)
accounted for NOK 45 million. Total income in 2023 included NOK 52
million in revenue gained from the sale of M/S Color Viking. Operating
expenses amounted to NOK -5 293 million, as against NOK -4 907 million in
2023. Operating expenses in 2024 included NOK 117 million in mandatory
purchases of EU Allowances (EUAs), or carbon allowances, in connection
with the EU Emissions Trading System (EU ETS). Operating profit before
depreciation, amortization and other exceptional items amounted to
NOK 1 391 million in 2024, as compared with NOK 1 399 million in 2023.
Operating profit (EBIT) in 2024 totalled NOK 808 million, compared
with NOK 819 million reported in 2023. Group net financial expenses
in 2024 were NOK -198 million, as compared with NOK -364 million in
2023. Moreover, net financial items in 2024 included a positive effect in
the amount of approximately NOK 24 million for realized and unrealized
values relating to currency loans, fixed-interest-rate contracts, interest-
rate derivatives and currency hedging contracts, as well as short-term
shareholdings (NOK -44 million in 2023). There was an additional positive
effect on earnings in 2024 of NOK 144 contributed by ONS Ship Finance.
The 2023 results included a positive effect on earnings in the amount of
NOK 48 million from ONS Ship Finance, primarily derived from the sale of
M/S Edda Sun.
Net-interest payable, and premium (NOK -109 million in 2024) relating to the
perpetual bond loans COLG17 and COLG20 is charged directly to equity.
Full-year profit for 2024 was NOK 486 million, versus NOK 358 million in
2023.
Other comprehensive income amounted to NOK -5 million, due to net loss
on bunker fuel hedging contracts, partly offset by exchange differences on
translation of foreign operations.
Total comprehensive income amounted to NOK 482 million, compared
with NOK 365 million in 2023.
Hedge accounting is applied in connection with bunker fuel purchases
for the vessels. Hedging contracts are reported at fair value as of the
reporting date and form part of other comprehensive income for the year.
The change in market value of hedging contracts was approximately NOK
-10 million (after tax).
BALANCE SHEET AND FUNDING
NOK'000 2024 2023
Interest-bearing debt 4 674 927 4 155 329
Net interest-bearing debt
1
3 612 775 3 748 714
Total available liquidity 1 741 152 1 099 615
Equity 2 087 026 1 686 625
1
Including approximately NOK 360 million from the ONS Ship Finance Transaction.
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Part of the Board of Directors’ report
Color Group AS focuses on diversified and long-term financing. As of
31 December 2024, the total value of the balance sheet of the Group
amounted to NOK 9 016 million, as compared with NOK 8 922 million as
of 31 December 2023. The difference derives primarily from the ONS Ship
Finance acquisition. The equity capital as of 31 December 2024 stood at
NOK 2 087 million (including hybrid bond debt), as compared with
NOK 1 687 million in 2023. The equity ratio is approximately 23 per cent.
Long-term mortgage debt on ships/terminals has a repayment profile of
10 to 15 years. Total outstanding mortgage debt/unsecured borrowing
(not including hybrid bond debt) booked on ships/terminals/companies
recorded as of 31 December 2024 was NOK 4 675 million. Net outstanding
interest-bearing debt, excluding bank deposits, cash and market-traded
shares, stood at NOK 3 613 million as of 31 December 2024 (not including
hybrid bond debt), a reduction of NOK 137 million on the NOK 3 749 million
recorded as of 31 December 2023. This included an increase in the Group’s
net interest-bearing debt of approximately NOK 360 million due to the
ONS Ship Finance transaction.
In April 2024, Color Group issued an unsecured bond loan (COLG19) in the
amount of NOK 900 million which matures in April 2029. In conjunction
with this issuance, the company partially repurchased bond loan COLG16
(maturity October 2024) in the amount of NOK 294 million. The loan
was listed on Oslo Stock Exchange in July 2024. In May 2024, a group
contribution in the net amount of NOK 71 million (liquidity effect) was
received from other companies in the parent company O.N. Sunde AS
Group. In December 2024, NOK 150 million was contributed as dividend to
the owning company.
In October 2024, Color Group refinanced and increased borrowings
secured by a first mortgage on M/S SuperSpeed 2. The new structure
amounts to NOK 650 million and has the same covenant structure as
other corresponding loans concluded by the company. The loan term is
five years with an instalment profile of 14 years. In October 2024, Color
Group issued an unsecured perpetual bond loan (COLG20) in the amount
of NOK 800 million with first call date (option for Color Group) after 3.5
years. In conjunction with this issuance, the company partially repurchased
perpetual bond loan COLG17 (with first call date in December 2024) in the
amount of NOK 276.15 million. The loan was listed on Oslo Stock Exchange
in January 2025.
Bond loan COLG16 was redeemed in full (originally NOK 800 million)
in the net amount of NOK 432 million on the maturity date in October
2024. Color Group further gave notice to exercise the first-call option to
redeem all outstanding bonds with regards to the subordinated perpetual
callable hybrid bond issue COLG17, falling due in December 2024. The net
outstanding amount was NOK 347.6 million.
Bond loans (not including hybrid bond debt) listed on Oslo Stock Exchange
fall due in the period 2026-2029. Total outstanding net bond debt as of
31 December 2024 stands at NOK 1 800 million (excluding hybrid bond debt
in the net amount of NOK 800 million with first call date in May 2028 at par,
being perpetual and classified as equity in the consolidated accounts). The
following net amounts are outstanding as of 31 December 2024:
COLG18 (maturity August 2026): NOK 900 million.
COLG19 (maturity April 2029): NOK 900 million.
COLG20 (first call: May 2028): NOK 800 million.
The company’s loan agreements contain covenants related to liquidity,
equity and debt-servicing ratio. The company was in compliance with all
commitments as of 31 December 2024.
CASH FLOW
In 2024, the Group’s cash flow from operational activities totalled NOK 921
million compared with NOK 1 101 previous year. The change can primarily
be attributed to payments for EUAs, or carbon allowances (NOK 104
million) and an increase in payment of income tax (NOK 58). Net cash flow
from financing activities totalled NOK -151 million for the Group. Net cash
flow from investment activities amounted to NOK -167 million. The Group's
total liquidity reserves as of 31 December 2024, including granted drawing
rights and liquid securities, stood at approximately NOK 1 741 million.
Instalments due in 2025 on the Group's interest-bearing debt with credit
institutions amount to approximately NOK 350 million.
FINANCIAL RISK
The Group has limited market risk exposure as its business is directed at a
market comprising a large number of customers (in a normal year).
The company estimates that liquidity will remain satisfactory for the
remainder of the year and into 2026.
The Group’s foreign-exchange risk is related to fluctuations in the value of
the Norwegian krone (NOK) against other currencies, in particular the USD,
EUR and DKK. The Group is also exposed to interest-rate risk and changes
in the price of bunker fuel products, as well as EUAs. The Group makes
use of financial instruments to mitigate the risk of fluctuations in its cash
flow. The parent company’s primary risk exposure is to currency risk and
interest-rate risk related to borrowings.
Currency risk
Currency risk arises for the Group when there are differences between
income received and expenses paid in different currencies. The Group
operates and generates income in different countries in Northern Europe
and is exposed to currency risks related to the following currencies: NOK,
DKK, EUR and USD. Wherever possible, the Group attempts to mitigate
currency risk primarily by using foreign currency netting and foreign
currency loans. As of the reporting date, the company had various
currency derivative contracts in place, as well as holdings of foreign
currencies on deposit, relating to budgeted operations in 2025.
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Interest rate risk
The Group enters into interest-rate swap agreements with the aim of
achieving the desired ratio between fixed and floating rates of interest. The
Group has taken out a NOK 700 million interest-rate swap in 2024 at 3.45 per
cent. In connection with the delivery of M/S Color Hybrid, the company took
up an option to take out CIRR fixed-rate contracts (fixed for 12 years) for the
full amount of the funding (adjusted as of 31 December 2024): approximately
NOK 460 million at a fixed rate of 2.14 per cent and EUR 21 million at a fixed
rate of 0.84 per cent from Export Finance Norway. The fixed-rate contracts
are adjusted downwards by 1/12 per year between 2019 and 2031.
Bunker-oil and carbon allowance risk
The cost of bunker fuel accounted for some 13 per cent of the Group’s
operating costs in 2024 and represents an operational risk because of
fluctuations in the price of oil. As of 31 December 2024, the Group had
bunker fuel hedging contracts in place for approximately 60 per cent of
estimated consumption in 2025. While the hedging contracts apply to the
actual physical product consumed by the ships, the company has indirect
hedging in place for a further 20 per cent of consumption through BAF
(Bunker Adjustment Fee) contracts with freight customers, ie. direct,
and indirect hedges approaching 80 per cent of the estimated 2025
consumption. In addition, the Company has bunker fuel hedging contracts
in place for approximately 40 per cent of estimated consumption in 2026
(including BAF contracts, this equals approximately 60 per cent). The fair
value of hedging contracts in force as of 31 December 2024, was NOK -17
million after tax. All hedging contracts for bunker fuel expire in 2025-2026
and will affect earnings in the coming years. Changes in the market value
of the remaining bunker fuel contracts will not affect earnings, only equity.
The European Union included maritime transport in the EU Emissions
Trading System (EU ETS) in 2024. Consequently, the Group has secured
100 per cent of the estimated carbon allowances (EUAs) to be purchased in
2025, and approximately 20 per cent of the estimated carbon allowances
to be purchased in 2026. The company is expecting approximately 25 per
cent of these costs to be covered indirectly through freight contracts.
PARENT COMPANY
The parent company Color Group AS reported royalty revenues of NOK 194
million and an operating profit of NOK 174 million for 2024, compared with
NOK 184 million and NOK 167 million respectively in 2023. Earnings after tax
in 2024 amounted to NOK 180 million, as compared with NOK 126 million in
2023. The proposal of the Board of Directors is that the earnings for the year
should be transferred to other equity. It is the Board’s assessment that the
liquidity and equity of the company viewed in relation to its operations and
plans for the future are satisfactory (please see 'Outlook').
The equity capital of the parent company as of 31 December 2024 stood
at NOK 2 129 million, as against NOK 2 100 million in 2023, and makes
up approximately 28 per cent of the balance sheet total of the parent
company.
In 2024, the company’s cash flow from operational activities totalled
NOK -174 million, impacted by NOK 104 million in purchases of Carbon
allowances. Net cash flow from investment activities amounted to NOK 184
million, primarily as a result of dividends and group contributions from
subsidiaries. Net cash flow from financing activities totalled NOK 541
million, impacted by net issuance of new interest-bearing loans.
In 2024, Color Group AS has paid a dividend of NOK 150 million.
GOING CONCERN
Continued operations are based on the information provided above on the
earnings and financial position of the Group and the parent company, and
the Board of Directors confirms that the annual financial statements have
been prepared on a going concern basis. Moreover, the directors are of the
opinion that the annual financial statements provide a true picture of the
assets, liabilities, financial position and earnings of the parent company
and the Group.
OUTLOOK
During Q1 2025, the company will invest in, and rebuild today’s open-loop
scrubber-systems to closed-loop scrubbers to meet current and expected
wider environmental regulation in the coming years. This will result in
slightly longer docking periods for M/S Color Magic, M/S Color Fantasy,
M/S SuperSpeed 1, and M/S SuperSpeed 2 in this time frame, and also
increase operational vessel investments by some NOK 260 million in 2025
(of which parts were paid in Q4 2024) compared with a normal year.
The company is well-positioned in the market, offering as it does attractive
commercial and operational concepts, modern tonnage, and a historically
stable and sound customer base. Color Line has for many years invested
substantial sums in ships, infrastructure, digital booking solutions and
innovative environmental technology. Color Line’s primary product is
offering attractive customer experiences to the company’s local markets,
where demand has traditionally proven to be stable and sound, even in
periods of economic uncertainty.
With the above comments in mind, the directors maintain a positive market
outlook and are of the opinion that the company is well-equipped to meet
future challenges, with a good result also expected in 2025.
Oslo, 8 April 2025
The Board of Directors of Color Group AS
Document signed electronically
Morten Garman
Chairman
Olav Nils Sunde
Director and CEO
Camilla Sunde
Director
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CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of comprehensive income
122
Consolidated statement of financial position
123
Consolidated statement of changes in equity
124
Consolidated statement of cash flows
125
Notes to the consolidated financial statements
126
Note 01 General information
126
Note 02 Basis for preperation
126
Note 03 Financial risk and capital management
127
Note 04 Climate-related matters
129
Note 05 Operating income
130
Note 06 Direct cost of consumables and services
130
Note 07 Personell expenses
131
Note 08 Other operating expenses
131
Note 09 Finance income and cost
132
Note 10 Tax
132
Note 11 Property, plant and equipment
134
Note 12 Intangible assets and goodwill
135
Note 13 Leases
136
Note 14 Financial instruments and fair value
137
Note 15 Investment in associates
140
Note 16 Inventories
140
Note 17 Trade and other receivables
141
Note 18 Cash and cash equivalents
142
Note 19 Equity
142
Note 20 Interest-bearing debt
143
Note 21 Trade and other payables
144
Note 22 Impairment testing
145
Note 23 Related parties
146
Note 24 Management and auditor remuneration
146
Note 25 Segment information
147
Note 26 Group companies
148
Note 27 Definitions
149
Note 28 Acquisitions
149
Note 29 Events after the balance sheet date
150
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Consolidated statement of comprehensive income
NOK'000 | Note | 2024 | 2023 |
Revenue from contracts with customers | |||
Other operating income | |||
| Total operating income | 5 | ||
| Direct cost of consumables and services | 6 | - | - |
| Personell expenses | 7 | - | - |
| Other operating expenses | 8 | - | - |
Operating profit before finance, taxes, depreciation and amortisation (EBITDA) | |||
| Depreciation and amortisation | 11, 12, 13 | - | - |
Operating profit | |||
| Gain on fair value measurement of share in associate | 15 | ||
| Finance income | 9 | ||
| Finance costs | 9 | - | - |
Profit before tax | |||
| Income tax | 10 | - | - |
Profit for the period |
NOK'000 | Note | 2024 | 2023 |
Profit for the period | |||
| Items that may be reclassified to profit or loss | |||
Exchange differences on translation of foreign operations | |||
Net gain/loss bunker fuel hedging | - | - | |
Other comprehensive income | - | ||
Total Comprehensive income |
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122122 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
Consolidated statement of financial position
NOK'000 | Note | 2024 | 2023 |
| Non-current assets | |||
| Property, plant and equipment | 11 | ||
| Intangible assets and goodwill | 12 | ||
| Right-of-use assets | 13 | ||
| Financial assets | 14 | ||
| Investment in associates | 15 | ||
Other assets | |||
Total non-current assets | |||
| Current assets | |||
| Inventories | 16 | ||
| Trade and other receivables | 17 | ||
| Other financial assets | 14 | ||
| Cash and cash equivalents | 18 | ||
Total current assets | |||
Total assets |
NOK'000 | Note | 2024 | 2023 |
| Equity | |||
Equity attributable to owners of the parent | |||
Other components of equity | |||
| Total equity | 19 | ||
| Non-current liabilitites | |||
| Interest-bearing debt | 20 | ||
| Lease liabilitites | 13 | ||
| Deferred tax liability | 10 | ||
Other non-current liabilitites | |||
Total non-current liabilitites | |||
| Current liabilitites | |||
| Interest-bearing debt | 20 | ||
| Lease liabilitites | 13 | ||
| Trade and other payables | 21 | ||
| Current income tax | 10 | ||
| Other current financial liabilitites | 14 | ||
Total current liabilitites | |||
Total equity and liabilitites |
Oslo, 8 April 2025
The Board of Directors of Color Group AS
Document signed electronically
Morten Garman
Chairman
Olav Nils Sunde
Director and CEO
Camilla Sunde
Director
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123123 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
Consolidated statement of changes in equity
Equity attributable to owners of the parent | Other equity components | |||||||
NOK'000 | Share capital | Other issued capital | Translation difference | Hedging reserve | Retained earnings | Total | Hybrid bond-loan | Total equity |
As at 1 January 2023 | - | - | ||||||
Profit for the period | ||||||||
Other comprehensive income | - | |||||||
Total comprehensive Income | - | |||||||
Group contribution | ||||||||
Interest Hybrid-bond 1 | - | - | - | |||||
Payment/issuance Hybrid-bond 1 | - | - | ||||||
Adjustment share in Associate 2 | - | - | - | |||||
As at 31 December 2023 | - | - | ||||||
As at 1 January 2024 | - | - | ||||||
Profit for the period | ||||||||
Other comprehensive income | - | - | - | |||||
Total comprehensive Income | - | |||||||
Dividends | - | - | - | |||||
Interest Hybrid-bond 1 | - | - | - | |||||
Payment/issuance Hybrid-bond 1 | ||||||||
As at 31 December 2024 | - | - |
1
The Group has issued listed perpetual bonds (COLG 17 and COLG 20). These bonds are subordinate to all other debt and is calissified as equity (Other equity components) in the Financial statements. See note 19 Equity for further information.
2
In 2023 the Group recognised an adjustment for its share in associated companies, see note 15 Associates for further information.
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124124 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
Consolidated statement of cash flows
NOK'000 | Note | 2024 | 2023 |
Profit before tax | |||
| Adjustments to reconcile profit before tax to net cash flow: | |||
| Depreciation and amortisation | 11, 12, 13 | ||
| Finance income | 9 | - | - |
| Finance cost | 9 | ||
| Gain on fair value measurement of share in associate | 15 | - | |
| Other gains withouth cash effect | 5 | - | - |
Other adjustments | - | - | |
| Change in operating assets and liabilitites, net of effects | |||
| presented as investing or finance cash flows: | |||
Inventory | - | - | |
Trade and other receivables | - | ||
Trade and other payables | |||
Cash generated from operations | |||
Interest received | |||
Interest paid | - | - | |
Net cashflow from market based shares | - | - | |
Income tax paid | - | ||
Net cash flows from operating activities |
NOK'000 | Note | 2024 | 2023 |
Payments for property, plant and equipment | 11 | - | - |
| Payments for intangible assets | 12 | - | - |
Proceeds from sale of property, plant and equipment | |||
| Dividends from associates | 15 | ||
| Cash aquired on acquisition of subsidiary | 28 | ||
Payments for other investments | - | ||
Net cash flows from investing activitites | - | - | |
| Proceeds from borrowings | 20 | ||
| Repayment of borrowings | 20 | - | - |
| Payments to Hybrid-bond holders | 19 | - | - |
| Proceeds from Hybrid-bond | 19 | ||
| Payments lease liabilitites | 13 | - | - |
| Proceeds from group contributions | 23 | ||
| Payment of group contributions | 23 | - | - |
Payment of dividend | - | ||
Proceeds from other receivables | |||
Net cash flows from Financing activitites | - | - | |
Net change in cash and cash equivalents | |||
Cash and cash equivalents at the beginning of period | |||
Cash and cash equivalents at the end of period |
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Notes to the consolidated financial statements
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126126 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
NOTE 03 FINANCIAL RISK AND
CAPITAL MANAGEMENT
The main financial risks borne by the Group are related to price of bunker
fuel and carbon allowances, foreign currency rates, interest rates and
liquidity risk/refinancing risk. The Group monitors the individual areas
on an ongoing basis to ascertain possible current and future risk. It is the
policy of the Group not to speculate actively in financial risks, but rather
to use financial derivatives to mitigate risks connected with financial
exposure in the operation and financing of the Group's business. An
overview is maintained of the hedging instruments in place at any given
time. The Board and the Group's Audit Committee are furnished with
regular updates on hedging instruments and estimated future risk.
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127127 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
NOK'000 | Less than one year | 1–2 years | 3–4 years | 5 years and more |
Unsecured bond issues | 1 800 000 | 900 000 | 900 000 | 900 000 |
Secured loans | 2 560 117 | 2 207 172 | 1 473 046 | 837 920 |
Interest-bearing debt | 4 360 117 | 3 107 172 | 2 373 046 | 1 737 920 |
Liquid assets | 1 062 152 | 1 062 152 | 1 062 152 | 1 062 152 |
Interest-rate swaps | 1 402 424 | 1 320 424 | 1 238 424 | 456 424 |
Net amount | 1 895 541 | 724 596 | 72 470 | 219 344 |
Interest rate sensitivity at +/- 1 percent point change | 18 955 | 7 246 | 725 | 2 193 |
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128128 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
NOK'000 | 2024 | 2023 |
Cash and cash equivalents | 961 737 | 358 293 |
Market-traded shares | 100 415 | 48 322 |
Liquid assets | 1 062 152 | 406 615 |
Unused drawing rights | 679 000 | 693 000 |
Availible liquidity | 1 741 152 | 1 099 615 |
NOK'000 | 2024 | 2023 |
Interest-bearing debt | 4 674 927 | 4 155 329 |
Liquid assets | 1 062 152 | 406 615 |
Net interest-bearing debt | 3 612 775 | 3 748 714 |
Equity | 2 087 026 | 1 686 625 |
Debt to equity ratio | 1.73 | 2.22 |
NOTE 04 CLIMATE-RELATED MATTERS
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129129 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
NOK'000 | 2024 | 2023 |
Transport of passengers and cargo | 2 972 129 | 2 873 198 |
Sale of goods and other services | 3 585 281 | 3 307 503 |
Hotel | 66 857 | 66 256 |
Revenue from contracts with customers | 6 624 267 | 6 246 957 |
Gain on sale of property, plant and equipment | 1 149 | 53 948 |
Other gains | 44 814 | 0 |
Government grants | 13 474 | 5 038 |
Other operating income | 59 437 | 58 986 |
Total operating income | 6 683 704 | 6 305 943 |
NOK'000 | 2024 | 2023 |
Goods consumed or sold | 1 301 451 | 1 221 979 |
Bunker oil products and electricity | 666 471 | 679 893 |
Cost of carbon allowances | 117 454 | 0 |
Other | 313 852 | 288 833 |
Direct cost of consumables and services | 2 399 228 | 2 190 705 |
Color Group Annual Report 2024Color Group Annual Report 2024
130130 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
NOK'000 | 2024 | 2023 |
Salaries | 1 520 138 | 1 414 702 |
Net wage scheme | -306 916 | -300 670 |
Payroll tax | 225 555 | 216 642 |
Pension cost | 125 446 | 115 398 |
Other personell expenses | 192 626 | 185 040 |
Personell expenses | 1 756 849 | 1 631 112 |
Number of full time equivalents | 2 191 | 2 177 |
NOK'000 | 2024 | 2023 |
Contribution scheme | 90 645 | 83 038 |
Pension insurance for seafarers | 34 801 | 32 360 |
Pension contributions | 125 446 | 115 398 |
NOK'000 | 2024 | 2023 |
Maintenance, repair and equipment | 388 957 | 413 475 |
Professional services | 312 102 | 265 642 |
Other shipboard expenses | 89 574 | 91 193 |
Other | 346 302 | 315 277 |
Other operating expenses | 1 136 935 | 1 085 587 |
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131131 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
NOK'000 | 2024 | 2023 |
Interest income | 45 564 | 51 401 |
Gain on financial instruments at fair value | 34 674 | 0 |
Share of profit in associated company | 1 727 | 48 032 |
Other financial income | 11 568 | 2 769 |
Finance income | 93 533 | 102 202 |
Interest expense bonds and bank loans | 345 162 | 344 280 |
Interest expense lease liability | 42 812 | 61 923 |
Loss on financial instruments at fair value | 0 | 28 036 |
Foreign exchange loss | 10 454 | 17 850 |
Other financial expense | 36 852 | 14 081 |
Finance cost | 435 280 | 466 170 |
NOK'000 | 2024 | 2023 |
Current period payable income tax | 113 260 | 43 468 |
Prior period adjustments | 3 650 | 0 |
Payable income tax expense | 116 910 | 43 468 |
Change in deferred tax | 6 540 | 53 615 |
Prior period adjustments | -3 | 183 |
Deferred tax expense/(income) | 6 537 | 53 798 |
Income tax | 123 447 | 97 266 |
132132 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
NOK'000 | 2024 | 2023 |
Tax expense/(income) on cash flow hedge | -2 788 | -1 015 |
Tax expense/(income) in other comprehensive income | -2 788 | -1 015 |
Tax expense/(income) on Hybrid-bond loan | -24 963 | -29 864 |
Tax expense/(income) on Group contributions | 71 275 | 54 182 |
Tax expense/(income) directly in Equity | 46 312 | 24 318 |
NOK'000 | 2024 | 2023 |
Profit before income tax | 609 849 | 455 250 |
Calculated income tax at Norwegian tax rate of 22% | 134 167 | 100 155 |
Share of profit in associate | -31 952 | -10 567 |
Other permanent differences | 5 575 | 377 |
Other items including foreign currency effects | 12 011 | 7 301 |
Prior period adjustments | 3 647 | 0 |
Income tax | 123 447 | 97 266 |
Effective tax rate | 20.2% | 21.4% |
2024 | 2023 | |
Property, plant and equipment and Intangible assets | 618 681 | 594 935 |
Leases | -7 025 | -16 008 |
Derivatives | 5 554 | 713 |
Other current assets and -liabilitites | -7 364 | -7 896 |
Group contributions | 0 | -20 376 |
Tax losses carried forward | 0 | -66 077 |
Interest reductions carried forward | -99 509 | -66 859 |
Net deferred tax liability/(asset) | 510 337 | 418 432 |
| Presentation in the statement of Financial Position | ||
Deferred tax asset | - | - |
Deferred tax liability | 510 337 | 418 432 |
Net deferred tax | 510 337 | 418 432 |
NOK'000 | 2024 | 2023 |
Net deferred tax liability as at 1 January | 418 432 | 340 499 |
Recognised in statement of income | 6 537 | 53 798 |
Recognised in other comprehensive income | -2 788 | -1 015 |
Hybrid-bond loan | -24 963 | -29 864 |
Group contributions | 71 275 | 54 182 |
Acquisitions | 41 386 | 0 |
Other items including foreign currency effects | 458 | 832 |
Net deferred tax liability as at 31 December | 510 337 | 418 432 |
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133133 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
Material upgrades, replacements, retrofit and other measures are capitalised as additions after initial recognition.
In the case of replacements any residual value of the existing component is taken to profit or loss at time of the
replacements. Other repairs and maintenance are recognised as expenses.
USEFUL LIVES
Estimated useful lives for group of assets:
•
Vessels: 15–35 years
•
Property: 20–30 years
•
Equipment: 4–15 years
In June 2024 the Group obtained control of the previously associated company ONS Ship Finance (and subsidiaries).
As a result, an addition of NOK 1 080 million has been recognised. For further information see note 28 Acquisitions.
| Assets under | |||||
NOK'000 | Vessels | Property | Equipment | development | Total |
| Acquisition cost: | |||||
As at 1 January 2024 | 8 737 420 | 1 453 116 | 412 514 | 26 944 | 10 629 994 |
Additions and transfers | 231 719 | 36 407 | 53 824 | -26 944 | 295 006 |
Acquisition of a subsididary | 1 080 307 | 0 | 1 080 307 | ||
Disposals | 0 | -10 204 | -19 109 | 0 | -29 313 |
Foreign currency translation | 0 | 23 296 | 4 872 | 0 | 28 168 |
As at 31 December 2024 | 10 049 446 | 1 502 615 | 452 101 | 0 | 12 004 162 |
| Accumulated depreciation and impairment: | |||||
As at 1 January 2024 | 4 371 847 | 1 074 877 | 333 798 | 0 | 5 780 522 |
Depreciation for the period | 400 253 | 43 538 | 19 556 | 0 | 463 347 |
Disposals | 0 | -9 218 | -18 381 | 0 | -27 599 |
Foreign currency translation | 0 | 10 490 | 3 991 | 0 | 14 481 |
As at 31 December 2024 | 4 772 100 | 1 119 687 | 338 964 | 0 | 6 230 751 |
Carrying amount as at 31 December 2024 | 5 277 346 | 382 928 | 113 137 | 0 | 5 773 411 |
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134134 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
| Assets under | |||||
NOK'000 | Vessels | Property | Equipment | development | Total |
| Acquisition cost: | |||||
As at 1 January 2023 | 8 574 569 | 1 394 766 | 386 797 | 29 799 | 10 385 931 |
Additions and transfers | 197 835 | 29 651 | 20 985 | -2 855 | 245 616 |
Disposals | -34 984 | 0 | -1 524 | 0 | -36 508 |
Foreign currency translation | 0 | 28 699 | 6 256 | 0 | 34 955 |
As at 31 December 2023 | 8 737 420 | 1 453 116 | 412 514 | 26 944 | 10 629 994 |
| Accumulated depreciation and impairment: | |||||
As at 1 January 2023 | 4 037 012 | 1 011 304 | 311 939 | 0 | 5 360 255 |
Depreciation for the period | 368 318 | 44 202 | 16 896 | 0 | 429 416 |
Disposals | -33 483 | 0 | -70 | 0 | -33 553 |
Foreign currency translation | 0 | 19 371 | 5 033 | 0 | 24 404 |
As at 31 December 2023 | 4 371 847 | 1 074 877 | 333 798 | 0 | 5 780 522 |
Carrying amount as at 31 December 2023 | 4 365 573 | 378 239 | 78 716 | 26 944 | 4 849 472 |
NOK'000 | Goodwill | Software | Other rights | Total |
| Acquisition cost: | ||||
As at 1 January 2024 | 667 301 | 835 229 | 4 000 | 1 506 530 |
Additions and transfers | 0 | 2 239 | 0 | 2 239 |
As at 31 December 2024 | 667 301 | 837 468 | 4 000 | 1 508 769 |
| Accumulated depreciation and impairment: | ||||
As at 1 January 2024 | 0 | 512 129 | 0 | 512 129 |
Depreciation for the period | 0 | 42 837 | 0 | 42 837 |
As at 31 December 2024 | 0 | 554 966 | 0 | 554 966 |
Carrying amount as at 31 December 2024 | 667 301 | 282 502 | 4 000 | 953 803 |
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135135 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
NOK'000 | Goodwill | Software | Other rights | Total |
| Acquisition cost: | ||||
As at 1 January 2023 | 667 301 | 799 276 | 4 000 | 1 470 577 |
Additions and transfers | 0 | 35 953 | 35 953 | |
As at 31 December 2023 | 667 301 | 835 229 | 4 000 | 1 506 530 |
| Accumulated depreciation and impairment: | ||||
As at 1 January 2023 | 0 | 471 407 | 0 | 471 407 |
Amortisation for the period | 0 | 40 722 | 0 | 40 722 |
As at 31 December 2023 | 0 | 512 129 | 0 | 512 129 |
Carrying amount as at 31 December 2023 | 667 301 | 323 100 | 4 000 | 994 401 |
NOK'000 | Vessels | Property | Equipment | Total |
As at 1 January 2023 | 612 473 | 274 475 | 36 597 | 923 545 |
Additions | 549 246 | 8 959 | 35 145 | 593 350 |
Depreciation | -58 174 | -25 810 | -25 199 | -109 183 |
As at 31 December 2023 | 1 103 545 | 257 624 | 46 543 | 1 407 712 |
Additions | 0 | 6 | 29 183 | 29 189 |
Depreciation | -21 145 | -26 790 | -28 486 | -76 421 |
Disposals | -1 082 400 | 0 | 0 | -1 082 400 |
As at 31 December 2024 | 0 | 230 840 | 47 240 | 278 080 |
Remaining lease term (years) | 1–17 | 1–4 |
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CARRYING AMOUNT OF LEASE LIABILITIES
NOK'000 | 2024 | 2023 |
As at 1 January | 1 480 477 | 988 120 |
Additions | 29 188 | 593 313 |
Interest on leasing liability | 42 812 | 61 923 |
Lease payments | -115 252 | -162 879 |
Disposals | -1 127 214 | 0 |
As at 31 December | 310 011 | 1 480 477 |
Current lease liability | 60 359 | 159 913 |
Non-current lease liability | 249 652 | 1 320 564 |
MATURITY PROFILE FOR UNDINSCOUNTED CONTRACTUAL CASH FLOWS
NOK'000 | 2024 | 2023 |
Year 1 | 61 883 | 164 156 |
Year 2 | 42 667 | 152 296 |
Year 3 | 36 146 | 136 709 |
Year 4 | 27 878 | 133 908 |
Year 5 | 25 186 | 996 181 |
After 5 years | 218 861 | 243 599 |
Total | 412 621 | 1 826 849 |
NOTE 14 FINANCIAL INSTRUMENTS AND FAIR VALUE
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| Fair value through | Hedge | Total carrying | ||||
NOK'000 | Note | Amortised cost | profit or loss | derivatives | Non-financial | amount |
| As at 31 December 2024 | ||||||
Non-current financial assets | 48 275 | 48 275 | ||||
| Trade and other receivables | 17 | 258 453 | 306 847 | 565 300 | ||
Other current financial assets | 101 323 | 101 323 | ||||
| Cash and cash equivalents | 18 | 961 737 | 961 737 | |||
Total assets | 1 220 190 | 149 598 | 0 | 306 847 | 1 676 635 | |
| As at 31 December 2024 | ||||||
| Non-current interest-bearing debt | 20 | 4 322 927 | 4 322 927 | |||
| Current interest-bearing debt | 20 | 352 000 | 352 000 | |||
| Trade and other payables | 21 | 422 644 | 880 990 | 1 303 634 | ||
Other current financial liabilitites | 0 | 23 937 | 23 937 | |||
Total liabilitites | 5 097 571 | 0 | 23 937 | 880 990 | 6 002 498 |
| Fair value through | Hedge | Total carrying | ||||
NOK'000 | Note | Amortised cost | profit or loss | derivatives | Non-financial | amount |
| As at 31 December 2023 | ||||||
Non-current financial assets | 35 193 | 35 193 | ||||
| Trade and other receivables | 17 | 641 612 | 257 303 | 898 915 | ||
Other current financial assets | 48 322 | 48 322 | ||||
| Cash and cash equivalents | 18 | 358 293 | 358 293 | |||
Total assets | 999 905 | 83 515 | 0 | 257 303 | 1 340 723 | |
| As at 31 December 2023 | ||||||
| Non-current interest-bearing debt | 20 | 3 124 329 | 3 124 329 | |||
| Current interest-bearing debt | 20 | 1 031 000 | 1 031 000 | |||
| Trade and other payables | 21 | 446 590 | 658 551 | 1 105 141 | ||
Other current financial liabilitites | 20 685 | 11 265 | 31 950 | |||
Total liabilitites | 4 601 919 | 20 685 | 11 265 | 658 551 | 5 292 420 |
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138138 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
NOK'000 | 2024 | 2023 |
Interest rate swaps | 48 275 | 35 193 |
Non-current financial assets | 48 275 | 35 193 |
Market-traded shares | 100 415 | 48 322 |
Currency derivatives | 908 | 0 |
Other current financial assets | 101 323 | 48 322 |
Currency derivatives | 0 | 20 685 |
Bunker derivatives | 23 937 | 11 265 |
Other current financial liabilitites | 23 937 | 31 950 |
NOK'000 | Level 1 | Level 2 | Level 3 | Total fair value |
At 31 December 2024 | 0 | |||
Non-current derivative financial instruments – assets | 48 275 | 48 275 | ||
Current financial investments | 100 415 | 100 415 | ||
Current derivative financial instruments – assets | 908 | 908 | ||
Current derivative financial instruments – liabilitites | -23 937 | -23 937 | ||
Net fair value | 100 415 | 25 246 | 0 | 125 661 |
At 31 December 2023 | 0 | |||
Non-current derivative financial instruments – assets | 35 193 | 35 193 | ||
Current financial investments | 48 322 | 48 322 | ||
Current derivative financial instruments – assets | 0 | |||
Current derivative financial instruments – liabilitites | -31 950 | -31 950 | ||
Net fair value | 48 322 | 3 243 | 0 | 51 565 |
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NOTE 15 INVESTMENT IN ASSOCIATES
On 19 June 2024 the Group purchased all the shares in ONS Ship Finance AS, which up until this date was an
associated company measured with use of the equity method. The existing ownership interest (38.6 per cent) was
remeasured at fair value with a resulting gain of NOK 143 509 thousand recognised in the Consolidated statement
of comprehensive income. See note 28 Acquisition for further details on this transaction.
NOK'000 | 2024 | 2023 |
Carrying amount as at 1 January | 109 593 | 271 352 |
Share of net income | 1 727 | 48 032 |
Investment in associate | 9 908 | 0 |
Dividends | 0 | -127 287 |
Remeasurement at fair value | 143 509 | 0 |
Divestment | -258 381 | 0 |
Other | 15 905 | -82 504 |
Carrying amount as at 31 December | 22 261 | 109 593 |
In 2023 The Group adjusted the carrying value of the ownership stake relating to the investment in ONS Ship
Finance AS so that it accords with the relative share of the book equity of the associate company. As a consequence
of Group contributions in previous years there has been a difference between the carrying value of the investment
and the relative share of book equity.
NOTE 16 INVENTORIES
NOK'000 | 2024 | 2023 |
Finished goods | 187 887 | 171 768 |
Bunker oil | 17 647 | 20 592 |
Carbon allowances | 104 309 | 0 |
Inventory | 309 843 | 192 360 |
For amounts of inventory recognised in the Consolidated statement of comprehensive income, see note 06 Direct
cost of consumables and services.
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CARBON ALLOWANCES
Acquired carbon allowances will be held until they are delivered as settlement for own Emissions. Allowances are to
be surrendered in the year after Emissions has taken place, i.e. allowances for 2024 Emissions will be surrendered
in 2025. For further information on the Groups obligation to surrender carbon allowances for the year, see note 21
Trade and other payables. The following table reconciles the number of owned Carbon allowances and their carrying
value:
Number of EUA allowances in thousand | Amount in NOK thousand | |||
NOK'000 | 2024 | 2023 | 2024 | 2023 |
Opening balance at 1 January | 0 | 0 | 0 | 0 |
Purchased allowances | 120 | 0 | 104 309 | 0 |
Settled allowances | 0 | 0 | 0 | 0 |
Closing balance at 31 December | 120 | 0 | 104 309 | 0 |
As at 31 December 2024 The Group has entered into contracts for purchase of EUA allowances with deliveries and
payment in 2025 and 2026 totalling EUR 19.2 million, approx. NOK 227 million.
NOK'000 | 2024 | 2023 |
Trade receivables from contracts with customers | 119 244 | 125 739 |
Provision for bad debts | -4 142 | -4 066 |
Net trade receivables | 115 102 | 121 673 |
Recivable from related party | 143 351 | 519 939 |
Prepaid expenses | 235 346 | 226 209 |
Other current receivables | 71 501 | 31 094 |
Trade and other receivables | 565 300 | 898 915 |
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141141 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
NOK'000 | 2024 | 2023 |
Cash and cash equivalents available | 961 737 | 358 293 |
Restricted cash and cash equivalents | 0 | 0 |
Cash and cash equivavalents | 961 737 | 358 293 |
NOTE 19 EQUITY
HYBRID-BOND
In October 2024 Color Group issued an unsecured perpetual bond loan (COLG20) in the amount of NOK 800 million
with first call date (option for Color Group) after 3.5 years and an agreed coupon of 3 months NIBOR + 400 basis
points. The previous issued unsecured perpetual bond loan (COLG17) has been settled in its entirety in 2024.
As at 31 December 2024 (previous year) the carrying value of the Hybrid-bond is NOK 780 667 thousand (NOK 623
700 thousand) and presented as Other equity components in the Consolidated statement of financial position.
A total interest expense after tax of NOK 84 788 thousand (NOK 101 355 thousand) has been recognised as a
reduction in Total equity. Net issuance/repayments during the year with nominal value of NOK 153 250 thousand
(NOK 173 250 thousand) is recognised as a increase (decrease) in Total equity. Total cash payments for the year
recognised is NOK 731 253 thousand (NOK 305 623 thousand) of which from repurchase of bonds with NOK 630 119
thousand (NOK 189 201 thousand) and NOK 101 134 thousand in interest payments (NOK 116 422 thousand). A total
cash receipt of NOK 780 000 thousand is recognised from the issuance of COLG 20.
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142142 FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
| Weighted average | Carrying amount | Fair value | ||||
| interest rate in % | as at 31 December | as at 31 December | ||||
NOK'000 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Unsecured bond issues | 8.82 | 8.90 | 1 782 908 | 1 614 046 | 1 858 500 | 1 671 958 |
Secured loans | 6.00 | 5.83 | 2 892 019 | 2 541 283 | 2 560 117 | 2 253 482 |
Interest-bearing debt | 4 674 927 | 4 155 329 | 4 418 617 | 3 925 440 | ||
Current interest-bearing debt | 352 000 | 1 031 000 | ||||
Non-current interest-bearing debt | 4 322 927 | 3 124 329 |
NOK'000 | 2024 | 2023 |
NOK | 4 421 966 | 3 879 664 |
EUR | 241 964 | 260 444 |
DKK | 10 997 | 15 221 |
Interest-bearing debt | 4 674 927 | 4 155 329 |
NOK'000 | 2024 | 2023 |
Property, plant and equipment | 5 773 411 | 4 849 472 |
Assets pledged as security as at 31 December | 5 773 411 | 4 849 472 |
NOK'000 | 2024 | 2023 |
Less than one year | 684 721 | 1 325 070 |
1–2 years | 1 565 277 | 517 702 |
2–3 years | 945 939 | 1 397 065 |
3–4 years | 802 875 | 783 568 |
5 years or longer | 1 867 548 | 1 011 924 |
Total | 5 866 360 | 5 035 329 |
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| Other non- | ||||||
NOK'000 | 31 December 2023 | New loans | Repayment | Amortisation | cash effects | 31 December 2024 |
Unsecured bond issues | 1 614 046 | 594 400 | -434 930 | 6 462 | 2 930 | 1 782 908 |
Secured loans | 2 541 283 | 643 350 | -808 383 | 6 180 | 509 589 | 2 892 019 |
Total | 4 155 329 | 1 237 750 | -1 243 313 | 12 642 | 512 519 | 4 674 927 |
| Other non- | ||||||
NOK'000 | 31 December 2022 | New loans | Repayment | Amortisation | cash effects | 31 December 2023 |
Unsecured bond issues | 1 694 386 | 887 400 | -975 325 | 7 585 | 0 | 1 614 046 |
Secured loans | 3 095 166 | 1 134 867 | -1 720 996 | 8 614 | 23 632 | 2 541 283 |
Total | 4 789 552 | 2 022 267 | -2 696 321 | 16 199 | 23 632 | 4 155 329 |
NOK'000 | 2024 | 2023 |
Trade payables | 422 644 | 446 590 |
Prepayments from customers | 334 479 | 308 300 |
Accruals for carbon allowances | 117 454 | 0 |
Owed public taxes | 102 249 | 106 418 |
Other accruals | 326 808 | 243 833 |
Trade and other payables | 1 303 634 | 1 105 141 |
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NOTE 22 IMPAIRMENT TESTING
KEY ASSUMPTIONS
Per cent | 2024 | 2023 |
Discount rate before tax | 10.61 | 9.83 |
Discount rate after tax | 8.83 | 8.15 |
Long-term growth rate | 2.00 | 2.00 |
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NOK'000 | 2024 | 2023 |
Direct cost of consumables and services – other group companies | 11 778 | 10 610 |
Finance income – parent | 24 345 | 32 675 |
Trade and other receivables – parent | 143 030 | 519 939 |
Trade and other receivables – other group companies | 321 | 0 |
Trade and other paybles – other group companies | 814 | 98 |
2024 – NOK'000 | Salary | Bonus | Pension cost | Other | Total |
Olav Nils Sunde (Group CEO Color Group) | 0 | 0 | 0 | 0 | 0 |
Trond Kleivdal (Group CEO Color Line) | 4 875 | 3 048 | 283 | 529 | 8 735 |
Morten Garman (Chairman of the Board) | 650 | 0 | 0 | 0 | 650 |
2023 – NOK'000 | Salary | Bonus | Pension cost | Other | Total |
Olav Nils Sunde (Group CEO Color Group) | 0 | 0 | 0 | 0 | 0 |
Trond Kleivdal (Group CEO Color Line) | 4 641 | 2 891 | 270 | 413 | 8 215 |
Morten Garman (Chairman of the Board) | 200 | 0 | 0 | 0 | 200 |
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NOK'000 | 2024 | 2023 |
Statutory audit | 5 463 | 3 941 |
Other assurance services | 2 137 | 559 |
Tax consultancy | 0 | 12 |
Other non-audit services | 401 | 383 |
Total fee to auditor (exclusive VAT) | 8 001 | 4 895 |
NOTE 25 SEGMENT INFORMATION
The Board of Directors and the Group CEO of Color Group is identified as the Chief operating decision maker, and
is regularly provided with segment information used to make decisions about resource allocation and evaluation of
performance. Color Group have identified one reportable segment:
Cruise and transport – this part of the business operates under the name Color Line and provides international
transport of cargo and passengers together with related service offerings.
All other segments – the column includes head office and group services together with the operation of a hotel in
Skagen (DK). This is not a reportable segment as it is not large enough to require separate reporting.
To evaluate performance of the operating segments a measure of adjusted earnings before interest, tax,
depreciation and amortization (Adjusted EBTIDA) is used (Segment profit). Segment profit excludes significant items
of income or expenditures which might have an impact on the quality of earnings such as gains of a special nature or
restructuring expense. Furter the profit measure includes operational leases expense.
Tax, depreciation and amortisation together with assets and liabilities are not allocated to the segments but provided
to the chief decision maker on a consolidated level. Finance income and Finance cost are not allocated to segments,
because financing and cash management activities are the responsibility of the Group’s central treasury function.
| NOK'000 | Cruise and | All other | |
| The year ended 31 December 2024 | transport | segments | Total |
Revenue from contracts with customers | 6 557 410 | 66 857 | 6 624 267 |
Other operating income | 14 623 | 0 | 14 623 |
Segment income | 6 572 033 | 66 857 | 6 638 890 |
Direct cost of consumables and services | -2 383 723 | -15 505 | -2 399 228 |
Personell expenses | -1 718 623 | -38 226 | -1 756 849 |
Other operating expenses | -1 158 394 | -25 993 | -1 184 387 |
Segment profit | 1 311 293 | -12 867 | 1 298 426 |
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| NOK'000 | Cruise and | All other | |
| The year ended 31 December 2023 | transport | segments | Total |
Revenue from contracts with customers | 6 180 701 | 66 256 | 6 246 957 |
Other operating income | 58 986 | 0 | 58 986 |
Segment income | 6 239 687 | 66 256 | 6 305 943 |
Direct cost of consumables and services | -2 175 651 | -15 054 | -2 190 705 |
Personell expenses | -1 594 694 | -36 418 | -1 631 112 |
Other operating expenses | -1 109 358 | -22 056 | -1 131 414 |
Segment profit | 1 359 984 | -7 272 | 1 352 712 |
Segment income reconciles to Total operating income as follows:
NOK'000 | 2024 | 2023 |
Segment income | 6 638 890 | 6 305 943 |
Gain on derecognition of lease agreement | 44 814 | 0 |
Total operating income | 6 683 704 | 6 305 943 |
Segment profit reconciles to Profit before tax as follows:
NOK'000 | 2024 | 2023 |
Segment profit | 1 298 426 | 1 352 712 |
Gain on derecognition of lease agreement | 44 814 | 0 |
Adjustment for leases | 48 333 | 46 769 |
Other adjustments | -881 | -942 |
Depreciation and amortisation | -582 605 | -579 321 |
Gain on purchase of subsidiary | 143 509 | 0 |
Finance income | 93 533 | 102 202 |
Finance costs | -435 280 | -466 170 |
Profit before tax | 609 849 | 455 250 |
| Ownership share | Ownership share | ||
Company name | Country | 31 Dec 2024 | 31 Dec 2023 |
Color Group AS | Norway | Parent | Parent |
Color Line AS | Norway | 100 | 100 |
Color Hotels AS | Norway | 100 | 100 |
Color Line Cruises AS | Norway | 100 | 100 |
Color Line Transport AS | Norway | 100 | 100 |
Color Line Crew AS | Norway | 100 | 100 |
Color Line Marine AS | Norway | 100 | 100 |
Color Marine Verksted AS | Norway | 100 | 100 |
Bergen Line AS | Norway | 100 | 100 |
Norway Line AS | Norway | 100 | 100 |
Color Scandi Line AS | Norway | 100 | 100 |
Scandi Line AS | Norway | 100 | 100 |
Terminalbygget AS | Norway | 100 | 100 |
Larvik Line AS | Norway | 100 | 100 |
Kristiansand Line AS | Norway | 100 | 100 |
Color Hotel Skagen AS | Denmark | 100 | 100 |
Color Line Danmark AS | Denmark | 100 | 100 |
Hirtshals Skipsproviantering AS | Denmark | 100 | 100 |
Color Line GmbH | Germany | 100 | 100 |
ONS Ship Finance AS | Norway | 100 | 38.6 |
Oslo Line AS | Norway | 100 | 38.6 |
ONS Ship Invest I AS | Norway | 100 | 38.6 |
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NOTE 27 DEFINITIONS
The values of debt and liquidity are shown as measures of the financial strength of the Group and all the alternative
performance measures are used consistently over time. Any changes in the definitions of the values are also applied
to the comparative figures. All the alternative performance measures used by the Group show historical financial values.
To increase relevance and comparability Color Group uses the following alternative performance measures in
addition to those defined in IFRS:
•
Operating profit before depreciation and amortisation (EBITDA)
•
Net interest-bearing debt
•
Liquid assets
•
Net cash and liquid assets
•
Equity ratio
•
Debt-to-equity ratio
•
Other exceptional items
Operating profit before depreciation and amortisation (EBITDA) is recorded in the income statement on the line
showing “Operating profit before depreciation and amortisation”. Reconciliation of the performance measure is
shown in the income statement.
Net interest-bearing debt is defined as total interest-bearing debt to credit institutions and bond loans (excluding
Hybrid bond debt) less Liquid assets. The calculation is shown in note 03 Financial risk.
Liquid assets are defined as holdings of cash and bank deposits at balance sheet date, short-term investments in
liquid securities with maturities of less than three months as well as unused drawing rights granted by financial
institutions. The calculation is shown in 03 Financial risk.
Net cash and liquid assets consist of cash and bank deposits less drawings on bank overdrafts, as well as market-
traded shares. The calculation is shown in 03 Financial risk.
Equity ratio is defined as the Group’s book equity on balance sheet date divided by the balance sheet total. The
value is expressed as a percentage. Equity and the balance sheet total are shown in the balance sheet.
Debt-to-equity ratio is calculated as net debt divided by book equity. The calculation is shown in 03 Financial risk.
NOTE 28 ACQUISITIONS
On 19 June 2024, the Group obtained control of the associated company ONS Ship Finance (and subsidiaries),
referred to in the following as ONS Ship Finance. The transaction proceeded by means of the purchase of 61.4 per
cent of the shares of the company from O.N. Sunde, which controls Color Group. Prior to the transaction the Group
owned a 38.6 per cent interest. The transaction has been recognised as a step acquisition where the existing
ownership interest was recognised at fair value with a gain in the income statement together with the purchase of
the shares at cost.
Color Group has offset NOK 411 million in existing claims on O.N. Sunde in exchange for 61.4 per cent of the shares of
ONS Ship Finance. The fair value of the existing ownership interest was NOK 258 million, making for a total fair value
of the sum paid for the net ownership of NOK 669 million. As part of the transaction, ownership was acquired of
NOK 139 million in bank deposits, this being reported in the statement of Cash flows in the accounting item Net cash
flow from investing activities.
For the purposes of initial recognition, the purchase price has been measured at the fair value of net identifiable
assets. The cost of the group of assets are allocated to the individual identifiable assets and liabilities on the basis
of their relative fair values at the date of purchase. The transaction does not meet IFRS definitions of a business
combination and is recognised as a purchase of a group of asset. As a consequence, no deferred tax liability relating
to the value of the Vessel has been recognised. Other tax positions have been recognised. The following net assets
are recognised in the transaction:
| NOK'000 | |
Property, plant and equipment (Vessels) | 1 080 307 |
Trade and other receivables | 2 510 |
Cash and cash equivalents | 139 427 |
Deferred tax liability | -41 386 |
Current interest-bearing debt | -497 515 |
Income tax payable | -3 909 |
Trade and other payables | -10 052 |
Net identifiable assets | 669 382 |
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From the point at which control was obtained the previous charter agreement for leasing the M/S SuperSpeed 2
ceased to apply. The Right of use asset and the associated lease obligation in the amounts of NOK 1 081 million
and NOK 1 126 million respectively where derecognized in the Consolidated statement of financial position. In the
transaction a gain of NOK 45 million has been reported in the income statement before tax in the accounting item
Operating revenues.
NOTE 29 EVENTS AFTER THE BALANCE SHEET DATE
There has not been any events after the reporting date which could significantly affect these consolidated financial
statements.
In January 2025 the unsecured perpetual bond COLG20 was listed on the Oslo Stock Exchange.
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PARENT COMPANY FINANCIAL STATEMENTS
Income statement
152
Balance sheet
153
Cash flow statement
154
Notes to the financial statements
155
Note 01 General information
155
Note 02 Accounting policies
155
Note 03 Financial risk and capital management
156
Note 04 Revenue
157
Note 05 Payroll expenses
157
Note 06 Other operating expenses
158
Note 07 Net financial items
158
Note 08 Tax
159
Note 09 Subsidiaries
160
Note 10 Related parties
160
Note 11 Financial instruments
161
Note 12 Inventories
161
Note 13 Trade and other receivables
162
Note 14 Cash and cash equivalents
162
Note 15 Equity
162
Note 16 Interest-bearing debt
163
Note 17 Events after the balance sheet date
164
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Income statement
NOK'000 Note 2024 2023
Revenue 4 194 340 184 064
Payroll expenses
5 -5 012 -4 733
Depreciation -192 0
Other operating expenses
6 -15 293 -12 394
Total operating expenses -20 497 -17 127
Operating profit 173 843 166 937
Income from subsidiaries 267 498 195 218
Income from other investments 2 377 2 399
Interest received from group companies 231 205 245 535
Other financial income 32 456 18 726
Change in value of financial instruments 13 082 -9 506
Interest expense on borrowings -460 879 -472 055
Other financial expense -25 359 -28 255
Net financial items
7 60 380 -47 938
Pre-tax profit (loss) 234 223 118 999
Tax cost
8 -54 354 6 974
Net profit (loss) 179 869 125 973
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Balance sheet
NOK'000 Note 2024 2023
Non-current assets
Intangible assets 4 000 4 000
Deferred tax asset
8 45 546 36 996
Equipment 673 0
Shares in subsidiaries
9 4 014 345 4 014 345
Loans to group companies
10 2 212 844 1 771 515
Non-current financial assets
11 48 275 35 193
Other non-current assets 23 361 26 588
Total non-current assets 6 349 044 5 888 637
Current assets
Inventories
12 104 309 0
Other receivables
13 410 955 807 965
Current financial assets
11 101 323 48 323
Bank deposits and cash
14 775 877 224 641
Total current assets 1 392 464 1 080 929
Total assets 7 741 508 6 969 566
NOK'000 Note 2024 2023
Equity
Share capital 143 600 143 600
Share premium 1 478 436 1 478 436
Other equity 507 389 477 520
Total equity
15 2 129 425 2 099 556
Non-current liabilitites
Liabilities to financial institutions
16 2 881 022 2 526 062
Bonds
16 2 563 575 2 237 746
Total non-current liabilitites 5 444 597 4 763 808
Current liabilitites
Trade and other payables 80 646 45 963
Tax payable
8 62 903 28 289
Current financial liabilitites
11 23 937 31 950
Total current liabilitites 167 486 106 202
Total equity and liabilitites 7 741 508 6 969 566
Oslo, 8 April 2025
The Board of Directors of Color Group AS
Document signed electronically
Morten Garman
Chairman
Olav Nils Sunde
Director and CEO
Camilla Sunde
Director
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Cash flow statement
NOK'000 Note 2024 2023
Pre-tax profit (loss) 234 223 118 999
Adjustments to reconcile profit before tax to net cash flow:
Depreciation 192 0
Finance income -546 618 -459 479
Finance cost 486 238 499 413
Other adjustments 3 567 -542
Change in operating assets and liabilitites, net of effects presented
as investing or finance cash flows:
Inventory -104 309 0
Trade and other receivables -238 22 331
Trade and other payables 10 029 -2 097
Cash generated from operations 83 084 178 625
Interest received 239 316 264 261
Interest paid -418 254 -416 561
Net cashflow from market based shares -49 549 -17 913
Income tax paid -28 289 0
Net cash flows from operating activities -173 692 8 412
NOK'000 Note 2024 2023
Dividends/ group contributions from subsidiaries 195 218 0
Payments for other investments -11 008 0
Net cash flows from investing activitites 184 210 0
Proceeds from borrowings
16 2 017 750 2 022 267
Repayment of borrowings
16 -1 370 263 -2 236 881
Received group contributions 92 619 1 357
Payment of dividend -150 000 0
Proceeds from other receivables -49 388 148 452
Net cash flows from Financing activitites 540 718 -64 805
Net change in cash and cash equivalents 551 236 -56 393
Cash and cash equivalents at the beginning of period 224 641 281 034
Cash and cash equivalents at the end of period 775 877 224 641
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Notes to the financial statements
NOTE 01 GENERAL INFORMATION
Color Group AS (“the Company”) is the parent company of the Color
Group which consist of Color Group AS and its subsidiaries. The Company
is a limited company headquartered in Norway at Bryggegata 3, Oslo.
Color Group AS main activities include shareholding in group companies,
financing and financial risk management for the Group. The Company has
corporate bond issues listed on the Oslo Stock Exchange.
The Board approved Color Group’s consolidated financial statements at its
meeting on 8 April 2025.
NOTE 02 ACCOUNTING POLICIES
The financial statements for Color Group AS have been prepared in
accordance with the Norwegian Accounting Act and generally-accepted
accounting practices in Norway.
FOREIGN CURRENCY
Transaction in foreign currencies are translated at the exchange rates
at the time of the transaction. Monetary items in foreign currencies are
translated to Norwegian kroner using the exchange rate applicable on
the balance sheet date. Non-monetary items measured at historical cost
expressed in foreign currencies are converted to Norwegian kroner at
the exchange rates at the time of the transaction. Non-monetary items
measured at fair value expressed in foreign currencies are translated at
the exchange rate applicable on the date of measurement. Exchange rate
fluctuations are recognised in the income statement as they occur under
net financial items.
REVENUES
Revenues are recognised in the Income statement as it is earned.
TAX
Tax cost comprise of taxes payable and change in deferred tax for the
period. Deferred tax is calculated using the applicable tax rate in Norway
on the basis of the temporary differences existing between accounting and
tax values, as well as tax losses carried forward at the end of the reporting
year. Deferred tax asset is recognised in the balance sheet to the extent
it is probable that the company subsequently will have adequate taxable
profit to utilise the tax asset.
CLASSIFIACTION AND VALUATION
OF BALANCE SHEET ITEMS
Current assets and current liabilities include items that come due for
payment within one year of the balance sheet date, as well as items
relating to the circulation of goods. Other items are classified as
non-current assets/non-current liabilities.
Current assets are measured at the lower of cost and fair value. Current
liabilities are reported in the balance sheet at nominal value at the date
they are incurred. Fixed assets are valued at original cost less depreciation
and write-downs. Non-current liabilities are reported in the balance sheet
at nominal value at the date they are incurred.
SUBSIDIARIES
Investment in subsidiary companies is measured using the cost method.
The investment is valued at the cost of acquiring the shares less any
subsequent impairment. Impairment of such items are recognised when a
decrease in fair value cannot be temporary. Impairment is reversed if the
basis of the impairment no longer applies.
Dividends and group contributions from subsidiaries are taken to income
in the same year as the provision is made in the subsidiary. Dividend and
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group contributions from subsidiaries which exceeds retained earnings over
the period of ownership is considered as repayments of the acquisition cost.
PENSIONS
The Company has a defined contribution pension scheme for all employees.
The contributions are recognised in the Income statement as they incur.
BORROWING COSTS
Borrowing costs attributable to the raising of new debt are charged to
debt in the balance sheet and amortised over the term of the loan. Other
borrowing costs are recognised in the income statement in the period in
which they are incurred.
DERIVATIVES
Derivatives are recognised in the Company's balance sheet when the
Company becomes a party to the contractual conditions applicable to the
instrument. Derivatives are initially recognised in the balance sheet at fair
value on the day the contract is concluded and thereafter measured at
fair value at each balance sheet date with the change recognised in Net
financial items.
MARKET-TRADED SHARES
Investment in market-traded shares are initially recognised in the balance
sheet at cost and thereafter measured at fair value at each balance sheet
date with the change recognised in Net financial items.
CASH FLOW STATEMENT
The Cash Flow Statement has been prepared on the basis of the indirect
method. Cash and cash equivalents consist of bank deposits.
NOTE 03 FINANCIAL RISK AND CAPITAL MANAGEMENT
GENERAL INFORMATION
The Company is primarily exposed to market risk and liquidity risk. The
management of such risks do not differ from Group as described in the
Group consolidated financial statements note 03 Financial risk and capital
management.
The main financial risks borne by the Company are related to foreign
currency, interest rates and liquidity risk/refinancing risk. The Company
monitors the individual areas on an ongoing basis to ascertain possible
current and future risk.
The Company makes use of financial derivatives to manage risk on behalf
of subsidiaries in the Group (currency and bunker fuel). The subsidiary
companies bear all the financial effects from these derivatives.
MARKET RISK
Currency risk
The Company has primarily exposure for changes in the exchange rate
between EUR and NOK related to a EUR nominated loan. A change in the
exchange of EUR against NOK of +/- 10 per cent would affect Pre-tax profit
(loss) with approximately NOK 24 million.
Interest rate risk
The Company’s primary exposure to interest rate risk comes from its loan
portfolio. This risk is partly offset by loans to group companies, interest
rate swaps and cash and cash equivalents.
A change in the interest rate level of +/- 1 per cent would affect Pre-tax
profit (loss) by approximately +/- NOK 10 million.
NOK'000 As at 31 December
Unsecured bond issues 2 600 000
Liabilitites to financial institutions 2 900 424
Interest-bearing debt 5 500 424
Liquid assets 876 292
Loans to group companies 2 212 844
Interest-rate swaps 1 402 424
Net amount 1 008 864
Interest rate sensitivity at +/- 1 percent point change 10 089
LIQUIDITY RISK
Available liquidity as at 31 December 2024 amounts to NOK 1 555 million,
including unused drawing rights.
NOK'000 2024 2023
Cash and cash equivalents 775 877 224 641
Market-traded shares 100 415 48 322
Liquid assets 876 292 272 963
Unused drawing rights 679 000 693 000
Availible liquidity 1 555 292 965 963
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NOTE 04 REVENUE
The Company receives royalty income from subsidiaries. As part of the reorganisation of Color Group, the ferry
business of Color Group ASA was transferred to Color Line AS with effect from 1998. The rights to use names
and trademarks and the use of pre-developed shipping lines, quay rights etc. were not subject to transfer. Royalty
agreements have been concluded between the companies regulating Color Line's use of rights connected with the
ferry business and remuneration for such use.
NOTE 05 PAYROLL EXPENSES
NOK'000 2024 2023
Salaries 4 174 3 628
Payroll tax 519 683
Pension cost 125 150
Other personell expenses 194 272
Personell expenses 5 012 4 733
Number of full time equivalents 2 2
The Company has a defined contribution scheme in place for all employees, as required by the Act relating to
mandatory occupational pensions. Color Group AS pays contributions to a life assurance company, which manages
the contributions on behalf of the employees.
MANAGEMENT REMUNERATION
2024 – NOK'000 Salary Bonus Pension cost Other Total
Olav Nils Sunde (Group CEO Color Group) 0 0 0 0 0
Morten Garman (Chairman of the Board) 650 0 0 0 650
2023 – NOK'000 Salary Bonus Pension cost Other Total
Olav Nils Sunde (Group CEO Color Group) 0 0 0 0 0
Morten Garman (Chairman of the Board) 200 0 0 0 200
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NOTE 06 OTHER OPERATING EXPENSES
NOK'000 2024 2023
Office and administrative expenses 4 077 3 946
Professional fees 6 301 4 048
Other 4 915 4 399
Other operating expenses 15 293 12 394
AUDITOR REMUNERATION
NOK'000 2024 2023
Statutory audit 2 201 1 512
Other assurance services 1 830 395
Tax consultancy 0 12
Other non-audit services 0 27
Total fee to auditor (exclusive VAT) 4 031 1 946
NOTE 07 NET FINANCIAL ITEMS
FINANCIAL INCOME
Financial income is primarily related to receipts of dividends or group contributions from subsidiary companies
(Income from subsidiaries) and interest income on receivables from group companies (Interest received from group
companies). See note 10 Related parties for further information.
FINANCIAL EXPENSE
Financial expenses are primarily related to interest expenses on liabilities to financial institutions and bonds (Interest
expense on borrowings).
See note 16 Interest-bearing debt for further information.
OTHER FINANCIAL ITEMS
Other components of Net financial items primarily relates to changes in fair value of financial instruments, foreign
exchange gains/losses, share of loss in associate and other financial income/expense.
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NOTE 08 TAX
INCOME TAX EXPENSE
NOK'000 2024 2023
Current period payable income tax 62 903 28 289
Change in deferred tax -8 549 -35 263
Income tax expense 54 354 -6 974
RECONCILIATION OF STATUTORY TAX RATE TO EFFECTIVE TAX RATE
NOK'000 2024 2023
Profit before income tax 234 223 118 999
Calculated income tax at 22% 51 529 26 180
Non taxable dividends/group contributions 0 -33 000
Other permanent differences 2 825 -154
Income tax expense 54 354 -6 974
Effective tax rate 23.2% -5.9%
RECOGNISED DEFERRED TAX LIABILITITY/ (-ASSET)
2024 2023
Property, plant and equipment 40 55
Derivatives 10 620 7 742
Other assets and -liabilitites 2 448 -1 346
Interest reductions carried forward -58 654 -43 448
Net deferred tax liability/(asset) -45 546 -36 996
Presentation in the statement of Financial Position
Deferred tax asset 45 546 36 996
Deferred tax liability - -
Net deferred tax liability/(asset) -45 546 -36 996
CHANGE IN NET DEFERRED TAX LIABILITY
NOK'000 2024 2023
Net deferred tax liability/(asset) as at 1 January -36 996 -22 109
Recognised in statement of income -8 549 -35 263
Group contributions 0 20 376
Net deferred tax liability/(asset) as at 31 December -45 546 -36 996
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NOTE 09 SUBSIDIARIES
Company name Business office
Owner/voting
share %
Carrying amount
as of 31 Dec
Color Line AS Oslo, Norway 100 4 014 245
Color Hotels AS Oslo, Norway 100 100
Total 4 014 345
NOTE 10 RELATED PARTIES
Color Group AS is fully owned by ONS Invest II AS and part of the “ONS Group”. All parties under control of the
parent company O.N. Sunde AS and its owners constitute related parties. Significant transactions and balances with
related parties as at 31 December is presented in the table below:
NOK'000 2024 2023
Income statement
Revenue – royalty subsidiaries 194 340 184 064
Interest received from group companies – O.N. Sunde AS 24 345 32 675
Interest received from group companies – Subsidiaries 206 860 212 782
Balance sheet
Loans to group companies – Subsidiaries 2 212 844 1 771 515
Other receivables – O.N. Sunde AS 143 030 519 939
Other receivables group contributions – companies under control of O.N. Sunde AS 0 92 619
Other receivables group contributions – Subsidiares 267 498 45 218
Other receivables dividends – Subsidiaries 0 150 000
The Company receives royalty from subsidiaries as described in note 04 Revenue, interest on loans to subsidiaries
and receivable amount against the parent company O.N. Sunde AS.
Current year the Company has recognised group contributions totaling NOK 267 498 thousand from subsidiaries.
In 2024 the Company purchased shares in ONS Ship Finance from O.N. Sunde AS for NOK 411 000 thousand with
offset in the receivable amount the Company has against O.N. Sunde AS. These shares where then sold to Color Line
AS for NOK 411 000 thousand by establishing a corresponding interest-bearing receivable.
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NOTE 11 FINANCIAL INSTRUMENTS
The following table presents assets and liabilities measured at fair value in relation to accounts in the Balance sheet.
NOK'000 2024 2023
Interest rate swaps 48 275 35 193
Non-current financial assets 48 275 35 193
Market-traded shares 100 415 48 322
Currency derivatives 908 0
Current financial assets 101 323 48 322
Currency derivatives 0 20 685
Bunker derivatives 23 937 11 265
Current financial liabilitites 23 937 31 950
NOTE 12 INVENTORIES
NOK'000 2024 2023
Carbon allowances 104 309 0
Inventories 104 309 0
The Company acquires carbon allowances as part of their risk management activities on behalf of the Group
companies which is obligated to surrender allowances based on CO
2
emissions (Emissions). These carbon allowances
will be sold to a subsidiary company at cost as these allowances are to be surrendered.
Number of EUA allowances in thousand Amount in NOK thousand
NOK'000 2024 2023 2024 2023
Opening balance at 1 January 0 0 0 0
Purchased allowances 120 0 104 309 0
Sold allowances 0 0 0 0
Closing balance at 31 December 120 0 104 309 0
As at 31 December 31 the Company has entered into contracts for purchase of EUA allowances with deliveries and
payment in 2025 and 2026 totalling EUR 19.2 million, approx. NOK 227 million.
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NOTE 13 TRADE AND OTHER RECEIVABLES
NOK'000 2024 2023
Recivable from related party 143 030 519 939
Dividends and group contributions 267 498 287 837
Other current receivables 426 189
Trade and other receivables 410 955 807 965
See note 10 Related parties for further information on Receivable from related party and Dividends and group
contributions.
NOTE 14 CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of bank deposits less any drawings on bank overdrafts.
NOK'000 2024 2023
Cash and cash equivalents available 775 877 224 641
Restricted cash and cash equivalents 0 0
Cash and cash equivavalents 775 877 224 641
The Company has an undrawn bank overdraft facility of NOK 75 million.
NOTE 15 EQUITY
SHARE CAPITAL
The Share consist of 71 800 000 shares with a nominal value of NOK 2 each, in total NOK 143.6 million. All shares
carry equal rights and are owned by ONS Invest II AS. All the shares of ONS Invest II AS are controlled indirectly by
Director and Group President Olav Nils Sunde and his family.
NOK'000 Share capital Share premium Other equity Total
As at 1 January 2023 143 600 1 478 436 279 305 1 901 341
Net profit (loss) 0 0 125 973 125 973
Received Group contributions 0 0 72 242 72 242
As at 31 December 2023 143 600 1 478 436 477 520 2 099 556
As at 1 January 2024 143 600 1 478 436 477 520 2 099 556
Net profit (loss) 179 869 179 869
Dividends -150 000 -150 000
As at 31 December 2024 143 600 1 478 436 507 389 2 129 425
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NOTE 16 INTEREST-BEARING DEBT
Weighted average
interest rate in %
Carrying amount as at
31 December
Fair value as at
31 December
NOK'000 2024 2023 2024 2023 2024 2023
Bonds 8.79 11.08 2 563 575 2 237 746 2 662 420 2 298 708
Liabilitites to financial institutions 6.01 5.82 2 881 022 2 526 062 2 549 121 2 238 262
Interest-bearing debt 5 444 597 4 763 808 5 211 541 4 536 970
NOK'000 2024 2023
NOK 5 202 633 4 503 364
EUR 241 964 260 444
Interest-bearing debt 5 444 597 4 763 808
Interest rate on all bonds, loans and credit lines are set with NIBOR plus an agreed margin. The weighted average
interest rates above represents NIBOR plus agreed margin as at balance sheet date.
The fair value of bond loans is the market price quoted at year end. The fair value of secured loans is based on an
estimate of any additional expenses for refinancing at year end.
The loan agreements contain covenants related to liquidity, equity and debt-servicing ratio, measured at the Group
level. The Group was in compliance with all commitments at balance sheet date, December 31, 2024. Vessels and
other assets owned by subsidiaries are pledged as security. There is also granted Security on leases of terminal
areas and negative asset pledges on Vessels.
MATURITY PROFILE
The following table presents the undiscounted contractual cash flows (excluding the unsecured perpetual Bond loan
COLG 20, with nominal value of NOK 800 million and interest payments). The Company is not obligated to repay this
loan but pay interest of 3 months NIBOR + 400 basis points as long as the Bond is not called.
NOK'000 2024 2023
Less than one year 679 384 1 318 182
1–2 years 1 558 579 511 165
2–3 years 945 939 1 393 657
3–4 years 802 875 783 568
5 years or longer 1 867 548 1 011 924
Total 5 854 324 5 018 496
For further information on undrawn credit facilities, liquidity and interest rate risk see note 03 Financial risk.
RECONCILIATION OF CASH FLOWS FROM INTEREST-BEARING DEBT
NOK'000
31 December
2023 New loans Repayment Amortisation
Other non-
cash effects
31 December
2024
Unsecured bond issues 2 237 746 1 374 400 -1 065 050 10 179 6 300 2 563 575
Secured loans 2 526 062 643 350 -305 213 5 372 11 451 2 881 022
Interest-bearing debt 4 763 808 2 017 750 -1 370 263 15 551 17 751 5 444 597
NOK'000
31 December
2022 New loans Repayment Amortisation
Other non-
cash effects
31 December
2023
Unsecured bond issues 2 487 104 887 400 -1 164 526 11 492 16 276 2 237 746
Secured loans 2 436 609 1 134 867 -1 072 355 8 614 18 327 2 526 062
Interest-bearing debt 4 923 713 2 022 267 -2 236 881 20 106 34 603 4 763 808
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In April 2024 Color Group issued a unsecured bond loan (COLG19) in the amount of NOK 900 million which matures
in April 2029. In conjunction with this issue the Company partially repurchased bond loan COLG16 (maturity October
2024) in the amount of NOK 294 million.
In October 2024, Color Group increased/refinanced borrowings secured by a first mortgage on M/S SuperSpeed 2.
The new structure amounts to NOK 650 million and has the same covenant structure as other corresponding loans
concluded by the Company. The loan term is five years with an instalment profile of 14 years.
Bond loan COLG16 was redeemed in full (originally NOK 800 million) in the net amount of NOK 432 million on the
maturity date in October 2024.
In October 2024 Color Group issued an unsecured perpetual bond loan (COLG20) in the amount of NOK 800 million
with first call date (option for Color Group) after 3.5 years. In conjunction with this issue the company partially
repurchased perpetual bond loan COLG17 (with first call date in December 2024) in the amount of NOK 276.15
million. Color Group further gave notice to exercise the first call option to redeem all outstanding bonds with regards
to the subordinated perpetual callable hybrid bond issue COLG17, falling due in December 2024. The net-outstanding
amount was NOK 347.6 million.
GUARANTEES
The Company has a frame agreement for the Group on guarantees on tax withholdings of NOK 51 million. In addition,
the Company has furnished other guarantees to the value NOK 60 million, EUR 56 million and DKK 35 million.
NOTE 17 EVENTS AFTER THE BALANCE SHEET DATE
There has not been any events after the reporting date which could significantly affect these financial statements.
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APPENDICES
Report on corporate governance
166
Statement from the Board and CEO
168
Auditor’s report
169
Auditor's limited assurance report
172
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165 AppendicesAppendices
REPORT ON CORPORATE GOVERNANCE
Color Group AS has bonds listed on a regulated market and reports
its policies and practice on corporate governance in accordance
with Section 2-9 of the Norwegian Accounting Act, including appli-
cation of exceptions described in Section 2-9 third paragraph.
REPORTING ON CORPORATE GOVERNANCE
The company's general principles on corporate governance shall
ensure an appropriate distribution of roles between the Company's
owners, Board of Directors and the management of the Group.
This distribution of roles shall ensure that goals and strategies
are set, that the adopted strategies are implemented in practice
and that the profits achieved are measured and followed up. The
principles shall also contribute towards ensuring that the business
of the Company is the subject of satisfactory control procedures.
An appropriate distribution of roles and satisfactory control proce-
dures shall contribute to ensuring the highest possible creation
of value over time, for the benefit of the owners and other stake-
holders.
THE BUSINESS
The objects of the company are to conduct ferry operations, trans-
port operations and other corresponding business as well as to
participate in other companies with similar objects. The risk profile
and goals and strategies of the business are clearly defined and
have been formulated to enable the Company to create value for
the shareholders in a sustainable manner. In this work, account is
taken of economic and social factors as well as factors relating to
the environment, working environment, equality and non-discrimi-
nation, compliance with human rights and counteracting corruption
and bribery.
SUBSCRIBED CAPITAL AND DIVIDENDS
The equity capital of the Group at 31 December 2024 stood at
NOK 2 087 million. Over time, the shareholders of the Company
are to receive a competitive return on their investment through a
combination of dividends and increases in the value of the share.
EQUALITY OF TREATMENT OF SHAREHOLDERS,
AND TRANSACTIONS WITH RELATED PARTIES
Color Group AS has a single class of shares, and all shares carry
equal rights in the Company. The Articles of Association contain
no restrictions on voting rights.
In the event of transactions of a not-immaterial nature between
the company and shareholders, a shareholder’s parent company,
member of the Board of Directors, executive personnel or close
associates of any such parties, the Board will arrange for a valu-
ation to be obtained from an independent third party. Further
information on transactions between related parties is provided
in Note 23 of the consolidated financial statements and Note 10 of
the parent financial statements.
FREELY NEGOTIABLE SHARES
The shares of the Company are not quoted on any stock exchange.
Any transfer of shares is contingent upon the consent of the Board
of Directors of the Company.
THE GENERAL MEETING AND THE
NOMINATION COMMITTEE
The company has a single shareholder and the sections concerning
recommendations for the General Meeting and the Nomination
Committee are for this reason not considered to be relevant to the
Company.
THE CORPORATE ASSEMBLY AND BOARD OF
DIRECTORS, COMPOSITION AND INDEPENDENCE
Provisions on the composition of the Board of Directors are
included in the Articles of Association of the Company. The Board
shall have between three and eight directors. The Board comprises
three directors, one of whom is a woman.
THE WORK OF THE BOARD OF DIRECTORS
The Board has the overarching responsibility for managing the
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Company. The Board monitors and ensures that the Company's
internal control procedures are satisfactory.
The company's Audit Committee is responsible for implementing
these measures and reports to the Board. The areas of focus of the
Audit Committee are:
• financial reporting
• sustainability reporting
• internal control procedures
• risk management
The Audit Committee comprises two members elected by and from
amongst the ranks of the Board of Directors. The members of the
Audit Committee are independent of the Company's day-to-day
management and key business associates.
RISK MANAGEMENT AND INTERNAL
CONTROL PROCEDURES
The Board ensures that the Company has satisfactory internal control
procedures in place in accordance with the provisions applicable to
the business. The Board conducts an annual review of the company's
internal control procedures and monitors the main areas of risk on a
continuous basis. Together with the management of the Company,
the Board has focused on developing the internal control procedures
applicable to the Company's financial reporting, including:
• the control environment
• risk assessment
• control activities
• information and communication
• follow-up
The Board receives periodic reports on the financial and sustain ability
performance of the company and a description of developments in
and the status of the Company's most important individual projects.
REMUNERATION OF THE BOARD OF DIRECTORS
The remuneration of the Board of Directors is described in further
detail in Note 24 of the consolidated financial statements.
REMUNERATION OF EXECUTIVE PERSONNEL
The guidelines for the remuneration of the executive personnel are
described in further detail in Note 24 of the consolidated financial
statements.
INFORMATION AND COMMUNICATION
The company has issued bonds which are listed on Oslo Børs, the
Oslo Stock Exchange. Communication with the financial markets
is based on the principles of openness and equality of treatment
of investors. In order to ensure that the same information is avail-
able to all stakeholders at the same time, the primary channel of
communication of the company is the Oslo Stock Exchange.
Although the company arranges regular meetings for analysts,
investors and employees, all significant new information is first
published on the stock exchange and on our website. The company
will present information in a consistent way irrespective of whether
the news is positive or negative.
The Company’s website (www.colorline.no) contains an up-to-date
financial calendar, financial reports and other information for
investors.
SALE OF THE COMPANY
The Company has a single shareholder, and it has not been
considered necessary to draw up specific guidelines on possible
takeover bids.
THE AUDITOR
The elected auditor of the Company is Deloitte AS. The Company’s
auditor submits the main features of the plan for the audit of the
company to the Audit Committee and reports ongoing and final
status of the audit to the Committee. The auditor shall report all
material matters on which there has been disagreement between
the auditor and the executive management of the Group.
Once a year the auditor presents any weaknesses identified in the
internal control procedures and proposals for improvements to
the Audit Committee and the Board of Directors. At least once a
year the auditor holds meetings with the Audit Committee and the
Board of Directors at which neither the Group President nor any
other member of the executive management team is present.
GUIDELINES FOR EQUALITY AND DIVERSITY
The Company has not established separate guidelines for equality
and diversity in relation to the composition of the Board of
Directors, management and control bodies and any subcommittee
of these (governing bodies). As the Company is owned by a
single shareholder it is considered sufficient to comply with laws
and regulations for equality and diversity in the composition of
governing bodies.
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STATEMENT FROM THE BOARD AND CEO
Pursuant to the Norwegian Securities Trading Act section 5-5 with
pertaining regulations we confirm to the best of our knowledge that:
• the consolidated financial statements for 2024 have been
prepared in accordance with IFRS Accounting Standards as
adopted by the European Union and mandatory for the financial
year commencing on 1 January 2024 or later, and additional
Norwegian disclosure requirements in the Norwegian Accounting
Act, and that
• the parent company financial statements for 2024 have been
prepared in accordance with the Norwegian Accounting Act and
generally accepted accounting practice in Norway, and that
• the information presented in the financial statements provides a
true and fair view of the assets, liabilities, financial position and
results of both the parent company and the Group, and that
• the board of directors’ report gives a true and fair view of the
development, performance, financial position, principal risks and
uncertainties of the parent company and the Group, and that
• the board of directors' report, where required, has been
prepared in accordance with standards for sustainability
reporting established pursuant to Section 2-6 of the Norwegian
Accounting Act, and in accordance with rules established
pursuant to Article 8(4) of the Taxonomy Regulation.
Oslo, 8 April 2025
The Board of Directors of Color Group AS
Document signed electronically
Morten Garman
Chairman
Olav Nils Sunde
Director and CEO
Camilla Sunde
Director
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Deloitte AS
Dronning Eufemias gate 14
Tel: +47 23 27 90 00
Postboks 221
www.deloitte.no
NO
-0103 Oslo, Norway
Deloitte AS and Deloitte Advokatfirma
AS are the Norwegian affiliates of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a
UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent enti
ties. DTTL and
Deloitte
NSE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.
Deloitte Norway conducts business through two legally separate and independent limited liability companies; Deloitte AS,
providing audit,
consulting, financial advisory and risk management services, and Deloitte Advokatfirma AS, providing tax and legal services.
Registrert i Foretaksregisteret
Medlemmer av Den norske Revisorforening
Organisasjonsnummer: 980 211 282
To the General Meeting of Color Group AS
INDEPENDENT AUDITOR’S REPORT
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Color Group AS, which comprise:
• The financial statements of the parent company Color Group AS (the Company), which comprise the balance sheet as at 31 December 2024, the
income statement and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies.
• The consolidated financial statements of Color Group AS and its subsidiaries (the Group), which comprise the statement of financial position as at
31 December 2024, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and
notes to the financial statements, including material accounting policy information.
In our opinion
• the financial statements comply with applicable statutory requirements,
• the financial statements give a true and fair view of the financial position of the Company as at 31 December 2024, and its financial performance
and its cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway, and
• the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2024, and its financial
performance and its cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and the Group as required
Independent auditor’s report
Color Group AS
2
by relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional
Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of Color Group AS for 27 years from the election by the general meeting of the shareholders on 22 April 1998 for the accounting
year 1998 (with a renewed election on 19 June 2024).
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of 2024. These
matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Valuation of intangible assets and vessels
Description of the Key Audit Matter How the matter was addressed in the audit
The carrying amounts of intangible assets and vessels are significant to
the Consolidated Financial Statements. Reference is made to the
statement of financial position and notes 11, 12 and 22 in the
Consolidated Financial Statements where the carrying amounts of
vessels and intangible assets are stated.
Color Group's management tests goodwill, other intangible assets and
vessels for its cruise and transport cash-generating unit for impairment by
calculating the recoverable amounts represented by a value-in-use
determined based on discounted cash flows. In this context,
management estimates the value-in-use of the individual cash-generating
unit. Other intangible assets and vessels are monitored for impairment.
The group's impairment test is an estimate from Color Group's
management. It includes, but is not limited to, assumptions related to
cash flows, discount rate and growth rate in the terminal value, as well as
• We have assessed Color Group’s impairment process and tested
design and implementation of its internal controls, and held
discussions with Color Group’s management.
• We have assessed and challenged management’s judgmental
assessments, including:
o assumptions related to the calculation of the discount rate
o performed a retrospective review to compare the projected cash
flow for previous years with the actual performance
o assumptions related to the cash flows in the model, including:
- the reasonableness of the management’s assumptions
relating to future income and cost levels considering
historical levels
- future investment needs, including estimated necessary
environmental investments in the business
- growth assumptions in the terminal value
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Independent auditor’s report
Color Group AS
3
future investment needs, including necessary environmental investments
in the business. Such estimates are based on management's judgment
and are subject to uncertainty and combined with the intangible assets
and the vessels relative share of the group's total assets, this is a central
aspect of our audit.
• We have engaged Deloitte’s valuation experts to test the
appropriateness of the method, the applied discount rate, as well
as the mathematical integrity of the model used to determine
value in use.
• We have assessed whether the disclosures of these matters in the
Consolidated Financial Statements are in accordance with the
requirements of IFRS.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the Board of Directors’ report and the other
information accompanying the financial statements. The other information comprises information in the annual report, but does not include the financial
statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the information in the Board of Directors’ report nor the
other information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’ report and the other information accompanying
the financial statements. The purpose is to consider if there is material inconsistency between the Board of Directors’ report and the other information
accompanying the financial statements and the financial statements or our knowledge obtained in the audit, or whether the Board of Directors’ report and
the other information accompanying the financial statements otherwise appear to be materially misstated. We are required to report if there is a material
misstatement in the Board of Directors’ report or the other information accompanying the financial statements. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory requirements.
Our statement on the Board of Directors’ report applies correspondingly to the statement on Corporate Governance.
Our statement that the Board of Directors’ report contains the information required by applicable law does not cover the sustainability report, for which a
separate assurance report is issued.
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Color Group AS
4
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give a true and fair view in accordance with the Norwegian
Accounting Act and accounting standards and practices generally accepted in Norway, and for the preparation of the consolidated financial statements of
the Group that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU. Management is responsible for such internal
control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the Group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern. The financial statements of the Company use the going concern basis of accounting insofar as it
is not likely that the enterprise will cease operations. The financial statements of the Group use the going concern basis of accounting unless management
either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. We design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Company’s and the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
• conclude on the appropriateness of management’s use of the going concern basis of accounting, and, based on the audit evidenc e obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s and the Group's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audi tor’s report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company and the Group to
cease to continue as a going concern.
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5
• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves a true and fair view.
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an
opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the financial
statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Color Group AS, we have performed an assurance engagement to obtain reasonable assurance about
whether the financial statements included in the annual report, with the file name 5967007LIEEXZX8PUW90-2024-12-31-en.zip, have been prepared, in all
material respects, in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format
(ESEF Regulation) and regulation pursuant to Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the preparation of
the annual report in XHTML format and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material respects, in com pliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF regulation. This responsibilit y comprises an adequate
process and such internal control as management determines is necessary.
Auditor’s Responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material respects, the financial statements included in the
Independent auditor’s report
Color Group AS
6
annual report have been prepared in compliance with ESEF. We conduct our work in compliance with the International Standard for Assurance
Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of historical financial information”. The standard requires us to plan and
perform procedures to obtain reasonable assurance about whether the financial statements included in the annual report have been prepared in
compliance with the ESEF Regulation.
As part of our work, we have performed procedures to obtain an understanding of the Company’s processes for preparing the financial statements in
compliance with the ESEF Regulation. We examine whether the financial statements are presented in XHTML-format. We evaluate the completeness and
accuracy of the iXBRL tagging of the consolidated financial statements and assess management’s use of judgement. Our procedures include reconciliation
of the iXBRL tagged data with the audited financial statements in human-readable format. We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Oslo, 8 April 2025
Deloitte AS
Mats Nordal
State Authorised Public Accountant
(electronically signed)
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Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour
The firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality
management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Other matter
The comparative information included in the Sustainability Statement was not subject to an assurance engagement. Our conclusion is not modified in
respect of this matter.
Responsibilities for the Sustainability Statement
The Board of Directors and the Managing Director (management) are responsible for designing and implementing a process to identify the information
reported in the Sustainability Statement in accordance with the ESRS and for disclosing this Process in subsection Double materiality assessment of the
Sustainability Statement. This responsibility includes:
• understanding the context in which the Group's activities and business relationships take place and developing an understandi ng of its affected
stakeholders;
• the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities
that affect, or could reasonably be expected to affect, the Group's financial position, financial performance, cash flows, access to finance or cost
of capital over the short-, medium-, or long-term;
• the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by sel ecting and applying
appropriate thresholds; and
• making assumptions that are reasonable in the circumstances.
Management is further responsible for the preparation of the Sustainability Statement, in accordance with the Norwegian Accounting Act section 2-3,
including:
• compliance with the ESRS, and
• preparing the disclosures in subsection EU Taxonomy assessment of the Sustainability Statement, in compliance with the Taxonomy Regulation;
• designing, implementing and maintaining such internal control that management determines is necessary to enable the preparation of the
Sustainability Statement that is free from material misstatement, whether due to fraud or error; and
• the selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are r easonable in the
circumstances.
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Deloitte AS and Deloitte Advokatfirma
AS are the Norwegian affiliates of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a
UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent enti
ties. DTTL and
Deloitte
NSE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.
Deloitte Norway conducts business through two legally separate and independent limited liability companies; Deloitte AS,
providing audit,
consulting, financial advisory and risk management services, and Deloitte Advokatfirma AS, providing tax and legal services.
Registrert i Foretaksregisteret
Medlemmer av Den norske Revisorforening
Organisasjonsnummer: 980 211 282
To the General Meeting of Color Group AS
INDEPENDENT SUSTAINABILITY AUDITOR'S LIMITED ASSURANCE REPORT
Limited assurance conclusion
We have conducted a limited assurance engagement on the consolidated sustainability statement of Color Group AS (the “Group”), included in the
Sustainability section of the Board of Directors’ report (the “Sustainability Statement”), as at 31 December 2024 and for the year then ended.
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the
Sustainability Statement is not prepared, in all material respects, in accordance with the Norwegian Accounting Act section 2-3, including:
• compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the Group to identify the
information reported in the Sustainability Statement (the “Process”) is in accordance with the description set out in subsection Double materiality
assessment, and
• compliance of the disclosures in subsection EU Taxonomy assessment of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the
“Taxonomy Regulation”).
Basis for conclusion
We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance
engagements other than audits or reviews of historical financial information (“ISAE 3000 (Revised)”), issued by the International Auditing and Assurance
Standards Board.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our respon sibilities under this standard
are further described in the Sustainability auditor’s responsibilities section of our report.
Our independence and quality management
We have complied with the independence and other ethical requirements as required by relevant laws and regulations in Norway and the International Code
of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for
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Inherent limitations in preparing the Sustainability Statement
In reporting forward-looking information in accordance with ESRS, management is required to prepare the forward-looking information on the basis of
disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since
anticipated events frequently do not occur as expected.
Sustainability auditor’s responsibilities
Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement is free from
material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influen ce decisions of users taken on the
basis of the Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional
scepticism throughout the engagement.
Our responsibilities in respect of the Sustainability Statement, in relation to the Process, include:
• obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Proc ess, including the
outcome of the Process;
• considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and
• designing and performing procedures to evaluate whether the Process is consistent with the Group's description of its Process set out in
subsection Double materiality assessment.
Our other responsibilities in respect of the Sustainability Statement include:
• identifying where material misstatements are likely to arise, whether due to fraud or error; and
• designing and performing procedures responsive to where material misstatements are likely to arise in the Sustainability Statement. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
Summary of the work performed
A limited assurance engagement involves performing procedures to obtain evidence about the Sustainability Statement. The procedures in a limited
assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of
assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable
assurance engagement been performed.
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The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclo sures where material
misstatements are likely to arise in the Sustainability Statement, whether due to fraud or error.
In conducting our limited assurance engagement, with respect to the Process, we:
• obtained an understanding of the Process by:
o performing inquiries to understand the sources of the information used by management (e.g., stakeholder engagement, business plans and
strategy documents); and
o reviewing selected parts of the Group’s internal documentation of its Process; and
• evaluated whether the evidence obtained from our procedures with respect to the Process implemented by the Group was consistent with the
description of the Process set out in subsection Double materiality assessment.
In conducting our limited assurance engagement, with respect to the Sustainability Statement, we:
• obtained an understanding of the Group's reporting processes relevant to the preparation of its Sustainability Statement by
o obtaining an understanding of the Group's control environment, processes, control activities and information system relevant to the
preparation of the Sustainability Statement, but not for the purpose of providing a conclusion on the effectiveness of the G roup's internal
control
• evaluated whether the information identified by the Process is included in the Sustainability Statement;
• evaluated whether the structure and the presentation of the Sustainability Statement is in accordance with the ESRS;
• performed inquires of relevant personnel and analytical procedures on selected information in the Sustainability Statement;
• performed substantive assurance procedures on selected information in the Sustainability Statement;
• where applicable, compared selected disclosures in the Sustainability Statement with the corresponding disclosures in the financial statements
and other sections of the Board of Directors’ report;
• evaluated selected methods, assumptions and data for developing estimates and forward-looking information;
• obtained an understanding of the Group's process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding
disclosures in the Sustainability Statement;
• evaluated whether information about the identified taxonomy-eligible and taxonomy-aligned economic activities is included in the Sustainability
Statement, and
• performed inquiries of relevant personnel, analytical procedures and substantive procedures on selected taxonomy disclosures included in the
Sustainability Statement.
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Oslo, 8 April 2025
Deloitte AS
Mats Nordal
State Authorised Public Accountant - Sustainability Auditor
(electronically signed)
Color Group Annual Report 2024Color Group Annual Report 2024
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artbox.no
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Color Line AS
Filipstadveien 25 0250 Oslo
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