Environment

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

We are on our way: the carbon intensity for our controlled fleet is now 52% lower than the 2008 reference value.

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

We have passed another significant milestone on our transition journey with the introduction of a ‘Transition Finance Framework’. The initiative is a first in the Nordic region and solidifies our position at the forefront of sustainable finance practices. The Transition Finance Framework has been developed with support from DNB as Transition Finance Advisor. The framework serves as a holistic approach to transition investments, capturing both small and large decarbonization projects that Odfjell intends to invest in. The framework can be used for both bonds and loans and adheres to the latest industry guidelines for use-of-proceeds instruments and transition financing.

Nature risk assessments are a new and emerging approach to evaluating risks associated with biodiversity loss and ecosystem degradation. With the increasing awareness of the interconnectedness of the natural world, it has become clear that human activities have a significant impact on the environment and the services it provides. The Task Force on Nature-related Financial Disclosures (TNFD) has released draft guidelines for conducting nature risk assessments, which aim to provide a framework for businesses and organizations to assess their potential impact on nature and biodiversity. Odfjell has prepared an initial Nature Risk assessment in line with the TNFD Guidelines on page 27-35 of it’s Climate/Nature Risk assessment. The nature risk assessment identifies inherent risk for shipping, and a potential financial impact for shipping.

For more information on our Environment performance please see:

ESG report: Environment Health, Safety & Environmental Policy Climate/Nature Risk assessment