Annual
Report
2023
2
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Wallenius Wilhelmsen – Annual Report 2023
About the report
This is Wallenius Wilhelmsen ASA’s annual report. It is approved by the board of
directors as signed in the Responsibility statement. This report gives an account
of how we create value for our shareholders and other stakeholders along the four
pillars of Principles of Governance, People, Planet and Prosperity.
The report complies with statutory requirements in Norwegian legislation and the
requirements related to the board of directors’ report are fulfilled in various sections
of the report. The report shall act as Wallenius Wilhelmsen’s communication on
progress according to the requirements from UN Global Compact and our reporting
as required by the Norwegian Transparency Act, and has been prepared in accor-
dance with the GRI Standards and SASB Maritime and Road Transport standards.
The sustainability reporting should be read in combination with the GRI index to
get a full overview.
In this report, we also continue to implement the recommendations of the Task
Force on Climate-Related Financial Disclosures, providing our shareholders and
other stakeholders with information on our climate-related risks and opportunities.
The reporting boundaries for the sustainability reporting are challenging given the
complexity of our value chain, joint ownership and operational arrangements. We
strive to report consistently and accurately.
•
Unless otherwise stated, Scope 1 GHG emissions include all owned and
operated vessels and facilities, including ships on long-term and short-
term charter. Direct CO
2
emissions from our road transport service, Keen,
are included for 2022, but not for previous years.
•
Scope 2 emissions are included for owned locations for logistics and
offices.
•
Waste data is reported from owned vessels and facilities under operational
control.
•
Health and safety incident data is reported for our owned vessels and
those on bareboat charter, and land-based facilities under operational
control.
The consolidated financial statements and accompanying notes in this report have
been prepared in accordance with the International Financial Reporting Standards
(IFRS) as adopted by the European Union, effective December 31, 2001.
The scope of the reporting is Wallenius Wilhelmsen’s global operations for the
period January 1 to December 31, 2023.
3Wallenius Wilhelmsen – Annual Report 2023
Contents
About the report 2
Wallenius Wilhelmsen at a glance 4
Leading global transportation and logistics 5
Speeding up the journey to net zero 7
Accelerating change 8
Shaping the future 10
... and the here and now 11
Reprogramming the supply chain 12
The numbers in brief 13
Key figures 14
Corporate structure 15
Board of directors 16
Management team 17
Words from CEO 19
Message from the board 22
Vision and Strategy 23
2023 in brief 25
Financial review 26
Long-term financial targets and dividend policy 30
Shipping segment 31
Logistics segment 33
Government segment 34
Market development and outlook 35
Key risk exposures 37
Events after the balance sheet date 40
Dividend for the financial year 2023 40
Prospects 41
People 42
Health, safety and well-being 43
Human and labor rights 49
Diversity, equity and inclusion 53
Training & development 57
Planet 59
Greenhouse gas emissions (GHG) and climate risk 60
Biodiversity 71
Air quality 74
Waste management 75
Prosperity 77
Innovation 78
Quality of service 84
Sustainable consumption 87
Sustainable supply chain 88
Tax practices 90
Sustainable finance 91
Principles of governance 93
Implementation and reporting on corporate
governance 94
The business 96
Equity and dividend 99
Equal treatment of shareholders 100
Freely negotiable shares 100
General meeting 101
Nomination committee 102
Board of directors – composition and independence 103
Board responsibility and work 104
Remuneration of the board of directors 106
Risk management and internal control 107
Salary and other remuneration for executive
personnel 109
Information and communication 110
Takeovers 111
Auditor 111
Financial statements 112
Sustainability statements 217
Sustainability Performance Data 218
EU Taxonomy reporting 223
GRI Index 230
SASB Index 244
TCFD Index 245
Responsibility statement 246
Auditor’s report 250
Wallenius Wilhelmsen
at a glance
Wallenius Wilhelmsen is the global leader in integrated vehicle
transportation and logistics, supporting our customers across their
supply chain, all the way from the factory to the end-consumer.
Our ambition is to lead the way in transforming shipping and logis-
tics. With 9,500+ employees, with 81 nationalities working in 28
different countries, we aim to consistently be customers’ preferred
integrated logistics partner. Together, we are building resilient,
connected, data-driven, decarbonized solutions fit for the future.
Contents →
5
Wallenius Wilhelmsen at a glance
Leading global transportation and logistics
Contents →
Wallenius Wilhelmsen – Annual Report 2023
Leading global
transportation and
logistics
We provide a comprehensive land-based logistics network through eight terminals,
11 inland distribution networks and more than 66 service and processing centers
located around the world. In addition, we work in-house at many manufacturers’
plants preparing vehicles for the end consumers.
At sea, we have more than 125 vessels on 15 trade routes, serving six continents. The
RoRo vessels in our fleet typically have a higher than average number of hoistable
decks and a stronger ramp capacity than our rivals. This provides enhanced flex-
ibility allowing us to carry multiplex cargo answering the needs of a variety of
customers. By fleet size, we are the world’s largest operator of pure car and truck
carriers (PCTCs).
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Wallenius Wilhelmsen at a glance
Leading global transportation and logistics
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Wallenius Wilhelmsen – Annual Report 2023
We partner with global original equipment manufacturers in the automotive segment,
as well as the leading manufacturers of high & heavy equipment for construction,
agriculture and mining.
Following the upheaval of the pandemic, the market has recovered. Consumer
demand grew, propelling the company to its strongest performance ever. The 2023
results stem from a general worldwide increase in car sales, due in part to rising
demand for electric vehicles. In addition, there was growth in the high and heavy
market. This triggered a corresponding surge for shipping and logistics services.
All this unfolds within a market where vessel capacity is nearly maxed out.
Our company was initially created in 1999 as a result of the merger between Sweden’s
Wallenius Lines and Norway’s Wilhelmsen Lines which created Wallenius Wilhelm-
sen Lines. In 2017 this became Wallenius Wilhelmsen ASA and listed on the Oslo
Stock Exchange, incorporating both EUKOR and ARC.
Benefiting from over 160 years of heritage and history, Wallenius Wilhelmsen includes
EUKOR, ARC, Armacup and Keen, and today has operations in three key segments:
Shipping services, logistics services and government services. Our head office is
located in Oslo, Norway.
You can read more about our different
segments and their performance in 2023 here
7
Wallenius Wilhelmsen at a glance
Speeding up the journey to net zero
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Wallenius Wilhelmsen – Annual Report 2023
Speeding up the
journey to net zero
International shipping exists because of global trade and our industry is responsi-
ble for carrying approximately 90 percent of all goods. While shipping emits much
less carbon than air and land-based transportation, the industry still contributes to
climate change. Shipping constitutes around 3 percent of all CO
2
emissions globally.
At Wallenius Wilhelmsen, we are transparent about our emissions and our actions
to consistently and systematically reduce them. Despite our significant global land-
based logistics footprint, around 99 percent of our carbon emissions come from the
shipping segment with its 125 vessels. We are committed to our previously estab-
lished carbon intensity reduction target (27.5 percent by 2030), however we began
revising our climate ambitions in the first half of 2023. Reflecting the increasing
urgency and rapid market and regulatory developments, we set about assessing
alternative trajectories and their implications.
The result is that Wallenius Wilhelmsen has committed to be net zero by 2040 and
will align our target to the Science Based Targets Initiative.
Learn more about our emission footprint, existing reduction performance and the
formulation of our net zero 2040 transition plan in the Planet section of the report
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Wallenius Wilhelmsen at a glance
Accelerating change
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Wallenius Wilhelmsen – Annual Report 2023
Accelerating change
Building on the impressive progress our cross-functional team made to bring
the Orcelle Wind project forward, we created the Orcelle Accelerator task force in
2023. Made up of subject matter experts from our commercial, sustainability, legal,
shipping and logistics units, the team reports directly to the CEO. Their task, as
the name would suggest, is to speed up the assessment, trialing and integration
of new solutions which contribute to our decarbonization journey. In the first year,
again, true to their name, they have not been wasting any time. Here are just some
of their key achievements.
Launched the reduced carbon service
In a short space of time the team has taken the reduced carbon service from a
concept directly into customer contracts. The reduced carbon service offers lower
Scope 3 emissions to our customers by using a mass balance system to allocate
the emission benefits of biofuels, compared to conventional fuels. At the end of
2023, we began issuing our first emission avoidance declarations to customers.
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Wallenius Wilhelmsen at a glance
Accelerating change
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Wallenius Wilhelmsen – Annual Report 2023
Helped set our new pathway towards net zero
Building a detailed emission model for both our shipping and logistics segments
helped illustrate just what would be required from Wallenius Wilhelmsen to reach
net zero utilizing different timeframes. With a new target set, the task force is work-
ing across our organization to coordinate a multi-faceted approach to reaching
net zero by 2040.
Securing the next generation of fuels
Signing our first biofuel supply contract with Exxon Mobil in June 2023, the drop-in
fuel can be used in existing engines without any modification or tank cleaning. It
has proved a considerable success with customers increasingly looking to reduce
their Scope 3 CO
2
emissions and demand is expected to consistently grow in 2024.
In addition to securing biofuel, the Orcelle Accelerator task force began the process
of securing green methanol for the arrival of the new Shaper Class vessels expected
to be on water in 2026-27.
“2023 was a fantastic first year for the Orcelle Accelerator team. Without ques-
tion, the biggest success factor was the cooperation with the wider organiza-
tion. The positivity and drive to make our decarbonization strategy happen has
been outstanding throughout the organization. And this is what it takes, we in
the Orcelle team can support and facilitate, but for us to take the next steps we
need to work together and drive the changes as one.”
Jon Tarjei Kråkenes
Head of Orcelle Accelerator
You can read more about our new vessels on the following pages and find details about our net zero targets,
reduced carbon service and the progress of Orcelle Wind here in the Planet and Prosperity sections of the report.
10
Wallenius Wilhelmsen at a glance
Shaping the future
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Wallenius Wilhelmsen – Annual Report 2023
Shaping the future
Our new Shaper Class vessels are arguably the most eye-catching of the solutions
we are utilizing on our journey towards net zero by 2040. Announcing the construc-
tion of four next-generation pure car and truck carrier vessels (and options for up to
eight additional vessels) back in August 2023, the 9,300 CEU class methanol dual
fuel vessels will also be ammonia ready.
Along with support from our forward-leaning customers, these new vessels will
play a starring role in one of Wallenius Wilhelmsen’s key strategic goals “Introduce
a net zero emissions end-to-end service by 2027.” If running on green methanol
for example, emissions can be reduced by almost 95 percent compared to vessels
running on conventional fuel. The first vessels will start being delivered from the
second half of 2026.
“To secure our number-one position, we will continue to deliver great services
with a competitive fleet, offering sustainable supply chain services both on land
and at sea. We are already partnering with our customers on reducing emissions
through biofuel and with the new vessels, we can accelerate this towards net
zero. This requires new and more expensive fuels but both we and our customers
are committed to securing this as soon as it can be made available.”
Xavier Leroi
EVP & COO Shipping Services
Keep track of the construction of our new
Shaper class vessels at walleniuswilhelmsen.com
11
Wallenius Wilhelmsen at a glance
... and the here and now
Contents →
Wallenius Wilhelmsen – Annual Report 2023
... and the here and now
Less eye-catching than our new vessels but equally as important, our technical
and operational teams have been trialing and implementing a wide range of energy
efficiency solutions that directly contribute to reducing our fleet’s emissions. This
ranges from further improved vessel allocation plan-
ning and port arrival scheduling, AI-based voyage
optimization at sea, as well as other operational
improvements that vessels’ crew can control. In
addition, we have a large technical upgrade program
going on across the fleet, from further optimiz-
ing engine performance, proactive hull cleaning,
bulbous bow retrofits, and more.
As a result of our energy efficiency efforts, during
2023 we have seen a reduction of fuel consump-
tion and carbon intensity, with improved main KPIs
such as the fleet average EEOI, CII and consump-
tion per nautical mile. These initiatives are having
a greater impact now than ever before, and we are
still in a scale-up phase with further improvements
and upgrades planned to come into effect in 2024
and beyond.
“Reflecting on 2023, our voyage towards enhancing energy efficiency and emission
reduction across the fleet reached new heights. It was marked by some ground-
breaking initiatives and significant milestones – from AI-driven optimizations to
innovative retrofits and strategic collaborations. Through these initiatives, we are
paving the way for a more sustainable future. Looking ahead, we are commit-
ted to further advancing these initiatives, extending the upgrades portfolio and
efforts to more vessels, embracing new cutting-edge technologies, and forging
new partnerships towards decarbonized maritime operations and supply chains.”
Adam Larsson
Senior Manager Energy Efficiency & Performance
You can read more about the various energy efficiency solutions we are
using to help reduce vessel emissions in the Planet section of this report
12
Wallenius Wilhelmsen at a glance
Reprogramming the supply chain
Contents →
Wallenius Wilhelmsen – Annual Report 2023
Reprogramming
the supply chain
In 2023, we continued to enhance the organization with the right tools, systems,
structure, and talent to be able to move towards another one of our key strategic
goals to “Become the leading supply chain and mobility orchestrator” in the industry.
An important example of this commitment are the
structural and organizational changes we have put
in place which make us able to begin to systemat-
ically connect the entire outbound supply chain
for finished vehicles. Building on the back of the
solid foundations in supply chain management
and digital products from our logistics segment,
we created Digital Supply Chain Solutions (DSCS).
This new business unit will develop an innovative
digital platform architecture connecting the indus-
try’s eco-system of suppliers, OEMs, and third-party
data sources. It has the potential to change finished
vehicle logistics forever and become a unique value
differentiator for our customers.
The new digital platform is expected to go live in 2025 and will form the basis for stan-
dardized offerings in digital applications, supply chain orchestration and advisory
services. So, a busy 2024 will be focused on the development of the new technology
platform and digital applications, carve-in of our current supply chain businesses
and establishing the global organization. This is of course all done in partnership
with existing customers. DSCS will be led by Mikael Björklund, who will take the
position as EVP and COO in May 2024. Mikael has extensive experience with build-
ing digital businesses and organizations, currently as CDO at Polestar. Stay tuned.
“Inefficient information flows are slowing down our customer’s supply chain, this
is the core of what we will develop technology to solve. With digital applications,
best practice process design and leading industry knowledge, we will improve
efficiency in execution and streamline information sharing across the chain for
our customers.”
Christian Holth
SVP, Digital Supply Chain Solutions
13
Wallenius Wilhelmsen at a glance
The numbers in brief
Contents →
Wallenius Wilhelmsen – Annual Report 2023
The numbers in brief
We are pleased to see the further strengthening of Wallenius Wilhelmsen’s financial
position on the back of a very strong year in 2023. We are proud to have delivered
financial ratios that are significantly above our long-term, over-the-cycle financial
targets. Our financial strength enables us to invest in our future, reward sharehold-
ers, and reduce emissions from operations. We anticipate 2024 to be another strong
year, despite a more challenging macro environment and a growing order book that
over time may impact the market balance. Our key focus is to secure long-term
contracts with our customers - covering shipping and logistics services, as well as
decarbonization - that will ensure predictability of cashflows in the coming years.
“Our financial performance has put us in a position where we can pay a record
dividend to our shareholders for 2023. In addition, we propose a new, pay-as-
you-go dividend policy that balances short and long-term considerations, and
which will enable the company to shorten the time between results and payout
of dividends going forward. Our capital allocation strategy carefully balances the
need to invest in our future with the need to reward our shareholders. Further,
it will allow us to act countercyclically in our investment strategy and take steps
to build a more sustainable future.”
Torbjørn Wist
CFO
You can read more about our
financial performance in 2023 here
WAWI
Oslo Stock
Exchange Ticker:
Total
Revenue:
USD million
2022
USD million
2023
EBITDA:
USD million
2022
USD million
2023
14Wallenius Wilhelmsen – Annual Report 2023
Wallenius Wilhelmsen at a glance
Key figures
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Key figures
Key figures consolidated accounts
USD million unless otherwise stated 2023 2022 2021 2020 2019
Income statement
Total revenue 5,149 5,045 3,884 2,958 3,909
Operating profit before depreciation,
amortization and impairment (EBITDA) 1,807 1,548 830 473 805
Operating profit (EBIT) 1,218 931 306 (84) 358
Profit before tax 1,035 829 199 (306) 112
Profit for the period 967 794 177 (302) 102
Balance sheet
Non-current assets 5,951 6,242 6,315 6,391 6,747
Current assets 2,690 2,151 1,479 1,237 1,048
Total assets 8,642 8,394 7,794 7,628 7,796
Equity – parent 3,644 3,153 2,539 2,391 2,678
Equity – non-controlling interests 413 355 266 224 243
Interest-bearing debt 3,713 4,087 4,128 4,081 4,044
Key financial figures
Net cash flow provided by operating activities 1,771 1,297 623 615 749
Liquid funds at December 31 1,705 1,216 710 654 398
Current ratio 1.9 1.8 1.1 1.1 1.0
Key financial targets
Return on capital employed (>8%) 16.1% 12.9% 4.5% -1.3% 5.0%
Leverage ratio (<3.5x) 1.1x 1.9x 4.0x 6.4x 4.4x
Equity ratio (>35%) 47% 42% 36% 34% 37%
Key figures per share
Basic and diluted earnings per share 2.00 1.60 0.32 -0.68 0.22
EBITDA per share 4.27 3.66 1.96 1.12 1.9
Average number of shares outstanding (thousand) 422,692 422,451 422,399 422,360 422,326
Market price at year end (NOK) 89.00 97.05 50.60 23.20 21.82
Market price high (NOK) 103.60 103.00 50.95 28.40 32.05
Market price low (NOK) 60.60 44.86 20.80 7.75 19.38
Dividend paid per share (USD) 0.85 0.15 0.00 0.00 0.12
16Wallenius Wilhelmsen – Annual Report 2023
Wallenius Wilhelmsen at a glance
Board of directors
Contents →
Board of directors
Rune Bjerke
Chair of the board
Extensive career in international energy
and banking corporations.
Previous experience: CEO of DNB, CEO at
Hafslund, CEO at Scancem International,
advisor at the Norwegian Ministry of
Petroleum and Energy, city commissioner
of finance in the city cabinet of Oslo.
Board positions: Norsk Hydro, Schibsted
and Reitan Retail.
Education: Degree in economics, Univer-
sity of Oslo, and Master’s degree in
public administration, Harvard University.
Margareta Alestig
Board member and
Chair of the audit committee
Extensive experience from the financial,
shipping and logistics industries.
Previous experience: CFO at Broström
AB, CFO at JCE Group, Deputy Managing
Director at Sjätte AP-fonden (AP6) and
Swisslog AB.
Board positions: Chair of the Board in Erik
Thun AB and Board member in Inission
AB, Tjörns Sparbank, Svenska Fribrevs-
bolaget and Brännehylte Lagersystem
AB.
Education: MBA degree, University of
Örebro, Sweden.
Thomas Wilhelmsen
Board member
Group CEO at Wilh. Wilhelmsen Holding
ASA since 2010.
Previous experience: Various manage-
ment roles across the Wilhelmsen group,
including group vice president for ship-
ping and regional director for Europe in
Wilhelmsen Ships Service.
Board positions: In addition to holding
directorships in several industry-related
companies and organizations, he sits on
the boards of many Wilhelmsen group
and family-owned companies.
Education: Master of arts in business,
Heriot-Watt University, Scotland. Has
numerous courses from other universi-
ties including the program for executive
leadership from IMD, Switzerland.
Yngvil Eriksson Åsheim
Board member
Extensive career in the maritime industry
and currently CEO of BW LNG.
Previous experience: Various positions at
the classification society DNV and ship-
owner Höegh. Joined BW Group in 2010
and has had different positions covering
different segments.
Board positions: BW Ideol and Naviga-
tor Gas.
Education: Master of Science degree in
marine engineering, the Norwegian Insti-
tute of Technology (NTNU).
Anna Felländer
Board member
One of Sweden’s leading experts on the
effects of digitalization on the economy,
society and businesses. Founder and
president anch.AI, a SaaS governance
platform for responsible AI.
Previous experience: Chief economist at
Swedbank and 10+ years at the Swedish
government in numerous positions.
Education: Master’s degree in macroeco-
nomics, Stockholm School of Economics.
Hans Åkervall
Board member
Extensive experience as lead partner for
a diverse portfolio of large clients across
financing, manufacturing, and logistics.
Previous experience: CEO of KPMG
Sweden, Partner in KPMG.
Board positions: Board member Rederi
AB Soya.
Education: Chartered accountant, bach-
elor’s degree in business and econom-
ics, University of Stockholm.
Note Each of the two largest shareholders, Wilh.Wilhelmsen Holding ASA and Skandinaviska Enskilda Banken AB have in Wallenius Wilhelmsen each nominated one observer
to the board, Christian Berg and Peter Augustsson respectively.
17Wallenius Wilhelmsen – Annual Report 2023
Wallenius Wilhelmsen at a glance
Management team
Contents →
Management team
Lasse Kristoffersen
Chief Executive Officer
In current role since June 2022
Previous experience: 15 years at Torvald Klave-
ness with 11 as CEO. President of the Norwegian
Shipowners’ Association, and a decade at DNV in
various management positions.
Board positions: Vice Chair at DNV Group and
DNV Foundation, Board member in Gard, Chair
of SAYFR AS and of the election committee at the
Norwegian War Risk Insurance Association.
Education: Master of Science degree in naval
architecture and marine engineering from the
Norwegian University of Science and Technology
(NTNU). Completed IMD’s Senior Management
Program and INSEAD’s Executive Management
Program.
Torbjørn Wist
Chief Financial Officer
In current role since October 2020
Previous experience: CFO and senior representa-
tive for Norway in Scandinavian Airlines System
(SAS). Joined SAS from Telenor Group, where he
for 13 years held senior positions in finance and
several board memberships. Earlier, worked 11
years in investment banking in New York and
London for Salomon Brothers, Merrill Lynch and
Greenhill & Co.
Education: Degree in business administration
(Siviløkonom) from the Ivey Business School at
the University of Western Ontario, Canada.
Pia Synnerman
Chief Customer Officer
In current role since January 2023
Previous experience: Has for 27 years had various
leadership roles at Ericsson with 20 years in the
sales and commercial area working in Sweden,
Middle East, Russia, and South Africa. Joined
Wallenius Wilhelmsen in 2021 as SVP Sales to
EMEA.
Education:Master of Science degree in mechani-
cal engineering from KTH Royal Institute of Tech-
nology, Stockholm, and executive programs at
INSEAD Business School, Thunderbird School
of Global Management and London Business
School.
Wenche Agerup
Chief People and Corporate Affairs Officer
In current role since November 2022
Previous experience: Various roles in Telenor
ASA from 2015 to 2022, including EVP Corporate
Affairs and General Counsel and Head of Board
Governance and Support in Singapore. Prior to
joining Telenor, 16 years in Hydro ASA, including
plant manager in Årdal, Norway, project director
in Australia and EVP People and General Counsel
from 2010 to 2015.
Board positions: Board member at Equinor ASA
from 2015 to 2020 and Oslo Stock Exchange from
2012 to 2015, currently a board member at Crayon
ASA.
Education: Master’s degree in law from the
University of Oslo and an MBA from Babson
College, Boston.
18Wallenius Wilhelmsen – Annual Report 2023
Wallenius Wilhelmsen at a glance
Management team
Contents →
Michael (Mike) Hynekamp
COO Logistics Services
In current role since June 2015
Previous experience: Joined Wallenius Wilhelm-
sen in 2007 with first ten years at Wallenius
Wilhelmsen Logistics AS, 13 years at Mercedes
Benz (Daimler AG) in various roles in marketing,
operations and finance both in the US and in
Europe. Started his career with Ernst & Young LLP.
Education: MBA degree in corporate finance, Fair-
leigh Dickinson University, executive education
from Columbia Business School, licensed CPA,
CGMA and holds a CTP accreditation as well as
a member of National Association of Corporate
Directors.
Xavier Leroi
COO Shipping Services
In current role since November 2022
Previous experience: Chief Customer Officer
heading the global group sales teams, customer
experience and strategies for the Wallenius
Wilhelmsen group. Has held numerous positions
within the group for 25 years. Also holds the posi-
tion as CEO of EUKOR Car Carriers Ltd.
Board positions: ARMACUP Car Carriers Ltd and
PIRT Terminal.
Education: Master’s degree from the Gradu-
ate School of Management in Grenoble, France
where he majored in finance. Has completed
various leadership programs, including the IMD
Global Leadership Program.
Anette Maltun Koefoed
Chief Communications and Marketing Officer
In current role since April 2023
Previous experience: Joined the company in 2021
as VP Corporate Communications responsible for
establishing the Wallenius Wilhelmsen group’s
strategic marketing, brand building, communi-
cations, and emergency management. Previ-
ously EVP of Marketing & Communications at
Berg-Hansen.
Education: Master of Science degree in market-
ing and has completed Executive MBA courses in
Strategic Business Development and Innovation
and Building High-Performance Organizations.
Gro Rognstad
Chief Technology and Information Officer
In current role since October 2023
Previous experience: Joined the company in 2022
as SVP Global Digital Platforms. Prior to joining
Wallenius Wilhelmsen, she held various technol-
ogy management positions at DNB and was CTO
of Sogneti. During her consultant carrier, she
worked in a wide range of industries such as tele-
com, oil and gas, finance and insurance, health-
care, and the public sector.
Education: Computer science candidate from the
Norwegian School of Information Technology. Has
completed various leadership programs.
Words from CEO
“2023 has been an exceptional year for Wallenius Wilhelmsen – financially,
commercially and operationally. I am deeply impressed by the dedication and
hard work of our people, delivering results beyond what we even hoped when
we started the year. Our strong results are helped by strong demand in the
markets we operate, but we were in a position to serve our customers and
deliver value to our shareholders thanks to the people of this organization. They
have for years helped build an industry-leading position. And we do certainly
not stop here. We have an ambition to lead the way in transforming our industry
towards an emission-free future, and digital tools will be a key enabler. ”
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20
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Wallenius Wilhelmsen – Annual Report 2023 20
Words from CEO
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Wallenius Wilhelmsen – Annual Report 2023
We never compromise on safety, security or compliance
Safety, security and compliance is constantly and consistently our number one
priority and commitment. During 2023, we saw good development in all these areas
thanks to systematic efforts to build both our processes and our culture. It was
therefore tragic to experience a fatal accident on one of our vessels in January 2024.
There is nothing more important than safety and the wellbeing of our people. We
firmly believe that every accident and incident can be avoided. That is why we are
undertaking an in-depth investigation into what caused this accident and make
sure we learn and develop as an organization.
The safety of our crew was also the reason why we in December 2023 decided to
stop sailings in the Red Sea area. This is the highway between Asia and Europe
and we have more than 20 sailings through the area in a normal month. When the
attacks from the Houthi militia in Yemen escalated in December, we took imme-
diate action and was the first RoRo operator that decided to re-route our vessels.
Unfortunately, the attacks have continued and we will not return to the area until it
is safe for our crew, our vessels and our cargo.
We bring low carbon services to our customers
In Wallenius Wilhelmsen, we have decided to lead and shape the journey to zero
emissions in our industry. With our target and plan to reach net zero by 2040 and
reduce our emissions by 40 percent in 2030 as compared to 2019, we have commit-
ted to bringing low and no carbon services to our customers. We took major steps
in 2023 towards delivering on this. Despite increasing activity and high utilization
of our vessels, we reduced our absolute emission with more than 10 percent year
over year. We have made significant investments in energy efficiency technology
for years, ranging from AI to physical modifications of our vessels.
This year there was a leap towards net zero emission with the ordering of our
“Shaper class” vessels capable of running on green methanol upon delivery. We
also introduced zero-emission battery electric trucks in the US and we opened the
Orcelle terminal in Belgium. All these initiatives are vital parts of our strategic goal
to deliver the world’s first end-to-end net zero service to our customers in 2027.
This is a very ambitious target and we need to break many barriers to get there. But
together with our customers, we are confident that it is both possible and needed.
We partner with customers sharing our journey
2023 is also a testament to the partnerships we have built with customers in the
car and heavy equipment industries. This year we renewed several contracts with
key customers for several years where they utilize our unique capabilities of both
orchestrating, moving and completing their finished goods logistics. In addition,
we have partnered with our customers on decarbonizing their supply chain and all
key contracts concluded in 2023 had an element of paying for a reduced carbon
service. Typically, customers could pay around 10 percent extra in freight to reduce
their emissions by 25 percent using biofuel. For Wallenius Wilhelmsen in 2024, more
than 10 percent of the fuel consumption will be sustainable biofuel.
We lead with technology
Wallenius Wilhelmsen is increasingly becoming a technology company. In all parts
of our organization we are deploying digital technology to improve safety, reduce
emissions, improve customer experience, and to build effectiveness and resilience.
21
Contents →
Wallenius Wilhelmsen – Annual Report 2023 21
Words from CEO
Contents →
Wallenius Wilhelmsen – Annual Report 2023
We have built a state-of-the-art digital infrastructure on all our vessels allowing us
to quickly implement new technologies onboard. This year, we for instance saw the
effect of the roll out of AI technology for voyage optimization, giving a significant
contribution to the 10 percent year-on-year reduction in fuel consumption.
In addition to deploying new, digital solutions across our existing operations, we
are also investing in building and delivering digital connectivity with our customers.
The supply chain disruptions over the last few years have demonstrated the need
to rethink supply chain resilience and visibility. Through our digital platform, we
can connect suppliers, OEMs, and third-party data sources and provide a tailored
infrastructure for planning and managing the supply chain in real time. Through
this, we help our customers and partners in their digital transformation.
We make every employee a rock star of their own career
The biggest asset is our people, our rock band. The team of some 11,500 people
ashore and at sea get up every morning to make a difference. Our people “care”
for each other, for the environment and not least for the communities we serve
and live. They “challenge” status quo and constantly strive for safer, greener and
more efficient practice. And not least, they “commit” to deliver – to our custom
-
ers – to our stakeholders – and not least to each other and themselves. And they
succeed in making diversity and inclusion a competitive advantage and a natural
part of who we are and what we do. We want our rock stars to fulfil their potential,
empower them through strong teams, and motivate them to drive innovation, be
leaders, and challenge status quo.
We “shape” the future
Wallenius Wilhelmsen is built on a set of visionary and bold decisions made all the
way back to the 1960s. Olof Wallenius pioneered the RoRo concept and established
the Japan-Europe trade in the 60’s, while Wilhelmsen in the early 1990s decided
to become the leading RoRo owner in the world, buying NOSAC and entering the
Korean market. When Wallenius and Wilhelmsen in 1999 decided they were better
and stronger together, they bought the RoRo activity from HMM and founded EUKOR
in 2002. Not to mention when Wallenius Wilhelmsen acquired DAS from Nissan in
2005 and became a significant player in logistics.
Because of these, and many more bold moves, we had a global platform and were
ready to deliver and capitalize when markets tightened in 2022 and 2023. 2023 is
the best year in the history of this group and we believe 2024 could be even better.
Nevertheless, we are living in a time where we see more change, disruption, and
breakthroughs than ever before in our history. That is why we at Wallenius Wilhelm-
sen again think it is time to shape the future. An emission free, digital future is the
goal. We are shaping it from a position of strength, and will preserve the soul and
spirit of our organization at the same time as we rethink, reshape and even reinvent
how we work. That means rethinking partnerships, products, services, technology,
people and culture. It means rethinking safety, rethinking sustainability, rethinking
the role we can play in reshaping the industry and our societies.
Lasse Kristoffersen
CEO
23Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Vision and Strategy
Contents →
Vision and Strategy
Our Strategy
We continue to work towards our mission:
To achieve this, a key component of our strategic position is to become an integral
part of our customers’ supply chains. This way we can work in partnership with
them to build resilient, digitalized and decarbonized logistics, together.
To this end, we have defined four strategic goals:
Become the leading supply chain and mobility orchestrator means that we work to
optimize finished vehicle logistics together with customers through digitally-en-
abled services. We partner with customers, orchestrating services that are criti-
cal to their decision-making as vehicles and heavy equipment move through their
supply chain from production to the end users.
Being our customers’ first choice in shipping means that we work to secure the
number one position in targeted trades in terms of safety, product, customer service
and reliability. We will offer a net zero-emission end-to-end service by 2027 and
continue to transform our shipping operation to create a fully data-driven orga-
nization.
Being the preferred partner in processing and terminal services requires that we
continue to expand our footprint and double our logistics services over the next four
years to achieve the scope and scale to deliver on customer’s increasing finished
vehicle logistics demands. Logistics services will continue to deliver components of
our zero-emission end-to-end offering by 2027 and improve profitability through a
digitally-enabled, highly differentiated service portfolio and a focused labor strategy.
Mission
Goals
Become the leading
supply chain and
mobility orchestrator
Be the preferred
partner in processing
and terminal services
Be our customers’
first choice in
shipping
Introduce a net zero-
emissions end-to-end
service by 2027
We lead the way in transforming our industry
towards an emission free and digital future
24Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Vision and Strategy
Contents →
Introducing one net zero-emission end-to-end service by 2027 is a central goal in
our strategy. As a first step, we introduced an independently verified and audited
reduced carbon service in 2023, bringing our carbon-conscious customers onboard
through commercializing our reduced emission offerings from the consumption
of sustainable biofuel. Further, we ordered net-zero enabled vessels, the Shaper
Class, and continued to invest in low and zero emission equipment and trucking.
Wallenius Wilhelmsen has recently committed to becoming net-zero by 2040,
including scope 1, scope 2 and scope 3 emissions. In 2024, our ambition is to have
this target verified by the Science-based Target initiative (SBTi).
Our Values
Wallenius Wilhelmsen is a value driven company. In 2023 we made an in-depth
study of how these values can be expressed in a clear, simple and recognizable
way. During this process, in which the whole company and all our people contrib-
uted, we discovered that there are three things the organization holds high and
never compromises on:
In Wallenius Wilhelmsen, we care. For our colleagues, for the environment, and for
the societies we are part of. We challenge the status quo and we always look for a
better way. And we commit, and keep our promises. So in short, we have a culture
where we care, we challenge and we commit. And that is why these are our values.
They simply describe who we are and how we act.
Values
We Care — We Challenge — We Commit
25Wallenius Wilhelmsen – Annual Report 2023
Message from the board
2023 in brief
Contents →
2023 in brief
2023 was a very strong year for Wallenius Wilhelmsen.
Capacity constraints in the car carrier markets have led to solid earnings for the
shipping services segment and we have consistently renewed multi-year contracts
at rates reflecting the current market. Contract renewals have focused on integrating
offerings across ocean and land-based services, combined with decarbonization
initiatives such as the use of biofuel. Furthermore, we have seen very solid growth
and margin improvements in the logistics and government segments.
As a consequence, we have exceeded our over-the-cycle financial targets by a
solid margin, and the associated cash flow has enabled us to pay attractive divi-
dends, further invest in the business and reduce net debt. This has allowed us to
strengthen the equity story while ensuring that we have a solid financial founda-
tion for the future.
On the back of 2023, Wallenius Wilhelmsen proposes to pay a dividend of USD 1.14
per share, representing a FY 2023 payout ratio of 50 percent of net profit and a total
dividend amount of USD 482m. Further, it is proposed to introduce a semi-annual
pay-as-you-go dividend policy, under which a potential dividend for H1-2024 will
be paid with the second tranche of the 2023 dividend. This demonstrates our clear
commitment to reward our shareholders.
26Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Financial review
Contents →
Financial review
Consolidated financial results
Total revenue was USD 5,149 million for FY 2023, an increase of 2 percent compared
to FY 2022. Shipping revenues were down 4 percent year-over-year (YoY), from USD
4,038 million in FY 2022 to USD 3,881 million in FY 2023. This was primarily driven by
lower fuel surcharges. In addition, a slightly lower average net rate, as rate increases
were more than offset by weaker cargo and trade mix. Shipping experienced a 0.3
percent growth in volumes, which was somewhat hampered by global conges-
tion issues. Logistics revenues were up 26 percent, from USD 911 million to USD
1,148 million, as volumes increased as a result of less disruptions in supply chains.
Government revenue increased 7 percent from USD 302 million in FY 2022 to USD
324 million, mainly due to increased U.S. flag cargo activity.
EBITDA ended at USD 1,807 million for FY 2023, up 17 percent from USD 1,548 million
for FY 2022. Adjusted EBITDA ended at USD 1,807 million, up 18 percent compared
to FY 2022. 2023 was a remarkably good year for shipping services with stable
volumes and margin growth, with adjusted EBITDA up 12 percent from FY 2022.
The improvement over last year was mostly related to the tight global RoRo fleet
situation and the group’s continuous efforts to reprice its book of business to
sustainable levels, despite global congestion issues. A reduction in net fuel costs
(fuel surcharges less fuel expenses) contributed to the improved profitability. For
logistics, adjusted EBITDA increased 62 percent, as revenue increases exceed the
increase in costs resulting in a higher average margin. Government services saw
adjusted EBITDA increase of 61 percent, due to higher revenues and improved
margins. For a detailed explanation of the definition of adjusted EBITDA, please
refer to the section on Reconciliation of alternative performance measures. Depre-
ciation and amortization amounted to USD 577 million versus USD 541 million in FY
2022. This was mainly due to an increase in leased assets coming in during 2022.
In FY 2023, Wallenius Wilhelmsen recognized an impairment loss of USD 5 million
related to the intangible assets in the shipping segment. Net impairment loss for
FY 2022 was USD 29 million from a charge to goodwill allocated to logistics services.
See note 11 in the financial statements for further details.
27Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Financial review
Contents →
A put-call structure exists in the shareholder agreement with the minority share-
holders for the investment in EUKOR Car Carriers (EUKOR). Any changes in the
valuation of the net derivative are recognized in the income statement. During FY
2023, there was a decrease in the value of the put-call derivative for EUKOR of USD
6 million, recognized under the line Other gain/(loss) in the income statement. The
impact in FY 2022 was a loss of USD 47 million. See note 5 in the financial state-
ments for further details.
Net financial expenses were USD 186 million versus USD 104 million in FY 2022. Net
financial income was USD 74 million, up from USD 17 million in FY 2022. Interest
expense including realized interest derivatives was USD 218 million, an increase of
USD 29 million versus FY 2022. Currency loss including realized currency derivatives
was USD 9 million, compared to a gain of USD 42 million for FY 2022. Net financial
expenses were negatively impacted by USD 18 million in unrealized derivative loss,
mainly driven by USD 17 million in negative interest rate derivative movements. In
FY 2022, unrealized derivative gain was USD 44 million, USD 111 million in unrealized
gains on interest derivatives offset by USD 67 million unrealized losses on foreign
currency derivatives. See note 6 in the financial statements for further details.
The group recorded a tax expense of USD 68 million versus a tax expense of USD 35
million in FY 2022. Payable tax was USD 64 million, wherein USD 20 million was with-
holding taxes. In addition, USD 4 million change in deferred tax. The group continues
the non-recognition of net deferred tax assets in the balance sheet related to tax
losses in the Norwegian entities, primarily due to uncertainty in future utilization. In
addition, the group reversed certain deferred tax assets in 2023 related to interest
expenses that cannot be utilized.
Net profit for FY 2023 was USD 967 million, up 22 percent from USD 794 million FY 2022,
whereof USD 846 million attributable to owners of the parent and USD 121 million to
non-controlling interests (primarily related to the minority shareholder in EUKOR).
28Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Financial review
Contents →
Financial position and capital structure
Total equity amounted to USD 4,056 million at year-end 2023, corresponding to
a ratio of 47 percent, up from 42 percent at the end of 2022. The liquidity position
was solid, with cash and cash equivalents of USD 1,705 million and USD 397 million
in undrawn credit facilities at year end 2023. The group had net interest-bearing
debt of USD 2,007 million, consisting of bonds, bank loans, export credit facilities
and leasing commitments. The group was in compliance with all loan covenants
at year-end 2023.
The current financing structure in the group consists of five funding units, as seen
below as of December 31, 2023. Most financing is subject to certain financial and
non-financial covenants or restrictions within the funding unit. See more informa-
tion on financing activity in 2023, financing structure and covenants in Note 16.
Interest-bearing liabilities.
Wallenius Wilhelmsen ASA
Consolidated interest-bearing debt: $3,728m
Consolidated cash: $1,705m
Bank debt, secured by
vessels
Bank and leasing debt,
mainly secured by vessels
Bank and leasing debt,
mainly secured by vessels
Parent company guarantee
Bank and lease debt, pledge
in shares
Parent company guarantee
Covenants on ARC:
- Fixed charge coverage
ratio
- Funded debt / EBITDA
- Value to loan clause
Covenants on EUKOR:
- Minimum liquidity
- Ratio of EBITDA to
interest expense
- Loan to value clauses
Covenants WW ASA
consolidated:
- Minimum liquidity
- Gearing ratio
- Loan to value clauses
Covenants WW ASA
consolidated:
- Minimum liquidity
- Gearing ratio
Bank debt: $64m
Undrawn RCF: n.a.
Leases: $3m
Cash: $144m
Bank debt: $558m
Undrawn RCF: $75m
Leases: $650m
Cash: $744m
Bank debt: $827m
Undrawn RCF: $280m
Leases: $285m
Cash: $459m
Bank debt: $303m
Undrawn RCF: $42m
Leases: $472m
Cash: $227m
Debt (bonds only): $565m
Cash: $131m
ARC EUKOR WW Ocean WW Solutions
29Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Financial review
Contents →
In 2023, the group completed the issuance of a new NOK 1 billion sustainability-linked
bond, and used NOK 528m of the proceeds to buy back part of the WalWil03 bond
that matures in September 2024. The remaining amount outstanding in the same
maturity is expected to be repaid with cash and not refinanced.
During the year, EUKOR extended three credit facilities of USD 25m, USD 15m, and
USD 10m respectively by one year and signed a new USD 25m RCF, adding flexibil-
ity to the subsidiary’s capital structure. EUKOR also closed a financing of USD 75m
related to financing of two vessels and purchase of a third vessel previously on
lease. This released USD 34m in cash to EUKOR. In addition, WW Ocean refinanced an
undrawn USD 100m revolving credit facility. The refinanced facility amounts to USD
150m, has a tenor of 18 months, and is secured by accounts receivables. Further,
Wallenius Wilhelmsen ASA both established and later cancelled an undrawn RCF of
USD 100m secured in five previously unencumbered vessels. Following the cancel-
lation of the RCF, Wallenius Wilhelmsen has 16 unencumbered vessels per year end.
The logistics services segment completed refinancing of a revolving credit facility.
The previous facility of USD 320m had maturity in June 2024, comprising USD 303m
and USD 17m of drawn and undrawn amount respectively. The new RCF amounts to
USD 345m with the same drawn amount (USD 303m) on improved terms. The new
facility has a 5-year duration with maturity in September 2028.
Cash and cash equivalents of USD 1,705 million as at December 31, 2023, was
distributed across the following group units:
Cash flow
The group generated USD 490 million of positive net cash flow from operations, invest-
ing and financing activities in 2023. The net cash flow from operations amounted
to USD 1,771 million, up from USD 1,297 million in 2022, improved EBITDA develop-
ment and reduced working capital. Net cash flow used in investing activities was
USD 104 million compared to USD 62 million in 2022. The most significant investing
activities were installments on newbuilding contracts of USD 42 million, regular
dry dockings of approximately USD 65 million and other vessel upgrades of USD 18
million. Various investments in logistics services amounted to USD 20 million. Net
cash flow from investing activities was positively impacted by interest income USD
69 million. Net cash flow from financing activities was negative USD 1,177 million
compared to negative USD 729 million in 2022, reflecting debt coverage, interest
costs and net repayment of debt (including leasing liabilities) and payment of USD
362 million of dividends paid to shareholders in 2023. In addition, USD 57 million in
dividends was paid to non-controlling interests.
Segment USD million Percent
Shipping services 1,203 71%
•
WW Ocean 459 27%
•
Eukor 744 44%
Logistics services 227 13%
Government services 144 8%
Holding (WW ASA) 131 8%
Total cash 1,705 100%
30Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Long-term financial targets and dividend policy
Contents →
Long-term financial targets and dividend policy
In February 2023, the board of directors approved new long-term over the cycle
financial targets and an updated dividend policy for the group. The changes in the
dividend policy are not material, but reflect that the board will consider the new
financial targets and future capital requirements when deciding on the dividend
amount. The payout ratio range in percent of profit after tax remains unchanged.
Long-term financial targets (over the cycle):
•
Return on capital employed (ROCE) > 8 percent. Calculated as last twelve
months of adjusted EBIT divided by the last twelve months of average capi-
tal employed (total assets less total liabilities plus total interest-bearing
debt)
•
Leverage ratio < 3.5x. Calculated as net interest-bearing debt divided by
last twelve months of adjusted EBITDA.
•
Equity ratio > 35 percent. Calculated as book value of equity divided by
book value of total assets.
Dividend policy
Wallenius Wilhelmsen’s objective is to provide shareholders with a competitive
return over time through a combination of rising value for the Wallenius Wilhelm-
sen share and payment of dividend to the shareholders.
The board targets a dividend which over time shall constitute between 30 and 50
percent of the company’s profit after tax. When deciding the size of the dividend, the
board will consider its financial targets and future capital requirements to ensure
the implementation of its growth strategy, as well as the need to ensure that the
group’s financial standing remains solid. Dividends will be declared in USD and
paid out semi-annually.
Going forward, the company has proposed a semi-annual pay-as-you-go dividend
policy, under which potential dividends will be declared in connection with the Q2
and Q4 reports, and be based on H1 and H2 earnings, respectively. The level of divi-
dends, which will be declared in USD but paid in NOK, will still be based on a range
of 30-50 percent of the company’s net profit after tax on an annual basis. This is
pending approval at the upcoming Annual General Meeting on April 30, 2024.
31Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Shipping segment
Contents →
Shipping segment
Wallenius Wilhelmsen’s main objective for the shipping segment is to strengthen
its position as the RoRo shipping market leader with unrivaled high & heavy and
breakbulk capabilities. This shall be done while taking a leading position in the
decarbonization journey to zero emissions by digitalizing the supply chain and
driving technological innovation and operational effectiveness.
Summary of 2023
2023 was another extraordinary year for the shipping segment and the best year
on record in terms of EBITDA. Shipping services has delivered strong results since
the middle of 2021 following several years of weak markets and fleet overcapacity.
A fully utilized global RoRo fleet, along with the repricing of our book of business to
sustainable levels, were the main drivers for the 2023 performance.
The semiconductor chip shortages that affected the industry in 2022, significantly
eased in 2023. Port congestion continued to impact the car carrier industry also
in 2023, although we saw less terminal congestion, particular in Q4. Port conges-
tion remains a challenge for the industry and it reduces global car carrier capacity.
Long waiting times at key ports were mainly caused by labor shortages in ports and
general bottlenecks in the logistics supply chain. In order to mitigate these chal-
lenges, we were in continuous dialog with our customers and worked together to
re-route cargo to other ports with less congestion whenever and wherever possible.
More importantly, in December 2023 we decided to re-route all our vessels planned
for Red Sea transit via the Cape of Good Hope due to the security situation in the
region. The safety of our people is our number one priority, and Wallenius Wilhelm-
sen was the first car carrier operator to suspend sailings through the Red Sea. The
re-routing is impacting tonnage capacity negatively and about one week is added
to each Europe-Asia and Asia-Europe sailings, offsetting the reduced terminal
congestion. Our team is working hard to optimize the tonnage situation and is in
close dialog with customers.
Total revenue was USD 3,881 million for FY 2023, down 4 percent compared with
FY 2022. Average net freight rates increased in most cargo segments, but fell 1
percent on average despite positive effects from contract renewals, due to unfa-
vorable development in cargo and customer mix. Light vehicles increased from 69
percent in FY 2022 to 72 percent in FY 2023. Transported volumes were flat at 59
million cubic meters (cbm) in FY 2023, and the trade mix improved somewhat as
volumes were shifted more towards Asia exports relative to Europe/US exports.
Thanks to efficient operations, we have operated with maximum fleet utilization
throughout the year. We saw a positive development in the energy efficiency oper-
ating indicator (EEOI) compared to FY 2022, despite a negative trend in the fourth
quarter. This was mainly due to re-routing of vessels via Cape of Good Hope caus-
ing less transported volumes and somewhat increased speed, which drives up
consumption per nautical mile and has a negative effect on emission KPIs. We
continue to focus strongly on the long-term plan to achieve our overall emission
reduction ambitions and decarbonization strategy. Further readings about the
company’s effort and work on decarbonization is described in the Planet chapter.
Total
Shipping
Revenue:
USD million
Total
Shipping
EBITDA:
USD million
Total
transported
volumes:
million CBM
Total
Shipping
Fuel
Expenses:
USD million
32Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Shipping segment
Contents →
EBITDA for the shipping segment ended at USD 1,527 million, up from USD 1,359
million in FY 2022. Cargo and voyage related expenses decreased by USD 41 million
due to more efficient voyage operations and less space charters. Fuel expenses
decreased USD 275 million due to more efficient operations as well as lower fuel
prices in FY 2023. Charter expenses decreased by USD 43 million. This is due to
several exercises of purchase options, as well as no short-term charter activity
during the year. Vessel operating expenses were up USD 15 million on exercises of
purchase options, as well as a general increase in vessel operating cost on inflation
and cost increase. Selling, general and administrative expenses (SG&A) increased
USD 20 million on general inflation and payroll increase, further coupled with one-offs
related to stamp duty tax in Korea as well as year end accruals.
The fleet
At year-end 2023, Wallenius Wilhelmsen operated a fleet of 125 vessels, down from
128 vessels at year-end 2022. The reduction is due to a cautious approach to charters
despite capacity needs. The group owned 86 vessels at year-end, an increase from
83 vessels at year-end 2022 on exercise of purchase options. Long-term charters
decreased from 45 vessels in FY 2022 to 39 vessels in FY 2023 on both purchase
options and redelivery of charters. Charter rates remained high also in FY 2023.
At year-end, the assessed market value of the company’s 86 owned vessels was
USD 6.6bn based on the average of two independent shipbroker valuations. At year-
end, the company and its subsidiaries hold 13 purchase options linked to leased
vessels, all at prices significantly below current market levels.
33Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Logistics segment
Contents →
Logistics segment
Our ambition for logistics services is to be our customers’ preferred partner for
logistics services in processing and terminal services. Logistics services mainly
serve the same customer groups as shipping services. Customers operating glob-
ally are offered sophisticated logistics services through four distinct products.
Auto is the largest product group in the logistics portfolio, providing light vehicle
processing services to auto producers globally. High and heavy (H&H) includes
equipment processing centers on and off port sites globally with the largest concen-
tration in the US. Terminal offers our cargo processing, handling and storage at
some of the world’s largest RoRo ports. Inland includes the global transporting of
cargo by road or rail to a port or final point of sale.
Summary of 2023
Global light vehicle (LV) sales grew in 2023 but remained below pre-Covid levels.
In the US market, where Wallenius Wilhelmsen has a significant presence in the
auto sector, LV sales increased 13 percent in 2023 over 2022. While an improvement
over 2022, the approximate 16.5 million units sold is still shy of the pre-pandemic
levels. Semiconductors and other part shortages have eased and are no longer a
major concern, resulting in stabilized volumes and improved delivery predictability.
Overall, logistics services saw volume improvement year over year across the busi-
ness, positively impacting the financial performance. Auto, terminal and high &
heavy all saw increased volumes, while inland services saw decreased volumes
from prior year.
Auto, traditionally the biggest contributor to logistics profits, saw an easing of part
shortages and labor challenges driving volume growth. Additionally, all new and
renewed customer contracts in 2023 were repriced to reflect the high-cost market.
Total revenues improved and profits improved from last year. Total logistics segment
revenue for FY 2023 was USD 1,148 million, up 26 percent from USD 911 million, as
volumes significantly increased from FY 2022. Adjusted EBITDA was USD 174 million,
up USD 67 million compared to FY 2022.
Auto EBITDA for the full year ended at USD 67 million, a 271 percent increase from FY
2022. North America, a main contributor to auto, saw a 27 percent increase in volume
and increased accessorizing positively impacted margins. EV units processed in
the US tripled from FY 2022.
High & heavy processing volumes decreased 28 percent mainly driven by APAC
reclassification to the auto product and lower fumigation activity due to Oceania
congestion. US saw a volume increase of 7 percent year over year. EBITDA for FY 2023
was USD 31 million compared to USD 20 million in FY 2022 as a result of increased
volume and storage revenue in the US.
Terminal volumes decreased 4 percent year over year. However, EBITDA for FY 2023
was USD 98 million compared to USD 63 million in 2022. The EBITDA growth was
mainly attributable to extensive de-seeding activity in Australia, including wash-
ing and demurrage.
Inland volumes increased 1 percent year over year. EBITDA of USD 9 million compared
to USD 19 million in FY 2022 as a result of shifting to less profitable short haul moves
in 2023 and overhead expenses reclassified to Inland.
Total
Logistics
Revenue:
USD million
Total
Logistics
EBITDA:
USD million
Total
Logistics
volumes:
million units
34Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Government segment
Contents →
Government segment
The government services segment provides ocean transport of U.S. flag cargoes
and performs global logistics services for the U.S. government. Ocean transport
includes RoRo cargo, breakbulk and vehicles. It also includes charters of vessels
to affiliated companies in the shipping services segment and charters or sales of
vessels to the US government. Logistics services for the US government are primarily
related to multimodal transportation, third party logistics support, stevedoring and
terminal operations. The primary customer is the US government, but the segment
also includes U.S. flag commercial cargos such as those generated by the financial
sponsorship of a federal program, or a guarantee provided by the US government.
Summary of 2023
Total revenue from the government segment for the full year of 2023 was USD 324
million, up 7 percent from USD 302 million. This was mainly due to increased US
flag cargo activity in large part attributable to cargo moved in support of the United
States and NATO response to the Russian invasion of Ukraine. EBITDA was USD 130
million, up USD 35 million (37 percent) compared to FY 2022. The increase in EBITDA
was driven by increased government revenue combined with lower operating costs,
including reduced fuel costs in part due to consumption initiatives and lower fuel
prices, cargo mix and supply chain impacts.
The segment’s revenue and EBITDA development is primarily driven by government
activities that are in part driven by world events and government objectives which do
not follow regular seasonal patterns or the commercial business cycle driving the
other segments. In line with the company’s sustainability objectives, the segment
reduced the impact of rising fuel and labor costs through fuel consumption initia-
tives and increased focus on safety management.
During the year, government services won its 10th Maritime Security Program (MSP)
contract. In accordance with that contract, the M/V Tulane was re-flagged to U.S.
registry in February 2024. As part of the process the vessel changed its name to
M/V ARC Honor and was added to the MSP fleet.
Government services continued to expand its U.S. flag logistics businesses. These
included securing numerous task order wins under various logistics contracts with
the U.S. government in Europe, Asia, Africa, and South America.
Total
Government
Revenue:
USD million
Total
Government
EBITDA:
USD million
35Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Market development and outlook
Contents →
Market development and outlook
The company’s shipping and logistics services continued to reap benefits from the
strong rebound of the light vehicle (LV) market. Further, global high & heavy exports
remain at elevated levels, although with diverging signals. Along with a normaliza-
tion in breakbulk volumes, the company suggests a more modest volume growth
within the segment near-term. The market outlook remains firm due to volume
expectations from key customers, contract renewals and continued capacity
constraints in shipping.
Light vehicle market
In FY2023, the global light vehicle (LV) sales totaled 86.4 million units, increasing
by 9.4 percent compared to the previous year
1
. This growth can be attributed to two
key factors. On the supply side, the ease of semiconductor shortages and intensi-
fied competition among LV manufacturers have catalyzed a recovery in production
volumes. On the demand side, the implementation of incentive programs aimed at
promoting electric vehicles has stimulated consumer interest and demand.
Most notably, the Chinese LV production witnessed an 8.3 percent year over year
growth, primarily driven by the rapid expansion in the low-emission vehicle segment
(e.g. EVs). In North America and Europe, the recovery of supply led to a partial
depletion of an unprecedented high vehicle order backlog and a gradual rebound
of inventories from historically low points. In light of these market dynamics, our
logistics services has seen a positive impact with double-digit growth in both
revenues and margins on increased demand for terminals, customization and
processing services.
Globally, deep-sea LV exports increased by 13 percent percent from FY 2022, lead-
ing to a tightening market balance for RoRo shipping. This is driven by a continued
surge in Chinese deepsea RoRo exports from 1.6 million units in 2022 to 2.3 million
units in 2023 representing a 45 percent year over year growth. One contributing
factor to Chinese LV export was the increasing popularity of battery electric vehicles
in Europe. Several major exporting regions also saw a recovery in 2023; Japanese
and Korean exports increased by 10 percent and 15 percent, respectively. European
exports were up 9 percent.
Market expectations for LV sales in 2024 suggest a volume growth of 2.6 percent
compared to 2023. This represents a total of 88.6 million units being sold in 2024,
which is still below 2019 volumes of 89.9 million units. Sales volumes in North Amer-
ica are predicted to increase by 3 percent and exceed 19.2 million units sold. Europe
is expected to see a modest improvement of 0.5 percent. The base case scenario
expects deep-sea volumes to see a stronger rebound compared to global sales.
Deep-sea volume is forecasted to increase with 6.3 percent, with continued exports
from the Far East, including China, Japan and Korea.
While the global production and sales of light vehicles are still far below pre-Covid
levels, the age of the global light vehicle fleet increases and needs to be replaced.
Further, part of the growth in LV sales is likely to be fueled by a growing focus among
auto producers to introduce more affordable vehicles. The shift towards low-emis-
sion vehicles, and in particular battery electric vehicles, is also expected to drive
sales and thus demand for deep-sea shipments.
1 Source: S&P Global Mobility (formerly IHS Markit)
36Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Market development and outlook
Contents →
High & heavy market
The global markets for construction, agricultural and mining machinery had a very
strong year in 2023 and saw higher volumes than in 2022.
Within construction, the export of machinery increased 23.1 percent year over year
2
.
Shipments to North America in particular were higher, but also Europe and the
Middle East saw solid growth for machinery in 2023. Investments in infrastructure,
energy and utilities continued to support high demand for equipment, but residen-
tial construction was lagging. Overall, the construction industry reported slowing
activity on a weak sentiment in some key markets, in particular China and Europe.
Inflation is still at a high level and the market expects interest rates will remain high
for an extended period of time.
The demand for agricultural machinery was relatively stable in 2023. The trend indi-
cates a slight decline towards the end of the year. In the US, the total tractor sales
were down 8.2 percent in 2023. In Brazil, the sales were down around 20 percent.
Meanwhile, 2023 sales in Germany increased 7.3 percent, with UK and Australia
growing 2 percent each. The UN food price index was down 13.8 percent in 2023,
but it is still at historically high levels. Major equipment manufacturers estimate
that the tractor markets will remain soft in 2024, with indications of a 5-10 percent
decrease in volumes.
Global mining equipment overall saw positive development in 2023 even though the
World Bank Metals & Minerals monthly price index decreased with 4.9 percent for
the year, but the index for precious metals increased 10.8 percent. The commodity
prices for metals and minerals are still at unprecedented high levels, and the mining
industry is showing high profits. On the back of increased demand for metals and
minerals, we expect the demand for machinery equipment in the mining industry
to remain strong.
Overall, the major manufacturers of construction and mining equipment reported
high order backlogs and solid demand, especially in the Americas region.
Global fleet
The global vehicle carrier fleet totaled 767 vessels. In 2023, there were 82 new orders
of vessels placed, eleven vessels were delivered while one vessel was recycled.
According to Clarksons, the orderbook for deep-sea vehicle carriers was by year-
end 2023 around 192 vessels (>1,000 CEU), representing approximately 37 percent
of the global fleet in capacity terms.
As per the current delivery schedule and barring any delays, some 48 newbuild-
ings are planned for delivery during the remainder of 2024, 65 vessels in 2025, 52
vessels in 2026, 24 vessels in 2027 and three vessels in 2028.
2 Source: S&P Global Mobility
37Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Key risk exposures
Contents →
Key risk exposures
Wallenius Wilhelmsen is exposed to a variety of risks through its global operations.
These risks are within the following areas: Safety, financial, market and commer-
cial, operational, regulatory, climate and environmental. Wallenius Wilhelmsen has
a group-wide enterprise risk management model that is based on ISO 31000 risk
management and seeks to ensure that risks are identified, analyzed, evaluated,
and appropriately managed. Every quarter, management presents a detailed risk
assessment to the board of directors. This includes mitigating actions which cover
all business units and corporate functional areas. Governing bodies, management
and employees are aware of the current environment in which we operate and are
responsible for implementing measures to mitigate risks, acting upon unusual
observations, threats or incidents, and proactively try to reduce potential negative
consequences. Wallenius Wilhelmsen monitors and continuously improves internal
controls, systems and processes for handling risks.
Health, safety and security risks
As a result of our core operations, Wallenius Wilhelmsen is exposed to safety risks
arising from both its sea and land operations. Our key safety risks are incidents
onboard and related to vessels such as fire, piracy attacks and outbreak of conta-
gious diseases. The key risks at our land-based operations mainly relate to the
handling and treatment of vehicles and machinery and undesired breaches to
perimeters of our terminals and other facilities. We believe all accidents are avoid-
able and seek to mitigate these risks through respective management systems and
safety culture initiatives. The systems include a sharp focus on training, updating
routines and processes and measures designed to secure continuous compli-
ance with health, safety and security regulations. Frequent and regular emergency
response drills, toolbox talks and risk assessments are run to reduce these risks.
The group monitors key performance indicators and performs root cause analysis
of undesired events to identify and prevent potential risks. For further information,
please see the People chapter in this annual report.
Financial risks
The main financial risk exposures for Wallenius Wilhelmsen are interest and currency
rates along with fuel prices. For a detailed assessment of financial risk, see note
17 – financial risk in the financial statements.
Wallenius Wilhelmsen’s policy is to economically hedge between 20-80 percent
of the average net interest rate exposure over the next five years, predominantly
through interest rate swaps and fixed rate loans. The hedge ratio currently stands
at about 50 percent.
The US dollar is the dominant currency for both revenues and costs across the group.
It is also the group’s presentation currency. The group is exposed to currency risk
on revenues and expenses in non-functional currencies (transaction/cash flow
risk) and balance sheet items denominated in currencies other than USD (trans-
lation risk). The group’s largest foreign exchange exposure is EUR against USD, but
the group also has exposure to a number of other currencies whereof KRW, JPY,
SEK, CNY and NOK are the most important. Various financial derivatives, such as
forwards, options and cross-currency (basis) swaps are used to hedge this exposure.
Fuel price risk is primarily managed through the inclusion of fuel adjustment factors
(FAF) in the customer contracts. Since FAFs are typically calculated on the average
38Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Key risk exposures
Contents →
price over an historical period, and then fixed during an application period, a lag effect
exists, which means that the group is exposed to price changes in the short term.
Regulatory risks
Due to our global presence and operations within different segments, the group is
exposed to numerous regulatory frameworks. These include rules and regulations
related to for instance health and safety, climate, environment, anti-corruption,
sanctions, fair competition, security and data privacy. Compliance with relevant
requirements within these fields, in addition to other corporate matters, are managed
in collaboration with corporate functions, subject matter experts and local respon-
sibilities as per jurisdictional requirements. Awareness and training activities are
conducted based on roles and responsibilities. For more on risk management and
internal control, please see Principles of governance.
Operational risks
Supply/demand imbalance, vessel incidents, adverse weather conditions and
access to skilled labor constitute the main operational risks. We strive to secure
sufficient fleet flexibility by combining owned tonnage with both long- and short-
term charters.
During 2023, global supply chain disruptions continued to create challenges to
logistical planning. Due to the security situation in the southern parts of the Red
Sea, all vessels were re-routed to avoid the area from December 2023 and onwards.
We continue to monitor the situation closely and stay in direct consultation with
marine authorities, industry bodies and all relevant counterparts.
The owned tonnage and long-term charters represent the core fleet, while the
short-term charters enable the operating entities to scale up and down capacity
to meet changing demand in a cost-efficient manner. The company proactively
handles trade imbalances through vessel swaps and space charter arrangements
for excess volumes with other operators.
Cyber-attacks and attacks on our operational systems are also identified as import-
ant and increasing risks, and the company constantly monitors the threat envi-
ronment. Together with partnerships with leading industry players, Wallenius
Wilhelmsen has protection tools and mechanisms in place. We are stepping up
our initiatives and implemented internal information campaigns and awareness
programs to mitigate risk of security breaches related to phishing and impostor
fraud. Please see Security and emergency response in Principles of governance
section. As other companies in the shipping industry, Wallenius Wilhelmsen risks
exploitation by criminal organizations involved in for instance smuggling of narcotics
and human traffickers. Please see the human rights section in the People chapter.
Environmental risks
The environmental risks are mainly related to vessels and include risks such as oil
spills through bunkering, chemical handling and most severely, in case of fire, explo-
sion, collision and grounding. The management systems prioritize training, routines
and measures designed to ensure continuous compliance with environmental
regulations. To reduce these risks, we conduct frequent emergency response drills,
toolbox talks and risk assessments. The group monitors key performance indica-
tors and performs root cause analysis of undesired events to identify and prevent
potential risks. Please see the Planet section of this report for further information.
39Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Key risk exposures
Contents →
Climate risks
Wallenius Wilhelmsen is a large emitter of greenhouse gases and we have identified
climate change as our significant material topic both from an impact and finan-
cial perspective. Please see the business section in the principles of governance
chapter for details of our materiality analysis.
We have two types of climate risks: 1. Physical risks include increased rate of weather
related accidents, incidents such as flooding of ports and facilities and heat stress
for workers. 2. Transition risks such as market, technology, reputational, policy and
regulatory risks are also important. The climate risks that are most financially mate-
rial, relate to the shipping segment, for instance transition to low carbon propulsion
technology with uncertain long-term viability. Transition risks also include regula-
tory developments from for instance the International Maritime Organisation (IMO),
the shipping industry’s global regulator and the European Union (EU). These will
have an impact on the shipping industry and the company. High on the agenda
is to prepare and position ourselves for these regulatory changes and we seek to
contribute to progressive yet pragmatic outcomes through active engagement in
the regulatory development process. For further information, please see the chap-
ter on GHG emissions and climate risk in the Planet chapter of this report.
Market and commercial risks
Demand for shipping and logistics services are cyclical and closely correlated to
global economic activity in general, and deep-sea transportation of light vehicles
(LVs) and high and heavy (H&H) equipment in particular. Changes in the global
economy therefore strongly impact the development of Wallenius Wilhelmsen’s
volumes and financial performance, including the following events and conditions
during 2023:
•
The ongoing conflicts in Ukraine and in Gaza, plus generally increased
geopolitical and trade tensions across several dimensions, create a more
volatile market environment which poses challenges to the company given
our global reach.
•
Sustained port congestions causing vessel delays pose a risk to opera-
tions and the overall fleet utilization and lifting capacity.
•
Illnesses or other events that may threaten the health and well-being of
employees, customers, and wider communities may cause disruptions to
operations and demand.
Any short-term direct effect of reduction in volumes due to any of the above is not
expected to be critical as the group can implement measures to adjust capacity and
reduce costs temporarily. On the other hand, indirect effects could lead to contin-
ued and increased overcapacity and create pressure on rates. Such effects could
be slower underlying global economic growth combined with reduced deep-sea
volumes across all cargo segments. New emissions standards in the LV markets, as
well as incentives, will also influence sales mix and trading patterns. The geograph-
ical pattern of the production of LVs and high & heavy equipment continuously
changes. A shift in the balance between locally produced and exported cargo may
affect the overall demand for deep-sea ocean transportation. It could result in a
shift to short-sea ocean transportation and thus affect the overall fleet utilization. A
shift in customers’ market positions can represent both opportunities and risks for
the company’s operating entities. However, our broad global presence combined
with solid client exposure contributes to actually reducing this risk element.
40Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Events after the balance sheet date
Contents →
Events after the balance sheet date
In January 2024, the 6,600 CEU, 2006 built vessel Morning Camilla was acquired
by our 80 percent owned subsidiary EUKOR following the exercising of a purchase
option at the end of its long-term lease agreement.
Following the end of the quarter, Wallenius Wilhelmsen announced the signing of
multiple customer contracts valid from 2024 and onwards. The new contracts reflect
current market conditions and have durations between two and three years, plus
potential extension options.
In February 2024, our 100 percent-owned subsidiary ARC acquired M/V Tulane
from Wallenius Wilhelmsen Ocean. The sale will lead to an estimated capital gain
of USD 12 million in the shipping segment in Q1 2024. The gain will be eliminated on
group level. A new bank loan of USD 63 million was drawn down in ARC (government
segment) to finance the purchase.
Also in February 2024, the group exercised options to build four additional Shaper
Class pure car and truck carrier (PCTC) vessels. The 9,300 CEU class methanol dual
fuel vessels will also be ammonia ready and are expected to be delivered between
May and November 2027.
At our Q4 presentation, it was announced that the board proposes a dividend of 50
percent of net profit for 2023 and a new semi-annual pay-as-you-go dividend policy
for 2024 and beyond. The proposal is pending annual general meeting approval.
Dividend for the financial year 2023
The board proposed an ordinary dividend of USD 1.14 per share to be paid for FY
2023 as well as a revised dividend policy to be voted upon at the company’s annual
general meeting on April 30, 2024.
USD 0.68 is to be payable in May 2024 and USD 0.46 to be payable in October 2024. The
dividend is declared in USD and paid in NOK. The total proposed dividend amounts
to USD 482 million, representing 50 percent of the FY 2023 profit after tax which is
in the upper end of the dividend policy range of 30-50 percent of profit after tax.
41Wallenius Wilhelmsen – Annual Report 2023
Message from the board
Prospects
Contents →
Prospects
We expect 2024 to be a somewhat stronger year than 2023. Given expectations of
continued customer demand for space on our vessels, we foresee that the tonnage
situation for RoRo carriers will remain tight in 2024 and lead to high utilization of our
assets. Further, we see continued strong demand for our logistics and government
services and expect high utilization in these segments as well. In addition, recently
renewed commercial contracts are likely to support improved earnings from the
renewed volumes in 2024 and beyond.
However, we do see an increased risk linked to geopolitical uncertainty and navi-
gational disruptions across the globe. The most relevant being the security situa-
tion in the Red Sea, an area which we are currently avoiding, and the significantly
reduced capacity in the Panama Canal. We monitor the macro situation closely.
More so, the order book in the car carrier segment has grown further and may have
an impact on the market in the medium term.
The forward-looking statements herein, including assumptions, opinions and
views of Wallenius Wilhelmsen or cited from third party sources, are solely views
and forecasts which are subject to risks, uncertainties and other factors that may
cause actual events to differ materially from any anticipated development. The
company does not provide any assurance that the assumptions underlying such
forward-looking statements are free from errors, and it does not accept any respon-
sibility for the future accuracy of any forward-looking statements.
People
Deep sea vessels are our most visible assets, however, it is our people that are most
important. They operate our vessels, manage processing centers and terminals, run
our logistics network, coordinate our fleet and manage our customers’ cargo effi-
ciently and professionally. Wallenius Wilhelmsen’s people are essential to how we
create lasting value. The COVID-19 pandemic is finally behind us but left a lasting
impact. Wallenius Wilhelmsen, along with many other companies, experiences that
employees have changed their expectations of working life presuming more flexibil-
ity, ability to work remotely and greater work life balance. The trends vary according
to geography: Our Asian and European colleagues have mostly returned to the office,
while remote and hybrid working has become common in the United States.
Our mission and obligation to our people is to provide a safe and inclusive work-
place where everybody’s rights are respected. We want to make a rock star of every
employee. We do this by supporting all to realize their full potential, empower them
through strong teams and encourage them to drive innovation and development by
challenging status quo.
Contents →
43
People
Health, safety and well-being
Contents →
Wallenius Wilhelmsen – Annual Report 2023
We monitor, manage and report on four material topics related to our people:
1. Health, safety and well-being
2. Human and labor rights
3. Diversity, equity and inclusion
4. Training and development
1. Health, safety and well-being
Why is it important?
At Wallenius Wilhelmsen, the health, safety, and well-being of our employees is of
utmost importance. Our global operations in terminals, processing centers, on
roads, and at sea expose us to various hazards and risks, which could result in
work-related injuries. We believe that all accidents and injuries can be avoided and
continuously strive to improve our safety culture. We believe that safety is every-
one’s responsibility and encourage a constant focus on situational awareness and
never to compromise on our commitment towards keeping our people safe from
harm in their work.
How do we work?
Most of our employees work in logistics services. This includes outsourced labor at
terminals and processing centers. Safety 1st is the foundation of logistics’ environ-
mental, health and safety program and requires that all employees understand their
roles and responsibilities to maintain a safe work environment. The management
system is aligned with the ISO standards for health & safety (45001), environment
(14001) and quality (9001). Several of our facilities are already certified to one or more
of these standards. Dedicated HSEQ managers are responsible for the continual
improvement of the systems and senior management monitors this work closely.
External ship management companies manage the crew onboard Wallenius Wilhelm-
sen’s owned and bareboat charter vessels. Our marine operations’ management
team ensures that the ship management companies comply with our policies and
requirements to be certified in accordance with the Maritime Labor Convention,
the International Safety Management Code, ISO 14001 and ISO 9001.
Key performance indicator 2022 actual 2023 target 2023 actual 2024 target
LTIF shipping
1
0.38 <1 0.56 0.75
LTIF logistics 15.76 14.15 14.33 12.83
Work-related Fatalities 0 0 0 0
1 Lost Time Injury Frequency (LTIF) is the number of fatalities and lost work-day cases per 1,000,000 (1 million) work hours for land based
employees. For seafarers, exposed hours are used.
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People
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Wallenius Wilhelmsen – Annual Report 2023
Wallenius Wilhelmsen’s Management System is aligned with
key ISO standards.
A roadmap is being implemented to achieve group-wide certification and the
number of certified sites is increasing.
# of certified Sites 2022 2023 2024
Vehicle services – VPCs
ISO 14001 6 6 32
ISO 9001 17 17 32
ISO 45001 3 6 32
High & heavy – EPCs
ISO 14001 2 2 17
ISO 9001 9 9 24
ISO 45001 0 2 17
Terminal services
ISO 14001 3 3 7
ISO 9001 3 3 7
ISO 45001 0 3 7
Vessels
•
External ship managers
•
ISO 9001 and 14001 certified
•
Compliance with health & safety standards:
•
The International Ship and Port Facility Security (ISPS) Code
•
Maritime Labor Convention
•
The International Safety Management (ISM) Code
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People
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Wallenius Wilhelmsen – Annual Report 2023
How did we perform?
Strengthening our safety management and culture has been a key focus in 2023.
We have developed a corporate safety framework consisting of a policy and incident
reporting requirements. Safety is the first agenda point at all management meetings.
We conducted a survey to measure our safety culture and identify areas of improve-
ment to deliver our strategy. The anonymous survey asked for insight into foun-
dational and leadership behaviors such as trust, openness, speak-up, dilemmas
and learning. More than 3,500 responses were received giving a response rate of
61 percent with seafarers accounting for the majority (2,700) of the responses. The
results gave an overall solid maturity score, particularly due to strong foundational
scores, and provided improvement opportunities for leadership behaviors.
Toward the end of the year, focus was on the safety of our seafarers in the Red Sea.
The conflict between Israel and Hamas was the rationale stated by Houthi rebels
behind their decision to begin targeting commercial vessels transiting in the Red
Sea and the Gulf of Aden. None of our vessels were directly attacked. However, due
to the threat this posed to our seafarers’ lives and the psychological stress it caused,
we decided to re-route all vessels around the Cape of Good Hope. By December
A proactive approach to maritime fire safety
In the wake of recent incidents of vessel fires, the
issue of onboard fire safety has been brought
into public debate. At Wallenius Wilhelmsen, our
approach is focused on prevention such as EV state
of charge restrictions, disconnection of batteries on
second hand units and restriction on transporting
second hand EVs. We are also proactively collabo-
rating with fire departments to better manage this
risk and safeguard the safety of our people. This past
year, we held joint trainings and exercises with local
fire departments to increase our people’s ability to
manage unforeseen challenges and help ensure
safety.
In Baltimore, Wallenius Wilhelmsen’s Captain Jon
Streett, along with the Maryland Port Administra-
tion, hosted an educational day at the Port of Balti-
more. Members of the United States Coast Guard,
Baltimore County Fire and Rescue, and Baltimore
City Fire and Rescue Departments attended the
event. The focus was to deepen understanding and
strengthen collaboration in maritime fire safety.
Twenty-one personnel from the fire department
were given an in-depth tour of the MV Theben. The
Chief Engineer of the Theben gave everyone a tour
of the engine room (as well as the rest of the ship)
from a firefighting perspective. The tour provided a
unique opportunity to familiarize fire departments
with the firefighting abilities of the vessel and her
well-trained crew.
This kind of collaboration is vital to ensure that best
practices are shared and that safety is at the top of
everyone’s agenda.
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Wallenius Wilhelmsen – Annual Report 2023
18, all our vessels had left the area and were safe. The danger and risk in this area
continues to be a factor in disrupting our business, however our commitment to
making decision for the right reasons and keeping our seafarers safe remains at
the forefront. We will continue to monitor closely the changes in activity in the area
until the risk has returned to acceptable levels.
To bring our seafarers closer to what is happening in Wallenius Wilhelmsen, we
tested a digital infotainment solution that will provide a link to every vessel and
all seafarers. We will be able to stream company communications, news and arti-
cles, recordings from management and webinars, in addition to a welfare package
consisting of a library of feature movies, TV and international news.
In 2023, Wallenius Wilhelmsen held our first fully joint officer conferences bringing
together over 130 seafarers from seven nationalities and two ship management
companies. Each event aims to provide education, company direction and key
strategic messages and giving our officers an opportunity to meet peers, manag-
ers and executives from different regions, departments, and vessels, and most
importantly to have a little fun whilst learning.
Our ambitions and goals on safety, sustainability and technology were top of the
agenda this year. Seafarers play a big role in executing our strategy and reaching
our ambitions. For Wallenius Wilhelmsen, the Officer’s Conferences are also a way
of recognizing the seafarers’ hard work and dedication, and to thank them for their
loyalty and strong commitment to us.
We experienced two serious injuries to seafarers in 2023. Both incidents involved
mooring operations and a safety campaign was launched within our ship manage-
ment companies to highlight the dangers and safe working practices during moor-
ing. Sadly, we experienced one fatality in January 2024 when a crew member of
EUKOR’s Morning Lisa tragically died while performing cargo operations onboard
in the Port of Bremerhaven, Germany. Our heartfelt condolences go to his family
and friends. The incident is currently being investigated and highlights the impor-
tance of continuously working on improving safety in our business.
At sea, the lost time incident frequency (LTIF)
1
was 0.56 at the end of 2023, well
below our target of 1.0.
1 Lost Time Injury Frequency (LTIF) is the number of fatalities and lost work-day cases per 1,000,000 (1 million) work hours for land
based employees. For seafarers, exposed hours used.
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Wallenius Wilhelmsen – Annual Report 2023
This year, Wallenius Wilhelmsen made good progress in promoting the safety and
well-being of our employees on land. During 2023, we achieved our plan to have
all facilities in the Americas, which is our largest region, certified to all three ISO
standards – 14001, 9001 and 45001. The transportation activities will be certified
in 2025, and global certification will follow. We also launched several successful
safety campaigns, including the Safety Survey, Speak-Up, and Dare to be Aware
Safety Awareness Campaign, to empower our employees to voice their thoughts
and ideas on safety.
We also celebrated our safety rock stars and acknowledged the hard work and
dedication of all our employees in maintaining safety standards. The Global Safety
Committee has seen a surge in participation, with leadership from around the globe
joining the conversation and sharing insights. This has led to enhanced collabora-
tion and best practice sharing, allowing us to proactively address safety concerns
and make positive impacts across our operations.
In addition, we have arranged RoRo Rodeo events at our Baltimore and Southamp-
ton terminals, bringing together experts from major machinery manufacturers and
stevedores to upskill our operations team on safe and efficient cargo handling.
These events provide hands-on training on cargo securing techniques, ergonomic
safety, damage prevention, and sustainability.
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People
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Wallenius Wilhelmsen – Annual Report 2023
A “new normal” way of working has emerged since COVID-19. We are now balanc-
ing remote and hybrid attendance to meet employees’ desires for more flexibility
and the need to maintain and strengthen our company culture. The impact differs
across geographies with most of our Asian and European employees having returned
to the office, whilst remote and hybrid work has become common in the United
States. We are currently developing our people strategy which will focus on flexible
labor models and labor mobility and we are educating both human resources and
operational leaders in positive employee relation, culture and training. The aim is
to secure our resource needs whilst meeting new expectations.
Along with our physical safety efforts, we are continuing to promote mental health
and well-being. We provide mental health first-aid training in the US, mental health
courses in the UK and an annual wellness allowance in Sweden. We also have Evol-
uno, an app that encourages employees to reflect on their mental well-being, micro
learnings and how to reach out for professional help. The Employee Assistance
Programs which were launched in 2022, saw a surge in participation in Belgium,
Brazil, Panama, El Salvador, and Mexico. In Asia, extensive initiatives and training
have been provided on mental health, occupational health and safety.
This year, logistics has made progress in ensuring the safety of our employees
and multiple locations have achieved the milestone of 1,000 days without lost time
incidents (LTIs). Indeed, the team at North Little Rock EPC, USA, stood out with over
1,800 injury-free days and 44 percent of our facilities achieved zero LTIs this year. The
PIRT Terminal in South Korea received an ‘A’ grade in the Hyundai Glovis 2023 Safety
and Health Assessment for the second year and was praised for safety excellence.
The lost time injury frequency (LTIF) was 14.33 in our logistics operations with 227 lost-
time injuries for staff and contractors. Whilst this is almost a 10 percent reduction,
it is above our 2023 LTIF target of 14.15 and we will continue to prioritize safety and
continuously strive to improve our safety culture. Even though the LTIF is compa-
rable to the industry average in countries such as the US, it remains a priority to
further improve our safety performance. We are focusing on the facilities that have
had the highest numbers of incidents and recurring root causes. We anticipate
improving our management procedures and outcomes in 2024 by pursuing the
ISO 45001 Health and Safety standard for our operations. This includes 45 facilities
that are about to be certified.
The absenteeism for logistics increased from 2.53 percent in 2022 to 3.37 percent
in 2023.
How will we proceed?
Improving our safety performance and safeguarding our people’s health and
well-being will continue to be a top priority for the company in 2024:
•
Strengthen our health & safety management system by certifying our
operations to ISO 45001 health and safety standard.
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2. Human and labor rights
Why is it important?
As a global company, we operate in many different regions and countries. Identi-
fying relevant human rights risks and understanding how we may mitigate them
is critical for us as a company and for our stakeholders. We recognize the UN
Universal Declaration of Human Rights and the International Labour Standards
2
.
The company also follows the requirements of the Norwegian Transparency Act
3
,
and the Minimum Safeguards of the EU Taxonomy. These regulations require that
companies carry out due diligence in their value chains, develop governance and
management, provide grievance mechanisms and report on progress. This section
encompasses reporting to meet the requirements of the Norwegian Transparency
Act. Please also refer to our separate statement on the website related to the UK
Modern Slavery Act.
How do we work?
Wallenius Wilhelmsen’s commitment to human rights is anchored in our code of
conduct and specified in our human rights policy, both of which were updated in
2023. Our expectations of suppliers are communicated through our supplier code
of conduct, which key suppliers are requested to confirm.
Our approach to human rights due diligence and identifying and addressing
human rights issues are guided by the OECD Guidelines for Multinational Enter-
prises
4
and UN Guiding Principles on Business and Human Rights
5
. The assess-
ment is updated annually and involves a desktop analysis and workshops with a
dedicated task force representing key functions and geographies. Human rights
aspects are assessed across the value chain to determine which ones are the most
important for us. For the relevant risks, scenarios are determined and likelihood
and impacts defined and assessed to prioritize key risks and mitigating actions.
Should Wallenius Wilhelmsen, through its actions, directly cause or contribute to
harmful human rights impacts, we will seek to promote access to and/or provide
fair remediation. Our group-wide whistleblowing channel, the AlertLine, includes
concerns relating to human rights and is managed by an independent third party
to ensure confidentiality and protection of stakeholders. We have also established
a dedicated communication channel for information requests as required by the
Norwegian Transparency Act. We did not receive any queries in 2023.
2 LO declaration on fundamental principles and rights at work
3 Norwegian Transparency Act – PDF
4 OECD Guidelines for Multinational Enterprises on Responsible Business Conduct – PDF
5 Guiding Principles on Business and Human Rights – PDF
Key performance indicator 2022 actual 2023 target 2023 actual 2024 target
Confirmed cases of severe
human rights incidents
connected to our workforce
0 0 0 0
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How did we perform?
During 2023, we strengthened our governance and management on human rights
by developing a human rights framework specifying responsibilities and proce-
dures. In addition to the dedicated human rights task force, we also established a
human rights committee consisting of key management representatives, including
the CEO, to manage information requests and severe concerns of human rights
incidents. We revised our scenarios and updated the group executive team and
the board of directors on the status of our work.
To increase our understanding of regional human rights risks, we conducted work-
shops with our Korean and wider Asian logistics operations. This included specific
workshops with management, legal, safety and human resources. To reach employ-
ees whose first language is not English, we translated our training course on human
rights to Spanish and Korean.
An overview of the key scenarios that were identified in 2023 and actions taken to
mitigate them is provided below:
•
Contributing to climate change through our operations: The UN has
acknowledged “a clean, healthy and sustainable environment” as a
human right
6
. Since our vessels’ emission of greenhouse gases is our
largest impact on the environment and thereby posing a risk to human
health, safety and well-being, we identified climate change as a key risk
in our scenario assessment. During the year, we undertook a thorough
evaluation of different pathways to become net zero. The outcome was a
transition plan to become net zero by 2040. Please see the Planet section
for more details.
•
Stowaways on vessels: Human traffickers and smugglers can be behind
stowaways onboard our vessels and stowaways are at risk of becom-
ing victims of modern slavery upon arrival. We experienced seven stow-
aways in 2023. When stowaways are found on a vessel after leaving the
port of departure, guidelines are in place as prescribed by IMO in Resolu-
tion 13 (42): FAL Convention and strictly followed. P&I clubs are consulted
to ensure the safety of stowaways when considering potential ports for
disembarkation. We also cooperate closely with port and terminals to
prevent this illegal activity. Mitigating actions at high risk areas are ongo-
ing and include clearly visible crew, ID-checks, security guards at the entry
points of the vessels, CCTV-systems, manual cargo inspections and ther-
mal screening cameras.
•
Migrants in distress picked up at sea: We did not encounter any migrants
in distress at sea during 2023. However, as people, unfortunately, still risk
their lives by crossing the seas in search of a better life, it remains a key
scenario for us, and we recognize our duty pursuant to international law
for ships to (attempt to) rescue persons in danger at sea. Should migrants
in distress be picked up at sea, we follow the practice as per IMO, includ-
ing the 1982 UN Convention on the law of the sea and the 1974 interna-
tional convention for the safety of life at sea as well as advise by local coast
guards.
6
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•
Safety of seafarers in the Red Sea: Due to the threat to our seafarers’
safety following the attacks to commercial vessels by the Houthi rebels,
we decided to re-route all vessels around the Cape of Good Hope. Please
see the safety section above for further information.
•
Drug trafficking criminals infiltrating our operations: Unfortunately, global
drug markets continue to expand and criminals target merchant ships by
concealing drugs on board, within the cargo, or by attaching drug-filled
containers to the underwater hull. Container vessels are more at risk, but
RoRo vessels such as ours are also affected in certain regions.
As part of our security management, we conduct regular security assess-
ments, develop and implement security plans, and provide training and
drills for personnel. Awareness campaigns to encourage our workers
to “see something – say something” are also run. In addition, we liaise
with industry forums such as the IMO and the World Shipping Council to
address this risk. We cooperate fully with authorities when they conduct
inspections whilst supporting our crew and terminal workers during inves-
tigations to protect their rights. See section on security and emergency
response for further information.
•
Supply chain risks: Our new group procurement policy refers to the
supplier code of conduct and describe risk assessments of suppliers
which include human and labor rights, climate and environment and
ethical conduct. We have also strengthened our integrity due diligence of
business partners and the procedures specifically includes human rights
assessments.
More emphasis was put on shipyards this year as building new vessels
represent our greatest investments, and because human and labor rights
risk have been associated with the industry. Please see the section below
on shipyards and the sustainable supply chain in the Prosperity section.
During 2023 Wallenius Wilhelmsen improved the monitoring of our vessel
asset condition, safety and quality standards and increased our teams in
Europe and Pyeongtaek, South Korea, conducting inspections and collab-
orating with crew to identify their challenges and improvement opportuni-
ties. These inspections come in addition to the compulsory maritime labor
and port authority controls and have proved fruitful already in identifying
areas or vessels for improvement and we aim to have a vessel standard
condition set in Q1 2024.
•
Ship recycling: We have kept our focus on eliminating adverse human and
labor right impact in the area of ship recycling for decades. We were one
of the founding members of the Ship Recycling Transparency Initiative
and are now part of its steering committee. Our responsible ship recycling
policy was updated in 2023, reinforcing our commitment. We also contrib-
uted to TradeWinds’ Ship Recycling Forum conference to advocate for the
importance of responsible recycling as well as to gain insight into regula-
tory and industry developments. Whilst we did not recycle any vessels in
2023, we closely follow regulatory developments such as the newly ratified
Hong Kong Convention to be prepared for when a vessel reaches its end of
life.
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•
Armed guards on vessels and land based facilities: During 2023, we did
not engage any armed guards during transits of our vessels. However, at
certain land-based facilities in high risk zones, we have been obliged to
have armed guards to ensure our workers’ safety. The guards are provided
by vetted security companies.
•
Working hours for truckers: Whilst we are working with our truckers to keep
their working hours at a reasonable level, this is a challenge for the indus-
try and us. During 2023, we implemented a tracking system to monitor our
truckers driving hours. We will further work on this as we progress with the
ISO 45001 certification in 2024.
•
Discrimination and harassment: Non-discrimination and harassment
have a dedicated chapter in our code of conduct and it is integrated into
our management procedures. Please see section on diversity, equity and
inclusion (DEI) below.
There was one reported case in 2023 of inappropriate behavior between a
seafarer and a stevedore.
•
Employee and supplier information privacy: Please see how we address
this risk in the governing elements in the principles of governance section
below.
How will we proceed?
We will develop our human rights due diligence by:
•
Continuing to raise awareness of the group’s human rights policy and
implement it in all parts of our company and towards suppliers
•
Continuing to expand our stakeholder engagement to a wider group of
internal stakeholders and consult external stakeholders such as NGOs or
industry network
•
Updating the human rights scenarios
•
Presenting initiatives and results to management and the board
•
Strengthening our assessment and monitoring of risks in our supply chain
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Diversity, equity and inclusion
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3. Diversity, equity and inclusion
Why is it important?
Our employees, with their diverse backgrounds and experiences, cooperate closely
across borders and time zones, making Wallenius Wilhelmsen a truly global company.
We aspire to be a workplace where everybody feels safe and well, where we get
the opportunity to realize the best version of ourselves and learn from each other.
Diverse and inclusive organizations are innovative, they make good decisions and
perform well. In other words: We aspire to “make a rock star of every employee” by
supporting all employees to:
•
Realize their full potential
•
Be empowered through strong teams
•
Be encouraged to drive innovation and development by challenging
status quo
How do we work?
Our board of directors and senior management are committed to the work with
diversity, equity and inclusion (DEI) which is anchored in our code of conduct. The
code explicitly states that discrimination based on race, color, religion, gender, age,
nationality, sexual orientation, disability, or any status protected by law is prohibited.
We strive to provide everybody with equitable treatment and opportunities when
recruited, in day-to-day work performance and in promotion processes.
During 2023, we further implemented the “Be a rock star of your own career” initia-
tive that was launched in 2022. It aims to strengthen and motivate employees and
increase leaders’ awareness that happy employees who get opportunities to grow
and experience success in their roles, deliver better results. Leaders should help
employees shine, and colleagues should help each other become rock stars. It is
our way of building an inclusive workforce and a growth mindset. We monitor our
employees’ perception of the working environment and our progress on develop-
ing an inclusive culture through the DE&I score in our bi-annual employee survey.
A new HR platform called OnePeople, which utilizes the Workday system, was imple-
mented in 2023 and represents a strategic investment for Wallenius Wilhelmsen.
Workday is a digital platform for people data and processes that will improve deci-
sion-making, compliance, feedback and performance. By having standardized
processes and one place to store and access all employee and organizational
information, we now have reliable and consistent reporting across the regions
and business units. It also provides a platform for dialog with non-office workers.
The platform makes it easier to adhere to global and local legislation, implement
global policies and best practices. Workday provides uniform data definitions and
formats which will improve the quality and comparability of the workforce data and
analytics. This will enable the company to gain more insights into workforce trends,
issues, opportunities, and to develop and execute effective human capital strategies.
Key performance indicator 2022 actual 2023 target 2023 actual 2030 target
Diversity of senior management
65:35 (M:F) i 2030
22 - 23 40
1
1 At the start of 2024, we signed the Wista 40 by 30 pledge.
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How did we perform?
In 2023, our new executive management team was established and consists of 50
percent women, up from 29 percent in 2022. The share of women in senior manage-
ment positions improved slightly from 22 percent in 2022 to 23 percent in 2023.
Of our approximately 2,596 office workers, 42 percent are women, whilst women
constitute only 19 percent of all production workers. Change starts from the top
and we have achieved gender balance in our executive management. Our indus-
try has historically been male-dominated and it is a priority for us to create better
balance across employment categories.
We are strengthening our DEI work as part of our People strategy to attract talent
from a wider labor market. The strategy will focus on expanding the potential
employee pool and varied scheduling to meet our resource needs. We are review-
ing employee benefits to ensure that they fulfil the needs of our current and future
workforce. Additionally, we are educating both human resources and operational
leaders in positive employee relations culture. We provide training to ensure that we
during recruitment seeks diverse candidates and that the interview and selection
process is inclusive in the Asian and Nordic countries, as well as in the United States.
Particularly our Asian HR team has implemented numerous initiatives to promote
DEI. This includes developing a local DEI strategy, establishing a dedicated chan-
nel for DEI policies, guidelines and learning resources and providing a broad train-
ing program on a wide range of topics such as (sexual) harassment and bullying
and to promote and protect the rights and inclusion of disabled persons and raise
awareness on the needs for pregnant colleagues.
At the start of 2024, the company created a new senior role to strengthen our orga-
nizational development further.
Wallenius Wilhelmsen Executive
Reaches Top 10 in the Top 100
Women in Shipping
Mary Carmen Barrios is no stranger to the Top 100
Women in Shipping list by Allaboutshipping.co.uk.
This year, however, out of the 1,350 nominations, she
made it to number 7. A result she wasn’t expecting
but doesn’t take lightly. She says, “It’s not just about
being ranked in the list but to be included among
other well-known, outstanding women.” She contin-
ues, “the important part is inclusion and diversity,
regardless of your ethnicity, creed, or age. That’s
what it’s all about, creating awareness to the fact that
women are adding and creating value to an industry
with thousands of years of tradition and history.”
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With the HR system Workday, we have both a better basis and process to analyze
workforce trends and can develop our future DEI strategy and targets to fully imple-
ment our policy. This had to be put on hold in 2023 due to the implementation of
Workday. Our previous target for gender ratio for office workers in senior manage-
ment of at least 35:65 (f/m) by 2030 will therefore be replaced. Our CEO and CPO
are strongly committed to improving our diversity.
Wallenius Wilhelmsen’s CEO is first male to receive WISTA award
An annual accolade that’s been around for 17 years,
the WISTA Norway Leadership Award, is awarded by
WISTA (the Women’s International Shipping & Trans-
portation Association) to someone in the Norwegian
maritime industry who embodies the group’s core
values of being professional, dynamic, open-minded,
and above all, committed to gender equality. The
awardee must also have contributed to the indus-
try’s development in some way.
This year’s ceremony was unprecedented, as Walle-
nius Wilhelmsen’s CEO became the first man to
receive the award. Stine Mundal, President of WISTA
Norway, said: “Kristoffersen is a visible and inspiring
leader. He has led by example, been vocal about the
urgency, and been committed to securing female
competency and representation in the Norwegian
shipping industry.”
When presented with the award, Kristoffersen felt
honored and stressed that his efforts should be the
norm rather than the exception: “We have only just
begun; this is a continuous work.”
Senior management: New hires to senior roles:
23% Women 25% Women
77% Men 75% Men
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To ensure we use objective, fair and equitable salary practices, we apply the meth-
odology developed by the consultancy firm Korn Ferry Hays. Their methodology is
internationally recognized for an objective evaluation of positions and salaries. By
utilizing this methodology, we assess the competence and experience required for
positions, and ensure that we stay competitive by assessing our salary practice in
all markets. The compensation and benefits team was strengthened in 2023 and
when implementing Workday, we got more comprehensive and accurate data which
allowed us to analyze our reward practice in more details and identify improvement
areas such as unintentional pay disparity and inconsistent remuneration practices.
For information regarding our diversity and equal opportunities for our Norwegian
operations, please see our reporting in accordance with local anti-discrimination
regulation.
Senior management – Earnings ratio
7
women:men
Other employees – Earnings ratio
8
women:men
How will we proceed?
Going forward, we will:
•
Develop a new people strategy which will include a program for
implementing our DEI policy and meeting our pledge to Wista 40:30
•
Conduct a global gender pay compensation analysis
•
Continue to close the pay gap
•
Launch and implement our new values
7 The ratios are highly influenced by the gender distribution in the organizational hierarchy. This is office-based employees.
8 Excluding apprentices, fixed term and temporary employees. This is office-based employees.
Norway
98%
Sweden
118%
United States
91%
Korea
92%
Norway
89%
Sweden
87%
United States
80%
Korea
77%
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Training & development
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4. Training & development
Why it is important?
Training and development are central to how we learn as individuals. As an orga-
nization, we prioritize the development of all employees globally. Developing new
skills and knowledge of technical and scientific developments and best practices
are important to build a strong, competitive workforce. We believe that well-sup-
ported employees are more productive, and more engaged in business.
How do we work?
GoGrowSucceed is the company-wide platform to manage our employees’ profes-
sional development objectives and assess their performance and development
with their managers. The aim is to foster structured engagement, feedback, moti-
vation and allow for an enhanced coaching relationship between managers and
team members. GoGrowSucceed has evolved to include coaching and mindset
questions as well as performance standards to make it clear what signifies a top
performer and to further develop a collaborative culture, i.e. it covers not only “what
to do,” but also “how to do it” in keeping with our values.
We believe that the most relevant learning and development occur in the day-to-
day work. Still, systems, best practices and knowledge evolve and we continuously
need to upskill our employees by providing a combination of digital and in-person
training. In addition to mandatory training sessions, e.g. on the company’s code
of conduce, the company provides open enrollment in e-courses through iLearn,
our digital training platform. We aim to motivate employees to develop their own
learning journey to bolster career progress and motivation.
We believe in the power of connections
to support our people, provide an
improved employee experience, and
help people perform at their best.
Key performance indicator 2022 actual 2023 target 2023 actual 2024 target
Average hours training
per employee
3.67 - 28.83 -
Average training hours per
employee (senior / general
managers and above)
1.3 - 48.6 -
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How did we perform?
During 2023, we had several training and development initiatives and an overview
is provided below:
•
Code of conduct: New employees receive training on the code during their
onboarding and all employees are required to confirm that they have read
the code of conduct.
•
Global leadership program: The company’s global leadership develop-
ment program for selected team leaders is designed to optimize leader-
ship skills and enhance career growth potential. In 2023, 33 participants
participated in the eight-month long academy-style program, and 30 more
employees are enrolled for 2024. Participants began their experience with
a three-day in-person program focused on leading themselves, and a
second session focussing on leading others. Participants will continue to
work with individual coaches, personalized learning trios as well as partici-
pating in virtual workshops focused on critical leadership topics and skills,
including inclusive leadership.
•
iLearn: In 2023, 4,065 employees completed online training in 2023. This
is an increase of 6,8 percent from 2022, and includes both required and
non-required courses. Employees spent more than 100,000 hours dedi-
cated to their growth and development, this equates to an average of 28.8
hours of training per active user. This is a 780 percent increase compared
to 2022, this was due to increased training as part of our Learning and
development program (LDP) and training in connection to our new Work-
iva platform. Additionally, there was an increase in learning content, 404
courses were added from over 47 providers in English and Spanish.
•
Human Rights: We launched a gamified training on human rights in 2022
to raise awareness and understanding of how we as a company impact
human rights and also how our colleagues can support them in their daily
lives. In 2023, the training was translated to Spanish and Korean to reach
employees whose first language is not English. The training is part of the
onboarding of new employees.
•
Cyber security training: An updated gamified training on cyber security
was launched in November 2022 and is mandatory for all new employees.
•
Sustainability training: The gamified training on sustainability which was
launched in 2022 and part of our onboarding program, aims to upskill
our employees on sustainability topics and how our company works with
transitions.
•
We added a content library of more than 400 courses covering a range
of professional development topics.
How will we proceed?
•
In 2024, we will continue our transition to digital learning, enhancing our
ability to deliver new knowledge and skills to all our colleagues, regardless
of their location.
•
Expand the Workday system to include a learning management system.
This will ensure easier and seamless integration of our people develop-
ment efforts.
Planet
The world faces a climate and nature crisis, and there is an urgent need
for action. By decarbonizing operations and reducing our environmental
footprint, we will be a part of the solution in transitioning to a low-carbon
society. As a leading provider of logistics services, both on land and at
sea, we work to minimize and responsibly manage our impact on natural
environments. Wallenius Wilhelmsen adheres to the scientific consensus
on climate change and supports the Paris Agreement.
Contents →
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Planet
Greenhouse gas emissions (GHG) and climate risk
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Wallenius Wilhelmsen – Annual Report 2023
To manage our impact on the planet, we monitor, manage and report on four
material topics:
1. Greenhouse gas emissions (GHG) and climate risk
2. Biodiversity
3. Air quality
4. Waste management
1. Greenhouse gas emissions (GHG) and climate
risk
Why is it important?
Nearly all (99 percent) of our scope 1 CO
2
e emissions relates to seagoing trans-
portation. Although shipping in general has a much lower carbon intensity per
tonnes-km transported than air and land-based transportation, it constitutes about
three percent of annual CO
2
emissions globally. To most, there are no alternatives to
seagoing transportation. International shipping carries about 90 percent of world
trade, and the volumes of goods are predicted to increase significantly toward 2050.
Wallenius Wilhelmsen is the leading player in global RoRo shipping and finished
vehicle logistics. As an important infrastructure player, we want to be a shaper
in finding and using solutions towards transitioning to zero emissions, not being
solely an adaptor to the emerging developments. We can make lasting competitive
advantages when we lead the journey to zero emissions.
Key performance indicator 2022 actual 2023 target 2023 actual 2024 target
EEOI 30.38 31.16 27.69 28.7
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How do we work?
To strengthen how we how we manage our transition to net zero emissions, the
company assembled the Orcelle Accelerator task force in early 2023. The task force
consists of dedicated resources and report directly to the CEO. The task force is
mandated to orchestrate Wallenius Wilhelmsen’s energy transition by enabling
synergies across the group, and build partnerships with customers and technol-
ogy providers.
During 2023, we participated in various external
industry seminars, conferences, and events focusing
on energy efficiency and emission reduction initia-
tives. As part of our commitment to driving sustain-
able shipping practices, we joined the Mærsk Mc-Kinney Møller Center for Zero
Carbon Shipping as a mission ambassador. Additionally, we have attained partner
status in both the Green Shipping Program and Maritime CleanTech, a Norwegian
private-public industry collaborator dedicated fostering environmentally friendly
shipping practices. Furthermore, we are part of the European Union’s Horizon Europe
Framework program, where EUR 9 million in funding was secured to support the
development and construction of the Orcelle Wind, the world’s first wind-powered
car carrier. This underscores our dedication to innovative solutions that pave the
way for a more sustainable maritime industry.
Wallenius Wilhelmsen calls for accelerated energy transition at COP 28
In December 2023, Wallenius Wilhelmsen joined a
coalition of leading shipping companies who went to
the UN’s Climate Change Conference, COP28, with a
focused message for world leaders: Do more, faster.
A group of CEOs from Wallenius Wilhelmsen, Maersk,
Hapag-Lloyd, and others, gathered together in
person at COP28 to make sure their message was
heard: Global temperatures are breaching criti-
cal levels, creating more frequent and devastat-
ing results. Therefore the importance of shipping
achieving the International Maritime Organization’s
(IMO) 2030, 2040, and net zero 2050 greenhouse gas
(GHG) targets is very clear. The only realistic way to
meet these targets is to transition from fossil to low
carbon fuels – at scale – and at pace.
“We believe that even closer collaboration with IMO
regulators will produce effective and concrete policy
measures needed to underpin the investment within
maritime shipping and its ancillary industries that
will enable decarbonization to occur at the pace
required,” said Lasse Kristoffersen, President and
CEO at Wallenius Wilhelmsen.
This call to action puts the coalition at the forefront
of an industry that generates 2-3 percent of the
world’s annual emissions. “At Wallenius Wilhelm-
sen, we have decided to be a shaper of the journey
to net zero and focus our investments in supporting
this ambition. Our customers want to partner with
us on the voyage. Now, we need a global regula-
tory framework matching this ambition to drive the
investments needed at a global scale,” explains
Lasse Kristoffersen.
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Our transition plan towards net zero by 2040
In 2023, the Orcelle Accelerator task force explored alternative scenarios and projec-
tions on how to reach net zero for Wallenius Wilhelmsen. By identifying a range of
decarbonization levers and utilizing detailed operational data and assumptions on
costs and the effect of each lever, we were able to project pathways to net zero by
2040. These levers included technical and operational initiatives to increase energy
efficiency, in addition to alternative fuels for the current and future fleet.
We found that achieving net zero by 2040 is a challenging, but still a feasible emis-
sion target, in line with the Paris agreement. To meet the challenge we are ready to
put all hands on deck and direct significant investments to reducing the emissions
of our current fleet, constructing near zero fuel capable vessels and eliminating
emissions from our land-based operations. We will also rely on achieving negative
emissions elsewhere to offset any residual emissions in our value chain. The exec-
utive management and subject matter experts across the group were engaged in
this project and the board of directors gave in December the final approval of the
transition plan to become net zero by 2040.
Our journey to net zero will have three main phases:
•
The critical 2020s: We need to turn every stone to maximize the energy
efficiency of our current assets, both on land and at sea. As we are not
assuming any early retirement of existing vessels or equipment, we need
to reduce fuel consumption in line with the net zero 2040 trajectory.
Energy efficiency will not only help reduce fuel consumption, but it will also
reduce the need for biofuels.
•
The decade of transition: During the 2030s, we need to replace the major-
ity of our current fleet with new fuel-capable vessels as they age out at
around 30 years. Drop-in fuels on existing vessels, such as e-fuels and
biofuels will play a major role in decarbonizing the existing fleet during this
transition, and to keep us on the emission trajectory.
•
A new reality: From 2040, the majority of our fleet will have transitioned to
new fuels. However, energy efficiency continues to play a vital role in a high
fuel-price environment.
To say that the journey towards net zero by 2040 will be challenging is an under-
statement, and we need to be prepared to reshape the transition plan to adapt to
changing realities, such as new technologies and opportunities. That said, it is a
challenge that we welcome and will face head on so that we can play a part in help-
ing to mitigate the climate crisis and shape our industry. A focus for 2024 will be to
integrate the decarbonization strategy into our management system.
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Greenhouse gas emissions (GHG) and climate risk
Contents →
Wallenius Wilhelmsen – Annual Report 2023
Our journey to net zero happens every day, on our ships, at terminals and
processing centers
For our logistics activities, which include terminals, equipment and vehicle process-
ing centers, we are introducing many initiatives to improve our energy efficiency. The
majority of direct GHG emissions from logistics services are related to fossil-pow-
ered equipment such as semi trucks for short distance transportation to long hauls;
forklifts and trucks used to move cargo, and mini-vans used for crew transportation.
Our clean fleet initiative requires that all equipment purchases as of 2023 must
be zero-emission. In addition, we will build charging infrastructure for our on-site
equipment and contribute towards building local renewable energy production such
as wind turbines and solar panels. We will also shift our purchasing of electricity
to prioritize renewable and low-carbon sources to lower our Scope 2 emissions.
In 2023, three EV semi-trucks entered operation between the Port of Savannah and
our equipment process facility (EPC) in nearby Pooler, including local deliveries.
This as an effort to reduce carbon emissions from land-based operations by part-
nering with the company Einride to pilot electric trucks in Georgia, USA. We also
added one EV semi-truck in Carlisle to transport cargo from the Port of Baltimore
to our EPC in the area. In Southampton, England all non-electric equipment is now
running on HVO100 biofuel.
We placed an order for 72 pieces of electric terminal equipment, including forklifts
and reach-stackers. They will be delivered at the end of 2024 and represents the
largest green investment for logistics. This comes in addition to the electric 18T fork-
lift and 4 EV shuttle vans that entered service at our Zeebrugge location this year.
In shipping, a multitude of initiatives were undertaken to improve vessel energy
efficiency and reduce emissions across the fleet this year, with good results. At the
same time, we expanded the portfolio of possible vessel upgrades in line with our
strategic ambition to intensify efforts in this critical area.
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Greenhouse gas emissions (GHG) and climate risk
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Wallenius Wilhelmsen – Annual Report 2023
We successfully implemented a cutting-edge AI solution (Pythia) for speed and route
optimization onboard 83 vessels. It provides live speed advice guidance to voyage
operators and vessel masters. This tool leverages sophisticated machine learning
algorithms that combine route information, vessel sensor data and weather fore-
casts to minimize fuel consumption and CO
2
emissions by up to 10 percent. The
integration into Wallenius Wilhelmsen’s operations marks a revolutionary milestone.
We installed an engine optimization support software on all owned and bareboat
chartered vessels. This tool continuously evaluates main and auxiliary-engine perfor-
mance data and provides actionable improvement recommendations to the crew.
Furthermore, we partnered with our principal main engine supplier to upgrade the
engines for enhanced performance and placed orders for 62 of 78 planned vessels.
Bulbous bow retrofits were success-
fully completed on three vessels to
significantly improve hydrodynamic
performance. A fourth vessel is sched-
uled for 2024. Optimization projects
were initiated for additional vessel
series, with plans for future retrofits.
The fourth vessel, Tirranna, will also
get a new rigid sail system for wind-as-
sisted propulsion installed in 2024. It
represents the inaugural full-scale test
of such a system on a car carrier and is
an important step towards the realiza-
tion of the Orcelle Wind project.
Variable frequency converters were installed on several vessels, enabling reduced
energy consumption through dynamic operation of main pumps and fans based
on actual load demand, with many more vessels to come. Additionally, we started
a project for large-scale transitioning to LED lights, to save energy and improve
lighting conditions.
The Hull Skater, an innovative hull inspection and cleaning robot, is now installed
and utilized on 19 vessels to maintain cleaner hulls to conserve fuel and mitigate
the risk of transferring invasive microorganisms. Furthermore, we concluded trials
and initiated another test of technologies aimed at propeller fouling protection.
50 of 54 vessels completed upgrades limiting available propulsion power to facil-
itate conditions for fuel savings. We also contracted one vessel to trial modifica-
tions to its main engine turbochargers, enhancing performance at lower and part
load levels. Feasibility assessments of other energy saving technologies were also
conducted or initiated internally and in collaboration with industry partners.
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Greenhouse gas emissions (GHG) and climate risk
Contents →
Wallenius Wilhelmsen – Annual Report 2023
Improving data quality and easing emission reporting:
We developed and implemented internal digital tools and dashboards for emis-
sion monitoring and decision support. Additionally, we executed a comprehen-
sive replacement of the vessels’ onboard reporting system, extending fleet-wide
coverage to long-term charter vessels, and enhancing shore-based data captur-
ing processes. These initiatives significantly enhance the quality of vessel emis-
sion data, provide deeper insights into actual operations, and establish a stronger
foundation for analysis and decision-making to optimize energy efficiency further.
Exploring new fuels:
Our journey towards zero-emissions will be stepwise
and in the short and medium-term the focus will be
on energy efficiency improvements and use of biofu-
els. Low carbon fuels will gradually be introduced
and play a key role in the medium to long-term.
The fuel options will depend on vessel technology;
the existing fleet can use various types of drop-in
biofuels, while new vessels ordered with dual-fuel
possibilities, will be able to also use green methanol
or ammonia. Other future possible fuels and fuel
technologies are also being monitored.
In 2023, a B30 biofuel blend product was success-
fully and safely bunkered and used on three vessels.
B30 contains 30 percent biofuel feedstock and
70 percent conventional fuel and brings up to 24
percent lower CO
2
e emissions. We have gained solid
knowledge and established fleet guidelines and
in-house quality specifications for biofuel usage.
Biofuel is now an integrated part of our fuel mix and
is established as a low-carbon service offering to our
customers. In 2024 we will see a significantly ramp
up of biofuel consumption for selected vessels.
Looking ahead to 2024 and beyond, our focus remains on advancing the portfo-
lio of energy efficiency initiatives. We will extend ongoing efforts to more vessels,
enhance the utilization of technology solutions like Pythia, pursue additional vessel
retrofits and upgrades, expand biofuel usage, and forge new partnerships to drive
emission reductions.
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Greenhouse gas emissions (GHG) and climate risk
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Wallenius Wilhelmsen – Annual Report 2023
Making biofuel bunker progress
Despite the increasing global availability of biofuels, finding suppliers in Korean
ports has been a challenge. However, we have made significant progress. “As Korea
is one of our major bunkering ports, stable biofuel supply is essential to secure flex-
ibility of tonnage allocation, so I am pleased to have a B30 HSFO trial with GS Caltex,
one of Korea’s major fuel suppliers, and I hope close cooperation will continue in
the future,” says Jang Hongseok, Manager Energy Sourcing.
Collaborating with GS Caltex Corporation is just one of the ways we are leading
change. While the supply of biofuel in Korea is limited for now, pending regula-
tions, this initiative is a critical step toward making sustainable fuel options more
accessible.
Cha Hyungmin from GS Caltex added: “We expect that this B30 Bio-Marine Fuel
(HSFO) trial with Wallenius Wilhelmsen will be a meaningful step for scrubber-in-
stalled vessels of global shipping companies to reduce their carbon emissions
when calling Korean ports.” He continued, “We hope to expand the relationship with
Wallenius Wilhelmsen and support as a carbon reduction solution partner in Korea.”
Tamerlane and Torrens takes Wallenius Wilhelmsen’s first biofuel voyages
Tamerlane was our first biofuel blend bunkering in
Zeebrugge back in July 2023. As a pioneering move in
Korean ports, the M/V Torrens has been successfully
fueled with an innovative B30 HSFO-Biofuel blend
during its scheduled call at Masan Port, South Korea.
This biofuel, a seamless mix of HSFO and UCOME
(bio-feedstock), is a drop-in fuel and can be intro-
duced to current engine systems without need for
modifications
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Greenhouse gas emissions (GHG) and climate risk
Contents →
Wallenius Wilhelmsen – Annual Report 2023
How did we perform?
In 2023, our CO
2
e intensity (EEOI
1
) was 27.69, a significant reduction compared to
our 2022 performance of 30.38 gCO
2
per tonne-km. Our total CO
2
e emissions from
shipping in 2023, 4,125,161 tonnes, nearly half a million tonnes lower than our CO
2
e
emissions in 2022 of 4,546,703 tonnes. A continuous focus on optimizing energy
efficiency and the effect of implementing technical initiatives on our vessels has
contributed to improved performance.
In 2023, our total Scope 1 CO
2
e emissions were 4,125,161 tonnes, of which 99 percent
were related to shipping. From our logistics segment, CO
2
e emissions increased
from 28.3 thousand tonnes in 2022 from 29.5 thousand tonnes in 2023. Logistics’
direct (Scope 1) CO
2
emissions are related to combustion of diesel and petrol fuels
for semi-trucks fork-lifts and on-site vehicles, such as crew-transporting mini-
vans. 80 percent of Scope 1 emissions in logistics are related to diesel and petrol
consumption for transportation, while the remaining 20 percent are related to the
use of natural gas and propane. Natural gas is used for heating and heat treatment
of cargo, whilst propane is mainly used in forklifts.
Tonnes Scope 1 CO
2
emissions per energy source, Logistics
In 2023, Wallenius Wilhelmsen’s Climate Change score from CDP improved to a B,
up from a score of C in 2022 and ahead of our sector’s ( marine transport) average
score of B- in 2023.
1 Energy Efficiency Operational Indicator, gCO
2
e per tonne-km
66%
19,466
12%
3,686
2%
549
20%
5,785
Petrol
Diesel
LPG
Natural gas
Total:
29,486
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Greenhouse gas emissions (GHG) and climate risk
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Wallenius Wilhelmsen – Annual Report 2023
Managing climate risks and opportunities
Climate change creates potential risks for our business, but it also presents oppor-
tunities. Both are part of the company’s long-term strategy, and are assessed regu-
larly as part of our overall risk management. Back in 2021, we identified climate
risks and opportunities across the company, following the recommendations of the
Task-force on Climate-related Financial Disclosures (TCFD). This initial assessment
included desktop research to identify industry-specific risks and opportunities,
and potential timeline of each risk and impact.
Our Top 3 Climate-related risks
•
Transitioning to low emitting propulsion technologies with uncertain
long-term viability
•
Lock-in emitting fuels that become less competitive during ships’ lifetime
•
Increased costs to ensure compliance with emerging regional and
international climate regulations
We expanded on this work in 2022, and the risks and opportunities were reassessed,
categorized and prioritized. The ranking methodology, which was based on the
upcoming EU Corporate Sustainability Reporting Directive (CSRD), considered the
potential impact on Wallenius Wilhelmsen in three different time horizons – short,
medium and long term. The results of this exercise were captured in a Climate Risk
and Opportunities register.
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Greenhouse gas emissions (GHG) and climate risk
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Wallenius Wilhelmsen – Annual Report 2023
Technological Social Economic Environmental
Failure to supply adequate
renewables leading to
stranded assets
Failure of renewable technology
leading to stranded assets
Self-generated renewables
to ensure supply
Customer sentiment - cutting
scope 3 in their supply chain
Regionalization of customer
production.
Exposure of supply chain to
increased charges e.g. tolls,
emissions tax
Consumer sentiment – shift
towards low carbon product
Reduced access to and cost of
capital due to high emissions
Improved access to and cost of
capital due to lower emissions
Temperature extremes
leading to increase fuel
use & emissions
Overview – Transition Risk
Short – < 1 year
Medium – By 2030
Long – By 2050
Impact
Emissions policy & taxes
Risk
Opportunity
How to read these Risk Overviews
Impact Continuation of the use of resources Dependency on the use of resources
Critical Impossible, very costly or unavailable in the short term Strong adverse reaction currently or very likely in the future
Significant
Possible, but costly in the short term, very costly or lacking
in the medium term, impossible in the long term
Adverse reaction currently, strong adverse reaction likely
in the future
Important
Possible in the short term, costly in the medium term,
very costly in the long term
Negative reaction currently, adverse reaction likely in
the future
Informative
Possible in the short, medium and long term Signs of negative reaction currently in the future
Minimal
Without consequence in the short, medium and long term Neutral / no reaction currently and likely in the future
Short
<= 1 yr
Medium
by 2030
Long
by 2050
Impact
Area Sub-category Description
Physical
Chronic & Acute Port Flooding
Acute
Business Interruption/ days down due to weather events
Increased insurance costs due to increased abnormal weather
Increased weather-related accidents
Heat stress on vessel crews and production workers
Increased weather-related damage to infrastructure, cargo and equipment
Variation of speed to make up time lost due to abnormal weather
Increased safety requirements due to increased abnormal weather
Increased traffic interruption due to increased abnormal weather
Overview – Physical Climate Risks
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Greenhouse gas emissions (GHG) and climate risk
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Wallenius Wilhelmsen – Annual Report 2023
In 2023, we conducted two climate risk scenarios based on the Intergovernmental
Panel on Climate Change (IPCC) Representative Concentration Pathways (RCP) 2.6
and 8.5. These represent a future global temperature of 1.5°C and 4°C respectively
and provide both a structured and a disorganized scenario. Projected climate data
has been sourced from CMIP6 for the years 2030 and 2050.
Key insights from our scenario assessments include:
•
Managing technological transition risks will continue to be the focus area
to mitigate financial impact of climate change.
•
Preparing for a 1.5°C degree future will enhance resilience and mitigate
impacts of climate-related financial risks.
How will we proceed?
The following initiatives have been prioritized for 2024:
•
Further enhance our climate risk and opportunities assessment by quan-
tifying the financial impacts of our climate risks and opportunities.
2050
Sta shortages
2030
Failure to supply
renewables
Failure to
transition fleet
Emission policy
and taxes
1.5°C
Structured Transition
4°C
Disorganized Transition
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Biodiversity
Contents →
Wallenius Wilhelmsen – Annual Report 2023
2. Biodiversity
Why is it important?
The importance of protecting the planet’s biodiversity is critical to preserving a
healthy ecosystem that can sustain society. As a global shipping and logistics
provider, our most important aspect includes invasive species in our cargo, ballast
water and through hull fouling, and our vessels’ impact on whales and other ceta-
cean species.
How do we work?
We manage our impact on biodiversity in several ways, including waste reduction,
and avoiding sensitive areas on our journeys. Most importantly, we strive to reduce
the risk of spreading invasive species in our cargo, through ballast water treatment
systems and anti-fouling programs, adhering to our strict anti-fouling standard
and ballast water management policy.
Whale protection
Whales are endangered species and whilst no longer at risk of being hunted, their
feeding and migration routes are often located close to major ports and often
overlap with shipping lanes. They are therefore vulnerable to collision with vessels
and could be impacted by noise pollution. We adhere to mandatory regimes on the
Americas’ east coast which include reporting when entering key whale habitats,
fixed and temporary speed reduction and slow zones. On the west cost of the USA,
due to our efforts to adhere to voluntary speed reduction measures, we received
the Sapphire award in 2023 by the Blue Whales and Blue Skies program. We engage
electronic chart displays and information system (ECDIS) suppliers to add volun-
tary speed reduction regions to electronic maps, although it is not easy to keep
updated with the movements of the whale populations.
Invasive species
We have continued to manage our impacts on biodiversity by installing nine compa-
ny-owned vessels with ballast water treatment systems (BWTS) in compliance with
regulations. By the end of 2023, 90 vessel representing 97 percent of the compa-
ny-owned fleet
2
had a BWTS installed. This is up from 83 percent in 2022. The
remaining 4 vessels of the owned fleet complies with requirements through ballast
water exchange. 100 percent of the owned fleet is enrolled in our hull biofouling
management program. Guided by our biofouling management policy, our manage-
ment program includes regular underwater inspection, hull cleaning, propeller
polishing and dry-docking.
In 2023, as part of the biofouling management program, we completed more than
200 underwater inspections, and nearly 500 individual cleaning operations, includ-
ing hull and propeller cleanings. We also performed 31 dry-dockings where high
performance anti-fouling products were applied.
2 Including bareboat charter
Key performance indicator 2022 actual 2023 target 2023 actual 2024 target
Set target in 2024 after
completing assessment
- - -
Determine
future target
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Biodiversity
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Wallenius Wilhelmsen – Annual Report 2023
We are also at risk of carrying invasive species, such as snails and bugs as well as
seeds in the cargo we transport. This is a growing international concern. The Brown
Marmorated Stink Bug (BMSB) is a relevant example: The bug is native to East Asia,
but has now migrated to the US, Canada and Europe, where it ruins crop harvests
and has had significant economic impact. Measures are also being taken to prevent
the BMSB from entering Australia, New Zealand, Papeete and Nouméa, where its
impact on the ecosystem would be devastating. We have established a biosecu-
rity management plan to reduce this risk. All cargo travelling to these destinations
during the season must undergo either a heat treatment or a stringent fumigation
process. We also inspect for BMSB findings during treatment sessions before ship
-
ment – as well as count findings onboard the vessel during sea voyages.
Water consumption
Water scarcity is an increasing environmental challenge due to the effects of climate
change. Use of potable water on our vessels is mainly limited to consumption by
crew, such as bottled drinking water (reusable bottles). For other purposes, such as
showering and cooking, the water is produced from seawater onboard the vessel.
Our land based operations consume water from municipal sources. This water
consumption can in some instances be significant, especially on sites that offer
vehicle cleaning services. In 2022 we performed a high-level stress test of selected
land-based assets to map exposure to water stress. The mapping identified
3
2 sites
that are located in areas with ‘extremely high’ water stress, and 8 in areas with
‘high’ water stress. All sites are located in either USA, UAE or Australia. We strive to
minimize water consumption at these facilities and to reuse water if possible. We
also collect and use rain water at some sites.
Water consumption in water stressed areas:
The mapping of facilities in water stressed areas and subsequent water consump-
tion is focused on those facilities that already report their water consumption
internally. In 2024, we plan to do a mapping of all facilities and prioritize collecting,
monitoring and reporting the water consumption for the facilities located in areas
with high or extremely high water stress.
3 WRI Aqueduct Water Risk Atlas
Water stress
High Extremely high
Water consumption in 2023 (mega liters) 1.57
1
11.57
1 Incomplete site level reporting of water consumption in high water stress areas.
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Biodiversity
Contents →
Wallenius Wilhelmsen – Annual Report 2023
How will we proceed
•
Conduct an assessment of our impact and dependencies on nature and
biodiversity.
•
Set targets to reduce material identified impacts.
•
Follow the development of the Task-Force on Nature-related Financial
Disclosures (TNFD) and perform a gap assessment against TNFD in 2023.
Workshop sets stage for biodiversity assessment
The protection and sustainable management of
biodiversity and ecosystems are essential to ensure
long-term social and economic stability. In 2023,
Wallenius Wilhelmsen’s sustainability team held a
workshop with external experts to build on our under-
standing of the diverse natural environments where
we operate and how we can use emerging frame-
works to contribute to the goals of the Kunming-Mon-
treal Global Biodiversity Framework.
“This was a fascinating first step,” said Nodin
Midtskog Ennals, Sustainability Manager at Walle-
nius Wilhelmsen. “New requirements combined with
improved frameworks help companies learn more
about the interdependency between nature and
business.” Companies must contribute to halting
and reversing nature loss to mitigate the impact
of climate change and to protect vulnerable and
endangered species.
“In 2024, we plan to do a biodiversity impact assess-
ment, which I believe will improve our understanding
of impacts on biodiversity, and the interdependen-
cies between ecosystems, our operations and finan-
cial conditions,” Nodin continues. “It’s important
for Wallenius Wilhelmsen to take concrete steps to
protect nature, both on land and at sea.”
Photo : Francesco Ungaro / Unsplash
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Planet
Air quality
Contents →
Wallenius Wilhelmsen – Annual Report 2023
3. Air quality
Why is it important?
Our environmental impacts extend beyond carbon emissions. SO
X
and NO
X
are
contributors to acid rain which is harmful to ecosystems and can have an adverse
impact on human health. NO
X
also reacts with other pollutants in the presence of
sunlight to form ozone, which at high concentrations can damage vegetation. We
have a responsibility to reduce our emissions of SO
X
and NO
X
and adhere to global
regulations regarding the emissions of these gases.
How do we work?
Wallenius Wilhelmsen complies with IMO regulations by using scrubbers, or bunker-
ing very low sulfur fuel oil (VLSFO, <0.5 percent) and low sulfur marine gas oil (LSMGO,
0.1 percent max) on ships without scrubbers.
On vessels with scrubbers, the exhaust gases are brought into contact with seawa-
ter by spraying it into the exhaust stream. Through several chemical reactions, the
sulfur is transformed and released to sea as sulfates. In addition to sulfates, the
scrubber wash water may also contain elevated concentrations of other pollutants,
including heavy metals and organic substances. We are investigating how we can
measure the impact on water quality from the release of scrubber wash water.
The scrubbers significantly reduce SO
X
emissions to air, in addition to Particulate
Matter (PM).
Improving our operational efficiency will further reduce our sulfur emissions as we
become more energy efficient and use less fuel. Wallenius Wilhelmsen is consid-
ering a number of different fuel and engine technologies for the future. A shift to
biofuels or zero emission fuels, such as methanol or ammonia, would drastically
reduce, and potentially eliminate, our emissions of SO
X
and PM to air.
Our logistics operations have limited emissions to air. Emissions sources are confined
to fossil fuel powered equipment, vehicles and some natural gas or propane-fired
heating systems for buildings.
How did we perform?
In 2023, total SO
X
emissions of our ocean shipping fleet were 10,167 tonnes. This
is a decrease of 8,27 percent from 2022. There are no more scrubber installations
planned for the fleet.
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Planet
Waste management
Contents →
Wallenius Wilhelmsen – Annual Report 2023
4. Waste management
Why is it important?
Proper waste management is crucial for protecting public health and the environ-
ment. It involves the collection, transportation, treatment and disposal of waste in
a manner that minimizes negative impacts. Improper waste management leads
to littering, air and water pollution, and the spread of disease, as well as damage
to ecosystems and wildlife. On the other hand, effective waste management can
reduce greenhouse gas emissions, conserve resources and protect ecosystems.
How do we work?
Wallenius Wilhelmsen promotes effective waste management and strives to reduce
waste at source, reuse, recycling, properly disposing hazardous waste, and educat-
ing employees on the importance of waste reduction and proper disposal methods.
We sort our waste and use trustworthy waste disposal services to minimize the envi-
ronmental impact of our operations. We also aim to reduce the amount of waste we
generate and divert it from landfills. Our employees are trained on best practices to
optimize resource utilization and prevent waste. We adopt Lean Manufacturing Meth-
odologies which enhance our productivity and efficiency while eliminating waste.
How did we perform?
In 2023, our ocean fleet landed 7,908 m
3
of waste to shore reception facilities. Waste
from logistics services increased this year compared to 2022, from 9260.42 m
3
in 2022 to 11045.83 m
3
in 2023. This 19.3 percent increase in waste from logistics
services was driven mainly by increased cargo volumes, up by approximately 22.3
percent in 2023.
To further drive our efforts towards sustainability, we rolled out the Ecosystem
Scorecard, a tool that provides a comprehensive view of the logistics organization’s
environmental performance. A new metric, the intensity factor, was introduced to
measure waste, water, and CO
2
emissions by both hours worked and units processed.
This allows for a fair comparison of environmental impacts across different sites
and regions and helps identify areas for improvement.
We were also the first carrier to partner in a port waste reception facility transpar-
ency initiative. The initiative entails providing vessels information on ports’ waste
management abilities and allows vessels to plan the disposal of different types of
waste in ports which have facilities to recycle or incinerate it.
Key performance indicator 2022 actual 2023 target 2023 actual 2024 target
Ocean fleet cubic meters (m
3
)
waste delivered to shore facilities
7,177 N/A 7.908 N/A
Logistics services cubic meters
(m
3
) waste generated
9260.42 N/A 11045.83 N/A
waste in Tonnes per unit process - New 0.6327 0.6011
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Waste management
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Wallenius Wilhelmsen – Annual Report 2023
How will we proceed?
In 2024, new KPI objectives will be set based on waste, water, and CO
2
emissions
per unit processed, further driving our efforts towards measuring our sustainability
impacts. In addition to setting new KPIs and objectives, we will continue to assess
ways to reduce waste production, minimize waste going to landfills and increase
the share of waste that is recycled or recovered for energy.
Prosperity
We are committed to creating long-term value whilst contributing to local
and global economic, environmental and social progress. Our success is
tied to the economic well-being of society and we strongly believe our busi-
ness activities should contribute to sustainable value creation, societal
prosperity and the UN Sustainable Development Goals (SDGs). Prosperity
is also tightly aligned with the financial value we as a company generate for
shareholders, employees, suppliers and society as a whole. For instance, the
strategic work we have done on sustainable finance helps secure long-term
economic growth through the implementation of decarbonization initiatives
that drive the company’s emissions towards zero.
By solving some of our industry’s greatest challenges, we create prosperity
for our employees, customers, partners, shareholders and the communities
in which we operate.
Contents →
78
Prosperity
Innovation
Contents →
Wallenius Wilhelmsen – Annual Report 2023
To manage our impact on global prosperity, we monitor, manage and report on six
material topics:
1. Innovation
2. Quality of service
3. Sustainable consumption
4. Sustainable supply chain management
5. Tax practices
6. Sustainable finance
1. Innovation
Why is it important?
Innovation is necessary to succeed with our zero emission goals. Our search for
innovative solutions not only improves operations, it also increases our commer-
cial advantages while creating value and new opportunities for our employees,
customers, investors and suppliers. Please see the vision and strategy section in
Message from the board for further information.
How do we work?
Digital product innovation is managed by our digital accelerator team who works
according to the principles of lean start-up and agile to develop innovative digital
goods in the following six strategic areas:
•
Inspection and quality with AI-powered computer vision
•
Boost supply chain management with data and AI
•
Mixed-reality powered services, audits and training
•
Automation and robotics for inventory, asset and safety
•
Logistics services for multi-modal, last mile and fleet management
•
Cooperation with research and science organizations to plan, identify and
test new areas of innovations supporting our decarbonization ambitions
Playbook to Innovate and Operationalize Digital Goods:
To drive innovation, we also provide direct support for marine research (see below)
and sustainable maritime innovations (for more, read about Orcelle Award and
Ocean Exchange below).
Find & execute
Ideas & Solutions
Validate Value
& Viability
Product Launch
Scale & commercialize
P
r
e
-
I
n
c
u
b
a
t
i
o
n
S
o
c
i
a
l
i
z
e
I
n
c
u
b
a
t
e
O
p
e
r
a
t
i
o
n
a
l
i
z
e
Explore & develop
Ecosystem
79
Prosperity
Innovation
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Wallenius Wilhelmsen – Annual Report 2023
How did we perform?
By the end of 2022, our Digital Playbook approach yielded several digital products
and platforms currently at different stages of operationalization. In 2023, the Digi-
tal Accelerator team focused on implementing those solutions, at scale, into our
operations, bringing our pipeline of solutions to life in three priority impact areas:
We also spent the year adapting our ways of working to lessons learned and docu-
mented by the Digital Accelerator team in 2022, mainly:
•
Effective collaboration within a global ecosystem of partners is difficult
•
Adoption at both speed and scale is complicated
•
Non-standardization of key moments in the supply chain inhibit product
development at a global scale
Wallenius Wilhelmsen’s Orcelle Wind
project wins Heyerdahl Award 2023 –
Wind power rocks the boat
Established in 1999 by Norwegian explorer Thor
Heyerdahl and the Norwegian Shipowners’ Associ-
ation, the Heyerdahl Award is presented biennially to
candidates from the maritime industry who demon
-
strate innovation or technology development that
contributes to a better global environment.
This year’s Expert Committee recognized the Orcelle
Wind project for its potential to revolutionize emis-
sion-free shipping by harnessing the power of wind.
They believe that by utilizing wind power, an energy
source with no climate footprint, our project can
make a significant impact on the future of shipping.
Thor Heyerdahl Jr. expressed his appreciation for
the project, stating that his father would have been
delighted to see Orcelle Wind receive the maritime
environmental award carrying his name.
He said: “My father crossed all three world oceans
with prehistoric vessels, wooden rafts, and reed
boats, with no other means of propulsion than what
nature gave him with wind and current. And it was
completely emission-free, without leaving a trace!”
He continued, “As his son and as an oceanogra-
pher, I know he would have been very happy about
this award.”
Supercharge our
workforce
Make our
networks smarter
Advance our
ESG priorities
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Wallenius Wilhelmsen – Annual Report 2023
The Orcelle Wind project
The Orcelle Wind project is a testament to our commitment to shaping the green
transition to zero emission. Orcelle Wind is the first ship conceptualized out of the
Oceanbird concept. Jon Tarjei Kråkenes, Head of the Orcelle Accelerator explained:
“Before, Wallenius had developed the Oceanbird concept for several years, with
technical studies and wind optimization studies,” he continued “the Orcelle Wind
project however, has been ongoing since late 2020 when we, Wallenius Wilhelm-
sen, signed an agreement with Wallenius to work together to develop the Wallenius
concept Oceanbird into a real-life vessel.”
Orcelle Wind is designed to be a wind-powered car and truck carrier. At 220 meters
long, the ship will have the capacity to hold over 7,000 cars. We aim to achieve up
to 90 percent reduced emissions on a single voyage compared to today’s most
efficient vessels. We plan to start testing on an existing ship by 2024.
In addition to receiving the Heyerdahl Award 2023, the project was also recently
recognized by the EU Orcelle Horizon which pledged its support with a EUR 9 million
investment.
Not least, we have also signed a Letter of Intent with Mercedes Benz cementing
our partnership and commitment to the project.
The need for innovation
The project is still a research and development project with several technical and
operational studies ongoing. Two key milestones are coming up in the near future: A
one-wing test-rig on land will be completed at end of this year, followed by a similar
one-wing test-rig onboard one of our existing vessels mid next year.
Kråkenes added: “Both these demonstrators will add insight and competence
which will be brought into the final stage of the project with the ambition to have
the Orcelle Wind set sail within 2027.”
Paul-Christian Rieber, head of the expert committee, shared his perspective on
the award, stating: “If we are to succeed in developing emission-free shipping,
we need shipping companies that make brave choices and dare to take the lead
in developing this type of technology. When many industries are to compete for
green energy, wind will undoubtedly have to be part of the energy mix in the future
of emission-free shipping.”
In a joint effort with our partners and customers, the Orcelle Wind project sails ahead
in the hopes of orchestrating change for a more sustainable future.
We have also partnered with DeepSea Technologies for the implementation of a
suite of services using AI for voyage optimization. We have also continued to work
with the Swiss company Accelleron to support the implementation of a fleet-wide
solution on engine performance and optimization. By December 2023, we had 91
vessels connected and using the product from Accelleron. Please see the Planet
section of this report for more details on these initiatives.
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Orcelle Award continues to foster maritime innovation
Since 2012, Wallenius Wilhelmsen has been a global partner and sponsor of Ocean
Exchange, a non-profit organization that finds, funds and fosters sustainable mari-
time innovations. Every year, Ocean Exchange and Wallenius Wilhelmsen host a
competition for the Orcelle Award of USD 100,000 which goes to an innovative solu-
tion that demonstrates the greatest combined sustainable and economic value to
our business. Over this decade, we have awarded just over USD 1 million in funding
and attracted dozens of innovators.
The Orcelle Award comes with a USD 100,000 grant that Helix Power will use to
continue assembling and testing its first full-scale system. Once completed, the Helix
team will seek a partner to set up their first demonstration in a port environment.]
Helix Power crowned Orcelle Award Winner at 2023 Ocean Exchange
The winner of the 2023 Orcelle Award was Helix
Power, a Massachusetts-based company devel-
oping high-powered kinetic battery systems that
weaken power surges by recovering regenerative
breaking energy and recycling it for demand peaks.
Helix Power’s technology can serve as a key enabler
to allow our marine terminals and ports around the
world to accelerate the transition towards electrify-
ing their operations. It also serves as a cost-effective
solution to regulate the efficient use of electric-
ity during periods of peak demand. Helix Power’s
1-megawatt ‘flywheel’ units have 20-year lifespans
and can be installed individually or in groups within a
port. The flywheel serves as the mechanism to store
and distribute power.
Kevin Blackman, Cofounder of Helix Power, explained
that many ports rent diesel generators – or “gen
sets” – to supplement the power they cannot access
from the electric grid they are tapped into. “We think
there are real benefits to electric infrastructure that
will allow ports to reduce the number of generation
assets and start to decarbonize,” says Kevin.
Roger Strevens, VP Maritime Regulatory and Environ-
mental Affairs, and Ocean Exchange board member
with winner Kevin Blackman, Cofounder of Helix Power
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Wallenius Wilhelmsen – Annual Report 2023
Supporting marine research
We also contribute to scientific research and we continued our collaboration with
the Science Research on Commercial Ships (Science RoCS) of the Woods Hole
Oceanographic Institute. We are pleased to report that our ongoing cooperation
with scientists from Woods Hole Oceanographic Institution, the National Oceanic
and Atmospheric Administration’s (NOAA) Pacific Marine Environmental Labora-
tory, and the University of Washington’s (UW) Cooperative Institute for Climate,
Ocean, and Ecosystem Studies (CICOES) has culminated in a year of tremendous
data acquisition.
In 2023, we installed instrumentation systems onboard one of our vessels, Tysla,
to draw air and water samples which are being analyzed for CO
2
content. This will
provide insight into the rate of CO
2
uptake in different parts of the ocean. The Tysla,
which circumnavigates most of the world, transits through areas of the world ocean
with infrequent pCO
2
1
measurements and large air-sea fluxes of CO
2
. The planning,
installation, and system operation have enabled continuous pCO
2
measurements
of the ocean beginning in the spring of 2023.
Data from this platform will add to sea surface CO
2
measurements made glob-
ally since 1957 and increase our understanding of ocean acidification rates and
processes. The observations on the Tysla will extend the existing 40-year time
series of observations of air-sea CO
2
flux in the tropical Pacific, which is the largest
natural ocean source of CO
2
to the atmosphere, and contribute to understanding
the effects of El Niño Southern Oscillation (ENSO) cycles and long-term climate
change on air-sea flux there.
The crew of the Tysla has been very supportive of the project and appreciates being
part of the ‘greater good’ initiative.
1 One valuable approach to measuring surface ocean CO
2
is by using autonomous underway pCO
2
(partial pressure of CO
2
)
Scientists from NOAA and UW installing the GO8060 pCO
2
instrument aboard the MV Tysla.
From left to right: Andrew Collins, Dana Greeley, Chris Ikeda and Julian Herndon.
Photo : Andrew Collins/Jun Badilla.
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Wallenius Wilhelmsen is also supporting the global Argo program, which is tasked
with providing continuous measurements of ocean temperature and salinity between
the surface and 2000-m depth globally with a fleet of autonomous floats that
return the data via satellite link every 10 days. Many oceanographic research stud-
ies capitalize on these measurements and most numerical forecasts use the data
to make ocean predictions. In May 2021, the crew of Wallenius Wilhelmsen vessel
the Tijuca launched a set of Argo floats. Throughout 2023, these floats continued
to measure the temperature and salinity of the water column (upper 2-km) in the
Northern Atlantic and each is expected to continue operating for at least five years.
A founding principle of Science RoCS is that scientific data collection should
serve the broader good and that the data should be “FAIR” (Findable, Accessible,
Interoperable and Reusable) for both scientists and stakeholder communities.
The status and data from the Argo floats can be tracked by clicking on “MV Tijuca,
RoCS 2021A” on the this webpage. Data will be available at the Surface Ocean CO
2
Atlas as described above.
How will we proceed?
In 2024, thanks to the digital capacity improvements made in 2023, we will focus on
implementing our pipeline of digital innovations (see table below), while continu-
ing to follow the digital playbook for fostering sustainable innovations in shipping
and logistics.
The digital products pipeline
Our work supporting climate research at Woods Hole Oceanographic Institute will
continue throughout the year, and we will also conduct a review of the Orcelle Award
and our collaboration with Ocean Exchange to assess our impacts on maritime
innovation and set a course for the future.
In Incubation Viable for production Limited Production
(ready to scale)
Scaled
1. HarborNet – A portable high
speed wirelesss network for
docked Vessels at ports
2. Flexible Labor and Labor
Shared Pool platform
3. Logistics orchestration to
replace legacy solution for
SCM contracts
4. Safety training deploying
VR to address multilingual
needs
5. Self-instructed employee
training tool using AR
6. Predicating Port Congestion
for better vessel capacity
utilization, lower emissions
1. Asset Tracking
2. ID-powered digital wallet
managing rewards and
recognition
3. Private wireless network
for reliable operations and
provisioning new services
4. Competitor Insight
1. ErgoSafe
2. Electrification of Fleet
3. Vessel Voyage Geo Tracking
4. Remote Assists & virtual
visits
5. Mobile Inspection
6. Booth Inspection
1. Quality Check
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Quality of service
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Wallenius Wilhelmsen – Annual Report 2023
2. Quality of service
Why is it important?
As a global logistics provider, our customers trust us to move billions of dollars of
manufactured goods worldwide. Quality is at the center of our workday, every day,
on land and at sea. This focus protects and contributes to the integrity and effi-
ciency of our customers’ outbound supply chains.
How do we work?
We monitor, measure and manage the uptime of the Wallenius Wilhelmsen fleet
to ensure on-time deliveries and quality shipping services. Our marine operations
management team tracks the unplanned off-hire on each vessel. We manage the
risk of off time by maintaining and adhering to detailed maintenance schedules
and procedures for our vessels, as well as having close communication with our
suppliers.
To manage the quality of our logistics services, we track internal damages and
report damages per units processed. This allows us to more precisely understand
and improve damage control measures. Our logistics sites all work consistent with
the ISO 9001 standard, and many of our high-volume processing centers hold an
ISO 90001-certificate.
Our customers’ perceptions and satisfaction are also key elements of quality.
Engagement is therefore central for improving the quality of our services. To elevate
the voice of our customers in our internal decision-making, the company developed
and launched a Customer Satisfaction (CSAT) Survey in 2022. An overall customer
satisfaction score is measured by asking customers “How satisfied are you with
our service?” Responses range from 1 to 5 (1 = extremely dissatisfied, 5 = extremely
satisfied). The survey also asks customers about five strategic topics: Effective
communication, operational excellence, partnership/relationship, service offer-
ings and digital solutions.
Our global sales team conducts the semi-annual customer satisfaction survey. They
use the results to help business units plan and prioritize initiatives for improving
quality and the customer experience. Twice annually, the CSAT Index Report gives
departments and team leaders data and insights from the survey so they can tap
into the voice of our customers to:
•
Prioritize initiatives as part of business planning
•
Leverage existing initiatives to address the Voice of the Customer
•
Use Voice of Customer for performance reviews and internal discussions
•
Communicate our services consistently
All our management and production teams are also empowered to continuously
improve way of working to deliver global, best-in-class, innovative solutions that
are safe, sustainable, lean and agile.
Key performance indicator Q2 2022 Q4 2022 Q 2 2023 Q4 2023
Customer Satisfaction Survey score 4 3.8 3.8 4
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How did we perform?
In 2023, the customer satisfaction score was 4.0 in Q4, up slightly from 3.8 in Q2.
Damages per unit processed was .06 (vs. a target of .04). Despite these solid results,
we had challenges regarding limited capacity, port slowdowns and general supply
chain congestions. Additionally, we saw workforce shortages at certain locations.
These can all have an impact on the quality of services. Despite these obstacles, we
remained focused on securing the delivery of services while protecting our people.
We also finalized a roadmap for improved quality and sustainability management
systems and certifications. Building on work begun in 2022, we completed ISO 9001
certification of our logistics sites in the Americas.
We believe that there is no higher reward than acknowledgment and trust from
our customers. Trust is built by delivering quality results, and it is essential to value
creation because it unlocks future opportunities. That is why we are proud to have
received the Excellent Quality Award from Nio, Best Supplier Award from LiuGong
Machinery, Toyota Canada’s Kaizen Award, John Deere’s Achieving Excellence award,
recognition from Toyota for Export Processing Quality and 35 years of service. We
were also named Nissan’s North America Finished Vehicle Logistics Partner of the
Year, Mexico market.
Australia team sets a high standard
Can you imagine having a perfect ISO 9001 audit by
an external auditor? What about three?
That is what the Wallenius Wilhelmsen team in
Australia has accomplished for three consecutive
years. Harinder Multani, Safety, Quality and Sustain-
ability Manager Oceania, and Brett Tymensen, Oper-
ations Manager at the Laverton EPC Site, gave an
insight into their exceptional work.
During the ISO audits, external auditors interview
team members and conduct site tours to validate
the organization’s compliance with ISO guidelines,
and the results were better than all expectations.
“Achieving ISO without any non-conformance or
opportunity for improvement noted by the exter-
nal auditors for three consecutive years has now
become a benchmark across all our sites,” Multani
proudly exclaimed.
The team in Australia developed their Quality
Management System (QMS) from the ground up,
customizing it to their specific requirements. They
worked diligently to integrate systems, digitalize
processes, and introduce automation. Multani
emphasized the importance of engaging every staff
member with quality best practices.
“It’s very special to be part of a team that collabo-
rates proactively with a solutions-based mindset
to achieve this result,” Tymensen said as he high-
lighted the value of the initial QMS implementation,
describing it as “very thorough and well thought out,
but also simple and easy to follow.”
The Australian team’s supportive, proactive attitude
has been a key to their success. “One of the major
challenges we faced at the outset was the lack of a
pre-existing Quality Management System.” Despite
this, their determination and hard work led them to
build a robust QMS that supports their daily oper-
ations and continues to push them towards excel-
lence.
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How will we proceed?
In 2024, we will improve the quality of our services by continuing to implement our
ISO roadmap, and implement continuous improvements to our integrated manage-
ment systems.
The Customer Growth team continues to contribute to improved quality by enhanc-
ing internal processes with the launch of the Voice of Customer (VoC) platform in
2024. This will enable the team to document and analyze all formal feedback received
through digital channels. Dashboards for management will also be created and
deployed to track feedback, open days, tone of voice, main topics and Customer
Journey stages.
The Customer Growth team will collaborate with IT who assesses all legacy systems
as part of an initiative to build a better Digital Buying Journey for customers. They
will also begin identifying new business opportunities using a customer journey
approach; mapping customers’ needs and expectations.
The CSAT index and target will be extended to other business units in 2024, includ-
ing the logistics and shipping services, and will contribute to a more customer
centric mindset.
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Sustainable consumption
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Wallenius Wilhelmsen – Annual Report 2023
3. Sustainable consumption
Why is it important?
At Wallenius Wilhelmsen, we believe that becoming a leading supplier of sustain-
able outbound logistics will lead to long-term value creation. We are dedicated to
taking leadership in our industry’s transition to zero emissions. By encouraging
our customers to use more sustainable logistics solutions, we seek to ensure long-
term economic success, while contributing to a more prosperous and sustainable
global economy.
How do we work?
At Wallenius Wilhelmsen, sustainable consumption goes hand in hand with our
corporate strategy and our decarbonization plans. The sales organization works
closely with our emissions management and operational excellence teams to identify
ways that our customers can help drive our strategy. The sales team leads customer
outreach and takes primary responsibility for engaging customers in this effort.
We also collaborate with our customers to identify climate-positive changes to their
current ways of shipping, and to instill sustainable supplier management practices
into our own supply chain.
How did we perform?
In recent years, our customers have demonstrated a growing concern about their
scope 3 emissions. In line with our decarbonization strategy, we seized the opportu-
nity in 2023 to engage with like-minded customers, exploring new biofuel offerings
crucial for our transition to a fully zero emission end-to-end service.
In support of our strategic ambition of offering a net zero emissions end-to-end
service by 2027, the company developed and implemented a Reduced Carbon
Service (RCS), which enables our customers to lower their scope 3 emissions by
purchasing shipping services with fewer carbon emissions. The RCS allocates the
emission reductions of utilizing biofuels versus conventional fuels.
In 2023, we signed contracts with 14 customers for our RCS service, all of whom
began paying for reduced carbon freight as of January 1, 2024. In total, we bunkered
close to 10,000.00 mt of B30 fuel on three separate vessels in 2023, and issued our
first emission avoidance declarations to customers in December 2023. The emission
bank and the declarations are audited and verified by an independent third party.
We also made updates to the Carbon Compass 2.0 tool, which allows for integrating
emissions data across our network and enables customers to track their scope 3
emissions.
How will we proceed?
Looking ahead to 2024, we expect more than 10 percent of total fuel we use for our
shipping services to be B30 Biofuel Blend. We are also excited to launch Carbon
Compass 3.0 in the upcoming year. This advanced version will not only streamline
emissions reporting but also include our Reduced Carbon Service offerings. This
will provide customers with a transparent overview of their total emissions contri-
bution, including their commitment to avoided emissions.
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Sustainable supply chain
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4. Sustainable supply chain
Why is it important?
A sustainable supply chain is essential to satisfy our customers’ needs, while mini-
mizing our own sustainability risk exposure, reaching our emissions reductions
ambitions, contributing to our customers’ scope 3 emissions goals and ensuring
compliance with new legal requirements and social expectations.
How do we work?
We believe in cultivating strong and transparent relationships with our suppliers,
emphasizing pro-active and continuous improvement efforts on their part, and a
high level of transparency to manage risk. Our suppliers are trusted, long-term
partners, who help us deliver innovative solutions and services to our customers.
The Wallenius Wilhelmsen Procurement Policy guides our procurement activities.
This policy is also the basis of our Supplier Code of Conduct, which states expec-
tations and policy objectives to suppliers and subcontractors. Due diligence is
a mandatory and essential part of the sustainable procurement approach, and
supplier contract templates also reference our supplier code of conduct.
The procurement policy is built upon a series of principles that set our ambition for
a more sustainable supply chain:
•
A unified approach: We are establishing a common framework for
purchasing that enhances transparency and ensures efficiency through-
out all Wallenius Wilhelmsen entities.
•
Empowering our people: Each individual involved in procurement will
master the new policy to align collective efforts.
•
Comprehensive coverage: The policy extends to all procurement activities
exceeding USD 50,000.
•
Supplier Code of Conduct & ESG integration: Suppliers are expected to
comply with our Supplier Code of Conduct and sustainability require-
ments, mirroring our commitment to ethical practices.
•
Streamlined procedures: Documented procurement procedures will be
mandatory in every office, branch and site to ensure uniformity.
•
Rigorous supplier assessment: A detailed risk assessment is compulsory
before we engage with any supplier.
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How did we perform?
Over the past year we continued to standardize procurement processes which will
improve visibility and cost control over spending. We are creating an environment
where the whole organization benefits from shared knowledge and best practices.
Centralizing information on previous purchases and contracts will empower our
purchasers with a wealth of knowledge and support, advancing procurement
operations.
In 2023, we developed a new procurement policy which will guide our procurement
activities effective January 1, 2024. The policy includes an accompanying supplier
code of conduct that states our expectations and policy objectives to our suppli-
ers and subcontractors. Due diligence is now mandatory for all purchases greater
than USD 50,000: Supplier contract templates were updated to include reference
to the supplier code of conduct.
“Our new procurement policy aims to establish a transparent, competitive, and
practical framework for the effective buying of quality goods and services in the
group while being transparent about our expectations to suppliers about their
deliveries, conduct and ESG requirements. The entire organization benefits from
shared knowledge and best practices. Standardization of procurement processes
improves visibility and cost control, advancing our procurement operations and
making our business more sustainable.”
Torbjørn Wist
Chief Financial Officer at Wallenius Wilhelmsen
We also conducted eight sustainability audits as part of the due diligence process
for selecting newbuild and recycling yards. These were identified during the compa-
ny’s annual Human Rights Due Diligence process as potential hotspots for human
rights abuses. The audits, covering human and labor rights along with other mate-
rial sustainability issues, were conducted by an external expert. Sustainability
requirements have been included in the contractual agreement and will be part of
the supervision plan.
How will we proceed?
In 2024, we will continue to develop, improve and refine the sustainable procure-
ment approach. We aim to finalize and launch a new Procedure for Business Partner
Integrity Due Diligence, which documents the Wallenius Wilhelmsen requirements
for Integrity Due Diligence of business partners. We will also continue to develop
tools to enable group-wide monitoring and reporting on suppliers and supply chain
performance.
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Tax practices
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Wallenius Wilhelmsen – Annual Report 2023
5. Tax practices
Why is it important?
Wallenius Wilhelmsen is committed to being a responsible corporate citizen, and
that includes ensuring that we manage and report our tax affairs in a manner which
secures compliance with local laws and regulations in all countries in which we
operate. This is applicable to all taxes, including direct taxes, indirect taxes, payroll
taxes and other forms of taxation. Transactions between Wallenius Wilhelmsen’s
group companies are conducted at an arm’s length basis in accordance with OECD
principles and the internal transfer pricing policy.
Reporting of our total taxes paid provides information on Wallenius Wilhelmsen’s
contribution to governmental revenues which support governmental functions
and public benefits.
How do we work?
Tax compliance and day-to-day responsibilities for the operation of the local tax
function rest with the Wallenius Wilhelmsen subsidiaries. The global tax depart-
ment manages tax risks and ensures compliance in all significant operational and
financial transactions as well as securing arm’s length pricing in all intercompany
transactions. The company is committed to adopting a justifiable and fair tax posi-
tion in cases where tax regulations are open to interpretation or choices. The tax
position taken in all significant transactions is supported by employment of qual-
ified in-house personnel and, where necessary, the use of an external tax opinion.
Further, we aim to operate under a policy of transparency with local tax authorities.
Corporate tax affairs are the Chief Financial Officer’s responsibility and extend to
all jurisdictions in which the company operates.
How did we perform?
In 2023, Wallenius Wilhelmsen had one tax agreement
2
. Please see table below for
disclosure of calculated tax payable 2023, in the Group’s most significant countries:
Calculated Taxes Payable by Country, 2023
How will we proceed?
In 2024, we will have a special focus on the implementation of global minimum tax
rules (Pillar Two), and secure internal processes and systems to manage the new
computations and data required to calculate global minimum tax liabilities and
satisfy the reporting obligations.
2 The relevant tax incentive is related to our International Business Center (IBC) in Thailand, whereas we are taxed at a 8 percent
corporate income tax rate instead of the regular 20 percent.
Country USD million
South Korea (including USD 19 million in withholding tax on dividends and interest) 20
Australia 14
New Zealand 9
Sweden 6
Mexico 3
USA 2
Canada 2
China 2
South Africa 1
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Sustainable finance
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Wallenius Wilhelmsen – Annual Report 2023
6. Sustainable finance
Why is it important?
Access to capital is essential to support our business and reach our target of
decarbonizing our operations. Many financial stakeholders, including lenders and
investors, seek long-term financial returns that mitigate harm to the environment
and that ensures social safeguards. They expect companies with high emissions in
hard-to-abate sectors to demonstrate how they will decarbonize. Over time, access
to capital may become limited for companies that do not decarbonize and trans-
parently report on their decarbonization strategy, goals and the results achieved
every year.
How do we work?
Managing our approach to sustainable financing opportunities is a function shared
by Wallenius Wilhelmsen’s Global Treasury and the Investor Relations team.
In 2021, the company adopted a Sustainability-linked Financing Framework v1.0
which underlines the company’s commitment to creating value while reducing our
carbon intensity. The framework includes interim carbon intensity targets for each
year from 2022 to 2030 based on the fleet average carbon intensity indicator (CII).
An adjustment takes place if we are below the trajectory at the bond’s maturity; if
we are above the emissions trajectory then the maturity price steps up.
On our investor pages, we release annual progress reports disclosing information
regarding the performance of the CO
2
intensity targets, any recalculations if appli-
cable, and any updates in the emission reduction strategy. The progress report will
be accompanied by external verification of the calculated CO
2
intensity.
How did we perform?
In 2023, the group completed the issuance of NOK 1 billion sustainability-linked
senior unsecured bonds, our second sustainability-linked bond. Approximately
NOK 2,250 million of bond debt is linked to our Sustainable Financing Framework.
We also used the Framework for bank debt. The Group’s total bank debt linked
to the Framework was USD 638 million at the end of 2023. Wallenius Wilhelmsen
Ocean AS had USD 568 million (“Flagship Facilities”) and EUKOR had USD 70 million
in bank loans linked to the framework. If the Company does not meet the relevant
targets included within the Framework, the price of the debt will increase, while if
we meet the targets, pricing of the bank financing will improve. We increased the
margin on our Flagship Facilities with 5 bps (0.05 percent) as the KPI performance
was higher than the interim target for financial year 2022.
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How will we proceed?
In 2024 we will update our sustainability linked framework based on our new decar-
bonization targets and exlplore opportunities created by new types of bonds and
financing frameworks. We will consider introducing an internal carbon price, and
prepare for compliance with the EU’s new Emission Trading Scheme.
The EU’s Emissions Trading Scheme, which is part of it’s ‘Fit for 55’ basket of
measures to reduce greenhouse gas emissions, was revised to include shipping
from January 1, 2024. In outline, the ETS is a ‘cap and trade’ regulation whereby
companies must buy ‘EU Allowances’ corresponding to the portion of their total
GHG emissions that occur within the scope of the ETS. Wallenius Wilhelmsen has
established an ETS compliance preparation project with cross functional represen-
tation. Key internal stakeholders include the Treasury team for the procurement
of allowances as well as the Customer Growth team for compliance cost recovery.
Since the first reporting deadline for the ETS is in March 2025 with ‘surrendering’
of EU allowances within September 2025, the implementation project will continue
to run though 2024.
94Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Implementation and reporting on corporate governance
Contents →
Implementation and reporting on corporate
governance
Wallenius Wilhelmsen ASA (‘Wallenius Wilhelmsen’ or ‘the Company’) is a public
limited company which complies with Norwegian law. Listed on the Oslo Stock
Exchange, the Company is subject to Norwegian securities legislation and stock
exchange regulations.
The Wallenius Wilhelmsen ASA board of directors is committed to effective and
ethical leadership in the pursuit of a long-term sustainable future for the Wallenius
Wilhelmsen Group and its key stakeholders.
This chapter is written in accordance with the requirements covered in the Norwe-
gian Code of Practice for Corporate Governance (‘the Code’, dated October 14, 2021),
the Public Limited Companies Act and the Norwegian Accounting Act. It is approved
by the board and published as part of the Company’s annual report.
The “comply or explain” principle
The Code covers provisions and guidance that in part elaborate on company,
accounting, stock exchange and securities legislation. It also covers areas not
addressed by legislation. We follow the ‘comply or explain’ principle required by the
Code and in case of any deviations from its 15 provisions, we explain the reasons
and the alternative solutions we have adopted.
Governing elements
The board of directors is responsible for the governance of Wallenius Wilhelmsen.
This entails setting the strategic direction and providing oversight to ensure that
the company operates effectively, efficiently, and in alignment with its purpose and
strategic ambition, its values and its compliance program.
Wallenius Wilhelmsen, as other companies, must deliver on new requirements and
expectations amidst increasing global uncertainty and complexity. To ensure that we
deliver on these expectations, and that we are prepared to manage rapidly emerging
and changing situations, we are in the process of strengthening our governance.
Considering the global reach of Wallenius Wilhelmsen, we use the guidance from
the globally-recognized framework provided by ISO 37000, Governance of organi-
zations – Guidance
1
. We are also updating our purpose, our values, constituting
documents and group policies. Sustainability will be embedded throughout the
company’s governance and management.
We recognize that our extensive global reach, combined with operations in coun-
tries where corruption and poor labor standards are present, are significant risk
factors requiring particularly high levels of integrity. The cornerstone of our gover-
nance framework is the board-approved Code of Conduct. The code, which was
updated in 2023, applies to all employees and others working for and on behalf of
Wallenius Wilhelmsen. The Code of Conduct provides expectations and standards
for how we shall conduct ourselves towards each other, our customers, our envi-
ronment and the society around us. It complements local laws, cultures and prac-
tices in the countries we operate. The Code of Conduct together with the company
values, leadership expectations, policies and procedures, constitute the basis and
framework for a culture centered around trust, transparency, performance and
1 ©International Organisation for Standardization
95Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Implementation and reporting on corporate governance
Contents →
compliance. The Code of Conduct is available publicly on our website. It is a stan-
dard part of the onboarding procedures at Wallenius Wilhelmsen, incorporated into
training programs and re-evaluated annually.
In 2023, we also reinforced our compliance program by hiring a dedicated Chief
Ethics and Compliance Officer to strengthen the work on business ethics, corruption,
fraud, money laundering, economic sanctions and export controls and antitrust.
A dedicated risk manager will start in 2024. We will continue the work on further
developing our identification, management and monitoring of risks.
Deviations from the Code: None
Security and emergency response
Security, including cyber security and emergency preparedness, is a top priority at
Wallenius Wilhelmsen. In light of the increasing tensions and emerging geopolit-
ical crises, we have strengthened our emergency preparedness plan and estab-
lished an emergency management team composed of representatives from various
cross-company functions.
We have further developed our methodology and implemented the Rayvn system,
a crisis alerting and management tool that notifies the emergency management
team and other stakeholders in the event of a critical incident. The system is used
to organize crisis response, log key events and tasks, host video calls, provide situ-
ational awareness, and host support documentation required for successful crisis
handling. Key functions are trained on using Rayvn, and drills and scenario training
with human resources, and the operations are conducted. We have established
updated and standardized emergency response practices for incidents to prepare
for effective and common response mechanisms for crises.
We are also a certified partner of CTPAT (US Customs Trade Partnership Against
Terrorism) program. This is a security framework to mitigate risks and requires that
we conduct regular security assessments, develop and implement security plans,
and provide training and drills for personnel. We also run awareness campaigns
to encourage workers to “see something – say something.”. The work to further
streamline the framework across all our relevant sites globally will continue in 2024.
96Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
The business
Contents →
The business
Articles of Association
Wallenius Wilhelmsen’s business activities and the scope of the board’s authority
are restricted to the business specified in article three of the Company’s articles
of association which reads as follows: ‘The objective of the Company is to engage
in shipping, maritime services, aviation, industry, commerce, finance business,
brokerage, agencies and forwarding, to own or manage real estate, and to run
business-related thereto or associated therewith. This may take place in a direct
manner, or in an indirect manner by way of guarantee, share subscription, or in
other ways.’ The full articles of association are provided on the Company’s website.
Strategy and framework for implementation
Our ambition is to lead the way in transforming shipping and logistics. The aim
of our strategy is to create value for our shareholders and other stakeholders by
further developing our ocean and land-based business in a responsible manner.
The group will leverage its market positions, global network, and collective compe-
tence to continue to grow a sustainable and profitable business. Four principles
of sustainability guide us in this work. By striving for what is both economical and
sustainable, we will produce the best long-term results for the people and the
planet. Our commitment, approach and performance on sustainability is described
throughout this report and is summarized in the model below.
We organize sustainability in 4 pillars
People Planet Prosperity
Principles of
Governance
Safe and inclusive workplace
where people’s rights are
respected
Decarbonize and reduce our
environmental impact
Solving the biggest chal-
lenges while creating new
opportunities
Transparent, with strong ethi-
cal business conduct
Material Topics
Health, safety and wellbeing
Human rights
Diversity, equity and inclusion
Training and development
GHG emissions and climate
risk
Biodiversity
Waste management
Air quality
Innovation
Tax practices
Quality of service
Sustainable consumption
Sustainable supply-chain
Sustainable finance
Ethical business conduct
Emergency preparedness
Security
Privacy and data security
SDGs
97Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
The business
Contents →
We contribute to the Sustainable Development Goals (“SDGs”) issued by the United
Nations. We focus on the eight SDGs listed in the above illustration, as these have
been assessed and identified as the ones upon which we have the greatest impact.
During 2023, we started preparing for EU’s Corporate Sustainability Reporting Direc-
tive which will apply from 2024. We conducted a double materiality assessment
(DMA) which is a key requirement of the regulation. The DMA evaluates our impact
on people, society, and the environment (impact materiality) and financial effects
of risks and opportunities triggered by sustainability topics (financial materiality).
A sustainability topic meets the criteria of double materiality if it is material from
the impact perspective, from the financial perspective or from both perspectives.
Wallenius Wilhelmsen will be required to manage and disclose information on
specific requirements which are outlined in the European Sustainability Reporting
Standards (ESRS) relating to the material topics.
The materiality assessment was guided by the methodology outlined in the ESRS and
incorporates industry best practices, internal expertise, and stakeholder engage-
ment. Following an extensive stakeholder mapping, seventeen internal and seven
external stakeholders were interviewed. Their views were important to include new
perspectives and gain a better understanding of the Group’s impacts, risks and
opportunities. The following key stakeholder groups were engaged:
•
Own employees
•
Customers
•
NGOs
•
Suppliers
•
Academia
•
Partnerships
•
Investors
The DMA was conducted through four key stages outlined below:
Identify relevant
sustainability topics
Assessment of impact and
materiality of topics
Assessment of financial
materiality of topics
Validation
of results
•
Assess potentially material
sustainability topics through
desk research, review of
existing material topics,
assessment of value chain,
peer analysis, trend analysis,
screening of reporting frame-
works and media scan.
•
Establish a long-list with rele-
vant topics across the value
chain.
•
Identify relevant stakeholders
for the Group.
•
Engage internal and external
stakeholders in the assess-
ment of impact materiality.
•
When 65% or more of stake-
holders considered a topic
to be “significant” or “very
significant”, it was defined as
a material.
•
Existing risk management
frameworks were used as
thresholds to assess likeli-
hood and financial conse-
quences of relevant risks in
short-, medium- and long-
term outlook. The assessment
was conducted with relevant
functions across the group.
•
A financial materiality score
was calculated per topic,
using the financial conse-
quences and likelihood of
occurrence.
•
To validate the process a
workshop was held to review
the results of the financial and
impact materiality assess-
ment.
•
The final results were vali-
dated by management, the
Board Audit Committee and
board of directors.
98Wallenius Wilhelmsen – Annual Report 2023
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The business
Contents →
The double materiality assessment, resulted in the following eight topics as stra-
tegically important for Wallenius Wilhelmsen:
Due to the complexity in separating interlinked topics, biodiversity, ecosystems
and marine environment were merged into one topic. This was also the case for
anti-corruption, bribery and corporate governance. Topics that were not deemed
material during the assessment will be monitored and evaluated annually along
with other trends and developments.
The ESRS requires companies to identify financial and impact materiality in a short,
medium and long-term perspective. We have used the existing risk management
framework and the CDP time interval when establishing each of the following time
horizons:
•
Short-term: Up to 3 years
•
Medium-term: 4 to 10 years
•
Long-term: 11 to 30 years
In order to identify our current reporting gaps, we also conducted a gap-analysis of
the upcoming ERSR requirements. We will establish a roadmap to meet the ESRS
requirements, which will extend beyond 2024. This includes conducting a biodi-
versity impact assessment, which was postponed until the DMA was conducted.
Sustainability is integral part of our long term strategy which aims to capitalize on
our current market position, balance our risk profile and maximize value creation
for our shareholders and society.
Please see the section Message from the board for more information.
To ensure that the right results are achieved in the correct way, Wallenius Wilhelm-
sen has established a framework of governing elements including its values, code
of conduct, policies and principles. These governing elements guide the employees
in making the right decisions and navigate safely in a rapidly changing environ-
ment. To ensure safety and compliance leadership and that all parts of the orga-
nization work as one, we are currently strengthening our management system to
align with the updated governance framework and the ISO standards for health
and safety, quality and environment (9001, 14001 and 45001). The documentation
will be available on our intranet and process manager platform.
The board of directors is strongly engaged in this work and evaluates Wallenius
Wilhelmsen’s objectives, strategies and risk profiles at least once per year.
Deviations from the Code: None
Wallenius Wilhelmsen material topics ESRS topics
Climate Change E1 Climate Change
Pollution E2 Pollution
Biodiversity and Marine Environment E3 Water and Marine Resources &
E4 Biodiversity and Ecosystems
Waste and Circular Economy E5 Resource Use and Circular Economy
Diversity, Equity and Inclusion S1 Own Workforce
Safe and Secure Operations S1 Own Workforce and S2 Workers in the Value Chain
Working Conditions and Human Rights S1 Own Workforce and S2 Workers in the Value Chain
Corporate Culture and Governance G1 Business Conduct
99Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Equity and dividend
Contents →
Equity and dividend
Capital structure
The Wallenius Wilhelmsen group has a sound level of equity tailored to its objec-
tives, strategy and risk profile, as seen in the Financial review. The board of directors
believes the capital structure of the Wallenius Wilhelmsen group is appropriate to
our objectives, strategies and risk profile.
Dividend policy
In 2023, the board applied a dividend policy that targeted a dividend which over
time would constitute between 30 percent and 50 percent of the Company’s profit
after tax. When deciding the size of the dividend, the board considered future capi-
tal requirements to ensure the implementation of its growth strategy as well as the
need to ensure the group’s financial standing remains warrantable at all times.
Dividends was declared in USD and paid out semi-annually. Please see chap
-
ter Message from the board, Long-term financial targets and dividend policy, for
proposed dividend policy for 2024.
Authorizations to the board of directors
At the AGM in 2023, the board of directors was granted an authorization to acquire
own shares, with a total nominal value of up to NOK 22,001,456, which equals 10
percent of the current share capital. The authorization can be used in connection
with the Company’s long-term incentive scheme for the executive management
and as an alternative to, or complement with, dividends in order to optimize capi-
tal planning in the Company. The authorization is valid until the AGM in 2024, but
will last no longer than June 30, 2024. Furthermore, at the AGM in 2023, the board
of directors were also granted an authorization to increase the share capital by up
to NOK 22,001,456, representing 10 percent of the issued share capital. The autho-
rization can be used in connection with acquisitions in return for shares and for
general corporate purposes. The authorization is valid until the AGM in 2024, but
no longer than June 30, 2024.
Deviations from the Code: The authorizations to the board of directors to acquire
own shares and to increase the share capital both cover more than one purpose.
The board of directors believes that for several reasons this gives flexibility to (i)
buy back shares to honor obligations under the incentive scheme or as an alter-
native to dividends, and (ii) increase the share capital by up to 10 percent – either
in connection with acquisitions, for general corporate purposes or a combination
of the two, depending on the specific needs of the Company.
100Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Equal treatment of shareholders
Contents →
Equal treatment of shareholders
Shareholders
As of December 31, 2023, Wallenius Wilhelmsen had 6,594 shareholders, of which
516 were foreign, and the remaining were Norwegian. This indicates an increase of
5 percent in the number of shareholders compared to year end 2022. The Norwe-
gian shareholders account for 209,987,266 of Wallenius Wilhelmsen shares, the
equivalent of 49.6 percent of the total number of shares.
Preemptive rights
The board of directors has not made any resolutions to increase the share capital
based on the authorizations granted in 2023. If the board resolves to carry out an
increase in share capital and waive the pre-emption rights of existing sharehold-
ers based on a mandate granted to the board, the board will publicly disclose the
justification in a stock exchange announcement to be issued in connection with
the increase in share capital.
Transaction in own shares
In September 2023, Wallenius Wilhelmsen purchased 500,000 own shares pursu-
ant to the authorization granted to the board of directors in 2023. The share repur-
chase program was initiated as part of the Company’s long-term incentive scheme
and the acquisition of own shares was carried out through the stock exchange.]
568,338 shares were held in treasury as of year-end 2023.
Freely negotiable shares
All shares in Wallenius Wilhelmsen are freely negotiable and listed on the Oslo Stock
Exchange under the ticker ‘WAWI’. There are no restrictions on any party’s ability
to own, trade or vote for shares in Wallenius Wilhelmsen.
Deviations from the Code: None
101Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
General meeting
Contents →
General meeting
The general meeting will normally be held in the middle of the second quarter. The
board of directors will ensure that the Company’s shareholders can participate
in the general meeting through electronic presence. The board of directors will
further ensure that:
•
The resolutions and any supporting documentation are sufficiently
detailed, comprehensive and specific, allowing shareholders to under-
stand and form a view on all matters to be considered at the general meet-
ing
•
Any deadline for shareholders to give notice of their intention to attend the
meeting is set as close to the date of the meeting as possible
•
The members of the board of directors and the chair of the nomination
committee shall attend the general meeting
•
That the general meeting is able to elect an independent chairperson for
the general meeting.
Shareholders who wish to participate in the general meeting must give the company
notice of this in advance. Such notice must be received by the company no later
than two working days prior to the general meeting. The board may, however, before
the notice to the general meeting has been sent, set a later deadline for such
notice. Shareholders who are unable to be present at the general meeting will be
given the opportunity to vote by proxy, or through written voting in a period prior to
the general meeting. Wallenius Wilhelmsen will in this respect provide information
on the procedure and prepare the form for the appointment of a proxy, or written
voting form, which will indicate that it is possible to vote on each agenda item.
Wallenius Wilhelmsen seeks to accommodate that shareholders are able to vote
on each individual candidate that is nominated for election. However, for practical
reasons, the vote took place as a combined vote in 2023. Wallenius Wilhelmsen will
also nominate a person who can act as proxy for the shareholders. Shareholders
with known addresses are notified by mail no later than 21 days before the meet-
ing, and all relevant documents are published on Wallenius Wilhelmsen’s website
no later than 21 days before the meeting. Shareholders may, upon request, receive
hard copies of the material. The minutes from the AGM are available on the Compa-
ny’s website, immediately after the meeting and may be inspected by shareholders
at Wallenius Wilhelmsen’s office. The general meeting of 2023 was chaired by the
Company’s external counsel as appointed by the general meeting.
Deviations from the Code: In 2023, voting on members to the board of directors
and the nomination committee, respectively, took place as a combined vote.
102Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Nomination committee
Contents →
Nomination committee
In accordance with section eight of Wallenius Wilhelmsen’s articles of associa-
tion, the general meeting has appointed the nomination committee, approved the
guidelines for the committee’s work and agreed on the remuneration to be paid for
participating in the committee. All members of the nomination committee are inde-
pendent from the Company’s executive management. The nomination committee
currently consists of Anders Ryssdal (chair), Carl Erik Steen and Jonas Kleberg. None
of the committee members are executives at Wallenius Wilhelmsen. The committee
nominates candidates to the board and proposes board members’ remuneration.
As part of its nomination process, the committee will have contact with major share
-
holders, the board and Wallenius Wilhelmsen’s executives to ensure the process
takes the board’s and Wallenius Wilhelmsen’s interests into consideration. A justi-
fication for a candidate will include information on each candidate’s competence,
capacity and independence. The nomination committee will justify its proposal on
each candidate separately. In 2023, the nomination committee held four meetings.
Deviations from the Code: None
103Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Board of directors – composition and independence
Contents →
Board of directors – composition and
independence
Wallenius Wilhelmsen does not have a corporate assembly, and therefore the
general meeting elects the board. The board shall consist of between three and
nine members and up to three deputy members. The board of directors currently
comprises six members. The board of directors elects its own chair, and Wallenius
Wilhelmsen is therefore in deviation with section eight of the code. The composi-
tion of the board of directors addresses the common interests of all shareholders
and meets the Company’s need for expertise, including industry and sustainability
knowledge, capacity and diversity. The board of directors is also formed so that it
can act independently of any special interests. Three of the six directors are women.
Four of the directors, Rune Bjerke, Yngvil Eriksson Åsheim, Margareta Alestig and
Anna Felländer, are independent of the majority owners, the executive management,
and significant business relations. The board does not include executive person-
nel. Each of the two large shareholders have respectively nominated one observer
in Wallenius Wilhelmsen’s board, namely Christian Berg and Peter Augustsson.
Information on the background and experience of the directors is available on Walle-
nius Wilhelmsen’s website, which also lists the number of Wallenius Wilhelmsen
shares held by each director. Members of the board of directors are encouraged to
own shares in Wallenius Wilhelmsen, although they know not to let this encourage
a short-term approach, which is not in the best interests of Wallenius Wilhelmsen
and its shareholders over the longer term. Board members have attended a semi-
nar hosted by Advokatfirmaet Thommessen AS regarding the rules that apply to
stock exchange listed companies. The objective of the course was to provide infor-
mation on legislation, rules, regulations, and best practices that are relevant for
board members of listed Norwegian companies.
Deviations from the Code: The board elects its own chair as stated in Wallenius
Wilhelmsen’s articles of association as the members of the board have in-depth
knowledge of the Company’s underlying business and are best suited to nomi-
nate their own chair.
Board member Elected Period Up for election
Rune Bjerke April 2022 2 2024
Thomas Wilhelmsen April 2023 2 2025
Margareta Alestig April 2023 2 2025
Anna Felländer April 2022 2 2024
Hans Åkervall April 2022 2 2024
Yngvil Eriksson Åsheim April 2022 2 2024
104Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Board responsibility and work
Contents →
Board responsibility and work
The board of directors
The board of directors has adopted instructions for the work of the board. These
include rules on the work of the board and its administrative procedures which
determine what matters the board should consider. The board has the ultimate
responsibility for the management of Wallenius Wilhelmsen and must ensure the
business is run in a sustainable and responsible way. The instructions state how the
board of directors and executive management shall handle agreements with related
parties, including whether an independent valuation must be obtained. The board
of directors will also present any such agreements in the annual directors’ report.
The board of directors has also adopted instructions for the executive manage-
ment to clarify internal allocation of responsibilities and duties. The board heads
Wallenius Wilhelmsen’s strategic planning. This involves setting the direction for
management through discussions of the strategy and risk, and make decisions
that form the basis for the administration’s execution of the strategy. The board of
directors evaluates Wallenius Wilhelmsen’s objectives, strategies and risk profiles
at least once per year. The chair of the board has an extended duty to ensure that
the board operates well and carries out its duties.
The board of directors has also implemented procedures to ensure that members of
the board of directors and executive personnel make Wallenius Wilhelmsen aware
of any material conflicting interests that they may have regarding items being
considered by the board of directors.
The board of directors will also be chaired by some other member of the board, if
the board is to consider matters of a material character in which the chair of the
board is, or has been, personally involved.
Sustainability appears regularly on the board’s agenda, either in the form of updates
on sustainability regulation or progress on our management of sustainability topics.
Quarterly, the board reviews corporate risks and these include risks related to
more stringent climate, environment and social regulations as well as indicators
for attracting and retaining competence. The board establishes an annual plan for
its work and evaluates its performance and expertise annually.
In 2023, Wallenius Wilhelmsen arranged eight meetings which all board members
attended, i.e. 100 percent attendance in meetings during 2023. In addition, the board
regularly visits business-related locations to ensure they have a solid understanding
of the business, the market and the outlook for the shipping and logistics industry.
Such updates may also be given through a variety of communication channels,
including a board portal containing timely and relevant information. The directors
and officers are covered by Wallenius Wilhelmsen ASA’s Directors and Officers
Liability Insurance (D&O) placed with AIG, AXA XL, Risk Point and IF. The insurance
comprises the directors’ and officers’ personal legal liabilities, including defense-
and legal costs. The coverage also includes employees in managerial positions or
employees who become named in a claim or investigation, or is named co-defen-
dant, and is extended to include members of the company’s steering committee,
audit committee, compensation committee, litigation committee, advisory commit
-
tee or other management or board committees.
105Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Board responsibility and work
Contents →
Audit committee
The company’s audit committee currently consists of three members:
•
Margareta Alestig (chair)
•
Yngvil Eriksson Åsheim
•
Hans Åkervall
All members of the audit committee are independent of Wallenius Wilhelmsen, and
at least one member of the audit committee is competent in respect to financial
reporting and audit. The committee’s objective is to act as a preparatory working
committee and support the board’s supervisory roles with respect to financial and
sustainability reporting and the effectiveness of Wallenius Wilhelmsen’s internal
control and risk management systems. The committee also monitors that the external
auditor is independent in relation to services rendered and relationships that may
impact objectivity and independence between the external auditor and Wallenius
Wilhelmsen, including review and pre-approval of non-audit services provided by
the external auditor. During 2023, the committee had five meetings.
People, Culture and Remuneration Committee
The board of directors’ people, culture and remuneration committee consists of
three members:
•
Rune Bjerke (chair)
•
Thomas Wilhelmsen
•
Anna Felländer
The members are independent of Wallenius Wilhelmsen’s executive management.
The board sets guidelines for remuneration of the executive management, includ-
ing incentive schemes, pension schemes/terms and employment agreements. The
remuneration committee also proposes the general remuneration principles for
other employees in the Company. During 2023, the committee had five meetings.
Management team
In 2023, the executive management team at Wallenius Wilhelmsen consists of a
chief executive officer (CEO), and the following other roles:
•
EVP, chief financial officer (CFO)
•
EVP, chief operating officer (COO) shipping services
•
EVP, chief operating officer (COO) logistics services
•
EVP, chief people and corporate affairs officer (CPCO)
•
EVP, chief customer officer (CCO)
•
EVP, chief technology and information officer (CTIO)
•
SVP, chief communications and marketing officer (CCMO)
The executive management team, which consists of 50 percent women and 50
percent men, discusses and coordinates all main business and management issues
relevant for Wallenius Wilhelmsen. An overview of the background and expertise of
the executive management team is provided on the Company’s website.
106Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Remuneration of the board of directors
Contents →
CEO
The board’s instruction to the CEO includes a statement of duties, responsibilities
and delegated authorities. The CEO has the overall responsibility for Wallenius
Wilhelmsen’s results and for conducting the businesses and affairs of the Company
and its businesses in a proper and efficient manner, and in the best interests of
Wallenius Wilhelmsen and its shareholders.
The CEO has a particular responsibility to ensure that the board receives accu-
rate, relevant and timely information that allows it to carry out its duties. Wallenius
Wilhelmsen’s operations, financial results, projections, financial status, or other
topics specified by the board are regularly shared with the board between board
meetings.
The CEO has delegated the responsibility of the different business areas to other
members of the executive management team.
CFO
The CFO is responsible for the finance activities at Wallenius Wilhelmsen, including
accounting and finance control, business performance, mergers and acquisitions,
treasury, tax and investor relations. The CFO is responsible for providing the CEO
and the board with reliable, relevant and sufficient financial information related to
Wallenius Wilhelmsen’s business activities, and ensure that such information is
based on requirements for listed companies.
Governance in partly-owned companies
Wallenius Wilhelmsen holds a controlling ownership interest in EUKOR Car Carriers,
Armacup Limited, Syngin Technologies, LLC, Wallenius Wilhelmsen Solutions (Pty)
Ltd, RRS RoRo Stevedores Germany GmbH and WWL-GZL Logistics Co., Ltd. Each
entity has its own board responsible for issues related to the specific operating
entity. Wallenius Wilhelmsen’s ambition is to be a demanding and reliable owner,
taking the long-term interests of the companies, as well as its own interests, into
consideration when developing its strategy. This includes how ownership, finan-
cial prospects and expectations towards code of conduct will be exercised, and
how environmental and sustainable standards and aspirations are determined.
Deviations from the Code: None
Remuneration of the board of directors
Remuneration of directors is determined by the AGM and it is not dependent on the
Wallenius Wilhelmsen’s results. The fee reflects the responsibilities of the board, its
expertise, the amount of time devoted to board-related work and the complexity of
the Wallenius Wilhelmsen’s businesses. The remuneration of the board of directors
is not linked to our performance, and we do not grant share options to members of
the board of directors. None of the directors perform other assignments for Wallenius
Wilhelmsen in addition to their appointment as member of the board of directors.
Deviations from the Code: None
107Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Risk management and internal control
Contents →
Risk management and internal control
Board accountability
The board is accountable for Wallenius Wilhelmsen’s internal control and risk
management frameworks and believes that Wallenius Wilhelmsen’s systems are
appropriate given the extent and nature of our activities. The system contributes to
a control environment characterized by integrity and responsible business conduct.
It is based on the Wallenius Wilhelmsen’s guidelines for business standards and
sustainability. The board reviews Wallenius Wilhelmsen’s risk matrix four times
per year and the internal control arrangements at least once per year, preferably
together with the Wallenius Wilhelmsen’s external auditor.
About the system
Governing documents, such as values, code of conduct, company principles,
policies, procedures and process descriptions are documented and electroni-
cally available to Wallenius Wilhelmsen’s employees through our global integrated
management system. Various internal control activities give management assur-
ance that the internal control of financial systems works adequately and according
to management’s expectations.
Wallenius Wilhelmsen’s internal control is a process designed to provide reason-
able assurance of:
•
Effective and efficient operations
•
Risk management
•
Reliable financial reporting
•
Compliance with laws and regulations
•
Necessary resources provided and used in cost-efficient ways.
Internal control includes:
•
Activities established to evaluate and confirm the quality of internal control
regarding financial reporting (per segment)
•
Procedure for year-end financial statements and the Wallenius Wilhelmsen
board’s responsibility statement semi-annually and annually
•
Enterprise risk assessment – including reporting of the segment’s internal
control, and quarterly reporting of risk assessment to the board
•
Risk factors are described and made public to the market in Wallenius
Wilhelmsen’s second quarter report and annual reports.
Wallenius Wilhelmsen’s governing documents are in line with the group’s finan-
cial strategy.
During 2023, we conducted a strategic risk assessment facilitated by an external
expert. The assessment analyzed future trends and their potential impact as well
as the connection and velocity of the risks. The analysis leveraged the insight and
experience of ca 40 internal experts.
108Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Risk management and internal control
Contents →
External assurance
Wallenius Wilhelmsen’s auditors conduct the audit in accordance with the laws,
regulations, and auditing standards and practices generally accepted in Norway.
These give reasonable assurance as to whether the consolidated financial state-
ments are free from material misstatements, and whether internal control over
financial reporting was appropriate in the circumstances relevant to the audit.
The audit includes examining on test basis evidence supporting the amounts and
disclosures in the financial statements. It also includes assessing the accounting
policies used and the reasonableness of accounting estimates made by manage-
ment, as well as evaluation of the overall financial statement presentation includ-
ing the disclosures.
Whistleblowing
Wallenius Wilhelmsen has a Group-wide Alert line, which is a global whistleblowing
system where employees can submit notices about potential non-compliance, e.g.
bribery, corruption, theft, sanctions, anti-trust, fraud, bullying and harassment,
modern slavery and other human rights breaches or other breaches to the Compa-
ny’s business standards. The whistleblowing channel is hosted by an independent
third party and employees can report with due process related to confidentiality
and anonymity and as per regulations in relevant jurisdictions. The procedures
strengthen transparency and ensure that the business standards are applied the
way they are intended. They also ensure that the Group has a professional way of
handling potential breaches of laws and regulations, self-imposed business stan-
dards or other serious irregularities. Concerns raised in good faith and in line with
good principles related to this, and also stated elsewhere, shall not be met with
retaliatory actions. During 2023, we received 85 cases through the Alert line. Cases
are reviewed and acted upon by Legal & Compliance, HR and relevant resources
as per the nature of each submitted case. No cases of corruption were confirmed
during 2023. We will during 2024 continue to improve the Alert line and raise aware-
ness to encourage employees to report any potential breaches to a superior, Legal
& Compliance or HR, or through the Alert line.
Cases reported through the whistleblower channel:
Deviations from the Code: None
22%
56%
18
2
5
7
16%
6%
Safety related
HR related
Compliance related
Perfomance and/or compensation
Total
32
109Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Salary and other remuneration for executive personnel
Contents →
Salary and other remuneration for executive
personnel
Remuneration policy and reporting
Wallenius Wilhelmsen’s remuneration policy covers all employees and is developed
to ensure we attract and retain competent employees. The remuneration princi-
ples are communicated to all employees to ensure a common understanding of
expectations and rewards, both linked to Wallenius Wilhelmsen’s strategic ambi-
tions, financial targets and business standards. The board determines the CEO’s
remuneration and establishes the framework for adjustments for other employees.
Salary adjustment for each employee is settled administratively within the limits
set. For these purposes, the administration carries out a comparison with salary
conditions in other companies and looks to the general level of pay adjustments
in the relevant markets. See also section on diversity, equity and inclusion. These
details are listed in an overview showing employee benefits, including salary and
other components of the CEO’s and other members of executive management’s
remuneration packages. Sustainability targets are part of management’s remu-
neration and include safety and carbon emissions. The details are provided in the
remuneration report in accordance with the Public Companies Act and relevant
regulations, and provided on our website as a separate document.
Short-term variable remuneration
As a key component of the total remuneration package, the annual, variable pay
scheme emphasizes the link between performance and pay and aims to be moti-
vational. It aligns the senior executives with relevant, clear targets derived from the
overall strategic goals and includes sustainability targets such as safety perfor-
mance, carbon emissions and #engage score. The variable pay scheme takes into
consideration both key financial targets and individual targets (derived from the
annual operating plan). The program applies to employees from senior manager
and above.
Long-term variable remuneration
In 2018, the board of directors approved the introduction of a long-term incentive
program (LTIP). The program is a performance share unit (PSU) program for the
members of the executive team and other defined employees in key positions.
Participation is subject to approval by the board of directors.
The purpose of the LTIP is to support Wallenius Wilhelmsen’s long-term strategy
and sustainability ambitions and drive growth and performance leading to long-
term value creation, and thus increased shareholder value over time. The program
should also contribute to the retention and increased motivation of top executives.
It aligns the interest of the executive team and other employees in key positions
with the interests of the owners and shareholders of Wallenius Wilhelmsen.
The PSU plan is structured as a conditional right for participants to receive shares
and synthetic shares after a three-year performance period. The award is maximum
50 percent of the annual fixed salary for the President and CEO and the CFO, and
between 30 and 40 percent for other executives.
Deviations from the Code: None
110Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Information and communication
Contents →
Information and communication
Communication principles and standards
Transparency, accountability and timeliness guide the Group’s communication
activities. In its reporting, Wallenius Wilhelmsen follows applicable securities and
accounting legislation, and the guidelines set by the Oslo Stock Exchange. Further
to this, the Norwegian Investor Relations Association, and its opinion of best prac-
tice related to financial reporting and investor relations information is also followed.
Communication channels and activities
The quarterly, interim and annual results are presented to the financial markets and
business journalists. All presentations are transmitted directly by webcast. Results,
presentations and webcasts are also posted on the Company’s investor relations
web pages. The market is regularly informed about Wallenius Wilhelmsen’s activ-
ities and results through stock exchange notices, annual and quarterly reports,
press releases and updates on the Company’s website. Extensive information about
the activities of the group is provided on the group’s website. A separate section
named ‘Investors relations’ includes relevant information to shareholders, including
reports and presentations, financial calendars, share information, contact infor-
mation, and news and media. The Company is present on social media but it has
strict rules on who can use social media for Company purposes, and it has clear
guidelines stating that stock-sensitive information must be published through the
Stock Exchange before it is made available on social media.
Silent period
For a period of four weeks before the planned release of quarterly financial reports
there is a silent period. This is a period where Wallenius Wilhelmsen cannot comment
on matters related to its general financial results or expectations, and contact with
external analysts, investors, and journalists will be minimized. This is to reduce the
risk of information leaks and ensure the market has access to similar information.
Deviations from the Code: Wallenius Wilhelmsen was in 2023 in deviation of section
13 of the code, which recommends guidelines covering Wallenius Wilhelmsen’s
contact with its shareholders outside of the general meeting. Although the board
of directors in 2023 had not determined such guidelines, shareholders were
invited to four quarterly presentations per year, as well as a capital markets day.
A financial calendar is also updated and made public for the shareholders annu-
ally. Wallenius Wilhelmsen’s website is also regularly updated with relevant infor-
mation. An investor relations policy has been adopted in 2023 and the company
will not deviate from the code on this point going forward.
111Wallenius Wilhelmsen – Annual Report 2023
Principles of governance
Takeovers
Contents →
Takeovers
The board has not established a policy for its response to possible takeover bids.
The board and management will seek to treat any takeover bids for Wallenius
Wilhelmsen’s activities or shares in a professional way and in the best interest of our
shareholders. If such circumstances arise, the board and the Wallenius Wilhelm-
sen’s management will seek to treat all shareholders equally, take action to ensure
shareholders receive sufficient and timely information to consider the offer and
otherwise abide by the principles of the corporate governance code.
Deviations from the Code: No policy developed, but intention described above.
Auditor
The board of directors is responsible for ensuring that the board and the audit
committee is provided with sufficient insight into the work of the auditor. In this
regard, the board of directors ensures that the auditor submits the main features
of the plan for the audit of the Company to the audit committee annually. The
Company’s auditor – PricewaterhouseCoopers AS (PwC) – attends all board audit
committee meetings and is always present when the annual financial statements
are reviewed. At these meetings, the auditor (i) reports on any material changes in
the Company’s accounting principles and key aspects of the audit, (ii) comments
on any material accounting estimates, and (iii) reports all material matters on which
there has been disagreement between the auditor and the executive management
of Wallenius Wilhelmsen. There were no disagreements between management and
PwC during 2023. Once a year, the board of directors reviews the Company’s internal
control procedures with the auditor, including weaknesses identified by the audi-
tor and proposals for improvement. It is important to the board that the auditor is
independent of management. The board therefore has at least one meeting with
PwC without senior management being present. To ensure the auditor’s indepen-
dence of Wallenius Wilhelmsen’s executive management, the board of directors
has established guidelines regarding the use of the auditor by the management
for services other than the audit. The auditor provides the board with confirmation
of independence in relation to non-audit services provided. For the financial year
2023, Bjørn Lund was the Company’s engagement partner from PwC. From the
financial year 2024, PwC will be replaced by EY as auditor. EY were appointed by
the annual general meeting on April 26, 2023.
Deviations from the Code: None
Main contents →
113Wallenius Wilhelmsen – Annual Report 2023
Wallenius Wilhelmsen ASA
Group
Consolidated income statement 115
Consolidated statement of comprehensive income 115
Consolidated balance sheet 116
Consolidated cash flow statement 117
Consolidated statement of changes in equity 118
Accounting policies 119
Note 1. Significant accounting judgments,
estimates and assumptions 130
Note 2. Segment reporting 133
Note 3. Operating expenses 138
Note 4. Employee benefits 139
Note 5. Other gain/loss 142
Note 6. Financial items 143
Note 7. Tax 144
Note 8. Goodwill, customer relations/contracts and
other intangible assets 148
Note 9. Vessels and other tangible assets 149
Note 10. Right-of-use assets 151
Note 11. Impairment on non-current assets 154
Note 12. Principal subsidiaries 157
Note 13. Subsidiaries with material non-controlling interest 159
Note 14. Share information and earnings per share 160
Note 15. Employee retirement plans 161
Note 16. Interest-bearing liabilities 163
Note 17. Financial risk 168
Note 18. Provisions and contingencies 179
Note 19. Specification of balance sheet 180
Note 20. Trade receivables and trade payables 181
Note 21. Restricted bank deposits and undrawn
commited drawing rights 183
Note 22. Related party transactions 184
Note 23. Events after the balance sheet date 186
Wallenius Wilhelmsen ASA
Parent
Income statement 188
Statement of comprehensive income 188
Balance sheet 189
Cash flow statement 190
Note 1. Specification of income statement 191
Note 2. Employee benefits 192
Note 3. Tax 194
Note 4. Investment in subsidiaries 195
Note 5. Equity 196
Note 6. Employee retirement obligations 198
Note 7. Interest-bearing debt 200
Note 8. Financial risk 201
Note 9. Specification of balance sheet 209
Note 10. Transactions with related parties 210
Note 11. Events after the balance sheet date 211
Alternative performance
measures (unaudited)
Reconciliation of alternative performance measures 213
Financial statements contents:
115
Wallenius Wilhelmsen ASA Group
Consolidated income statement
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Wallenius Wilhelmsen – Annual Report 2023
Consolidated income statement
Consolidated statement of comprehensive income
USD million Notes 2023 2022
Total revenue 2 5,149 5,045
Operating expenses 3 (3,342 ) (3,497 )
Operating profit before depreciation, amortization and impairment (EBITDA) 1,807 1,548
Other gain/(loss) 5 (6 ) (47 )
Depreciation and amortization 8,9,10 (577 ) (541 )
Impairment 8,9,11 (5 ) (29 )
Operating profit (EBIT) 1,218 931
Share of profit from joint ventures and associates 3 2
Interest income and other financial items 122 184
Interest expense and other financial expenses (309 ) (288 )
Financial items – net 6 (186 ) (104 )
Profit before tax 1,035 829
Tax expense 7 (68 ) (35 )
Profit for the period 967 794
Profit for the period attributable to:
Owners of the parent 846 679
Non-controlling interests 13 121 116
Basic and diluted earnings per share (USD) 14 2.00 1.60
USD million Notes 2023 2022
Profit for the period 967 794
Other comprehensive income/(loss):
Items that may subsequently be reclassified to the income statement:
Currency translation adjustment 4 (7 )
Items that will not be reclassified to the income statement:
Changes in the fair value of equity investments designated at fair value through
other comprehensive income (3 ) (5 )
Remeasurement pension liabilities, net of tax 15 (3 ) 11
Other comprehensive income/(loss), net of tax (1 ) (1 )
Total comprehensive income for the period 966 794
Total comprehensive income attributable to:
Owners of the parent 845 679
Non-controlling interests 121 115
Total comprehensive income for the period 966 794
116
Wallenius Wilhelmsen ASA Group
Consolidated balance sheet
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Wallenius Wilhelmsen – Annual Report 2023
Consolidated balance sheet
USD million Notes Dec 31, 2023 Dec 31, 2022
Assets
Non-current assets
Deferred tax assets 7 53 59
Goodwill and other intangible assets 8 360 395
Vessels and other tangible assets 9 3,871 3,943
Right-of-use assets 10 1,443 1,599
Other non-current assets 19 224 247
Total non-current assets 5,951 6,242
Current assets
Fuel/lube oil 138 139
Trade receivables 20 616 605
Other current assets 19 231 191
Cash and cash equivalents 1,705 1,216
Total current assets 2,690 2,151
Total assets 8,642 8,394
Equity and liabilities
Equity
Share capital 14 28 28
Retained earnings and other reserves 3,616 3,125
Total equity attributable to owners of the parent 3,644 3,153
Non-controlling interests 13 413 355
Total equity 4,056 3,508
Non-current liabilities
Pension liabilities 15 39 40
Deferred tax liabilities 7 67 71
Non-current interest-bearing debt 16 1,897 2,200
Non-current lease liabilities 16 1,097 1,254
Other non-current liabilities 19 63 95
Total non-current liabilities 3,163 3,659
Current liabilities
Trade payables 20 103 112
Current interest-bearing debt 16 406 316
Current lease liabilities 16 313 317
Current income tax liabilities 7 37 2
Other current liabilities 19 564 479
Total current liabilities 1,423 1,226
Total equity and liabilities 8,642 8,394
117
Wallenius Wilhelmsen ASA Group
Consolidated cash flow statement
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Wallenius Wilhelmsen – Annual Report 2023
Consolidated cash flow statement
USD million Notes 2023 2022
Cash flow from operating activities
Profit before tax 1,035 829
Financial (income)/expenses 6 186 104
Share of net income from joint ventures and associates (3 ) (2 )
Depreciation and amortization 8,9,10 577 541
Impairment 5 29
(Gain)/loss on sale of tangible assets (2 ) (14 )
Change in net pension assets/liabilities (2 ) (12 )
Change in derivative financial assets 5 6 47
Net change in other assets/liabilities 7 (190 )
Tax paid (39 ) (35 )
Net cash flow provided by operating activities 1,771 1,297
Cash flow from investing activities
Dividend received from joint ventures and associates 1 -
Proceeds from sale of tangible assets 2 45
Investments in vessels, other tangible and intangible assets 8,9 (163 ) (112 )
Investment in subsidiaries, net of cash acquired (13 ) (11 )
Interest received 69 15
Net cash flow used in investing activities (104 ) (62 )
Cash flow from financing activities
Proceeds from loans and bonds 16 473 1,002
Repayment of loans and bonds 16 (655 ) (1,095 )
Repayment of lease liabilities 16 (319 ) (352 )
Interest paid including interest derivatives (218 ) (189 )
Realized other derivatives (30 ) (14 )
Dividend to non-controlling interests (57 ) (16 )
Repurchase of own shares (4 ) -
Dividend to shareholders (362 ) (63 )
Net change in cash collateral 17 (4 ) (2 )
Net cash flow used in financing activities (1,177 ) (729 )
Net increase/(decrease) in cash and cash equivalents 490 505
Cash and cash equivalents at beginning of period 1,216 710
Cash and cash equivalents at end of period
1
1 The group is located and operating world-wide and every entity has several bank accounts in different currencies.
Unrealized currency effects are included in net cash provided by operating activities.
118
Wallenius Wilhelmsen ASA Group
Consolidated statement of changes in equity
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Wallenius Wilhelmsen – Annual Report 2023
Consolidated statement of changes in equity
USD million
Share
capital
Own
shares
Total
share
capital
Retained
earnings
and other
reserves Total
Non-
controlling
interests
Total
equity
2023
Balance at December 31, 2022 28 - 28 3,125 3,153 355 3,508
Profit for the period - - - 846 846 121 967
Other comprehensive loss - - - (1 ) (1 ) - (1 )
Total comprehensive income - - - 845 845 121 966
Disposal of own shares - - - 3 3 - 3
Repurchase of own shares - - - (4 ) (4 ) - (4 )
Change in non-controlling interests - - - 5 5 (6 ) -
Dividend to owners of the parent - - - (359 ) (359 ) - (359 )
Dividend to non-controlling interests - - - - - (57 ) (57 )
Balance at December 31, 2023 28 - 28 3,616 3,644 413 4,056
USD million
Share
capital
Own
shares
Total
share
capital
Retained
earnings
and other
reserves Total
Non-
controlling
interests
Total
equity
2022
Balance at December 31, 2021 28 - 28 2,511 2,539 266 2,804
Profit for the period - - - 679 679 116 794
Other comprehensive loss - - - - - (1 ) (1 )
Total comprehensive income - - - 679 679 115 794
Disposal of own shares - - - 1 1 - 1
Change in non-controlling interests - - - (3 ) (3 ) (8 ) (11 )
Dividend to owners of the parent - - - (63 ) (63 ) - (63 )
Dividend to non-controlling interests - - - - - (16 ) (16 )
Balance at December 31, 2022 28 - 28 3,125 3,153 355 3,508
As of December 31, 2023, own shares represented 0.1 percent (2022: 0.1 percent) of the share capital in nominal value.
119
Wallenius Wilhelmsen ASA Group
Accounting policies
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Accounting policies
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Accounting policies
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Note 1. Significant accounting judgments,estimates and assumptions
131
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Note 1. Significant accounting judgments,estimates and assumptions
132
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133
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Note 2. Segment reporting
134
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Note 2. Segment reporting
135
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Note 2. Segment reporting
136
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Note 2. Segment reporting
137
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Note 2. Segment reporting
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Note 3. Operating expenses
139
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Note 4. Employee benefits
140
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Note 4. Employee benefits
141
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Note 4. Employee benefits
142
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Note 5. Other gain/loss
143
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Note 6. Financial items
144
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Note 7. Tax
145
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Note 7. Tax
146
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Note 7. Tax
147
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Note 7. Tax
148
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Note 8. Goodwill, customer relations/contracts and other intangible assets
149
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Note 9. Vessels and other tangible assets
150
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Note 9. Vessels and other tangible assets
151
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Note 10. Right-of-use assets
152
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Note 10. Right-of-use assets
153
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Note 10. Right-of-use assets
154
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Note 11. Impairment on non-current assets
155
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Note 11. Impairment on non-current assets
156
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Note 11. Impairment on non-current assets
157
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Note 12. Principal subsidiaries
158
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Note 12. Principal subsidiaries
159
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Note 13. Subsidiaries with material non-controlling interest
160
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Note 14. Share information and earnings per share
161
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Note 15. Employee retirement plans
162
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Note 15. Employee retirement plans
163
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Note 16. Interest-bearing liabilities
164
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Note 16. Interest-bearing liabilities
165
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Note 16. Interest-bearing liabilities
166
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Note 16. Interest-bearing liabilities
167
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Note 16. Interest-bearing liabilities
168
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Note 17. Financial risk
169
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170
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Note 17. Financial risk
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Note 17. Financial risk
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Note 18. Provisions and contingencies
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Note 19. Specification of balance sheet
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Note 20. Trade receivables and trade payables
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Note 20. Trade receivables and trade payables
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Note 21. Restricted bank deposits and undrawn commited drawing rights
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Note 22. Related party transactions
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Note 22. Related party transactions
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Note 23. Events after the balance sheet date
188
Wallenius Wilhelmsen ASA Parent
Income statement
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Income statement
Statement of comprehensive income
USD million Notes 2023 2022
Operating expenses
Employee benefits 2 — (13)
Other operating expenses 1 (18) (9)
Total operating expenses (18) (23)
Net operating profit/(loss) (18) (23)
Financial income and expenses
Financial income 1 425 156
Financial expenses 1 (60) (47)
Financial derivatives 1 (30) (72)
Financial income/(expense) 335 6
Profit before tax 318 14
Tax income/(expense) 3 (2) 14
Profit for the year 316 27
Transfers and allocations
(To)/from equity 5 (316) (27)
Total transfers and allocations (316) (27)
USD million Notes 2023 2022
Profit for the year 316 27
Other comprehensive income:
Items that will not be reclassified to the income statement
Remeasurement pension liabilities, net of tax 6 (1) 1
Other comprehensive income/(loss), net of tax (1) 1
Total comprehensive income 315 28
Total comprehensive income attributable to:
Owners of the parent 315 28
Total comprehensive income for the year 315 28
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Balance sheet
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Balance sheet
USD million Notes Dec 31, 2023 Dec 31, 2022
Assets
Non-current assets
Deferred tax assets 3 21 23
Investments in subsidiaries 4 3,016 2,966
Other non-current assets 9 2 130
Total non-current assets 3,038 3,118
Current assets
Other current assets 9 160 209
Cash and bank deposits 131 21
Total current assets 291 230
Total assets 3,330 3,348
Equity and liabilities
Equity
Share capital 5 28 28
Retained earnings and other reserves 5 2,627 2,673
Total equity 2,656 2,701
Non-current liabilities
Pension liabilities 6 21 21
Non-current interest-bearing debt 7 414 529
Financial derivatives 8 54 72
Total non-current liabilities 489 623
Current liabilities
Public duties payable - -
Other current liabilities 9 185 24
Total current liabilities 185 25
Total equity and liabilities 3,330 3,348
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Cash flow statement
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Cash flow statement
USD million 2023 2022
Cash flow from operating activities
Profit before tax 318 14
Financial (income)/expense (335) (36)
Change in net pension assets/liabilities (2) (4)
Change in current assets/liabilities – group companies 57 (105)
Net change in other assets/liabilities 24 82
Net cash provided by/(used in) operating activities 62 (50)
Cash flow from investing activities
Investments in subsidiaries, associates and joint ventures (50) (40)
Interest received 12 10
Net cash flow provided by/(used in) investing activities (38) (30)
Cash flow from financing activities
Proceeds from issuance of debt 95 142
Repayment of debt (50) (133)
Subsidaries' repayment of debt 126 188
Proceeds from issuance of debt to subsidaries - 31
Repayment of debt to subsidaries - (12)
Group contribution/ dividend from subsidaries 346 1
Disposal of own shares 3 1
Purchase of own shares (4) -
Dividend to shareholders (359) (63)
Cash from financial derivatives (29) (14)
Interest paid including interest rate derivatives (41) (40)
Net cash flow provided by/(used in) financing activities 87 101
Net increase/(decrease) in cash and cash equivalents 111 20
Cash and cash equivalents at beginning of the period
1
21 -
Cash and cash equivalents at end of the period 131 21
1 The company has several banks accounts in different currencies. The cash flow effect from revaluation of cash and cash equivalents is included in net cash flow provided by/
(used in) operating activities. The company has no restricted bank deposits.
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Note 1. Specification of income statement
Note 1. Specification of income statement
Expensed audit fee
USD million Notes 2023 2022
Other operating expenses
Intercompany expenses 10 (13) (6)
Other administration expenses (5) (3)
Total other operating expenses (18) (9)
Financial income/(expenses)
Financial income
Dividend from subsidiaries and group contribution 10 378 67
Interest income 10 23 21
Net currency gain 25 68
Total financial income 425 156
Financial expenses
Interest expenses (44) (38)
Net currency loss (12) (6)
Other financial expenses (4) (4)
Total financial expenses (60) (47)
Financial derivatives
Realized gain/(loss) related to currency derivatives (29) (14)
Realized gain/(loss) related to interest rate derivatives 3 (2)
Unrealized gain/(loss) related to currency derivatives (1) (67)
Unrealized gain/(loss) related to interest rate derivatives (2) 11
Total financial derivatives (30) (72)
Financial income/(expenses) 335 36
USD thousand 2023 2022
Statutory audit 187 189
Total expensed audit fee 187 189
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Note 2. Employee benefits
Note 2. Employee benefits
The board’s remuneration for the financial year 2023 will be approved by the general
meeting on April 30, 2024 and paid/expensed in 2024.
At the AGM in 2022, Jonas Kleberg and Marianne Lie resigned from the board of
directors.
Hans Åkervall and Yngvil Eriksson Åsheim were elected as board members at the
AGM in 2022. They did not receive any remuneration in 2022.
Remuneration paid in other currencies than USD will not be comparable year-on-
year due to changes in exchange rates.
The long-term executive incentive plan shows significant fluctuations, which are
largely due to variations in the share price affecting the fair value of the liability.
See separate Remuneration report for further details regarding remuneration to
top executives.
Loans and guarantees
There were no loans or guarantees to members of the board per December 31, 2023.
USD million 2023 2022
Salary/remuneration board of directors 3 3
Long-term executive incentive plan (5) 10
Payroll tax 1 1
Pension cost 1 -
Other remuneration (1) (1)
Total employee benefits - 13
USD thousand 2023 2022
Remuneration of the board of directors
Rune Bjerke 157 159
Thomas Wilhelmsen 62 59
Margareta Alestig 65 66
Anna Felländer 62 66
Yngvil Eriksson Åsheim 62 -
Hans Åkervall 62 -
Marianne Lie - 69
Jonas Kleberg - 57
Nomination committee
Anders Ryssdal 11 11
Jonas Kleberg - 7
Carl Erik Steen 7 7
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Note 2. Employee benefits
Shares owned or controlled by representatives
of the group at December 31, 2023
The two main shareholders of Wallenius Wilhelmsen ASA are Wilh. Wilhelmsen
Holding ASA with 37.87 percent of the shares and Walleniusrederierna AB with 37.82
percent of the shares.
The Wilhelmsen family controls Wilh. Wilhelmsen Holding ASA through Tallyman
AS, and Thomas Wilhelmsen controls Tallyman AS. The Wallenius Kleberg family
controls Walleniusrederierna AB through Rederi AB Soya (Soya group).
Name Number of shares Percent of shares
Board of directors
Rune Bjerke 25,750 0.01%
Thomas Wilhelmsen 161,375,095 38.14%
Margareta Alestig 600 -
Anna Felländer 1,400 -
Yngvil Eriksson Åsheim 4,250 -
Hans Åkervall - -
Senior executives
Chief Executive Officer (CEO) – Lasse Kristoffersen 5,000 -
Chief Financial Officer (CFO) – Torbjørn Wist 74,761 0.02%
Executive Vice President (EVP) and Chief Operating Officer (COO) shipping services – Xavier Leroi 47,768 0.01%
Executive Vice President (EVP) and Chief Operating Officer (COO) logistics services – Michael Hynekamp 99,532 0.02%
Chief People Officer (CPO) – Wenche Agerup - -
Chief Customer Officer (CCO) – Pia Synnerman - -
Chief Technology and Information Officer (CTIO) – Gro Rognstad - -
Chief Communications and Marketing Officer (CCMO) – Anette Maltun Koefoed 2,010 -
Nomination committee
Anders Ryssdal - -
Jonas Kleberg - -
Carl Erik Steen 30,000 0.01%
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Note 3. Tax
Note 3. Tax
Deferred tax assets not recognized (valuation allowance) in the balance sheet at
December 31, 2023 is USD 54 million. This relates to deferred tax assets arising from
tax losses carried forward in the company, see note 1 to the group financial state-
ments for additional information.
USD million 2023 2022
Distribution of tax (income)/expense for the year
Change in deferred tax 2 (14)
Total tax (income)/expense 2 (14)
Basis for tax computation
Profit before tax 318 14
22% tax 70 3
Tax effect from
Non-taxable income (75) (12)
Deferred tax assets not recognized (valuation allowance) 11 2
Currency translation from USD to local currency for tax purposes (3) (6)
Total tax (income)/expense 2 (14)
Effective tax rate 0.7% (101.9%)
Deferred tax assets
Tax effect of temporary differences
Non-current liabilities and provisions for liabilities 21 23
Deferred tax assets 21 23
Composition of deferred tax and changes in deferred tax
Deferred tax assets at January 1 23 11
Charged directly to equity - -
Change of deferred tax through income statement (2) 14
Currency translation differences (1) (1)
Deferred tax assets at December 31 21 23
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Note 4. Investment in subsidiaries
Note 4. Investment in subsidiaries
Investments in subsidiaries are initially measured at cost. When there are indica-
tions of impairment, an impairment test is performed.
USD million Business office
Voting share/
ownership share
Book value
2023
Book value
2022
Wallenius Wilhelmsen Ocean Holding AS Lysaker, Norway 100% 1,267 1,267
Wallenius Wilhelmsen International Holding AS Lysaker, Norway 100% 1,116 1,116
ARC Group Holding AS Lysaker, Norway 100% 200 200
Wallenius Wilhelmsen Solutions Holding AS Lysaker, Norway 100% 433 383
Total investments in subsidiaries 3,016 2,966
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Note 5. Equity
Note 5. Equity
The nominal share value is NOK 0.52 each translated to USD at the historical
exchange rate.
Own shares are meant to cover management’s share incentive program. When
any of the programs are exercised, there will be a reduction of own shares and the
price paid in excess of the nominal value of the shares increases retained earnings.
USD million
Share
capital
Own
shares
Total
share
capital
Other
paid-in
capital
Retained
earnings Total
2023
Change in equity
Equity at December 31, 2022 28 - 28 1,079 1,594 2,701
Profit for the year - - - - 316 316
Other comprehensive loss for the year - - - - (1) (1)
Total comprehensive income - - - - 315 315
Sale of own shares - - - 3 - 3
Repurchase of own shares - - - - (4) (4)
Dividend to owners of the parent - - - - (359) (359)
Equity at December 31, 2023 28 - 28 1,083 1,545 2,656
USD million
Share
capital
Own
shares
Total
share
capital
Other
paid-in
capital
Retained
earnings Total
2022
Change in equity
Equity at December 31, 2021 28 - 28 1,079 1,628 2,735
Profit for the year - - - - 27 27
Other comprehensive income for the year - - - - 1 1
Total comprehensive income - - - - 28 28
Sale of own shares - - - - 1 1
Dividend to owners of the parent - - - - (63) (63)
Equity at December 31, 2022 28 - 28 1,079 1,594 2,701
The company's number of shares is as follows: Dec 31, 2023 Dec 31, 2022
Total number of shares 423,104,938 423,104,938
Own shares 568,338 586,119
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Note 5. Equity
The largest shareholders at December 31, 2023
Shareholders Notes Number of shares Percent of shares
Wilh. Wilhelmsen Holding ASA 10 160,210,000 37.87%
Skandinaviska Enskilda Banken AB
1
10 160,000,000 37.82%
Folketrygdfondet 10,228,160 2.42%
Clearstream Banking S.A. 5,208,580 1.23%
State Street Bank And Trust Comp 3,435,492 0.81%
BNP Paribas 3,211,454 0.76%
Verdipapirfondet Storebrand Norge 3,019,757 0.71%
Verdipapirfondet Alfred Berg Gamba 2,356,964 0.56%
JPMorgan Chase Bank, N.A., London 2,184,233 0.52%
UBS Switzerland AG 2,183,765 0.52%
Other 71,066,533 16.80%
Total number of shares 423,104,938 100.00%
1 The nominee account held with Skandinaviska Enskilda Banken AB for 160,000,000 shares is owned by Wallenius Lines AB.
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Note 6. Employee retirement obligations
Note 6. Employee retirement obligations
Description of the pension scheme
In order to reduce the company’s exposure to certain risks associated with defined
benefit plans, such as longevity, inflation, effects of compensation increases, the
company regularly reviews and continuously improves the design of its post-em-
ployment defined benefit plans. Until 31 December 2014, the company provided both
defined benefit pension plans and defined contribution pension plans.
The remaining pension obligation is related to some employees in the company’s
senior executive management. These obligations are mainly covered via company
annuity policies in Storebrand.
Pension costs and obligations include payroll taxes. No provision has been made
for payroll tax in pension plans where the plan assets exceed the plan obligations.
The liability recognized in the balance sheet in respect of the remaining defined
benefit pension plans is the present value of the defined benefit obligation at the
end of the reporting period less the fair value of plan assets. The defined benefit
obligations are calculated annually by independent actuaries using the projected
unit credit method. The present value of the defined benefit obligation is deter-
mined by discounting the estimated future cash outflows using interest rates of
high-quality corporate bonds that are denominated in the currency in which the
benefits will be paid, and that have terms to maturity approximating to the terms
of the related pension obligation.
Actuarial gains and losses arising from experience adjustments and changes in
actuarial assumptions are charged or credited to equity in other comprehensive
income in the period in which they arise.
Anticipated pay regulation are business sector specific, influenced by composition
of employees under the plans. Anticipated increase in G is tied up to the anticipated
pay regulations. Anticipated regulation of pensions is determined by the difference
between return on assets and the hurdle rate.
Number of people covered by pension schemes at December 31 2023 2022
In retirement (inclusive disability pensions) 511 508
Total number of people covered by pension schemes 511 508
Financial assumptions applied for the valuation of liabilities 2023 2022
Discount rate 3.7% 3.6%
Anticipated pay regulation 3.5% 3.5%
Anticipated regulation of National Insurance base amount (G) 3.5% 3.5%
Anticipated regulation of pensions 2.4% 1.7%
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Note 6. Employee retirement obligations
USD thousand 2023 2022
Pension expenses
Interest expense on defined benefit obligation 685 415
Net pension expenses 685 415
Remeasurements – Other comprehensive income
Effect of changes in financial assumptions (993) 496
Effect of experience adjustments (150) 669
Total remeasurements included in OCI (1,143) 1,164
Tax effect of pension OCI 251 (256)
Net remeasurement in OCI (891) 908
USD thousand 2023 2022
Pension obligations
Defined benefit obligations at January 1 21,363 26,990
Interest expense 685 415
Benefit payments from employer (1,752) (2,025)
Remeasurements – change in assumptions 993 (496)
Remeasurements – experience adjustments 150 (669)
Effect of changes in foreign exchange rates (659) (2,852)
Pension obligations at December 31 20,780 21,363
Payments from operations are estimated at USD 1.8 million in 2024 (2023: USD 1.8 million).
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Note 7. Interest-bearing debt
Note 7. Interest-bearing debt
Reconciliation of liabilities arising from financing activities
USD million Notes 2023 2022
Interest-bearing debt
Bonds 560 529
Repayment schedule for interest-bearing debt
Due in year 1 9 145 -
Due in year 2 - 203
Due in year 3 197 -
Due in year 4 123 203
Due in year 5 and later 99 127
Total interest-bearing debt repayable 565 534
Amortized financing costs (5) (4)
Book value interest-bearing debt 560 529
As of December 31, 2023, weighted average interest rate on interest-bearing debt is 9.02 percent.
USD million
Non-current
interest-bearing
debt
Current
interest-bearing
debt
Total
financing
activities
Net debt December 31, 2022 529 - 529
Cash flows (proceeds) from loans and bonds 95 - 95
Cash flow (repayments) from loans and bonds (50) - (50)
Foreign exchange movement 12 (25) (14)
Other non-cash movements (1) - (1)
Reclassification (170) 170 -
Net debt December 31, 2023 414 145 560
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Note 8. Financial risk
Note 8. Financial risk
The company has exposure to the following financial risks from its operations:
•
Market risk
- Foreign exchange rate risk
- Interest rate risk
•
Credit risk
•
Liquidity risk
The financial risk management program of the group, and by extension the company,
focuses on the unpredictability of financial markets and seek to minimize the
potential adverse effects on the group’s financial performance. Derivative financial
instruments are used to hedge certain exposures.
Identification, evaluation and hedging of financial risk is carried out by the central
treasury department under policies approved by the board of directors.
Separate policies have not been established for the parent company for the market
risks. As a consequence, financial derivatives part of the group’s economic hedg-
ing strategies, can be held by the company and included in the parent company’s
financial statements without any direct economic hedging effect for the parent
company. Hedge accounting has not been applied for these economic hedges.
Any change in market value of economic hedge derivatives is therefore recognized
in the income statement.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange
rates and interest rates, will affect the company’s profit or the value of its holdings
of financial instruments. The sensitivity analyses in the sections below relate to
the position of financial instruments at December 31, 2023. It is assumed that the
sensitivities have a symmetric impact, i.e., an increase in rates result in the same
absolute movement as a decrease in rates.
Foreign exchange rate risk
The company is exposed to currency risk on revenues and costs in non-functional
currencies (transaction (cash flow) risk) and balance sheet items denominated
in currencies other than USD (translation risk). The company’s largest individual
foreign exchange exposure is NOK against USD.
Various financial derivatives, such as forwards, options and cross-currency (basis)
swaps are used to hedge this exposure. Key aspects of the currency hedging policy
are:
•
Net cash flows in other significant currencies than USD can be hedged using
a layered model with up to a 36-month horizon
•
Significant capital commitments or divestments in other currencies than USD
are hedged
•
Balance sheet exposure in currencies other than USD shall in general be
hedged. The group will in each case, however, consider e.g., the asset-liability
match and the currency of any related cash flow
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Note 8. Financial risk
Economic hedging of transaction risk
The group has an economic hedging program for NOK and SEK exposures in place
as of both year-ends 2023 and 2022.
The portfolio of derivatives used to economically hedge the group’s transaction
risk exhibit the following income statement sensitivity:
Economic hedging of translation risk
The company has outstanding NOK-denominated bonds of about NOK 5.72 billion
(USD 565 million). The corresponding amount was NOK 5.25 billion (USD 534 million)
for 2022. All of this debt (NOK 5.72 billion) has been economically hedged against
USD with cross-currency swaps.
FX sensitivities
The company monitors the net exposure and calculates sensitivities on a regular
basis, based on average market volatility per currency cross. Sensitivities showing
a potential accounting effect below USD 2 million are considered non-material. On
December 31, 2023, there were no material FX sensitivities. All changes in the fair
value of financial derivatives are recognized in the income statement. Equity sensi-
tivities will therefore equal sensitivities in the income statement.
Interest rate risk
The group, of which the company is a part, seeks to economically hedge between
20-80 percent of the average net interest rate exposure over the next five years,
predominantly through interest rate swaps and fixed rate loans.
Interest rate hedges held by the company corresponded to about 10 percent (2022:
about 10 percent) of its average net interest exposure at December 31, 2023. It should
be noted that hedge levels are considered at a group level. As such hedge levels for
the company can be higher or lower than group policy while still being within policy.
USD million
Income statement sensitivities of economic hedge program
Change in exchange rate levels (20%) (10%) 0% 10% 20%
Transaction risk
USD/NOK spot rate 8.10 9.12 10.13 11.14 12.15
Income statement effect (post tax) 3 1 - (1) (3)
USD/SEK spot rate 8.04 9.05 10.05 11.06 12.06
Income statement effect (post tax) 2 1 - (1) (2)
(Tax rate used is 22 percent, which equals the corporate tax rate in Norway)
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Note 8. Financial risk
As of December 31, 2023 the company did not hold any forward starting swaps
(2022: nil).
The average remaining term of the existing loan portfolio is about 2.5 years, while
the average remaining term of the running interest rate derivatives and fixed inter-
est loans is approximately 0.2 years.
Interest rate sensitivities
The company’s interest rate risk originates from differences in duration and amount
between interest-bearing assets and interest-bearing liabilities. On the asset side,
bank deposits are subject to risk from changes in the general level of interest rates,
primarily in USD. On the liability side, the mix of debt and issued bonds with attached
fixed or floating coupons – in combination with financial derivatives on interest
rates (plain vanilla interest rates swaps) – are exposed to changes in the level and
curvature of interest rates. The group uses the weighted average duration of inter-
est-bearing assets, liabilities and financial interest rate derivatives to compute the
group’s sensitivity towards changes in interest rates. The below table summarizes
the interest rate sensitivity towards the fair value of assets and liabilities:
Apart from the fair value sensitivity calculation based on the group’s net duration,
the group has cash flow risk exposure stemming from the risk of increased future
interest payments on the unhedged part of the group’s interest-bearing debt.
Changes in fair value of financial derivatives are recognized in the income statement.
Book value equals market value.
USD million 2023 2022
Maturity schedule economic interest rate hedges (nominal amounts)
Due in year 1 150 -
Due in year 2 - 150
Total economic interest rate hedges 150 150
USD million
Change in interest rate level (2%) (1%) 0% 1% 2%
Fair value sensitivities of interest rate risk
Estimated change in fair value (post tax) 2 1 - (1) (2)
(Tax rate used is 22 percent, which equals the corporate tax rate in Norway)
Assets Liabilities Assets Liabilities
USD million 2023 2022
Interest rate derivatives 1 - - -
Derivatives used for economic cash flow hedging 2 - 3 -
Derivatives used for economic translation risk hedging (basis swaps) - 75 - 72
Total market value of derivatives 2 75 3 72
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Note 8. Financial risk
Credit risk
Credit risk is the risk of financial loss to the company if a customer or counterparty
to a financial instrument fails to meet its contractual obligations, and originates
primarily from the company’s customer receivables, financial derivatives used to
economically hedge interest rate risk or foreign exchange risk, as well as bank
deposits.
Cash and cash equivalents
The company’s exposure to credit risk on cash and cash equivalents is consid-
ered to be very limited as the company maintains banking relationships with well
reputed and familiar banks. In addition, the group – of which the company is a part
– in most instances – has a net debt position towards these banks.
Financial derivatives
The company’s exposure to credit risk on its financial derivatives is considered to
be limited as the group’s counterparties are well reputed and familiar banks.
Guarantees
The company has provided a parent company guarantee towards the banks involved
in the financing of Wallenius Wilhelmsen Ocean and Wallenius Wilhelmsen Solutions.
Credit risk exposure
The carrying amount of financial assets represents the maximum credit exposure.
The maximum exposure to credit risk at the reporting date was:
Book value equals market value.
USD million Notes 2023 2022
Exposure to credit risk
Other non-current assets from group companies 9 1 127
Financial derivatives asset 9 2 3
Receivables from group companies 9 152 207
Other current receivables 9 7 2
Cash and cash equivalents 131 21
Total exposure to credit risk 293 359
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Note 8. Financial risk
Liquidity risk
The company’s approach to managing liquidity is to secure that it will always have
sufficient liquidity to meet its liabilities, under both normal and stressed condi-
tions, without incurring unacceptable losses or risking damage to the company’s
reputation.
The company regularly issues NOK debt in the Norwegian bond market, with
proceeds swapped into USD via cross-currency swaps at the time of each issue. If
the USD/NOK exchange rate increases above certain thresholds from the rate at
the time of issue, the company will need to post cash collateral with the counter-
parties based on the mark-to-market value above the threshold. The cash collateral
is released back to the company if the USD/NOK exchange rate decreases. As of
December 31, 2023, the group had posted USD 5 million in cash collateral relating
to cross-currency swaps for the four outstanding NOK bonds. The cash collateral
is recognized in Other current assets in the balance sheet.
The company’s liquidity risk is considered low in that it holds significant liquid assets.
At December 31, 2023, the company had USD 233 million (2022: USD 211 million) in
liquid assets which can be realized over a three-day period.
Undiscounted cash flows financial liabilities
Interest expenses on interest-bearing debt included above have been computed
using interest rate curves as of year-end.
USD million
Less than
1 year
Between
1 and 2 years
Between
2 and 5 years
2023
Bonds 279 66 494
Financial derivatives (2) - -
Total interest-bearing debt 277 66 494
Current liabilities
(excluding next year’s instalment on interest-bearing debt and financial derivatives) 19 - -
Total gross undiscounted cash flows financial liabilities at December 31 295 66 494
USD million
Less than
1 year
Between
1 and 2 years
Between
2 and 5 years
2022
Bonds 62 261 397
Financial derivatives (3) - -
Total interest-bearing debt 60 261 397
Current liabilities
(excluding next year’s instalment on interest-bearing debt and financial derivatives) 24 - -
Total gross undiscounted cash flows financial liabilities at December 31 84 261 397
206
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Financial statements contents →
Wallenius Wilhelmsen ASA Parent
Note 8. Financial risk
Covenants
The main covenant on the company’s bond debt is limitation on the ability to pledge
assets. As of the balance date, the group is in compliance with all financial and
non-financial covenants.
Fair value estimation
The fair value of financial instruments traded in an active market is based on
quoted market prices at the balance sheet date. The fair value of financial instru-
ments not traded in an active market (over-the-counter contracts) are based on
third party quotes.
These quotes use the maximum number of observable market rates for price discov-
ery. Specific valuation techniques used to value financial instruments include:
•
Quoted market prices or dealer quotes for similar instruments
•
The fair value of interest rate swaps is calculated as the present value of the
estimated future cash flows based on observable yield curves
•
The fair value of forward foreign exchange contracts is determined using
forward exchange rates at the balance sheet date, with the resulting value
discounted back to present value and
•
The fair value of foreign exchange option contracts is determined using
observable forward exchange rates, volatility, yield curve and time-to-maturity
parameters at the balance sheet date, resulting in an option premium
The fair value of financial liabilities for disclosure purposes is estimated by discount-
ing the future contractual cash flows at the current market interest rate that is
available to the group for similar financial instruments.
Interest-bearing debt
Bonds are considered to be level 1 in the fair value hierarchy.
USD million Fair value Book value
2023
Bonds 584 560
Total interest-bearing liabilities at December 31 584 560
USD million Fair value Book value
2022
Bonds 543 529
Total interest-bearing liabilities at December 31 543 529
207
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Financial statements contents →
Wallenius Wilhelmsen ASA Parent
Note 8. Financial risk
Fair value hierarchy
The fair value of financial instruments not traded in an active market are based on
third-party quotes (mark-to-market). These quotes use the maximum number of
observable market rates for price discovery.
The different valuation techniques typically applied by financial counterparties
(banks) are described above. These instruments – currency and interest rate deriv-
atives – are included in level 2.
See note 17 to the group financial statements for further information on financial risk.
USD million Level 2 Total balance
2023
Financial assets at fair value through income statement
- Financial derivatives 2 2
Total assets at December 31 2 2
Financial liabilities at fair value through income statement
- Financial derivatives 75 75
Total liabilities at December 31 75 75
USD million Level 2 Total balance
2022
Financial assets at fair value through income statement
- Financial derivatives 3 3
Total assets at December 31 3 3
Financial liabilities at fair value through income statement
- Financial derivatives 72 72
Total liabilities at December 31 72 72
208
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Wallenius Wilhelmsen ASA Parent
Note 8. Financial risk
Financial instruments by category
USD million
Assets at
amortized cost
Assets at fair
value through the
income statement Total
2023
Assets
Other non-current assets 1 - 1
Financial derivatives 2 - 2
Other current assets 159 - 159
Cash and cash equivalents 131 - 131
Assets at December 31 293 - 293
USD million
Liabilities at fair
value through the
income statement
Other financial
liabilities at
amortized cost Total
2023
Liabilities
Non-current interest-bearing debt - 414 414
Financial derivatives 75 - 75
Current interest-bearing debt - 145 145
Other current liabilities - 18 18
Liabilities at December 31 75 578 653
USD million
Assets at
amortized cost
Assets at fair
value through the
income statement Total
2022
Assets
Other non-current assets 127 - 127
Financial derivatives 3 - 3
Other current assets 209 - 209
Cash and cash equivalents 21 - 21
Assets at December 31 359 - 359
USD million
Liabilities at fair
value through the
income statement
Other financial
liabilities at
amortized cost Total
2022
Liabilities
Non-current interest-bearing debt - 529 529
Financial derivatives 72 - 72
Other current liabilities - 24 24
Liabilities at December 31 72 553 625
209
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Financial statements contents →
Wallenius Wilhelmsen ASA Parent
Note 9. Specification of balance sheet
Note 9. Specification of balance sheet
The fair value of current receivables and payables is virtually the same as the carry-
ing amount, since the effect of discounting is insignificant.
USD million Notes 2023 2022
Other non-current assets
Other non-current assets from group companies 10 1 127
Financial derivatives 1 3
Total other non-current assets 2 130
Other current assets
Receivables from group companies 10 152 207
Financial derivatives 1 -
Other current receivables 7 2
Total other current assets 160 209
Other current liabilities
Trade payables - -
Payables to group companies 10 6 4
Next year's installment on interest-bearing debt 7 145 -
Financial derivatives liability 21 -
Other current liabilities 11 20
Total other current liabilities 185 24
210
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Financial statements contents →
Wallenius Wilhelmsen ASA Parent
Note 10. Transactions with related parties
Note 10. Transactions with related parties
The two main shareholders of Wallenius Wilhelmsen ASA are Walleniusrederierna
AB and Wilh. Wilhelmsen Holding ASA with 37.82 and 37.87 percent of the shares
respectively. The Wilhelmsen family controls Wilh. Wilhelmsen Holding ASA through
Tallyman AS, and the Wallenius Kleberg family controls Walleniusrederierna AB
through Rederi AB Soya (Soya group).
For participation in the board of directors, Thomas Wilhelmsen received USD 62
thousand. Jonas Kleberg has not received compensation for participation in the
nomination committee.
See note 2 regarding fees to board of directors, note 5 regarding ownership and
separate remuneration report for further details. The company has undertaken
several transactions with related parties within the Wilh. Wilhelmsen Holding group
(WWH group). All transactions are entered into in the ordinary course of business
of the company. WWH delivers services to the company related to inter alia human
resources (shared services) and in-house services such as canteen, post, switch-
board and rent of office facilities. Generally, shared services are priced using a cost
plus 5 percent margin calculation, in accordance with the principles set out in the
OECD Transfer Pricing Guidelines and are delivered according to agreements that
are renewed annually.
Guarantees
The company has provided a parent company guarantee towards the banks involved
in the financing of Wallenius Wilhelmsen Ocean and Wallenius Wilhelmsen Solutions.
USD million Notes 2023 2022
Income statement
Operating expenses to subsidiaries 1 (13) (6)
Dividend from subsidiaries and group contribution 1 378 67
Other financial income from subsidiaries 21 21
USD million Notes 2023 2022
Balance sheet
Non-current assets from subsidiaries 9 1 127
Current receivables from subsidiaries 9 152 207
Current payables to subsidiaries 9 6 4
211
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Wallenius Wilhelmsen – Annual Report 2023
Financial statements contents →
Wallenius Wilhelmsen ASA Parent
Note 11. Events after the balance sheet date
Note 11. Events after the balance sheet date
Dividend
The board proposes a dividend of USD 1.14 per share to be paid for full-year 2023 as
well as a revised dividend policy to be voted upon at the company’s AGM on April
30, 2024.
213
Alternative performance measures (unaudited)
Reconciliation of alternative performance measures
Main contents →
Wallenius Wilhelmsen – Annual Report 2023
Financial statements contents →
Reconciliation of alternative performance
measures
Definitions of Alternative Performance Measures (APMs)
This section describes the non-GAAP financial alternative performance measures
(APM) that are used in the quarterly and annual reports.
The following measures are not defined nor specified in the applicable finan-
cial reporting framework of IFRS. They may be considered as non-GAAP financial
measures that may include or exclude amounts that are calculated and presented
according to IFRS. These APMs are intended to enhance comparability of the results
and cash flows from period to period and it is the group’s experience that these
are frequently used by investors, analysts and other parties. Internally, these APMs
are used by management to measure performance on a regular basis. The APMs
should not be considered as a substitute for measures of performance in accor-
dance with IFRS.
EBITDA is defined as Total revenue less Operating expenses. EBITDA is used as an
additional measure of the group’s operational profitability, excluding the impact
from financial items, taxes, depreciation and amortization and impairment/(rever-
sal of impairment).
EBITDA adjusted is defined as EBITDA excluding items in the result which are not
regarded as part of the underlying business. Examples of such items are restruc-
turing costs, gain/loss on sale of vessels and other tangible assets and other
income and expenses which are not primarily related to the period in which they
are recognized.
EBIT is defined as Total revenue less Operating expenses, Other gain/loss and
depreciation, amortization and impairment/(reversal of impairment). EBIT is used
as a measure of operational profitability excluding the effects of how the operations
were financed, taxed and excluding foreign exchange gains & losses.
EBIT adjusted and Profit/(loss) for the period adjusted is defined as EBIT/Profit/
(loss) for the period adjusted excluding items in the result which are not regarded
as part of the underlying business. Example of such items are restructuring costs,
gain/loss on sale of vessels and other tangible assets, impairment, other gain/
loss and other income and expenses which are not primarily related to the period
in which they are recognized.
Capital employed (CE) is calculated based on the average of Total assets less Total
liabilities plus total interest-bearing debt for the last twelve months. CE is measured
in order to assess how much capital is needed for the operations/business to func-
tion and evaluate if the capital employed can be utilized more efficiently and/or if
operations should be discontinued.
Return on capital employed (ROCE) is based on last twelve months EBIT/EBIT
adjusted divided by capital employed. ROCE is used to measure the return on the
capital employed without taking into consideration the way the operations and
assets are financed during the period under review. The group considers this ratio
as appropriate to measure the return of the period.
214
Alternative performance measures (unaudited)
Reconciliation of alternative performance measures
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Wallenius Wilhelmsen – Annual Report 2023
Financial statements contents →
Total interest-bearing debt is calculated as the end of period sum of Non-current
interest-bearing loans and bonds, Non-current lease liabilities, Current inter-
est-bearing loans and bonds and Current lease liabilities. The group considers this
a good measure of total financial debt.
Net interest-bearing debt (NIBD) is calculated as the end of period Total inter-
est-bearing debt less the end of period Cash and cash equivalents. The group
considers this a good measure of underlying financial debt.
NIBD/EBITDA adjusted (leverage ratio) is calculated based on the end of period Net
interest-bearing debt divided by the rolling last twelve months of EBITDA adjusted.
The group considers this a good measure of leverage as it indicates how many
years of EBITDA adjusted, being a proxy for normal cash flow from operations, is
needed to cover the NIBD.
Total interest-bearing debt is calculated as the end of period sum of Non-current
interest-bearing loans and bonds, Non-current lease liabilities, Current inter-
est-bearing loans and bonds and Current lease liabilities. The group considers this
a good measure of total financial debt.
Net interest-bearing debt (NIBD) is calculated as the end of period Total inter-
est-bearing debt less the end of period Cash and cash equivalents. The group
considers this a good measure of underlying financial debt.
NIBD/EBITDA adjusted (leverage ratio) is calculated based on the end of period Net
interest-bearing debt divided by the rolling last twelve months of EBITDA adjusted.
The group considers this a good measure of leverage as it indicates how many
years of EBITDA adjusted, being a proxy for normal cash flow from operations, is
needed to cover the NIBD.
USD million Dec 31, 2023 Dec 31, 2022
Non-current interest-bearing loans and bonds 1,897 2,200
Non-current lease liabilities 1,097 1,254
Current interest-bearing loans and bonds 406 316
Current lease liabilities 313 317
Total interest-bearing debt 3,713 4,087
Less cash and cash equivalents 1,705 1,216
Net Interest-bearing debt 2,007 2,872
Net interest-bearing debt
215
Alternative performance measures (unaudited)
Reconciliation of alternative performance measures
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Wallenius Wilhelmsen – Annual Report 2023
Financial statements contents →
Reconciliation of Total revenue to EBITDA and EBITDA adjusted
USD million 2023 2022
Total revenue 5,149 5,045
Operating expenses (3,342) (3,497)
EBITDA 1,807 1,548
EBITDA shipping services 1,527 1,359
Loss on sale of vessel - 10
Anti-trust expense/ (reversal of expenses) - (6)
EBITDA adjusted shipping services 1,527 1,363
EBITDA logistics services 174 107
EBITDA adjusted logistics services 174 107
EBITDA government services 130 95
Gain on sale of vessel - (14)
EBITDA adjusted government services 130 81
EBITDA holding/eliminations (25) (14)
Loss on sale of vessel - (10)
EBITDA adjusted holding/eliminations (25) (23)
EBITDA adjusted 1,807 1,528
USD million 2023 2022
Net Interest-bearing debt 2,007 2,872
Last twelve months adjusted EBITDA 1,807 1,528
Net interest-bearing debt/adjusted EBITDA ratio 1.1x 1.9x
USD million Dec 31, 2023 Dec 31, 2022
Total equity 4,056 3,508
Total assets 8,642 8,394
Equity ratio 47% 42%
Net interest-bearing debt divided by last twelve months adjusted EBITDA
Equity ratio
216
Alternative performance measures (unaudited)
Reconciliation of alternative performance measures
Main contents →
Wallenius Wilhelmsen – Annual Report 2023
Financial statements contents →
Reconciliation of total assets to capital employed and ROCE
calculation
Reconciliation of Total revenue to EBIT and EBIT adjusted
USD million Notes 2023 2022
EBITDA 1,807 1,548
Other gain/(loss) 5 (6) (47)
Depreciation and amortization 8,9,10 (577) (541)
(Impairment)/reversal of impairment 11 (5) (29)
EBIT 1,218 931
Anti-trust expense/ (reversal of expenses) - (6)
Gain on sale of vessel - (14)
Change in fair value of derivative financial asset 6 47
Impairment goodwill and intangible assets 5 29
Total adjustments 11 55
EBIT adjusted 1,229 986
Profit/(loss) for the period 967 794
Total adjustments 11 55
Profit/(loss) for the period adjusted 978 850
Last twelve months average
USD million 2023 2022
Total assets 8,534 8,116
Less Total liabilities 4,817 5,008
Total equity 3,717 3,108
Total interest-bearing debt 3,850 4,081
Capital employed 7,567 7,189
EBIT last twelve months 1,218 931
EBIT last twelve months adjusted 1,229 986
ROCE 16.1% 12.9%
ROCE adjusted 16.2% 13.7%
Sustainability
statements
Through our sustainability reporting, we communicate our perfor-
mance and impacts on a wide range of sustainability topics such as
planet, people, principles of governance and prosperity parameters.
The sustainability statements specifically provide overviews of our
sustainability performance data and GRI, SASB indices, TCFD indices
and EU Taxonomy reporting.
Contents →
218Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
Sustainability Performance Data
Contents →
Sustainability Performance Data
KPI & Description 2023 2022 2021 2020 2019
Planet
GHG emissions
CO
2
e intensity from Shipping services, gCO
2
e / tonne km (EEOI) 27.69 30.38 33.50 33.51 33.33
Total Scope 1 emissions, tonne CO
2
e 4,125,161 4,546,703 4,591,612 3,772,582 4,695,394
Shipping 4,095,675 4,518,404 4,585,392 3,764,260 4,687,389
Logistics 29,486 28,299
1
7,654 8,322 8,005
Total Scope 2 emissions, tonne CO
2
e 13,004 4,241 5,879 6,166 6,611
Offices
2
1) Location based
2) Market based
2,091
2,709
-
-
-
-
-
-
-
-
Logistics
1) Location based
2) Market based
3,989
4,216
-
4,241
-
5,879
-
6,166
-
6,611
Total Scope 3 emissions, tonne CO
2
e
3
1,511,595 1,577,525 1,536,772 1,484,404 -
Purchased goods and services 483,815 472,600 437,909 335,803 -
Capital goods 1,511 2,400 140,099 126,571 -
Fuel and energy-related activites 938,246 1,029,174 854,757 933,790 -
Upstream transportation and distribution 49,048 46,948 84,700 67,760 -
Waste generated in operations 3,685 3,142 3,387 3,615 -
Business travel 24,295 13,589 5,239 6,549 -
Employee commuting 10,996 9,672 10,682 10,317 -
Energy use
Total electrical consumption, Offices, in megawatt hours 6,673
4
- - - -
Total electrical consumption, Logistics services, in megawatt hours 13,545 13,854 14,023 15,209 16,094
Total energy consumed in terajoule (TJ), Shipping services 54,386 59,385
5
59,976
5
48,911 -
Percentage heavy fuel oil, Shipping services
6
35% 19,1% 18% 11% -
Percentage renewable, Shipping services 0.3% - - - -
Air Quality
Average sulphur content of fuel, Shipping services, percentage N/A
7
0.39 0.37 0.38 2.06
Total SO
X
emissions of fleet under group control, in tonnes 10,167 11,084 10,645 8,945 60,989
Relative NO
X
emissions from owned fleet (as an average of
International Air Pollution Prevention certification values) 13.52 13.47 13.57 13.63 13.64
1 The increase in Logisitc’s scope 1 CO
2
e emissions from 2021 to 2022 is due to the inclusion of emissions from our landbased trucking operations, Keen.
2 New in 2023. Offices not covered in site reporting
3 The following categories are not relevant for our organization and therefore not included (upstream leased assets, downstream transportation and distribution,
processing of sold products, use of sold products, end-of-life treatment of sold products, downstream leased assets, franchises, investments)
4 New in 2023
5 2022 and 2021 was corrected. Editing error caused the ienergy consumption in those years to be shown in million TJ and not thousands TJ.
6 Up to 2022 is for WWO only
7 Not reported for 2023
219Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
Sustainability Performance Data
Contents →
KPI & Description 2023 2022 2021 2020 2019
Biodiversity
Total number of significant spills (> 20 litres), Shipping services - 1 1 - 1
Number of spills or discharges reported to authorities,
Logistics services 28 16 10 2 1
Percentage of owned fleet enrolled in hull fouling management programme 91 100 100 100 100
Percentage of owned fleet complying with ballast water exchange; and 4 17 24
8
52 -
Percentage of owned fleet with ballast water treatment system installed 96 83 76 48 -
Waste management
Total waste landed to shore reception facilities (owned fleet) in cbm's 7,908 7,177 7,368 6,532 4,931
Average amount of waste landed to shore reception per vessel
(owned fleet) in cbm's 85.0 86.5 85.7 82.0 64.8
Food waste discharged to sea, in cbm's 539 529 469 472 388
Average amount of food waste discharged to sea, per vessel, in cbm's 6.00 6.37 4.50 5,5 5,1
Waste sent to landfills, generated from Logistics services, in tonnes 5,307 4,385 4,856 4,538 5,843
Water consumption
Water consumption in areas with high or extremely high water stress,
in mega liters 13.1
9
19.0 - - -
People
Diversity, Equity and Inclusion
Total number of employees, without consultants/contractors 8,527 7,456
10
7,509 8,665 9,397
-EMEA 1,634 1,635 1,732 1,815 2,044
-America 6,076 5,043 4,774 5,934 5,948
-Asia 547 530 753 - -
-Oceania 270 248 250 - -
-External Consultants or contractors 900 1,419 771 - -
Gender balance, all employees, M:F 72:26 75:25 75:25 - -
Gender balance, office workers, M:F 56:42
11
58:42 61:39 59:41 60:40
Gender balance, production workers, M:F 79:19
11
82:18 81:19 - -
Gender balance of office workers in senior roles, M:F 77:23 78:22 79:21 81:19 -
Number of female ofice workers in senior roles 64 59 54 50 -
Age of employees, breakdown per employee cateogry
12
Number of Expatriates- age distribution
a) 30 or under
b 31-50
c) 51+
1
24
5
-
-
-
-
-
-
-
-
-
-
-
-
Number of fixed term employees, age distribution
a) 30 or under
b 31-50
c) 51+
35
11
5
-
-
-
-
-
-
-
-
-
-
-
-
8 This data has been corrected compared to 2021 performance presented in annual raport 2021
9 Incomplete site level reporting of water consumption in high water stress areas
10 Not including consultants
11 The remaining percentage of employees have either not declared their gender or there is missing data
12 We started reporting on age distribution per employee cateogry in 2023
220Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
Sustainability Performance Data
Contents →
KPI & Description 2023 2022 2021 2020 2019
Number of regular employees- age distribution
a) 30 or under
b 31-50
c) 51+
2198
4238
1990
-
-
-
-
-
-
-
-
-
-
-
-
Number of Trainees- age distribution
a) 30 or under
b 31-50
c) 51+
16
2
0
-
-
-
-
-
-
-
-
-
-
-
-
Senior Management Earnings ratio, percentage Women:Men
(office based)
Sweden
a) senior management
b) other employees
118%
87%
101%
-
-
101%
-
-
-
-
-
-
-
-
Norway
a) senior management
b) other employees
98%
89%
93%
-
-
98%
-
-
-
-
-
-
-
-
Korea
a) senior management
b) other employees
92%
77%
95%
-
-
80%
-
-
-
-
-
-
-
-
USA
a) senior management
b) other employees
91%
80%
95%
-
-
87%
-
-
-
-
-
-
-
-
Overall score from employee engagement survey 7.6 7.4 - - -
Diversity score from employee engagement survey, (score 1-8) 8.1 8.0 7.9 7,6 -
Health, Safety & Wellbeing
Work related fatalities - - 1.00 - 1.00
Number of marine casualties, percentage classified as very serious - - - - -
Lost Time Incident Frequency, Shipping services 0.56 0.38 0.88 0.99 0.73
Lost Time Incident Frequency, Logistics services 14.33 15.97 15.15 13.99 15.79
Port state controls
Number of port state control detentions 3.00 - - - -
Average number of deficiencies per vessel inspection, Shipping
13
1.01 0.78 0.73 1.00 -
Number of road accidents and incidents, road transport 25 3 6 3 -
Safety Measurement System BASIC percentiles for
1) unsafe driving 5 3 2 0 -
2) hours of service compliance 24 22 0 0 -
3) Driver fitness 0 0
14
0
14
0 -
4) Controlled substances/alcohol 0 0 0 0 -
5) vehicle maintenance 10 23 25 24 -
6) Hazardous Materials Compliance; road transport 0 0 0 0 -
Annual retention rate of Shipping crew
15
0.94 0.99 0.97 0.97 0.95
Absenteeism, Logistics services (days away due to illness per hours
worked) 3.28% 2.52% 2.35% 2.55% 3.00%
13 Target is <1
14 6=0: updated 6 from n/a to 0 in 2021 and 2022
15 Several new vessels added to the fleet in 2023
221Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
Sustainability Performance Data
Contents →
KPI & Description 2023 2022 2021 2020 2019
Training & development
Office workers invited to take a performance dialogue 100% 100% 100% 100% 100%
Average training hours for all employee cateogry ( hours) 28,8 - - - -
Average training hours per employee (hours)
(senior / general managers and above) 48,6 - - - -
Human and Labor rights
Number and % of retired vessels recycled according to responsible
recycling policy 0; 0% 0; 0% 2
16
; 100% 2; 100% -
Principles of governance
Ethical business conduct
Number of cases which group companies were found in breach of
international sanction laws and regulations - - - - -
Number of legal actions pending or completed during the reporting
period regarding anti-competitive behavior and violations of anti-trust
and monopoly legislation in which the organization has been identified
as a participant. 3 3 - - -
Number of calls at ports in countries that have the 20 lowest rankings
in Transparency International Corruption Perception Index 10 12 23 11 -
Total amount of monetary losses as a result of legal proceedings
associated with bribery or corruption -
17
- - - -
Total
1)number
2)percentage of operations assessed for risks related to corruption
3
67% - - - -
Governance body members and employees the organization's anti-
corruption policies and procedures have been communicated to 78% 100% 80% - -
% of
1)board members
2)Top executive team members that have received training
on anti-corruption
0
100
-
-
-
-
-
-
-
-
Incidents of corruption confirmed during the current year, related to this
year - - - - -
Incidents of corruption confirmed during the current year, but related to
previous years - - - - -
Total number of cases reported to AlertLine 32 85 21 - -
- HR related cases 18 39 12 - -
- Safety-related cases 5 3 3 - -
- Performance and or compensation related cases 2 23 5 - -
- Compliance related cases 7 12 1 - -
- Human rights and labor-related cases - - - - -
Security
Cyber security, % up-time of essential systems
18
99.9 99.9 - - -
Cyber security, Number of days where expected uptime of essential
systems is met or exceeded
18
364 354 - - -
16 Number of recycled vessels updated from 1 to 2
17 We are not aware of any fines, significant or otherwise related to corruption
18 New metric for 2022
222Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
Sustainability Performance Data
Contents →
KPI & Description 2023 2022 2021 2020 2019
Number of incidents of security breaches or theft, Logistics services 46 12 3 - 1
Number of security breaches on board company owned vessels 3 5 6 2 3
Number of substantiated breaches of customer privacy and data security - - - - -
Number of substantiated breaches of empoloyee privacy and data security - - - - 4.00
Prosperity
Quality
Customer Satisfaction
19
Q2 3.8 4 - - -
Q4 4 3.8 - - -
Tax practices
Number of tax incentives or special tax agreements with authorities 1 1 1 1 1
19 New disclosure for 2022, no data for previous years. The survey is completed two times a year, in Q2 and Q4
223Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
EU Taxonomy reporting
Contents →
EU Taxonomy reporting
The EU Taxonomy Regulation provides a classification system that translates the
EU’s sustainability goals into common criteria for environmentally sustainable
economic activities. The purpose of the regulation is to:
1. reorient capital flows towards sustainable investments,
2. systematically integrate sustainability into risk management, and
3. promote transparency in economic and financial operations by defining
sustainable activities through a “common language”.
Wallenius Wilhelmsen reports in line with the regulation as a non-financial company.
This requires disclosures of revenue (turnover), capital expenditure (CapEx) and
operating expenses (OpEx) that are associated with taxonomy-eligible and taxon-
omy-aligned economic activities
1
.
Identifying environmentally sustainable economic activities
The group’s activities are linked to the boundaries of the reporting entity as defined
by IFRS and described in the group financial statements. In 2023, we identified three
economic activities specified in the taxonomy that has relevance to our ocean-
based and land-based business.
When determining whether an economic activity was relevant to our reporting,
we firstly assessed the descriptions of the activities defined under the transport
sector
2
. We then assessed whether the activity was relevant for one or several of
the substantial contribution criteria contributing to climate change mitigation.
Sea and coastal freight water transport, vessels for port operations and auxiliary
activities (CCM 6.10): This activity includes purchasing, financing, chartering and
operation of vessels used for transport of freight.
Most of our economic activities are under shipping and government services, as
all core and most auxiliary activities in the segments are related to international
ocean movement of RoRo cargo. All our ships are eligible assets under CCM 6.10.
Four new methanol-capable and ammonia ready ships have been ordered and is
estimated to be ready for operation in late 2026. These new ships will meet the tech-
nical screening criteria that specifies a limit on average greenhouse gas intensity
of the energy used on-board shall not exceed 76.4 g CO
2
e/MJ. All CapEx that has
been made towards these new ships are thus aligned expenditures.
Freight transport services by road (CCM 6.6): This activity comprises heavy-duty
vehicles in the categories N1, N2 and N3
3
. These vehicles are trucks that can have
certain amount of permissible maximum laden.
Vehicles in our logistics operations include on-and off-loading of cargo from vessels
to the terminal, transferring cargo from ports to processing centers and to the end
customer. Across the world, we have 182 trucks that transport cargo. These are
eligible assets in CCM 6.6. For the vehicles to meet the technical screening crite-
ria, they must have zero direct CO
2
emissions. In 2023, we invested in four new
electrical trucks that meet the technical screening criteria and are considered as
taxonomy-aligned CapEx.
1 In accordance with regulation EU (2020/852) and the supplementing delegated acts.
2 As outlined in regulation EU (2020/852) and the supplementing delegated acts
3 As referred to in Article 4(1), point (b)(iii), of Regulation (EU) 2018/858
224Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
EU Taxonomy reporting
Contents →
Infrastructure enabling low-carbon road transport and public transport (CCM 6.15):
This activity includes construction, modernization, maintenance, and operation
of infrastructure that enables zero emission road transport and transshipment
activities.
We have infrastructure that is dedicated to the operation of vehicles with zero
emissions which are considered eligible in accordance with CCM 6.15. The techni-
cal screening criteria related to public transport are not relevant for our business
as we do not operate passenger transport. We also have several electric charging
points on our terminals, but these are considered non-eligible as the vehicles using
these points are not used for road transport.
In 2023, we invested in two electric charging points for trucks that are required for
zero-emission road transport. This CapEx is considered taxonomy-aligned.
Compliance with Do No Significant Harm (DNSH) criteria
In addition to making a substantial contribution to climate change mitigation by
meeting the technical screening criteria, the eligible activities must also comply
with the criteria of not causing significant harm to any of the other environmental
objectives.
Our sea and coastal freight transport services meet the DNSH criteria for all envi-
ronmental objectives by complying with relevant EU and IMO regulations and are
not dedicated to the transportation of fossil fuels.
Our freight transport services by road activities meet the DNSH criteria for all envi-
ronmental objectives as long as they have performed a climate risk and vulnera-
bility assessment, meet the criteria for reusable or recyclable parts and use tires
which comply with external noise requirements.
Our infrastructure enabling low carbon activities meet the DNSH criteria for all
environmental objectives by complying with relevant EU and IMO regulations and
are not dedicated to the transportation or storage of fossil fuels.
Compliance with minimum safeguards
Our activities are carried out in compliance with the minimum safeguards. Please
refer to the Code of Conduct, GRI Index and the following sections for further infor-
mation:
•
Human rights, including labor rights: Our approach to human rights
and labor rights are described in the People chapter. Our due diligence
process is guided by the OECD Guidelines for Multinational Enterprises
and the UN Guiding Principles on Business and Human Rights. Wallenius
Wilhelmsen has not been held liable or found to be in breach of labor law
or human rights in 2023 and we are committed to engaging with relevant
stakeholders including OECD’s National Contact Point and the Business
and Human Rights Resource Centre should we be requested to do so.
•
Bribery and corruption: Wallenius Wilhelmsen has developed and adopted
a compliance program covering the prevention and detection of corrup-
tion and bribery. Anti-corruption policies and procedures have been
communicated to executive management and other relevant employ-
ees. None of the members of our senior management were convicted of
corruption or bribery in 2023. Please refer to the section on risk manage-
ment and internal control in our Principles of Governance chapter.
225Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
EU Taxonomy reporting
Contents →
•
Taxation: For information on taxes, please refer to our section on tax prac-
tices in the Prosperity chapter and note 7 in the financial statements.
Wallenius Wilhelmsen treats tax governance and compliance as important
elements of oversight and applies adequate tax risk management strat-
egies and processes (as outlined in OECD MNE Guidelines covering tax).
The company was not found in violation of tax laws in 2023.
•
Fair competition: Wallenius Wilhelmsen is committed to fair competition
and to complying with all applicable anti-trust and competition laws. This
is anchored in our Code of Conduct and training is provided for senior and
other relevant employees. None of the members of our senior manage-
ment were found in breach of competition laws in 2023. For information on
our fair competition and anti-trust practices, please refer to the Principles
of Governance chapter.
The table below shows the total Revenue, OpEx and CapEx for the Wallenius Wilhelm-
sen group, and the estimated proportion of economic activities which is consid-
ered aligned, non-aligned, eligible, and non-eligible as defined in the regulation.
In combination, the indicators below are intended by the taxonomy to express the
group’s activities that qualify as environmentally sustainable.
Measuring performance
Revenue (turnover): Revenue represents the group’s total revenue from contracts
with customers as described in our accounting policies. Revenue from eligible activ-
ities includes revenues earned in the shipping services and government services
segment as well as inland transportation within the logistics services segment.
Capital expenditure (CapEx): CapEx comprises additions to vessels and other tangi-
ble assets, additions to right-of-use assets (leases) and purchase or development
of intangible assets, all as described in our accounting policies. CapEx related to
eligible economic activities includes both investment in new and existing facilities
and equipment.
Operating expenditure (OpEx): OpEx comprises a subset of “Operating expenses” in
the group’s income statement and represents the group’s total expenses that are
not capitalized that relate to maintenance and repair, any other direct expenditures
relating to the day-to-day servicing of assets of property, plant and equipment.
Eligible OpEx relates to the assets and processes associated with taxonomy-eligi-
ble economic activities.
226Wallenius Wilhelmsen – Annual Report 2023
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EU Taxonomy reporting
Contents →
Proportion of Turnover from products or services associated with
taxonomy-aligned economic activities – disclosures covering year 2023
Financial Year N 2023 Substantial Contribution Criteria
"DNSH Criteria
('Does Not Significant Harm') (h)"
Economic activities (1)
Code (2)
Turnover (3)
Proportion of Turnover, year N (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water and marine resources (7)
Circular economy (8)
Pollution (9)
Biodiversity and ecosystems (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water and marine resources (13)
Circular economy (14)
Pollution (15)
Biodiversity and ecosystems (16)
Minimum safeguards (17)
Proportion of Taxonomy aligned (A.1.) or
eligible (A.2.) turnover, year N-1 (18)
Category (enabling activity or) (19)
Category (transitional activity) (20)
USDm %
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
% E T
A. Taxonomy eligible activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Freight transport services by road CCM 6.6 0 0% N
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
- Y N/A Y Y N/A Y 0% - T
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities
CCM 6.10 0 0% N
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
- Y Y Y Y Y Y 0% - T
Infrastructure enabling low carbon road trans-
port and public transport
CCM 6.15 0 0% N
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
- Y Y Y Y Y Y 0% E -
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
0 0% 0% 0% 0% 0% 0% 0% 0%
Of which Enabling 0% 0% 0% 0% 0% 0% 0% 0% E
Of which Transitional 0% 0% 0% T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
Freight transport services by road CCM 6.6 196 4% EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
4%
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities
CCM 6.10 4,121 80% EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
84%
Infrastructure enabling low carbon road trans-
port and public transport
CCM 6.15 0 0% EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
0%
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
4,318 84% 84% 0% 0% T 0% 0% 88%
Turnover of Taxonomy eligible acitvities (A.1 + A.2) 84% 84% 0% 0% 0% 0% 0% 88%
B. Taxonomy-non-eligible activities
Turnover of Taxonomy-non-eligible activities (B) 831 16%
TOTAL (A+B) 5,149 100%
227Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
EU Taxonomy reporting
Contents →
Proportion of CapEx from products or services associated with
taxonomy-aligned economic activities – disclosure covering year 2023
Financial Year N 2023 Substantial Contribution Criteria
"DNSH Criteria
('Does Not Significant Harm') (h)"
Economic activities (1)
Code (2)
CapEx (3)
Proportion of CapEx, year N (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water and marine resources (7)
Circular economy (8)
Pollution (9)
Biodiversity and ecosystems (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water and marine resources (13)
Circular economy (14)
Pollution (15)
Biodiversity and ecosystems (16)
Minimum safeguards (17)
Proportion of Taxonomy aligned (A.1.) or
eligible (A.2.) CapEx, year N-1 (18)
Category (enabling activity or) (19)
Category (transitional activity) (20)
USDm %
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
% E T
A. Taxonomy eligible activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Freight transport services by road CCM 6.6 2 1% Y
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
- Y N/A Y Y N/A Y 0% - T
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities
CCM 6.10 42 30% Y
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
- Y Y Y Y Y Y 0% - T
Infrastructure enabling low carbon road trans-
port and public transport
CCM 6.15 0 0.1 % Y
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
- Y Y Y Y Y Y 0% E -
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
44 31%
100%
0% 0% 0% 0% 0% 0%
Of which Enabling 0% 0% 0% 0% 0% 0% 0% 0% E
Of which Transitional 45%
100%
0% T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
Freight transport services by road CCM 6.6 2 1% EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
6%
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities
CCM 6.10 96 51% EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
70%
Infrastructure enabling low carbon road trans-
port and public transport
CCM 6.15 0 0% EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
0%
CapEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
98 69% 84% 0% 0% 0% 0% 0% 77%
CapEx of Taxonomy eligible acitvities (A.1 + A.2) 142 76% 84% 0% 0% 0% 0% 0% 77%
B. Taxonomy-non-eligible activities
CapEx of Taxonomy-non-eligible activities (B) 46 24%
TOTAL (A+B) 188 100%
228Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
EU Taxonomy reporting
Contents →
Proportion of OpEx from products or services associated with
taxonomy-aligned economic activities – disclosure covering year 2023
Financial Year N 2023 Substantial Contribution Criteria
"DNSH Criteria
('Does Not Significant Harm') (h)"
Economic activities (1)
Code (2)
OpEx (3)
Proportion of OpEx, year N (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water and marine resources (7)
Circular economy (8)
Pollution (9)
Biodiversity and ecosystems (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water and marine resources (13)
Circular economy (14)
Pollution (15)
Biodiversity and ecosystems (16)
Minimum safeguards (17)
Proportion of Taxonomy aligned (A.1.)
or eligible (A.2.) turnover, year N-1 (18)
Category (enabling activity or) (19)
Category (transitional activity) (20)
USDm %
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y; N; N/EL (b) (c)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
% E T
A. Taxonomy eligible activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Freight transport services by road CCM 6.6 0 0% N
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
- Y N/A Y Y N/A Y 0% - T
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities
CCM 6.10 0 0% N
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
- Y Y Y Y Y Y 0% - T
Infrastructure enabling low carbon road trans-
port and public transport
CCM 6.15 0 0% N
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
- Y Y Y Y Y Y 0% E -
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
0 0% 0% 0% 0% 0% 0% 0% 0%
Of which Enabling 0% 0% 0% 0% 0% 0% 0% 0% E
Of which Transitional 0% 0% 0% T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
EL; N/EL (f)
Freight transport services by road CCM 6.6 0 0% EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
0%
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities
CCM 6.10 49 100% EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
100%
Infrastructure enabling low carbon road trans-
port and public transport
CCM 6.15 0 0% EL
N/
EL
N/
EL
N/
EL
N/
EL
N/
EL
0%
OpEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
49 100% 84% 0% 0% 0% 0% 0% 100%
OpEx of Taxonomy eligible acitvities (A.1 + A.2) 49 100% 84% 0% 0% 0% 0% 0% 100%
B. Taxonomy-non-eligible activities
OpEx of Taxonomy-non-eligible activities (B) 0 0%
TOTAL (A+B) 49 100%
229Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
EU Taxonomy reporting
Contents →
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
Yes
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity
or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety
upgrades, using best available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat,
including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety
upgrades.
No
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity
using fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power
generation facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
No
Explanation
We are participants in the Green Shipping Program, piloting an exploration of nuclear power utilization for ship propulsion. We believe this
qualifies as a ‘Yes.’ Additionally, we are in dialogue with a project called NUPROSHIP (Nuclear Propulsion Ship), sponsored by the Norwegian
Research Council, which also evaluates nuclear technology for commercial ships.
Taxonomy Statement related to nuclear and gas
230Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI Index
Global Reporting Initiative (GRI) is a independent international standards organi-
zation which has developed the world’s most widely used framework for sustain-
ability reporting. The GRI guidelines consist of reporting principles, aspects and
indicators that organizations can use to disclose information related to economic,
environmental and social performance.
Wallenius Wilhelmsen ASA has reported in accordance with the GRI Standards for
the period 01.01.2023 - 31.12.2023.
The table below shows Wallenius Wilhelmsen reporting relative to the GRI Stan-
dards guidelines
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
General disclosures
GRI 2:
Genereal
Discussions
2-1 Organiza-
tional details
Wallenius Wilhelmsen ASA
Principles of governance (p. 94-111)
Strandveien 20, 1366 Lysaker, Norway
Wallenius Wilhelmsen at a glance (p. 5-18)
A gray cell indicates that reasons for omission are not permit-
ted for the disclosure or that a GRI Sector Standard reference
number is not available.
2-2 Entities
included in the
organization’s
sustainability
reporting
Wallenius Wilhelmsen at a glance (p. 5-18)
Principles of governance (p. 94-111)
About the report (p. 2)
2-3 Reporting
period, frequency
and contact point
Period: 01 Jan 2023- 31 December 2023
Frequency: Quarterly for financial and sustainability reporting.
Date of publication of annual report: March 15, 2024
Contact point: Anette.Ronnov@walwil.com, Chief Sustainability Officer
2-4 Restate-
ments of infor-
mation
As notes throughout the report.
0 material restatements in this year`s report.
2-5 External
assurance
No, consistency check by financial auditor only.
2-6 Activities,
value chain and
other business
relationships
Throughout prosperity chapter (p.78-92)
Wallenius Wilhelmsen at a glance (p. 5-18)
2-7 Employees Sustainability performance data (p. 219-220)
People (p. 43-58)
We report the total number of employees including a breakdown of
region. A breakdown for gender is provided for the following employ-
ment categories:
- all employees
- office workers
- production workers
- office workers in senior roles
The data has been collected using headcount.
The data is collected at the end of the reporting period, on December
31st 2023.
b) Current
reporting does
not reflect GRI
employee cate-
gories.
Information
unavailable/
incomplete
We are in the
process of updat-
ing our HR data
system.
2-8 Workers who
are not employ-
ees
Sustainability performance data (p. 219-221)
The data is collected in head count and at the end of the reporting
period, on December 31st 2023.
231Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
GRI 2:
Genereal
Discussions
2-9 Governance
structure and
composition
Wallenius Wilhelmsen at a glance (p. 15-19)
Principles of governance (p. 94-111)
2-10 Nomina-
tion and selection
of the highest
governance body
Principles of governance, Nominations Committee (p. 102)
2-11 Chair of the
highest gover-
nance body
Board of directors (p. 16)
Chair of the board, independent
2-12 Role of the
highest gover-
nance body in
overseeing the
management of
impacts
Principles of governance:
Board responsibility and work (p. 104-106)
The Chief Sustainability Officer (CSO) is responsible for sustainability
on a group level.
2-13 Delegation
of responsibil-
ity for managing
impacts
Principles of governance;
Board responsibility and work (p. 104-106)
2-14 Role of the
highest gover-
nance body in
sustainability
reporting
The Board reviews and approves the annual report, including the
sustainability sections.
Board responsibility and work (p. 104-106)
2-15 Conflicts of
interest
Principles of governance;
Nomination Committee (p. 102)
Board of directors, composition and independence (p. 103)
Board responsibility and work (p. 104-106)
2-16 Communi-
cation of critical
concerns
Board responsibility and work (p. 104-106)
Chief ethics and compliance officer has a direct reporting line to the
Board.
We have a procedure of reporting and managing concerns, cover-
ing how to report critical concerns within the company and how we
address those concerns.
b) We do not
report the total
number and
nature of crit-
ical concerns
communicated
to the highest
governance body
during the report-
ing period. The
highest gover-
nance body are
informed about
all critical cases
reported.
Information
unavailable/
incomplete
2-17 Collective
knowledge of the
highest gover-
nance body
All board members were invited to complete our Sustainability training,
which is mandatory for all employees.
2-18 Evaluation
of the perfor-
mance of the
highest gover-
nance body
Principles of governance;
General Meeting (p. 101)
Fully Omitted.
Wallenius
Wilhelmsen
currently does not
have a process
to assess this,
however we will
be releasing an
updated Gover-
nance Framework
in 2024.
Information
unavailable/
incomplete
2-19 Remunera-
tion policies
Principles of governance;
Remuneration of the board of directors (p. 106)
Salary and other remuneration for executive personnel (p. 109)
Financial Statements (note 4, p. 139-141)
See further information on our executive renumeration report;
https://www.walleniuswilhelmsen.com/storage/images/walle-
nius-wilhelmsen-remuneration-report-2022.pdf
a, b) Renumer-
ation policies
for the highest
governance body
is not reported in
accordance with
GRI.
Information
unavailable/
incomplete
232Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
GRI 2:
Genereal
Discussions
2-20 Process to
determine remu-
neration
Principles of governance;
Remuneration of the board of directors (p. 106)
Salary and other remuneration for executive personnel (p. 109)
People; Human and labour rights (p. 49-52)
Nomination Commitee; Articles of Association ( https://www.walle-
niuswilhelmsen.com/who-we-are/governance )
2-21 Annual total
compensation
ratio
Fully omitted. Information
unavailable/
incomplete
We currently only
track compen-
sation ratio for
women compared
to men.
2-22 Statement
on sustainable
development
strategy
Words from CEO (p. 19-21)
2-23 Policy
commitments
People; Human and labor rights (p. 49-52)
Principles of governance;
Governance in partly owned companies (p. 106)
Relevant policies are available on our webpage, under commitment
and policies. https://www.walleniuswilhelmsen.com/who-we-are/
sustainability
All policies are approved by group executive management. board
of directors approve key policies. Policies are communicated in
on-boarding, trainings, and on the intranet. IT enabled employees are
required to sign the code of conduct.
2-24 Embedding
policy commit-
ments
Refer to the descriptions in specific policies for responsible business
which are available on our homepage.
https://www.walleniuswilhelmsen.com/who-we-are/sustainability
People, Training and development (p. 57-58)
2-25 Processes
to remediate
negative impacts
We send out an employee engagement survey ( #engage), which
informs our grievance mechanism structure and processes.
Stakeholders may raise concerns regarding our human rights impacts
by using the Wallenius Wilhelmsen Alert Line.
Details can be found at www.walleniuswilhelmsen.com/who-we-are/
governance
If Wallenius Wilhelmsen through its actions directly cause or contrib-
ute to harmful human rights impacts, the company will promote
access to and/or provide fair remediation. This policy is commu-
nicated throughout the company and is available publicly on our
website. It will be reviewed on a regular basis to ensure continued rele-
vance and drive continous improvement.
For further information see sectionWhy is it important on People,
Planet, Prosperity and Principles of governance chapters.
2-26 Mecha-
nisms for seeking
advice and rais-
ing concerns
People; Human and labor rights (p. 49-52)
We have an open AlertLine which is a confidential service that you can
access from any location. Reports may be made on either an anon-
ymous or named basis. This website is hosted by an independent
third party. You can access it and read more abour our AlertLine on
our webpage at: https://www.walleniuswilhelmsen.com/who-we-are/
governance
Employees can seek advice on implementing organizations policies
and practices in the code of conduct.
https://www.walleniuswilhelmsen.com/storage/images/ww-CoC-re-
port-230323-v3-1.pdf
233Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
GRI 2:
Genereal
Discussions
2-27 Compliance
with laws and
regulations
Principles of governance (p. 94-111)
Key risk exposure (p. 38)
Sustainability performance data, incidents of corruption (p. 221)
To our knowledge there are no significant instances of non-compli-
ance with laws and regulations during the reporting period.
We have established a compliance committee, where cases are
considered significant (CFO, CFO, Chief People Officer, General Coun-
sel and Chiefs Ethics and Compliance Officer). Significant risks are
determined in accordance with procedure for reporting and managing
concerns.
2-28 Member-
ship associations
The Ocean Exchange, Norwegian Shipping Association, World Ship-
ping Council, Maritime Anti Corruption Network (MACN), National Asso-
ciation of Waterfront Employers, Norwegian Shipowners’ Association,
Norwegian Sea Law Association, The Association of European Vehicle
Logistics (ECG), American Association of Port Authorities, National
Freight Transportation Association.Maersk Mc-Kinnet Møller Center
for Zero Carbon Shipping, Green Shipping Program and Maritime
CleanTech.
2-29 Approach
to stakeholder
engagement
We carry out regular stakeholder engagement through multiple
means including sector specific initiatives and working groups. In
2023, we engaged with customers on sustainability topics through
Drive Sustainability, as well as one-on-one engagements with targeted
customers and investors on sustainability topics such as climate and
vessel recycling.
Stakeholder engagement carried out through Double Materiality
Assessment (DMA), investor meetings, industry associations, etc.
Sustainability performance data; #Engage (p. 220)
2-30 Collec-
tive bargaining
agreements
Pension obligations (p. 162)
Note 15, Employee retirement plans (p. 161-162)
a, b) We do
not report the
percentage of
total employees
covered by collec-
tive bargaining
agreement.
Information
unavailable/
incomplete
We are exploring
the feasibility of
collecting this
data through
our new HR data
system.
Material topics
GRI 3: Material
Topics 202
3-1 Process to
determine mate-
rial topics
Principles of governance (p. 94-98)
A gray cell indicates that reasons for omission are not permit-
ted for the disclosure or that a GRI Sector Standard reference
number is not available.
3-2 List of mate-
rial topics
Principles of governance (p. 96-98)
1. Green House Gas (GHG) emissions and climate risk
2. biodiversity
3. air quality and waste management
4. health, safety & well-being
5. human and labor rights
6. diversity, equity, inclusion
7. training & development
8. innovation
9. quality of service
10. sustainable consumption
11. sustainable supply chain management
12. tax practices
13. ethical business conduct
14. security, privacy and data
15. sustainable finance
16. emergency preparedness
There have been no changes to the list of material topics compared to
the previous reporting period.
234Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
Anti-corruption
GRI 3: Material
Topics 2021
3-3 Management
of material topics
Principles of governance (p. 94-111)
Our policies, including code of conduct are available on our website,
under sustainability and the governance section.
https://www.walleniuswilhelmsen.com/who-we-are/sustainability
https://www.walleniuswilhelmsen.com/who-we-are/governance
GRI 205:
Anti-corruption
2016
205-1 Opera-
tions assessed
for risks related to
corruption
Principles of governance (p. 94-111)
Sustainability performance data (p. 221)
Significant risks related to corruption identified through risk assess-
ment;
- Risk of bribery and corruption to / from customers and suppliers
- Risk of bribery and corruption via use of agents / intermediaries
- Joint ventures partner / Joint ventures employees commits corrup-
tion or bribery
- Employees do not report concerns of violations of the Wallenius
Wilhelmsen Code of Conduct
205-2 Commu-
nication and
training about
anti-corruption
policies and
procedures
Sustainability performance data (p. 221)
The Code of Conduct provides a framework for what Wallenius
Wilhelmsen considers responsible and acceptable business conduct.
https://www.walleniuswilhelmsen.com/storage/images/ww-CoC-re-
port-230323-v3-1.pdf
The Code of Conduct is applicable to all Board members, employees
(permanent and temporary), contractors and consultants of Wallenius
Wilhelmsen, its subsidiaries and partly owned or controlled entities of
Wallenius Wilhelmsen. All employees, senior management and Board
are required to complete Code of Conduct Training. Suppliers, subcon-
tractors, agents and other business partners of Wallenius Wilhelmsen,
(including companies in which Wallenius Wilhelmsen has a minority
stake, acting on behalf of the company), are expected to adhere to
standards which are consistent with Wallenius Wilhelmsen’s Code of
Conduct. The Group will promote and strive for such adherence.
a-e) We do not
report a break-
down by region
for communica-
tion and training
of anti-corrup-
tion policies and
procedures.
c. We do not
report the total
number and
percentage of
business part-
ners that the
organization`s
anti-corruption
policies and
procedures have
been communi-
cated to, broken
down by type of
business partner
and region.
Information
unavailable/
incomplete
205-3 Confirmed
incidents of
corruption and
actions taken
Principles of governance (p. 94-111)
Zero confirmed incidents of corruption in 2023.
Zero legal cases regarding corruption brought against the organiza-
tion or its employees during the reporting period and the outcomes of
such cases.
Zero number og confirmed incidents whern contracts with business
partners were terminated or not renewed due to violations related to
corruption.
Anti-competitive behavior
GRI 3: Material
Topics 2021
3-3 Management
of material topics
Principles of governance (p. 94-111)
GRI 206:
Anti-compet-
itive Behavior
2016
206-1 Legal
actions for
anti-compet-
itive behavior,
anti-trust, and
monopoly prac-
tices
Sustainability performance data (p. 221)
3 class action processes. Settlements related to civil claims not
included here.
235Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
Tax
GRI 3: Material
Topics 2021
3-3 Management
of material topics
Prosperity (p. 90)
GRI 207: Tax
2019
207-1 Approach
to tax
Prosperity, section on Tax practices (p. 90) a) Our tax
approach is
described in the
prosperity chap-
ter; tax practices
(p. 90). We do
no not have a
publicly available
tax strategy meet-
ing all the GRI
reporting require-
ments. Corporate
tax affairs are the
CFO's responsi-
bility and extends
to all jurisdic-
tions where
the company
operates. The tax
position taken
in all significant
transactions is
supported by
obtaining an
external opinion.
Information
unavailable/
incomplete
207-2 Tax gover-
nance, control,
and risk manage-
ment
Prosperity, section on tax practices (p. 90) a-c) Our tax
approach is
described in the
prosperity chap-
ter; tax practices
(p. 90). We do
no not have a
publicly available
tax strategy meet-
ing all the GRI
reporting require-
ments. Corporate
tax affairs are the
CFO's responsi-
bility and extends
to all jurisdic-
tions where
the company
operates. The tax
position taken
in all significant
transactions is
supported by
obtaining an
external opinion.
Information
unavailable/
incomplete
236Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
GRI 207: Tax
2019
207-3 Stake-
holder engage-
ment and
management of
concerns related
to tax
a) Our tax
approach is
described in the
prosperity chap-
ter; tax practices
(p. 90). We do
no not have a
publicly available
tax strategy meet-
ing all the GRI
reporting require-
ments. Corporate
tax affairs are the
CFO's responsi-
bility and extends
to all jurisdic-
tions where
the company
operates. The tax
position taken
in all significant
transactions is
supported by
obtaining an
external opinion.
Information
unavailable/
incomplete
207-4 Coun-
try-by-country
reporting
Prosperity, section on tax practices (p. 90)
We report on tax payable 2023, in the Group`s most significnat coun-
tries.
a-c) While we
report on taxes
paid by countries,
we are not able
to provide all the
elements of this
disclosure.
Information
unavailable/
incomplete
Energy
GRI 3: Material
Topics 2021
3-3 Management
of material topics
Planet, Greenhouse gas emissions (GHG) and climate risk (p. 60-70)
GRI 302:
Energy 2016
302-1 Energy
consumption
within the organi-
zation
Sustainability performance data (p. 218)
302-3 Energy
intensity
Fully omitted. We
do not report on
the energy inten-
sity ratio for the
organization.
We report
CO
2
intensity
from Shipping
services. See the
Planet chapter;
Greenhouse
gas emissions
and climate risk
(p. 60-70) and
the sustainabil-
ity performance
data (p. 218).
Not applicable
302-4 Reduc-
tion of energy
consumption
Fully omitted. We
do not report data
on reductions in
energy consump-
tion. See Planet
chapter, Gree-
house gas emis-
sions and climate
risk for our jour-
ney to net zero (p.
60-70).
See sustaiabil-
ity performance
data regarding
energy use (p.
218).
Information
unavailable/
incomplete
237Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
GRI 302:
Energy 2016
302-5 Reduc-
tions in energy
requirements
of products and
services
Fully omitted. We
do not report data
on reductions in
energy consump-
tion. See Planet
chapter, Gree-
house gas emis-
sions and climate
risk for our jour-
ney to net zero (p.
60-70).
See sustaiabil-
ity performance
data regarding
energy use (p.
218).
Information
unavailable/
incomplete
Water and effluents
GRI 3: Material
Topics 2021
3-3 Management
of material topics
Planet, Water Consumption (p. 72)
GRI 303:
Water and
Effluents
2018
303-5 Water
consumption
Planet, Water Consumption (p. 72)
Biodiversity
GRI 3: Material
Topics 2021
3-3 Management
of material topics
Planet; Biodiversity (p. 71-73)
GRI 304:
Biodiversity
2016
304-1 Oper-
ational sites
owned, leased,
managed in,
or adjacent to,
protected areas
and areas of high
biodiversity value
outside protected
areas
Fully omitted. Information
unavailable/
incomplete
We plan to do
a biodiversity
impact assess-
ment in 2024.
304-2 Significant
impacts of activ-
ities, products
and services on
biodiversity
Planet; Biodiversity (p. 71-73)
Sustainability performance data (p. 219)
b) Our current
reporting does
not include
significant direct
and indirect posi-
tive and negative
impacts on biodi-
versity.
Information
unavailable/
incomplete
We plan to do
a biodiversity
impact assess-
ment in 2024.
Emissions
GRI 3: Material
Topics 2021
3-3 Management
of material topics
Planet (p. 60-76)
GRI 305: Emis-
sions 2016
305-1 Direct
(Scope 1) GHG
emissions
Planet (p. 60-70)
Sustainability performance data (p 218)
305-2 Energy
indirect (Scope 2)
GHG emissions
Planet (p. 60-70)
Sustainability performance data (p 218)
305-3 Other
indirect (Scope 3)
GHG emissions
Sustainability performance data (p 218)
305-4 GHG emis-
sions intensity
Planet (p. 60-70)
238Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
GRI 305: Emis-
sions 2016
305-5 Reduction
of GHG emissions
Planet (p. 60-70)
Sustainability performance data (p 218)
Negligible emissions of CH4, HFCs, PFCs, SF6, NF3 and as such are
not reported.
A base year of 2019 was selected due to it being the most representa-
tive activity level in our fleet, prior to the Covid-19 pandemic.
305-7 Nitrogen
oxides (NO
X
),
sulfur oxides
(SO
X
), and other
significant air
emissions
Planet (p. 60-76)
Sustainability performance data (p 218)
We do not report
total NO
X
emis-
sions
Information
unavailable/
incomplete
It is technically
not possible to
report on this,
because we
cannot measure
it.
Waste
GRI 3: Material
Topics 2021
3-3 Management
of material topics
Planet (p. 75-76)
GRI 306:
Waste 2020
306-1 Waste
generation
and significant
waste-related
impacts
Planet (p. 75-76)
Sustainability performance data (p. 219)
306-2
Management
of significant
waste-related
impacts
Planet Chapter; Waste management (p. 75-76)
The process used to collect and monitor waste-related data for ship-
ping is defined by MAROPOL annex V.
For logistics, the environmental framework is designed to comply
with ISO 14001 standards and local regulatory requirements. A key
aspect of this framework is the use of systematic processes to collect
and monitor waste-related data. Each site has the ability to report
their waste on a monthly basis using the WoW Global KPI reporting
page, and the information collected is displayed on the WoW Sustain-
ability reports. This year, a new KPI was introduced to measure cubic
meter waste generated over 1000 units processed, providing a better
understanding of the waste generated per unit processed. By using
these processes to collect and monitor waste-related data, the organi-
zation can ensure that it is meeting its environmental obligations and
reducing its impact on the environment.
b) We do not
report on the
process to
determine
whether third
party manages
waste in line with
contractual or
legislative obliga-
tions.
Information
unavailable/
incomplete
We are looking
into ways of
improving our
monitoring and
reporting in this
area.
306-3 Waste
generated
Reporting on waste management:
Planet, waste management (p. 75-76)
Sustainability performance data (p. 219). Waste is reported for ship-
ping in cbm.
Fully omitted.
We do not
currently report
a breakdown by
hazardous versus
non-hazard-
ous waste nor
waste treatment
method.
Information
unavailable/
incomplete
This is challeng-
ing due to the
global nature of
our operations
and variable local
waste and recy-
cling practices.
306-4 Waste
diverted from
disposal
Fully omitted. We
do not currently
report total
weight of waste
diverted from
disposal and a
breakdown of this
total by compo-
sition of waste,
recovery opera-
tions.
Information
unavailable/
incomplete
This is challeng-
ing due to the
global nature of
our operations
and variable local
waste and recy-
cling practices.
239Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
GRI 306:
Waste 2020
306-5 Waste
directed to
disposal
Reporting on waste management;
Planet, waste management (p. 75-76)
Sustainability performance data (p. 219)
Fully omitted.
We do not
currently report
total weight of
waste directed to
disposal in metric
tons, including
a breakdown of
waste composi-
ton and disposal
operations.
We do not
currently report
a breakdown by
hazardous versus
non-hazardous
waste.
Information
unavailable/
incomplete
This is challeng-
ing due to the
global nature of
our operations
and variable local
waste and recy-
cling practices.
Employment
GRI 3: Material
Topics 2021
3-3 Management
of material topics
People (p. 43-58)
GRI 401:
Employment
2016
401-1 New
employee hires
and employee
turnover
People (p. 43-58) Employee turn-
over
Information
unavailable/
incomplete
We are imple-
menting a new HR
system which will
be able to track
global turn-over.
To be completed
within 2024.
Occupational health and safety
GRI 3: Material
Topics 2021
3-3 Management
of material topics
People (p. 43-58)
GRI 403:
Occupational
Health and
Safety 2018
403-1 Occupa-
tional health and
safety manage-
ment system
All employees are covered by an occupational health and safety
management system, based on recognized risk management and / or
international standards or guidelines. The policy applies to all employ-
ees within the Wallenius Wilhelmsen group, including temproary staff,
contractors, and agency staff.
The Company has procedures, plans and instructions and checklists
for key shipboard operations concerning the safety of the person-
nel, ship and protection of the environment. Tasks are defined and
assigned to qualified personnel. The SMS includes procedures ensur-
ing that non- conformities, accidents and hazardous situations are
reported to the company, investigated and analysed with the objective
of improving safety and pollution prevention. The Company also has
established procedures for the implementation of corrective action,
including measures intended to prevent recurrence.
At logistics services, the company requires Hazard Assessments,
which includes on-site hazard identification and job safety analyses.
e.g. before all physical jobs there is a process to assess and discuss
potential work related hazards between team members. All employ-
ees are trained in identifying potential hazards. In addition poten-
tial hazards identified are reported in the incident reporting system
and must be addressed by the line manager and marked complete
when they have been mitigated. Reminders are automatically sent by
the system to ensure risks are addressed and results are discussed
regularly at daily operations manager meetings. The company uses
Systems Evaluations, weekly HSE Audits and Programme Manager
Audits to ensure the quality of these processes, and system changes
are identified and approved at quarterly management reviews. The
company’s Ethics Hotline and Issues & Opportunities Register are
tools for all employees and contractors to enter HSQ risks from their
mobile devices.
Read more about our occupational health and safety management
system in the people chapter; health, safety and wellbeing (p. 43-48).
240Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
GRI 403:
Occupational
Health and
Safety 2018
403-2 Hazard
identification, risk
assessment, and
incident investi-
gation
At logistics services, each site has a dedicated Health & Safety First
representative, who has specialist knowledge and training to support
workers at their site. Additionally, hazard identifications, hazard
assessments and job safety analyses contribute to finding and elimi-
nating hazards.
For Shipping services, in compliance with ISM Code, and to ensure the
safe operation of each ship and to provide a link between the company
and those on board, the company has designated a person or persons
ashore having direct access to the highest level of management. The
responsibility and authority of the designated person(s) include moni-
toring the safety and pollution- prevention aspects of the operation of
each ship.
The company also maintains a global Ethics Hotline so employees
and stakeholders can report (confidentially if desired) concerns about
health and safety issues, or any other concerns, read more about
the system and protection of workers on page 108. All workers are
protected against reprisals per the SafetyFirst programme documen-
tation, and have continual training and are aware of targets around
incident reporting to ensure high levels of hazard reporting.
Occupational health and safety management system is implemented,
monitored and reviewed to address the specific risks and opportu-
nities related to the organization`s activities and impacts. Wallenius
Wilhelmsen`s risk management system includes regular risk assess-
ments, hazard identification, and control measures to ensure opera-
tional and technical safety by identifying, assessing and controlling
all hazards. Approperiate action must be taken when a hazard is
identified. A number of KPIs, including injury related KPIs, completion
of audits, and audit scores, are tracked to monitor the OHSMS and
ensure management system compliance.
Read about our global safety committee on page 47 in the Health and
Safety chapter.
403-3 Occu-
pational health
services
People chapter; health, safety and wellbing (p. 43-48)
403-4 Worker
participation,
consultation, and
communication
on occupational
health and safety
Monthly global safety meetings and weekly safety meetings are
held at all production (logistics) sites, and weekly safety topics are
communicated to all safety responsibles. Additionally, shift meetings
follow a standardised format coverng safety topics before every shift
at all sites. Safety Committee members play a vital role supporting
the Safety 1st culture. Safety Committees provide an opportunity for
employees to use their experience to assist in promoting safe work
practices and working conditions. Safety Committee members are
available as a resource and point of contact to promote safe work
practices. The Safety Committee Chairperson and site Operations
Manager work as a team to facilitate the effective implementation of
the Safety 1st Program, perform senior level reviews/evaluations, and
serve as the liaison with the Safety 1st Program Manager.
241Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
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Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
GRI 403:
Occupational
Health and
Safety 2018
403-5 Worker
training on occu-
pational health
and safety
At Shipping services, the company complies with ISM Code Ch.6, and
ensures that vessel masters are properly qualified for command;
fully conversant with the company’s Safety Management System;
and given the necessary support so that the master’s duties can be
safely performed. We ensure that each ship is manned with qualified,
certificated and medically fit seafarers in accordance with national
and international requirements; and appropriately manned in order to
encompass all aspects of maintaining safe operation on board.
(See the Principles of minimum safe manning, adopted by the Orga-
nization by Resolution A.1047(27). The Company also has proce-
dures to ensure that new personnel and personnel transferred to new
assignments related to safety and protection of the environment are
given proper familiarization with their duties. Instructions essential to
be provided prior to sailing are identified, documented and given.
We ensure that all personnel involved in the company’s SMS have an
adequate understanding of relevant rules, regulations, codes and
guidelines. Additional procedures exist for
a. identifying any training which may be required in support of
the SMS to help ensure training is provided for all personnel
concerned; and
b. ensuring the ship’s personnel receive relevant information on
the SMS in a working language or languages understood by
them. The Company ensures that the ship’s personnel are able
to communicate effectively in the execution of their duties related
to the SMS. At production and logistics sites, Safety Committee
members are trained in using the JSA process as it relates to all
facets of our logistics operations, including the generation of a
health and safety plans or risk management strategies for project
work.
403-6 Promotion
of worker health
a. Logistics employees have access to two Company-sponsored
services:
- Active employees are eligible to enroll into company sponsored
medical plans. Employee pays a portion of cost.
- All employees can participate in short-term disability insurance.
The cost of this insurance is fully paid by the company. While
Wallenius Wilhelmsen uses from time to time contract staffing
services, contract (Temporary ) employees are not eligible for this
coverage.
b. The company also provides an employee wellness program.
These services include healthy lifestyle coaching and deep,
clinically-focused condition management. Ocean crew are
directly employed by ship management suppliers hired by Walle-
nius Wilhelmsen. Healthcare is provided to ocean crew by ship
management company and paid by Wallenius Wilhelmsen. We
also pay for additional healthcare insurance for families. The ship
management companies are held responsible for implementing
our Ship Operation & Management Policy and ensuring that the
vessel complies with the company’s HSEQC policies as well as all
IMO SOLAS requirements. Our Marine Operations Management
team can have vessels audited for compliance with the compa-
ny’s policies on fair wages and working conditions. Addition-
ally, the company maintains a global Alert Line which crew and
employees can use (confidentially, if desired) to report complaints
on working conditions or any other subject.
242Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
GRI 403:
Occupational
Health and
Safety 2018
403-7 Prevention
and mitigation
of occupational
health and safety
impacts directly
linked by busi-
ness relation-
ships
At logistics services, when working with heavy equipment and prod-
ucts, there are often health and safety risks that may not be directly
under our control. Therefore we actively communicate to business
partners about our health & safety standards through our Code of
Conduct for employees and suppliers, and train our employees so they
can report incidents where they feel unsafe for example through our
whistleblower channel. We also conduct trainings (RoRo Rodeo, etc) to
show our suppliers, customers and other partners how to work safely
with heavy equipment.
For Shipping services, in compliance with ISM Code Chapter 12, the
company conducts internal safety audits on board and ashore at
appropriate intervals to verify whether safety and pollution-preven-
tion activities comply with the SMS. The Company also periodically
verifies whether all those undertaking delegated ISM-related tasks are
acting in conformity with the company’s responsibilities. The Company
periodically evaluates the effectiveness of the SMS, and audits and
possible corrective actions are carried out in accordance with internal
procedures. Management personnel responsible for the vessel or area
involved is required to take timely corrective action on deficiencies
found.
People, Health, safety and wellbeing (p. 43-48)
403-8 Workers
covered by an
occupational
health and safety
management
system
All employees are covered by an occupational health and safety
management system (OHSMS), based on recognized risk manage-
ment and / or international standards or guidelines. The OHSMS is
monitored and reviewed to address specific risks and opportuntiies
related to the organization`s activities and impacts. The policy applies
to all employees within the Wallenius Wilhelmsen group, including
temporary staff, contractors and agency staff, who are responsible for
understanding, promoting and conducting their work in accordance
with this policy.
On the logistics services side, the majority of locations have achieved
ISO 45001 certification, including all locations in the Americas and
EMEA. Asia and Oceania have in 2023 worked to implement Safety
1st and are preparing for ISO certification in 2024. Shipping services
is also pursuing ISO certification and rolling out WoW and Safety 1st,
which started 2023 and is continuing through 2024.
403-9 Work-re-
lated injuries
People Chapter; Health, safety and wellbeing (p. 43-48)
Sustainability performance data (p. 220)
a-c) Office
workers are not
included in the
LTI statistic and
office related
man-hours are
not reported. the
total number of
hours worked are
used to calculate
LTIF per million
man-hours.
We currently
do not have a
breakdown by
emplyees and
contractors.
Information
unavailable/
incomplete
403-10 Work-re-
lated ill health
Fully omitted. Information
unavailable/
incomplete
We do not report
data on work-re-
lated ill health.
Training and education
GRI 3: Material
Topics 2021
3-3 Management
of material topics
People, training & development (p. 57-58)
GRI 404: Train-
ing and Educa-
tion 2016
404-1 Average
hours of train-
ing per year per
employee
Sustainability perfromance data (p. 221) a i) Average hours
of training that
the organiza-
tion’s employees
have under-
taken during the
reporting year
by gender is not
available.
Information
unavailable/
incomplete
Our HR data
system does not
collect this data.
243Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
GRI Index
Contents →
GRI standard/
other source Disclosure Wallenius Wilhelmsens’ response
Omission
Requirement(s)
omitted Reason Explanation
GRI 404: Train-
ing and Educa-
tion 2016
404-2 Programs
for upgrading
employee skills
and transi-
tion assistance
programs
All office employees are included in our GoGrowSucceed programme
and are offered person development discussions with manager.
404-3 Percent-
age of employees
receiving regular
performance and
career develop-
ment reviews
People, training & development (p. 57-58)
Sustainability Performance Data (p. 221)
a) Data not
available for
non-office based
employees.
Information
unavailable/
incomplete
Our HR data
system does not
collect this data.
Diversity and equal opportunity
GRI 3: Material
Topics 2021
3-3 Management
of material topics
People; diversity, equity and inclusion (p. 53-56)
GRI 405:
Diversity and
Equal Opportu-
nity 2016
405-1 Diversity
of governance
bodies and
employees
People; diversity, equity and inclusion (p. 53-56)
Sustainability performance data (p. 219-220)
Board of directors (p. 16-18)
The board consists of 3 female (50%) and 3 male (50%) members
a ii) We do not
report the age
group of the
board of direc-
tors.
Information
unavailable/
incomplete
We do not collect
this data.
405-2 Ratio of
basic salary and
remuneration of
women to men
People chapter; Diversity, Equity and Inclusion (p. 53-56)
The locations were selected because they are key offices.
a) We do not
report a ratio of
the basic salary
and remunera-
tion of women
to men for
each employee
cateogry.
Information
unavailable/
incomplete
Going forward
we will conduct a
global gender pay
compensation
analysis.
Customer privacy
GRI 3: Material
Topics 2021
3-3 Management
of material topics
Principles of governance (p. 94-111)
GRI 418:
Customer
Privacy 2016
418-1 Substan-
tiated complaints
concerning
breaches of
customer privacy
and losses of
customer data
We have had zero privacy and security incidents.
244Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
SASB Index
Contents →
SASB Index
Topic Accounting metric Unit of measure Data 2023 SASB code
Greenhouse
Gas Emissions
CO
2
Emissions
Gross global Scope 1 emissions: Financial control approach Metric tonnes CO₂-e 4,095,675 TR-MT-110a.1
Discussion of long-term and short-term strategy or plan to
manage Scope 1 emissions, emissions reduction targets,
and an analysis of performance against those targets
Qualitative description Planet (p. 60-70) TR-MT-110a.2
Energy consumed
Total energy consumed, shipping services Gigajoules (GJ) 54,386,000
TR-MT-110a.3
Percentage of energy from
heavy fuel (%)
35%
Percentage of energy from renew-
able/low-carbon sources (%)
0.3%
EEDI
Average Energy Efficiency Design Index (EEDI) for new ships Grams of CO₂ per tonne-
nautical mile
12.8 TR-MT-110a.4
Air Quality Other emissions to air
(1) NO
X
(excluding N2O) Metric tons Data not available
TR-MT-120a.1(2) SO
X
Metric tons 10,167
(3) particulate matter Metric tons Data not available
Ecological
Impacts
Marine protected areas
Shipping duration in marine protected areas or areas of protected
conservation status
Number of travel days Not available TR-MT-160a.1
Implemented ballast water
(1) exchange Percentage (%) 4%
TR-MT-160a.2
(2) treatment Percentage (%) 96%
Spills and releases to the environment
(1) number Number 0
TR-MT-160a.3
(2) aggregate volume Cubic meters (m³) 0
Employee
Health &
Safety
Lost time incident rate
Lost time incident rate (LTIR) Rate
Shipping: 0.56
Logistics: 14.33
TR-MT-320a.1
Business
Ethics
Corruption index
Number of calls at ports in countries that have the 20 lowest rank-
ings in Transparency International’s Corruption Perception Index
Number 10 TR-MT-510a.1
Corruption
Total amount of monetary losses as a result of legal proceedings
associated with bribery or corruption
Reporting currency
We are not aware of
any fines, significant
or otherwise related to
corruption.
TR-MT-510a.2
Accident
& Safety
Management
Marine casualties
Incidents Number 0
TR-MT-540a.1
Very serious marine casualties Percentage (%) 0
Conditions of Class
Number of Conditions of Class or Recommendations Number Data not available TR-MT-540a.2
Port State Control
(1) deficiencies
Rate
1.01 average deficien-
cies per inspection
TR-MT-540a.3
(2) detentions Number 3.00
245Wallenius Wilhelmsen – Annual Report 2023
Sustainability statements
TCFD Index
Contents →
TCFD Index
Theme Recommendation See section, page:
Governance a. Describe the board’s oversight of climate-related risks and opportunities. Principles of governance (p. 94-111)
Planet (p. 60-76)
b. Describe management’s role in assessing and managing climate-related risks and
opportunities.
Planet (p. 60-76)
Strategy a. Describe the climate-related risks and opportunities the organization has identified
over the short, medium, and long term.
Planet (p. 60-76)
b. Describe the impact of climate-related risks and opportunities on the organization’s
businesses, strategy, and financial planning
Planet (p. 60-76)
c. Describe the resilience of the organization’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario
Planet; Greenhouse gas emissions (GHG) and
climate risk (p. 60-70)
Risk
Management
a. Describe the organization’s processes for identifying and assessing climate-related risks. Key risk exposure (p. 37-39)
Planet (p. 60-76)
b. Describe the organization’s processes for managing climate-related risks. Planet (p. 60-76)
c. Describe how processes for identifying, assessing, and managing climate-related risks
are integrated into the organization’s overall risk management.
Key risk exposure (p. 37-39)
Planet (p. 60-76)
Metrics &
targets
a. Disclose the metrics used by the organization to assess climate-related risks and
opportunities in line with its strategy and risk management process.
Planet (p. 60-76)
b. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions
and the related risks.
Sustainability performance data (p. 218)
c. Describe the targets used by the organization to manage climate-related risks and
opportunities and performance against targets.
Planet (p. 60-76)
Topic Activity metric Unit of measure Data 2023 SASB code
Shipboard
personnel
Onboard positions Number 1850
TR-MT-000.A
Crew-pool Number Approx. 2650
Vessel operation Total distance travelled by vessels Nautical miles (nm) Approx. 12,000,000 TR-MT-000.B
Operating days
1
Days 40 688 TR-MT-000.C
Deadweight tonnage
2
Thousand deadweight tons 2221194,3 TR-MT-000.D
Number of vessels in fleet
3
Number 125 TR-MT-000.E
Number of vessel port calls
4
Number 8,338 TR-MT-000.F
Car Equivalent Unit
5
CEU 847 900 TR-MT-000.G
1 Data for WWO and Eukor
2 Unit of measure; deadweight tonnage, value is approximation
3 Vessels in fleet was calculated on 31 Dec 2023
4 Data for WWO and Eukor
5 We do not measure twenty-foot equivalent unit (TEU), instead we measure Car Equivalent Unit (CEU)
247
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Responsibility statement
Contents →
Wallenius Wilhelmsen – Annual Report 2023
The board of directors and the CEO approve the annual report for Wallenius Wilhelm-
sen ASA (“the Company”) and the Wallenius Wilhelmsen Group (“the Group”) for
the financial year ending December31, 2023.
We confirm, to the best of our knowledge, that as of December31, 2023:
•
The consolidated financial statements have been prepared in accordance
with current applicable accounting standards and they give a true and fair
view of the Company’s and the Group’s assets, liabilities, financial position
and results
•
The consolidated financial statements and the financial statements of
the parent company have been prepared based on the going concern
assumption, and the conditions to make that assumption are present
•
The annual report meets the requirements of the Sustainability Account-
ing Standards Board’s (SASB) Marine Transportation and Road Transpor-
tation as well as the GRI Universal Standards for sustainability reporting
•
The annual report covers the requirements of the Norwegian Transparency
Act regarding reporting on human rights due diligence
•
The annual report meets the requirements of the Norwegian Accounting
Act regarding the content of the report of the board of directors, state-
ments of corporate governance and corporate social responsibility
•
The annual report includes disclosures in accordance with the require-
ments in the Norwegian Code of Practice for Corporate Governance
•
The annual report, including the message from the board, and the chap-
ters on corporate governance and sustainability, give a true and fair view
of the development, performance and financial position of the Company
and the Group, and include a description of the key risks and uncertain-
ties facing the Company and the Group
248
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Responsibility statement
Contents →
Wallenius Wilhelmsen – Annual Report 2023
Lysaker, March 12, 2024
The board of directors of Wallenius Wilhelmsen ASA
ww-annualreport-2023 for signing.pdf
Name Method Signed at
Anna Elsa Felländer BANKID 2024-03-13 15:28 GMT+01
Bjerke, Rune BANKID 2024-03-13 14:49 GMT+01
Kerstin Margareta Alestig Johnson BANKID 2024-03-13 14:43 GMT+01
HANS ÅKERVALL BANKID 2024-03-13 14:34 GMT+01
Åsheim, Yngvil S Eriksson BANKID 2024-03-13 14:29 GMT+01
Wilhelmsen, Thomas BANKID_MOBILE 2024-03-14 01:59 GMT+01
Kristoffersen, Lasse BANKID 2024-03-13 15:58 GMT+01
List of Signatures Page 1/1
This file is sealed with a digital signature. The seal is a guarantee for the authenticity of the document.
External reference: 6ACE379C4FA54A71BE6F88D02CDAD63B
249
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Responsibility statement
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Wallenius Wilhelmsen – Annual Report 2023
The below list maps requirements in the Norwegian Accounting Act related to the
board of directors report to the relevant sections in the annual report
Norwegian
Accounting
Act reference Content
Annual report
chapter reference
Page
reference
Section 3-3a,
para. 1
Information regarding the nature and location of the business, including information on any
branch offices
Wallenius Wilhelmsen at a glance
Message from the board
Principles of governance
Group financial statements:
- note 2
- note 12
4-18
22-41
93-111
133-137
157-158
Section 3-3a,
para. 2
Overview of the development and results of operations and position, together with a descrip-
tion of the main risks and uncertainty factors facing the group and including information on
research and development activities.
Words from CEO
Message from the board
Prosperity
19-21
22-41
77-92
Section 3-3a,
para. 5
A description that provides a basis for assessing the enterprise’s future outlook, including
whether the results for the year agree with previously stated expectations and reasons for any
discrepancy.
Message from the board 22-41
Section 3-3a,
para. 6
Information regarding any financial risk that is significant to the evaluation of the compa-
ny’s assets, liabilities, financial position and results. This information shall include goals and
strategies that have been determined for managing the financial risk, including the strategy
for hedging each main type of planned transaction for which a hedging assessment has been
used. An account shall be given of the enterprise’s exposure to market risk, credit risk and
liquidity risk.
Message from the board
Principles of governance
Group financial statements:
- note 17
22-41
93-111
168-178
Section 3-3a, para.
7, cfr. Section 4-5
Information regarding the going concern assumption Responsibility statement 246-247
Section 3-3a,
para. 8
Proposal for the allocation of profit or settlement of loss Message from the board 22-41
Section 3-3a,
para. 9
Information about the work environment, along with an overview of implemented measures
relevant to the working environment including information on injuries, accidents and sick leave
rates.
Message from the board
People
22-41
42-58
Section 3-3a, para.
10
Information shall be provided about matters relating to the business, hereunder its factor
inputs and products, which may result in a not insignificant impact on the external environ-
ment. The environmental impacts each aspect of the business has or may have, as well as the
measures implemented or planned implemented to prevent or reduce negative environmental
impacts, shall be stated.
Message from the board
Planet
22-41
59-76
Section 3-3a, para.
11
Information on whether there is insurance cover for the board members’ and CEO’s potential
liabilities towards the company and third parties, including information on the relevant insur-
ance coverage
Principles of governance 93-111
Section 3-3a, para.
12 cfr. Securities
Trading Act Section
5-8a (1)-(4)
Shareholder information:
- description of any provisions of articles of association that restrict the right to trade in the
shares of the company
- description of who exercises the rights attached to shares in any employee share schemes
where authority is not exercised directly by the employees covered by the scheme
- agreements between shareholders which are known to the company, and which restrict the
possibilities of trading in or exercising voting rights attached to shares
- significant agreements to which the company is a party, the terms of which take effect, alter
or terminate as a result of a takeover bid, and a description of those terms
N/A
Section 3-3b Report on corporate governance Principles of governance 93-111
Section 3-3c,
para. 1
Report on social responsibility Message from the board
People
Planet
Prosperity
22-41
42-58
59-76
77-92
Section 3-5, para. 1 Signature requirements for the consolidated financial statements, the financial statements of
the parent company and the message from the board.
Responsibility statement 246-249
Norwegian
Transparency Act
Report on due diligence carried out to identify and assess any adverse impact on human rights
and decent working conditions in the group’s operations or its supply chains.
People 42-58
Equality and
Anti-discrimination
Act para. 26a
Report on the actual status regarding gender equality in the organization and which activities
are undertaken to prevent discrimination (reported for Norwegian companies with employees).
Separate report published on the
group’s website
251
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Wallenius Wilhelmsen – Annual Report 2023 251
Auditor’s report
Contents →
Wallenius Wilhelmsen – Annual Report 2023
PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
To the General Meeting of Wallenius Wilhelmsen ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Wallenius Wilhelmsen ASA, which comprise:
• the financial statements of the parent company Wallenius Wilhelmsen ASA (the Company), which
comprise the balance sheet as at 31 December 2023, the income statement, statement of
comprehensive income and cash flow statement for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, and
• the consolidated financial statements of Wallenius Wilhelmsen ASA and its subsidiaries (the
Group), which comprise the balance sheet as at 31 December 2023, the income statement,
statement of comprehensive income, statement of changes in equity and cash flow statement 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 2023, and its financial performance and its cash flows for the year then ended in
accordance with simplified application of international accounting standards according to section 3-
9 of the Norwegian Accounting Act, and
• the consolidated financial statements give a true and fair view of the financial position of the Group
as at 31 December 2023, 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 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 the Company for 14 years from the election by the general meeting of the
shareholders on 12 February 2010 for the accounting year 2010.
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 the current period. 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.
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Similar to the 2022 audit, we focused on Impairment Assessment of Goodwill as this risk remains relevant.
Key Audit Matters
How our audit addressed the Key Audit Matter
Impairment Assessment of Goodwill
The net book value of goodwill as at 31 December
2023 is USD 201 million. In line with IFRS
requirements, an impairment test for goodwill was
performed as at 31
December 2023 resulting in no
impairment recogni
sed. The goodwill impairment
assessment involved significant management
judgment in preparing cash flow forecasts for the
applicable reporting segments and in assessing the
discount rate.
We focused on goodwi
ll due to the significance of
the amount in the balance sheet and the significant
judgment applied by management in assessing the
potential need for impairment.
We refer to note 1 (Significant accounting
judgments, estimates and assumptions), note 8
(Goodw
ill, customer relations/contracts and other
intangible assets) and note 11 (Impairment on non
-
current assets) for further information on
management’s impairment assessment.
We evaluated and challenged management’s
impairment assessment and the process
by which
this was performed. We assessed management’s
accounting policy against relevant IFRSs and
obtained explanations from management as to how
the specific requirements of the standards, in
particular IAS 36
– Impairment of assets, were met.
The foreca
st for the future cash flows were based
on a detailed budgeting process. To assess the
reliability of management’s forecast, we held
discussions with management and challenged
them on several of the assumptions applied in the
impairment model, such as the
discount rate, the
long
-term growth rate and capital expenditure.
Specifically, we used our internal valuation
specialists and external market data to discuss the
assumptions management had used to build the
discount rate. We
found that the discount rate u
sed
by management was within a reasonable range.
We reviewed management’s authorized budgets
and forecasts and discussed the impact of climate
related risks to the future cash flows of the Group.
Where possible, we compared these to current and
historical
market data to corroborate the
reasonableness of cash flows used by
management. Our procedures also included
sensitivity analyses to key assumptions applied.
The performed sensitivity analyses indicated
headroom for all key assumptions for the
segments.
T
hrough our testing and discussion, we found that
the assumptions applied by management in the
impairment assessment were reasonable.
We also tested the mathematical accuracy of the
impairment model. We found that the model was
calculating net present value
s as intended.
We considered the appropriateness of the related
disclosures in note 1, 8 and 11 to the consolidated
financial statements to the requirements of the
applicable financial reporting framework, IFRS,
including IAS 36
– Impairment of assets and found
the disclosures to be adequate.
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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
appears 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 opinion on the Board of Director’s report applies correspondingly to the statements on Corporate
Governance and Corporate Social Responsibility.
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 simplified application of international accounting standards according to the
Norwegian Accounting Act section 3-9, 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
and using 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
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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 evidence 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 auditor’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.
• 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, actions taken to
eliminate threats or safeguards applied.
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 Wallenius Wilhelmsen ASA, we have performed an
assurance engagement to obtain reasonable assurance about whether the financial statements included in
the annual report, with the file name 549300NBN0URT3RA3Y54-2023-12-31-en.zip, have been prepared,
in all material respects, in compliance with the requirements of the Commission Delegated Regulation (EU)
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Wallenius Wilhelmsen – Annual Report 2023
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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 compliance with the ESEF regulation.
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Management is responsible for the preparation of the annual report in compliance with the ESEF regulation.
This responsibility comprises an adequate process and such internal control as management determines is
necessary.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the ESEF
reporting, see: https://revisorforeningen.no/revisjonsberetninger
Oslo, 12 March 2024
PricewaterhouseCoopers AS
Bjørn Lund
State Authorised Public Accountant
(This document is signed electronically)
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Wallenius Wilhelmsen – Annual Report 2023 256
Auditor’s report
Contents →
Wallenius Wilhelmsen – Annual Report 2023
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2024-03-12 19:30BANKID_MOBILELund, Bjørn
Auditor's report