CEO Foreword
time. In 2021, our short-term response to these challenges has matured and resulted in lasting benefits for our people. More recently, the tragic events taking place in Ukraine have had a negative impact on global crew sourcing from both Ukraine and Russia, which combined make up approximately 15% of the global seafaring pool. A significant proportion of our crew is sourced from Ukraine and as such, we’ve made an effort to accommodate our seafarers’ requests, in terms of increased communication access and early (or extended) relief. We are deeply concerned about the well-being of our seafarers and their families and have commenced an initiative to support them, and their families, with transportation, temporary housing and by other means in order to help them during this difficult period. In the longer term, V.Group remains committed to supporting the IMO’s 2030 and 2050 targets for reducing GHG emissions in the shipping industry. We believe data driven decision making and transparent reporting are fundamental to the execution of our sustainability approach. ShipSure, our global ship management digital platform enables monitoring, managing, and reporting ESG related KPIs, including energy efficiency and health and safety metrics. V.Group’s high organisational strength and resilience built by our outstanding personnel stands us in great stead to tackle the challenges presented by the current heightened geopolitical environment. In addition, we have partnered with McKinsey to exclusively provide solutions to the decarbonisation challenge utilising the Fleet Decarbonisation Optimiser (FDO) which provides the most rigorous, fact-based perspective on the economics (e.g., capex, opex) and decarbonisation benefits of over 100 different ship efficiency upgrades, engines, and fuels. It is built on top of the Maersk Mc-Kinney Moller Center for Zero Carbon Shipping’s NavigaTE total cost of ownership (TCO) model. The recommendations are stress-tested against a few scenarios that reflect the uncertainty on regulations, economics of alternative fuels, financing landscape, etc. The results are endorsed by the experts of the Maersk Mc-Kinney Moller Center for Zero Carbon Shipping as the best possible recommendation to meet a given decarbonisation target given what we know today about how different solutions will evolve. V.Group are proactively looking to the future, driven by the recently introduced IMO legislation. Our intention is to listen to our customers’ ESG ambitions and to utilise our diverse in-house Marine Services capability to provide eco solutions for existing tonnage, which is a differentiator where we can tailor packages for customers to enable cost efficient and energy reducing data supported decision making.
This report is our third comprehensive and stand-alone sustainability report which provides an opportunity to reflect on our ESG journey so far and look ahead to the challenges we face in the short, medium and long term. This year we have decided to go one step further with our voluntary reporting by incorporating the Task Force on Climate- Related Financial Disclosure (TCFD) framework. Using this framework, we were able to identify and transparently articulate what ESG risks and opportunities are of primary importance to our company, customers and stakeholders. In materiality sessions, topics such as carbon markets, future energy mixes, sea level rises and infrastructure resilience were considered, as well as how these might impact us both directly, and indirectly through clients. These risks and opportunities were structured in a prioritised manner, facilitating the optimisation of our efforts to enact positive change across the full ESG spectrum. A key development in 2021 was our decision to partner with the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping to help the industry transition to a net zero future. To support this partnership, we have established a dedicated function, Sustainability & Decarbonisation to position V.Group firmly at the forefront of a zero-carbon maritime future, in line with our stated strategic objectives within ESG. In the past, environmental issues have dominated ESG discussions in the shipping industry. However, the Covid-19 pandemic and ever-increasing regulatory environment have resulted in a more balanced sustainability landscape. Identifying and addressing risks and opportunities across the ESG spectrum are at the core of V.Group’s business strategy. This includes our responsibilities to our communities and people, the environment, and the governance systems that facilitate the functioning of our business. Our response to the challenges we have faced in recent years, most notably the Covid-19 pandemic and IMO regulations, is testimony to the resilience and agility of the sustainability framework we have implemented and our ability to not only overcome such challenges but thrive when doing so. Balancing the interests and expectations of all our stakeholders, including investors, employees, customers, suppliers, and communities is never easy but we believe our sustainability strategy is key to striking this balance and creating long-term value. Our number one priority is the health and safety of our people, including the thousands of seafarers onboard our managed fleet. This is not a compliance exercise or a sustainability strategy – this is “Safety first, no compromises”. In 2021, we lost 3 valued crew members in work-related incidents. A single fatality is one too many, and these losses were genuinely felt by colleagues. While we continue to assist and support the crew members’ loved ones through these times, we know that we cannot make such a loss easier. Our thoughts remain with those affected by these losses. We have a strict ambition of zero accidents or harm to the environment. More than anything, this is our guiding principle. Shipping has its risks - we must continually strive to ensure we do everything we can to minimise them. These 3 fatalities were fully investigated, and all lessons learned were communicated to other seafarers. We will continue to strive to get all colleagues home safely. The Covid-19 pandemic has placed great demands on our people, none more so than our seafarers, and we are extremely grateful for their hard work and dedication during this challenging
René Kofod-Olsen CEO V.Group
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