05 | ESG strategy
Engaging our stakeholders
In line with the increasing expectations of stakeholders and society – and because we know it is the right thing to do – Hafnia is committed to its role as a responsible industry leader. Throughout 2021, we have consolidated our material issues and the strategic direction of our ESG efforts. The path towards decarbonisation requires wide-reaching partnerships with internal and external stakeholders, including shipyards, charters, bunker suppliers and regulatory bodies. Regular communication with these parties is essential in informing our approach to sustainability and the development of solutions for net zero carbon shipping.
To achieve the objectives outlined in our ESG strategy, we strive to foster a culture of innovation within Hafnia by encouraging our teams to develop ideas on new ways of meeting and exceeding our stakeholders’ needs. We collaborate with our partners and continually scout opportunities to partner with start-ups and industry majors to accelerate our ESG initiatives and tackle some of the significant challenges faced by the shipping industry today.
Introducing best practices in ESG reporting for the shipping industry
In 2021, Hafnia partnered with Diginex, a leading, sustainability-focused Impact Tech company, to bolster the digital collection, management, and reporting of our ESG data. The partnership focused on conducting a joint study of key disclosures relevant to the maritime industry, selecting from best-practice frameworks, including the SDGs, Sustainability Accounting Standards Board (SASB), Task Force on Climate- related Disclosures (TCFD) as well as bespoke indicators. The two companies will work together to digitise and automate ESG data management processes – creating opportunities to increase efficiency, transparency, and reliability of ESG efforts and data.
Hafnia keeps its stakeholders updated and assured of its commitments and actions for sustainability through a variety of channels, including board meetings, conferences, press releases and social media.
Digitalisation to reduce environmental impact
Since 2017, Hafnia has been using and co-developing COACH, a vessel performance monitoring and weather routing system. COACH has helped Hafnia optimise vessel performance, monitor hull performance, reduce fuel consumption and monitor and report on environmental KPIs. Building on this, Hafnia has also invested in SmartShip, a cloud-based solution that collects live data from vessels and provides real time analytics and insights to increase operational efficiency. SmartShip is currently installed on five ships within Hafnia’s fleet, with a further 11 to come in 2022.
This type of innovation will continue to underscore Hafnia’s sustainability activities in the future. For example, we are exploring the concept of digital twins. Digital twins are near-real time digital models of real- world objects or processes, designed to help optimize business performance. Maritime digital twins will allow us to run hypotheses on marine operations, combining real time data with synthetic values from a simulator. By doing this, we will be able to optimize a vessel’s efficiency from cradle to grave.
Collaborating with Chartering Shipping Services SA on LNG fueled vessels
Our collaboration with Chatering Shipping Services SA (CSSA) to develop LNG fueled vessels is an example of a strategic alliance with our customers and how we are working to future proof our operations. Our close cooperation with CSSA add value to both companies, the collaboration allows both companies to determine how to most efficiently take advantage of emerging means of propulsion and other technical applications.
Hafnia has long-standing relationships with leading global financial institutions, which, together with the company’s strong reputation, enables Hafnia to secure attractive financing regarding both structure and terms. This enhances our ability to move quickly to ensure investment opportunities.
For example, in March 2021, Hafnia signed a seven-year USD 374 million Sustainability-Linked Senior Secure Term Loan and Revolving Credit Facility (SLL), with a syndicate of 10 banks, for the purpose of refinancing existing facilities maturing in 2022 and 2023. This was our first SSL-linked facility, and one of the largest of its kind in the shipping sector. The SSL depends on our continuous improvement in emissions-related KPIs, including the IMO’s decarbonization target. As such, we engaged ESG data and research firm Sustainalytics to ensure the SLL’s structure supports our sustainability strategy and objectives.
Read more about our Partnerships and Open innovation here: Partnerships & Open innovation.