Sustainability at Samskip

Sustainability at Samskip

Unlocking Synergies
A Conversation Between Our Chief Information Officer and Head of Sustainability
Our Sustainability Strategy
Green Logistics – Our Approach to Business
Multimodal Transportation:The One Way Ticket to Sustainable Logistics
Materiality Assessment & Results
Double Materiality Methodology
Approach to Stakeholder Engagement
Results

Unlocking Synergies

A Conversation Between Our Chief Information Officer and Head of Sustainability

When Ragnar Ragnarsson (CIO) and Pedro Vasconcellos (Head of Sustainability) talk, it’s hard to miss their excitement about the role of digitalization in sustainability and data-driven progress. Ragnar has been with Samskip for over 25 years and has seen the company grow from a single office in Reykjavik to an international leader in sustainable transport. Pedro recently joined the team as Head of Sustainability and has been working in the field for the past decade.

Ragnar and Pedro discussed the critical role that data plays in driving sustainable progress. Sustainability is not bound to a single department and, just like data collection, is a widespread practise at Samskip. Collaboration between the IT and Sustainability teams is key to achieving great sustainable progress and transparency in the value chain.

Transparency is a recurring topic in the conversation. When asked about their highest priority projects, Pedro and Ragnar talk about providing insights into the Samskip-owned assets, but also on their partners' performance. Samskip clients can be assured that their cargo is handled in a way that’s aligned with their ESG standards, which must be proven with data. To achieve this, Samskip actively works with its suppliers to obtain data on their sustainability performance, and supports them to advance and improve together.

Data governance is critical to reach Samskip's sustainability targets. Good quality data to report on all activities, fuels, internal products and services, and suppliers and contractors is vital to make lasting impact. Ragnar highlights the Digital Twin project, which creates digital replicas of Samskip's vessel fleet to anticipates the impact of factors like sailing speed, weather, and routing on energy efficiency; all to reduce CO2. While this data-driven decision-making approach is not yet the case for the full company, both Pedro and Ragnar agree that they’re on track to get there in the future.

Pedro emphasizes the importance of reporting sustainability information to clients and mentions the upcoming CSRD and EU ETS regulations, which require validation of carbon reductions. He is developing a top-notch carbon footprinting tool to give insight into the carbon footprint per asset, to start reducing CO2 effectively, avoiding future costs. Samskip will offer clients information on CO2 per order based on GLEC-standards, and develop digital solutions that will allow clients to further reduce their emissions by working with Samskip.

Ragnar and Pedro both strongly believe that these new regulations will benefit their clients, as Samskip is a frontrunner on sustainability and very vocal about it. Working with Samskip will mean a lower risk for clients as well, as Samskip is supporting the sustainability strategies of its clients. With people like Ragnar and Pedro, Samskip is leading the way towards sustainable progress, transparency, and collaboration.

Left, Ragnar Thor Ragnarsson (CIO) and right, Pedro Vasconcellos (Head of Sustainability)

Our Sustainability Strategy

Our sustainability strategy and our approach to logistics go hand in hand. We are pushing multimodal transportation forward as the solution for sustainable logistics by taking clear decisions incorporating sustainability and establishing a credible, coherent, and flexible strategy.

We want our approach to:

  • Be consistent across every pillar of sustainability. People, the environment, ethical conduct: nothing is left ashore.
  • Make the path between strategic goals and sustainability performance as straightforward as possible. We want our stakeholders to be able to witness the concrete results of our actions.

With the above in mind, we are present our overarching goals below, which are made concrete and strengthened with SMART targets. Throughout the report, we will provide further details on our approach to achieving these goals, what actions we have taken or are planning to take, and what progress we have made so far.

1. Decrease the carbon intensity of our activities

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Our targets

We have committed to setting near-term and net-zero emissions reduction targets, by:

  • Reducing absolute emissions by 50% by 2030.
  • Getting to net-zero emissions by 2040.
  • Transitioning to 100% of electricity consumption from renewable sources by 2025.
Our measures
  • We have committed to the Science Based Targets initiative, which validates the alignment of companies targets to decrease their emissions with the goals of the Paris Agreement of limiting global warming to well below 2°C compared to pre-industrial levels. 
  • We are a signatory of the Net-Zero standard and have committed to the more ambitious goal of 1.5°C. 
  • We have LNG and biofuel certified vessels and trucks.
  • We have optimised our logistical processes and our fleet management through digitalisation.
Our strategies
  • We are limiting our energy consumption and associated carbon emissions of our economic development through sustainable practices and energy efficiency.
  • We are developing other innovative shipping solutions that will utilise creative energy-saving technology and renewable alternative fuels.
  • We are purchasing certified renewable electricity.
Our performance measurement

CO2e emissions scope 1 & 2, energy consumption, renewable energy consumption/production.

2. Create and offer low-to-zero emission freight transport services to our customers

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Our targets

We endorse our responsibility as a major lever of CO2 emissions reduction for our customers by:

  • Decrease our annual CO2 footprint by 10% by 2023 compared to 2020 baseline
  • Decrease our CO2e footprint by 20% by 2025 compared to 2020 baseline
  • Decrease our annual CO2 footprint by 50% by 2030 compared to 2020 baseline
  • Reach net-zero emissions by 2040
Our measures
  • We have developed a route carbon footprint calculator available to everyone on our website.
  • We have aligned our carbon footprinting system to international standards, such as the GLEC, Clean Cargo, and GHG Protocol frameworks.
  • We transparently share our emissions data with external stakeholders.
Our strategies
  • We are developing our tailored offer for low-to-zero emission shipping. This will include the development of a mass-balancing system, which will allow us to optimise the procurement of alternative fuels and maximise the utility and distribution of low-emission services across our network.
Our performance measurement

CO2e emissions per tonne-km.

3. Build a company culture that promotes and celebrates sustainability

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Our targets

We want to promote a verified sustainability management system by:

  • Receiving the EcoVadis Platinum certification by 2025. This would put us in the top 1% of most sustainable companies within our industry, defined by EcoVadis as postal courier and multimodal freight transport activities.
  • Implementing management systems aligned with international standards and at the service of the environment, the people, business ethics and information security for 100% of our operations.
Our measures
  • We have created a culture where all employees actively add to our transition from the bottom-up.
  • We have proactively collected feedback though our periodical workforce surveys to better integrate employees' experience in our decision-making.
  • We have developed a learning management system, the Samskip Academy.
  • We have an employee code of conduct and have trained them in our values and the principles of fair business conduct.
Our strategies
  • We are quantifying the results of our engagement surveys to improve our processes and our employee well-being.
  • We are increasing the visibility of leadership with our Better Samskip rooms in the larger international offices in Rotterdam and Reykjavik.
  • We are engaging with the communities around us, providing support and ensuring the engagement necessary to understand the impact of our business operations. 
Our performance measurement

Turnover rate, satisfaction survey results.

Green Logistics – Our Approach to Business

Multimodal Transportation: The One-Way Ticket to Sustainable Logistics

Sustainable logistics – the key to transporting goods in a way that is more environmentally and socially friendly. 

How can we achieve this? The answer lies in multimodal transport systems, which optimise the advantages of each method of transport to minimise environmental impact, while still meeting our customer’s expectations of quality and efficiency. 

By integrating sustainability criteria, such as the carbon intensity of each mode of transport, we can determine the best choice for reducing our environmental footprint while remaining cost-effective. Multimodal transport also addresses the issue of cost and pricing barriers for sustainable transport, making it more accessible to a wider range of customers. 

Ultimately, sustainable multimodal transport will support the cargo transportation sector's sustainable goals by, among other things:

  • Reducing carbon footprint of the transport order.
  • Reducing particle emissions in urban areas.
  • Reduce noise pollution
  • Helping rationalise new sustainable infrastructure.
  • Making the processes safer for workers.
  • Reducing the potential for accidents.
  • Proposing appropriate modes to reduce energy consumption and carbon emissions as well as sustainable transportation costs.
  • Promoting off-road transport to reduce road congestion and providing alternatives such as trains or barges.
  • Increasing flexibility, frequency, and quality of service offerings.
  • Delivering cargo on time and in shape.
We move towards making logistics sustainable by making multimodal transportation easy!
 

By moving as much cargo off the road as possible, we can eliminate up to 80% of transportation related CO2e emissions!

We added two new train routes in 2022 to substitute road transport with rail transport. In addition, the trains used are fully electric, considerably reducing our direct emissions.

Transport modes (kg CO2/ton km GCD)

Materiality Assessment & Results

Double Materiality Methodology

Having a solid understanding of the most material issues is vital in the formulations of a holistic sustainability strategy. This is why we continue to adapt our perspective on materiality, making sure to revise the topics that matter most on a regular basis. In 2021 we conducted our first ever materiality analysis, that covered all entities under Samskip BV and ensured that every stakeholder was represented. In 2022, we have taken this further, and conducted a full double materiality assessment based on the ESRS European Sustainability Reporting Standards methodology. We performed an analysis of the risk and opportunities that various environmental, social, and governance topics hold for Samskip from an impact perspective and from a financial viability perspective. 

Methodology

1. Topic Identification

Collection of 89 separate Environmental, Social, and Governance (ESG) topics that were evaluated through value chain mapping of upstream and downstream activities. 

2. Topic Evaluation & Scoring

Assessment of all topics regarding their positive and negative impact materiality a positive and negative financial risk. Topics were scored on their actual and potential materiality through their individual scale, scope, and remediability.

3. Interview

With support from an external consultancy, conducted 10 interviews with stakeholder group representatives from industry associations, governments, clients, and suppliers.

4. Validation & Prioritisation

Finalising a short list of 9 overarching material sustainability topics.

Approach to Stakeholder Engagement

If we want to get the full scope of the financial and impact materiality of Samskip, we need to incorporate the views of all the stakeholders who impact and are impacted by our work. This is not an easy feat, but we collected diverse stakeholder groups to interview who are involved with Samskip in several ways. We were able to bring the voices of 10 stakeholder groups forward (see image below), from customers to local communities, ensuring that our assessment captures the perspectives of those who impact and are impacted by Samskip’s operations. In doing this, we get a clearer and more complete picture of how we are doing and how we can improve.

Customers
Trade partners/suppliers (transport, terminal & Investment Funds/Banks)
General public
Workforce office
Workforce non-office
Social partners & labour unions
NGOs
Industry associations (top sector logistiek, KVNR)
Government
Local communities

Results

Key perceptions of stakeholders towards Samskip’s position/relation to ESG, were that:

1.

Samskip is ambitious and a frontrunner on the environmental side considering its innovations related to vessels and biofuels. 

2.

Samskip is ahead of peers when looking at working conditions on board and in relation to compliance of laws. 

3.

The highest risk/underestimated element of Samskip is employee engagement and culture (perceived as having a high retention rate and lacking sustainability knowledge across the employee base).

Environmental

Climate Change

As a logistics company, Samskip is mindful of the impact our operations and supply chain have on the environment. We aim to reduce greenhouse gas emissions (Scope 1, 2, and 3) by minimising our energy use and implementing measures to mitigate and adapt to climate risks, exploring new technologies and renewable energy opportunities.

Environmental

Pollution

Samskip recognises the importance of minimising the impact on the environment and human health in the logistics industry. Our goal is to promote sustainable practices that protect natural resources and minimise pollution in our upstream value chain.

Environmental

Biodiversity

We recognise the importance of promoting sustainable practices that support biodiversity and natural resources. We are committed to minimising our impact on biodiversity and ecosystem services by taking measures to reduce, rehabilitate, and restore the ecosystems we have impact on.

Environmental

Resource Use and Circular Economy

As a logistics company, we recognise the importance of resource efficiency and waste reduction. We are committed to innovating with renewable materials and exploring ways to reduce, reuse, and recycle materials and waste in our whole value chain.

Social

Social and Economic Inclusion

Samskip is committed to promoting social and economic equality and inclusion for our workforce and third-party workers. We believe that promoting equal compensation, representation, and opportunities regardless of gender or background is essential for any business.

Social

Human and Labour Rights

We are committed to promoting and protecting the fundamental human and labour rights of our employees and everyone working in our value chain. We believe that basic living conditions are vital for people, and we aim to provide safe and fair working conditions for all.

Social

Health and Safety

Samskip recognises the importance of promoting a healthy and safe working environment for our employees and contractors. We are committed to ensuring safe operations and protecting the physical and mental well-being of our workforce and contractors.

Social

Employee Engagement

We value our employees and recognise the importance of attracting and retaining talented professionals. We believe that investing in the technical and professional skills of our workforce is key to our success. We provide training and education to support the future-proofing of our workforce, and we aim to create a positive and supportive working environment.

Governance

Responsible Business

At Samskip, we believe that conducting our business ethically and responsibly is essential to our long-term success. We have policies and practices in place that promote ethical behaviour and decision-making, protect sensitive data, and mitigate financial risks. We also encourage open communication and feedback from our stakeholders to ensure we meet their expectations and positively contribute to society. We recognise that we rely on many suppliers and partners in our day-to-day operations, and we hold ourselves accountable for their conduct as well.

Introduction
Our Planet
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