E4 Biodiversity
Life below sea
Strategy
Transition plan and consideration of biodiversity and ecosystems in strategy and business model
Höegh Autoliners operates in a sector that directly interacts with marine and coastal ecosystems, and our deep‑sea shipping activities have the potential to create negative impacts on biodiversity and ocean health. To address these challenges, we work to implement measures that minimize our environmental footprint and support global efforts to protect nature and life below sea.
The resilience of our business model to climate change and biodiversity loss is assessed through an evaluation of both transition and physical risks. This assessment is informed by the Taskforce on Nature related Financial Disclosures (TNFD) and considers the impacts of our operations on the marine environment, potential regulatory developments, required fleet adjustments, and future operational costs associated with stricter environmental standards. Input from internal and external stakeholders further strengthens our understanding of increasing regulatory expectations, societal demand for more sustainable shipping, and the biodiversity related impacts, risks, and opportunities that shape our long term strategic direction.
While we have not developed a dedicated biodiversity transition plan, our assessment indicates that deploying new technologies and enhancing operational practices to mitigate negative impacts – together with proactive management of emerging biodiversity‑related risks – will strengthen the long‑term resilience of our business model and reduce negative impact on the biodiversity and ecosystems. Based on our current materiality assessment, these measures are considered appropriate at this stage to address biodiversity‑ and ecosystem‑related challenges.
Material impacts, risks and opportunities and their interaction with strategy and business model
Höegh Autoliners has no operational sites located in or near biodiversity-sensitive areas. The Company operates a global fleet of vessels, primarily engaged in deep-sea shipping trades, which interacts with biodiversity-sensitive areas. Consequently, the identified impact, risk, and opportunities (IROs) are associated with our operational activities through shipping alone. The following material IROs have been identified for biodiversity. Further details on Höegh Autoliners’ double materiality assessment (DMA) process can be found under ESRS 2 – IRO 1.
Impacts, risks and opportunities (IROs)
| Location in the value chain | Time horizon | ||||||
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
| Introduction of alien species through global vessel operations | Actual negative impact | ⚫ | ⚫ | ⚫ | ⚫ | ||
| Underwater radiated noise and vibration | Actual negative impact | ⚫ | ⚫ | ⚫ | ⚫ | ||
Invasive alien species
The spread of invasive alien species (IAS) is being recognized as one of the biggest threats to both ecological and economic well-being, as well as a leading cause of biodiversity loss. It is the primary potential impact on biodiversity linked to our own operations, to be considered important in a short, medium, and long-term.
Introduction of invasive alien species through global vessel operations
The ballast water taken onboard ships contains thousands of aquatic or marine microbes, plants, and animals, which are transported across the globe. By releasing untreated ballast water at the ship’s destination, Höegh Autoliners faces risk of introducing invasive alien species into local ecosystems. These species can spread regionally over time, disrupting biodiversity, fisheries, and coastal habitats. Such impacts may pose significant long-term ecological challenges and increased biodiversity-related regulatory risks for shipping. Hull biofouling is considered to be a pathway for introducing invasive alien species, as microorganisms, plants, and algae accumulate in the ship’s hull. These species can initially disrupt local biodiversity but often spread to broader regions over time, leading to a long-term ecological damage and threatening native habitats and marine life. If Höegh Autoliners vessels lack proper anti-fouling systems (AFS) or if these systems fail, the risk of introducing invasive species increases, potentially leading to negative impacts on marine ecosystems.
Underwater radiated noise
Underwater radiated noise is increasingly recognized as a major threat to marine ecosystems, as many species rely on sound for essential activities. It represents an actual negative impact on biodiversity linked to our operations, with consequences that should be considered in the short, medium, and long-term.
Underwater radiated noise from ships
Sound is essential for marine animals, enabling them to locate food, navigate, communicate, and reproduce. However, operational noise and vibrations generated by ships – primarily from engines, propellers, and hull movement – can interfere with these essential behaviours. Prolonged exposure to such disturbances may cause stress, displacement, or even physical harm to marine species.
Impact, risk and opportunity management
Policies related to biodiversity and ecosystems
Höegh Autoliners has implemented a set of policies that govern our deep-sea shipping activities, aiming to minimize our impact on biodiversity and ecosystems. These policies are accessible to all staff via our internal intranet. Höegh Autoliners’ relevant policies around biodiversity are detailed in the following section.
The policy “Ballast Water Management Overview” provides guidelines for control and management of ships’ ballast water to address potential impact related to introducing invasive-alien species to ecosystems through ballast water. It is applicable to vessels under the US and International Maritime Organisation (IMO) ballast water requirements and ISO 14001 environment aspects. In addition to this policy, each vessel has its own “Ballast water management plan” , with specific guidelines according to its respective routes.
Höegh Autoliners’ “Biofouling Management Overview” outlines effective measures to prevent the introduction of invasive alien species through biofouling. This policy applies to vessels under the IMO MEPC 207 (62) regulation and ISO 14001 environmental standards. Additionally, vessel-specific “Biofouling Management Plans” provide detailed procedures for managing biofouling.
A vessel’s speed is directly linked to underwater noise and vibration, as reducing speed is one of the most effective ways to minimize continuous underwater radiated noise (URN). Höegh Autoliners complies to mandatory speed restrictions for vessels transiting the United States East Coast (USEC) and Canada East Coast. The “Speed Restrictions to Protect North Atlantic Right Whales policy” describes specific guidelines to vessels operating along the USEC and Canada East Coast, ensuring alignment with regulatory requirements to protect this endangered species.
Monitoring relevant biodiversity policies is a continuous process, and the policies are updated as necessary. Policy development and implementation are overseen and approved by the Chief Operations Officer, with leaders in the relevant operations departments responsible for driving the processes and initiatives outlined in the policies.
Actions and resources related to biodiversity and ecosystems
Höegh Autoliners’ has implemented specific actions to support its respective biodiversity policies. The following initiatives are implemented and guided by the requirements established by the IMO:
By implementing these actions, Höegh Autoliners aims to deliver biodiversity outcomes that ensure regulatory compliance and address the impacts of its operations, contributing to progress toward our biodiversity‑related targets. Future measures will continue to reduce existing impacts, meet international requirements, and respond to emerging regulatory developments.
No biodiversity offsets are included in our action plan. While ballast‑water treatment and high‑standard anti‑fouling paints are not based on indigenous knowledge, speed restrictions are considered a nature‑based solution. Actions are implemented in accordance with the IMO guidelines.
Metrics and targets
Targets related to biodiversity and ecosystems
Höegh Autoliners has set biodiversity‑related targets to ensure compliance with existing policies and regulatory requirements, directly supporting our efforts to address identified environmental impacts. While these targets are not formally aligned with the Kunming‑Montreal Global Biodiversity Framework, neither based on ecological thresholds, they pursue similar goals: preventing the spread of invasive species, reducing environmental impact, and protecting threatened species, including those affected by underwater radiated noise. Shaped by both regulations and stakeholder expectations, these targets aim to lower our environmental footprint and strengthen the resilience of our business model. They apply to all vessels owned and technically managed by Höegh Autoliners for the current financial year.
This target aims to minimize the occurrence of ballast water management incidents. Specifically, this means ensuring that all applicable crew members undergo necessary training and familiarization in the implementation and conducting of a ballast water management system. Further details are described in relevant policies.
In 2025, two minor BWM incidents were recorded (2024: 0), resulting in PSC deficiencies. Although these deficiencies were minor and did not lead to any vessel detentions, the Company has implemented corrective and preventive measures to strengthen compliance and minimize the risk of similar incidents occurring in the future.
All vessels in our fleet have been equipped with Ballast Water Treatment systems during the reporting year.
This target aims to minimize the occurrence of non-compliance to anti-fouling regulation, including engaging onboard management and vessel managers to ensure that the vessels’ routine procedures are in place and in accordance with the anti-fouling regulations.
In 2025 there were zero cases of non-compliance with anti-fouling regulations, consistent with the 2024 results.
This target aims to avoid potential implications related to violation to speed restrictions. This includes continuous monitoring of vessel speed in restricted areas and evaluation of alternative sailing patterns, where applicable.
In 2025 we have not reported any violation of such speed restrictions, in line with 2024.
Accounting policies - Metrics and Targets
Metrics: Metrics disclosed in this section are used to monitor the IROs related to biodiversity and ecosystems. These metrics are not validated by any external parties other than the assurance provider, and covers vessels technically managed by the Höegh Autoliners Group.
Ballast water management (BWM) incidents: Incidents resulting in PSC deficiencies, vessel delays, and/or fines due to non-compliance with ballast water management regulations.
Non-compliance with anti-fouling regulations: Incidents resulting in vessel delays and/or PSC deficiencies due to non-compliance with anti-fouling regulations.
Speed restrictions: Höegh Autoliners is required to comply with designated speed restrictions in specified marine areas. Vessel routes and speeds are continuously monitored, enabling the identification and reporting of any deviations that constitute speed‑restriction violations.
Anticipated financial effects from biodiversity and ecosystem-related risks and opportunities
Following the reassessment of DMA, Höegh Autoliners has concluded that there are no material risks and opportunities related to biodiversity and ecosystem. Consequently, no significant financial impacts are anticipated in short, medium, or long term in relation to biodiversity.
