E5 Resource use and
circular economy
Impact, risk and opportunity management
Material impacts, risks and opportunities and their interaction with strategy and business model
The below impacts were identified as part of our double materiality assessment (DMA):
Impacts, risks and opportunities (IROs)
| Location in the value chain | Time Horizon | ||||||
| Upstream | Own Operations | Downstream | Short-term | Medium-term | Long-term | ||
| Waste generated in vessel operations | Negative impact | ⚫ | ⚫ | ⚫ | ⚫ | ||
| Resource use in newbuilding process | Negative impact | ⚫ | ⚫ | ⚫ | ⚫ | ||
| Waste generated in ship recycling | Potential negative impact | ⚫ | ⚫ | ⚫ | ⚫ | ||
Waste generated in vessel operations
During regular vessel operations, a significant amount of waste is produced. If this waste is not properly collected, segregated, and disposed of, it can negatively impact the environment. The waste includes both non-hazardous materials, such as plastics, cooking oil and food waste, and hazardous materials, such as defective electric equipment and paint residues. This negative impact is relevant to our own operations over the short, medium, and long term.
Resource use in newbuilding process
Newbuilding projects require substantial sourcing of raw materials, particularly for producing the steel used in vessel construction. This process involves the extraction and processing of iron ore, among other materials, which negatively impacts the environment through waste generation, and resource depletion. This negative impact is relevant to our upstream value chain over the short, medium and long-term, depending on future newbuilding activity.
Waste generated in ship recycling
Vessels reaching their expected lifetime of 30 years are typically scheduled for ship recycling. If recycling and waste disposal are not properly managed, this process can result in the release of toxic substances and contribute to the depletion of natural resources. On the other hand, responsible recycling practices ensure safe disposal of hazardous materials, reduce pollution, and promote the reuse of recycled resources. The potential negative impact is relevant to our downstream value chain over the short, medium and long term in line with our decarbonisation plan and expected recycling activity.
Policies related to resource use and circular economy
Höegh Autoliners’ group wide Environmental Policy provides clear guidelines on proper handling of waste generated during its operations, including the newbuilding and recycling activities.
The annual Environmental Focus Plan further supports this policy by detailing specific focus areas, actions, and targets, putting emphasis on our zero-waste overboard principle and green recycling. When established, relevant policies have been informed by local and international regulations such as the International Maritime Organisation MARPOL regulations, and the EU Ship Recycling Regulation (EU SRR).
Policy development and implementation are overseen and approved by the Chief Operations Officer. Leaders in the Operations department are responsible for driving these processes and initiatives. All policies are accessible to employees via our intranet.
Höegh Autoliners has implemented a comprehensive “Garbage Management Plan” that provides fleet‑wide procedures for the safe and compliant handling of waste. In addition, each vessel maintains its own vessel‑specific garbage management plan, and waste generation is continuously monitored by the Qualitative Assurance (QA) – Machinery team.
The company also maintains a dedicated “Biofouling Management Plan” , which includes vessel specific procedures for the safe handling and proper disposal of biological waste generated during hull‑cleaning and related maintenance activities. These practices are aligned with the requirements of the 2023 International Maritime Organisation (IMO) Biofouling Guidelines, which call for appropriate collection, containment and disposal of waste resulting from biofouling management activities, including hull‑cleaning residues.
Höegh Autoliners has established policies to ensure that both newbuilding activities and ship recycling are carried out responsibly and in compliance with local and international regulations. Both newbuilding yards and recycling facilities must comply with Höegh Autoliners’ “Supplier Code of Conduct” , which sets clear expectations for responsible waste management. This includes waste reduction, recycling, and the use of sustainable materials. Suppliers are also expected to consider changes in environmental regulations, take a precautionary approach, and actively monitor and minimise their impact on air, soil, and water. These requirements help ensure that shipbuilding and recycling yards manage waste and resources in a safe, compliant, and environmentally responsible manner. While we have not established a separate policy specifically addressing reduced reliance on virgin resources, these principles are embedded in our broader environmental policies.
As set out in Höegh Autoliners’ “Green Recycling Policy” , our approach to vessel recycling is aligned with the IMO 2009 Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HK Convention). The policy requires the selection of qualified recycling facilities that meet strict environmental and safety standards, ensuring that end‑of‑life vessels are dismantled in a manner that safeguards both workers and the environment. It also sets clear expectations for responsible and sustainable practices throughout the entire recycling process.
Finally, Höegh Autoliners strictly adheres to regulations governing the handling of hazardous materials, including the HK Convention and the EU SRR. The company has implemented a dedicated policy for the Inventory of Hazardous Materials (IHM) and requires each vessel to maintain vessel‑specific manuals to ensure full and consistent compliance.
Actions and resources related to resource use and circular economy
Actions related to waste generated in vessel operations
Waste segregation on board is strictly enforced under a zero-waste overboard principle, ensuring thorough collection and monitoring of generated garbage data. Only certain food waste is disposed to sea, in accordance with MARPOL regulations. The regulations also require waste to be stored in labelled, color-coded containers, and each vessel has a designated garbage management officer responsible for maintaining and recording this data. These MARPOL requirements are reviewed and assessed every five years by the class during renewal survey in which a statement of compliance with respect to MARPOL Annex V is issued.
Each vessel also has a specific garbage handling form detailing the storage capacity of garbage containers. All busted cargo hold lights on existing vessels will be replaced with LED lights, and LED lights will be installed on all newbuilds being delivered over the coming years. Further, each vessel is equipped with placards that inform the crew and passengers about the ship’s disposal requirements.
Additionally, procurement processes require chandlers and suppliers to minimize the use of plastic packaging when delivering spares and to collect plastic packaging from their deliveries as much as practically possible to reduce plastic waste. Garbage data is documented daily in a record log, along with details on how it is managed.
Actions related to newbuilding/recycling process
Shipbuilding processes are inherently resource-intensive, requiring significant amounts of steel. Once a project is scoped and agreed upon, there are limited opportunities to implement mitigating actions regarding steel usage. Consequently, no formal actions are currently in place. However, before entering future newbuilding projects, we will to a larger degree consider this negative impact and aim to reduce resource use in shipbuilding processes.
To prepare for future recycling activities, Höegh Autoliners ensures that each vessel possesses the necessary documents related to their IHM, including compliance certificates throughout the vessel’s lifetime.
Additionally, existing vessels are required to maintain their IHM Maintenance documentation during their operational life. Vessels scheduled for recycling will obtain the Ready for Recycling certificate in a timely manner.
Höegh Autoliners has not recycled any vessels during 2025.
During the year, Höegh Autoliners signed a letter of intent (LOI) with Nordic Circles to explore circular‑economy solutions for end‑of‑life vessels. The collaboration focuses on upcycling steel recovered from ship recycling and redirecting it into the construction sector to reduce emissions, minimise waste, and support long‑term decarbonisation. The timing for upcycling of vessels is yet to be determined.
Metrics and targets
Targets related to resource use and circular economy
Höegh Autoliners adheres to a fleet-wide zero-waste overboard principle and has established the following waste-related targets:
- 10% reduction on consumption of fluorescent tubes containing mercury compared to previous year figures. In 2024, 15,819 FL tubes were consumed while 1,126 FL tubes were consumed in 2025 corresponding to a 92% reduction.
- 5% year-over-year reduction in plastic waste generated onboard HTM vessels. In 2025, we recorded a plastic waste generation of 871 cubic meters from 769 cubic meters in 2024, indicating a 13% increase.
- All vessels recycled shall be compliant with IMO-IHM/EU-SRR. No vessels were recycled in 2025.
No specific targets related to resource inflow related to our newbuilding process are set.
Voluntary targets – prevention/reduction layer
-
10 %Reduction on consumption of fluorescent tubes -
5 %Year-over-year reduction in plastic waste generated onboard.
Resource inflows
The Company’s newbuilding program has progressed as planned, with three vessels delivered in 2025 and five vessels remaining in the program at the end of the year. The table below provides information of the total steel consumed as part of the newbuilding process in 2025.
Resource inflows
| 2025 | 2024 | |
|---|---|---|
| Total weight of steel consumed (MT) | 10 145 | 71 012 |
The reduction in steel consumption in 2025 compared with 2024 is expected and reflects the structure of the milestone and delivery schedule for the newbuilding program. While six vessels progressed through the relevant phase of the construction process in 2024, only one vessel did the same in 2025, resulting in a lower steel allocation for the year.
Accounting policies - Resource inflows
Metrics: Metrics disclosed in this section are used to monitor the IROs related to resource use and circular economy. These metrics are not validated by an external body other than the assurance provider.
Weight of steel consumed: Steel consumption is allocated to vessels under construction based on the achievement of relevant construction milestones, in line with each vessel’s agreed milestone and delivery schedule.
During 2025, only one vessel reached such milestones. Accordingly, steel consumption for this vessel has been allocated using its detailed design specifications and lightweight data, obtained directly from the vessel’s construction specification files.
Resource outflows
Waste generated during vessel operations is classified as either hazardous waste or non-hazardous waste and is managed through disposal at shore facilities during port calls. The table below presents the 2025 breakdown of waste from all vessels under the technical management of the Höegh Group.
In 2025, the Höegh Group operated 47 vessels, of which 35 vessels were technically managed by the Höegh Autoliners Group and 12 were managed by third parties. Waste generated by vessels not managed by Höegh Autoliners Group is not included in the reported numbers. Data is continuously reported by the Chief Officer and monitored and consolidated by the QA – machinery department.
Höegh Autoliners does not actively recycle any type of waste as part of its operations. Waste generated onboard is delivered to shore facilities during port calls, where disposal processes are managed by third parties outside the company’s control. As a result, the proportion of recyclable content in operational waste remains unknown.
Breakdown of wastes in m 3
| 2025 | 2024 | ||
|---|---|---|---|
| Diverted from disposal | |||
| Non-hazardous materials | Food waste (incinerated) | 2.0 | 1.0 |
| Food waste to sea | 138.6 | 138.1 | |
| Hazardous materials | Domestic waste (incinerated) | 167.0 | 163.4 |
| Totals diverted from disposal | 307.5 | 302.6 | |
| Directed for disposal (disposed to approved shore facility) | |||
| Non-hazardous materials | Food waste | 20.3 | 21.1 |
| Cooking oil | 16.6 | 29 | |
| Scrap iron from ER | 29.9 | 14.5 | |
| Plastics | 870.6 | 769.5 | |
| Domestic waste | 515.4 | 495.3 | |
| Hazardous materials | Aerosol cans | 1.4 | 1.2 |
| Expired pyrotechnics | 1.0 | 1.0 | |
| Incinerator ash | 22.2 | 21.1 | |
| Used batteries | 1.4 | 2.4 | |
| Paint residues | 38.6 | 16.3 | |
| Defective electrical equipment | 44.1 | 59.7 | |
| Carbon soot from economizer | 1.0 | 0.2 |
|
| Operational waste | 237.8 | 242.5 | |
| Expired medicines | 3.8 | 3.9 | |
| Totals directed for disposal | 1 804.0 | 1 676.7 | |
| Total waste generated | 2 111.6 | 1 980.0 | |
Accounting policies - Resource outflows
Metrics: Metrics disclosed in this section are used to monitor the IROs related to resource use and circular economy. These metrics are not validated by an external body other than the assurance provider.
Waste: Waste generated is reported as the sum of waste diverted from and directed for disposal, including both hazardous and non-hazardous waste. The quantity of waste disposed is recorded in the garbage record book based on the volume capacity of vessel specific garbage bins. All recorded quantity should align with the receipt from the port facility and is being verified and scrutinized by Port State Control (PSC) inspectors during inspection.
Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities
Following the reassessment of the DMA, Höegh Autoliners has concluded that there are no material risks and opportunities related to pollution. Consequently, no significant financial impacts are anticipated in short, medium, or long term in relation to this topic.
