ESRS 2 – General disclosures
Basis for preparation
General basis for preparation of the Sustainability Statements
Our Sustainability Statements have been prepared on a consolidated basis, aligning with the scope of the financial report for 2025. This report is our mandatory annual statutory sustainability reporting in accordance with chapter 2 of the Norwegian Financial Statements Act and the EU Sustainable Finance Taxonomy.
The scope of our Sustainability Statements mirrors our financial statements, ensuring consistency and comprehensive coverage of our operations and activities. Our Sustainability Statements cover both upstream and downstream aspects of our value chain. A focus is placed on our own operations and our first-tier suppliers.
All data points found in the topical standards have been subject to a double materiality assessment (DMA). A reassessment of the DMA has been performed in 2025. For a detailed description of the scope, methodology and assumptions of our DMA process, please refer to ESRS 2 IRO-1 below.
The Sustainability Statements follow the categorisation of the short-term time horizon as defined in ESRS 1, section 6.4. However, Höegh Autoliners has deviated from medium- and long-term time horizons (please refer to ESRS 2 BP-2 (9)).
No information corresponding to intellectual property, know-how or the results of innovation has been omitted from the Sustainability Statements.
Disclosures in relation to specific circumstances
Time horizons have been applied for impacts, risks, and opportunities. ESRS 1 section 6.4 defines the short-, medium- and long-term horizons for reporting purposes, where short-term is defined as 0-1 years, medium term is defined as 1-5 years and long-term is defined as more than 5 years. For 2024 and 2025, Höegh Autoliners has deviated from the defined medium- and long-term horizons as guided by ESRS 1 and has defined medium term as 1-10 years and long-term as more than 10 years.
This approach is based on Höegh Autoliners’ corporate strategy to ensure comparability between strategic periods and sustainability assessments. The rationale builds on the longer cycles in the shipping sector and a longer-term decarbonisation target by 2040. Höegh Autoliners also operates an asset base with an expected lifetime of 30 years.
Scope 3 emissions are calculated using the methodology as described in the Greenhouse Gas Protocol (Technical Guidance for Calculating Scope 3 Emissions). This involves using external proxies, such as widely recognized emission factors and sector average data. Until we can obtain accurate primary data throughout our value chain, these proxies and sector averages represent our best estimates.
For detailed accounting policies on Scope 3 data, please refer to section ESRS E1-6.
There have been no significant changes in the approach to preparing or presenting sustainability information compared to the previous year.
List of disclosure requirements incorporated by reference
| Disclosure requirement | Paragraph | Section |
|---|---|---|
| ESRS 2 GOV-1 | Composition and diversity of the administrative, management and supervisory bodies | Board of Directors |
| Executive Management | ||
| ESRS 2 GOV-3 | Integration of sustainability-related performance in incentive schemes | Remuneration report, page 6 (Available on our website) |
| ESRS 2 SBM-1 | Strategy, business model and value chain | Strategy and business |
| E1-5 | Net revenue, Note 2 in to the financial statements | Financial Statements (Note 2 - page 13) |
| E1-6 | Net revenue, Note 2 in to the financial statements | Financial Statements (Note 2 - page 13) |
In 2025, Höegh Autoliners has chosen to exercise the following phase-in provisions: ESRS 2-SBM-1 paragraph 40b-c, ESRS 2-SBM-3 paragraph 48e, E1-9, E2-6, E4-6, E5-6, S1-7, S1-8, S1-11, S1-12 and S1-14.
Governance
The role of the administrative, management and supervisory bodies
Supervisory body (Board of Directors)
Höegh Autoliners’ Board of Directors (BoD) consist of 9 members, consisting of eight directors and one deputy director. No member of our executive management serves on the board. Board members possess diverse expertise relevant to our sector, service, and geographic locations. This includes individuals with extensive experience in the shipping industry, sustainability, finance, and global market dynamics, ensuring well-rounded insights into our operations. The entire board is composed to possess strong experience and skills in the conduct of business leadership. Leveraging these skills enhances our ability to proactively manage and capitalise on opportunities associated with sustainability, contributing to our overall resilience and responsible business practices. Additionally, the members of the BoD evaluate annually its performance and expertise, including sustainability skills and expertise.
Current composition is 4 (44%) female and 5 (56%) male members. Four of the directors (44%) are independent from the Company’s major shareholders, contributing to a robust governance structure and a substantial proportion of unbiased decision-making within our unitary board. We currently do not have any employee representatives on the board. Further information on our board members can be found in the Board of Directors section.
As illustrated by our governance model, the board of directors is the supervisory body responsible for approving the Company’s overall strategy and the necessary investments to achieve our targets and goals. By approving and issuing new and revised policies, the board integrates all aspects of Höegh Autoliners’ business, including climate change and other sustainability topics. The board oversees Höegh Autoliners’ sustainability approach, monitors performance, and approves the DMA, including material impacts, risks, and opportunities. It also reviews and approves the annual Sustainability Statements.
The board maintains oversight through two sub-committees:
Oversees reporting and audit processes, including our system of internal controls and compliance with laws and regulations. In addition to monitoring regulatory reporting and the audit process, the Audit Committee’s 2025 focus included overseeing the Group’s compliance work, risk management, IT security, and its environmental, social and governance reporting processes. Additionally, the Audit Committee reviewed and assessed the DMA on behalf of the board of directors, ensuring comprehensive oversight of sustainability reporting.
Ensures thorough and independent preparation of matters relating to the governance and compensation of the Company’s executive management. During 2025, the GCC reviewed compensation elements for both staff and the Executive team, along with long-term organizational development plans, considering the shift towards achieving our sustainability goals.
In addition, the Company has established a Nomination Committee, consisting of three members elected at the annual general meeting. The board of directors has approved instructions for the committee’s work. The Nomination Committee ensures the board of directors is composed to meet the shareholders’ interests and the Company’s needs for competence, independence, and diversity. It is also responsible for proposing remuneration for the board of directors and the Nomination Committee members.
Management and administrative body (SMT)
The responsibility of defining and implementing our strategy and targets lies with our Senior Management Team (SMT). Current composition is 2 (25%) female and 6 (75%) male members. Relevant sustainability topics are assigned to their respective departments, defined, and prioritized within the framework of our four strategic priorities. This work is supported by our cross-departmental strategic projects, where each strategic project is owned and sponsored by a member of the management team, who drives the project and is responsible for the final content presented to the management team and the board. Further information can be found in the Executive Management section.
Sustainability is embedded in our strategy, represented by environmental, social and governance aspects as reported in their respective sections in these Sustainability Statements. Dedicated controls and procedures are integrated into the relevant departments to effectively manage impacts, risks, and opportunities. Integration ensures alignment with other critical internal processes, reinforcing comprehensive risk and sustainability management throughout the organisation.
Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies
Supervisory body (Board of Directors)
Throughout the year, we consistently monitor various impacts, risks, and opportunities. To ensure effective performance monitoring, we track our progress against targets and report this in our quarterly and annual reports. Updates on our performance are also reported to the Board of Directors quarterly. Health and safety are routine topics of discussion at these meetings (more details are found in ESRS S1 section). Similarly, climate-related topics, including our efforts towards achieving decarbonization goals, are frequently reviewed by our governance bodies. For additional details see ESRS E1 section. Governance topics including anti-corruption, are also addressed and discussed in the Board meetings.
The Audit Committee has been thoroughly upskilled to competently oversee the CSRD reporting process. Through targeted training sessions and workshops, committee members have enhanced their understanding of the relevant standards and requirements. This ensures they are well-equipped to provide effective oversight and guidance, aligning with the Company’s commitment to transparency and accountability in sustainability reporting.
Management and administrative body (SMT)
Management and administrative bodies evaluate the implementation of due diligence, effectiveness of policies, and the outcomes of actions, metrics, and targets. Reviews are conducted annually, with special sessions convened when significant changes occur, or new risks emerge. The Company is exploring options for quarterly reporting of impacts, risks, and opportunities to better inform discussions on strategy, major transactions, and risk management processes.
During the reporting period, both the senior management team and the Board of Directors have reviewed specific IROs related to our most material topics, including climate change, biodiversity, health and safety, and governance.
Integration of sustainability-related performance in incentive schemes
Höegh Autoliners integrates sustainability-related performance in management’s short-term incentive scheme. This aligns goal achievements with corporate objectives and sustainability ambitions, covering both environmental and social topics. For more details on this incentive scheme, please refer to our Remuneration Report available on our website.
Statement on due diligence
The following table includes a mapping of the information provided in these Sustainability Statements regarding the due diligence process.
Risk management and internal controls over sustainability reporting
The corporate reporting department is responsible for developing group-wide annual reports, including Sustainability Statements. This involves organizing and leading essential activities such as the DMA, climate-risk assessments, and data collection. These efforts are carried out in close collaboration with our cross-functional sustainability team to ensure accuracy and alignment with our strategic goals.
Gathering relevant data and information for the annual report is a continuous effort, and the process is exposed to risk of material misstatement due to human errors or missing data. To manage this risk, the Company is currently establishing relevant internal controls over sustainability reporting. This includes standardisation of definitions, calculations, and critical metrics such as emission factors in accordance with the GHG Protocol and other recognised industry standards.
The goal is to adopt a centralized reporting approach, enabling the department to act as an information hub that identifies and corrects inconsistencies or errors in data submitted by business units. Over the past years, additional resources have been allocated to enhance overall sustainability governance and reporting.
The corporate reporting department regularly informs the management team about the progress of sustainability reporting, and the management team then subsequently updates the board quarterly. The progress and performance of the Group’s sustainability reporting are reported quarterly to the Audit Committee.
Strategy
Strategy, business model and the value chain
Höegh Autoliners is a leading global provider of Roll-on Roll-off (RoRo) ocean transportation services, specializing in port-to-port transport of automobiles, mining equipment, and breakbulk cargo. We operate a global network with Pure Car and Truck Carrier (PCTC) vessels, making more than 2 000 port calls annually. Each year, we transport around 1.6 million car equivalent units (CEU) and other rolling and static cargo. Our clients range from global vehicle manufacturers to producers of heavy construction equipment and other rolling and non-rolling stock. Höegh Autoliners currently operates a fleet of around 40 Pure Car and Truck Carriers (PCTC) vessels, of which 36 are owned and 1 is chartered in on long-term.
Our vision is to lead the transition toward a near-zero emissions future for global shipping. We have clear strategic targets where we aim to reduce our carbon footprint and support the decarbonization of our customers’ supply chains by becoming the leading green PCTC operator and the preferred partner for sustainability-focused customers. Our newbuilding program for near-zero GHG emission-ready Aurora Class vessels is a cornerstone of achieving this vision. By the end of 2025, seven Aurora Class vessels are in operation, whereof four vessels were delivered in 2024 and three more delivered during 2025, with an eighth vessel scheduled for delivery early next year. Looking ahead, we are preparing to add another four near-zero capable Aurora Class vessels from 2027 onwards, all designed to run on clean ammonia straight from the yard.
Höegh Autoliners has a fully integrated global organization with significant in-house expertise in commercial and operational management, technical services, and crewing. We have 481 onshore employees and 1 282 seafarers, with 24 different nationalities, working out of 16 offices around the globe. More information about the employee characteristics can be found in section ESRS S1-6 section.
Our vision is a zero emissions future, and our ambition is to operate a fleet with net zero GHG emissions by 2040. For more details on our net-zero ambitions, please refer to ESRS E1-1.
We have defined four core strategic priorities to reach that ambition. We want to be:
- Customer centric, by delivering shipping services that create customer satisfaction and loyalty.
- Greener, by becoming the greener deep-sea operator to secure our future.
- Highly efficient, by reducing voyage costs and maintain a lean operating model to reduce unit costs.
- Digitally enabled, to leverage digital tools to improve customer experience and improve efficiencies.
Our corporate purpose and development goals are aligned with the three core sustainability pillars, Planet, People and Prosperity. To achieve our strategy and corporate purpose, all goals are cascaded throughout the organisation and assured through our integrated reporting framework.
For more details, please refer to the Strategy and Business section of our annual report.
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Coal: 0% of our business activities are related to coal extraction.
Coal: 0% of our business activities are related to coal extraction.
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Oil: 0% of our operations involve oil extraction and sales.
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Gas: 0% of our business revolves around gas production.
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We have no taxonomy-aligned economic activities related to fossil gas.
Interests and views of stakeholders
Active stakeholder engagement is a fundamental aspect of our strategy. This interaction shapes our understanding of material issues and supports solutions and initiatives that form our roadmap and sustainability commitment.
We engage across various areas of our organization, from daily operational matters and regulatory engagements to regular sales meetings. We identify key stakeholders throughout the value chain, encompassing both external stakeholders – such as customers, suppliers, investors, and regulators – and internal stakeholders, including employees and board members.
The views of our stakeholders are essential inputs both to our annual materiality assessment and continuous due diligence efforts. How we engage with key stakeholder groups, as well as the purpose and outcomes are summarized in the following table.
| Key stakeholders | How we engage | Why we engage | Examples of outcomes from engagements |
| Marketplace | |||
| Customers | Customer support and discussions in day-to-day operations | Understand our customers' expectations and requirements | Strategic partnerships for our segment leading green service offerings Development of solutions serving customer expectations and requirements |
| Tender processes and contract renewals | Provide green and sustainable solutions to assist decarbonization of their supply chains | Longer contracts with customers sharing our business philosophy | |
| Sanctions screening | Risk management, reputational protection and ensure compliance with laws and regulations | Business relationships with responsible counterparties Informed selection of customers |
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| Customer's ESG questionnaires | Understand our customers' expectations and requirements | Updated policies and procedures | |
| Suppliers | Discussions through day-to-day operations | Understanding our suppliers sustainability impacts | Sustainable sourcing of goods and services |
| Supplier questionnaires and on-site due diligence assessments | Ensure compliance with our code code of conduct throughout our supply chain | Enhance effectiveness of supplier practices and engagements | |
| Sanctions screening | Risk management, reputational protection and ensure compliance with laws and regulations | Informed selection of suppliers | |
| Workplace | |||
| Employees | Active engagement through the working environment committee (AMU) and communication through internal channels | Understand employees expectations and requirements | Action plans, improved working environment and updated internal policies and procedures |
| Yearly engagement surveys | Detect improvement areas | Action plans for improved working environment | |
| Training and upskilling | Provide our employees with necessary knowledge and understanding | Feedback with improvement points on current available training | |
| Financial community | |||
| Investors, analysts, banks, insurance | Regular investor updates | Build credibility and showcase our strategy and performance | Improved sustainability communication in all sources |
| Annual and interim reporting | Keep new and existing investors updated on performance and plans | A robust strategy to meet investors expectations |
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| Investor meetings, presentations and roadshows | Understand expectations and requirements | ||
| ESG ratings | Promote transparency towards external stakeholders | Gap analysis and plans to improve current ESG ratings | |
| Society | |||
| Governments, regulators and International policy makers | Dialogue with governments and policy makers | Identify and address climate-related transition risks and opportunities | Set our decarbonisation strategy and plans on the agenda |
| Regulatory tracking and analysis | Ensure compliance within operations and reporting | Resilient business model and strategy | |
| Media | Regular external communication in several channels | Inform and build trust among stakeholders | Good reputation among stakeholders |
| Industry and sustainability associations | Direct dialogue with industry and sustainability associations | Assist the industry to engage policymakers | Good reputation among stakeholders |
Own workforce
Our workforce plays a crucial role in shaping our commitment to a safe working environment, equal treatment and opportunities and respect of human rights. We engage with them through various channels, such as internal communications, town halls, focus groups, and surveys, to understand their experiences and perspectives. By promoting an inclusive and diverse environment, we ensure that all employees, regardless of background, have equal access to opportunities. Upholding their right to equality is essential for fostering trust.
Employees are encouraged to raise any concerns through our dedicated reporting channels, and safety-related concerns via our independent reporting system. Acknowledging their human rights is vital for building trust, as well as incorporating their views and concerns into our health & safety strategy is essential to ensure a safe working environment.
Workers in the value chain
Höegh Autoliners engages value chain workers through collaboration with suppliers, implementing human rights and ethical business policies, and conducting regular audits to ensure fair treatment and safety. An independent whistleblowing mechanism allows any stakeholder to report concerns with full confidentiality, and with the option of reporting anonymously.
Remediation processes are in place to address potential negative impacts, and supplier onboarding and risk assessments support alignment with ethical standards. These measures aim to protect the rights and well-being of value chain workers, fostering a responsible and ethical business environment.
Material impacts, risks and opportunities and their interaction with strategy and business model
The first CSRD report in 2024 was based on our initial DMA, which laid the foundation for reporting sustainability information. This process involved broad stakeholder engagement through interviews, workshops, and research to capture material impacts, risks, and opportunities. In 2025, we performed a reassessment of the DMA in line with ESRS 1 requirements. The DMA is a dynamic tool that must be updated regularly to ensure that both the process and conclusions remain appropriate and relevant for each reporting year.
The Group annually assesses material impacts and risks as part of its strategy review, evaluating the resilience of its business model over the medium term. A qualitative climate-related analysis has demonstrated the business model’s resilience with adequate measures in place.
Environmental topics are largely systemic to the industry. Among these topics, Höegh Autoliners is having the largest impact on climate change due to the nature of the business. Shipping is contributing to about 3% of total GHG emissions globally, and the industry has significant potential for climate change mitigation through decarbonisation efforts, which is why Höegh Autoliners has developed a decarbonisation plan to meet its net zero ambitions by 2040. Pollution, including air pollution and water pollution, is a systemic negative impact as part of our industry. We have not identified any material adjustments to our financial statements for this year or the next reporting period.
Biodiversity impacts are related to introduction of invasive species via ballast water and anti-fouling operations, as well as underwater radiated noise, which disturb marine species and ecosystems. Resource use and circular economy impacts arise from steel consumption in newbuilding activities and waste generated during vessel operations, with future considerations for ship recycling as part of a sustainable lifecycle approach. Höegh Autoliners’ strategy, policies, and procedures are informed by regulations from International Maritime Organization (IMO), the EU, and other bodies to maximize operational efficiency while focusing on environmental protection.
Our strategy prioritizes workforce health and safety, addressing systemic risks such as fire, adverse weather, and equipment handling. Transporting electric vehicles and using new fuels like LNG and ammonia introduce additional safety risks, requiring specialized equipment and training for safe bunkering and handling. A key positive impact is our integrated strategy, which supports long-term seafarer careers, continuity, belonging, and essential skills development through comprehensive training, assessments, and certifications.
For our value chain workers, key groups include those at yards (newbuilding and dry-docking activities), third-party seafarers on Höegh-operated vessels, and workers at recycling facilities. Addressing potential negative impacts on these workers is important for Höegh Autoliners, and our supplier due diligence processes are designed to identify and mitigate such impacts.
Being a responsible business partner is vital for Höegh Autoliners. Issues related to anti-corruption, bribery, and facilitation payments are systemic in the industry. We are members of the MACN network, promoting anti-corruption through transparency, training, and awareness programs.
All material impacts, risks, and opportunities identified during the materiality assessment are further discussed in these Sustainability Statements, alongside the relevant ESRS topics: E1 Climate Change, E2 Pollution, E4 Biodiversity and Ecosystems, E5 Resource Use and Circular Economy, S1 Own Workforce, S2 Workers in the Supply Chain, and G1 Business Conduct.
Impact, risk and opportunity management
Description of the processes to identify and assess material impacts, risks and opportunities
In 2025, Höegh Autoliners conducted a reassessment of its materiality analysis in line with ESRS requirements, building on the foundation established in 2024. The assessment forms the basis for our sustainability reporting, covering material sustainability‑related impacts, risks and opportunities across the value chain, with a primary focus on our own operations and first‑tier suppliers. The outcomes of the DMA are reflected within the relevant topical ESRS sections of this report.
We identify sustainability matters through a combined assessment of our activities, value chain and affected stakeholders. Where possible, we draw on established due‑diligence processes, such as previous year’s materiality- and human‑rights assessments, to capture relevant sustainability matters that may affect our operations or value chain.
Our assessment follows Höegh Autoliners’ internal scoring methodology, updated this year to apply a more granular 1 to 5 scale across all topics.
We assess impact materiality by scoring severity – defined by scale, scope, remediability and likelihood. Scale reflects the magnitude of an environmental or social impact; scope captures the extent of potential impact; and remediability considers how difficult or costly it is to address harms. Likelihood is scored according to the potential impacts. All four categories are scored on a scale from 1 to 5.
For risks and opportunities, we apply the same 1 to 5 scoring system to evaluate expected financial effects and their likelihood. Scoring takes place at the individual risk and opportunity level, informed by relevant internal stakeholders.
Where appropriate, we align timeframes and thresholds with Höegh Autoliners’ internal strategy and risk framework, supported by internal approval processes, due‑diligence activities and policies. Quantitative scoring is complemented with qualitative judgement as needed. A topic’s materiality is determined by its final score, and topics below the threshold are classified as non‑material. A validation workshop with key stakeholders confirms the final outcomes.
We revisit the DMA process annually to ensure it reflects evolving trends, assumptions and regulatory developments.
Stakeholder engagement is embedded in our daily operations. Internal stakeholders provide continuous input across all topics, helping identify and assess impacts, risks and opportunities. Their insights directly inform our strategy, due‑diligence processes and the DMA itself.
External perspectives, ranging from investors, lenders, customers, suppliers and regulators, are captured through regular interaction across operational and commercial processes. These ongoing touchpoints help identify actual and potential impacts, as well as sustainability‑related risks and opportunities linked to our activities and the wider value chain. This integrated approach enables us to understand the significance of these impacts, risks and opportunities for both our business and our stakeholders.
