SUSTAINABILITY REPORT 2024
A record number of hybrid express boats added to the fleet
In 2024, 1 hybrid-electric ferry and 8 hybrid-electric express boats were delivered. Seven were new-builds and two were retrofitted. Norled's commitment to hybrid-electric express boats is significant, and we plan to implement a brand-new battery swapping technology to operate some of these vessels. The new express boats represent a major technological advancement, building on Norled's history as a pioneer in emission reductions, such as the world's first all-electric ferry and the world's first ferry powered by liquid hydrogen.
Challenges and delays related to the development and delivery of the low-emission vessels and battery swapping technology have led Norled to use a number of temporary vessels running on diesel to maintain a good service offer to our passengers. Unfortunately, this is reflected in our emission figures, which have increased compared to 2023. We expect emissions to gradually decrease as new technology and new vessels are phased in.
Norled's long-term strategy to increase the proportion of low- and zero-emission vessels in the fleet remains unchanged. We believe that reduced emissions over time are necessary for express boats to continue being important links for the coastal communities we serve.
Rannveig Drengstig Chief Executive Officer (CEO)
In the spring of 2022, Norled's sustainability program was launched. The goals and vision set forth are to ensure that we work purposefully with sustainability.
We have four focus areas for our work. Additionally, we have linked and integrated these focus areas with the UN's Sustainable Development Goals and Norled's overall strategic plan - all to ensure that sustainability is a natural and fully integrated part of Norled's operations.
This is clearly reflected in our vision:
Norled shall deliver the best travel experiences through innovative and sustainable solutions and proud employees.
Sustainability is an integrated part of our operations, strategy, and plans. We aim to reduce our CO2 emissions by 67% by 2030 by increasing the proportion of low- and zero-emission vessels in the fleet from 4% in 2019 to 65% by 2030. We will achieve this by collaborating with strategic partners in propulsion systems, automation, and energy carriers.
We are well on track to reach this goal, as by the end of 2024, we had 45% ferries and 34% express boats that are low- and zero-emission vessels. We will also work to attract more women to the industry, with a goal of 50% representation in the land organization and 30% in the sea organization by 2030. We have achieved 50% representation of women in leadership positions, but still have a way to go in terms of the proportion of women on the board and in the sea organization. By 2040, we have an ambition to be a zero-emission company.
Photo: Norled AS, Gøril Sætre, Norled, LMG Marin Design: Apriil
Climate and the environment
Norled will be a leader in sustainable maritime solutions
Norled has a long and proud tradition of finding sustainable solutions for ferries and express boats. We aim to strengthen this by:
→ Reducing CO2 emissions by 67% by 2030 (from the 2019 baseline).
→ Increasing the proportion of low- and zero-emission vessels in the fleet from 4% in 2019 to 65% by 2030.
→ Being a net-zero emissions company by 2040.
→ Mapping risks related to climate change and new regulations on climate and environment to operate Norled in the best possible way.
Our two largest waste handlers have together sorted 111 out of a total of 327 tons of waste, which constitutes 34%. Some ports have not been able to provide the sorting rate.
Increasing the completeness of Norled’s GHG accounting with Scope 3
The 2024 report includes Norled’s inaugural reporting of Scope 3 emissions focused on our supply chain. This marks a milestone for our company and increases the completeness of Norled’s GHG accounting and emissions baselining, in line with the ambitions of our Sustainability Program. Norled's Scope 3 calculation and reporting is aligned with the GHG Protocol and based on the spend-based methodology, applying environmentally extended input-output (EEIO) emission factors to procurement data. Such screening method allows Norled to estimate emissions and identify the largest contributors within upstream Scope 3 categories, thus supporting the prioritization and subsequent targeting of high-impact suppliers and procurement categories for further data collection and reduction efforts.
*Scope 3 means all other indirect emissions across the value chain, including upstream and downstream activities, categorized into 15 categories as outlined by the GHG Protocol Scope 3 Standard
People and society
We put safety first and invest in maritime expertise
→ We prioritize safety and focus on maritime competence.
→ Norled aims to be a leader in safety, both for people and vessels.
→ Norled will work to attract more women to the industry.
→ We have a goal of 50% women on the board and in leadership positions, and to increase the proportion of women in the company to 30% by 2030.
→ Norled will work to reduce serious incidents and keep injury absence below 3.5%.
→ Norled will work to strengthen internal competence in relevant fields.
→ Despite an increase in passenger injuries, we at Norled have a clear focus on safety and continuously work on safety measures.
Results for 2024
FOCUS AREAS
Value creation
We are the preferred partner for new, green solutions
→ Norled is a frontrunner in developing climate- and nature-friendly technology in the sector by being the preferred partner for new concepts and collaborations in development.
→ Norled will strengthen collaboration with strategic partners in propulsion systems, automation, and energy carriers.
→ Norled will win more tenders with an environmental focus.
Results for 2024
Significant increase in low- and zero-emission ferries and express boats
From 2023 to 2024, the proportion of zero- and low-emission express boats in the fleet increased from 27% to 34%. The proportion of zero- and low-emission ferries increased from 44% to 45% between 2023 and 2024. This is clear evidence of Norled's strong commitment to low- and zero-emission vessels. By gradually introducing low- and zero-emission vessels, we will ensure continuous reduction of our emissions towards 2040.
2024 was marked by high activity in further developing the battery swapping robot for express boats, SHIFTR, in addition to facilitating other charging infrastructure on land to enable more hybrid-electric operation of fast ferries. New electric express boats were delivered, and other express boats were converted from diesel operation to hybrid-electric operation. Work continues to facilitate and put these into full operation.
M/S Baronessen converted and upgraded to hybrid-electric operation
In the autumn of 2024, M/S Baronessen sailed from the shipyard at Brødrene Aa in Eikefjorden to the Oslofjord after being converted to battery-electric operation. In connection with electrification, the boat received a new hull, extended by 10 meters, and underwent a major restoration of passenger and crew facilities. Sister vessel M/S Baronen is also under conversion. The vessels are converted to sail battery-electric. Eventually, both vessels will use the battery swapping robot SHIFTR.
Baronen will have three battery packs on deck, while Baronessen will have two. During the minutes the boats are docked, the batteries will be swapped using the battery swapping robot SHIFTR. Until the battery robots are installed, the operation will be based on a combination of battery and diesel operation, or pure diesel operation. These are important steps in Ruter and Norled's collaboration to make fast ferries ready for battery-electric operation.
About SHIFTR
The SHIFTR robot is the first of its kind in the world. It has a crane that lifts batteries in and out of fast ferries within minutes while passengers board and disembark. On land, the batteries are set to charge in a magazine. This means that charging can take place gradually over time. Everything is automated, and the robot is designed to withstand rough conditions, including wind, waves, and tides.
Norled has proven that ferry operation on liquid hydrogen is possible
In 2024, Norled operated the hybrid vessel M/F Hydra on liquid hydrogen and battery-electric operation. The vessel, which started service in 2023, marked a solid first year of operation with liquid hydrogen in 2024. After over a year of stable operation, with 20,000 crossings, we tested hydrogen bunkering on MF Hydra. It is getting faster and faster - in about an hour, the vessel is filled with enough LH2 to sail for two weeks.
M/F Hydra is a pilot project where Norled, on behalf of the Norwegian Public Roads Administration, has put the world's first vessel on liquid hydrogen into operation. Regulations related to the use of liquid hydrogen have been developed by Norled together with several others and are available for other operators who want to use liquid hydrogen. The experience gained from the first year of regular operation will hopefully be useful for other operators considering using liquid hydrogen on vessels where electric operation is not a possibility.
FOCUS AREAS
Three hybrid vessels delivered and in service in Sogn and Florø
From May 1st, Norled has been operating three hybrid vessels in what is referred to as Sogn Route Package 2. The contract has ambitious goals related to CO2 emissions. The vessels M/S Frey, M/S Trym, and M/F Lysefjord were put into service. M/F Lysefjord has been converted to hybrid-electric operation, while the other two are new builds specifically designed for the route. Additionally, our subcontractor Florø Skyssbåt introduced the new hybrid fast ferry M/S Dragning into the route.
Norled aims to introduce a completely new charging technology that enables emission reductions on these routes.
The charging infrastructure was not yet in place in 2024, so the vessels operated on biodiesel while work was done to arrange charging access so that we can switch to battery operation as soon as possible.
Norled builds Norway's largest battery ferries for the Stokkvågen-Træna route
In 2024, construction began on four new ferries for the Stokkvågen-Lovund-Træna route in Nordland.
The introduction of the new vessels will reduce emissions on the route by 90 percent when they are put into operation. Three new battery-hybrid ferries will enter the route in 2027. A fourth ferry will serve as a reserve vessel. The battery capacity for each of the ferries is approximately 8000 kWh, making them the ferries with the largest battery capacity in Norway. This proves that it is possible to travel long distances and in rough waters with battery operation.
Governance principles
Sustainability is integrated into our operations, strategy, and plans, and we are transparent about what we do
→ Norled reports climate accounts in accordance with applicable regulations and is transparent about our figures and ambitions.
→ Sustainability is incorporated into the company's governance principles.
→ Norled will work systematically to be able to report on sustainability goals and in accordance with standards for these; especially the GRESB standard.
Results for 2024
Norled is maintaining high scoring in GRESB
Norled has doubled its GRESB score from 47 points out of 100 in 2021 to 94 points out of 100 in 2024.
From 2022 to 2024, Norled has maintained a stable score of over 90 points each year. Norled is working to make the industry greener and reduce our emissions, but to talk about sustainability and green solutions, the documentation must also be in place.
"These are fantastic results and show that it pays off to organize sustainability work in a good way. In 2021, we developed a sustainability strategy and a sustainability program that we are now working towards. We have an internal working group that has put in a lot of effort to achieve these results, and many employees in the organization have contributed to the process," says Chief Commercial Director Lars Inge Vågen, who is responsible for sustainability at Norled.
GRESB is a global sustainability benchmark for real assets, which provides a rigorous methodology and consistent framework to measure the ESG performance of individual assets and portfolios, on the basis of self-reported data. Norled completes the infrastructure assessment, which is aligned with the Sustainable Development Goals, the Paris Climate Agreement and major international reporting frameworks. The benchmark evolves over time, ensuring that scores reflect relative performance and evolving sustainability expectations.
FOCUS AREAS
Norled prepares for Corporate Sustainability Reporting Directive (CSRD) reporting.
At the end of 2024, Norled completed the first phase in preparation for CSRD reporting. CSRD is the EU's new directive on sustainability reporting. The new EU directive imposes higher requirements for reporting sustainability information than the current regulations. The new directive will require sustainability reporting to be in line with a new European standard. The first phase focused on double materiality analysis, which is the basis for further work with CSRD. The analysis aims to identify which sustainability topics are most relevant based on Norled's operations, value chain, and stakeholders. The work on the double materiality analysis was completed with a report before the end of the year, and the next phase, which concerns data gap analysis, is well underway.
The work to prepare Norled for CSRD reporting was led by our Sustainability Manager.
Transparency Act
The new Transparency Act aims to promote companies' respect for human rights and decent working conditions, as well as ensure public access to information. It came into force on July 1, 2022.
Norled has developed a system for handling questions about how we safeguard human rights and decent conditions. Questions can be sent to a dedicated email address: apenhet@norled.no.
As part of the follow-up to the Transparency Act, Norled has conducted due diligence assessments of selected suppliers, as well as an assessment of internal work. The results were published on our website. We will continue our work in line with the requirements in the Transparency Act.
Norled’s contributions to the UN’s Sustainable Development Goals
The UN Sustainable Development Goals (SDGs) are integrated into Norled’s sustainability work. All SDGs are equally important and are interrelated. Nevertheless, we see that we can have a positive influence on certain SDGs that are more relevant to our industry. We have linked our focus areas to ten SDGs: 5, 8, 9, 11, 12, 13, 14, 15, 16 and 17.
We are implementing measures related to all SDGs, but we have chosen to highlight Norled’s efforts with respect to four of them: 5, 9, 11 and 13.
Gender equality
→ Goal
Achieve gender equality and empower all women and girls.
→ Targets
Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.
→ Why
The maritime industry and Norled are currently competing for talent in a labour market where maritime expertise is in short supply. Norled needs bright minds, skilled hands and people who are extremely service-minded. To attract and retain employees, we must not overlook women. We need to encourage and highlight the opportunities available to them. We firmly believe that diversity benefits both the company and our employees.
→ How – Norled’s specific targets
• Norled will work to attract more women into the industry
• We aim to have 50 per cent female representation on the Board of Directors and in leadership positions, with 30 per cent of the workforce being women by 2030.
Industry, innovation and infrastructure
→ Goal
Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation.
→ Targets
By 2030, upgrade infrastructure and transform industries to become more sustainable, with more efficient use of resources and broader adoption of clean and environmentally friendly technologies and industrial processes, with all countries contributing according to their ability and capacity.
→ Why
Innovation is in Norled’s DNA, particularly when it comes to new, environmentally friendly solutions. We have pushed boundaries before and will continue to do so in order to offer better and more sustainable solutions for the future. At the same time, innovation and new thinking are essential if we are to compete successfully with other players in the market. We also see many opportunities related to the circular economy and the reuse of vessels. This could be profitable for Norled, but it is also necessary to make the industry more sustainable.
(Infrastructure is the underlying structure that must be in place for a society to function. Investments in transport, irrigation systems, energy and information technology are essential for achieving sustainable development.)
→ How – Norled’s specific targets
• Implement new, environmentally friendly technology and solutions for ferries and express boats.
• Introduce low- and zero-emission vessels that can offer sea transport in areas with heavy road congestion.
Sustainable cities and communities
→ Goal
Make cities and human settlement inclusive, safe, resilient and sustainable.
→ Targets
By 2030, ensure that everyone has access to safe, accessible and sustainable transport systems at an affordable cost, and improve road safety, particularly by facilitating public transport and focusing on the needs of vulnerable groups, including women, children, persons with disabilities and the elderly.
→ Why
Norled has a key societal role associated with safe, accessible and sustainable transport along the coast of Norway. We will provide safe transport for passengers and employees. High traffic volumes and frequent departures in varying weather conditions require continuous efforts to understand risk and implement safety measures.
→ How – Norled’s specific targets
• Prioritise new contracts with an environmental focus.
• Work continuously to avoid safety incidents aboard our vessels.
Climate action
→ Goal
Take urgent action to combat climate change and its impacts.
→ Targets
• Integrate measures to address climate change into policies, strategies and planning at the national level.
• Strengthen the capacity to withstand and adapt to climate-related hazards and natural disasters in all countries.
→ Why
The shipping and fishing industries accounted for 7.5 per cent of Norway’s greenhouse gas emissions in 2020. Emissions increased from approximately 2.5 million tonnes of CO2 equivalents around 1990 to about 4 million tonnes of CO2 equivalents by the turn of the millennium. Since then, emissions have stabilised at around 3.5 million tonnes of CO2 equivalents.
The ferry sector in Norway could become emission-free by 2030 if authorities follow through as expected with zero-emission requirements in all tenders starting in 2023. Norled has been a leader in this transition, introducing the world’s first electric ferry, the MF “Ampere”. By 2024, Norway is expected to have approximately 92 electric ferries.
Our express boats predominantly use diesel and are our largest emitters of greenhouse gases. Transitioning them to low- and zero-emission propulsion systems is therefore essential. Norled has introduced a new battery-swapping system for express boats as a solution that could be adopted by the entire industry.
*Miljøstatus.miljødirektoratet.no
→ How – Norled’s specific targets
• Cut 67 per cent of our CO2 emissions by 2030.
• Be a net-zero company by 2040.
• Increase our proportion of low- and zero-emission vessels from 4 per cent to 65 per cent by 2030.