E4 Biodiversity
Life below sea
Strategy
Transition plan and consideration of biodiversity and ecosystems in strategy and business model
Based on our assessment, we believe that implementing new technologies and operational practices to manage negative impacts and business risks will enhance the resilience of our business to biodiversity and ecosystem-related challenges.
Material impacts, risks and opportunities and their interaction with strategy and business model
Höegh Autoliners does not have sites located in or near biodiversity-sensitive areas. Consequently, the identified Impact, Risk, and Opportunities (IROs) are directly linked to our operational activities exclusively through shipping. 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.
| 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 | Potential negative impact | ⚫ | ⚫ | ⚫ | ⚫ | ||
| Risk | ⚫ | ⚫ | |||||
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 can hold thousands of aquatic or marine microbes, plants, and animals, which are then transported across the globe. By releasing untreated ballast water at the ship’s destination, Höegh Autoliners risks introducing invasive alien species into new ecosystems, which could expand to wider areas over time.
Hull biofouling is also considered to be a contributor to the introduction of invasive alien species caused by the accumulation of microorganisms, plants, and algae on the ship’s hull. Höegh Autoliners could introduce new invasive alien species by having improper anti-fouling systems, which might negatively impact ecosystems.
The introduction of Brown Marmorated Stink Bugs (BMSBs) poses a biosecurity risk due to their tendency to hitchhike. These highly mobile insects often seek shelter in cargo, vehicles, and machinery bound for the southern hemisphere, particularly Australia, during the Northern Hemisphere’s colder months. To mitigate this biosecurity risk, stronger import measures are now in place. Unwanted insects on Höegh Autoliners vessels could introduce ecological threats to new environments over time.
Potential risk for Höegh Autoliners
The introduction of invasive alien species to new ecosystems poses a biodiversity transition risk to Höegh Autoliners. This risk can lead to increased operational costs due to additional fumigation expenses and inspections, port refusals, reputational damage from delays, and potential penalties. All of these may result in negative financial consequences for Höegh Autoliners.
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 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.
The policy “Invasive Species and Pest Management” outlines the BMSB checklist and relevant treatment measures. Complementing this policy, “Höegh Autoliners’ BMSB Reporting Guidelines” provides specific instructions for the bug season (September to April) to both the crew and the internal operations Support team. These guidelines include procedures to distinguish BMSB from other stink bugs and specific reporting requirements. Both policies apply to all vessels calling at any port in Australia and New Zealand.
The monitoring of relevant biodiversity policies is conducted continuously and 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 achieve biodiversity-related outcomes that not only comply with regulations but also address the impacts of its operational activities. The outcomes are expected to contribute to the progress and the achievement of our biodiversity-related targets.
Future biodiversity-related actions will continue to mitigate existing impacts and comply with relevant international regulations. Additionally, the company will closely monitor the regulatory environment for potential new procedures and measures.
No biodiversity offsets have been incorporated into our action plan as described above. Local and indigenous knowledge, as well as nature-based solutions, are partly integrated into our preventive measures against the introduction of BMSBs to Australia and New Zealand, given their threat to agriculture and biosecurity. The treatment of ballast water and the use of high-standard antifouling paints are not based on such knowledge but are implemented in accordance with IMO guidelines.
Metrics and targets
Targets related to biodiversity and ecosystems
Höegh Autoliners has established relevant targets to ensure adherence to existing biodiversity-related policies and procedures. Each target aligns with and supports our actions to address identified impacts and risks, ensuring compliance with relevant regulations.
Our biodiversity-related targets are not informed by or aligned with the Kunming-Montreal Global Biodiversity Framework. However, they share the same objectives: reducing the introduction of invasive alien species and minimizing their impact on the environment. These targets have been informed by regulatory requirements and stakeholder expectations to reduce our environmental footprint, while at the same time enhancing resilience of our business model. They are applicable to the entire fleet operated by Höegh Autoliners and applies 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 carrying out of a ballast water management system. Further details are described in relevant policies. In 2024, we have reported zero ballast water management infractions. All vessels in our fleet have been equipped with Ballast Water Treatment systems.
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 2024, there were no cases of non-compliance with anti-fouling regulations.
This target aims to avoid implications related the identification of BMSBs. It includes engaging onboard crew and operations support handlers to ensure our policies related to invasive and pest management are being properly adhered to. In 2024, there were no port refusals due to identification of bugs, marking an improvement compared to previous year when one port refusal was reported.
Accounting policies - Metrics and Targets
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.
Targets
Our biodiversity-related targets are not informed by or aligned with the Kunming-Montreal Global Biodiversity Framework. However, they share the same objectives: reducing the introduction of invasive alien species and minimizing their impact on the environment. These targets have been informed by regulatory requirements and stakeholder expectations to reduce our environmental footprint, while at the same time enhancing resilience of our business model. They are applicable to the entire fleet operated by Höegh Autoliners and applies for the current financial year.
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.
Ballast water management (BWM) infractions: Incidents resulting in Port State Control (PSC) deficiencies, vessel delays, and/or fines due to non-compliance with ballast water management regulations. Reported metric covers vessels technically managed by the Höegh Autoliners Group.
Non-compliance with anti-fouling regulations: Incidents resulting in vessel delays and/or Port State Control (PSC) deficiencies due to non-compliance with anti-fouling regulations. Reported metric covers vessels technically managed by the Höegh Group.
Port refusals due to identification of BMSBs: Incidents resulting in port refusals due to identification of BMSBs in Australian and New Zealand ports. Reported metric covers vessels technically managed by the Höegh Autoliners Group.
Anticipated financial effects from biodiversity and ecosystem-related risks and opportunities
Höegh Autoliners exercises its right, under the ESRS Phase-in allowances, to report on the anticipated financial effects from biodiversity and ecosystem-related impacts, risks and opportunities (E4-6), if any, from year 2.
