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.

• To prevent any spills into the sea, strict handling procedures for sewage and greywater are implemented. Effective wastewater management involves raising crew awareness of relevant policies and procedures, along with specific training for spill response. All accidental and operational spills, regardless of type or quantity, must be reported immediately.

• Additionally, any malfunctions in the approved sewage treatment plants must be promptly reported to the ship’s vessel manager. Proper operation of the sewage treatment unit includes training the engine crew, maintaining adequate spare parts, and performing maintenance according to the Planned Maintenance System (PMS) and manufacturer recommendations.

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 into 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 Inventory of Hazardous Materials (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 2024.

Resource inflows

The Company’s newbuilding program has progressed as planned, with four vessels delivered in 2024 and eight 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 2024.

Resource outflows

Generated waste from ships is classified into hazardous and non-hazardous categories and is disposed of at shore facilities during port calls. The table below provides a breakdown of waste generated in 2024, including all vessels technically managed by the Höegh Group.

In 2024, the Höegh Group operated 38 vessels, of which 32 vessels were technically managed by the Höegh Autoliners Group and 6 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 HSSEQ department.

Höegh Autoliners does not actively recycle any type of waste as part of its operations. However, the company does not control the waste management processes of third parties. Consequently, the rate of recyclable content in waste generated by vessel operations and disposed of at shore facilities remains unknown.

Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities

Höegh Autoliners exercises its right, under the ESRS Phase-in allowances, to report on the anticipated financial effects (E5-6) of material resource use and circular-economy related risks and opportunities, if any, from year 2.