Our commitment

Sustainability is high on our agenda, and we firmly acknowledge our responsibility to drive the sustainability agenda through the development of our operations. Our core mission is to transition to a carbon-free energy future by supplying innovative and reliable floating infrastructure solutions, create value for customers, shareholders, employees, and the local communities in which we operate, including reducing our climate impact. We believe responsible business is fundamental to becoming a sustainable business. To Höegh LNG, sustainability is just good business. To make a positive contribution, manage risks and lead by example, we prioritize and focus on the key sustainability issues that are most relevant to us and our stakeholders. We have prioritised six Sustainable Development Goals (SDGs) where we believe we can have the most positive impact.

Highlights

Annual Efficieny Ratio
65%

CO2 Emissions Reduction

Reduction per tonne of gas send-out

Organic waste
11%

Plastic waste

Reduction across fleet

Safety
0

Lost-time injury (LTI)

Zero LTI on vessels

Industry leader
5

Top ESG performance

Five-star GRESB rating

Gender equality

Diversity

1st Female chief officer

Shield
100%

Compliance training

Completion of e-learning courses by employees

Sustainability Reports

Our climate actions

Reducing GHG emissions represents an important opportunity to improve environmental performance, cut costs and drive business development. We have set an ambitious goal of reducing our total CO2 emissions by 50% by 2030, with a 2020 baseline.

All engines run on natural gas, which results in the lowest CO2 emissions of all commercially available marine fuels. We have also significantly reduced emissions by applying energy efficiency solutions and are continuing to develop and implement technological innovations on our vessel to reduce emissions.

We have implemented energy efficiency management plans for all our assets to monitor fuel consumption and share data with charterers. Our main efforts consist of configuring power production machinery, cargo management and keeping a close eye on hull performance. We also seek to reduce the boil-off gas from LNG cargo tanks through technical modifications and optimised operations.

Climate Action

Overall climate ambitions

  • Reduce carbon emissions with 30% by 2025
  • Reduce total carbon emissions by 50% within 2030 (2020 baseline)
  • Reduce carbon intensity by 40% within 2030 (2020 baseline)
  • Net zero by 2050

CO2 emissions (metric tonnes)

Climate Action Climate Action

TBC

Climate Action Baseline Climate Action Baseline

Our corporate governing documents

Garbage generated in 2022

Our environmental impact

Our goal is always to limit any negative impact our operations might have on the environment and biodiversity. We have specific focus on marine ecosystems and work continuously to minimise the risk of spills while reducing discharge of excess biocides and cooling water. All new FSRUs since 2011 are equipped with ballast-water treatment and anti-fouling systems. Preventing spills to sea is anchored in our policies.

An environmental and social impact assessment is conducted for all new terminals. We continuously monitor our performance to make sure we are prepared for any changes to environmental guidelines and regulations

All our vessels are certified in accordance with ISO 14001, the internationally recognised standard for environmental management systems. All FSRUs built after 2012 have an environmental class notation for ships designed, built, and operated to high environmental standards.

Waste management is an important part of limiting negative environmental impact. Our policy is zero waste to sea, and Höegh LNG is going over and beyond regulations to protect the oceans from waste and pollution. We have a strict garbage disposal policy stating that only organic waste can be discharged overboard, and no closer than 12 nautical miles from land.

Highlights 2022

  • Modification of grey water and clean condensate system onboard 3 of our FSRUs
  • Replaced reusable drinking water bottles on one FSRU 
  • Plastic waste reduction by 11% in the fleet 
  • Domestic waste reduction by 18% in the fleet 

Ambitions

  • Have zero negative incidents with impact on oceans and local ecosystems

Focus areas and targets 2023

  • Implement a pilot food digestive system to reduce food waste
  • Continue program to replace plastic water bottles on board vessels
  • Implement recycling process of electronic equipment on board vessels
  • Install grey water volume reduction system on remaining FSRU

Generated waste in our fleet 2022 - Four top categories

Garbage generated Garbage generated

Our corporate governing documents

  • Environmental Policy
  • Fleet Operational Performance Monitoring Functional Policy
  • Ship Recycling Policy

Safeguarding our people and assets

Maintaining safe operations and minimising risk is the number one priority for Höegh LNG and is anchored in our occupational health, safety and working environment policy. We aspire to achieve zero harm to people and the environment and believe all incidents can and should be prevented.

Decent Work

The occupational health and safety management system covers all activities and operations on board our vessels and is applicable to all employees, visitors, clients and external service personnel. All vessel operations are certified to the IMO ISM code.

Our seafarers are involved in improving HSEQ performance and working conditions on board through participation in monthly safety meetings, safety campaigns and conferences. In addition, the health and well-being of our seafarers are ensured by annual, mandatory medical checks, the onboard availability of medical competence and equipment, as well as a welfare budget.

The health and safety standards we follow are based on risk management principles and focus on identifying hazards through a combination of experience, industry guidelines and requirements, as well as a structured hazard identification process.

Highlights 2022

  • 0 lost time incidents (LTI).
  • Increased awareness of the evolving and challenging cyber threat picture.
  • After the easing of COVID-19 restrictions, vessel visits and inspections have resumed to their normal state.
  • Performed Booz Allen cyber security assessment.
  • Implemented cyber security framework.

Ambitions

  • Ensure a visible culture that promotes safety and human rights
  • Zero harm to our personnel.
  • Ensure all our employees and suppliers return safely to their family after finishing work.

Focus areas and targets 2023

  • Implementation of Safer Together, Safety Program which will run from 2023-2025.​
  • Introduce Positive Safety Logbooks onboard​.
  • Role-based cyber security awareness training.

Lost time injury and total recordable incidents frequency (per million hours)

Climate Action Climate Action

Our corporate governing documents

  • HSE Policy
Decent Work and reduced inequalities

Our people - the key to success

Our people are key to the success of our business as they impact every part of it. We believe that diversity and inclusion are a source of competitive advantage and that employees from a range of backgrounds, working together and respecting one another’s values, reflects the world that we want to live in and leads to even better business results. 

We are working towards our goal of reaching 40% female employees onshore by 2025, with this gender balance also reflected in our leadership levels.

Our recruitment base, particularly for maritime personnel, is predominantly male and this is reflected in our global demographics. In 2022, women accounted for 11 of 680 maritime personnel (Marpers) and 71 of our 192 onshore employees. Women currently account for ~30% of the total onshore employees based in Norway. 

We have a truly varied group of employees in terms of age, nationality, and ethnicity, which really contribute to and strengthen our company culture. We strive to work with diversity, equity and inclusion through a systematic approach that looks at all our people processes as well as our workplace and culture.

Highlights 2022

  • Part of our work is raising awareness and giving DEI focused attention in all areas of the employee life-cycle and in all processes that impact people. Being transparent about our plans and honest about the gaps we are working on closing is key. Many of our plans and measures are long-term and we continue to focus on them through all our core people processes throughout the year. 
  • We have a graduate trainee programme at Höegh LNG in partnership with the Norwegian Shipowners’ Associations Maritime Trainee Programme, one of the leading trainee programmes in Norway. Every year have two trainees for an 18-month period who have the opportunity to work in many parts of the company, including on our vessels and in our global offices. 
  • We encourage and sponsor our female staff to join the Women's International Shipping & Trading Association (WISTA International). WISTA is an important global organisation, connecting female executives and decision-makers around the world.
  • We report on our workplace equality & diversity progress with the help of Equality Check a third-party organisation helping companies to create more equal workplaces for all. We measure the diversity of Höegh LNG leadership team and set targets for increasing the representation of underrepresented groups. We analyse and submit pay data to ensure that employees are paid regardless of demographic factors. We identify any disparities and take steps to address them We are ensuring equal pay for equal work and regularly reviewing and adjusting salaries to eliminate any disparities.

Ambitions

  • We want to be regarded as a diverse and inclusive company in our industry and to attract diverse talent to join us. 
  • We will have 40% females at all leadership levels in Höegh LNG.
  • We will launch a mentor programme for females.
  • We will identify and attract new talent from a broader, diverse network. 
  • We will keep retention at the current rate within a turnover rate of 5%-10%.
  • We will retain top employee engagement scores of 95%
  • We will increase our supportive culture score on our Höegh LNG engagement survey from 74% to 85%.

Focus areas 2023

    Fostering our Höegh LNG culture. 

  • We are designing a culture development program with actions and milestones to foster and further develop a vibrant working environment with development opportunities for all our employees. We will increase our supportive culture score on our Höegh LNG engagement survey from 74% to 85%.

    • Defining competency and skills of the future

  • Developing the competencies and skills needed to deliver on our strategy. Upskilling, training and development, rotation, internal mobility, succession planning and hiring. 

    • Talent retention and diversity in recruitment. 

  • We will set targets to ensure that recruitment efforts are reaching a diverse pool of candidates and measure progress towards those targets.
  • We will identify and attract new talent from a broader, diverse network and require our headhunters and partners to have a focus on diversity in our agreements with them. 

    • Reward and recognition

  • We continuously evaluate our compensation and benefits practices and benchmarks to ensure parity and competitiveness. It is important at Höegh LNG to pay fairly, incentivise performance, and provide access to benefits that safeguard our employee’s wellbeing.  

Our corporate governing documents

Developing solutions to energy transition

Höegh LNG is actively seeking areas where we can contribute to the transition to a low carbon world while growing our business in a commercially sustainable manner.

Affordable and clean energy

We will continue our effort to seek areas to contribute to the transition to a low carbon world in the following ways:

  • Integration of existing terminals with onshore services with the aim of improving process efficiency, reducing emissions, and complementing renewables
  • Plan future terminal compatible with green hydrogen, green ammonia, e-fuels, or bio-LNG
  • Explore solutions for applying LNG technology to the CCS value chain

Ambitions

  • Preferred service provider in the zero-emission energy value chain
Peace Justice and Strong Institutions

Compliance, anti-corruption and human rights

With operations worldwide, we face a variety of local regulations and practices, requiring that we pay great attention to ethical behaviour, compliance, and risk mitigation. We are exposed to a variety of corruption and bribery risks in both obtaining new business and in our ongoing operations. We place great importance on only engaging in business with parties with comparable anti-corruption and ethical standards as ourselves. All business partners are required to sign the company`s Supplier Code of Conduct.

Höegh LNG believes in collective action to achieve our ethical and compliance goals. We are a member of the Incentra purchasing organisation, which is owned by shipowners and managers. Incentra qualifies and audits suppliers on behalf of members in accordance with standards that are consistent with our Supplier Code of Conduct, the Transparency Act, and other compliance and quality requirements. 

We are also an active member of the Maritime Anti-Corruption Network (MACN), which provides valuable insights into specific anti-corruption challenges in the maritime industry. As a member, HLNG is committed to implementing the MACN anti-corruption principles.

During 2022, we further strengthened our compliance work by: 

  • Implementing compliance awareness campaigns in relation to e.g., incident reporting and whistleblower hotline.
  • Improvement of compliance risk assessment of ports called by the Group’s vessels.
  • Improvement of sanctions screening and monitoring processes.
  • Launch of new compliance e-learning courses related to anti-corruption, gifts and entertainment and fraud, including the MACN Anti-Corruption e-learning course for all seafarers. 
  • Signing up for the MACN Collective Action in Egypt, Nigeria, and India.. 

Our Compliance Goals for 2023 include:

  • Following the port risk assessment in 2022, three more countries will be added to the MACN collective action list. Country guides for Argentina, Bangladesh and Indonesia will be implemented. 
  • We will launch the MACN Anti-Corruption e-learning course to all FSRU port agents.

Human Rights

At Höegh LNG, we are committed to respecting and promoting human rights throughout our operations and supply chains:

  • We have adopted the Universal Declaration of Human Rights as a guiding principle for our operations. 
  • We conduct our business in compliance with the International Labor Organization’s fundamental conventions and other applicable laws and regulations in the countries where we operate.
  • We have established policies and procedures to ensure that our employees, suppliers and other stakeholders are aware of our commitment to human rights and are held accountable for respecting them, including our Code of Conduct and Supplier Code of Conduct.  

In 2022, we continued our proactive approach to identifying and mitigating human rights risks in our operations and supply chains. Risk assessments and due diligence processes were performed for all prospective and new business partners.  

Some of Höegh LNG’s subsidiaries are subject to legislation relating to which measures the company has in place to ensure responsible business practices, including the UK Modern Slavery Act and the Norwegian Transparency Act.

The UK Modern Slavery Act is a legislation aimed at tackling modern slavery in the UK by requiring companies to disclose what steps they are taking to ensure their supply chains are slavery-free. Please see our separate Modern Slavery Statement for further details. The Transparency Act is a Norwegian legislation requiring companies to exercise due diligence to ensure they respect human rights and promote decent working conditions. 

Our Human Rights Goals for 2023 include:

  • Improving our human rights impact assessments. 
  • Implementing the result of the risk assessment as a guideline for internal audits and planning for mitigating actions.
  • Developing an integrated transparency report for the Group which meets the requirements applicable to the Group’s subsidiaries in relation to human rights, decent working conditions and sustainable business practices. 
  • Continuing to strengthen our processes to enable greater transparency and sustainability in every step of our value chain. 

Our corporate governing documents

  • Governance Principles Policy
  • Code of Conduct
  • Supplier Code of Conduct
  • Anti-corruption Compliance Procedure
  • Competition Compliance
  • Compliance, Anti-corruption and Business Integrity