At Odfjell, fuel-related emissions make up the largest share of our environmental footprint. Categorizing our emissions, from direct fuel use to indirect energy consumption and value-chain impacts, we can pinpoint where reductions will have the greatest effect. This clarity enables us to set targeted goals, track progress, and align our environmental policies with global climate standards, ensuring that our actions lead to real, measurable improvements while maintaining transparency.
We follow the internationally recognized GHG Protocol, which helps us measure our emissions in a consistent and transparent way. Categorizing GHG emissions into three scopes, we are able to identify and manage their greenhouse gas emissions comprehensively:
Scope 1: Direct emissions from sources owned or controlled by the company. For Odfjell, these primarily include emissions from the combustion of fuel in the company’s operated vessels. Scope 1 emissions constitute approximately 58.2% of Odfjell's total emissions.
Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating, or cooling consumed by the company. For Odfjell, scope 2 emissions represent less than 0.01% of total emissions, reflecting the relatively minor role of electricity consumption in the company’s operations.
Scope 3: All other indirect emissions that occur in the value chain of the company, including both upstream and downstream activities. For Odfjell, scope 3 emissions, such as those from shipbuilding, supply chain activities, fuel production and end-of-life disposal, account for approximately 41.7% of total emissions. 36.8% of scope 3 is related to fuel activities (Scope 3 cat 2).
We report comprehensively on Scope 1, 2, and 3 greenhouse gas emissions in line with the ESRS standard and partner with ReFlow for enhanced data quality and transparency.
Odfjell is committed to transparency in climate reporting and distinguishes between two key metrics:
Absolute emissions measure the total volume of greenhouse gases emitted, regardless of activity levels or fleet size. This figure is directly aligned with global climate goals such as the Paris Agreement.
Emissions intensity measures emissions relative to transport work, such as per ton-mile. This normalized benchmark reflects operational efficiency and shows how effectively we reduce emissions relative to our business activities.
We report on both metrics because together they provide a complete picture: absolute emissions show our alignment with climate targets, while intensity reflects operational efficiency. Our reporting covers both our controlled fleet (owned vessels) and our operated fleet (chartered and pool vessels). This broad scope ensures transparency but can present challenges, as we do not have full control over vessels we do not own.
Absolute emissions may rise if our fleet grows, but integrating more vessels into Odfjell’s operations often improves efficiency and reduces emissions overall. While some factors are beyond our control, our expertise and focus on efficiency keep us on course toward lowering our carbon footprint and supporting a sustainable maritime future.
