June 15, 2020
Norled is one of Norway’s largest ferry and express boat transportation companies with a fleet of 48 ferries and 27 express boats that transport more than 15 million passengers and 7 million cars annually. CapMan Infra invested in Norled together with CBRE Caledon in 2019. Since the investment, many developments have been taking place on the sustainability front.
Ferries are ubiquitous elements of the Norwegian fjord landscape and critical to the country’s transportation infrastructure. In 2018, the Norwegian Parliament adopted a resolution with the goal to make the country’s fjords zero emission zones by 2026. This means that any vessel wishing to enter any port, harbour or fjord will need to be operated without any emissions of CO2.
A green technology leader
Being a technological leader in the ferry sector, Norled is currently renewing its fleet to zero emission vessels. By the end of 2020, 17 electric vessels will have been introduced, comprising over 20% of Norled’s fleet. Going forward, significant investments to renew the ferry operator’s fleets with zero and low emission vessels continues.
Furthermore, activities to measure CO2 emissions from the fleet and set targets for reduction is well underway. In 2019, CO2 emissions were approximately 160,000 tons. With the current developments, the emissions are expected decrease by approximately 14,000 tons by 2021, which corresponds to approximately 11,000 fewer cars on the road. Investments and new zero emission contracts will further decrease the CO2 footprint to 135,000 tons by 2023. With continued investments, the emissions could be halved by 2026 and decreased by 75% by 2029.
A safe workplace and diverse team at the core
The shareholders work together with Norled to secure the company’s position at the forefront of the green shift, while also aiming to be the safest marine transportation workplace in Norway. Norled employs over 1,000 people and follows workplace safety and employee wellbeing closely. Employee satisfaction has been at a high level for several years already, and 2019 did not make an exception to this. In an employee survey implemented in 2019, the share of employees reporting they enjoy their work increased further from previous years.
As an active owner, CapMan Infra sets the tone for our portfolio companies. Establishing and following proper HR policies that include zero tolerance for discrimination and that promote fair and inclusive hiring and advancement practices increases awareness around these issues. As owners, we also lead by example through for example considering diversity in the establishment of investment committees and in board composition. In addition, CapMan Group and CapMan Infra are part of Level20, a non-profit organisation aiming to increase awareness of diversity and inclusion topics within the private equity industry, supported by over 40 international private equity firms.
In the CapMan Infra portfolio companies, the share of women among management and board members was over 20% on average. At Norled, 38% of Board members and 50% of Management Group members are women. CapMan has played a pivotal role in establishing a gender-balanced composition of both governing bodies. Furthermore, gender equality is an important focus area in the recruitment process for portfolio company executives, as well as CapMan Infra investment professionals.
Key SDGs and targets
9-4 Upgrade all industries and infrastructures for sustainability
24% Share of fleet which is planned to be upgraded to reduced emission solutions by 2021
Planned capex for 2019-2021 dedicated to electric vessels / hydrogen is NOK ~3bn (around MEUR 280).
13-2 Integrate climate change measures into policies and planning
75% Decrease in CO2 emissions by 2029.
By the end of 2020, 17 electric vessels will have been introduced, comprising over 20 % of Norled’s fleet. In 2019, CO2 emissions were approximately 160,000 tons. With continued investments, the emissions could be halved by 2026 and decreased by 75% by 2029.
11-2 Affordable and sustainable transport systems
15 Million passengers annually
More than 15 million passengers and 7 million cars annually rely on Norled as a form of transport in the Norwegian fjords.
Read more about CapMan sustainability approach and progress: