Corporate governance: A brave approach
Solvang makes heavy eco investments without a regulatory clear path to return on the investment.
«Any shipowner would respond to a world in motion. But Solvang also rigs our values and behaviour in a way to control all processes ourselves. Values and behaviour which make it worthwhile to maintain a long-term relationship with us,» says Mr. Edvin Endresen, the CEO of Solvang.
Taking on climate risk
Being a long-term player, Solvang must constantly evaluate emerging risks and our own impact on the environment.
In 2024, Solvang carried out a double materiality assessment following the EU’s corporate sustainability directive (CSRD). The assessment disclosed major climate risks connected to GHG emissions from fossil fuel operation.
«Nearly the entire world fleet operates on fossile fuels. Nobody is going to change for alternative fuels before the cost of harmful emissions forces them to change,» Mr. Endresen says.
Solvang currently invests around 500 MNOK to prepare seven newbuilding Panamax VLGCs for onboard carbon capture and storage (OCCS). In 2025, IMO may implement similar schemes for GHG intensity in shipping fuel, as the EU. In case such regulations are adopted, the value of alternative technology like the OCCS will be realized.
Quality and proper people
Solvang’s values of mutual respect, team spirit, and quality govern the organization onshore and offshore on the vessels. In times of uncertainty, the market has shown commitment to Solvang’s stability, the all-encompassing quality, and the ensuing performance.
«We rarely start out discussions with our customers talking about the vessels. They’d rather want to know about the delivery, performance and transparency. They appreciate that we don’t make any shortcuts in delivering what we say. It means we have to prove our concept by staying focused every time - all the time» Mr. Endresen concludes.
Read more: Shipboard carbon capture: From concept to reality
