EU VSME reporting by Solvang
The EU’s Corporate Sustainability Directive CSRD was adopted in 2024 to set Europe on a green trajectory. This is Solvang’s first report – following the VSME standard (voluntary environmental reporting standard for small and medium-sized enterprises)
Scope and method
B1 – Basis for reportingB2 – Practices, policies and future initiatives for transitioning towards a more sustainable economy
Environmental disclosures
B3 – Energy and greenhouse gas emissionsB4 – Pollution of air, water and soil
B5 – Biodiversity
B6 – Water
B7 – Resource use, circular economy and waste management
C1 – Strategy: Business Model and Sustainability – Related Initiatives
C2 – Description of practices, policies and future initiatives for transitioning towards a more sustainable economy
C3 – GHG reduction targets and climate transition
C4 – Climate related risks
Social disclosures
B8 – Workforce – General characteristicsB9 – Workforce – Health and safety
B10 – Workforce – Remuneration, collective bargaining, and training
C5 – Additional (general) workforce characteristics
C6 – Additional own workforce information - human rights policies and processes
C7 – Severe negative human rights incidents
Scope and method
B1 – Basis for reporting
Solvang has selected to disclose information according to VSME Basic Module and Comprehensive module. Solvang has not omitted any disclosures deemed classified or sensitive information.
The sustainability report has been prepared on a consolidated basis, including the following subsidiaries, joint ventures and other entities managed by Solvang.
B2 – Practices, policies and future initiatives for transitioning towards a more sustainable economy
Solvang has put in place specific practices, policies and future initiatives for transitioning towards a more sustainable economy.
Practices
Energy efficiency measures, exhaust gas cleaning (scrubbers), LP-EGR systems, electrostatic particle filtering, load optimization across fleet. Carbon capture pilot, scope 1 GHG emissions monitoring, supplier screening, reporting of corruption, fleet-wide SMS, employee support programme, board ESG oversight.
Policies
Solvang embedded environmental and climate management in HSEQ and ISO 14001 framework, R&D policy aligned with decarbonization strategy, GRI and EU reporting, supplier code of conduct aligned with UN Global Compact and ILO conventions, ethics guidelines communicated to employees and suppliers, employment/HR policies aligned with international maritime standards, governance framework integrating sustainability responsibilities into management.
Future initiatives
OCCS-ready on current newbuilds, continuous improvement of ESG governance and reporting, digitalization of supplier ESG monitoring/vetting, efficiency gains.
Targets
AER compliance in line with IMO CII/AER framework. Zero tolerance for corruption, maintain safe and supportive work environment across fleet.
Environmental disclosures
B3 – Energy and greenhouse gas emissions
Solvang has a minimal scope 2 GHG footprint, as the activities mainly consist of operating vessels not connected to the power grid.
The offices in Stavanger (headquarters), Oslo (chartering) and Manila, Philippines (staffing) together represent a negligible energy consumption (<1/100.000 of company total).
| Energy source | Renewable | Non-renewable | Total |
| Electricity (utility billings) | n/a | n/a | n/a |
| Fuels | n/a | 164,009 tons | 164,009 tons |
Solvang’s estimated gross GHG emissions in tons of CO2 equivalents (tCO2e) includes: (a) 511,184 tonnes CO2e GHG emissions from owned or controlled sources (Scope 1); and (b) a negligible location-based CO2eq (Scope 2, ~5 tCO2e)
Consideration of scope 3 GHG emissions
Solvang has assessed the organization’s potential scope 3 GHG emissions, grouping main upstream emission sources into vessel manufacturing, bunker and lubricant processing, and main downstream factors into liquid gas distribution, processing and burning.
Upstream, the MGO, VLSFO, and HFO bunker products are residual, which means processing represents a negligible proportion of the emission compared to combustion (scope 1). Downstream the value chain, the choice to disclose a quantification of industrial and household emissions across large sectors of society as a part of Solvang’s emission scope, is deemed to be not relevant nor appropriate. As a conclusion, Solvang will waive reporting of scope 3 GHG emissions.
B4 – Pollution of air, water and soil
Solvang’s emissions of pollutants is disclosed in the annual consolidated ESG report, chapter 2, “Environmental sustainability”, and online.
B5 – Biodiversity
Solvang has no sites that it owns, has leased, or manages in or near a biodiversity sensitive area.
B6 – Water
Solvang’s total water withdrawal into the boundaries of the organization is limited to a minimal amount connected with onboard freshwater repositories, and office facilities. There is no water withdrawn at sites located in areas of high water-stress.
Solvang has no production processes in place which significantly consume water.
B7 – Resource use, circular economy and waste management
The undertaking does not apply circular economy principles.
A. The total generation of waste in 2025 was;
- 129.4 cbm (cubic metres) plastics
- 6.5 cbm food wastes
- 296.7 cbm domestic waste
- 0.8 cbm cooking oil
- 10.5 cbm incinerator ashes
- 142.6 cbm operational wastes
- 6.9 cbm E-waste
B. The total waste in 2025 diverted to recycling was negligible.
C1 – Strategy: Business Model and Sustainability – Related Initiatives
Products and services
Solvang provides deep-sea transportation of liquefied petroleum gas (LPG), petrochemical gases and ammonia with VLGCs and semi-refrigerated gas carriers.
Markets
Solvang operates in global petchem and energy markets between hubs in Asia, Europe, the Middle East and the Americas.
Business relationships
Business relationships include long-term contracts with industrial customers and commodity traders.
Key suppliers
Key suppliers include shipyards, tech suppliers, and maritime service providers for vessel construction, operation and maintenance. Solvang also collaborates with classification societies, regulators and industry associations.
Strategy
Solvang’s strategy is to be an industry-leading provider of LPG and petchem tonnage to its clients in the safest, cleanest, and most cost-efficient manner, with a long-term goal to achieve a zero-emission deep-sea fleet.
C2 – Description of practices, policies and future initiatives for transitioning towards a more sustainable economy
Climate strategy
Solvang gradually improves operational efficiency while implementing GHG-abating technologies. Measures include energy optimization, exhaust gas cleaning and onboard carbon capture. The strategy is aligned with international maritime climate targets and the Paris Agreement.
Onboard carbon capture
Solvang is a pilot operator of onboard carbon capture from the exhaust stream, using an amine-MEA solution to strip the gas of up to 90% of CO2. Solvang has ordered 7 newbuild VLGCs with OCCS-ready, and we work to secure market demand for offloaded liquid CO2.
Governance and oversight
Responsibility for sustainability strategy and policy implementation rests with executive management under the oversight of the Board of Directors.
Ethical conduct and supply chain
Solvang maintains policies addressing anti-corruption, fair competition and responsible sourcing. Suppliers must comply with the company’s Supplier Code of Conduct, and digital supplier screening tools support monitoring of ESG risks across the value chain.
Occupational health and safety
Health and safety practices are implemented across the organization through a certified safety management system, supported by training programmes, risk assessments and continuous improvement processes.
C3 – GHG reduction targets and climate transition
Solvang has established target structures for GHG emissions in the context of vessel-specific EEXI rating (CCI-AER compliance), corresponding to the IMO reduction target 2019-2026. The overarching target is to achieve AER compliance for all vessels in 2030. Starting 2027, Solvang will implement the Greenhouse Gas (GHG) Fuel Intensity (GFI) target framework, which sets the maximum allowable lifecycle GHG emissions per unit of energy used by a ship. For scope 2 and 3, Solvang has not established targets.
Based on 2025 fleet emissions of 511,184 tCO2e, and assuming constant distance sailed and cargo transported, a fleet-wide 2% annual AER improvement implies an approximate emissions pathway of 501,000 tCO2e in 2026, declining to 462,000 tCO2e by 2030. This corresponds to an annual reduction of around 9,000–10,000 tCO2e and a total reduction of approximately 49,000 tCO2e from 2025 to 2030.
Main actions to achieve the fleet emission reduction pathway
- Operational optimization – Continuous improvement of voyage planning, routing and cargo operations to minimize fuel consumption per transport work.
- Speed and performance management – Adjusting vessel speeds and engine loads.
- Hull and propulsion efficiency – Regular dry-docking, hull cleaning and propeller/rudder/fins optimization.
- Technical upgrades and retrofits – Implementation of energy-efficiency improvements and propulsion optimization.
- Solvang total emission control – exhaust gas cleaning and emission-reduction systems.
- Carbon capture – newbuildings and retrofits prepared for OCCS.
Transition plan for climate change mitigation
Solvang’s Clipper Future programme provides the framework for transitioning the fleet towards net-zero GHG emissions by 2050, aligned with expected international maritime regulations.
The strategy prioritizes high operational efficiency, advanced emission control and carbon capture, while maintaining flexibility to adopt biofuel or renewable e-fuels when supply becomes available at scale. The plan is designed to retain adaptability to shifting IMO and international GHG regulations.
Onboard carbon capture and storage (OCCS) systems to capture CO2 from exhaust gases, particulate filtering, and scrubber technology, are technological vectors in Solvang’s climate change mitigation strategy.
C4 – Climate related risks
A. Solvang has identified greenhouse gas (GHG) emissions from vessel operations as the most significant climate-related hazard associated with its activities, due to their contribution to global climate change. No specific climate-related transition events have been identified as posing additional environmental hazards.
B. The assessment is based on analysis of the fleet’s fuel consumption, emissions profile and transport activities across the value chain.
C. The potential environmental exposure is primarily long-term, reflecting the cumulative climate impact of GHG emissions from maritime transport.
D. To address this exposure, Solvang pursues continuous fuel-efficiency improvements, operational optimiszation and advanced emission control technologies, and prepares vessels for onboard carbon capture and future low-carbon fuels through the Clipper Future programme.
E. Solvang has not identified any adverse effects of climate risks that may affect its financial performance or business operations in the short term. In the long term, fuel costs may inflect transportation markets to pose multiple risks to the value chain.
Social disclosures
B8 – Workforce – General characteristics
Solvang’s number of employees in headcount are as follows:
A. Type of employment contract: Full-time contract hires while on board, earning vacation rights according to collective bargaining agreement to be spent while off-service.
B. Gender; 45 female, 655 male
C. Country of the employment contract; Phillipines 550, Norway 48, Latvia 1, other: 101
D. Employee turnover rate for the reporting period: <1%
B9 – Workforce – Health and safety
Solvang had
A. Zero recordable work-related accidents, and
B. Zero work-related fatalities, in 2025.
B10 – Workforce – Remuneratin, collective bargaining, and training
A. The employees receive pay above applicable minimum wage for the Philippines and Latvia, determined through a collective bargaining agreement;
B. the percentage gap in pay between its female and male employees is 0% for otherwise identical tasks and responsiblity;
C. ~93% of employees are covered by collective bargaining agreements; and
D. the average annual number of training hours per employee is 50, regardless of gender.
C5 – Additional (general) workforce characteristics
At management level in the headquarters in Stavanger, the female-to-male ratio is 0-5 for the reporting period. In the Philippines, the ratio is 0-1 for the reporting period.
The undertaking does not engage self-employed personnel, nor temporary workers provided by undertakigs primarily engaged in ‘employment activities’.
C6 – Additional own workforce information - Human rights policies and processes
A. Solvang has a code of conduct policy covering its own workforce.
B. The code of conduct covers (i) child labour, (ii) forced labour, (iii) human trafficking, (iv) discrimination, (v) accident prevention; and (vi) corruption and bribery prevention.
C. Solvang has a complaints-handling mechanism for its own workforce.
C7 – Severe negative human rights incidents
A. Solvang has no confirmed incidents in its own workforce related to (i) child labour, (ii) forced labour, (iii) human trafficking, (iv) discrimination, (v) accidents; or (vi) corruption and bribery.
The undertaking is not aware of any confirmed incidents involving workers in the value chain, affected communities, consumers or end-users.
