Sustainability Report 2020 (Pdf)

Sustainability Report 2020 Contents

Sustainability Report...... 3 Sustainable development...... 4 This is Viking Line...... 5 Our vessels...... 6 The year in brief...... 7 Viking Glory...... 8 Statement of the President and CEO...... 10 An exceptional year...... 11 Maritime transport...... 14 Economic added value...... 15 Our employees...... 16 Restitution...... 18 Verification of infection control work. ..19 Safety on board...... 20 My Care verification...... 19 Life on board...... 21 A cruise feel on land...... 22 Our sustainability work...... 22 Environmental figures...... 27 Viking Line’s environmental journey...... 28 Viking Line Buss...... 29 Sustainability Report

It is often taken for granted that sustain- We have made it possible for many people ability is about development and looking to travel and for trade goods to be trans- forward. Over the past year, we really have ported between the Nordic and Baltic been challenged by circumstances we could countries. We have combined utility and not affect. Despite the global pandemic, it is pleasure while respecting our surroundings. a question of looking forward. Of thinking in terms of solutions. Of continuing to use resources in a smart way. Of leaving at least Our archipelago origins as much as we ourselves have inherited for Our commitment stems from our origins future generations. in these archipelagos. We have our roots Sustainability also entails a historical di- in the Åland Islands. Viking Line is Finland’s mension. Only the passing of time will show biggest maritime employer today, and our what is sustainable, so it is worth looking employees reside virtually all across Finland back and thinking about where we started and Sweden (see more on page 16). The la- and how far we have come. It has been bour arrangements for seafarers, with long more than six decades since Viking Line working periods followed by just as long launched its service in the north Baltic Sea. periods of time off as a rule, enable them to Our traffic democratized travel between live away from densely populated areas. the Finnish mainland, the Åland Islands and We are pleased that the geographic spread Sweden and made car journeys possible for of our employees helps to preserve the ordinary people. Few people believed in us population structure in smaller commu- at the time. Today we are a brand. nities and ensure that tax revenue also goes to other regions besides metropolitan areas. Technological advances We want to continue to be a role model The technological advances have been in environmental thinking and new cli- considerable, to say the least. The range mate-smart technology. A good example of of products and services on our vessels this is our new vessel, Viking Glory, which has become ever more varied, comfort has will soon launch in service. We want to pro- increased and the vessels have grown in duce more from less. We want to leave less size. Although we have not yet been able and less of a trace behind us. That is what to eliminate the use of fossil fuels, which sustainability means to us. is and remains our big challenge for now, over the years we have done a great deal to protect the climate and the Baltic Sea that is so dear to us (see more about our environ- Dani Lindberg mental journey on page 28). Sustainability Manager

VIKING LINE SUSTAINABILITY REPORT 2020 3 Our commitment to the UN’s Sustainable Development Goals

Our ambition is for sustainability to one day be integrated throughout our value chain and for it to always be a basis for decisions with economic or ecological consequences. We want to treat our customers and employees with respect and protect their health, safety and well-being. We have chosen to prioritize four areas where we believe we can make a difference: Procurement principles still under review In 2017, we began work to revise the principles governing our procurement and tender processes. We believed the work had been completed in 2018, but it turned out that there was more to be done. In 2019, we drew up a new procurement policy that better reflects our most important criteria in tender processes and procurement. We also carried out extensive work together with all the procurement managers to update our procurement processes and imple- Affordable and clean energy Life below water Good health and well-being Responsible consumption ment this in our operations. The work is and production We continue to be a pioneer Our vessels do not discharge Well-being at work and a progressing. in applying new climate-smart any wastewater into the sea. healthy lifestyle are the basis We vow to sort by-products technology. We test new as well Nor do we use environmentally of success on the job. Through generated from our operations. as alternative technological hazardous paint on the bottoms good leadership, an open, stim- We want to maximize recycling Fight against corruption solutions to achieve lower emis- of our vessels. We vow to con- ulating, secure and pleasant and, where possible, reuse In 2018, we supplemented our opera- sions. We continue to support tinue to find ways to reduce the atmosphere is created in which materials. We strive to reduce tional principles with a policy against and collaborate with innovative use of water and chemicals in employees’ efforts are appreci- waste quantities and create corruption and bribery. The aim was to companies and researchers in our operations. ated and recognized and where increasingly circular material support the organization, including in energy technology. everyone is treated equally. We flows. tender processes, procurement and our promote good health, well- cooperation with government author- ness activities and employee ities. We also wanted to provide our well-being by encouraging and employees with better tools for detect- promoting meaningful leisure ing and reporting suspicions of inappro- activities. priate behaviour.

VIKING LINE SUSTAINABILITY REPORT 2020 4 Fundamental This is Viking Line values

Viking Line provides services on the Mission Vision Viking Line is for everyone. vessels Amorella, Gabriella, Mariella, We link together the countries around the We are the leading brand in our service area Our customers are our foremost Rosella, Viking Cinderella, Viking Grace northern Baltic Sea by providing sustainable and the preferred choice of all those seeking priority and we aim to exceed and Viking XPRS. Our vessels depart and regular ferry service for everyone. Our sea transport services and experiences. We their expectations, especially with from Åland, Stockholm, Turku, Tallinn three basic services are cruises, passenger shall preserve and enhance our position as a regard to good service. and Helsinki. Shares of the parent transport and cargo transport. Our unique profitable company. expertise in combining these services gen- company, Viking Line Abp, are traded • We respect our co-workers and value on NASDAQ Helsinki. The company is erates customer and business benefits. Service area initiative, innovation, teamwork, domiciled in Mariehamn. Viking Line provides services on the north- openness, honesty, loyalty and ern Baltic Sea, with Finland, Sweden and the acceptance of responsibility. Baltic countries as its main markets. We have • We stand for humility and cost- sales offices in Finland, Sweden, Estonia and consciousness. Germany. In addition, the subsidiary Viking • We take advantage of all good Line Buss Ab provides bus transport based in business opportunities. Turku the Åland Islands. • Our vessels are safe and well- Långnäs maintained. Finland’s biggest maritime employer • We conduct our operations in Mariehamn Helsinki Viking Line is Finland’s biggest maritime em- compliance with applicable environ- ployer. In all, more than 40 different occupa- mental standards and legislation. tional categories are employed on a vessel in • We strive to continuously improve Kapellskär areas such as operation, maintenance, shops, our environmental and sustainability kitchens, hotels, entertainment, conference work. Stockholm Tallinn facilities, security and healthcare.

VIKING LINE SUSTAINABILITY REPORT 2020 5 Our vessels M/S Amorella M/S Gabriella M/S Mariella M/S Rosella Turku–Åland–Stockholm Helsinki–Mariehamn–Stockholm Helsinki–Mariehamn–Stockholm Mariehamn–Kapellskär

Delivered in 1998 2,480 passengers Built in 1992 2,400 passengers Delivered in 1985 2,500 passengers Delivered in 1980 1,530 passengers 34,384 gross 450 cars 35,492 gross 400 cars 37,860 gross 430 cars 16,879 gross 340 cars weight tonnes 900 lane metres weight tonnes 900 lane metres weight tonnes 980 lane metres weight tonnes 720 lane metres Length 169.4 m 1,946 berths Length 171.2 m 2,382 berths Length 177.0 m 2,500 berths Length 136.1 m 422 berths

M/S Viking Cinderella M/S Viking Grace M/S Viking XPRS Stockholm–Mariehamn Turku–Åland–Stockholm Helsinki–Tallinn

Delivered in 1989 2,560 passengers Delivered in 2013 2,800 passengers Built in 2008 2,500 passengers 46,398 gross 306 cars 57,565 gross 556 cars 35,918 gross 220 cars weight tonnes 760 lane metres weight tonnes 1,275 lane metres weight tonnes 995 lane metres Length 191.0 m 2,500 berths Length 218.0 m 2,950 berths Length 185.0 m 736 berths

VIKING LINE SUSTAINABILITY REPORT 2020 6 Sales: EUR 188.8 M Income before taxes: EUR -52.9 M Investments: EUR 15 M Equity/assets ratio: 46.4%

Market share, passengers

26.6%

73.4%

l Viking Line l73.4 Others +26.6+A

Market share, cargo

17.1% The year in brief The coronavirus and its spread affected all maritime travel and especially passenger shipping companies in 2020. In a short period of time, we noted that virtually all sales revenue disappeared while a large share of costs were still 82.9% incurred. Passenger volume fell sharply in March, and that trend continued for the rest of the year.

As a result, the figures in this report deviate significantly from figures for previous years. l Viking Line l82.9+ Others 17.1+A

VIKING LINE SUSTAINABILITY REPORT 2020 7 NEW VESSEL Viking Glory

Viking Line, together with the Port of Turku, the Ports of Stockholm, the Port of Mariehamn and the city of Turku, has been granted EU funding from CEF for their collaborative NextGen Link project. The project entails an upgrade of maritime transport links between Turku, Mariehamn and Stockholm with a new vessel that runs on liquefied natural gas (LNG) as well as infrastructure improvements in the ports. The project is in line with the EU’s TEN-T priorities since it contributes to increased use of more sustainable vessel fuel and thus reduced emissions while also improving logistics in the link between Turku and Stockholm and making them more efficient.

VIKING LINE SUSTAINABILITY REPORT 2020 8 Viking Glory

Quick facts about the technological innovations on board Viking Glory: • Dual engines from Wärtsilä will enable better optimization of fuel consumption. • The use of LNG will result in virtually zero particulate and sulphur emissions as well as reduced carbon dioxide emissions compared to diesel. • Waste cold from LNG use will be re- Viking Glory embodies Viking Line’s natural gas (LNG) and was honoured with a Nordic design with a focus covered and recycled for cold counters, faith in a bright future for travel on number of sustainability awards. The new on archipelago views cold rooms and other specialized areas on board the vessel. the Baltic Sea. Key words are sustaina- Viking Glory is larger than the environmen- With Viking Glory, Viking Line wants to open bility, energy efficiency and innovative tal pioneer Viking Grace but is nonetheless up the world’s most beautiful archipelagos • It is estimated that the energy recycling Nordic design. expected to use about ten per cent less fuel to passengers in a brand-new way. The system from Climeon will generate up and thus be one of the world’s most ener- vessel offers large panoramic windows to 40 per cent of the electricity required gy-efficient vessels. The focus throughout combined with quiet, comfortable travel for passenger functions. Viking Glory is the result of a close collabo- the project has been on energy optimiza- in all seasons. All of the interior is • The Azipod propeller system from ABB ration with Finnish and other Nordic part- tion and eco-friendly solutions. characterized by timeless, will save time and fuel in terms of ship ners who, by contributing their expertise Key Nordic partners in yet playful design, Nordic manoeuvring. Viking Glory will be the and know-how, will enable us to soon cele- developing environmental One of the world’s light, sustainability and first vessel of its kind in the world with brate the launch of a truly unique vessel. technology details and an most energy-efficient digital solutions. this system. innovative interior include vessels • Dynamic ventilation and lighting will Wärtsilä, ABB Marine, Koncept, save energy. Some spaces will be Climate-smart vessel Climeon, Kone, Deltamarin, Almaco, Evac, equipped with sensors. When these Viking Line is a pioneer in developing Pointman and Projektia. The technological spaces are unused, the lights switch off sustainable passenger ships of the future. innovations that were tested and developed automatically. Similarly, the ventilation First out was Viking Grace, which was are an important basis for the new cruise The plans are for the vessel to enter service system is automatically turned off when placed in service in 2013 as the world’s first experiences that will be offered going for- in early 2022 on the Turku–Mariehamn– spaces are not used for a while. large passenger ship powered by liquefied ward in the Baltic archipelagos. Stockholm route.

VIKING LINE SUSTAINABILITY REPORT 2020 9 STATEMENT OF THE PRESIDENT AND CEO

Strong faith in the future

The year 2020 was exceptional in nischer Lloyd (DNV GL) was contacted, and many ways. Since the beginning of we became the first shipping company in the year, the operating environment the world to be verified in accordance with has been extremely unfavourable to DNV GL’s My Care methodology. passenger shipping companies and as We at Viking Line intend to ride this out. We a result the economic consequences have a new vessel, Viking Glory, on the way have been drastic. and believe in the future of our industry. The vessel will be one of the world’s most climate­smart vessels, and we look forward The challenge in 2020 was to run opera- to introducing it to our customers. tions when demand evaporated due to various restrictions. Travelling locally, enjoying archipelago views, taking a lovely short holiday will also Passenger volume collapsed in March 2020, be attractive in the future. This will require and at year-end we recorded a loss of four engagement, patience and drive from us, million passengers. In a short period of but we have talented, skilled staff. At Viking time, we noted that essentially all sales rev- Line, we have something we call the Viking enue had disappeared while a large share spirit. It strengthens us and enables us to of costs was still incurred. work towards the same goals. Of our four operating pillars – cargo, pas- I would like to extend my warm thanks to senger cars, cruise passengers and pas- all our customers and partners for their sengers in scheduled service – only cargo faith in us and for a good collaboration. An functioned normally. especially big thank you goes to our staff, The year was also dominated by passenger who have fought patiently under tough safety issues. The safety of passengers and conditions over the past year. staff is Viking Line’s top priority, and that has also been the case during the ongoing pandemic. We have long worked at the company with infection control measures. During the spring, we decided to have the company as- sessed by a third party to quality-assure our infection control work. The accredited clas- Jan Hanses, sification society Det Norske Veritas Germa- President and CEO

VIKING LINE SUSTAINABILITY REPORT 2020 10 An exceptional year for passenger shipping companies

Since January 2020, Viking Line’s oper- showed that we were on the right track. An extraordinary year for service Despite operational restrictions, we have ations have been affected by unfore- Our operating income of 17.4 million euros Starting in March, travel was mainly affect- maintained uninterrupted passenger and seen external factors in the form of was double the figure in 2018. ed by the extent of the spread of Covid-19 cargo service between our countries and thus ensured a traffic pattern that has been a global pandemic. Covid-19’s impact The organizational development work we around the Baltic Sea along with the various in place since 1959. on society is clearly reflected in our began in 2019 proved to be a success. The restrictions introduced in the countries we annual accounts, and the virus contin- goal had been in part to strengthen our serve. ues to affect individuals, companies commercial focus. There was an eagerness These restrictions were eased to some A challenging economic situation to continue the work, and high goals were and markets. degree in mid-May, but during our peak Our operations are based on four different set. Unfortunately, things did not turn out season restrictions were still in place on pillars – that is, cargo, cars, cruise passen- as planned. No one could suspect in early 2020 that travel between Finland and Sweden. Inter- gers and passengers in scheduled service. service between our countries would be The confidence and eagerness we still felt in national passengers were conspicuous by Three of these pillars were knocked down affected so abruptly and that our everyday January 2020 were quickly replaced by wor- their absence. We were able to place all of during the year. The company’s vessels and lives would be dominated by social dis- ries and alarm about what could lie ahead. our vessels back in service on partly new business model are constructed in such a tancing and digital meetings via Microsoft The reports we received from China were routes in July. way that cargo traffic alone does not cover Teams, Zoom and Skype. initially considered remote, but as news Among other changes, Gabriella made variable operating costs, not even after of people falling ill came closer to home, some twenty well-appreciated cruises from staffing is reduced to a minimum, which we spreading to our region, the situation Helsinki to Mariehamn. A slight improve- did with the help of furloughs for both ship- Looking back became serious. In March, these worries ment in demand was seen in late August, board and land-based employees. In 2020, We started off 2020 feeling confident and were confirmed. The year 2020 will proba- but this was quickly reversed by new restric- we lost more than four million passengers. cautiously satisfied about having made the bly go down in history as a distressing year tions, which affected operations throughout During a normal year, we transport 6.4 mil- right choices. We had succeeded in revers- for passenger shipping companies. But we the autumn. During the autumn, four of the lion passengers, so this figure is very telling. ing a negative trend, and results for 2019 have learnt a lot. company’s seven vessels were in service.

VIKING LINE SUSTAINABILITY REPORT 2020 11 Faith in the future

During the year, the focus was on Supply Agency in Finland to maintain cargo ernment approved State guarantees on Vi- the first shipping company in the world to securing the company’s liquidity. This traffic between Finland and Sweden, Åland king Line’s liquidity loans for a maximum of be verified by the accredited classification was done by making cost adjustments and Sweden, and between Finland and 38.7 million euros. In addition to the State society Det Norske Veritas Germanischer and through various financial arrange- Estonia. guarantees, commercial banks guaranteed Lloyd (DNV). ments with our creditors. The funding covers variable costs for ser- 4.3 million euros. Viking Line undertakes The verification, covering all seven vessels vice and some fixed costs, but was reduced not to pay a dividend or pay out any other in the fleet and operations at six terminals, by revenue from cargo traffic and aid for funds until the company’s obligations relat- affirms our capability to manage and miti- Employees have carried a heavy load, with passenger traffic. We also received aid from ed to the guarantees and loans have been gate infection risks, including for Covid-19. furloughs implemented in all of the Group’s the Government of Åland. met in full. DNV’s My Care methodology assesses the operating countries during the risk management systems of companies spring. The furloughs were During the autumn, similar aid Verified infection control work and applies hospital-quality standards and in the form of part-time and was provided by the Finnish The safety of our passengers and employ- systems. mostly full-time furloughs. There has been Transport and Communication Agency (Traficom). Relief for ees is always our top priority, and that has During the autumn, we were great employee fairway dues was granted by also been the case during this pandemic. forced to convene cooperation engagement, which Finland and Estonia. We also Everyone must be able to travel safely with Engaged, skilled staff negotiations to reorganize us. And all of our employees must feel safe received aid for operations The robust efforts and skill of our staff have operations, which unfortu- really instils on the job. from the Estonian State. In been crucial. Thanks to their know-how and nately resulted in redundan- confidence. Sweden, we were able to We have long carried out work to mitigate especially their engagement, we were able cies for some 300 employees obtain some short-term fur- infection risks and prevent infectious dis- to achieve our goal. Our infection control in Sweden, Finland, Åland and lough aid. Negotiations with eases. To ensure safe procedures in these measures have been effective, and our Estonia. our financiers were conducted in a positive exceptional times and reinforce our passen- surveys show that customers view them During the spring, the company received spirit and were concluded during the third gers’ faith in our service during the Cov- positively. There has been great employee funding from the National Emergency quarter. In mid-October, the Swedish gov- id-19-pandemic as well, Viking Line became engagement, which instils confidence.

VIKING LINE SUSTAINABILITY REPORT 2020 12 Safe, secure travel Many concrete measures have been implemented to prevent the spread of infection. Below is a description of some of the measures we introduced to ensu- re that passengers will be able to travel safely with us: • We have allowed almost half as many passengers per sailing as normal. As a result, we have ensured that distances can be maintained between all passengers. • We have restricted and checked all passenger flows in the terminals and during the boarding and disembarking of vessels. Face coverings are recom- mended. • We have expanded and intensified cleaning procedures and provided hand sanitizer to all our passengers. • We have regular reminders about how people should keep a social distance and about how important it is for them to wash their hands often and properly. • We have limited the number of guests in restaurants and shops. People can also buy take-away or order room service in the cabins. • The selection of entertainment on board is limited. We do not have any large-scale performances by artists, the ball pits are empty, and our sauna and spa facilities A new year and a new vessel have remained closed. instil confidence • Check-in counters, information desks We at Viking Line will get through this. and pay tills have been equipped with Stronger. We continue to work with Plexiglass screens. Viking Glory financial issues and look forward to society reopening soon thanks to the • Only card payment is accepted until vaccines now being rolled out. further notice for hygiene reasons. – climate-smart, Late in the autumn of 2021, our new • We have reminded passengers to travel vessel, Viking Glory, will be delivered. in small groups and limit socializing with beautiful and The vessel, which will be one of the new acquaintances. world’s most climate-smart, will be • If passengers experience any cold unique unique and beautiful – both its interior symptoms, they have been encouraged and exterior. to contact staff, for example, using their Johanna Boijer-Svahnström cabin phone. There are always nurses We already see enormous interest in it, Director, External Communication, on board. which is gratifying. Viking Glory gives us faith in the future. Sustainability, Land-Based HR

VIKING LINE SUSTAINABILITY REPORT 2020 13 Maritime transport that enables trade

Regular, reliable sea transport is a marily from Finland, Sweden and Estonia in order to plan for their needs with the vital link in the large flows of goods but also from the other Baltic countries best long-term planning possible. between Finland, Sweden and Estonia. as well as Poland, Denmark, Norway and Russia. A total of 1,544,790 Collaboration with stakeholders Demand for transport and travel for Finland, Sweden and Estonia are all pleasure varies significantly during the tonnes of cargo were Collaborating with stakeholders is an included in the EU’s so-called transport year. Summer is our peak season, which important part of our sustainability corridors, which are considered essential loaded on board our is when the need for car deck capacity is work in cargo and logistics. Our aim is to to the trans-European transport network. also greatest. Our challenge is to utilize take part in discussions about national Shipping is crucial in linking together the vessels in 2020 the capacity on our vessels in the best and international flows of goods. In this transport infrastructure of the Nordic possible way for every single departure, context, port authorities are some of countries, the Baltic countries and Cen- every single day. The greater our capacity our most prominent stakeholders. We tral Europe. Bearing in mind the impor- utilization is, the more we contribute to a cornerstone in our work to utilize our maintain an ongoing collaboration with tance of securing emergency supplies, the sustainability of marine transport as capacity to the fullest. While summer our destination ports in order to improve it is important that Finland has its own a transport mode. tourism peaks in mid-July, trade goods logistics to and from our vessels, among fleet. must still be transported year-round. other aspects. Through activities such as Our traffic enables the reliable, regu- Seasonal variations in supply and de- measuring and weighing units in ports, lar transport of large volumes of trade Dialogue with cargo customers mand for different goods create different we further improve our capacity utiliza- goods between the Nordic and Baltic Cargo transport constitutes an impor- transport needs. We maintain a conti- tion and provide the ports with important countries. Our cargo customers come pri- tant part of our transport volume and is nuous dialogue with our cargo customers information.

VIKING LINE SUSTAINABILITY REPORT 2020 14 GENERATION OF ECONOMIC VALUE, MEUR 2020 2019

Customers

Sales, other operating revenue, financial income 190.2 497.2

Suppliers

Procurement -145.4 -300.0

Investments -15.0 -29.9

Economic value generated by Viking Line 29.8 167.3

DISTRIBUTION OF ECONOMIC VALUE

Employees

Net salary and pension expenses -71.8 -113.2

Shareholders Economic value Dividends 0.0 0.0 Financiers

Viking Line’s operations generate totalled 15.0 million euros, with 7.4 million Interest expenses -2.7 -3.1 economic value for the Group’s euros of this mainly advance payments for Public sector stakeholders in the countries and the vessel under construction. Viking Line employed an average of 1,640 market areas in which we operate. Income taxes 0.0 -2.6 people. Net salaries and pension expenses The most important cash flows totalling 71.8 million euros were paid to Port expenses and vessel charges -25.2 -40.9 consist of revenue from our custo- employees. Viking Line paid a total of 51.3 mers, purchases from suppliers million euros to the public sector in the Taxes on salaries and social security contributions -26.1 -37.4 of goods and services, salaries to form of port expenses­ and vessel charges, employees, payments to and from taxes on salaries, social security contribu- Paid to public sector -51.3 -80.9 the public sector, dividends to tions and income taxes. The Group received national restitution, national state aid for Restitution and aid from public sector and EU funding 53.5 33.5 shareholders, and funding costs to maintaining freight transports and security Public sector, net 2.2 -47.4 financiers. of supply during the pandemic, and EU funding totalling 53.5 million euros. Share- ECONOMIC VALUE DISTRIBUTED -72.3 -163.6 In 2020, consolidated sales and other holders received no dividends. The Group’s revenue totalled 190.2 million euros. The income statement, balance sheet and cash Economic value retained in operations -42.4 3.7 Group’s purchases from suppliers totalled flow statement are presented in their en- 145.4 million euros, and investments tirety in Viking Line’s financial statements.

VIKING LINE SUSTAINABILITY REPORT 2020 15 Our employees

During 2020, the number of employees The number of employees residing in in the Viking Line Group was 2,359 Finland was 1,732, with 487 persons (2,632). Shipboard personnel totalled residing on the Aland Islands. The 1,725 persons, including the personnel number residing in Sweden was 354. on Viking XPRS employed by a staffing There were 264 employees residing in company. Estonia, including Viking XPRS person- The subsidiary Viking Line Buss nel. The number of employees residing employed 39 persons. in other countries was 9.

VIKING LINE SUSTAINABILITY REPORT 2020 16 The Group Dec 31, 2020 Women Men Total

Board of Directors 1 6 7 Group Management team 1 6 7 Foremen 88 223 311

Finnish flag 467 754 1,221 Swedish flag 114 226 340 Estonian flag – – 164

Shipboard personnel 581 980 1,561

Land-based personnel 377 257 634

Group total 958 1,237 2,359*

* Including staff on Viking XPRS (164) employed by a staffing company.

Employees’ Age Gender Gender breakdown place of residence distribution breakdown in foreman positions

52.5+l Finland l Estonia 20.5+15101A l 1< 20 years 1% l 50–59 years 27%+1424+28+2751A SHIPBOARD10LAND-BASED +461726.6A SHIPBOARD LAND-BASED l l l Åland l Other countries 20–29 years 14% 60–69 years 5% l Women 27% l Women 17% l Women 20% l Women 9% l 30–39 years 24% l > 70 år < 1% 61+10+20+9A l Sweden l 40–49 years 28% l Men 46% l Men 10% l Men 61% l Men 10%

VIKING LINE SUSTAINABILITY REPORT 2020 17 Restitution to sustain domestic competitiveness

Restitution to shipping companies Viking Line – For Viking Line, this restitution also applies polar circle, in the archipelago communities is repayment for preserving Finnish Finland’s largest maritime employer to some 400 Swedish seafarers. of the Åland Islands and Turku, in eastern seamanship. As Finland’s largest maritime employer, The Finnish National Emergency Supply Finland close to the Russian border, in the with five of the company’s seven vessels Agency is of the opinion that Finland should Estonian countryside and in Sweden near Restitution is an essential condition for en- under the Finnish flag, we have the highest have a merchant fleet flying under its own the Norwegian border. abling ferry service to be carried out under amount of taxes and fees borne by the flag, to secure the country’s emergency a Finnish flag and with a Finnish crew. To maritime population. For Viking Line, this supplies. The seafaring profession also The personnel on our vessels work in shifts, sustain the competitiveness of European restitution applies to some 1,600 Finnish provides many jobs in sparsely populated with one week on/one week off or ten days sea transport, a restitution system was seafarers. All shipping companies receive areas, particularly in archipelagos, where on/ten days off. These extended periods implemented in a number of EU countries, this restitution, and the size is determined people can work one week on/one week off. of time off enable them to live away from including Finland, Sweden and Denmark. by the number of seafarers employed by densely populated areas. With such labour In accordance with EU State Aid Guidelines, the company. The restitution really benefits arrangements, shipping companies help Shipping boosts prosperity shipping companies may be reimbursed for seafarers, who get a tax exemption, but to preserve the population structure in taxes and social security contributions paid since Finland has chosen to follow the mod- in smaller communities smaller communities and ensure that tax to maintain service under their countries’ el of exception in the guidelines, the taxes For natural reasons, the majority of our revenue goes to areas other than met- own flags. This restitution system, which is are borne by the seafarers and refunded land-based employees reside close to our ropolitan regions. The hiring by shipping often called maritime financial aid, is mainly to the shipping company. In Sweden and market units and terminals. However, companies of some of these residents may financial aid for seafarers – not shipping Denmark, this restitution is not recognized among shipboard personnel, the geo- be crucial to sparsely populated communi- companies. Most European countries there- as aid to enterprises, which is why it is also graphic spread is much wider. We have ties, including in archipelagos, located far fore have a similar system. debated to a lesser extent than in Finland. employees who live in Lapland north of the from urban areas.

VIKING LINE SUSTAINABILITY REPORT 2020 18 Verification of Infection control work

Viking Line became the first shipping Everyone must be able There is currently extensive infection control company in the world to be verified by to travel safely with us work under way at the company, includ- the accredited classification society Viking Line has long carried out work to mit- ing on related documentation such as an infection control manual that describes Det Norske Veritas Germanischer igate infection risks and prevent infectious everything from practical measures on board Lloyd (DNV GL) in accordance with its diseases, and the safety of our passengers the vessels to reporting and communica- My Care methodology, which affirms and employees is always our top priority. tion between vessels and the land-based Viking Line’s capability to manage and When the infection situation deteriorated in organization as well as with the authorities our service area, we chose to be evaluated mitigate infection risks, including for involved. Alongside the manual, there are by a third party, to quality-assure our work Covid-19. separate needs-based directives and instruc- in conjunction with Covid-19. tions aimed, for example, at sub-contractors The verification is for all of Viking Line’s We previously worked with DNV GL in assess readiness and maturity across six that carry out work on board. All documen- vessels – Viking Grace, Amorella, Rosella, other areas such as environmental and different dimensions – actions, communi- tation is available to employees on the com- Viking Cinderella, Gabriella, Mariella and safety management as well as vessel class cation, strategy, governance, data analysis pany’s intranet. To promote safe travel for Viking XPRS – as well as its terminals in inspections, and they were again chosen as and continuous improvement. The method­ our customers, we have information about Stockholm, Kapellskär, Mariehamn, Turku, our partner. The company’s My Care meth- ology applies hospital-quality standards and infection control measures available on our Tallinn and Helsinki. odology, developed in-house, was used to systems. website and on board the vessels.

VIKING LINE SUSTAINABILITY REPORT 2020 19 ISMC International Safety Management Code ISPS International Ship and Port Facility Security Code MARPOL International Convention for the Prevention of Pollution from Ships SOLAS Safety of Life at Sea STCW Standards of Training, Certification and Watchkeeping Safety for Seafarers on board

The safety and security of passengers security exercises are conducted on board is divided into groups with different areas Maritime authorities have delegated over- and employees is our top priority. The all the vessels. In addition, special exercises of responsibility, such as evacuation, first sight of vessels to classification societies, staff’s knowledge and efforts are cru- are carried out with varying frequency, as aid, fire-fighting and information. It is which inspect the vessels at least once a cial to safety and security work, and are large-scale exercises on each vessel mandatory for all employees to take part year. our procedures are all developed on a four times a year. The entire crew takes in safety drills. On board, there are trained continuous basis through our safety part on these occasions. A growing empha- nurses and spaces outfitted with special Preventive work and security management system. sis has been placed on acquiring equip- equipment to provide care in a medical ment, developing instructions and carrying emergency. Preventive safety work on board the out exercises in managing difficult situa- The land-based organization is also pre- vessels is fine-tuned and strengthened on Safety and security efforts are based on tions involving violence. pared for emergency situations and can a continuous basis by further developing operating vessels in compliance with We maintain continuous cooperation with assist the vessels in taking care of passen- procedures and processes and providing the prevailing national and international maritime rescue organizations, fire bri- gers and crew members. The organization training in risk factors on car decks, such as regulations and standards, such as SOLAS, gades, police, customs, border control au- holds annual exercises to improve its ability electric cars. STCW, ISMC, MARPOL and ISPS, as well as thorities and national emergency response to handle different emergencies that can careful internal monitoring and regulato- forces, in order to quickly and efficiently arise in operations. ry oversight. Continuous training in and obtain adequate information during any Collaboration on maritime safety monitoring of safety and security of the emergency situations. Other activities, We collaborate with community groups, vessel crews are carried out in order to including training with the border control Safety checks classification societies, authorities and maintain and improve their skills in safety authorities’ maritime vessel and helicopter On-board safety equipment is checked other shipping companies in our maritime and security. Through its cooperation with units, are carried out in conjunction with daily. Before every departure, the ship’s safety work to ensure broad agreement on various authorities, the company carries the exercises. officers go through a checklist to verify that maritime safety issues. One such effort is out systematic work to identify potential the vessel is seaworthy. Hatches, doors and NORDKOMPASS, a Nordic forum for pas- risk situations. ramps and all navigation instruments are senger ship owners. The forum’s objective The safety organization on board inspected. During the voyage, the car deck, is to collaborate on various maritime safety Exercises in safety and security The master of the vessel has the main areas that are critical to operations and issues in Nordic passenger ship operations. Each year, thousands of exercises in safety responsibility for safety on board, and all public areas are monitored by the camera In case of emergency, we also work in and security are carried out on board. Every crew members have been well trained in surveillance system, while guards make collaboration with the Red Cross in Finland week, fire safety, evacuation, rescue and their safety organization duties. The crew regular rounds. and Sweden.

VIKING LINE SUSTAINABILITY REPORT 2020 20 “It will get better” PARAMEDIC VIKING GRACE

Life on board — a year like no other

The past year has involved plenty Probably no one in early 2020 could have support to staff were especially important of changes in procedures and imagined the tumultuous, long-lasting during the year. Concerns about the spread working methods on board. impact that the Covid-19 pandemic would of the disease have affected everyone in so- Cleaning procedures have been have. Preventing the spread of ciety – indeed, the whole world expanded, opening hours have the disease and safeguarding “No day – including our employees. the health of both passengers Shipboard staff have carried been limited and new forms of is the same, and restaurant services and enter- and employees were a key out incredibly important work focus area throughout the year. that’s what’s best tainment were developed during that is greatly appreciated to We have invested a great deal about our job the pandemic to guarantee safe prevent the spread of infection, in cleaning and training, and on board.” work that has been verified BY Towards new goals travel for everyone. procedures are continuously DNV GL in accordance with its Despite reduced passenger volume and staff being developed. INTENDANT My Care methodology. furloughs, we have our sights set on new VIKING GRACE We have also been praised goals. “Planning for the spring and summer Positive energy and support for our cleaning in our regular 2021 season is in full swing, and we hope Creating positive energy in a difficult situ- customer surveys. we will be able to return to a more normal ation, providing clear and accurate infor- The positive response from customers has existence as soon as possible”, notes Sari mation, countering stress and providing energized and pleased employees. Launonen, Intendant on Viking Grace.

VIKING LINE SUSTAINABILITY REPORT 2020 21 A cruise feel on land

During the winter of 2020, Viking Classic food specialities on land Line opened three pop-up shops By far our best-known food speciality since on land. We also launched some of the 1960s is our open-face shrimp sand- our best known food specialities, wich. Each year, we sell 250,000 shrimp shrimp sandwiches and meatball sandwiches on board our vessels. Another sandwiches, in well-stocked super- favourite with passengers is our meatball markets in the Helsinki region. sandwich. During the year, these classics Viking Line tested new ways of tackling the could be found in supermarkets in the challenges we have faced in these excep- Finnish capital. The sandwiches are made tional times when it came to shopping on according to our recipe at Bomatin keittiö board. In November, the first of a total of in Helsinki. three pop-up shops opened. The shop in the “Our classic shrimp sandwiches have long Iso Omena shopping centre in Espoo quickly been appreciated by our passengers. In these became popular, and the next step was the exceptional times with fewer passengers than launch of the Viking Line pop-up shop in the normal, we want to offer a bit of that cruise Mylly shopping centre in Raisio and in Viking feel on land”, notes Janne Lindholm, Line’s travel shop in Mariehamn. Viking Line’s restaurant manager.

VIKING LINE SUSTAINABILITY REPORT 2020 22 OUR SUSTAINABILITY WORK

Green electricity and land-based power have reduced climate impact

An important part of our sustainabili- we were cable to connect Viking XPRS to a Digital tax-free catalogues ty strategy is the use of green electric- land-based power supply when it is moored In 2020, we replaced our traditional printed ity and land-based power. in Tallinn. Viking XPRS’s land-based power tax-free catalogues found in the shops supply is also 100% green electricity. and in each cabin with a digital alternative. Today in Åland, we use 100% green elec- Instead of printing catalogues, we chose to tricity, generated by wind power, at our two have an advert sheet with a QR code linked offices in Mariehamn and in our warehouse Digital cabin keys on Viking XPRS to current campaigns and offers. facility in Sviby. Rosella is connected to a We are the first passenger shipping compa- “We have opted for digital catalogues in land-based power supply for about 7 hours ny on the Baltic Sea to utilize digital cabin order to reduce our climate impact and to at night, when it is moored in Mariehamn. keys. Since early 2020, passengers on Viking ensure the availability and relevance of our This land-based power consists 100% of XPRS can use the Viking Line app as the key offering to our passengers. With digital cat- electricity generated by wind power. When to their cabin. By including this functionality alogues, we have also eliminated any risk Gabriella and Mariella are moored in Stock- in the app, it is now possible for passengers of infection if several people were to leaf holm, they are also supplied with 100% to have their ticket on their mobile phone. through the same catalogue”, says Mats green electricity. In Helsinki, the electricity People can now book a journey, check in Kotka, Head of Tax-Free Operations. from the vessel’s land-based supply is cur- and open their cabin door totally paper-free rently not from renewable sources. In 2020, using the Viking Line app.

VIKING LINE SUSTAINABILITY REPORT 2020 23 OUR SUSTAINABILITY WORK

Fewer plastic items on board

About 80% of the waste found on Our goal is to prevent plastic from entering replaced classic plastic straws on board shores is various kinds of plastic. As the sea from our vessels and thus to reduce with straws made from biodegradable a shipping company, we have a great the environmental impact of plastic. Our material. responsibility to do what we can for a environmental goals entail gradually reduc- ing the use of plastic items on our vessels cleaner maritime environment. Biodegradable plastic carrier bags We have therefore developed and replacing existing plastic products with Our plastic carrier bags, made in Meri- environmental goals more environmentally-friendly alternatives. We will also focus increasingly on moni- karvia, Finland, are made in part of recycled to be realized by toring where this plastic ends up after it is plastic, with some of this material coming 2021, when an used. from plastic packaging we collect on board EU directive will the vessels. The compound Poly-Bi has prohibit some been added to the material, which allows single-use From word to deed the product to decompose if it ends up in products made In a single year, about 1.5 million straws are our natural environment. Our plastic carrier Since the summer of 2016, the vessels have of plastic. used on board our vessels. They belong to bags do not contain what are known as collected 24,000 kg of plastic packaging, by far the biggest risk group of objects that oxo-degradable plastics, the use of which which is reused in the production of plastic could end up in the sea. We have therefore will soon be banned in the EU. carrier bags for the shops on board.

VIKING LINE SUSTAINABILITY REPORT 2020 24 OUR SUSTAINABILITY WORK

Sustainable Recycled from vessels in 2020 solutions • 143 tonnes of glass packaging. When recycled glass is melted down to make new glass, the process consumes 20 per cent less energy than starting from sand, soda The work to reduce food waste on board is Meals from a ash and limestone as raw materials. Glass carried out each day. Dishes on the buffet sustainability perspective packaging can be recycled any number of times without deteriorating in quality. tables are portion-controlled, and sand- We adjust our food offering seasonally Recycling of wiches in our cafés are made on the spot, based on the supply of ingredients, and to • 84 tonnes of scrap metal. steel, for example from food tins, to meet actual demand. the greatest extent possible we choose local consumes 75 per cent less energy than “It is a matter of finding new applications and sustainable alternatives. All fish pur- production from iron ore. for what was previously waste and focus on chases are made in compliance with regu- using all of our ingredients. Being creative • 226 tonnes of paper and cardboard. lations in Sweden, Finland and the EU. The Recycling of materials and concocting tasty dishes from what coffee served on board is organic, and we Because of recycling, we do not need to cut used to be thrown away. It could be fish only use biodegradable drinking straws in Greater recycling reduces our climate im- down as many new trees. A tonne of skin, which becomes a beautiful decoration, our bars and restaurants. The water served pact. It requires much less energy to recycle recycled paper is equivalent to about 14 or leftover bread that becomes the main on board in the restaurants is bottled and materials than to extract new ones from trees. Paper can be recycled around seven ingredient in a dessert”, says Janne Lind- carbonated on board and served in glass nature. Eco-cycles benefit the climate. times. holm, the company’s restaurant manager. bottles with an environmental theme. Prior- Since 2014, nearly 85,000 kg of carpeting • Viking Line brought ashore a total of 470 ity is also given to sustainable solutions in from the company’s vessels have been tonnes of food waste from Viking XPRS, serving guests, such as porcelain, glass and returned to the Dutch carpet manufacturer Viking Grace and Mariella for biogas pro- Pre-booked meals minimize waste melamine. The hot beverage mugs used on Desso. Our supplier has launched a pio- duction. This yielded 35,230 cubic metres We are collaborating with different external board for takeaway have the Nordic Swan neering project to recycle its corporate cus- of biogas, equivalent to 39,800 litres of partners to reduce food waste, and mon- ecolabel or are PEFC*-certified. tomers’ used carpeting, which is collected at petrol. Biogas production neither itoring and awareness have a great effect the end of its economic life and processed increases atmospheric carbon dioxide in the day-to-day work. Pre-booking meals into material for new carpets. As a result of levels nor contributes to the greenhouse also minimizes waste – since passengers this recycling and new production methods, effect. Biogas is thus usually described book their meals in advance, our kitchen *PEFC = Programme for the Endorsement progress is being made to complete the life as carbon dioxide-neutral. staff know how many people will be eating. of Forest Certification cycle of this product in operations.

VIKING LINE SUSTAINABILITY REPORT 2020 25

Food and the environment Did you know that … • On the whole, only reusable containers made of porcelain, glass or melamine are used for serving on board. • The non-reusable dishes used, for instance, in the buffet restaurants are made from either corn or cellulose. • Takeaway cups in the cafés on board the vessels are either paper cups with the Nordic Swan ecolabel or PEFC*-certified hot beverage cups. • Eco-friendly biodegradable drinking straws are now used in the bars on board. • Volume products such as cream, butter, yoghurt and eggs that are served on board our vessels are all locally sourced from Finland. Milk and potatoes are sourced from Finland and Sweden. • For more than a decade, all herring served on board has been MSC**-certified. • Food waste is controlled on board in part by offering single-portion servings in the buffet restaurants. In the cafés, sandwiches are made on the spot to better meet actual demand. • Viking Line serves 7.4 million cups of organically grown coffee on board each year. Organic cultivation means that the beans are grown amid rich biological diver- sity and without artificial fertilizers, chemical pesticides or genetic modification.

* PEFC = Programme for the Endorsement of Forest Certification ** MSC = Marine Stewardship Council

VIKING LINE SUSTAINABILITY REPORT 2020 26 VIKING LINE’S VESSELS 2020 2019 2018

Volumes Passengers 1,927,302 6,300,480 6,411,537 Cars 356,809 714,006 704,799 Cargo units 125,693 133,940 128,549 Total distance (000 km) 802 1,159 1,140

Resource consumption Oil (tonnes) 51,698 76,210 76,460 Lubricating oil (m3) 398 737 737 Urea (m3) 240* 240 291 Fresh water (m3) 125,663 309,922 318,629 LNG (tonnes) 14,609 15,058 14,776

Emissions (tonnes)

Nitrogen oxides (NOx) 2,532** 3,413** 3,100

Sulphur oxides (SOx) 93** 137** 72

Carbon dioxide (CO2) 203,074 281,562 284,400

Residual products (tonnes) Solid waste for combustion 1,065 2,948 2,956 Waste sent to landfills 67 125 98 Waste for recycling 464 1,396 1,317 Environmental figures Biowaste 470 1,199 1,314 Hazardous waste 36 41 77

A vessel generates three main kinds of wastewater – grey water from showers Wastewater pumped ashore (m3) and other washing activity, black water from toilets, and bilge water that is Grey and black water 120,717 280,576 286,836 separated from water in engine rooms and contains traces of oil. Bilge water 7,148 9,725 8,520

3 Nitrogen oxides (NOx) Sulphur oxides (SOx) Carbon dioxide (CO2) Waste oil (m ) 977 1,462 1,402 Nitrogen oxides is an Sulphur dioxide is a colour- The main cause of global umbrella term for nitric less gas that causes cough- warming is the change in * Given in tonnes oxide and nitrogen dioxide, ing. It is produced in the the chemical composition of ** Calculation model changed to the Shipping KPI Standard version 3.0 which form when oxygen in burning of fossil fuels and the atmosphere caused by the air and nitrogen react at other materials containing humans through the emis- high temperatures. Nitrogen sulphur but also through sion of greenhouse gases, oxide emissions are thus natural processes, such as primarily carbon dioxide. VIKING LINE BUSS AB 2020 2019 2018 closely linked to combustion volcanic eruptions. Sulphur Greenhouse gases enhance processes. Nitrogen oxides dioxide is oxidized in the the ability of the atmosphere are toxic and also contri­ atmosphere and forms to capture energy emitted by Number of kilometres driven 681,084 786,943 793,385 bute to the formation of sulphuric acid, which the Earth’s surface, thereby Amount of diesel consumed (litres) 196,870 244,916 250,759 ozone together with organic contri­butes to acidification reinforcing the so-called Water use (m3) 325 328 345 pollutants (source: Swedish (source: Swedish Environ- greenhouse effect (source: Garage’s electrical consumption (kWh) 67,935 64,537 63,712 Environmental Protection mental Protection Agency). Swedish Environmental Pro- Agency). tection Agency).

VIKING LINE SUSTAINABILITY REPORT 2020 27 Viking Line’s environmental journey

End of using toxic paint for the bottoms Mariella gets a Beginning of waste of vessels. Beginning land-based power recycling on board 1980s of brushing of vessels’ supply the vessels. bottoms with the in Stockholm. help of divers.

Exhaust gas boilers Switch to fuel with are installed and used low sulphur content Grey and black water Dosage devices are Sea water to heat the vessels’ (< 0.5 per cent by are pumped ashore installed to reduce is used to cool ventilation air with 1990s weight) on all vessels to municipal waste- the use of chemicals the vessels’ the help of energy to reduce sulphur water treatment on board. ventilation air. recovered from oxide emissions. plants. flue gases.

All vessels and Humid air motor (HAM) technology the main office are is installed on Mariella. Catalytic (SCR) Processed bilge water is Recycling of biowaste certified in compliance HAM is the only method of its kind converters are installed pumped ashore begins on Viking XPRS (2008), 2000s with ISO 14001 in the world and reduces nitrogen oxide on Viking Cinderella to municipal waste- Mariella (2010) and Viking Grace (2013). environmental emissions by reducing the combustion to reduce nitrogen water treatment The biowaste is transported to anaerobic management standards temperature of the vessel’s oxide emissions. plants. digestion facilities to produce biogas. (2001–2002). main engines.

Viking Line Abp’s The Ocean Marine Viking Grace is the first passenger vessel Mariella gets a In late 2014, all of subsidiary energy recovery of its size class to use entirely sulphur-free, land-based power Viking Line’s vessels Viking Line Buss Ab system is installed on liquefied natural gas (LNG) as fuel. supply in Helsinki. except Viking Grace is certified in Viking Grace. Heat Compared to oil, nitrogen and particulate Gabriella gets a switch to diesel oil compliance with is converted into matter emissions are cut by 85% and land-based power with a sulphur content ISO 14001 environ- electricity using a greenhouse gas emissions supply in both Helsinki of less than 0.1 mental management unique vacuum are cut by 15%. and Stockholm. per cent by weight. 2010- standards (2012). process. All of Viking Line’s The environmental 2020s vessels are issued performance of four Viking Grace is Public disclosure ballast water of the company’s equipped with a of carbon dioxide certificates as proof vessels rotor sail and is Rosella gets a emissions and fuel Viking XPRS gets a that the vessels comply – Viking Grace, Mariella, the world’s first hybrid land-based power consumption is land-based power with the requirements Viking Cinderella and vessel to run on both supply in Mariehamn. compulsory under supply in Tallinn set out in the Ballast Gabriella – is certified LNG and wind power the EU’s MRV Water Management under Clean Shipping (2018). Regulation (2018). Convention (2017). Index standards (2017).

VIKING LINE SUSTAINABILITY REPORT 2020 28 Viking Line Buss introduces disinfectors in its buses

As part of the effort to fight the ozone gas, which cleans the air and reduces worked with measures to mitigate infec- spread of Covid-19, Viking Line Buss is the quantity of particulate matter and tion risks and prevent infectious diseases. introducing ozone generators on ten organic substances on surfaces that people During the spring, this work was verified buses. come into contact with. through DNV GL’s My Care verification The ozone generator performs a thor- model. ough disinfecting of the vehicle. To further “We have also worked actively with pre- Volvo Buses has developed a Clean & Care protect drivers, Viking Line Buss has also ventive measures in our bus operations. programme to maximize safety in vehicles installed Plexiglas screens. Hand sanitizer is We have now chosen to increase safety by during the pandemic. available on all buses. investing in Volvo’s ozone generators to ECO3 is a disinfection unit with one of the The safety of our passengers and employ- protect our passengers and drivers”, says most effective ways of protecting the driver ees is always our top priority. Everyone unit manager Mikael Lindström, and passengers against bacteria and virus- must be able to travel safely with us. The Viking Line Buss Ab. es. The disinfector continuously produces parent company, Viking Line, has long

VIKING LINE SUSTAINABILITY REPORT 2020 29 Vikingline.com Vikingline.fi Vikingline.ax Vikingline.se Vikingline.ee Vikingline.ru Vikingline.de Vikingline.dk Vikingline.no

Follow us