DFDS CR 2015 REPORT CONTENTS

2 DFDS and Corporate Responsibility 3 Safety and security 7 People 10 DFDS’ community involvement 12 Environment 16 Freight customers 18 Our passengers 20 Procurement 21 Stakeholder relations WE AIM TO ACT RESPONSIBLY IN ALL WE DO – EVERY DAY

DFDS aims to act responsibly when we carry The structure of our work on passengers and freight on our ships, and corporate responsibility provide transport and logistics solutions to DFDS’ work on corporate responsibility is manufacturers. coordinated and governed by a CR Committee that reports to executive management. The This includes goals for reducing our impact on committee is headed by our sustainability the environment, keeping people and goods and public affairs department. safe, securing jobs and good working conditions, taking social initiatives and being a diverse BOARD OF DIRECTORS company as regards nationality, gender, race and age. We also act to protect our company against fraud and to communicate and engage EXECUTIVE MANAGEMENT with our stakeholders in a trustworthy manner.

This is all part of our efforts to create value, CR COMMITTEE both for society and our stakeholders.

SUSTAINABILITY & PROCUREMENT Every year, we strive to make progress in our PUBLIC AFFAIRS corporate responsibility work in line with our operating model of making continuous impro- INVESTOR HR vements, THE DFDS WAY. In 2015 we decided RELATIONS to join the UN Global Compact – the UN’s gui- ding principles on business and human rights. MARINE STANDARDS COMMUNICATIONS In the following pages, we report on the re- sults of our CR work in 2015, our policies, our processes and systems, and our plans for se- SALES curing that we are aiming higher in the future. About the report This report has been drawn up in accordance with the principles Niels Smedegaard for content and quality outlined in the Global Reporting Initiati- President and CEO ve’s sustainable reporting guidelines.

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fety performance that reflects the actual risk Enhanced safety training SAFETY AND to individual employees and can be compa- The accidents are, by and large, caused by in- OUR APPROACH red from year to year. dividuals’ actions rather than by a failure of Safety management is operated by SECURITY safety management systems, which is a the local management teams to main- Overall improvement in safety performance in continuing trend from 2013 and 2014. There- tain flexibility and proportionality of ASHORE 2015 from 2014 fore, the solution is to increase individuals’ response based on risk. Thus, more Overall, safety performance is currently the personal awareness of safety as part of the safety controls and formalised inspe- best it has been since the benchmarking star- overall development of DFDS’ safety culture. ction regimes are operated for higher ted in 2012. Group Accident Frequency Rate In order to raise awareness and knowledge risk activities (port terminals) than of 5.07 passes the 15% improvement target about safety among staff, DFDS has introdu- lower risk activities (offices). Highlights of 5.80. This improvement is especially plea- ced e-learning safety modules so people can ·· No fatalities recorded in 2015 sing as it is against a back-drop of continued receive online safety training. This has greatly The national and international safety ·· Accident frequency decreased acquisition of new business. improved the number of people who have re- legislation applicable across the DFDS ·· Accident severity decreased ceived safety training. In 2015, 4,706 e- Group has a common basis in EU legi- ·· Most accidents caused by individual’s learning modules were completed. That is ap- slation. This allows for an internal GROUP 2012 2013 2014 2015 actions rather than failure of systems proximately twice as many as in 2014, safety management standard for the ·· E-learning tool enhances safety training and LTAs* 39 48 45 40 largely due to significant take-up by seafarers DFDS group based on a UK model of AFR* 6.86 7.10 6.22 5.07 raises awareness of safety risks on board ship. There is a suite of six core safe- safety management. *AFR (Lost-Time Injury) Accident Frequency Rate ty modules with common applicability across Lower accident frequency and less severe *LTA Lost-Time Injury Accident the Group (Risk Assessment, Fire, Manual REPORTING injuries Handling, Slip/Trip, Display screen Equipment • The reporting system is to not over- “Safety culture development is comple- Injury severity (represented by average lost and Environment) plus several site specific burden small low-risk units and still men-tary to the overall culture of The DFDS working-days per LTA in 2015) also signifi- modules such as food safety for Belfast – and allow reporting of injury accident de- Way, which among other things promotes cantly decreased (13.5 days compared to 26 each module takes approximately 30 minutes tail and gereation of causal analysis. continuous improvement and sharing of best days in 2014). to complete. A module is only counted as com- • The network of ‘data responders’ practices.” Richard Baines, DFDS Group HSE plete when an 80% pass mark is achieved. covers 57 operational sites • Causal analysis to inform managers Manager ·· Safety training, via the use of e-learning, of trends and feed into their ’safety has progressed with 1,711 staff now Future steps/Commitments action plans’ to ensure proactive DFDS is an organisation in continuous growth, enrolled on the system, and multiple E-learning tools will continue to contribute to management of safety. also in its land-based activities, port termi- language versions (Dutch and French) improved safety by raising awareness of sa- nals, warehouses, offices and transport ope- available. fety throughout the organisation. Dutch lan- Safety performance data is collated rations. Therefore, we have decided to mea- ·· ‘I-care’ behavioural safety initiative guage versions of the core safety modules into a monthly report made available sure our land-based safety performance by introduced in Immingham Seaways by the have been prepared to make the material mo- to management to increase causal means of an Accident Frequency Rate (AFR) local management team; this is a vanguard re user-friendly. French language modules understanding. rather than by the number of accidents. In example of what is required to drive safety were generated in 2015 and will be introdu- this way, we will get a true picture of the sa- culture improvement. ced in e-learning during 2016.

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CR REPORT DFDS CR REPORT 2015

MAIN CAUSES OF ACCIDENTS DFDS GROUP SAFETY PERFORMANCE Causal Analysis (Top 6, 2015) Jan-Dec. 2015

45 Group 2012 2013 2014 2015 40 35 LTAs 39 48 45 40 30 AFR 6.86 7.10 6.22 5.07 25 20 The new performance improvement target for 2016 will be a further 10% improvement in the AFR 15 from the 2012 baseline. 10 5 0 CAUSAL ANALYSIS Man. Han. Slip/trip Struck by Fall from Tug Struck ALL INJURY ACCIDENTS 2015 STRUCK BY MOVING moving/ height driving something MACHINERY (1%) falling fixed object HANDTOOL (2%) AXPHYSIATE (1%)

INJURY SEVERITY STRUCK BY MOVING ELECTRICAL (1%) (Average Lost-Days) for injury events in 2015 VEHICLE (4%)

Logistics LDs Seaways LDs Group Servs LDs OTHER (7%) LTAs 2015 17 LTAs 2015 23 LTAs 2015 40 MAN HAN (28%) Actual Lost-Days 332 Actual Lost-Days 208 Actual Lost-Days 540 Average LDs Average LDs Average LDs per LTA 19.53 per LTA 9.04 per LTA 13.5 STRUCK SOMETHING FIXED (7%) 2014 Av. LDs 32 2014 Av. LDs 23 2014 Av. LDs 26

AFR MOVING ANNUAL AFR-MAT Underlying Performance Trend 2015 9 8 TUG DRIVING (8%) 7 6 5 AFR. 4 3 2 1 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec FALL FROM HEIGHT (9%) SLIPTRIP (18%) 2015 2015

Logistics div. DFDS Group S/WAYS div. 2012 Av. 15% target STRUCK BY MOVING/ FALLING OBJECT (14%) 4 CR REPORT DFDS CR REPORT 2015

Highlights hagen – route, as well as our passenger their safety performance and showed a satis- SAFETY AND ·· Improvement in safety performance ships in the Baltic, served as settings for the factory average LTI frequency of 3.55 and ·· Major difference between regions in level of authorities’ security crisis-handling drills. We 1.00 respectively. SECURITY Lost Time Injuries believe that these drills are extremely va- ·· Ship grounding in luable when it comes to improving the safety However, injury severity hasn’t increased. The AT SEA ·· Ship collision off Immingham and security of our passengers and crews. many injuries reported were, with one excep- tion, of minor severity. Most of the injuries The goal of DFDS’ safety and security work is Lost Time Injuries frequency shows unsatisfac- were bruises, sore knees, back pains from Continuous improvement to keep people and goods safe. However, tory regional variations lifting, a bruised fingernail and other minor and focus on safety achieving this differs between sea and land. The Lost Time Injury (LTI) frequency rate pro- injuries. training and drills Legislation also applies differently. vides an overview of the number of work- related injuries in the past year. DFDS measu- Near-miss reports Training and drills save lives res the LTI frequency rate in work-related inci- Near misses are hazardous occurrences that, The DFDS Way is intended to enhance perfor- dents per million working hours that cause under different circumstances, could lead to mance through continuous improvements, absence from work for more than 24 hours. an incident if corrective actions are not ta- and we believe that the major tools in achie- ken. DFDS’ policy is to support the reporting ving continuous improvements in our health The development in 2015 showed a slightly of near-miss incidents in order to develop and safety standards are training and drills positive trend with a general reduced Lost best practices in avoiding and reacting effi- on board our ships. Incidents in preceding Time Injuries frequency on board our ships. In ciently to near misses. years have clearly demonstrated that the 2015, the overall frequency fell to 8.23 from training standards and frequent drills are in- 9.31 in 2014. However, the general level is In 2015, 71.2 near misses were reported on strumental in the crew’s ability to protect still unsatisfactory. This is mainly due to an average per ship. This is a satisfactory level of people, goods and the ship against the conse- unsatisfactory level on the vessels flying the reports and in line with the average number of quences of incidents such as fire on board, French flag, which had an average LTI fre- reports in 2014. It is well above our target, collisions and other major incidents. quency of 32.64 %, whereas the vessels fly- which DFDS raised to 48 per ship annually. ing the Danish and the UK flags improved In line with our strategy, DFDS also aims to participate in drills in cooperation with vario- us rescue and emergency authorities. Such special safety and security drills include ad- vanced training in crisis handling, cooperation Shipping incidents reported * 2015 2014 2013 2012 2011 and communication between DFDS and the authorities and between the various emer- Near-miss reports (average per ship) 71.2 62.3 64.5 38.5 31.7 Lost time injury frequency (LTIF) 8.23 9.3 7.0 3.3 2.0 gency teams. In 2015, several such safety Fatalities 0 0 1 0 0 and security crisis drills were carried out in . Furthermore, our ships on the Copen- * Data excludes the subsidiaries AB DFDS SEAWAYS () and DFDS Logistics AS (Norway)

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Group policy Following this incident, DFDS carried out extra DFDS’ Health, Safety and Environment Policy, audits in the fleet, and underlined the cap- OUR APPROACH which is reviewed annually by Management, tain’s duty to enforce the policy on board. In All ships are surveyed and certified is designed to deliver improvements through addition to this, we again informed about the according to international, EU and active demonstration of commitment and alcohol policy and the consequences of viola- national legislation. They are also leadership. This means practising what we ting it. No similar incidents have been recor- subject to internal audits and inspec- preach, with all managers behaving in a way ded in recent years. tions on safety, labour conditions and that demonstrates safety and accountability. security according to statutory instru- Collision with PRIMULA SEAWAYS ments and company procedures. Major incidents in 2015 On 3 December, the ro-ro vessel PRIMULA Grounding of LYSBLINK SEAWAYS SEAWAYS collided with the car carrier City of Under the International Safety Mana- On 18 February, the side-port vessel LYSBLINK Rotterdam just an hour off Immingham when gement (ISM) code, the International SEAWAYS ran aground off the west coast of entering the Humber River. No persons were Ship and Port Facility Security code Scotland. The grounding on rocks happened at injured, but the ships sustained considerable (ISPS) and the Maritime Labour Con- a speed of 12 knots. Luckily, no persons were hull damage. PRIMULA SEAWAYS could sail vention (MLC) , all maritime safety injured, but the grounding caused major dama- to Immingham powered by its own engine. measures and security factors must ge to the vessel’s hull and, unfortunately, so- The UK’s Marine Accident Investigation be reported for all ships on an ongoing me oil spill could not be avoided. However, as Branch inspected the ship and interviewed basis, and all ships must report any it was not heavy oil, but marine gas oil, it dis- the captain and the crew about the incident. incidents on board. This can be done solved relatively quickly and no major impact Their report is expected later in the year. anonymously under a ‘no blame’ poli- on the environment was detected. cy according to Company procedures Future steps / commitments in 2016 and international safety guidelines. According to a report by the UK’s Marine In its marine safety and security work in Accident Investigation Branch, a number of 2016, DFDS will strive to: Our Marine Standards experts, People deficiencies in the safety routines on board led & Ships VPs and CEO meet monthly to to the grounding. This included a breach of DF- ·· Reduce the number of Lost Time Injuries review formal ly the ships’ safety- DS’ alcohol policy that caused the first officer, crew accidents on board French-flagged related performance. Core to this pro- who was alone on the bridge, to fall asleep ships cess is a review of all safety and ope- while navigating the ship trough the sounds of ·· Maintain progress towards zero lost time rational data collected from ships in the Scottish west coast. This violation of DFDS’ accidents across the rest of the fleet readiness for inspection by maritime strict and clearly communicated zero-alcohol ·· Continue improvement in safety-related authorities. Such reviews are publis- policy led to the termination of the first offi- performance. hed to all ships and key shore-based cer’s employment contract, which is standard managers. procedure when our alcohol policy is violated.

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Highlights DFDS’ HR policy PEOPLE ·· The DFDS Way of Selling programme We will lead an international and competent MAIN LEADERSHIP TRAINING continued workforce that consistently understands our CONDUCTED IN 2015 ·· In 2015, we passed the 500 mark for customers’ needs. It is a workforce that • ZOOM is our general leadership trai- ning programme: 500 managers have Focus on training and participants in our leadership programme shows passion and thrives in an environment participated in the modular (2 x 3 ZOOM with inclusive behaviours. DFDS will at all development in 2015 days) training course since it started. ·· New senior management programme times seek to ensure we have the right candi- It has been extended with training Changes to staff because of route closures, date for a position regardless of gender, age, ·· that focuses on Change Management tonnage changes and changes to business religion, nationality or ethnicity. & Cultural Differences. ·· No fines, lawsuits or breaches of rules were registered in the HR area in 2015 A Training and Development department was MAIN PERSONAL DEVELOPMENT established in 2013 to enhance our training TRAINING IN 2015 It is vital for DFDS’ continued development to and development activities in a substantial • FOCUS is our specialist-training pro- be a preferred employer that attracts, devel- way. The department has since been expan- gramme: 75 specialists participated ops and retains employees in all job types, in ded with new staff and expertise. in 2015 all the countries in which we have activities. • Train-the-trainer: The course trains the The training conducted in 2014 falls into trainers for our passenger service de- velopment programme YES WE WILL. The purpose of our HR activities is to support three main categories: leadership training, 35 trainers were trained in 2015 people and the business in making the right personal development and sales and service • talent programme: DFDS has initiated decisions when it comes to recruitment, training. THE DFDS Way of Selling was our a programme, Horizon, to spot talents employee and management development, flagship training programme in 2014 and 2015. and to offer them a special talent de- talent spotting, performance management, velopment programme. remune­ration and benefits, as well as organi- sational efficiency. TALENT AND CAPABILITY DEVELOPMENT MAIN SALES AND CUSTOMER SERVICE TRAINING In 2015, this was done with special focus on WE ARE COMMITTED • As part of our Customer Focus Initia- leadership and personal development by me- TO HELPING PEOPLE tive, DFDS developed The DFDS WAY ans of increased training and succession plan- PERFORM AT THEIR BEST of Selling in 2013: 250 sales people ning for those next in line. There was also received a certificate in 2013 for going on The DFDS Way of Selling, a further focus on diversity and our trainee and ap- AND ACHIEVE THEIR FULL 50 participants in 2014, and in 2015 prenticeship programmes. In addition to this, POTENTIAL THROUGH another 50 participants were certified. DFDS offers an extensive introduction packa- ONGOING TRAINING AND • Furthermore, the Yes We Will passen- ge to new employees. A new programme to DEVELOPMENT ger service training continued along identify and train the talents within DFDS with other business-related sales and was introduced and 22 participants were services training. selected for the Horizon programme. HENRIK HOLCK, EVP, PEOPLE & SHIPS

7 THE RESULTS FROM OUR BEARING ENGAGEMENT SURVEY WILL BE USED TO IMPROVE MANAGEMENT AND SATIS- FACTION AND CREATE OPPORTUNITIES FOR TRAINING AND DEVELOPMENT

HENRIK HOLCK, EVP, PEOPLE & SHIPS CR REPORT DFDS CR REPORT 2015

Improved employee engagement Diversity development to be improved diversity. In our Board of Directors we have 33% continue to improve, e.g. an improvement plan Bearing 2015 – Employee Engagement Women make up 28% of DFDS’ workforce, female representation, excluding employee-ele- which is a dialogue tool to boost performan- Survey to improve satisfaction and leaders- which is on a par with our industry. However, cted members, which is the minimum required ce; a framework for Spot Awards, alignment hip and create opportunities for training and only 4% of all employees at senior management by Danish law. The Board continuously assesses of exit interviews etc. development. level are women. DFDS aims to increase not the composition of the Board with regard to only the total number of women in DFDS, but further increasing gender diversity. Future steps/commitments in 2016 During November and December 2015, DFDS we will continue to focus on increasing the num- • new way of onboarding new employees conducted our bi-­annual EMPLOYEE ENGAGE- ber of women in senior management positions Aiming higher within HR • recruitment strategy MENT SURVEY with all employees targeted. in the next couple of years. In 2015, DFDS lau- Part of our DFDS Way is performance culture • further development of internal Compared to our result in 2013 WE INCREA- nched a Talent Development Programme with and to do things a little better each day. In training programmes SED THE RESPONSE RATE FROM 76% TO 40 % female representation. In 2016 we will 2015 we reviewed many of our HR processes, • make progress on diversity policy 79%, which is good as we also increased the introduce a ‘Diversity Package’ for all managers both locally and on a group level. This has led and targets participation base by 6%. with guidelines and tools to increase gender to new processes and tools for managers to • create career paths for employees

GENDER DISTRIBUTION DISTRIBUTION OF EMPLOYEES ON LAND AND SEA AVERAGE NUMBER OF EMPLOYEES PER COUNTRY DFDS’ workforce 2015 (No. of employees) 2015 201376% 100% 7,000 7,000

6,000 6,000 80% 5,000 201579% 5,000 4,000 60% Our 2015 overall satisfaction and motiva- 4,000 tion has increased slightly, and the overall 3,000 results are very good. As is the case with 3,000 40% any company, DFDS obviously has areas for 2,000 improvement. These include areas such as 2,000 careers and possibilities for professional and 1,000 20% personal development. We have designed 1,000 a structured follow-up process for all DFDS 0 managers to work to improve their own / / Italy / Spain Holland / Belgium 0% 0 Baltic Countries / Poland / Norway results, which will also be reflected in our 2013 2014 2015 / Russia / Finland future training and development. Women Men Land Sea UK / Ireland

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Each year, we transport millions of freight where we share our experiences and contribu- DFDS’ units and passengers through communities te to developing social initiatives. CHRISTMAS LUNCH FOR THE HOMELESS close to port terminals and other facilities DFDS offered a free Christmas lunch COMMUNITY operated by DFDS. Employee welfare to homeless people on board our In partnership with the Danish union DMMA, passenger ships in and INVOLVEMENT In many communities, we are part of local we established a joint foundation to provide Oslo before Christmas. The invitations life and take an active interest in community financial support to employees covered by were issued in cooperation with local issues, including job creation and support of the agreements negotiated with the DMMA. charity initiatives and the lunch is part- DFDS supports people in need community initiatives. The foundation enables them to work part-ti- ly based on voluntary work done by through targeted programmes me if they are unable to work full-time for he- DFDS employees. About 500 homeless Some of the initiatives taken by DFDS in alth reasons. In 2015, nine people benefited people enjoyed a free Christmas lunch 2015 were: from the scheme. The agreement is unique in at DFDS. the Danish labour market. SHIPS ON MISSIONS Helping young people escape crime Our vessels sometimes participate in In Denmark, DFDS works closely with the Danish Red Cross spectacular missions, and this year High:Five project, which is a community In Denmark there are various ways of sup- ARK FUTURA was engaged in the initiative to find jobs in private companies for porting people in need via organisations and Danish Government’s effort to combat young people with a criminal record. The aim foundations. And this year DFDS decided to and halt the spread of the Ebola is to offer a way back to a crime-free life via cooperate with the Red Cross. epidemic in West Africa. The Danish a normal job. Since DFDS joined the High:five military had requested on behalf of the programme, 37 young former criminals have Kevin Helsinghof, DFDS Country Manager in UN that DFDS activate ARK FUTURA to been employed in our offices or on our ships - Denmark and Sweden, visited Kathmandu transport vehicles to West Africa. Just mainly on our ships on the Oslo – Copenhagen during the autumn to understand how far the a few weeks after the Ebola mission, route. On board a ship, the working environ- helpers can come with very few resources. was sent to ment is dedicated and supportive, and about And in close connection with the General Trabzon in Turkey on the Black Sea to 80% of the participants in the programme Secretary of the Danish Red Cross, Anders collect the last units of the military permanently leave a life of crime. Ladekarl, DFDS in Denmark launched a equipment used by German forces in large campaign involving its customers and Afghanistan. In all, BRITANNIA has been in Trabzon five times to collect DFDS has taken a leading role in this initi- managed to collect close to DKK 250,000 equipment used in Afghanistan to ative: Henrik Holck, EVP of DFDS’ People & to support the Red Cross in its humanitarian bring it back to Germany. DFDS’ role is Ships Division, has stepped in as Chairman work. to provide ship transport. of High:Five. As a result of these and other social initiatives, DFDS has been awarded a seat on the Danish Government’s advisory committee for corporate social responsibility,

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Danish community awards DFDS supported a Danish community awards initiative. The ‘Fællesskabsprisen’ HENRIK HOLCK, DFDS’ EVP OF PEOPLE & SHIPS, WAS A MEMBER OF THE award was initiated in 2014 by the Danish COMMUNITY AWARDS COMMITTEE. METTE FREDERIKSEN, FORMER MINISTER Government and aims to recognise individu- OF EMPLOYMENT AND LEADER OF DENMARK’S LARGEST POLITICAL PARTY, als and groups that put in an extra effort to WAS ALSO A MEMBER, AS WERE OTHER STAKEHOLDERS. THE PICTURE IS make their community, their workplace or FROM THE AWARDS CEREMONY ON BOARD PEARL SEAWAYS other social spaces a better place for people to live. DFDS offered to host the awards ceremony again in 2015 on a complimentary basis on our passenger ship, PEARL SEA- WAYS. Of the 1,200 initiatives which were nominated for an award, 10 were successful in winning.

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Highlights better solution for some ships compared to ENVIRONMENT ·· DFDS continued to install scrubbers using the more expensive low sulphur fuel, ·· DFDS is on track with target for reducing and it has an additional environmental bene-

CO2 emissions fit: It reduces the emission of particles from Reducing our impact on the ·· Grounding of LYSBLINK SEAWAYS caused the exhaust gas by about 80%. Therefore, environment minor oil spill DFDS believes that currently the scrubber OUR ENVIRONMENTAL POLICY: ·· Focus on reducing energy consumption solution is the best alternative when it comes ashore to the environment. OUR BUSINESS ACTIVITIES HAVE In January 2015, the new sulphur rules came DFDS is investing in refitting ships with scrub- into force, and the first year of new sulphur bers. In 2015, scrubbers were installed on AN IMPACT ON THE regulations has passed without any major six ships. This increased the number of DFDS ENVIRONMENT AND issues. While adjusting to the rules we have ships operating with a scrubber to 17 by end THEREFORE WE continued our work to reduce CO2 emissions. of 2015 and makes DFDS a leader in scrubber re-fitting globally. Other means of reducing ARE CONSTANTLY New sulphur rules and scrubbers sulphur dioxide pollution and complying with SEARCHING FOR From 1 January 2015, new sulphur rules in the new regulations, such as using LNG, are the , the and the English being considered for the future. In general, we INNOVATIVE AND Channel prohibited the use of bunker oil that believe the LNG solution is more efficient for INTELLIGENT WAYS contains more than 0.1% sulphur. Up until new ships. 2015 it was allowed to use bunker oil with TO DEVELOP DFDS IN 1.0% sulphur. A GREENER DIRECTION. LAWS AND REGULATIONS AT SEA IT IS OUR POLICY The overall aim of the rules is to reduce the Much of our environmental efforts are sulphur dioxide pollution from ships in these aimed at complying with regulations TO CONSIDER THE densely populated regions. Therefore, other and conventions issued by a number ENVIRONMENTAL means that can produce the same result are of regulators. The most important are also allowed as an alternative to using low the United Nations’ International Mari- IMPACT OF EVERYTHING sulphur oil. DFDS has successfully tested a time Organization (IMO), the European WE DO. scrubber that efficiently removes sulphur Union (EU) and the relevant national NIELS SMEDEGAARD dioxide from ships’ exhaust gases since 2009. governments. The scrubber solution can be a financially

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At the COP 21 in Paris in December, the mar- Our main means of reducing our ships’ bun- itime industry was excluded from the final kers consumption and emissions are lower document. We consider this to be unfortunate speed at sea, improved route and sailing and DFDS will naturally continue our own planning, improvements in our ship-to-shore drive to reduce greenhouse gases from our cooperation, monitoring, behaviour on board operations. and technical solutions.

DFDS on track with target for reduction of

CO2 emissions More than 95% of DFDS’ emissions stem SCRUBBER PROGRAMME CONTINUED from bunkers consumption on our ships and IN 2015 therefore, an extensive bunkers reduction DFDS installed scrubbers on 6 ships in 2015. This means that currently programme is at the heart of our efforts. In 17 ships operate with scrubbers. addition to this, DFDS has initiated a structu- red programme also to reduce our shore-ba- sed energy consumption and emissions.

At sea DFDS is on track to reach our target of fur- ther reducing energy consumption at sea by 5% from 2012 to 2017 based on the con- sumption in grammes per nautical mile per gross tonne. In 2015, the average consump- tion was 5.22 gramme per nautical miles per gross tonne. This is a 3.5 % improvement from the 2012 baseline to 2015.

In 2015, total consumption was 422,509 tonnes of oil. This is 66,200 tonnes - or 12.4 % - less than in 2014. However, this overall figure can’t be used to compare develop- ments from year to year as it is affected by the number of ships in service or sailings carried out.

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Main means for reducing fuel consumption on continuously communicating individual as board well as Group efforts in order to share best practices among ships and people. Ship-to-shore cooperation Slow steaming is essential when it comes to Monitoring reducing fuel consumption on board. Through DFDS continuously monitors fuel consump- structured efforts, we aim to find more time tion for all ships in grammes per nautical for reducing speed at sea without delays mile per gross tonne in order to have a for our customers. Therefore, ship-to-shore comparable monitoring basis for all ships. cooperation that can reduce the time in port is extremely important. This includes Complying with regulations improvements to sailing schedules, coordi- DFDS considers it to be a problem that vary- nation between ship and shore on arrival and ing legislative bodies like single nations, the departure, load planning and stevedoring. EU and the UN (IMO) introduce legislation in the same area. DFDS supports uniform Technical optimisation international regulations instead of separate DFDS continuously evaluates and invests in national legislation for the benefit of inter- new energy-saving technical solutions. They national trade. Work on implementing the EU include: MRV Regulation (EU) 2015/757 is underway. ·· e-navigation, including IT programmes, According to this regulation all vessels which plan optimal sailings based on very calling at a European port as from 1 January

detailed and continuously updated 2018 must report their CO2 emissions and the information about the ship, route, weather related ‘transport work’. Two working groups and other sailing conditions under the EU’s ESSF umbrella were formed ·· optimisation of engines to discuss and agree the implementation of ·· use of more energy-optimised propellers this regulation. DFDS is represented on one of and rudders these working groups. ·· hundreds of other technical improvements on each ship, ranging from improved pumps, 2015 was the first year in which ‘large’ organ- heating, lighting to ventilation and galley isations needed to do an energy audit under equipment. the EU’s Energy Efficiency Directive 2012/27/ EU. Due to the nature of the legislation this Improved behaviour on board means that the DFDS Group must comply Individual employees and teams can signifi- with the individual legislation of the EU coun- cantly influence energy consumption through tries in which we operate and make separate their behaviour on board. Therefore, DFDS is national reports.

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This matter is complicated due to quite var- Reducing energy consumption ying interpretations of this directive and the and emissions ashore entire process is somewhat inefficient from Ashore, at port terminals and in our ware- a company point of view. DFDS is naturally housing and road transport activities, we complying with the various national legis- strive to reduce energy consumption through lation and the Audit Report for the Danish the establishment of energy management activities was completed in December 2015. teams. The work involves a number of ini- tiatives such as replacing trucks with more Funding and incentives modern, fuel-efficient ones with larger units. A number of projects involving various envi- More efficient planning and monitoring tools ronmental enhancements to ships and port will help reduce empty-trailer driving. The facilities were submitted for funding appli- enhanced use of telematics and improved cation under the EU 2014 CEF infrastructure driving skills are also key contributors to our programme. The submission deadline was environmental programme. end-February 2015. In July 2015, four DFDS lead projects were awarded a total of EUR 9 Future environmental initiatives million in co-financing support. All our flow- There are many environmental initiatives in er-class vessels achieved the highest classifica- the pipeline that will affect DFDS in the short tion - Green - in the Clean Shipping Index, which to medium term. is a 3rd party rating of a vessels environmental performance (http://www.cleanshippingindex. In addition to the initiatives required by com/). This entitles us to certain discounts in legislation, DFDS is also working on other port fees. initiatives that go beyond these standards.

Other initiatives to enhance DFDS’ environmental performance at sea include: Our waste-handling programme, initiatives to reduce noise and other programmes which are designed to reduce the energy consump- tion through improved lighting, ventilation and automation.

Incidents in 2015 In February LYSBLINK SEAWAYS grounded in Scotland, causing a minor spill of MGO.

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Highlights 2015 ning programme. The aim is to help our sales increase the use of railways in our supply FREIGHT ·· Customer satisfaction a high strategic force gain a deep understanding of the needs chains, which means that we are moving priority and challenges of our customers’ businesses goods from road to rail. This is among other CUSTOMERS ·· Group-wide Customer Focus Initiative and and create solutions to address these needs. things an environmental decision. In line with DFDS Way of Selling continued This process calls for collective interaction the DFDS Way of operating, we are conti- ·· DFDS again voted ‘World’s leading ferry with the customer and investment of time to nuously improving the daily operations of our Greater focus on customers operator’ and ‘Europe’s leading ferry agree and construct proposals that add value logistics services through better planning and education in 2015 operator’ to their business. In order to develop the ser- tools and pooling of equipment in order to ·· Continuous monitoring of customer satis- vice quality of our sales force, the program- increase services and reduce empty driving. faction via customer surveys me awards certificates at various stages and This reduces costs and our contribution to ·· Based on feedback from the surveys con- is designed to enhance long-term develop- easing congestion on the roads, not to menti- ducted across all business units individual ment in the relationship between the custo- on emissions. and local improvement plans were put in mer and DFDS. place to secure continuous improvements for our customers. The close customer contact has also led to many enhancements such as improved com- OUR APPROACH Increasing customer satisfaction munication via text message, email or te- DFDS’ aim is to be recognised as the In 2015, DFDS continued to focus keenly on lephone with our customers if there are preferred supplier in its dealings with customer service by means of the Customer delays or disruption to services. customers. To continuously achieve Focus Initiative, CFI. this goal our actions are guided by the A desired tool for mobile booking has been five principles of DFDS’ guiding star for customer focus. A successful tool was once again the many developed for some ferry routes with infor- local staff and customer meetings, which we mation about services, or the national regula- These five principles are enshrined in see helping both our customers and us in arri- tions affecting drivers. It is in the shape of the daily working life of all DFDS offi- ving at an improved understanding of the folders in various languages as well as other ces and set measureable targets to: mutual business and challenges. The me- solutions which support our customers in etings are held at DFDS locations and at our their business. In our logistics business, it has • Deliver superior reliability and customers’ premises. At those meetings, led to the development of tracking tools so schedules customer companies are invited to join DFDS our customers in some areas can track their • Constantly bring new solutions staff meetings to present their companies, shipments on-line. to customers their products, developments and needs as • Be easy to work with well as the challenges they face. Environment-friendly solutions • Deliver customer service by empow- In addition to our general environmental ef- ered people with can-do attitudes Based on the findings, we continued to devel- forts, DFDS provides e-nvironment-friendly • Ensure we provide fast communica­ op the DFDS Way of Selling, which is a spe- transport solutions via rail and new ships. tion when it matters. cially developed DFDS sales and service trai- Apart from using larger units, DFDS seeks to

16 DFDS’ code of conduct DFDS has developed a code of conduct, which is available on DFDS’ website. It is, among other things, a tool to enable customers to feel confident about DFDS’ way of operating, including compliance with laws, regulations and ethical standards.

Acknowledgement DFDS won The Irish Export & Freight Trans- port & Logistics Award and the Export & Freight International Logistics specialist award in 2015.

Future steps / commitments in 2016 ·· Expand cooperation with major customers on health and safety ·· Launch of new website focused on best practice in health and safety and driver training ·· New driver training programme to ensure our drivers and subcontractors are both fully conversant with our standards ·· Introduction of the new planning tool of our operations system Velocity to enhance our ability to operate more efficiently and reduce empty driving and fuel consumption ·· Continue the roll-out of our mobile tracking tool Truckcom across the Logistics Division. CR REPORT DFDS CR REPORT 2015

In our passenger services, the highest priority Data protection OUR is on offering our passengers a safe and Our customer improvement projects require secure journey. More information on safety is addressing customers’ needs through analysis PASSENGERS available on pages 3 and 5. of customer information. DFDS consistently respects data privacy and complies with the A further key goal is to offer our customers European Data Protection Directive (95/46/ EC) Our passenger travel services throughout Europe an experience that meets as well as with the national data protection include short ferry route or exceeds their expectations. acts in the countries where we operate. Market- services as well as overnight ing communication is sent only to individuals To meet that goal, a special Passenger Com- who have explicitly agreed to receive it. DFDS travel on dedicated passenger petence Centre (PCC) was established in 2010 further follows the mandates of the proposed ships or combined passenger to ensure a customer-centric approach to our European General Data Protection Regulation and cargo ships. passenger business. The aim is to align pas- to ensure compliance with new regulations. senger service standards between markets, making sure that all activities and services, Passenger rights including marketing and communications, DFDS follows the European Maritime Passen- meet DFDS standards and ensure a good ger Rights Regulations (1177/2010) that were passenger experience before, during and after put in place in December 2012. In accordance travelling with DFDS. with the regulation, DFDS ensures that assis- tance is offered to disabled passengers and to Customer surveys and customer those with reduced mobility. service projects Over the years, strong insights into our cus- From booking to port facilities and, ultimately, tomers’ expectations have been developed their voyage on board a DFDS ship, passen- through ongoing and comprehensive gers with special needs are supported and Customer Satisfaction Surveys (CSS), and informed every step of the way. Other sections the more recent addition of our customer of the regulations require that DFDS provide focus. Through surveys, we ask approximate- transparency in pricing across countries and ly 20,000 passengers each year for their the entitlement of passengers to certain rights opinions to gain a deep understanding of our in the event of delays or cancellations. customers’ needs. The insight serves as a basis for continuous improvement of day-to- day operations and services on board.

18 CR REPORT DFDS CR REPORT 2015

Communication with passengers Awards DFDS places a high priority on keeping ·· World Travel Awards Winner, ‘World’s Lead- passengers informed throughout their ing Ferry Operator’ in 2011, 2012, 2013, journey. Much of this communication takes 2014 and 2015 place directly at check-in and on board the ·· World Travel Awards Winner, ‘Europe’s Lead- ships. However, a significant and increasing ing Ferry Operator’ in 2007, 2008, 2009, proportion of information is being transferred 2010, 2011, 2012, 2013, 2014 and 2015 before and after the journey via mail, internet ·· Danish Travel Award as the best passenger and social media. For overnight routes, DFDS shipping company operating between Den- will seek to inform passengers directly via mark and foreign countries for the 15th time texts, mail or telephone calls in case of major ·· Norwegian Customer Service Prize: DFDS disruption of services. won the ‘journey by boat’ category of the Norwegian Customer Service Prize in 2012, Our approach to social media is decentralised 2013 and 2014 and country-specific and is supported by an overarching DFDS social media guideline that Future steps/commitments in 2016 ensures consistency across markets. ·· Our customer focus will be continued. Sev- eral workgroups are running pilot projects To meet the demands from our customers and those results will be used to make both and to make it easier to find information short- and long-term improvements or book a journey on our websites, DFDS ·· We will use new marketing tools that will implemented new websites in the passenger allow us, based on the information that the markets in 2015. The design is responsive, customer has allowed us to store, to tailor meaning that the websites can easily be offers to those who find it relevant. This accessed via smartphones and tablets. will also limit the amount of information sent to those for whom it is not relevant Recognition ·· DFDS will implement a new booking system The DFDS approach towards meeting and in 2016. With a large in-house IT department exceeding customer expectations has been the implementation and the system require- recognized with several awards. ments will be closely monitored.

19 CR REPORT DFDS CR REPORT 2015

Highlights The IMPA ACT allows members to access a PROCUREMENT ·· Annual sourcing of goods and services for common database with information regar- CODE OF CONDUCT DKK 9bn, equal to 5,000 purchase orders ding suppliers that have already been th- Our suppliers must accept to conform to per month rough a vetting process and are therefore the DFDS Supplier Code of Conduct and DFDS Implements IMPA ACT ·· All supply contracts include our Supplier considered to comply with our Supplier Code all applicable international conventions Code of Conduct of Conduct. As many shipping companies sha- and national legislation in the country re the same suppliers, a standardised, joint where production or services are perfor- med. Specifically, our suppliers must Based on our Code of Conduct, all purchasing system, to ensure compliance throughout the respect the following: of goods and services is done on an objective industry, is expected to decrease bureaucra- basis such as selecting suppliers and pro- cy both for suppliers, who will not have to • Laws relating to child labour, coercion ducts best fitted for the purpose, price and spend time adhering to various codes of Con- or involuntary labour quality, including delivery and payment ducts, and for shipping companies, who will • Rules regarding safety and the work- terms. benefit from their peers’ assessment of joint place suppliers. • ILO Declaration on Fundamental Prin- As an objective way of choosing a supplier, ciples and Rights at Works whilst still getting the best conditions in fa- This is a cost-effective approach that will mi- • Rules relating to employee discrimi- vour of DFDS, we started to embrace procure- tigate the resources needed for monitoring nation on grounds of race, religion, ment tools such as e-RFx and e-auctions in and audits and provide leverage for ensuring age, nationality, sexual orientation or 2013. In 2015, new suppliers of major items that suppliers actually do make improve- gender such as IT services, bunker, fruit and vegetab- ments in the field of human rights including • Regulations on anti-corruption and les, dry docking and many morewere chosen labour rights, protection of the environment, anti-bribery, including all subcontrac- by means of these tools. The preparation pro- and anti-corruption issues. tors and business partners cess for e-RFx and e-auctions includes explo- • Environmental regulations that apply in the country where the product is ring new ways of enhancing cooperation on The IMPA ACT builds on the UN Guiding Princip- manufactured or the service perfor- procurement with the business units in line les and expectations are fully aligned with the med. with our new procurement strategy, which newest and strongest development within the was finalised in 2013. field of CR. In 2016 this frame work will be For procurement related to shipping, our implemented with key suppliers to DFDS. internal audit programme validates that Next steps/commitment 2015/16 a supplier is on the relevant maritime In 2015, DFDS joined the IMPA ACT, which is a After a number of successful e-auctions in authority database as required under complete responsible supply chain manage- 2015 DFDS will continue to use e-auctions as the EU Marine Equipment Directive ment programme. The programme has been an efficient tool for purchasing of products 1996. DFDS follows the Global Ship Ma- developed by Danish Shipowners J. Lauritzen and services that are suited to this method. nagement System approach to valida- and DS Norden, the leading consultancy com- ting that a supplier meets safety and pany GLOBAL CSR and the International Mari- We will continue development of efficient environmental requirements. ne Purchasing Association (IMPA). procurement tools.

20 CR REPORT DFDS CR REPORT 2015

STAKEHOLDER RELATIONS I

THE TABLE SHOWS OUR STAKEHOLDERS, HOW WE COOPERATE, AND TRACKS PROGRESS ON CR RELATED ACTIVITIES

Stakeholder WHO THEY ARE? HOW DO WE WORK TOGETHER? WHAT IS EXPECTED OF US? PROGRESS DURING 2015 PLANS FOR 2016/2017

Freight customers • Forwarding, haulage and transport • Structured reviews • Reliability, frequency and capacity • Continued roll-out of Customer Focus • Further digitization of customer services Passengers companies • KPIs • Continuous Improvement initiatives Initiative • Improved web site • Manufacturers of industrial goods • Contracts • Safety record • Recurring customer satisfaction surveys • New CRM system • Retailers and food producers • Customer surveys • Easily accessible travel/booking • Preparation of enhanced digital • Continued sales training • Individuals, families and groups • Ongoing relationships/account information customers services • Customer feedback surveys • Coach operators management • Staff customer service, including • Training of sales staff • Continued roll out of Velocity • Feedback forms on ferries claims management • Roll out of Velocity • Continued roll out of Truckcom • Via freight and passenger booking • Onboard passenger experience • Roll out of Truckcom intermediaries • Improved efficiencies, less • Development and roll out of new • Social media, e.g. Facebook, Twitter, environmental impact passenger booking system LinkedIn • Response to emerging CR requirements

Employees • 6,600 employees across 20 countries • Ongoing daily management • Healthy and safe working environment • Whistleblower model implemented • Promoting safety culture through Unions • Unions • Employee annual appraisal • Fair employment conditions • Diversity policy development and continuous training • Seafarer Associations • Weekly employee newsletter • Career development and fair reward creation of awareness • Our Bearing engagement survey findings • International Labour Organization (ILO) • Bi-annual employee survey • Training provision • New training programme for senior used to improve employees satisfaction • Regular meetings and training courses • Ethically consistent ways of working managers continued • Diversity initiatives, implementation of • Training programme aimed at leaders, • Diversity • Talent programme rolled out Talent Programme and Succession Planning specialists, talents and senior • On-line safety training programme • Continued training of managers to enable management for shore-based staff rolled out good leadership • Bearing survey carried out • Additional scrubbers to be installed in 2016

Public-sector and • IMO • Meetings via industry groups • Compliance and risk reduction • Installation of six scrubbers to comply • Additional scrubbers expected to be government agencies • Marine Accident and Fire Investigation • Compliance related communications • Security and immigration control with new sulphur emission rules installed in 2016 (land & sea) Organisations • Policy advocacy work information • On going improvement to existing • LNG studies • Health & Safety Agencies • Investigations relating to incidents arising • Accessibility scrubber installations • Analysis of lengthening of ships • Maritime & Coastguard Agencies • National government meetings and • High quality of Health and Safety • Transition to more environmentally • Implementing the EU MRV regulations

• Environment Agencies ministerial receptions practices friendly fuel carried out succesfully (reporting CO2 emissions for all vessels • Local Authorities • Promote attractions of regions/countries • Ongoing reduction of environmental and transport work) • Customs & Excise, Immigration Dept. to tourists impact, including emission reductions, • Various Port Authorities introduction of low sulphur fuels, • Highways agencies improvements to anti-foul paints, • National tourism bodies responsible ship scrapping, waste management

21 CR REPORT DFDS CR REPORT 2015

STAKEHOLDER RELATIONS II

THE TABLE SHOWS OUR STAKEHOLDERS, HOW WE COOPERATE, AND TRACKS PROGRESS ON CR RELATED ACTIVITIES

Stakeholder WHO THEY ARE? HOW DO WE WORK TOGETHER? WHAT IS EXPECTED OF US? PROGRESS DURING 2015 PLANS FOR 2016/2017

Finance • Shareholders, including anchor • Quarterly financial reporting & • Transparent, consistent and accurate • Investor meetings held in Europe and USA • Greater frequency of international shareholder Lauritzen Foundation public conference calls reporting • New DFDS Review folder, summary folder road shows • Investors • Company announcements • Access to management of annual report • Continue and further develop • Financial institutions • Investor meetings • Responsibility and reliability • New online DFDS Review report targeted loss prevention initiatives, • Insurers and brokers • International road shows • Focus on security, safety, operational • DKK 727m distributed to shareholders as required • Dialogue with analysts performance and pro-active risk in accordance with policy • Updates posted online management/loss prevention • H&M performance review and initiating • Continuous dialogue (meetings and performance based loss prevention business/insurance presentations) measures with broker/insurers, incumbent and prospective

Industry organisations • PSS – Ports Skills & Safety • PSS meetings and involvement in • Emission reductions • Installation of six scrubbers to comply • Meetings, conferences and involvement • European Community Shipowners’ management • Continuous improvement of health with new sulphur emission rules with among others ECSA, Interferry Association (ECSA) • Informal and formal meetings with and safety practices • Preparation of transition to more • Interferry peers and industry associations environmentally friendly fuel • Local Shipowner Associations • Lobbying/advocacy • DFDS’ CEO Niels Smedegaard elected • Classification Associations president of ECSA

Suppliers • Catering suppliers • Ongoing dialogue • Accessibility and accountability • DFDS joined the ImpaACT to ensure • Bunker suppliers • Audit of major road haulage contractors • Safety management systems responsible procurement • Hauliers • Mentoring of smaller road haulage • Risk assessments • Part suppliers for ship maintenance contractors • Emission reductions • Dockyards • In-house safety training spaces offered • Best value, including non-financial factors • Transport equipment manufacturers to business partners • Suppliers of goods for sales in the shops on board.

Local communities in which • Communities by our ports, terminals • Through employees • Employment opportunities • High:Five programme • Improved engagement with communities we operate and routes, our warehouses, offices • Site offices and local contact numbers • Responsible operations • Christmas lunch for homeless people where we operate and other facilities • Newsletters (e.g Rotterdam) • Management of neighbour relations in Copenhagen and Oslo • Charitable initiatives • Noise reduction initiatives • Community award in Denmark

Media, NGO’s and others • Media • Memberships of organisations • Accessibility • DFDS Connect, social media website • Further develop social media strategy • NGO’s (national/ International) • Work with specialist organisations like • Transparent, consistent and • Media dialogue as part of digitization programme • International organisations the Carbon Trust accurate information • Environmental initiatives • Lauritzen Foundation • Press Office • Environmental management and • (see above) • Range of publications and engagements performance, incl. emissions and responsible scrapping of ships

22 DFDS A/S Sundkrogsgade 11 DK-2100 Copenhagen Ø Tel. +45 3342 3342 Fax. +45 3342 3311 www..com CVR 14 19 47 11

Addresses of DFDS’ subsidiaries, locations and offices are available from www.dfds.com