CSR report 2020 Statement for Corporate Social Responsibility cf. §99a and §99b in the Annual Accounts Act which came into force in Greenland by royal decree. About Royal Arctic Line A/S The Government of Greenland has granted Royal Royal Arctic Line A/S was formerly part of Den Arctic Line A/S an exclusive concession for the marine Kongelige Grønlandske Handel (KGH) (Royal Greenland transport of cargo to and from Greenland and between Trading Company) which started sailing to Greenland towns and villages in Greenland. The Company is in 1774. The Company has had its present name since therefore vital to Greenland. Royal Arctic Line also 1993. The Company is wholly owned by the Government operates 13 ports and harbours in Greenland and a port of Greenland and therefore owned by the people of in Aalborg. Greenland. The company’s ships and port comply with the International Ship and Port Facility Security Code (ISPS). Contents 5 Stabilization and strengthening of the foundation 14 Work environment and safety 14 At sea 7 CSR at Royal Arctic Line 16 On shore 7 The UN’s 17 global goals for sustainable development 16 Focus on well-being 7 Structure - getting off to a good start 18 Development of skills and training 8 Special focus areas in 2020 19 Development of employee skills 8 Corporate Governance 20 Training 9 CSR Task force 22 Governance 10 Climate and the environment 22 Human rights 10 Ships’ fuel consumption 22 Anticorruption 11 Cubic metres carried 23 Suppliers and partners 11 Better use of assets 23 Diversity 12 New technology 23 Gender diversity in management 12 Ship breaking 12 Mobile cranes and vehicles running on electricity 24 Sustainable development in 2021 Royal Arctic Line - key figures This Corporate Social Responsibility (CSR) report provides an insight into the initiatives and activities that have taken 2020 2019 2018 place in 2020 and which directly support the company’s Ships 12 11 11 goal to revitalize the company’s work regarding environ- Port terminals 14 14 14 mental and social responsibility, including status for the Employees 755 756 760 efforts that support the company’s work to contribute to the UN’s 17 Sustainable Development Goals. There is an increase in number of ships because from 2020 we have chosen to include Sarfaq Ittuk, which belongs to This report is aimed at our owners, our customers and our Arctic Umiaq Line, a subsidiary of Royal Arctic Line. This is partners. The purpose is to include and show the status of in order to obtain a complete picture of the company’s fuel the ongoing process surrounding our work with social consumption. The number of employees represents the responsibility and sustainable development. average number of full-time employees at the end of the year and comprises all personnel groups. This document is an unofficial translation of the Danish original. In the event of any inconsistencies the Danish version shall apply. At Royal Arctic Line, we take our social and environmental responsibility seriously. Stabilization and strengthening of the foundation As a provider of crucial infrastructure in Greenland, Royal the further process of selecting global goals as well as con- Arctic Line plays an important role in society. We are aware crete efforts and objectives will be identified. of our role as partner, supplier, buyer and employer and not least the importance we have to our owner, the Government Concrete initiatives have been taken to increase utilization of of Greenland, and thereby the people of Greenland. our capacity, particularly on the stretches where seasonal fluctuations and the relationship between export and import Our priorities, choices and actions have great influence on make this possible. We have entered into an agreement with those we serve, those we work with, our employees and not DHL Global Forwarding, the agent on Iceland that under- least the surrounding community and environment. takes sales on behalf of Royal Arctic Line, which provides an opportunity to increase earnings as well as to increase In 2020, our long-standing strategy for creating the best exploitation of capacity across the Atlantic. conditions for doing business with Greenland culminated with the vessel sharing agreement with Eimskip and the In 2020, a series of opportunities arose making it possible implementation of our new route structure with calls at more for us to try out initiatives to reduce our negative impact on ports. All that is missing now, is delivery of three ships in our the environment. These opportunities occurred in collabora- comprehensive fleet renewal, where we have welcome a tion with research institutes with a focus on reducing our series of new ships, but also waved goodbye to some of the CO2 footprint. We have great hopes for these research ships that for many years have ensured delivery of supplies projects and look forward to entering into partnerships in the to, from and within Greenland. future that contribute with new knowledge and research in our efforts to lift our social and environmental responsibility. Our goal for 2020 was to increase focus on our social and environmental responsibility. In order to execute our ability to Like the rest of the world, Royal Arctic Line has felt the ef- set value-creating goals and at the same time measure fects of the corona pandemic. The pandemic has involved these, a series of functions were established in the company postponing activities, but has also taught us new ways of in order to support our ability to collect data and measure working together. We have gained valuable insight into the our efforts. possibilities that lie in working from home and in flexible working hours and this lead to concrete initiatives that will It was planned to start this work in the first half of the year, have an effect upon our ability to increase the well-being of but due to delays in delivering the ships and with that, the our employees. start of our new route structure, the work was postponed until the end of the year. The well-being of the employees is very important to man- agement and a targeted effort to strengthen employees’ job A CSR Task Force was established to map the positive and satisfaction resulted in 2020 in the highest overall job satis- negative influences on our business and on the community faction ever recorded in the organization since the introduc- in order to ensure that our efforts give the greatest possible tion of these evaluations 10 years ago. value in our work to support the UNs global goals. Recom- mendations from this Task Force are taken into 2021, where With this, we hope you enjoy reading this. Royal Arctic Line A/S Verner Hammeken Aviâja Lyberth Lennert Peter Christoffersen CEO Deputy CEO CFO 5 NO ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER POVERTY HUNGER EDUCATION EQUALITY AND SANITATION AFFORDABLE AND DECENT WORK AND INDUSTRY, INNOVATION REDUCED SUSTAINABLE CITIES RESPONSIBLE CLEAN ENERGY ECONOMIC GROWTH AND INFRASTRUCTURE INEQUALITIES AND COMMUNITIES CONSUMPTION AND PRODUCTION CLIMATE LIFE BELOW LIFE PEACE AND JUSTICE PARTNERSHIPS ACTION WATER ON LAND STRONG INSTITUTIONS FOR THE GOALS THE GLOBAL GOALS For Sustainable Development 6 Royal Arctic Line’s formal CSR strategy dates back to 2012. CSR at Royal Arctic Line Since 2015, Royal Arctic Line has focused its efforts on They also focus on promoting peace and security and making it easy to do business with Greenland. This process strong institutions as well as on strengthening international of renewal has brought about big changes for the company partnerships. and the way in which the company’s employees work today. It has been a stormy voyage that has required the full focus The new agenda recognizes that social, economic and of the employees upon the operational and process environmental development, peace, security and challenges that occurred on the way. international cooperation are closely connected and that it requires a structured and integrated effort to achieve The company’s present efforts regarding CSR have not sustainable development results. been affected, but it has been necessary to postpone development work in the area. The goal was to start development work at the beginning of 2020, but due to Structure - getting off to a good start delays in the start of the new route structure, it was decided Royal Arctic Line wants to support UN’s 17 global goals for that part of this work, including mapping of the company’s sustainable development. A structured process started in positive and negative impact on the climate, the environment 2020 to expose the company’s present efforts as well as the and society were postponed until the end of the year. company’s positive and negative impact on business, environment and society. This preliminary work was still in force at the end of 2020 and work with exposure will The UN’s 17 global goals for continue in 2021. sustainable development In September 2015, the World’s leaders adopted a series of Organizationally, a number of functions have been created, ambitious goals under the auspices of the UN, today known including Business Control and Compliance functions to as the UN’s 17 Sustainable Development Goals. support the formal reporting in future. The organizational structures are therefore in place for future work. The global goals define 17 concrete goals with a combined 169 targets which all commit to UN’s 193 member countries The goal is clear; Royal Arctic Line wants to make a positive to completely eradicate poverty and hunger in the world, to contribution to UN’s 17 global goals. Furthermore we want reduce inequalities, to ensure good education and better to ensure that the initiatives and efforts that have been health for all; decent jobs and more sustainable economic identified in the exposure process are the initiatives and growth.