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From factory to dealer Wallenius Wilhelmsen Logistics (WWL) is a leading independent provider of global factory-to-dealer transport solutions for the automotive, agricultural and construction equipment industries. The company also specialises in handling complex project cargo such as rail cars, power generators, mining equipment and yachts. WWL’s sophisticated supply chain management services ensure an efficient integration of ocean services, inland distribution, terminal handling and a comprehensive range of specialised technical services.

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WWL employs 3,000 people and deploys more than 60 modern environmentally adapted vessels, serving 20 trade routes to six continents. WWL transports four million vehicles annually: two million by sea and two million by land. Annual throughput of 33 vehicle processing centres is three million units. The company has a strong environ-mental focus and is an industry leader in developing innovative solutions to reduce its operational impacts on the environment.

SustainableWWL E nvi ron m E ntaL an d SociaL r E S pon S i b i Lity r E port 2008

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A sustainable supply chain

Asia to Europe 26

WWF16 High seas conservation with

6.9%

12%

1.39%

CO2 emissions reduction 14

NOX emissions reduction 14

Low sulphur bunker fuel 14

code of conductDoing business the right way 32

“Our business strategy and our environmental strategy are one and the same.”

Melanie Moore, Global Head of E nvironment, WWL

Dedicated

Forerunner

Social responsibility 30

Our ambition is to lead 8

Sustainable shipping

Orcelle Fund 20

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overview

To read the entire

report:

CleanerEnvironmental care 18

Ballast watertreatmentsystem

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Sustainable the obvious danger is that the environment will be forgotten in the fight for survival, which would be a disaster not only for the environment but also for logistics companies. many companies, including WWL, have already proved that good management

– management that understands why the company is in business, not just what it does – can make the company both profitable and environmentally friendly. it’s not one or the other, it’s both.

richard clayton, Editor, Fairplay International Shipping Weekly

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2008 was a year of great challenges. There was record-high demand for our services. But by year-end, growth gave way to the global economic downturn. Through the ups and downs, we are firm in our commit-ment: to make operations more sustainable and more valuable to customers.

Sustainability remains high on our agenda, as does our commitment to the 10 principles of the U.N. Global Compact. We are con-vinced that sustainable business develop-ment is crucial for the future of our compa-ny. We believe “lean and green” go together, where a lean supply chain is also the most environmentally efficient.

This year’s WWL Environmental and Social Responsibility Report consists of three main sections:

Forerunner, addressing WWL’s efforts to lead the way towards more sustainable shipping,

Cleaner, outlining the practices we employ to minimise the impact of operations on the environment and,

Dedicated, dealing with company culture, employee personal and professional develop-ment and our involvement in social issues.

This year’s report also reflects our commit-ment to efficiency measures. In your hands is a summary of this year’s report, which is available in its entirety online at 2wglobal.com.

We continue to focus on creating lasting value for our customers by increasing efficiencies, improving collaboration and finding cost- effective and creative solutions. In doing so, we are contributing to a more sustainable future.

Arild B. IversenCEO

acting responsibly

Sustainable business development is crucial for the future of our company.

arild b. iversen, CEO

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Forerunner it is our ambition to be a leader in sustainable business development with the focus on the environment, people and creating value for our customers.

arild b. iversen, CEO, Wallenius Wilhelmsen Logistics

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nothing released into the air or water

Five years ago, we set out on a journey to redefine ocean transportation as we know it today – a journey to make ocean transpor-tation more environmentally sound, more self-reliant and more sustainable.

The result? The E/S Orcelle, a concept car carrier that is powered by renewable energy and has minimal environmental impact.

Today, the E/S Orcelle still plays a pivotal role in shaping our future. She serves as a source of continual inspiration and guides our work towards a future where it is possible to achieve energy independence from fossil fuels and eliminate the use of ballast water.

Together with our owners, WWL is currently involved in three projects that may contribute to making the use of marine renewable energy a reality. Two of the projects involve fuel cell technology and wind sail power.

Zero-emission future

clear vision: design a car carrier for the future that runs in harmony with nature. a vessel that is efficient and responsible in both design and performance. a vessel that redefines what ocean transportation could be.

The third is a 10-year pilot project with solar panel manufacturer Mitsubishi Heavy Industries to verify the long-term viability of marine solar energy systems.

Four solar panels are generating electricity onboard the pure car and truck carrier, the MV Toreador, which was christened in 2008. With a maximum power output of 10 kW, the panels can provide up to 25% of the electricity required for lighting and general purposes in crew quarters. Solar panel use will reduce carbon emissions by approxi-mately two tonnes per year.

an early sketch of the E/S orcelle design concept.

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doing what’s right before environmentallegislation takes effect

Wallenius Wilhelmsen Logistics adheres to a simple philosophy: Lead, don’t follow.

We are very happy that the international convention banning the use of tributyltin-based paints on ships finally entered into force on September 17, 2008.

In 2000, before the ban was ratified, WWL prohibited the use of TBT-based antifouling paints, which poison marine life, on the ships we operate. Non-TBT alternatives were already available then, and we decided to use them instead.

By showing that environmental stewardship and good business go hand in hand, we continue to push the environmental agenda forward and challenge others to follow.

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ahead of legislation

WWL switched to tbt-free hull paints in the year 2000.

this is a tremendous victory for the marine environment, but one that is long overdue.

dr. Simon Walmsley, Director of WWF UK’s Marine Programme, on the ratification of the global ban on tributyltin (TBT) over 40 years after its negative effects were first identified.

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meeting ambitious targets

Wallenius Wilhelmsen Logistics works to reduce emissions, including carbon dioxide, sulphur oxides and nitrogen oxides from the vessels we operate.

Emissions reduction

leader

Since 2004, we have reduced co2 emissions by 18.1%; the reduction between 2007 and 2008 was 6.9%.

For the 10th consecutive year in a row, WWL used bunker fuel that contained well below the 4.5% sul-phur content mandated by international maritime organization. in 2008, the average sulphur content in the fuel we used was 1.39%.

WWL has reduced noX emissions by nearly 21% over the past 10 years. in 2008, we achieved a 12% reduction compared to 2007 levels.

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Total reduction of 18.1% between 2004 and 2008 and a reduction of 6.9% compared to 2007.

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Wallenius Wilhelmsen Logistics is leading the world’s shipowning community with its ‘green’ ship operations, having instigated several environmental policies over the years … and has taken a number of radical steps to reduce emissions.

mike Hood, Lloyd’s List, 12 June 2008

co2 emissions reduction (grams/tonne km) 1.39% average sulphur content in fuel 12% noX emissions reduction (grams/kWh)

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deep commitment to ocean protection

Wallenius Wilhelmsen Logistics and WWF, the global conservation organisation, have been working together to advance high seas conservation since 2004. In 2008, WWL renewed our partnership with WWF as the sole sponsor of its High Seas Conservation Programme for another three years.

The programme promotes sustainable stewardship of the high seas through improving vessel management in four strategic areas:

• Advancing responsible flag state be-haviour to address the use of flags of non-compliance in order to reduce unregulated and environmentally damaging operations, by ensuring flag states apply international maritime agreements and treaties.

• Combating invasive species to minimise the increasing threat to marine ecosystems from invasive species transported in ships’

ballast water tanks from one part of the world to another. WWF promotes the rati-fication and implementation of the Inter-national Maritime Organization (IMO) Ballast Water Management Convention and encourages the development of sound ballast water treatment technologies.

• Spatial planning in priority areas in order to protect sensitive marine life and ecosystems from vessel-generated impacts, such as oil spills, sewage discharge, noise and collisions with whales. Priority areas include the Arctic and the Antarctic.

• Reducing greenhouse gas emissions from the shipping sector through working with governments at the IMO to develop a robust global agreement and encouraging leading shipping companies to commit to a to significant reduction of greenhouse gas emissions and a cap in total emissions.

High seas conservation with WWF

WWL has shown it takes environmental sustainability seriously.

duncan pollard, Director of Conservation Practice and

Policy, WWF International

the marine environment produces oxygen that supports marine life and is vital in food chains both above and below the surface of the ocean.

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Our business strategy and our environmental strategy are one and the same. By partnering with our customers and stakeholders, we work diligently towards a long-term sustainable future.

Melanie Moore, Global Head of Environment, Wallenius Wilhelmsen Logistics

Cleaner

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A 2008 grant award, the first ever, from WWL’s Orcelle Fund is providing support for further development of low carbon emis-sion power systems for marine applications.

This worthy project may contribute to building full-scale commercial systems that could potentially replace fossil fuel-powered sys-tems and eliminate the carbon emissions that result from their use. A classic example of starting small, but thinking big.

With more stringent emissions regulations and higher demand for fuel efficiency, in-venting new power systems that drastically reduce CO2 emissions can be a positive step towards more sustainable shipping.

Supported by the orcelle Fund

Marine power systems that don’t release, but actually remove, carbon emissions from the atmosphere are a futuristic vision.

But if two Swedish engineers succeed with their Carbon Negative Transportation System, it will effectively render ocean transportation carbon negative.

Sustainable shipping initiatives

created in 2007, the orcelle Fund was established using the award money that Wallenius Wilhelmsen Logistics received as the 2007 recipient of the thor Heyerdahl international maritime Environmental award.

the orcelle Fund supports the development of alternative energy initiatives aimed at making shipping more sustainable.

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protecting sensitive marine ecosystems

As a global provider of ocean transportation, we walk a fine line – striking a delicate balance between keeping pace with global demand and limiting the environmental impact of our operations. We are addressing the threat to marine ecosystems posed by transporting alien marine species in ships’ ballast water at a more rapid pace than required by the Inter-national Maritime Organization (IMO). The IMO Ballast Water Convention (BWC) calls for the installation of ballast water treatment systems on all vessels. However, the convention has not yet been ratified.

In 2008, two new vessels were fitted with chemical-free ballast water treatment systems, bringing the total number of vessels that WWL operates equipped with ballast water treatment systems to three.

maintaining the balance

Fragile native ecosystems are at risk due to invasive aquatic species contained in ballast water.

We actively support the ratification of the BWC and are working with WWF to garner support from IMO member states. To further support the need to treat, rather than simply exchange, ballast water, WWL is conducting a water-sampling project in conjunction with the round-the-world Volvo Ocean Race. Crews are collecting seawater samples along the race route, testing them onboard to determine the content of microorganisms and sending results electronically to scientists for evaluation.

The project aims to: raise public awareness about invasive species, support the passage of legislation to prohibit the release of untreated ballast water into the oceans, and expand the knowledge base by collecting information about the invasive species threat.

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Skylights reduce energy use by reducing the need for electric lighting. The cooling effect of insulated double-glazed windows also helps reduce indoor heat, contributing to reduced air-conditioning power loads.

All WWL technical services centres in Oceania are certified in accordance with the ISO 14001:2004 standard.

reducing water and energy use

to conserve water, WWL’s Laverton north technical Services Facility collects rainwater for use onsite.

the WWL’s Laverton north technical Services Facility is built according to high environmental standards.

rainwater supplies 85% of water needs

Environmental considerations, such as rain-water harvesting, were a driving factor in the design and construction of WWL’s Laverton North Technical Services Facility located on the western outskirts of Melbourne.

Amid the grounds of the newly opened technical facility are huge tanks that capture rainwater to meet the facility’s water require-ments. These tanks cut demand from the municipal water supply by about 85%, and provide water to meet customer require-ments in a country where the worst drought in a century continues to cause severe water shortages and deadly wildfires.

Another environmental feature at Laverton is the natural light that streams in through the broad expanse of skylights installed on the roof of WWL’s new 8,500-square- metre workshop for vehicle and equipment processing.

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Rather than discharging equipment in the Port of Rotterdam and transporting it 50 kilometres inland for predelivery inspection and then on to dealers, equipment is dis-charged directly at the Port of Zeebrugge, Belgium, for processing at WWL’s new High & Heavy Technical Services Centre.

WWL also suggested packing machine arms, booms and shovels separately for assembly at the Zeebrugge vehicle-processing centre – another supply chain efficiency measure to save the customer time and money as well as reduce environ-mental impact.

Streamlining logistics from asia to Europe

Efficiency is topmost on the minds at Wal-lenius Wilhelmsen Logistics. We help cus-tomers look at every aspect of their out-bound supply chains – from factory to dealer – to i dentify opportunities to improve efficiency whilst working to reduce the envi-ronmental impact of moving vehicles and equipment.

Thanks to recommendations from their dedicated WWL teams in Asia and in Europe, a major construction equipment manufacturer in the Far East realised measurable cost savings, optimised scheduling, contributed to port rationalisation and reduced carbon emissions.

a more sustainable

supply chain

a major equipment manufacturer cut costs and carbon emissions by switching from road to ocean transport for direct delivery of machines to WWL’s H&H technical processing centre in Zeebrugge, belgium.

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co2 emissions cut by 174 metric tonnes

In 2008, WWL Vehicle Services Americas (VSA) reduced its carbon dioxide emissions by 174 metric tonnes by cutting fuel con-sumption by 18%. Whilst emissions volumes went down, the number of cars processed went up.

To achieve this feat, vehicle-processing centres employed several tactics, including improving equipment and vehicle mainte-nance practices, optimising routes driven within the facilities and replacing older yard units with new, more fuel-efficient ones.

Another environmental innovation for 2008: switching from a solvent to a waterborne paint system for refinishing vehicles at its 14 technical service sites in North America. This helps improve air quality by significantly reducing volatile organic compounds (VOCs) emissions.

Major strides were also made in the areas of waste reduction and recycling. WWL

VSA achieved a 27.5% reduction in the amount of waste sent to landfills.

WWL Vehicle Services Canada Ltd., for instance, eliminated 15 tonnes of carbon emissions through its broad recycling pro-gramme. The programme covers waste paint and solvents, engine oil and oil filters, anti-freeze, brake and hydraulic fluid, aero-sol cans, automotive-grade plastics, tires and batteries. The Vancouver facility alone reduced waste by 51%.

reduced emissions

and waste

in 2008, WWL vehicle Services americas cut fuel consumption by 18% and reduced waste sent to landfills by 27.5% compared to 2007.

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Everything we do revolves around our customers, our employees, and our neighbours.

Judy Burke, Global Head of Human Resources & Corporate Communication

Dedicated

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values that have shaped our company for the past decade, the Code reflects our long-standing commitment to ethical business behaviour. It covers ethics, law, human rights, workplace practices and more.

Doing business the right way is an integral part of our workday at WWL. To be able to do so, we rely on our values-based business philosophy. Through living and working by our company values, we create greater value for our customers whilst conducting business in a sustainable manner.

our pledge to do business the right way

We at Wallenius Wilhelmsen Logistics are dedicated to addressing global challenges. We are responsible for satisfying customers; providing employees with a safe, challeng-ing and fulfilling work environment; protect-ing the environment; and being a good world citizen.

To be better able to deal with the challenges ahead, we formally launched the WWL Code of Conduct in 2008. Based on the

rolling out the code of conduct

by living and working by our company values, we create greater value for our customers whilst conducting business in a sustainable way.

our company values

•Customer Centered – Understand & Deliver•Empowerment – Engage & Take Responsibility•Teaming and Collaboration – Share & Contribute•Innovation – Challenge & Improve•Stewardship – Care & Respect

through living and working by our company values, we create greater value for our customers whilst conducting business in a sustainable manner.

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teaming up to create greater value for our customers

Wallenius Wilhelmsen Logistics values cultural diversity and fosters a workplace environment where all employees are able to better serve our customers worldwide.

diversity We rely on the diversity of our workforce to help us better understand, embrace and operate our global business across five continents. We strive to create an inclusive, creative and collaborative workplace.

Equal opportunity We provide equal opportunity for the employment and advancement of all em-ployees. All employment is in compliance with applicable laws, including regulations on working hours, compensation, protection of health and safety, and human rights.

Stronger through diversity

investing in employee health and well-being makes WWL stronger.

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accountability so that employees under-stand what is expected from them, how to support WWL’s overall strategy and why accomplishments achieved through values-based behaviour are recognised.

Leadership and learningTo succeed, we must continually look for new ideas beyond existing products, services and ways of working. That is why we place particular focus on opportunities to ad-vance professional and personal growth.

These include leadership development pro-grammes, including cooperation with IMD Business School; a Talent Management Programme to develop competence at all levels of the organization; and our People Performance programme, which especially recognises individual achievements attained through practising our company values.

Growth opportunitiesTaking personal responsibility for profes-sional advancement means that people here are down-to-earth, straightforward and driven.

accountabilityWWL has introduced a solid performance management system called “People Perfor-mance,” which aligns company strategy and values with planning processes and individual performance. The programme encourages

driven to succeed

WWL fosters a workplace culturethat values lifelong learning.

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transporting the mobile book bus from England to Zambia

A 30-year-old British bus filled with books enriched the lives of thousands of children in Zambia, thanks in part to Wallenius Wilhelmsen Logistics.

When British charity organization the Book Bus Foundation needed help transporting the mobile library from the UK to Zambia, our UK offices rose to the challenge.

“We were happy to help with the charity’s good cause,” says Tony White, Port and Terminal Operator for WW Terminals UK. “When we saw the photographs of the bus and the children’s smiling faces, it brought home how a small gesture can make a big difference for the children of Zambia.”

WWL employees arranged for the bus to travel the 100-mile distance from Essex to Southampton. Our staff then helped secure the books on board and prepared the bus for its two-week voyage from Southampton to Durban, South Africa.

From Durban, volunteers drove the bus into Zambia for a six-month tour of duty, visiting schools and orphanages in Lusaka, Kabwe and Livingstone to promote reading and creativity. More than 1500 children partici-pated in activities including reading, story-telling, art, drama sessions and sporting events. Plans for a repeat visit in 2009 are underway.

Spreading the word

in Zambia

WWL transported a mobile book bus from the UK to Zambia to help promote reading and creativity in this impoverished nation.

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Shipping medical supplies and a van from the U.S. and Japan to Zimbabwe

Some 80,000 Zimbabweans, including infants and children, suffer from cataracts, which can be a debilitating disease and cause blindness.

Wallenius Wilhelmsen Logistics agreed to transport medical supplies from Utah and a vehicle donated by a major automaker to the Eyes for Zimbabwe project in the impoverished African nation. In addition to the in-kind transportation of supplies and van, WWL Japan staff voluntarily donated vehicle spare parts and accessories worth approximately 180,000 JPY, or $2,000 USD.

Privately funded, Eyes for Zimbabwe was established by professional golfers on the Ladies European Tour. Now in its twelfth year of operation, Eyes has helped restore sight through cataract surgery to more than 20,000 men, women and children.

Giving Zimbabweans

the gift of sight

thanks to WWL, medical supplies and a much-needed service vehicle arrived at a privately funded Zimbabwean eye clinic to help restore sight to children and adults afflicted with cataracts.

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new ways to use renewable energy

Employee creativity is essential for the long-term success of our business. That is why WWL turned to its staff to come up with breakthrough ideas for improving the work-place. Employees were asked to submit proposals for using renewable energy at the company’s terminals and technical ser-vices facilities.

Proposals ranged from installing solar pan-els and wind turbines to purchasing green energy and using biogas to introducing the use of hydro, tidal and geothermal energy. Of these, three were selected for further testing at WWL terminals and vehicle-pro-cessing centres.

Solar power WWL vehicle-processing centres in the United States and Europe are exploring the viability of installing solar photovoltaic pan-els to provide electricity for the facilities. The next phase of the project includes plans to extend viability studies to addition-al WWL terminals and vehicle-processing centres.

putting bright ideas

to work

Wind powerWWL Zeebrugge, in cooperation with lo-cal operators, is conducting an investiga-tion on the wind power potential for elec-tricity generation at the Port of Zeebrugge. Shown above are wind turbine blades on the deck of a WWL vessel.

biogas Due to its proximity to a farming community, the WWL vehicle-processing centre in Zülpich, Germany, is investigating the use of biogas made from agricultural waste for the facility’s gas heating requirements.

preserving the planet is a partnership.

Geoff Garfield, deputy news editor, TradeWinds

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Working closely with our stakeholders

Solid relationships are crucial for sustain-able business development and profitable operations. At Wallenius Wilhelmsen Logis-tics, we strive to contribute to the economic well-being of our stakeholders, the people who affect or are affected by our business. We also strive to have a positive impact on the societies in which we operate.

For more information about our key activi-ties in 2008, visit www.2wglobal.com

our stakeholdersCustomersSuppliersEmployeesPort authoritiesTerminal managementLocal communitiesLocal and international regulatorsNon-governmental organisationsNon-profit organisationsFinancial institutionsMedia

Strengthening relationships

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At WWL, we are honoured by organisa-tions that recognise our commitment to re-sponsible enterprise, and we pledge to continue to excel.

International Freighting Weekly “The Environment Award”

Volvo Logistics“Excellence Award For Core Values”

John Deere “Achieving Excellence Programme”

The Norwegian American Trade Award

International Freighting Weekly“RoRo Operator of the Year”

Lloyd’s List Asia “Achievement in Safety & Environmental Protection Award”

American Honda“Top Vehicle Processor”

Pacific Maritime Association 59th Annual Awards

2008

recognition

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design and production: copykrafter, 2dd and carlsson communication ab. prepress and print by Wassbergs + Skotte tryckeri 2009.

nordic ecolabel brochure, 341576