Annual Report 2017

NSB Group’s main ambition is to create value for owner and society through effective, accessible, safe and environmentally friendly transport of people and goods.
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1. Strategy and goals

In 2017, we worked on defining a new sustainability strategy – the green journey – with the clear goal that the NSB Group should be better than its competitors to take responsibility for sustainability. The strategy will ensure that we prioritize areas where we can make a significant contribution to society through our business, and through focused efforts contribute to meeting the UN’s sustainability goals.

We shall:

  • Strengthen the Group’s sustainability and improve climate contribution through long-term measures, including developing sustainable tourism destinations
  • Achieve common systematics and quality approach as a basis for environmental work, including ISO 14001 certification of all entities in the Group
  • Build a clearer green profile in our communication and marketing so that the group is identified as a leading player in sustainability and the environment

The key performance indicators for this work shall measure the sustainability performance in our daily operations and our contribution to society, such as reducing climate change.

2. Our priorities

The Annual Report including the CSR report for 2017 describe the issues that the NSB Group has identified through stakeholder and materiality analyzes, as the most closely related to our corporate social responsibility, including:

  • Help achieve the goal that transport growth shall be met by public transport
  • Ensure reliable transport
  • Eliminate injuries and deaths
  • Take responsibility for deliveries to customers and clients
  • Reduce energy and resource consumption
  • Ensure that the Group has committed employees
  • Ensure employee health, safety and the environment

3. Satisfied customers

In Ipsos MMI’s annual profile survey, “Large Norwegian companies”, NSB is among the best on corporate social responsibility and the environment, while overall impression of NSB in the survey decreased from 18th to 22nd place. NSB gets a good character from the Norwegian people on environmental awareness and social responsibility.

Within environmental awareness, NSB achieved a strong second place in this year’s survey, only beaten by Norsk Gjenvinning, with Tine in third place. This is the same order as in 2016.

In the area of social responsibility, NSB took 7th place (No. 5 last year).

Customer satisfaction
In the NSB Group, we are committed to customer satisfaction and set goals for this. The measurement is used to give us feedback on the areas we need to improve.

New customer satisfaction top score

In 2017, the passenger train operations has achieved the highest score in customer satisfaction that we have measured until now.

The main features of the customer satisfaction survey in the autumn of 2017 are:

  • The customers are more satisfied with the purchase of the tickets than before and NSB’s mobile app is one of the highest-performing sales channels
  • Better handling of bus for trains than ever measured, and positive development for the ticket purchase process
  • Significantly lower experienced punctuality and poorer assessment of deviation information than last measurement
  • The experience of information on the train, boarding, cabin comfort and on board staff stays high

Customer satisfaction for NSB Gjøvikbanen is relatively stable, and customers are mainly satisfied with the delivery. Satisfaction was 73 points, a decline of one point from 2016.

The customer satisfaction for our express buses is high and ended at 78 in 2017, one point decline from last year.

Volume development

The positive volume development for passenger train operations in Norway continues and the growth in the number of journeys this year was 6.3%.

The increase was highest in commuter and local traffic in the eastern region, but there was also a good development on Flåmsbanen, which has a high proportion of tourist traffic. There was a decline in long regional trains, and in Sweden due to change in the no. of tenders in operation.

In bus operations, the number of travels increased from 118.8 million to 121.7 million. The number of journeys in Norway and Sweden in 2017 was 85.8 (84.2) and 35.9 (34.6) million respectively, a growth of 1.9% and 3.8%. The change is mainly due to changes in the no. of tenders operated.

The freight (numbers of TEU) was reduced by 3.6% in 2017. The main reason is increased competition both on rail and from freight transport by road. However, the net ton kilometres increased due to increased activity within the system train segment.

Quality of delivery

In the passenger train operations, punctuality is continuously measured and the measurements are divided into operator-dependent and total punctuality. Operator-dependent punctuality (where only delays due to NSB are calculated) is 98% for the year, which is on par with last year. The total punctuality of NSB’s passenger trains ended at 88.4%, which is still significantly below the target. Punctuality statistics provide a good basis for dialogue between rail operators and BaneNOR (the state-owned railway infrastructure manager) to improve the overall punctuality of passenger traffic on rail.

The number of delay hours (total hours of passenger traffic delayed in 2017) ended 26 279, a decrease of 4% from last year. The share that has a direct cause in NSB is 17%, the same as last year.

NSB Gjøvikbanen AS had an average punctuality of 89 % in 2017, compared with 90% in 2016. Our passenger service business in Sweden achieved a punctuality of 88.5%, against 86.3% in 2016.

Challenges related to the infrastructure have increased slightly in 2017. Several railway lines were closed for shorter or longer periods due to flood, landslide and storms. This resulted in the cancellation of 103 freight trains, an increase from 50 in 2016. The punctuality for freight trains exceeded the target of 90%, ending at 95% (94%) within 15 minutes delivered at the terminal.

4. Satisfied and safe employees

Number of employees and man years
At the end of the year, the NSB Group has 10 858 employees, of whom 2 124 are temporary employees and 2 583 working part-time. The largest share of part-time and temporary employees is in bus operations. The number of man years is 8 964. Of the Group’s employees, 1 679 work in Sweden.

The number of employees is reduced as parts of our business due to the railway reform has been demerged from the NSB Group. In addition, the restructuring process in the passenger service business will have consequences for the future numbers of employees.

Employee satisfaction

In our employee satisfaction survey we measure two key indicators, “Work Happiness”, summarizing how our employees experience the key factors that affect work efficiency, and “Loyalty”, which provide an indication of the final intentions of our employees.

For the Group as a whole, we achieved an increase to 71 points for work satisfaction in 2017, a growth of 2 points from 2016. For loyalty the result is 80, an increase of 1 point from last year. There are no significant differences between the sexes. The job satisfaction seems to increase somewhat in line with age. Leaders have a higher level of work satisfaction and loyalty than employees.

The Group has a well established work process related to the employee satisfaction survey. Adequate tools have been established for identifying and following improvement measures, and feedback meetings are made for managers and employees, as well as own reviews in local and central working environment committees. This work is carried out both at unit level and at individual level in connection with employee interviews.

Sick leave and LTI
Customer safety starts with safe employees. We can only create the best journey, if the employees experience a safe and evolving workplace, and are motivated to help realize the Group’s vision and goals.

Sick leave for the NSB group is higher compared to last year due to an increase in NSB AS, NSB Gjøvikbanen and Nettbuss. Also, LTI (lost time injuries) is higher than last year, mainly due to an increase in NSB AS and CargoNet. Within Nettbuss, LTI is significantly higher in Team Verksted than in the rest of the company.

To ensure satisfied and safe colleagues, we will implement the following strategic initiatives:

  • Increase the Group’s follow-up of HSE internally and vis-à-vis suppliers, and reduce the number of employee injuries
  • Increase the Group’s follow-up of sick leave, with emphasis on competence transfer and joint efforts to reduce absence rate due to sickness

The proportion of women in the NSB Group is 18%. The proportion of women in the Group’s units varies between 9 and 50%. In the NSB Group’s Board, the share of women among the shareholders-elected is 60%, in the Group Management 38%, while in the business area’s top management teams the proportion ranges from 11% to 43 %. There are female top managers in the Tourism business area and in the subsidiaries NSB Trafikkservice AS and Finse Forsikring AS.

The proportion of women in management positions is 24 %, which is higher than the proportion of women among employees. Women’s average wage varies between businesses, from 88 to 104 % of the average wage for men. The main reason can be attributed to position and seniority. Average working hours for women are marginally lower than men.

Human rights, labour rights and anti-corruption work
In the NSB Group we have established ethical guidelines and guidelines for corporate social responsibility such as human rights, labour rights and anti-corruption efforts. The work on gender equality and equality is described in the Group’s personnel policy:

  • All NSB Group employees are equal, regardless of gender, age, disability, sexual orientation or religious, ethnic and cultural background.
  • We want a wide and diverse range of executives and employees, where individual qualities must be respected and appreciated.
  • Increased balance between women and men is desirable at all levels in the Group, and should be emphasized through recruitment and development.

Our business operations are in Norway and Sweden. Here, the handling of human rights and labour rights is well taken care of through the venues where the employees and the company’s management meet to discuss such conditions, and our employees have rights that are well defined through collective agreements. The employees are represented in the company’s board, and working environment committees have been established which regularly holds meetings.
In 2017, the NSB Group continued its work on internal control, including risk analysis for fraud / corruption. As part of this, we conducted a test of compliance with our ethical guidelines, as well as the quality of our accounting systems, and their ability to prevent mistakes and fraud. At the same time, a relationship analysis has been conducted to ensure that managers and close relations do not handle financial transactions where they have ownership or controlling interests.

Based on data collection from our systems, external advisors have analysed the status and recommended improvements in our systems, routines and practices. During this work no serious errors and / or incidents related to fraud / corruption have been found, but the analyses have provided the basis for measures to improve data and internal processes. Nor are we aware of criminal cases initiated against our companies or corruption-related employees. The management groups and boards of the NSB Group were informed during the year of status and development in separate internal control reviews.

In the passenger and freight train operations, ethical guidelines are part of the employment contract for new appointments. In bus operations ethical guidelines are available in the Operator’s Manual (intranet), personnel manual and mentioned / linked in the driver’s manuals. Anti-corruption training was given to key personnel in all businesses as part of this year’s internal control project, and the freight operations has introduced e-learning related to our ethical guidelines. We have created a notification channel in accordance with requirements of the Working Environment Act. One notice of discriminatory behaviour has been received in 2017, which has been handled in accordance with adopted procedures.

Proportion of immigrants

The proportion of immigrants in the NSB Group is 17.4%, an increase from 16% last year for comparable activities. The largest immigrant share is within the train cleaning services at 39% and bus at 25%, while the proportion in the passenger and freight train operations is respectively 6.5 and 3.2%. The proportion is relatively stable in all the Group’s businesses, but with a growth in bus operations.

5. The safe journey

Preparing our new strategy, we have set the goal for 2020 that the NSB Group is to be the Nordic industry leader in safety and HSE. The following three areas have priority:

  • Road safety: Safe transportation for people and goods
  • Safe customers: Customers will experience safe travel, predictable on time and quality, and with safe handling of personal data
  • Satisfied and safe colleagues: Our employees must have a safe workplace, which is developing and motivating for the employees

Traffic Safety
Traffic safety is central to the culture of the NSB Group, and employees have high competence and pride in safety work. In all the Group’s businesses we work to further reduce the number of incidents and dangerous situations.

The goal is to reduce the number of unwanted traffic events and dangerous situations so that we avoid injuries and deaths related to our operations.

Traffic safety – injuries and fatalities
No passengers died due to the NSB group’s transport activity in 2017. One third party died in a bus collision, and one employee for hire and three employees in the bus business were killed due to accidents at work. In the passenger rail operations, 3 external persons were killed in level crossing accidents. In the freight operations, 2 external persons died in level crossing accidents.

Traffic safety related to rail
For the NSB group, 22 events have been defined as railway accidents in accordance with regulations. The number of railway accidents increased from 2016, mainly due to more accidents involving injuries. The number of incidents due to passenger rail activity has increased compared to 2016. The cases are followed up by established procedures and internal investigations are implemented as required.

The causes for many of these incidents are outside the Group’s direct influence. Incidents are systematically recorded and reported to the infrastructure manager. Traffic safety measured through performance management and risk management remains a high priority, both internally and in collaboration with others.

Our traffic safety record overall is rated as satisfactory and target achievement is considered acceptable. NSB’s operations are conducted in compliance with external and internal requirements as assessed by management follow-up.

Traffic safety in bus operations
The NSB Group’s bus operations transport large numbers of passengers daily and hold great responsibility for ensuring that everyone arrives safely while no other road users are harmed in any way. As part of its road safety activities, the bus operations in their entirety hold accreditation to ISO 39001 (traffic safety). Efforts to reduce injuries and accidents have continued in 2017. The increase in the number of accidents unfortunately correlates poorly with the increased work on road safety in the bus operations.

Collisions with animals
In 2017 1,351 collisions with animals on Norwegian railways killed a total of 2,144 animals, 5% more than in 2016, and almost 10% higher than the average in the last 10 years. The largest number is elk and reindeer, and the most vulnerable route is Nordlandsbanen.

BaneNOR, in its role as infrastructure manager, coordinates preventive measures to reduce collision with animals, and has developed an action plan to reduce these, such as vegetation eradication, fencing, warning systems and speed reduction. The train companies, including NSB, are responsible for notifying the infrastructure manager after collisions.

6. We take the environment seriously

Under the Paris agreement, Norway shall reduce greenhouse gas emissions by 40 percent by 2030 compared with 1990 levels. The transport sector is the largest source of greenhouse gas emissions in Norway and must carry a significant part of emissions reductions in the years to come.

The NSB Group also has to deliver on society’s change to climate-friendly transport. This will be a requirement from public sector clients, while at the same time consumers, especially young people, increasingly focus on green solutions when making their choices. The NSB Group will take a clear position in order to build a competitive edge towards customers and clients, and has decided that sustainability is a strategic focus area for the Group.

Energy consumption
Energy efficient passenger trains
From 2013 to 2017, the NSB passenger train operations had set the goal of reducing electric power consumption by 15%. The result is a decrease of 8.3% measured in energy consumption per ton kilometre. The target was ambitious and some of the energy efficiency projects are delayed due to the railway reform. In addition, a large proportion of the flow meters on the new Flirt trains have been out of order. The tariff used to calculate power consumption is on average higher than actual consumption. The higher tariff leads to higher invoiced energy consumption.

Energy consumption in freight operations
By 2017, energy consumption per ton kilometre is reduced by 3.3%. Consumption is largely influenced by the lines that are operated and the mix between diesel and electrical operation. The main measures in 2017 are training in energy-efficient driving, improvement to locomotives, and data capture and presentation of target achievement for reduced energy consumption.

Freight rail transport represents a significantly less strain on the environment than road transport. The business relieves the roads for a significant number of long trailers, thus helping to reduce emissions, accidents and queues. In 2017, the NSB Group’s freight operations relieved the roads for approx. 177,000 trailer journeys. This represents about 700 trailers per day.

Energy consumption in the bus operations
The use of fleet management systems, which includes fuel consumption, idle driving and driving behavior, has led to reduced fuel consumption and thus emissions to the outside environment. The use of alternative fuels such as natural gas, biogas and biodiesel has been significantly expanded in recent years, as are the use of hybrid buses. The proportion of the operations driven by buses using HVO / biodiesel or gas is 46%.

Greenhouse gas emissions
For trains, NSB purchases power with certificates of origin. By purchasing these certificates of origin, NSB is helping to support producers of renewable energy. In its annual environmental audits, NSB worked on the basis of zero emissions from electric trains due to the purchase of these certificates of origin. In 2014, a change was made to a new, recommended standard for calculation and comparison of energy consumption and gas emissions for transport services. The basis for calculating our emissions from power consumption is now the Nordic electricity mix, and “well to wheel” calculations for emissions from diesel consumption.

Emissions of greenhouse gas from NSB’s operations have been significantly reduced in recent years. The main reason is a significant transition to renewable energy in bus operations, and that the Nordic electricity mix has become “cleaner” in recent years, with a larger proportion of electricity produced with renewable energy. From 2015 to 2017, emissions have decreased by 67,827 tonnes of CO2 equivalents, or 21%.

Due to organizational changes because of the railway reform, it has been challenging to get an overview of the total volume and recycling rate for waste in 2017, and especially for passenger operations. The bus operations has recorded a waste volume of 919 tonnes with a recycling rate of 75%. Corresponding figures for freight operations are 852 tonnes with a recycling rate of 92%. A complete report for 2018 is planned.

7. Responsible procurement

In the NSB Group, we are concerned that we are a responsible buyer, which specifies both quality, environment, and human rights and employee rights in our procurement.

The NSB Group buys goods and services and fixed assets for around NOK 7.5 billion a year from more than 6,000 suppliers. Of these, about 6% are registered outside Norway. Efforts to ensure compliance with social and ethical requirements in the value chain is therefore an important part of the group’s work with social responsibility. The purchasing function is set up to ensure that the NSB Group collectively uses its purchasing power to achieve optimal purchasing conditions and that the agreements / contracts NSB engages with externally ensures NSB’s interests in a satisfactory manner. We further develop our governing documents related to the Group’s procurement, and continuously pursue further training of our employees in this area. The NSB Group is a member of the Ethical Trade Initiative (IEH), which aims to promote responsible supply chains.

A minimum standard has been established through the Group’s “Ethical Guidelines for Suppliers”, which provide a basis for all acquisitions and resulting contracts. These confirm, among other things, that suppliers should safeguard basic labour and human rights in their operations.

Risk analysis is performed annually based on the Group’s and business areas purchasing plans. The risk analysis includes both environmental, social and ethical requirements as well as procurement that affect road safety. By 2017, the following procurement areas were defined as being at risk for violation of ethical and social requirements:

  • Cleaning services
  • Train maintenance services

Measures were taken in these procurements, and among other things, no more than 2 levels of subcontractors in the supply chain is accepted to avoid social dumping. There have also been introduced stricter requirements related to reporting these conditions during the contract period. Moreover, audits were implemented in the procurement of cleaning services.

Existing contracts and suppliers
Work to follow up social and ethical requirements is also done regarding existing contracts. In total, the group has more than 600 ongoing contracts registered in the contract system. This represents the suppliers with deliveries over NOK 200,000, – where the rule is that a written contract must be entered into. An analysis was made in 2017 in view of the risk of violations of social and ethical requirements. The analysis resulted in a list of the following risk areas;

  • IT operating services
  • Train maintenance services abroad
  • Reservedeler spesialproduksjon
  • Bus and taxi services
  • Cleaning Services
  • Signage and marking of rolling stock
  • Night Comfort Packs
  • Office supplies, gift and profile items, office furniture and fruit baskets
  • Hotel Accommodation
  • Clothing and uniforms

Suppliers with deliveries within risk areas are given special attention. Based on identified risk, measures are determined based on nature and severity of the risk. In 2017, audits were carried out regarding

  • Production and distribution of uniforms
  • Night Comfort Packs

There were no significant violations of ethical and social requirements in 2017.

8. Our results


9. Principles and reporting standards

As part of our group policy, NSB has established corporate recommendations for corporate social responsibility as well as ethical guidelines. These are incorporated in the NSB Group’s management system. We must follow these basic principles regarding corporate social responsibility:

  • Every business manager is responsible for ensuring that their entity safeguards corporate social responsibility as an integral part of running their operations
  • Corporate social responsibility must be incorporated in our strategic foundation and values
  • We support the principles stated in the UN’s Declaration of Human Rights and the ILO’s Core Conventions
  • We are active in preventing all forms of corruption
  • We must actively contribute to the reduction of the transport sector’s environmental impact
  • We publish the status and development of corporate social responsibility in our corporate social responsibility report each year

We apply the precautionary principle in our management of corporate social responsibility. This is achieved through application of risk analyses as a basis for business management and implementation of measures to reduce risk.

In order to ensure a satisfactory approach to the Group’s corporate social responsibility, we have conducted stakeholder and materiality analyses to identify and prioritize the areas we are going to work with. We have sorted our stakeholders into the following groupings:

  • Owner
  • National and local authorities
  • Suppliers and other partners
  • Customers
  • Employees and employee organizations
  • Interest groups and communities

For each of these, an overview of the type of dialogue, the number of meetings, and an aspect (theme) list has been recorded. The aspect list shows the most important topics that the business and stakeholders have been interested in.

Rail reform and reorganization have changed our surroundings, and these changes are also reflected in the updated materiality analysis for this year. While we have previously considered safety as a hygiene factor because the security system is thoroughly implemented in the organization, customer safety is now promised as our foremost priority. In addition, the materiality analysis shows that reliability and public transport growth is NSB’s most significant contribution to society.

Based on strategic analyses and stakeholder and materiality analyses, we have prioritized the areas we will focus on in the Group’s work on corporate social responsibility.

The NSB Group has been reporting on environmental and corporate social responsibility since the early 2000s. The report and its emphasis have evolved on the basis of materiality assessments related to the challenges facing the company and the expectations of stakeholders. Like other major enterprises, the NSB Group reports on corporate social responsibility in accordance with the Norwegian Accounting Act, Section 3-3, paragraphs (a) and (c). The report is also based on the requirements of GRI4 Core (Global Reporting Initiative G4, a voluntary standard for reporting corporate social responsibility).

The NSB Group’s auditor has commented in the auditor’s report on the information in the corporate social responsibility report and is of the opinion that the corporate social responsibility report is consistent with the financial statements and compliant with the law and regulations.