Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Scope 1 GHG emissions by 7% in 2020 compared to 2019, primarily due to increased efficiency and reduced distance traveled.
• Ballast water treatment systems in place on 93% of the fleet in 2020 (increased from 15% in 2019), aiming for 100% in 2022.
• Zero spills or discharges to air in 2020.

Social Achievements

• Improved Lost Time Incident Rate (LTIR) to 0.34 in 2020 from 1.05 in 2019.
• Signed the Neptune Declaration to mitigate the impact of Covid-19 on seafarers.
• Adapted seafarer seminars to an online format in response to Covid-19 restrictions.

Governance Achievements

• No reported corruption or bribery incidents in 2020.
• No material data privacy breaches or cybersecurity incidents in 2020.
• Proactive consideration of ESG concerns by the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting crew changes and operations.
• Piracy risk in certain regions.
• Meeting increasingly strict environmental regulations and customer expectations.

Mitigation Strategies

• Implemented safety and support protocols for crews and onshore personnel.
• Made alternative arrangements for crew changes during the pandemic.
• Adopted best management practices to mitigate piracy risks.
• Investing in modern vessels with latest emission-reduction technologies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in governmental and environmental rules and regulations.

Opportunities

• Improved fuel efficiency of vessels.

Reporting Standards

Frameworks Used: SASB Marine Transportation Standard (2018)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action
• Goal 14: Life Below Water

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Diversity and Inclusion
• Ethical Conduct
• Governance

Environmental Achievements

• Best-in-class energy efficiency due to modern fleet and emission-reduction technologies.
• 100% of vessels equipped with ballast water treatment systems.
• Zero spills or discharges to air in 2021.

Social Achievements

• Maintained positive retention rates.
• Signed the Neptune Declaration to mitigate the impact of Covid-19 on seafarers.
• Zero reported corruption incidents in 2021.

Governance Achievements

• Proactive consideration of ESG concerns by the Board.
• Adoption of a whistleblower policy.
• Ongoing anti-corruption training for staff.

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions in 2021 due to increased transport work.
• Impact of Covid-19 on crew changes.
• Piracy risk in certain regions.

Mitigation Strategies

• Investment in modern vessels with emission-reduction technologies.
• Adaptations to crew management practices.
• Adoption of best management practices to protect crews from piracy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Extreme weather-related spills and vessel damage
• Disruption to sailing

Transition Risks

• Increasing regulations
• Carbon taxes and tariffs
• Low-carbon regulatory requirements
• Shifting customer requirements

Opportunities

• Becoming a low/no carbon operator
• Access to green debt
• New green activity markets
• Enhanced reputation

Reporting Standards

Frameworks Used: SASB Marine Transportation Standard (2018), TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action
• Goal 14: Life Below Water

Utilizing fuel-efficient vessels and operating strategies to reduce environmental impact and comply with regulations.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced Scope 1 GHG emissions to 2.33 MMT CO2e in 2022 (2021: 2.48 MMT CO2e)
• Achieved 100% ballast water treatment system implementation across the fleet with zero ballast water discharge incidents.
• Zero spills or discharges reported in 2022.
• Avoided an estimated 1.2 million plastic bottles per year over the past three years through a new plastics initiative.

Social Achievements

• Reduced Lost Time Incident Frequency (LTIF) to 0.5 (2021: 0.71) with five reported incidents and no serious marine casualties.
• Zero incidents of attempted piracy, hijacking, or kidnapping reported in 2022.
• Updated Code of Ethics to further develop DEI initiatives and expand employee training requirements.
• Welcomed a new board member, Sujata P. Kumar, increasing board diversity.

Governance Achievements

• Updated Code of Ethics to address various forms of misconduct and outline provisions for employee training.
• Established a multidisciplinary interdepartmental working group to oversee and report on DEI progress.
• No reports of corruption or bribery incidents in 2022.
• No material data privacy breaches or cybersecurity incidents in 2022.

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on the maritime industry (extreme weather, rising seas, slower economic growth)
• Need to accelerate decarbonization and meet IMO GHG emission reduction targets.
• Challenges posed by alternative low- and zero-carbon fuels.
• Risks of piracy, hijacking, and kidnapping in certain regions of operation.

Mitigation Strategies

• Maximizing energy efficiency through a modern, fuel-efficient fleet and advanced emissions reduction technologies.
• Complying with EEXI and CII regulations.
• Engaging in climate scenario analysis to assess physical and transitional risks.
• Responding to CDP’s 2023 Climate Change Questionnaire.
• Utilizing industry best practices and following guidance from governing bodies to protect against piracy.
• Implementing comprehensive health, safety, and security measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaboration with suppliers to reduce single-use plastics

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Increased frequency of extreme weather
• Extreme weather-related spill events and vessel damage
• Damage/disruption to sailing and navigation

Transition Risks

• Increasing regulations
• Carbon taxes and tariffs
• Low-carbon regulatory requirements
• Regulatory-related reductions in demand for oil and gas
• Shifting customer requirements

Opportunities

• Becoming the recognized low/no carbon operator
• Access to green debt and lowering of cost capital
• Repositioning for provision of green energy services
• Access to new green activity markets

Reporting Standards

Frameworks Used: SASB Marine Transportation Standard (v. 2018-10), TCFD

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 12

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Seafarer Wellbeing
• Responsible Ship Recycling
• Diversity, Equity, and Inclusion (DEI)
• Corporate Governance

Environmental Achievements

• Commitment to net-zero emission shipping services by 2030
• Annual measurement of carbon intensity and assessment of climate alignment of vessels
• Development and improvement of digital tools to measure greenhouse gas emissions
• Equipping all vessels with ballast water treatment systems
• Expected reduction of at least 3% in fuel costs and 100,000 tons of carbon emissions annually through Cavitech system installation

Social Achievements

• Updated Code of Ethics to support DEI initiatives
• Support for the principles of the Sea Cargo Charter
• Signing the Neptune Declaration on Seafarer Wellbeing and Crew Change
• Membership in ISWAN, Trident Alliance, Intertanko ESG Working Group, and MACN

Governance Achievements

• Board of Directors oversight of ESG strategy
• Direct reporting line from environmental compliance audit and training team (SECAT) to the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Increasing scrutiny and changing expectations from investors, lenders, and market participants regarding ESG policies
• Need to comply with evolving environmental regulations (IMO, EU, US)
• Potential for labor interruptions
• Risks associated with operating vessels globally (political instability, terrorism, piracy)

Mitigation Strategies

• Development and implementation of ESG initiatives
• Compliance with relevant regulations and conventions
• Maintenance of adequate insurance coverage
• Proactive risk management strategies

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Evolving environmental regulations
• Shift in consumer demand away from oil

Reporting Standards

Frameworks Used: SASB Marine Transportation standard

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action
• Goal 14: Life Below Water

Alignment of internal policies with certain UN Sustainable Development Goals

Environmental Metrics

ESG Focus Areas

• Governance
• Environment
• Social

Environmental Achievements

• Focus on optimizing vessel design and operations to reduce GHG emissions
• Proactive approach to hull and engine maintenance and use of high-quality fuels
• Minimizing waste onboard vessels and reducing energy consumption and single-use consumables onshore
• Regular assessment of essential business travel to reduce footprint
• Installation of ballast water exchange systems
• Adoption of ship routing measures to protect sensitive sea areas
• Acoustic noise reduction

Social Achievements

• Initiatives to improve physical and mental wellbeing of ship and shore staff
• Partnerships to foster employee wellbeing
• Policies to encourage professional and personal development, effective communication and collaboration, and diminish prejudice
• Commitment to anti-slavery and child labor laws
• Support for charitable programs focused on critical human needs and quality of life

Governance Achievements

• Code of Conduct and Ethics to avoid conflicts of interest
• Policies prohibiting bribery, self-dealing, or inappropriate transfer of value
• Majority independent board of directors
• Zero-tolerance policy regarding illegal or unethical activity
• Anonymous hotline and internal reporting systems for allegations of misconduct
• Respect for user privacy and data protection

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions from vessels
• Minimizing environmental impact of operations
• Maintaining a safe and secure working environment
• Promoting diversity and inclusion
• Addressing potential human rights abuses throughout the value chain

Mitigation Strategies

• Collaboration with regulators, shipbuilders, and research organizations
• Optimization of vessel design and operations
• Proactive hull and engine maintenance
• Use of high-quality fuels
• Waste reduction initiatives
• Employee awareness programs
• Ballast water exchange systems
• Appropriate ship routing measures
• Acoustic noise reduction
• Employee wellness initiatives
• Policies to promote diversity and inclusion
• Due diligence to ensure respect for human rights throughout the value chain

Supply Chain Management

Climate-Related Risks & Opportunities