Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Corporate Governance
• Human Rights
• Labor Standards
• Environment
• Community
• Customer Satisfaction
• Financial Communications
• Privacy

Environmental Achievements

• Reduced waste by >23% compared to 2002 and >35% compared to 2001
• Reduced water consumption by nearly 12%
• Reduced electrical energy consumption by more than 9%
• Reduced CO2 emissions by approximately 7% compared to 2002
• Signed an agreement for a program to prevent waste from wooden telephone poles

Social Achievements

• Introduced a customer satisfaction parameter into the overall incentive system, carrying a 30% weight on the profit bonus
• Improved customer satisfaction with customer care (various percentages reported for different segments)
• Launched Progetto Italia, a wide range of cultural, social, and sporting initiatives with a budget of €30 million
• Contributed €203.5 million to the community (calculated using management accounting data and quantitative estimates)
• Renewed the economic part of the National Collective Labor Contract for the telecommunications sector

Governance Achievements

• Implemented an organizational management model for Sustainability
• Integrated Sustainability into reporting processes
• Started dedicated planning processes for Sustainability
• Launched the Control & Risk Self Assessment (CRSA) project to identify, evaluate, and manage operational risks
• Adopted a new procedure for the Qualification of suppliers, including the criterion of ethical suitability
• Implemented an organizational model in compliance with Legislative Decree 231/2001

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied by the need for supplier audits and responsible procurement)
• Managing operational risks
• Ensuring compliance with national and international best practices in Corporate Governance
• Maintaining high customer satisfaction levels
• Balancing business growth with environmental sustainability

Mitigation Strategies

• Implemented an organizational management model for Sustainability
• Launched the Control & Risk Self Assessment (CRSA) project
• Adopted a new procedure for supplier qualification with ethical suitability criteria
• Implemented an organizational model in compliance with Legislative Decree 231/2001
• Implemented various initiatives to improve customer satisfaction and quality of service
• Implemented various environmental management systems and initiatives to reduce waste, water, and energy consumption and emissions

Supply Chain Management

Supplier Audits: More than 13,600 controls in 2003

Responsible Procurement

• Criteria of transparency and reciprocal cooperation
• Respect for Global Compact principles
• New Group Vendor Rating procedure

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Compact, Global Reporting Initiative (GRI)

Certifications: ISO 9000, ISO 14000, SA8000, UNI EN ISO 14001

Sustainable Products & Innovation

• Eco-designed cordless telephone and multimedia application device

Awards & Recognition

• Trust Us - Survey of Corporate Sustainability Reporting (UNEP)
• FTSE4Good Indexes (Global 100 and Europe 50)
• Global Ethibel Sustainability Index (ESI)
• Operational Excellence Award (Tele Management Forum)
• Best 100, the best companies to work for (Skillpass)

Environmental Metrics

ESG Focus Areas

• Ethical Sourcing
• Health & Safety
• Environmental Sustainability
• Community Engagement
• Employee Well-being

Environmental Achievements

• 98 stores recycled cardboard and plastic, recycling 11,935 tonnes of cardboard and polythene.
• Over 12 million hangers returned for reuse, saving an estimated 328 tonnes of virgin materials.
• 7.1% decrease in CO2 emissions per 1000 parcels delivered/collected

Social Achievements

• 74% of women who took maternity leave returned to work.
• Donated £879,047 to charity and community organizations; fundraising events raised an additional £841,000.
• Introduced a Whistleblowing Policy.
• Implemented a comprehensive Health and Safety program across all divisions.

Governance Achievements

• Appointed a permanent CR and Environmental Manager.
• Contents of the report verified by The Reassurance Network.
• Implemented a Code of Practice (COP) for suppliers, regularly revised and aligned with the ETI Base Code.

Climate Goals & Targets

Environmental Challenges

• Excessive overtime in some supplier factories, particularly in China and South East Asia.
• Difficulty in auditing every factory due to the large number of suppliers.
• Ensuring ethical standards are upheld for home workers.
• Increased number of accidents in 2004 (partly due to improved reporting).

Mitigation Strategies

• Prioritized audits based on volume of product, perceived risk, and strategic importance.
• Introduced a new method to capture data on product quantity supplied to target audits more effectively.
• Worked with suppliers to improve compliance with COP standards, suspending business with those failing to meet requirements.
• Participated in ETI projects to address common issues like excessive overtime.
• Implemented safety training programs and improvements in warehouses and stores.

Supply Chain Management

Supplier Audits: 378 factories audited in 2004 (28% of the supply base)

Responsible Procurement

• Code of Practice (COP) setting minimum standards for workers' rights, health, safety, welfare, and environmental protection.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Energy efficiency improvements

Reporting Standards

Frameworks Used: AA1000 Assurance Standard

Certifications: Null

Third-party Assurance: The Reassurance Network

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Garden furniture made from wood from sustainable sources (FSC certified).

Awards & Recognition

• Listed in the FTSE4Good Index

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection
• Compliance
• Sustainability

Environmental Achievements

• Four percent reduction in per unit fuel consumption in 2019.
• Delivery of AIDAnova, the first cruise ship solely powered by LNG.
• Groundbreaking pilot on AIDAperla with a lithium-ion battery storage system for propulsion.

Social Achievements

• Delivered memorable cruise experiences for 13 million guests.
• Achieved highest full-year adjusted diluted earnings per share for shareholders.
• Over $125 million in cost savings through global sourcing in 2019.

Governance Achievements

• Enhanced compliance framework and increased resources devoted to compliance function.
• Creation of an ethics and compliance program and strategic plan.
• Establishment of Compliance Committees by the Boards of Directors.

Climate Goals & Targets

Environmental Challenges

• Abrupt regulatory change preventing travel to Cuba.
• Geopolitical events in the Arabian Gulf.
• Hurricane Dorian.
• Costly unscheduled dry-dock and multiple shipyard delays.
• Unanticipated decline in consumer attitude affecting leisure travel in Continental European source markets.

Mitigation Strategies

• Changing itineraries to optimize performance.
• Implementing an action plan to accelerate demand and right-size capacity from Southern Europe.
• Analysis of marketing activities and spend to increase marketing impressions and support future yield growth.
• Increased investments in media spend.
• Improved analytical rigor in marketing and media spend.

Supply Chain Management

Responsible Procurement

• Strategic partnerships with suppliers focusing on cost, quality, service, innovation, and sustainability.

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions and other natural disasters

Transition Risks

• Increased global focus on climate change leading to additional regulatory requirements.

Opportunities

• Development of environmentally friendly fuel solutions.

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: ISO 14001

Sustainable Products & Innovation

• AIDAnova (LNG-powered cruise ship)
• Advanced Air Quality Systems
• Food waste digesters

Environmental Metrics

ESG Focus Areas

• Safety
• Gender equality
• Talent retention
• Anti-corruption
• Decarbonization
• Emissions reduction

Environmental Achievements

• Application for SBTi approval in progress (Scopes 1, 2 and full scope 3)
• All of GTT's indirect emissions (Scope 3) have been screened and will be used as a basis for defining decarbonisation levers and objectives
• Received a €4.66 million subsidy from Bpifrance for the design of an onboard CO2 capture system

Social Achievements

• Implementation of oversight of GTT's CSR policy and objectives by the Strategic Committee
• Renewal of ISO 37001 certification (anti-corruption)

Governance Achievements

• Recognition of GTT's efforts by CSR rating agencies, particularly in the area of decarbonisation (B rating from CDP)

Climate Goals & Targets

Environmental Challenges

• High price of LNG in Europe hampered sales momentum in the fourth quarter of 2022
• Exposure to Russia (ceased activities in Russia, suspended contracts)

Mitigation Strategies

• GTT remains convinced of the relevance of its solutions for LNG as fuel in the medium- and long-term
• Removed from its order book the 15 ice-breaking LNG carriers and the three GBSs relating to Russia projects

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SBTi

Certifications: ISO 37001

Sustainable Products & Innovation

• NEXT1 containment system
• Shear-Water ballast-free vessel concept
• Liquid hydrogen transport containment system
• Hydrogen carrier vessel concept
• LNG-powered and "NH3-ready" VLCC
• Three-tank LNG carrier concept
• Onboard CO2 capture system

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital Resources

Environmental Achievements

• Leasing of modern, fuel-efficient aircraft contributing to customer sustainability goals; reduced fuel consumption, emissions, and noise a priority when selecting aircraft.

Social Achievements

• Commitment to fostering a diverse and inclusive culture; 39% multicultural employees and 52% female employees as of December 31, 2023; competitive compensation philosophy with comprehensive benchmarking analysis; employee benefits including cash bonus programs, long-term incentive plan, 401(k) programs, education reimbursement, and health insurance.

Governance Achievements

• Adoption of a Code of Business Conduct and Ethics; Corporate Governance Guidelines available on the company website.

Climate Goals & Targets

Environmental Challenges

• Aircraft and engine delivery delays from manufacturers; higher operating costs for airline customers due to higher fuel costs, interest rates, inflation, foreign currency risk, labor shortages, and air traffic control system delays; lessee defaults and bankruptcies; competition from other aircraft lessors; lessees' failure to adequately insure aircraft; potential cyberattacks; conflicts of interest with fleet management clients; macroeconomic and global risks (epidemics, natural disasters, war); aircraft oversupply; export restrictions and tariffs; economic and political risks associated with doing business in foreign countries; changes in fuel costs; appreciation of the U.S. dollar; income and other taxes; environmental regulations; corporate responsibility and sustainability matters; risks and requirements related to transacting business in foreign countries; data privacy risks.

Mitigation Strategies

• Careful management and diversification of leases and lessees; managing customer concentrations and lease maturities; owning aircraft during the first third of their useful life; maintaining investment-grade credit metrics; unsecured debt financing strategy; insurance coverage (contingent liability and hull insurance); cybersecurity program; fleet management services agreements; risk management strategies; hedging strategies; tax planning strategies; compliance programs; data management practices.

Supply Chain Management

Responsible Procurement

• Sourcing many components separately to achieve lower pricing through direct bulk purchase contracts.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: MSCI