Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Profit

Environmental Achievements

• Reduced VOC emissions by 60-80% during loading and up to 100% during transit on new Amundsen Class Shuttle Tankers.
• Achieved fuel savings of approximately 1.6% through weather routing in 2009.
• Reduced fuel consumption for cargo heating by more than 30% by developing optimized heating routines.
• Efficiency gains of roughly 4% from model-testing of a Propeller Boss Cap Fin, resulting in reduced fuel consumption and air emissions.
• Implemented Class Approved VOC Management Plans on all required vessels in 2010.

Social Achievements

• Maintained a voluntary staff retention rate of over 90% at sea and on shore.
• Expanded the Operational Leadership Program (OLP) to strengthen safety culture and clarify leadership expectations.
• Launched the Teekay Learning Zone (TLZ) as an interactive online university for seafarers.
• Began global rollout of an extended medical insurance plan for seafarers and their families.
• Provided all Teekay-owned vessels with onboard internet connection.

Governance Achievements

• More than 200 employees completed Foreign Corrupt Practices Act (FCPA) training (almost 75% of required employees).

Climate Goals & Targets

Environmental Challenges

• Growing menace of piracy.
• Climate change and the need to reduce greenhouse gas emissions.
• Potential costs associated with greenhouse gas regulation (estimated at $100 million annually or more if emissions permits were required).

Mitigation Strategies

• Strict compliance with best management practices to avoid piracy attacks.
• Close monitoring of intelligence information and re-routing vessels away from pirate activity.
• Working with industry bodies to influence IMO, UN, and governments to combat piracy.
• Supporting the Save Our Seafarers campaign.
• Investing in innovative solutions to reduce emissions (low-emission vessel design, optimizing vessel performance, researching sustainable technologies).
• Engaging with the International Maritime Organization (IMO) to promote global regulations to reduce greenhouse gas emissions.
• Reporting to the Carbon Disclosure Project.
• Implementing the Ship Energy Efficiency Management Plan (SEEMP).

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Greenhouse gas regulation increasing costs of doing business.

Opportunities

• Increased demand for cleaner fuels (LNG).
• Development of carbon capture and storage (CCS) projects.

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI) Application Level C

Certifications: ISM Code, OHSAS 18001, ISO 14001, ISO 9001

Sustainable Products & Innovation

• Amundsen Class Shuttle Tankers with award-winning VOC reduction system.
• Teekay Flex Shuttle stern-loading shuttle tanker design.
• New Teekay-developed Suezmax tanker design.

Awards & Recognition

• 82 Devlin Awards (CSA)
• Clean Air Award at NOR-Shipping’s Clean Shipping Awards (2009)
• BP Shipping CEO’s Outstanding Environmental Achievement Award (2007)

Environmental Metrics

ESG Focus Areas

• Health and safety of staff
• Minimizing environmental impact and climate change
• Quality of operations
• Crisis management
• Responsible business practices
• Community involvement and charitable donations

Environmental Achievements

• Substantial decrease in oil to sea through produced water (44% decrease)
• Improved energy efficiency for tankers (38% decrease in specific GHG emissions for tankers from 2010 to 2011)

Social Achievements

• Limited turnover of staff offshore (2.3%)
• 98% onshore and 86% offshore participation rate in employee survey
• 34 employees given new opportunities through rotation
• Total of 15 trainees employed in 2011

Governance Achievements

• Petrojarl Banff received OHSAS 18001 certification
• Implementation of a new joint management system for chemical management in the fleet (Chess and ChemiRisk)

Climate Goals & Targets

Environmental Challenges

• Growth in number of employees (over 20% increase from 2010 to 2011)
• Increasing trend in LTIs and MTIs
• Operating in mature fields requiring more energy input, impacting environmental results
• Managing growth while maintaining operational track record and robust financial results
• Ensuring ethical business practices and regulatory compliance

Mitigation Strategies

• Managing recruitment processes while keeping employee attrition low
• Increased focus on safety work and technical integrity of vessels
• Development of a new joint management system for chemical management (Chess and ChemiRisk)
• Development of new innovative solutions for marginal and complicated fields
• Annual acknowledgement of Standards of Business Conduct (SBC) policy from all Directors and above, and confidential reporting channels for concerns

Supply Chain Management

Responsible Procurement

• Strive to use local suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14001, OHSAS 18001 (3 vessels)

Sustainable Products & Innovation

• New turret design concept for harsh environments

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainability
• Environmental Performance
• Employee Well-being
• Community Involvement
• Financial Profitability

Environmental Achievements

• Decreased greenhouse gas emissions from 5,178,226 metric tonnes in 2011 to 4,498,030 metric tonnes in 2012 due to lower fuel consumption, slow steaming, favorable ocean currents, and propeller boss cap fins.
• Reduced sulphur oxide emissions by 18% from 2011 to 43,230 metric tonnes in 2012.
• Reduced nitrogen oxide emissions by 33% from 99,129 in 2011 to 66,361 in 2012.
• Implemented VOC recovery systems on North Sea Shuttle Tankers reducing emissions by 50 to 75 percent during loading and 100 percent during transit.
• Achieved zero spills greater than one barrel in the Teekay Conventional Fleet.
• Developed an offshore wind foundation installation vessel reducing wind farm installation costs by up to 30 percent.
• Developed the One Spirit, a next-generation tanker with 30% reduced fuel consumption.

Social Achievements

• Received 85 Devlin Awards at the Chamber of Shipping America’s annual Ship Safety Achievement Awards.
• Piloted a confidential support program in the international fleet to address financial, family, legal, and mental health challenges.
• Developed a strategic community investment program focusing on marine stewardship and conservation, and seamen welfare.
• Supported various community initiatives with donations totaling over $70,000.
• Maintained low voluntary attrition of seafarers and shore staff compared to industry levels.
• Galway Spirit crew assisted in a successful rescue operation.

Governance Achievements

• Comprehensive business conduct and policy compliance program with annual Board of Directors approval.
• Periodic office training on Standards of Business Conduct and anti-corruption training every 2 years.
• Re-aligned internal business units with external public company structure.
• Re-organized on-shore ship management operations.
• Reviewed and re-organized on-shore management processes in the shuttle tanker business.
• Successfully financed a portion of the Cidade de Itajai FPSO conversion project.

Climate Goals & Targets

Environmental Challenges

• Piracy in the South China Sea and Gulf of Aden.
• Greenhouse gas emissions.
• Other air emissions (SOx, NOx, VOCs, refrigerant gases).
• Ballast water management.
• Waste disposal at sea.
• Loss-making business activities.

Mitigation Strategies

• Strict adherence to International Maritime Organization’s Best Management Practice for Protection against Somalia Based Piracy (BMP).
• Reduced fuel consumption through slow steaming, favorable ocean currents, and propeller boss cap fins.
• Installation of slide fuel valves to address NOx emissions.
• VOC recovery systems.
• Ballast water exchange mid-voyage.
• Updated Garbage Management Plan to reflect MARPOL Annex V regulations.
• Streamlining business, enhancing financial accountability, and eliminating loss-making activities.
• Re-contracting existing offshore and LNG vessels at higher rates.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• One Spirit tanker
• Offshore wind foundation installation vessel

Awards & Recognition

• 85 Devlin Awards

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainability
• People
• Planet
• Profit

Environmental Achievements

• Received the NAMEPA 2013 Marine Environment Protection Award for efforts to preserve the marine environment.
• Achieved zero sea waste disposals (goal for 2014).
• Teekay was the first ship owner to order a Main Engine Gas Injection (MEGI) propelled LNG carrier, reducing fuel consumption by 30 percent.
• Received the 2013 Chamber of Shipping America Environmental Achievement Awards.

Social Achievements

• Safest year in Teekay’s history in terms of lost time injuries (3 LTIs, 0 fatalities).
• Raised over $200,000 in a global donation campaign to assist families of Filipino employees affected by Super Typhoon Yolanda.
• Partnered with the Vancouver Aquarium Marine Mammal Rescue Centre.
• Contributed over USD $440,000 globally to various organizations.

Governance Achievements

• Migrated operating assets from the parent company to publicly-traded daughter entities to monetize asset value and strengthen the balance sheet.
• Completed 18 debt and equity financings, raising approximately $3.5 billion.

Climate Goals & Targets

Environmental Challenges

• Increased carbon dioxide emissions (12.62 grams per tonne-mile in 2012 to 16.51 grams in 2013 due to increased vessel usage).
• Weak spot tanker rates and temporary operational issues with some FPSO units resulting in a net loss for Teekay.
• Higher tanker supply growth relative to demand.

Mitigation Strategies

• Continuing to re-deliver spot conventional tankers employed on loss-making time-chartered in contracts.
• Returning FPSO units back to full production.
• Adding profitable growth projects (Salamander FSO, HiLoad DP unit, Petrojarl Knarr FPSO).
• Improving conventional spot tanker rates.
• Diversifying sources of capital (debt and equity financings).

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• MEGI-engine LNG carriers

Awards & Recognition

• NAMEPA 2013 Marine Environment Protection Corporate Award
• 2013 Chamber of Shipping America Environmental Achievement Awards

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Greenhouse Gas Emissions
• Workforce Diversity
• Supply Chain Management
• Transparency and Ethics
• Production Regularity
• Energy Efficiency
• Environmental Impact

Environmental Achievements

• Reduced oil discharge to sea from produced water
• Reduced carbon emissions (707 thousand tons of CO2 equivalents in 2014)
• Reduced flaring through cargo blanketing systems on Voyageur Spirit and Petrojarl Knarr
• Only 4 accidental spills to sea in 2014 (4 m3 chemicals and 7.4 liters oil)
• Waste segregation rate close to 100% on Petrojarl Varg

Social Achievements

• Reduced sick leave by 20% compared to 2013 (from 5.44% to 4.27%)
• Donated more than 600,000 NOK to various organizations
• Supported community cooperatives in Aracaju and Mother Center charity in Cidade de Ostras
• Increased number of employees

Governance Achievements

• Annual acknowledgement of Standard of Business Conduct (SBC) policy by all directors and new employees
• Confidential reporting channels for accounting, fraud, or financial auditing matters

Climate Goals & Targets

Environmental Challenges

• Production regularity fell below target of 97%
• Four Lost Time Injuries (LTIs) to crew in 2014, one serious
• Declining oil prices and tough competition

Mitigation Strategies

• Investigations of LTIs to clarify causes and prevent future incidents
• Initiated several measures to improve employee safety
• Increased safety focus in 2015
• Acquired contracts for new and existing FPSOs
• Focus on operational excellence and strong HSE results

Supply Chain Management

Responsible Procurement

• Ethical conduct principles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainability
• Profitability
• Regularity
• HSEQ
• Competence
• Greenhouse gas emissions
• Workforce participation
• Supply chain management
• Transparency with respect to corruption and ethics

Environmental Achievements

• Reduction in SOx emission per vessel in 2015 compared to the previous year due to changes in MARPOL Annex VI.
• Creole Spirit, Teekay’s first LNG vessel powered with MEGI engines, completed sea and gas trials, becoming the most efficient LNG ship.

Social Achievements

• Launched "LEAD: 6 Skills to be a RockStar Leader" program in Vancouver office.
• Teekay Glasgow Training Centre obtained MCA approval for ‘Specialized Gas Training.’
• Drop in Lost Time Injury Frequency (LTIF) from 0.25 to 0.19 since 2014.
• 35 AMVER awards received for the conventional fleet.
• Successful rescue operation by Tangguh Sago.
• Teekay Singapore employees planted endangered Rosewood trees.
• Teekay Vancouver staff volunteered at We Day.
• Completion of 100-day Global Corporate Challenge.

Governance Achievements

• All onshore employees completed an online Anti-Corruption e-Learning course.
• Confidential reporting channels established through Business Conduct Reporting Tool and external hotline.

Climate Goals & Targets

Environmental Challenges

• Tough year for the energy industry and markets due to dramatically falling oil prices.
• Increase in Total Recordable Case Frequency (TRCF) despite a decrease in LTIF.

Mitigation Strategies

• Strategic pivot to operational excellence and cost leadership.
• Health and safety campaigns run in all business units.
• Launched "They count on you" campaign to avoid hand injuries in the shuttle fleet.

Supply Chain Management

Responsible Procurement

• Vendors are screened and selected with an appropriate level of scrutiny.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 ‘Core’ guideline

Certifications: ISO 14001

Sustainable Products & Innovation

• Creole Spirit (MEGI engines)

Awards & Recognition

• Environmental Achievement Award by the Chamber of Shipping of America (2015)

Environmental Metrics

ESG Focus Areas

• Safety and Sustainability
• People
• Planet
• Profit
• Climate Change
• Greenhouse Gas Emissions
• Workforce Diversity
• Supply Chain Management
• Ethical Business Conduct

Environmental Achievements

• 97 Teekay vessels received the Environmental Achievement Award from the Chamber of Shipping of America for environmental excellence (at least two years with no reportable spills, no USCG or port state citations for MARPOL violations, and no state/local pollution regulation violations).
• Teekay Shipping Ltd and Taurus Tankers qualified for the Port of Long Beach’s 2016 Green Flag Voluntary Vessel Speed Reduction Program, earning dockage reductions.

Social Achievements

• Successful rollout of the ‘Operational Leadership – The Journey’ program to enhance safety culture onboard and in global offices.
• Significant decrease in Lost Time Injury Frequency (LTIF) and Total Recordable Case Frequency (TRCF).
• Various community engagement initiatives, including the White Ribbon Campaign, Variety: Boat for Hope, and the Kiltwalk event.
• M.T. Godavari Spirit rescued a distressed fishing vessel, M.V. Baraka.

Governance Achievements

• All onshore employees completed an online Anti-Corruption e-Learning course.
• Establishment of a Business Conduct Reporting Tool and external toll-free hotline for confidential concerns.

Climate Goals & Targets

Environmental Challenges

• Rise in incident severity within the gas fleet in 2015 and early 2016.
• Need to manage fatigue among seafarers to comply with the Maritime Labour Convention (MLC) 2006.
• Increase in NOx emissions due to increased distance travelled by vessels.

Mitigation Strategies

• Launch of the Prevent Injury Campaign to promote safety culture onboard.
• Implementation of a Work Rest Hours campaign to ensure sufficient rest for crews.
• Development of an environmental strategy (2013-2018) and annual Shipboard Environmental Leadership Program to reduce emissions.

Supply Chain Management

Responsible Procurement

• Global vendors and suppliers selected with appropriate scrutiny.
• Aim for continuous improvement and ongoing evaluation of vendors complying with company’s Safety and Quality Management System and legislative requirements.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 ‘Core’ guideline

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Awards & Recognition

• Lloyd’s List Asia Tanker Operator of the Year 2016 (Teekay Tankers)
• Shell and ASL Goal Zero award (KTM Maritime)

Environmental Metrics

ESG Focus Areas

• Safety and Sustainability
• People
• Planet
• Profit
• Greenhouse gas emissions
• Workforce participation
• Supply chain management
• Corruption and ethics

Environmental Achievements

• Reduced Energy Efficiency Operational Indicator (EEOI) to 12.44 grams of CO2 per tonne-mile in 2017 from 13.58 in 2016 (8% reduction)
• Reduced SOx emissions to 43,264.61 metric tonnes in 2017 from 46,419.50 metric tonnes in 2016 (7% reduction)
• No oil spills overboard in 2017
• New E-Shuttle tankers designed to reduce annual emissions by up to 42% and fuel consumption by up to 22%

Social Achievements

• Launched Future Leaders Program (FLP) to develop maritime careers of cadets in the Philippines
• Reduced Lost Time Injury Frequency (LTIF) to 0.14 in 2017
• 108 Teekay vessels received the Jones F. Devlin Award from the Chamber of Shipping of America for operating two or more years without an LTI
• Teekay Marine Solutions received an award for work on ship-to-ship transfer development and training
• Various corporate social responsibility initiatives in Singapore, Australia, and Vancouver

Governance Achievements

• All onshore employees completed an online Anti-Corruption e-Learning course
• Confidential reporting channels established for accounting, fraud, or financial auditing concerns

Climate Goals & Targets

Environmental Challenges

• Lower spot tanker rates in 2017 compared to 2016
• Deconsolidation of Teekay Offshore in September 2017

Mitigation Strategies

• Delivery and contract start-up of several LNG and offshore growth projects
• Diverse portfolio of long-term charter contracts
• Strategic partnership with Brookfield Business Partners L.P. for Teekay Offshore
• Merger of Teekay Tankers with Tanker Investments

Supply Chain Management

Responsible Procurement

• Vendors and suppliers selected with scrutiny based on management system and procedures

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 ‘Core’ guideline

Certifications: ISO 9001, ISO 14001, OHSAS 18001, DNVGL-ST-0049:2014-08

Sustainable Products & Innovation

• E-Shuttle tankers
• ARC7 ice-breaking LNG carriers

Awards & Recognition

• Jones F. Devlin Award (108 vessels)
• Teekay Marine Solutions Award
• Green4Sea Tanker Operator Award Nominee

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainability
• Environmental Protection
• Social Responsibility
• Ethical Business Conduct
• Ship Recycling

Environmental Achievements

• Reduced SOx emissions by 17% compared to 2017
• 88% of tanker fleet and 67% of gas fleet coated with high-performance paint, reducing fuel consumption by 5%
• 21 vessels fitted with Mewis ducts & 26 vessels fitted with propeller boss cap fins (PBCF), reducing fuel consumption and CO2 emissions
• Successful trial of Variable Frequency Drive (VFD) resulting in estimated 16,480,845 Kg of CO2 emissions reduction per year

Social Achievements

• Awarded “Best Employer for Indian Seafarers in LNG segment”,
• Lada Bukharina received a Highly Commended award for Women in Shipping and Maritime Logistics
• Various CSR initiatives in Singapore, Glasgow, and Manila including donations, volunteer work, and community projects.
• Successful completion of Heritage Class project without any lost time incidents

Governance Achievements

• All onshore employees completed an online anti-corruption e-learning course
• Regular “Doing Business with Integrity” training conducted
• Risk-based integrity due diligence before engaging key suppliers/service providers

Climate Goals & Targets

Environmental Challenges

• Increase in CO2, EEOI, and NOx emissions due to changes in fleet composition (phasing out bulk carriers and adding gas vessels)
• Challenges in ensuring responsible ship recycling practices globally

Mitigation Strategies

• Implementation of stringent ship recycling process exceeding Hong Kong Convention requirements
• Joining the Ship Recycling Transparency Initiative (SRTI)
• Regular monitoring and audits of ship recycling facilities
• Investing in fuel-efficient technologies like VFDs, high-performance paint, Mewis ducts, and PBCFs
• Development of E-Shuttle tankers with significantly reduced emissions

Supply Chain Management

Responsible Procurement

• Selection of vendors based on Safety and Quality Management System procedures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes (e.g., IMO 2020)
• Market shifts

Opportunities

• Development of energy-efficient technologies

Reporting Standards

Frameworks Used: GRI G4 ‘Core’ guideline

Certifications: ISO 9001, ISO 14001, ISO 45001

Sustainable Products & Innovation

• E-Shuttle Tankers

Awards & Recognition

• Environmental Award for the E-Shuttle Tanker Concept
• Best Employer for Indian Seafarers in LNG segment
• Highly Commended award for Women in Shipping and Maritime Logistics
• Jones F. Devlin Award for 108 vessels

Environmental Metrics

ESG Focus Areas

• Emissions data and reductions
• Ship recycling
• Supply chain management
• Anti-corruption and ethics

Environmental Achievements

• Significant progress towards achieving IMO's 2030 and 2050 emission reduction targets through efficient engines, fuel optimization, and hull cleaning.
• Only one reportable incident resulting in a loss of containment over one barrel.

Social Achievements

• Named 'Shipping Company of the Year' at the International Seafarers’ Welfare Awards.
• Implementation of various seafarer welfare initiatives, including free internet, balanced diets, and 24-hour online counseling.
• Industry-leading terms and conditions of employment for seafarers.

Governance Achievements

• Implementation of an automated third-party due diligence system to screen for business ethics compliance risks.
• No external non-conformances registered in 2019.

Climate Goals & Targets

Environmental Challenges

• Meeting IMO's long-term greenhouse gas reduction strategy.
• Balancing the cost and operational challenges of scrubbers with the need to comply with IMO 2020 regulations.
• Ensuring responsible ship recycling practices globally.

Mitigation Strategies

• Fuel optimization initiatives, including hull coatings, propeller boss cap fins, and trim optimization.
• Choosing IMO 2020 compliant fuel instead of scrubbers.
• Developing a stringent ship recycling process exceeding the Hong Kong Convention and joining the Ship Recycling Transparency Initiative (SRTI).

Supply Chain Management

Supplier Audits: 19 audits in 2019; plan to audit 10 suppliers annually with focus on sustainability

Responsible Procurement

• Updated Vendor Onboarding and Vendor Evaluation procedures to incorporate an automated third-party due diligence system.
• Working with vendors on sustainability, focusing on environmentally friendly packaging and reducing single-use plastics.

Climate-Related Risks & Opportunities

Awards & Recognition

• Shipping Company of the Year (International Seafarers’ Welfare Awards)
• Innovation and Adoption of Technology (CrewConnect ceremonies)
• Environmental Achievement awards (CSA)
• Jones F. Devlin Awards (CSA)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 21% reduction in greenhouse gas emissions intensity since 2008 in Teekay LNG fleet
• More than 80% decrease in fleet sulfur oxide (SOx) emissions in 2020 across both Teekay LNG and Teekay Tankers due to IMO 2020 compliance
• Zero spills in both Teekay LNG and Teekay Tankers fleets in 2020

Social Achievements

• Enhanced employee assistance programs and increased mental health awareness training in Teekay LNG
• Introduced measures to boost morale and provide financial support for seafarers in Teekay Tankers during the pandemic
• Successfully completed 100% of overdue crew changes in Teekay LNG and 92% in Teekay Tankers by end of March 2021

Governance Achievements

• Updated corporate governance guidelines to strengthen Board oversight of sustainability commitments
• All three Teekay companies joined the United Nations Global Compact in 2020
• Executive and employee financial compensation linked to achieving annual group-wide shared goals, including ESG

Climate Goals & Targets

Environmental Challenges

• Ongoing challenges for seafarers due to the COVID-19 pandemic, including crew changes and travel restrictions
• Need to further reduce greenhouse gas emissions to meet IMO 2030 and 2050 ambitions
• COVID-19 pandemic impacted supplier audits

Mitigation Strategies

• Implemented robust safety protocols for crew changes and travel, including regular COVID testing
• Introduced measures to boost morale and provide financial support for seafarers
• Increased internet service onboard vessels
• Investing in reliquefaction systems, trim and draft optimization tools, and digital tools to optimize vessel performance in Teekay LNG
• Implementing ultrasonic propeller cleaning and high-performance silicone hull coatings in Teekay Tankers
• Three-year audit plan for critical high-value suppliers (partially impacted by pandemic)

Supply Chain Management

Supplier Audits: 6 audits completed in 2020

Responsible Procurement

• Automated third-party due diligence system (Securimate) for screening business ethics risks
• Periodic re-evaluations of critical suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Personal Safety
• Human and Labour Rights
• Workforce Diversity
• Health and Wellness
• Vessel and Cyber Security
• Business Ethics
• Climate Change
• Spills and Pollution
• Ship Recycling

Environmental Achievements

• Emissions intensity decreased by 26% in Suezmax fleet and 9% in Aframax fleet since 2008.
• Zero spills greater than one barrel.
• Zero ballast water non-compliances.
• Zero SOx and NOx non-compliances.
• Onboard consumption of single-use plastic drinking bottles reduced by 55%.

Social Achievements

• All reported incidents related to labour or human rights investigated and closed within 180 days.
• Sea staff retention of 97.0%
• Shore staff retention of 92.5%
• Future Leaders Program (FLP) resulted in eleven female graduates.

Governance Achievements

• Zero vessel security incidents.
• Zero vessel security-related non-conformances in external audits and zero security-related Port State Control (PSC) detentions.
• Zero vessel cyber security incidents.
• All business ethics breaches investigated and closed within 180 days.
• 95% of invited shore-based employees attended ‘Doing Business with Integrity’ training.
• 90% of survey respondents agreed that management actively supports integrity objectives.

Climate Goals & Targets

Environmental Challenges

• Ongoing challenges related to the COVID-19 pandemic impacting crew changes and operations.
• Achieving 40% reduction in fleet-wide greenhouse gas emissions per tonne-mile by 2030.
• Achieving 50% reduction in total fleet greenhouse gas emissions by 2050.

Mitigation Strategies

• Implemented global hybrid work model for shore employees.
• Continued precautions for seafarers, including PCR testing and encouraging vaccination.
• Investing in energy efficiency measures (hull paints, Mewis Ducts, ultrasonic propeller cleaning, FuelOpt, VFDs).
• Preparing vessels for EEXI compliance.
• Investigating new technologies to reduce emissions.
• Continuing ballast water treatment system installation program.
• Continuing plastics reduction campaign.

Supply Chain Management

Supplier Audits: 5/year

Responsible Procurement

• Automated third-party due diligence system (Securimate).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Personal Safety
• Human and Labour Rights
• Workforce Diversity
• Health and Wellness
• Vessel and Cyber Security
• Business Ethics
• Climate Change
• Spills and Pollution
• Ship Recycling

Environmental Achievements

• Emissions intensity decreased by 26% in the Suezmax fleet and 13% in the Aframax fleet since 2008.
• Zero spills greater than one barrel.
• Zero ballast water non-compliances.
• Zero SOx and NOx non-compliances.
• Onboard consumption of single-use plastic drinking bottles reduced by 84%.

Social Achievements

• 100% of reported incidents related to labor or human rights were investigated and closed within 180 days.
• Sea staff retention of 97.4%
• Launched Wellness Days for shore-based employees in select locations.

Governance Achievements

• All targets for vessel and cyber security achieved.
• All targets for business ethics achieved.

Climate Goals & Targets

Environmental Challenges

• Shore staff retention dropped to 85% due to employee resignations following organizational changes and a more competitive job market.
• Total Recordable Case Frequency (TRCF) of 2.52 in 2022 (target not met).

Mitigation Strategies

• Implementing electronic record-keeping logbooks across the fleet.
• Promoting the vision to achieve “Goal Zero”.
• Ensuring senior leadership engagement with seafarers.
• Continuing ongoing pay equity efforts through internal and external equity evaluations.

Supply Chain Management

Supplier Audits: 11 audits completed in 2022

Responsible Procurement

• Automated third-party due diligence system (Securimate) for screening business ethics compliance risks.
• Periodic re-evaluations of suppliers (over 240 completed in 2022).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001

Awards & Recognition

• Contractor of the Year at the 2022 Santos Directors’ Environment, Health, Safety and Sustainability Awards

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainability
• Climate Change
• Workforce Diversity
• Human Rights
• Health and Wellness
• Ship Recycling
• Business Ethics
• Vessel and Cyber Security
• Spills and Pollution

Environmental Achievements

• Emissions intensity decreased by 27% in Suezmax fleet and 22% in Aframax fleet since 2008.
• Zero spills greater than one barrel.
• Full compliance with IMO 2020 requirements, resulting in fleet sulfur oxide (SOx) emissions decreasing by more than 80%.

Social Achievements

• Achieved best safety record in two decades, finishing the year without a single Lost Time Injury (LTI).
• 95% sea staff retention rate.
• Supported more than 40 charities and community organizations around the world.

Governance Achievements

• All reported cases of business ethics breaches were investigated and resolved within 180 days.
• 100% completion rate for shore staff required to read Teekay’s Standards.
• Zero allegations raised regarding labour and human rights.

Climate Goals & Targets

Environmental Challenges

• Australian seafarer shortage resulting in decreased sea staff retention rate in 2023.
• One vessel security incident (theft of mooring tails).

Mitigation Strategies

• Significantly increasing the number of trainees in Teekay Australia.
• Implementing electronic record-keeping logbooks across the fleet.
• Incorporating lessons learned from the security incident into safety management procedures.

Supply Chain Management

Responsible Procurement

• Third-party due diligence process for new vendors.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001

Awards & Recognition

• Tanker Operator of the Year at the 2023 ShipTek International Awards