Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency and Resource Use
• Air Emissions/Quality
• Ocean, Health and Biodiversity
• Waste Management and Ship Recycling
• Corporate Governance and Compliance
• Anti-bribery & Corruption
• Risk and Crisis Management
• Health, Safety and Well being
• Human Capital/Employee Relations
• Diversity and Inclusion
• Responsible Procurement and Supply Chain
• Community Engagement

Environmental Achievements

• Achieved a 5-Star Rating by the British Safety Council for the third consecutive year.
• All Nakilat Shipping Qatar Limited (NSQL) managed vessels completed the Inventory of Hazardous Material in compliance with the IMO Hong Kong Convention, and Ballast Water Treatment System are installed on NSQL fleet vessels.
• Successfully introduced an innovative remotely operated vehicle (ROV) system for hull cleaning within Ras Laffan Port limits.
• Rolled out an upgraded hull paint scheme to the entire fleet with a more advanced and higher-performance coating.

Social Achievements

• Achieved an overall Lost Time Injury Frequency (LTIF) of 0.39 and a Total Recordable Case Frequency (TRCF) of 0.63, both below the benchmark averages.
• Nakilat Agency Company (NAC) remained LTI-free for 15 years.
• Nakilat SvitzerWijsmuller (NSW) accumulated more than 10 Million exposure hours with zero LTIs and TRCs in 2020.
• Conducted over 4,000 hours of training, including virtual masterclasses and webinars.
• Launched a dedicated Nakilat Helpline Service.

Governance Achievements

• Established an ESG Committee and Task Force.
• Underwent its first Integrated Management System surveillance audit post transition to the revised ISO standards (ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018).
• Nakilat, Nakilat Shipping Qatar Ltd. (NSQL) and Nakilat Agency Company (NAC) have been certified for ISO 22301 Business Continuity Management System (BCMS).

Climate Goals & Targets

Environmental Challenges

• Risk of fuel supply shortage due to new IMO fuel sulphur cap of 0.5%
• Compatibility issues of new low sulphur (LS) fuels
• Combustion/operational issues of new LS fuels
• Impact of the COVID-19 pandemic

Mitigation Strategies

• Secured a Local Supply agreement for LS fuels.
• Assessed the possibility of carrying modifications on existing fuel storage, transfer and treatment systems.
• Amended operational procedures to reflect Lloyd’s study findings and recommendations.
• Implemented extensive COVID-19 preventive measures onshore and onboard vessels.

Supply Chain Management

Supplier Audits: 100% of suppliers assessed for environmental impacts (N-KOM and QFAB)

Responsible Procurement

• Integrated a third-party/supplier code of conduct into contracts.
• Requires suppliers to provide certifications, including ISO 14000.

Climate-Related Risks & Opportunities

Transition Risks

• Global decarbonization trend reducing natural gas demand in the long-term

Opportunities

• Reducing environmental impact to become preferred service provider

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, UN Global Compact, Poseidon Principles, GHG Protocol, European Union (EU) Monitoring, Reporting and Verification (MRV), International Maritime Organization’s (IMO) Data Collection System (DCS)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 27001:2013, ISO 22301:2019

Third-party Assurance: Ernst & Young

Awards & Recognition

• Sword of Honour Award from the British Safety Council (three consecutive years)
• Green Award for all LNG vessels

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Governance
• Ethical Business Practices
• Social Responsibility
• Supply Chain Management
• Cybersecurity

Environmental Achievements

• Awarded a five-star grade in its first attempt from Five Star Environmental Audit conducted by the British Safety Council in December 2022.
• Consistently maintained commitment towards health, safety, and general welfare of staff members and contractors.
• Achieved a 5-Star rating in the British Safety Council’s Occupational Health and Safety Audit in its very first attempt (N-KOM).

Social Achievements

• Awarded the Sword of Honor by the British Safety Council for the fifth consecutive year.
• Implemented practical steps and initiatives toward solutions that aim to achieve work-life balance for all seafarers.
• Conducted flu vaccination campaign for its staff.
• Conducted safety sessions for its employees to ensure safety and wellbeing during FIFA World Cup.

Governance Achievements

• Compliance with Qatar Financial Markets Authority (QFMA) governance code.
• No confirmed incidents of corruption.
• No non-compliance with laws and/or regulations concerning the social and economic area.

Climate Goals & Targets

Environmental Challenges

• Risk of fuel supply shortage due to new IMO fuel sulphur caps.
• Compatibility issues of new low sulphur (LS) fuels.
• Combustion/operational issues of new low sulphur (LS) fuels.
• Increased operational and financial implications to ensure regulations compliance.
• Increase of operation’s complexity due to changing market patterns and changes in technical requirements.

Mitigation Strategies

• Secured a local supply agreement for low sulphur fuels.
• Amended operational procedures to reflect Lloyd’s study findings and recommendations.
• Assessed the possibility of carrying modifications on existing fuel storage, transfer and treatment systems.
• Implemented detailed attention to engine/boiler performance, hull/propeller fouling, speed policy, and schedule optimization.
• Engaged in a collaboration with a major LNG shipping company, a major classification society and a leading Korean shipyard to work on the next generation of carbon capture systems.

Supply Chain Management

Supplier Audits: 100% of new suppliers assessed for environmental impacts.

Responsible Procurement

• Third-party supplier code of conduct integrated into contracts.
• ESG requirements included in vendor questionnaires.
• Increased procurement from local suppliers.

Climate-Related Risks & Opportunities

Transition Risks

• Increasing pace of changes in emission rules
• Global decarbonization trend reducing natural gas demand in the long-term

Opportunities

• Reducing environmental impact (i.e., emissions during transport) to become preferred service provider

Reporting Standards

Frameworks Used: GRI Standards, SASB, UN Global Compact, Sustainable Development Goals (SDGs), GHG Protocol Corporate Accounting and Reporting Standard, EU Monitoring, Reporting and Verification (MRV), International Maritime Organization’s (IMO) Data Collection System (DCS)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 27001:2013, ISO 22301:2019

Third-party Assurance: KPMG (limited assurance)

Awards & Recognition

• British Safety Council’s Sword of Honour (5 consecutive years)
• British Safety Council’s Five Star Environmental Audit (5-star rating)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Governance
• Community Engagement
• Supply Chain Management
• Diversity and Inclusion

Environmental Achievements

• Achieved a ‘Five Star’ grade for the 2nd consecutive year from the ‘Five Star’ environmental audit conducted by the British Safety Council in December 2023.
• Awarded the prestigious Globe of Honour from British Safety Council for the first time for outstanding environmental management system.
• Successfully completed the transition to zero ozone depletion potential (ODP) in 2020.
• Reduced GHG emissions intensity (TCO₂/Nm) from 1.12 in 2021 to 1.03 in 2023.

Social Achievements

• Received ‘Five Star’ rating from occupational health and safety audit in 2023 for the 7th consecutive year.
• Nakilat Agency Company (NAC) remained LTI-free for 18 years since its inception.
• NSW accumulated more than 14.59 million exposure hours with zero LTIs in 2023.
• Increased youth employment rate by 2% and female employment rate by 1% in 2023.
• Achieved a 32% Qatarization rate.

Governance Achievements

• Compliance with QFMA governance code audited by external auditors.
• No confirmed incidents of corruption.
• Nakilat, NSQL and NAC certified for ISO 22301 Business Continuity Management System.

Climate Goals & Targets

Environmental Challenges

• High interest rates, geopolitical uncertainties and tensions.
• Increasing pace of changes in emission rules and global decarbonization trend.
• Changing weather conditions and increasing operational complexity.
• Challenges regarding compatibility between fuels of different origins and production processes.

Mitigation Strategies

• Proactive approach to addressing climate-related risks.
• Maintaining excellence in health and safety and upholding strong governance practices.
• Securing a local supply agreement for low-sulphur fuels.
• Amending operational procedures to reflect Lloyd’s study findings and recommendations.
• Implementing reflective coating on the monkey island to reduce air conditioning/heating energy consumption.
• Gradually replacing all lights with LED lights.

Supply Chain Management

Supplier Audits: 107 suppliers assessed for social impacts in 2023; 53 suppliers assessed for environmental impacts in 2023.

Responsible Procurement

• Prioritizing procurement from local suppliers.
• Integrating a Third-party Supplier Code of Conduct into contracts.
• Requiring new vendors to complete an ESG questionnaire.

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather conditions

Transition Risks

• Increasing pace of changes in emission rules
• Global decarbonization trend reducing natural gas demand

Opportunities

• Reducing environmental impact to become preferred service provider

Reporting Standards

Frameworks Used: GRI Standards, SASB, UN Global Compact, UN SDGs, GHG Protocol

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 27001:2013, ISO 22301:2019, Green Award

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)

Nakilat's operations contribute to these goals through clean energy transportation, job creation, investment in infrastructure, and efforts to reduce GHG emissions.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Forbes Middle East ranking 5th in the Middle East's Top 100 listed companies for sustainability in transport and logistics in 2023.
• British Safety Council’s Five Star OHS and Environmental audits.
• British Safety Council’s Globe of Honour Award.
• Qatarization Crystal Award (2020, 2021).