Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Recycled 100% of wood and metal products and up to 80% of industrial debris
• Reduced VOC emissions to approximately 36 tons
• Switched a substantial portion of lighting to LED and upgraded boilers for energy efficiency
• Generated approximately 28 tons of hazardous waste

Social Achievements

• Multiple charitable donations to local groups and maritime organizations
• Employee assistance program for employee's grandson's medical expenses
• Approximately 39% of employees were minorities at year-end 2022
• Approximately 11% of employees were women at year-end 2022
• Continued training of supervisors, managers, and employees in Equal Employment Opportunity policy
• Non-union employee sick time usage decreased from 1.3% of total work hours in 2021 to 1.1% in 2022

Governance Achievements

• Established a formal sustainability and ESG program
• Conducted peer benchmarking, stakeholder analysis, and materiality analysis
• Implemented an Anti-Corruption Policy and Conflict of Interests policy
• Implemented a Whistleblower Policy with a third-party administrator for anonymous reporting

Climate Goals & Targets

Environmental Challenges

• Increasing the proportion of female employees in the traditionally male-dominated maritime industry
• Determining GHG footprint and reducing emissions
• Meeting evolving needs for sustainable and green ship designs

Mitigation Strategies

• Encouraging female applicants and participating in government programs to encourage women in manufacturing
• Developing comprehensive plans to reduce GHG footprint, set reduction targets, and disclose emissions annually
• Exploring opportunities to electrify operations (e.g., battery-powered forklifts)
• Expanding capabilities in technologies that reduce GHG emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Follows legal and responsible sourcing practices, expects suppliers to uphold the same standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulations limiting GHG emissions, transition towards a low-carbon economy

Opportunities

• Building ships that meet evolving needs for sustainable and green designs

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Mapped UN SDGs to operations

Sustainable Products & Innovation

• Ships with reduced GHG emissions through alternative fuels, battery storage, cleaner engines

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Human Rights
• Governance
• Safety
• Community Engagement
• Supplier Responsibility

Environmental Achievements

• Calculated Greenhouse Gas Scope 1 and 2 emissions (5,011 and 8,609 MT CO2 equivalents, respectively)
• Recycled 100% of wood and metal waste and up to 80% of industrial debris (approximately 1,769 tons of wood scrap and 1,729 tons of steel)
• Switched a substantial portion of shipyard lighting to LED
• Launched a program to detect and reduce equipment leaks and convert to ozone-friendly refrigerants

Social Achievements

• Conducted human rights risk assessment with suppliers
• Published Norwegian Transparency Act statement
• Issued a comprehensive Code of Conduct to all employees
• Established a Supplier Code of Conduct
• Held in-person DEI training for all senior leadership, supervisors, and managers
• Increased minority hires by 15% from 2022 to 2023
• Offered various training courses including Supervisor Leadership, DEI and Belonging, Code of Conduct, over 60 safety classes, and new hire orientation

Governance Achievements

• Established oversight of the sustainability/ESG program by the Audit Committee of the Board of Directors
• Updated Employee Handbook and delivered a comprehensive Code of Conduct to all employees with training provided
• Implemented a whistleblower policy with a third-party administrator for anonymous reporting

Climate Goals & Targets

Environmental Challenges

• Significant energy and gas usage, waste generation, and emissions of particulate and VOCs
• Climate change impacts and regulations limiting GHG emissions
• Traditionally male-dominated maritime industry
• Reducing safety incidents

Mitigation Strategies

• Initiated a program to improve energy efficiency and reduce emissions, including exploring electrification of operations
• Implementing modern waste management practices
• Encouraging female applicants and participating in government programs to encourage women in manufacturing
• Implementing new initiatives to continuously improve HSE mindset
• Proactive work to establish an injury-free workforce

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Building LNG-powered containerships and a Subsea Rock Installation Vessel for offshore wind farms

Sustainable Products & Innovation

• LNG-powered containerships
• Subsea Rock Installation Vessel

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainability
• Environmental, Social, and Governance (ESG)

Social Achievements

• 12-month trailing average Lost Time Incident Frequency Rate (LTIFR) of 0.12 (improved from 0.22 in Q3 2023)
• 12-month trailing average Other Recordable Incident Frequency Rate (ORIFR) of 2.69 (improved from 2.98 in Q3 2023)
• Published its first Sustainability Report on 16 September 2024
• Increased the size and breadth of its apprenticeship program, with 139 active apprentices and 15 scheduled to graduate in November 2024. Awarded a USD 800 thousand grant for the apprenticeship program.

Climate Goals & Targets

Environmental Challenges

• Lingering effects of the COVID-19 pandemic continue to impede workforce maintenance and progress on NSMVs, contributing to schedule impacts, productivity loss, and increased costs.
• COVID-19 pandemic and federal contractor vaccine mandate prevented workforce ramp-up according to plan.
• Increased costs of labor, turnkey suppliers, and overhead driven by schedule delays and compression.
• SRIV project is now a loss-making contract.
• NSMV series is a loss-making contract (although more loss has been recognized than anticipated upon completion).

Mitigation Strategies

• Granted four months of schedule relief across the NSMV series due to excusable delay.
• Seeking additional schedule relief for NSMVs 2-5 for various delays.
• Pursuing various contractual and non-contractual options to obtain cost relief for COVID-19 related impacts.
• Accrued a loss provision for the SRIV project in Q3 2024 financial statements.
• Seeking remedies for impacts beyond its control leading to delays and cost overruns.

Supply Chain Management

Climate-Related Risks & Opportunities