Climate Change Data

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Safety
• Community Engagement
• Employee Well-being
• Environmental Protection
• Operations Excellence

Environmental Achievements

• 18% GHG reduction in carbon intensity for the domestic dry-bulk fleet (vs 2008)
• 40% reduction in carbon intensity on Equinox Class Vessels
• Lowest number of annual lost time injuries in history (12)
• 68% of vessels flying Gold Flags (up from 49% in 2020)
• 100% of Algoma employees vaccinated against COVID-19

Social Achievements

• Over $210K donated to the United Way in 2020/2021
• $602K in scholarships provided to children of Algoma employees to date
• 44 employees certified in Whale Observation Training
• Implementation of virtual healthcare program for crew
• Delivery of prescriptions to domestic vessels
• Arrangement for mail-in ballots for employees during Canadian federal election
• COVID Snacks and Sundries Program to supplement items employees would normally purchase during shore leave

Governance Achievements

• Strong corporate governance practices aligned with Canadian requirements and public company standards
• Annual confirmation of commitment to Algoma’s Code of Conduct by all employees, officers, and directors
• Confidential reporting system for breaches of the Code of Conduct or other concerns through ClearView Connects
• Review and update of Sustainability Strategy in 2021
• Expanded stakeholder engagement plan in 2022

Climate Goals & Targets

Environmental Challenges

• Global climate change and the need to reduce greenhouse gas emissions
• Calls to restrict the use of exhaust gas cleaning systems (scrubbers) in Canadian waters
• COVID-19 pandemic and its impact on operations and employee well-being
• Shortage of skilled seafarers
• Challenges in treating ballast water in some ports
• Lack of correction factors for self-unloading vessels in IMO efficiency ratings

Mitigation Strategies

• Establishment of an internal decarbonization team
• Setting new, more ambitious GHG reduction targets
• Implementation of technical and operational measures to reduce fuel consumption
• Collaboration with key stakeholders (Blue Sky Maritime Coalition, International Chamber of Shipping)
• Advocacy for government support in research, development, and funding of new fuels and technologies
• COVID-19 Task Force to protect employee health and safety
• Onboard vaccination clinics
• Virtual training modules for crew
• Domestic training sessions for crew members
• Recruitment of foreign officers
• Lobbying for an extended operating season for the Welland Canal

Supply Chain Management

Responsible Procurement

• Purchasing of 99% of COVID-19 PPE from local Ontario businesses

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, SASB

Certifications: ISO 14001, OHSAS 45001

Awards & Recognition

• United Way Days of Caring Award (2021)

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection
• Community

Environmental Achievements

• Algoma's highly efficient Equinox Class ships are all equipped with certified and operational closed-loop exhaust gas scrubbers designed to meet stringent Emission Control Area Sulphur Oxide (SOx) limits. The scrubbers clean the exhaust gas, reducing the amount of SOx released into the air to a negligible amount of SOx and also reducing the release of particulate matter.
• Participation in the Green Marine program to improve environmental performance beyond regulatory requirements.

Social Achievements

• Algoma employs approximately 1,600 people globally.
• The Company works with industry groups, its unions and educators to develop and enhance training programs to ensure an adequate supply of labour.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Global Pandemic (COVID-19) impacting crew exchanges and increasing operating costs.
• Availability of Qualified Personnel in the marine industry.
• Contractual Nature of the Business and risk of contract non-renewal.
• Union negotiations and potential service interruptions.
• Outsourcing risks and reliance on third-party service providers.
• Service failures and potential customer complaints/litigation.
• Health and safety incidents and potential fines/penalties.
• Shipyard delays in vessel construction.
• Capital expenditures for vessel maintenance and upgrades.
• Business acquisition risks.
• Competitive markets and fluctuations in demand.
• Climate change impacts (SOx emissions, ballast water, greenhouse gases, water levels, severe weather).
• Vessel recycling and responsible disposal.
• Regulatory changes impacting operations and costs.
• Catastrophic loss and potential asset damage.
• Cyclical nature of the shipping industry.
• Seaway disruptions and potential operational delays.
• Fees and tolls imposed by government agencies.
• Costs of incidents (property damage, environmental contamination, injuries).
• Vessel inspection failures and potential operational downtime.
• Maritime laws and restrictions (Coasting Trade Act).
• Aging vessels and challenges in maintenance/replacement.
• Inadequate insurance coverage or increased insurance costs.
• Marine disasters and potential revenue loss.
• Vessel arrests by maritime claimants.
• Credit facility restrictions limiting financial flexibility.
• Foreign exchange rate fluctuations.
• Credit risk from customers.
• Employee future benefits and pension plan funding.
• Judicial and other proceedings.

Mitigation Strategies

• Robust environmental compliance program and Environmental Compliance Plan.
• Collaboration with industry groups, unions, and educators for training.
• Long-term contracts with large industrial customers.
• Fair and competitive compensation packages for employees.
• Careful selection of service providers for outsourced services.
• Stringent operational and maintenance plans for vessels.
• Emphasis on health and safety management.
• Knowledgeable supervision teams at shipyards.
• Geographic and operational diversity to mitigate economic impacts.
• Technical and operational measures to reduce GHG emissions.
• Modern weather forecasting and communication systems.
• Plans to comply with ballast water regulations.
• Participation in industry associations to monitor regulatory changes.
• Emergency response and security plans for vessels.
• Comprehensive insurance coverage for assets.
• Mitigation strategies for foreign exchange risk (cash hedging, forward contracts).
• Tight credit terms for customers.
• Defined contribution plans for new employees.
• Actions to represent interests in legal proceedings.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Water levels fluctuations
• Severe weather

Transition Risks

• Greenhouse gas emission regulations
• Carbon taxes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety
• Diversity, Equity, and Inclusion
• Community Involvement
• Environmental Sustainability (Carbon Reduction)
• Employee Well-being

Environmental Achievements

• 20.5% reduction in GHG intensity within the Domestic Dry-Bulk fleet (vs. 2008)
• Installation of closed-loop exhaust gas scrubbers on 12 domestic dry-bulk vessels, reducing SOx emissions, particulate matter, and black carbon.
• 9 FuelOpt systems installed on Equinox Class vessels, resulting in almost 10% reduction in fuel consumption.
• 40% reduction in carbon intensity on Equinox Class vessels compared to ships they replaced.

Social Achievements

• Lowest lost time injuries on record in 2022 (17% decrease vs. 2021)
• Ranked as one of Hamilton-Niagara’s Top Employers 2023
• Increased employee and family assistance program resources
• Successfully accommodated over 20 employees with modified work arrangements
• Contributed $123,690 to United Way (10% increase compared to 2021)
• Algoma employees helped fill almost 2,000 backpacks for the Backpacks for Kids program.
• Offered employment to 15 Ukrainian seafarers

Governance Achievements

• Established a DEI roadmap and initiated leadership-level awareness training.
• Senior Leadership Team visited 16 vessels, spending 68 days onboard to improve communication and operations.

Climate Goals & Targets

Environmental Challenges

• Recruiting and retaining skilled crews in the marine industry
• Competition in domestic and international markets
• Evolving regulations on carbon emissions and ballast water treatment
• Rising fuel prices
• Potential for contract non-renewal
• Climate change impacts (extreme weather, water levels)
• Shortage of qualified marine workers

Mitigation Strategies

• Working with industry groups, unions, and educators to enhance training programs
• Diversifying vessel types and geographic presence
• Investing in technology and innovations to reduce environmental footprint
• Implementing fuel recovery revenues to offset rising fuel costs
• Ongoing fleet renewal program
• Freight rate adjustment clauses in contracts to partially offset water level impacts
• Recruitment of Ukrainian seafarers

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Water level fluctuations
• Ice coverage

Transition Risks

• Regulatory changes on carbon emissions
• Cost and availability of low-sulphur fuels

Opportunities

• Longer shipping season due to reduced ice coverage

Awards & Recognition

• Hamilton-Niagara’s Top Employers 2023