Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Safety

Environmental Achievements

• Reduced Carbon Dioxide emission by 127,227 tons from 514,762 tons in 2015 to 387,535 tons in 2016. Vessels’ Energy Efficiency Operating Indicator reduced by about six percent compared to 2015.

Social Achievements

• Absence due to sickness was 1.0% (2015: 2.2%) of the total hours worked by employees and there were no serious injuries or accidents of any kind among the employees of the Group. The Group pursues a policy of gender equality. Provides various resources for staff training and development.
• Maintains a good relationship with its employees and crew and has not experienced any disruption of its operation as a result of industrial disputes.

Governance Achievements

• Annual review of the corporate governance report which covers every section for its compliance with the Norwegian Code of Practice.
• The Board carries out a review of the Group’s most significant risk areas in every six months and performs an annual review of its internal control systems.

Climate Goals & Targets

Environmental Challenges

• Year 2016 was the worst year for dry bulk shipping market due to prolonged oversupply in tonnages and unexpected fall of global seaborne activities. This added tremendous liquidity pressures to ship owners, leading to a downward spiral in vessel asset prices and freight rates.
• Uncertainty and market volatility remained as an operational risk to the Group.

Mitigation Strategies

• Disposal of eight vessels (two Panamaxes, five Supramaxes, and one Handymax) to readjust fleet profile, reduce operational risk exposures, and improve liquidity position.
• Rescheduling of indebtedness arrangement with lenders to preserve liquidity and financial resources.
• Focus on taking sensible and decisive actions to maintain a strong financial position and continuously monitor the market and operations.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, HKFRS

Third-party Assurance: Grant Thornton Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced fuel oil consumption from 124,411 tons in 2016 to 106,211 tons in 2017, resulting in a decrease in CO2 emissions from 387,535 tons to 334,961 tons. This is attributed to a reduction in fleet size.
• Implemented the Ship Energy Efficiency Management Plan (SEEMP) since February 2013 to improve energy efficiency and reduce fuel oil consumption and carbon emissions.
• Fleet vessels' SEEMP plans are Nippon Kaiji Kyokai certified in compliance with IMO Resolutions.

Social Achievements

• No work-related fatalities in 2017.
• Overall lost day rate due to sickness was 1.2% (2016: 1.0%)
• No lost days due to work injury in 2017 (2016: nil).

Governance Achievements

• Maintained a sound and sufficient risk management and internal control system.
• Upholds high standards of corporate governance and ethical corporate culture.
• No reports of corrupt practices against the Group or its employees in 2017.

Climate Goals & Targets

Environmental Challenges

• Increase in EEOI from 10.0 grammes CO2/MT.Mile in 2016 to 10.8 grammes CO2/MT.Mile in 2017, mainly due to vessels running more on full navigation speed and ballast voyages due to trade pattern change.

Mitigation Strategies

• Aim to reduce EEOI by 2 percent of the 2017 figure in 2018 through better fuel economy management and cargo carriage arrangement with less ballast passage.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced average EEOI from 12.2 grammes CO2/MT.Mile in 2018 to 11.1 grammes CO2/MT.Mile in 2019 (9% decrease).
• Switched to 0.5% low sulphur fuel in late 2019 to meet IMO 2020 Sulphur Cap requirement.
• Adopted SEEMP (Ship Energy Efficiency Management Plan) since February 2013 and SEEMP Part II since 2018 to reduce fuel oil consumption and carbon emissions.
• Adopted IMO Data Collection System on fuel consumption starting from 1 January 2019.

Social Achievements

• No work-related fatalities in 2019.
• Overall lost day rate due to sickness was 1.8% (2018: 1.7%).
• No serious injuries or accidents among employees in 2019.
• Provides fringe benefits and welfare to employees including medical and life insurance, pension schemes, and paid leave.

Governance Achievements

• Sound and sufficient risk management and internal control measures in place.
• Upholds high standard of corporate governance and maintains an ethical corporate culture.
• No reports of corrupt practices against the Group or its employees in 2019.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: Nippon Kaiji Kyokai (for SEEMP compliance)

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

• Environmental
• Social
• Governance

Environmental Achievements

• Adopted Ship Energy Efficiency Management Plan (SEEMP) since February 2013, contributing to fuel consumption and carbon emission reduction.
• Switched to compliant low sulfur content bunker fuel to meet IMO 2020 Sulphur Cap requirement.
• Adopted IMO Data Collection System on fuel consumption starting from 2019.

Social Achievements

• Maintained extremely low employee turnover rate.
• No work-related fatalities or serious injuries during 2020, 2019, and 2018.
• Charitable donations of HK$31,000 in 2020 and HK$55,000 in 2019.

Governance Achievements

• Promulgated a Company Code setting out corporate standards and practices.
• Complied with the Corporate Governance Code and Corporate Governance Report.
• Established Audit, Remuneration, and Nomination Committees.

Climate Goals & Targets

Environmental Challenges

• Poor business sentiment in early 2020 due to the COVID-19 pandemic, leading to reduced chartering freight and hire revenue.
• Significant unrealized fair value loss on financial assets in early 2020 due to the COVID-19 pandemic.
• Increase in shipping-related expenses due to COVID-19 protocols and requirements.

Mitigation Strategies

• Maintained positive working capital position and liquidity.
• Had sufficient financial resources to satisfy commitments and working capital requirements.
• Allocated additional budget for compliance with COVID-19 preventive measures at ports.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weathers at seas, weather-related disruption to port and cargo loading activities

Transition Risks

• Changes in governmental rules and regulations or actions taken by regulatory authorities

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: Nippon Kaiji Kyokai certified SEEMP plans

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed