Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety, Health & Environment (SHE)
• Sustainability
• Energy Transition
• Digital Innovation
• Business Ethics & Integrity

Environmental Achievements

• Societal impact reduction of VOC emissions by 19% compared to 2016
• Reduced Process Safety Event Rate (PSER) from 0.16 to 0.14

Social Achievements

• Zero fatalities and major incidents
• Increased percentage of women in senior management positions to 16%
• 100% of employees receiving a living wage
• Improved Net Promoter Score (NPS) to 67

Governance Achievements

• Zero fines for permit violations
• Over 88% of employees completed Code of Conduct training
• Successful implementation of MyService terminal management system at 14 locations

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting global economy and operations
• Market volatility, oil and gas price fluctuations
• Cybersecurity threats
• Construction delays due to Covid-19
• Reduced throughput for chemicals in some regions
• Increased GHG emissions due to portfolio changes

Mitigation Strategies

• Implemented business continuity plans
• Stringent health and safety measures
• Remote working capabilities
• Cost efficiency measures
• Investment in IT infrastructure and cybersecurity
• Trust & Verify program to improve safety
• Continued investment in growth projects despite delays

Supply Chain Management

Supplier Audits: Pilot performance management program implemented in 2020, assessing human rights and decent work policies

Responsible Procurement

• Supplier Code requiring adherence to Vopak’s Code of Conduct, Sustainability Policy, and living wage approach

Climate-Related Risks & Opportunities

Physical Risks

• Storms and hurricanes, rising sea levels, drought, smog, extreme heat

Transition Risks

• Changes in market dynamics, policy actions, reputation, new technology and product developments

Opportunities

• Increased need for storage of low-carbon and clean energy sources, CO2 storage solutions

Reporting Standards

Frameworks Used: GRI Standards (Comprehensive option), IIRC principles, TCFD framework

Certifications: null

Third-party Assurance: Deloitte Accountants B.V. (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)

Vopak contributes to facilitating energy security and the energy transition, reducing its own carbon footprint, and building resilient infrastructure.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety
• Climate Change Mitigation (GHG Reduction)
• Gender Diversity
• New Energies and Sustainable Feedstocks
• Process Safety
• Air Quality (VOC Emissions)
• Water Pollution
• Waste and Circularity
• Business Ethics and Integrity
• Human Rights and Decent Work
• Community Engagement
• Financial Performance

Environmental Achievements

• Reduced Scope 1 & 2 GHG emissions by 10% (FY’22 vs. FY’21)
• Societal impact reduction of VOC emissions by 26% compared to 2016
• 64% of total energy consumption was from renewable energy sources
• Repurposed 148k cbm of oil storage tanks in Los Angeles for sustainable aviation fuel and renewable diesel

Social Achievements

• Achieved 20% women in senior management (target for 2023)
• 82% of senior management in divisions and operating companies were of local origin
• All Vopak employees are paid a living wage
• Sustained Total Injury Rate at 0.25
• 23 Vopak WeConnect projects completed

Governance Achievements

• Successfully renewed EUR 1 billion senior unsecured revolving credit facility linked to ESG performance (safety, gender diversity, GHG emissions reduction)
• Improved governance of human rights & decent work through standardized supplier qualification and governance in large growth projects
• Fewer breaches of Code of Conduct reported in 2022 compared to 2021

Climate Goals & Targets

Environmental Challenges

• Geopolitical tensions, volatile markets, and increasing costs for energy, building materials, and personnel expenses
• One employee fatality in China
• Covid-19 pandemic impact, particularly in China
• Russia-Ukraine war affecting product flows
• Cyber-attack impacting the industry
• Challenging market conditions affecting US Gulf Coast industrial terminals
• Weakening consumption growth impacting global demand for chemicals
• High energy costs reducing competitiveness of European petrochemical industry
• Potential climate change impacts (flooding, storms, heat)
• Uncertainty related to the interpretation of tax laws

Mitigation Strategies

• Effective response supported by diversified global portfolio
• Detailed investigation into fatality incident and implementation of lessons learned
• Continued terminal operations and smooth service to customers
• Investments to ensure high service levels
• Development of digital services and MyVopak web-portal
• Cost efficiency measures
• Commercial efforts related to inflation and cost pass-through
• Repurposing of assets
• Stress-testing strategy against climate change impacts
• Renewal of sustainability-linked revolving credit facility
• Implementation of Tax Control Framework
• Regular engagement with tax authorities

Supply Chain Management

Supplier Audits: 29 terminals audited (THA 2.0)

Responsible Procurement

• Supplier Code of Conduct
• Living wage principle
• Sustainability criteria in supplier qualification process

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall causing river flooding
• Increased intensity of tropical storms and hurricanes
• Excessive heat
• Increased wind force

Transition Risks

• Changes in policy, regulation, product development, and market dynamics related to the transition to a low-carbon economy

Opportunities

• Increased need for storage of low-carbon and clean energy sources like hydrogen, CO2 storage solutions, and new technologies

Reporting Standards

Frameworks Used: GRI Universal Standards (2021), TCFD

Certifications: Null

Third-party Assurance: Deloitte Accountants B.V. (limited assurance)

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 9 (Industry, innovation, and infrastructure)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)

Vopak's initiatives contribute to these goals through infrastructure development for new energies, safety improvements, emissions reductions, and responsible resource management.

Sustainable Products & Innovation

• Flow batteries
• Ammonia storage for hydrogen
• CO2 infrastructure
• Chemical recycling plant

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety
• Greenhouse gas emissions reduction
• Gender diversity in senior management
• Energy transition
• Human rights
• Community engagement

Environmental Achievements

• 25% reduction in greenhouse gas emissions from operations compared to 2021 baseline
• 34% societal impact reduction of VOC emissions compared to 2016 baseline
• Repurposed 22 oil tanks (148,000 cbm) at Los Angeles terminal for biofuels
• Commissioned 16 new storage tanks (64,000 cbm) in Rotterdam for biofuel feedstocks
• 66% of total energy consumption from renewable sources

Social Achievements

• Record low Total Injury Rate of 0.16
• Consistently low Process Safety Event Rate of 0.09
• 77% of senior management of local origin
• 20% women in senior management positions (target 25% by 2025)
• 56 Vopak WeConnect projects completed at 41 locations

Governance Achievements

• Simplified organizational structure by removing a management layer
• ESG-linked revolving credit facility renewed
• Completed key divestments (Rotterdam chemical terminals and Savannah terminal)

Climate Goals & Targets

Environmental Challenges

• Geopolitical tensions affecting energy product availability and pricing
• Oversupply in global chemical markets reducing margins
• Climate change risks (floods, hurricanes, storms)
• Cybersecurity threats

Mitigation Strategies

• Actively managing portfolio with divestments
• Investing in gas and industrial terminals
• Accelerating towards new energies and sustainable feedstocks
• Robust environmental management process
• Comprehensive cybersecurity program

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Living wage principle

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall causing river flooding
• Increasing intensity of tropical storms and hurricanes
• Excessive heat
• Increasing wind force

Transition Risks

• Carbon taxation
• Changes in policy, regulation, product development and market dynamics

Opportunities

• Increased need for storage of low-carbon and clean energy sources
• CO2 storage solutions

Reporting Standards

Frameworks Used: GRI Universal Standards (2021), TCFD

Third-party Assurance: Deloitte Accountants B.V. (limited assurance)

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13

Initiatives contribute to affordable and clean energy, decent work and economic growth, resilient infrastructure, responsible consumption and production, and climate action

Sustainable Products & Innovation

• Infrastructure for low-carbon fuels, hydrogen, ammonia, CO2
• Biofuels storage and handling

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 15% compared to HY1 2023 through energy efficiency measures and renewable electricity purchase.

Social Achievements

• Completed Singapore’s first methanol bunkering operation, supporting maritime decarbonization.
• HY1 2024 TIR of 0.16 (versus target of 0.22), and PSER decreased to 0.07 from 0.14 in HY1 2023.

Governance Achievements

• Extended Sustainability Linked Revolving Credit Facility of EUR 1 billion by one year to 20 June 2029.

Climate Goals & Targets

Environmental Challenges

• CGU impairment of EUR 10.1 million recognized in relation to the Ningbo terminal in China due to plans for capacity reduction.
• Slight increase in LTIR to 0.10 compared to 0.08 in HY1 2023.

Mitigation Strategies

• Implementing a program of improvements at terminals to reduce VOC emissions.
• In-depth assessment to identify areas for improvement in safety measures.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CSRD