Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• People and Places
• Corporate Integrity

Environmental Achievements

• Reduced CO2 emissions by 13% between 2017 and 2019
• Completed new build program with four state-of-the-art ships, reducing GHG emissions
• Retired seven older, less efficient steamships
• Achieved compliance with IMO 2020 emissions standards
• Discharged zero solid waste at sea
• Collected and recycled 170 tons of ocean plastics

Social Achievements

• Provided approximately 11,000 hours of safety training to crewmembers and approximately 3,000 hours to shoreside personnel
• Implemented COVID-19 safety protocols
• Filled 40% of open positions with internal candidates
• Maintained average employee tenure of 10 years
• Donated $100,000 to organizations addressing systemic racism
• Committed $100,000 to new educational scholarships and internships to support diversity
• Committed more than $200,000 to expand its paid internship program
• Contributed approximately $3.7 million in cash and in-kind services to more than 950 nonprofit organizations
• Committed more than $5 million in cash and in-kind shipping services to foodbank networks

Governance Achievements

• 43% of directors on the Board are women
• 71% of directors self-identify as ethnically diverse
• 100% of employees completed annual Code of Conduct training

Climate Goals & Targets

Environmental Challenges

• Impacts from climate change (severe weather, sea level rise) could disrupt transportation routes or damage assets
• Climate change could negatively affect customers' businesses
• Regulations limiting GHGs or pricing carbon could increase costs
• Failure to reduce GHGs could negatively affect Matson's reputation

Mitigation Strategies

• Investing in new energy-efficient technologies and low-carbon fuels
• Developing low-carbon transportation solutions
• Taking proactive measures to mitigate climate change
• Developing a long-term GHG reduction strategy
• Adapting operations to climate change (adjusting routes, fortifying infrastructure)

Supply Chain Management

Responsible Procurement

• Contracts with U.S.-based fuel suppliers
• Works to ensure motor carriers adhere to safety regulations

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Sea level rise

Transition Risks

• Regulations limiting GHGs
• Pricing carbon

Opportunities

• New energy-efficient technologies
• New low-carbon fuels
• Low-carbon transportation solutions

Reporting Standards

Frameworks Used: GRI Standards (Core level), SASB Marine Transportation Sustainability Accounting Standard

Awards & Recognition

• North American Marine Environment Protection Association’s Environmental Innovation Award (2020)
• Top Green Provider by Food Logistics magazine (2019 and 2020)
• Alaskans for Litter Prevention and Recycling's "Supporter of the Year Award" (2020)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Ocean Health and Biodiversity
• Employee Health & Safety
• Workforce Diversity, Equity & Inclusion
• Community Engagement

Environmental Achievements

• Reduced Scope 1 GHG emissions by 12% compared to 2019
• 23% reduction in Scope 1 GHG fleet emissions since 2016
• 83% reduction in SOx emissions since 2019
• 55% reduction in particulate matter since 2019
• Zero significant spills in 2020
• Recycled two ships in U.S. facilities complying with international standards

Social Achievements

• Shoreside lost time injury rate declined
• Annual employee turnover rate declined
• 53% of Matson open positions filled by internal promotion in 2020 (up from 40% in 2019)
• $3.52M invested in communities; $1.44M cash contributions and $2.08M in-kind contributions
• 45% year-over-year increase in contributions of in-kind shipping and equipment

Governance Achievements

• Amended Corporate Governance Guidelines to specify Board oversight of sustainability matters
• 43% of directors are women; 71% identify as racially or ethnically diverse
• CEO pay to median employee pay ratio of 47:1

Climate Goals & Targets

Environmental Challenges

• Increased offshore injury rate due to COVID-19 safety protocols
• Lack of commercially available carbon-neutral fuels for ocean-going containerships
• COVID-19 pandemic dramatically altered community giving programs
• Terminal congestion, weather, and vessel maintenance causing delays

Mitigation Strategies

• Implementation of crew well-being initiatives to address increased stressors on crewmembers
• Advocating for an industry-funded R&D program to accelerate zero-carbon fuels and technologies
• Increased utilization of in-kind services to support essential social safety nets
• Initiated a new social justice giving program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• People and Places
• Corporate Integrity

Environmental Achievements

• Reduced SOx emissions by 25% from 2020 through the use of low-sulfur fuels and scrubbers
• Equipped six more vessels with new ballast water treatment systems
• Experienced zero significant spills
• Set ambitious goals to achieve net zero Scope 1 GHG emissions from our owned fleet by 2050 and a 40% reduction by 2030, using a 2016 baseline

Social Achievements

• Increased investment in workplace safety and employee wellness
• Promoted more than 20 women and 40 employees from racially diverse backgrounds into positions of management or senior leadership
• Invested $4.2 million in funding and in-kind community support – a 19% increase from 2020
• Provided funding and in-kind services to more than 560 community organizations, focusing on food banks, social justice and environmental conservation

Governance Achievements

• Reinforced strong ESG governance through Board oversight and engagement
• Maintained a diverse and independent Board: 43% of directors are women, 71% identify as racially or ethnically diverse, and 86% are independent
• Trained substantially all employees and contractors on our Code of Conduct and ethics program
• Experienced zero serious marine incidents involving vessels or infrastructure
• Experienced zero significant cybersecurity incidents

Climate Goals & Targets

Environmental Challenges

• Increase in emissions compared to 2020 as a result of growth in operations to meet extraordinary demand from customers
• Unprecedented congestion at the Ports of Los Angeles and Long Beach
• COVID-19 pandemic affecting almost every facet of life and contributing to uncertainty for many businesses
• Record import volume vastly exceeding supply chain capacity

Mitigation Strategies

• Announced an LNG conversion program for certain vessels
• Expanded our GHG emissions inventory to include shoreside operations in Scope 1 and Scope 2, and conducted initial Scope 3 inventory
• Published a TCFD Report and incorporated climate risk into our enterprise risk management program
• Proactively communicated with customers to keep them well-informed about the status of their cargo
• Expanded capacity across the Pacific
• Allocated $325.3 million to maintain and grow our fleet and shoreside operations as well as our logistics business
• Continued COVID-19 protocols and focused on reducing risks in our operations
• Strengthened diversity, equity and inclusion within our company through the promotion of diverse employees into leadership positions and the continuation of DE&I-related training and communications
• Implemented low-carbon initiatives at our terminals and implementing terminal operation management practices to mitigate the effects of power outages

Supply Chain Management

Responsible Procurement

• Use of low-sulfur fuels
• Use of water-based paint and sealants
• Use of bamboo hybrid flooring in dry containers

Climate-Related Risks & Opportunities

Physical Risks

• Increased risks related to power outages, brownouts or blackouts

Transition Risks

• Increased decarbonization regulations for vessels and terminals
• Vessel speed reductions

Opportunities

• Be a leader within our tradelanes in the transition to low-emissions technologies

Reporting Standards

Frameworks Used: GRI Standards (Core level), SASB Marine Transportation Sustainability Accounting Standard, TCFD

Certifications: ISO 14001 (three terminal sites)

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 8
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 16

Matson's ESG priorities align with these UN SDGs, as detailed on page 9.

Awards & Recognition

• Logistics Management magazine Quest for Quality Awards (highest among ocean carriers for customer service)

Environmental Metrics

ESG Focus Areas

• ESG governance
• Climate change
• Diversity, equity & inclusion
• Human capital management

Environmental Achievements

• 12% decrease in Scope 1 fleet emissions since 2016
• Announced ~$130 million investment to enable Daniel K. Inouye, Manukai and Kaimana Hila to run on LNG
• Announced ~$1 billion investment in three new LNG-ready Aloha Class vessels for our CLX service

Social Achievements

• 41% of promotions and new hires into management roles were women and 57% were minorities
• Trained more than 1,100 employees in DE&I principles and concepts
• Established and awarded 20 scholarships to diverse, high-achieving students at higher education institutions and maritime academies
• Filled 44% of open positions with internal promotions
• Supported 21 high-potential employees with additional leadership training

Governance Achievements

• ESG topics were presented or discussed at every regularly scheduled Board meeting
• Integrated climate risk into enterprise risk management program
• Engaged investors and facilitated direct conversations between investors and company leaders on ESG matters
• Expanded disclosures on ESG priority topics to align with updated GRI Standards and continued to improve our Scope 3 emissions data methodology

Climate Goals & Targets

Environmental Challenges

• Increased vessel decarbonization regulations
• Accidental release or discharge of pollutants
• Vessel casualties from storms
• Securing a steady supply of LNG fuel
• Developing commercially viable net zero fuel sources

Mitigation Strategies

• Investing in technology and efficiency upgrades
• Fleet modernization and new vessels
• Collaborating with industry to advance new solutions
• Investing in LNG installations on several vessels
• Investing in new LNG-ready vessels
• Refining methodologies for calculating Scope 3 emissions
• Exploring electric equipment options for terminal operations
• Working with industry organizations to advance the transition to LNG and other low-carbon fuels

Supply Chain Management

Responsible Procurement

• Due diligence on technology vendors
• Clear rules regarding consent to share private information

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Storms

Transition Risks

• Increased vessel decarbonization regulations
• Availability and cost of low-carbon fuels

Opportunities

• Development of energy-efficient products and services
• Investment in new technologies and fuel sources

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB Marine Transportation Sustainability Accounting Standard, TCFD

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 8
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 16

Matson's initiatives contribute to these goals through community investment, workforce development, environmental stewardship, and ethical business practices.

Awards & Recognition

• Chamber of Shipping of America’s Environmental Achievement Awards
• Chamber of Shipping of America’s Jones F. Devlin Safety Award
• SSAT’s Green Marine terminal certification

Environmental Metrics

ESG Focus Areas

• Climate change
• Human capital management
• Diversity, equity and inclusion
• Sustainability governance

Environmental Achievements

• Achieved a 19% decrease in Scope 1 fleet emissions from our baseline year of 2016.
• Completed the installation of liquified natural gas (“LNG”) tanks and equipment aboard Daniel K. Inouye.
• Began re-engining work on Manukai, and continued planning for LNG installation work on Kaimana Hila.
• Continued design work for three new Aloha Class containerships for our China-Long Beach Express (“CLX”) service that will be dual-fuel capable and LNG-ready.
• Installed new engine monitoring software to help increase fuel efficiency.
• Met our goal of zero significant spills (defined as more than one barrel of oil or other hazardous substance).

Social Achievements

• Expanded executive leadership and development program.
• Among new hires into management roles, approximately 39% were women and 44% identified as diverse.
• Strengthened Leadership Diversity Scholarship Program.
• Sponsored a series of 12 cultural celebration events.
• Identified 3 employee resource groups to launch in 2024.
• Revamped performance management system to introduce quarterly check-ins with greater focus on career development.
• Provided more than $8.7 million in cash and in-kind services to over 730 nonprofits.

Governance Achievements

• Sustainability topics were presented or discussed at every regularly scheduled Board meeting.
• Climate risk and other relevant considerations continue to be integrated into Matson’s enterprise risk management program.
• Engaged investors and facilitated direct conversations between investors and Company leaders.
• Continued to mature our process for data collection and our overall disclosures.
• Updated Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Currently, there are no zero-carbon fuels available on a commercial basis for ocean-going containerships.
• Many alternative fuels—and the technology to deploy them—are still being developed.
• Difficulty of measuring, controlling and influencing the assets behind Scope 3 emissions makes it difficult to set or achieve Scope 3 goals.
• Heightened security challenges, including truck fraud and hijackings, and cargo theft on the railroads.

Mitigation Strategies

• Transitioning to more mature alternatives like LNG, and experimenting with newer fuels with lower carbon emissions where feasible.
• Investing in emerging technologies, testing new fuels, monitoring infrastructure development, tracking the commercial availability and affordability of various fuel types, and working to comply with regulations.
• Augmented internal process for evaluating, vetting and dispatching truckers and worked closely with rail partners to develop theft deterrent solutions.
• Developed business continuity plans and conducted on-site assessments and tabletop drills.

Supply Chain Management

Responsible Procurement

• Scrutinizing an operator’s or truck driver’s safety record before including them as a transport option for our customers.

Climate-Related Risks & Opportunities

Physical Risks

• Sea-level rise

Transition Risks

• Increased vessel decarbonization regulations
• Commercial availability of and Matson’s access to alternative fuels

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB Marine Transportation Sustainability Accounting Standard Version 2023-12, TCFD

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 16

Matson's initiatives contribute to these goals through various programs and operations.

Awards & Recognition

• Port of Long Beach’s Green Flag Award
• WhaleSafe ‘B’ performance ratings
• Blue Planet Partner Award
• Chamber of Shipping of America Environmental Achievement Award