Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Sold 35 vessels with an average age of 26 years, replacing them with younger, more environmentally friendly vessels with an average age of 7 years.
• Retrofitted a large number of older vessels to be more fuel-efficient.
• Equipped all vessels with ballast water management or treatment systems.
• Modernized the fleet by replacing six older vessels with four more energy-efficient vessels.
• Invested in propeller exchange, bulbous bow retrofit, and/or cold ironing of 9 large second-hand vessels, resulting in 10-15% energy consumption savings.
• New vessels built after 2013 meet higher environmental standards and have voluntary class notations (EP-D by DNV GL, ENVIRO by ABS).

Social Achievements

• Adherence to the Maritime Labour Convention (MLC) 2006, providing above-standard living and working conditions for seafarers.
• Approximately 95% of Masters and Chief Engineers promoted within the company.
• Implementation of a detailed QSEMS ensuring safe and sound operations.
• Founding member of The Container Ship Safety Forum (CSSF).

Governance Achievements

• Strict compliance with internal governance procedures and Corporate Governance Guidelines.
• At least two independent directors on the Board (per NYSE rules).
• All Audit Committee members are independent directors.
• Regular executive sessions for non-management directors.
• Adoption of Costamare Inc. Code of Business Conduct and Ethics, Anti-Bribery Policy, and Whistleblower Protection Policy.
• Affiliation of Costamare Shipping Management with the Maritime Anti-Corruption Network (MACN).

Climate Goals & Targets

Environmental Challenges

• Stricter regulations imposed by governmental authorities and regulatory agencies relating to ESG concerns.
• Ballast water discharge representing one of the main environmental challenges.
• Global sulphur cap on marine fuels (IMO 2020).

Mitigation Strategies

• Compliance with regulations and responsible addressing of ESG considerations.
• Implementation of a ballast management plan in accordance with IMO regulations.
• Investment in exhaust gas cleaning system (EGCS) technology to comply with the 2020 sulphur cap.

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: SASB Marine Transportation framework

Certifications: ISO 14001:2015 (68 vessels), ISO 50001:2011/2018 (68 vessels), ISO 9001:2016 (68 vessels)

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

• Climate Change
• Air Quality
• Marine Environment
• Employee Health & Safety
• Anti-Corruption
• Corporate Governance

Environmental Achievements

• Reduced CO2 emissions by 7.5% from 4,190,006 tons in 2019 to 3,872,348 tons in 2020.
• Reduced total energy consumption by 7.4% from 54,679,699 GJ in 2019 to 50,590,754 GJ in 2020.
• Installed scrubbers on 10 vessels and Ballast Water Management Systems on 15 vessels.
• Replaced five older vessels (average age 22.4 years) with three second-hand vessels (average age 11 years) and three new fuel-efficient vessels.

Social Achievements

• Improved crew welfare by enabling vaccinations at designated ports, providing PPE, and ensuring timely repatriation.
• Implemented Covid-19 prevention and response protocols onboard vessels and in offices.
• Introduced remote working for office employees with enhanced IT security protocols.

Governance Achievements

• Joined the Getting to Zero Coalition.
• Maintained strict compliance with internal governance procedures and corporate governance guidelines.
• Experienced no losses due to legal proceedings associated with bribery, corruption, or unethical business practices.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting seafarer well-being and crew changes.
• Limited global infrastructure for shore-based power (cold ironing).
• Environmental regulations and related requirements (costs for ship modifications and changes in operating procedures).

Mitigation Strategies

• Implemented Covid-19 prevention and response protocols, provided access to vaccines for seafarers.
• Continuously monitoring the landscape for shore-based power solutions.
• Implementing detailed and tailored management systems to ensure compliance with environmental regulations.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Business interruptions caused by sea level changes or more intense weather events

Transition Risks

• Environmental regulations and related requirements

Reporting Standards

Frameworks Used: SASB Marine Transportation framework

Certifications: ISO 14001:2015 (86% of fleet), ISO 50001:2018 (86% of fleet), ISO 9001:2015 (65 vessels)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Ecological Impact
• Anti-Corruption
• Employee Health & Safety
• Accident & Safety Management

Environmental Achievements

• Installed scrubbers on two newbuildings and purchased two drybulk vessels with scrubbers already installed, resulting in a 2% reduction in the consumption of fuels that contribute to higher GHG emissions compared to 2020.
• Renewed containership fleet by acquiring 16 vessels (average age 10 years) and selling five (average age 20 years). New vessels incorporate CO2 reducing technologies.
• Vessels provided with shore-based power in 24 port calls, saving approximately 850 tons of fuel.

Social Achievements

• Decreased Lost Time Incident Rate (LTIR) from 1.27 in 2020 to 0.55 in 2021.
• Provided COVID-19 vaccines to seafarers where feasible.
• Supported Ukrainian seafarers and their families affected by the conflict in Ukraine.

Governance Achievements

• No losses due to legal proceedings associated with bribery, corruption, or other unethical business practices.
• Established a whistle-blowing mechanism.
• Adherence to internal governance procedures and compliance with international standards (e.g., ISO 14001:2015, ISO 50001:2018).

Climate Goals & Targets

Environmental Challenges

• Increase in CO2 emissions (29% from 2020) due to fleet expansion.
• Increase in EEOI (2.3% from 2020) due to increased average speed of containerships and idle port days.
• Limited global infrastructure for shore-based power supply hindering cold-ironing expansion.
• Challenges in accurately predicting the ultimate cost of compliance with environmental regulations.
• Impact of the COVID-19 pandemic on seafarers' well-being and crew changes.

Mitigation Strategies

• Fleet renewal and vessel replacement approach.
• Implementation of operational measures to reduce CO2 emissions (Autopilot Optimization, Weather Routing, etc.).
• Retrofit program to reduce emissions and achieve fuel consumption savings.
• Continuous monitoring of sustainable solutions and readiness to adopt commercially viable options.
• COVID-19 prevention and response protocols onboard vessels and in offices.
• Provision of COVID-19 vaccines to seafarers.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Sea level changes
• Intense weather events

Transition Risks

• Environmental regulations affecting business (reduction in resale value, cargo capacity, etc.)

Reporting Standards

Frameworks Used: SASB Marine Transportation Standard (2018)

Certifications: ISO 14001:2015 (83% of fleet), ISO 50001:2018 (83% of fleet), ISO 9001:2015 (for 101 vessels)

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Safeguarding the Workforce
• Taking Care of Society
• Robust Internal Operations

Environmental Achievements

• 44% fleet AER reduction vs IMO Baseline Year 2008
• Average Efficiency Ratio (AER) improved by 13% (owned fleet) and 32% (overall fleet) compared to 2022
• 98% of fleet fitted with BWTS
• Pilot use of bunkering with biofuels

Social Achievements

• Seafarer retention rate of 94%
• 1,316 seafarer new hires
• Established complaint procedure mechanism for seafarers
• Implemented policy addressing harassment and bullying

Governance Achievements

• No corruption cases
• ESG scope expansion to include new business segments
• Plan to obtain 3rd party assurance

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on global emissions
• Complex challenges faced by the maritime industry
• Stringent environmental regulations (IMO, EU)

Mitigation Strategies

• Exploring retrofit options and operational improvements to reduce fleet emissions
• Monitoring market conditions to renew fleet with more fuel-efficient vessels
• Investigating alternative fuel options
• Implementing comprehensive safety protocols and specialized training for seafarers
• Maintaining high ethical standards, striving for transparency and compliance

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 50001