Climate Change Data

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions reduction
• Health and safety
• Diversity and inclusion
• Ethical conduct
• Data security

Environmental Achievements

• Reduced Scope 1 GHG emissions from 390,094 metric tonnes CO2e in 2019 to 251,594 metric tonnes CO2e in 2020.
• Zero significant spills, fines, or environmental incidents.
• Commenced biofuel sea trials on the City of Oslo PCTC with potential for 80-90% emission reduction.
• Complied with IMO's reduced Sulphur fuel content requirement (0.50%).

Social Achievements

• Achieved a Lost Time Injury Frequency (LTIF) of 0.0.
• Zero marine casualties.
• Continued investment in cadet development programs.
• Increased female representation in onshore staff (33% in 2020 from 44% in 2019).

Governance Achievements

• Adherence to Norwegian Corporate Governance guidelines (NUES).
• Zero reported ethics, conduct, or corruption breaches.
• Zero reported data privacy or security breaches.
• Implementation of a whistleblower hotline.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and increasing idling time, leading to a higher Carbon Intensity Indicator (CII).

Mitigation Strategies

• Demonstrated resilience in maintaining operations despite pandemic challenges.
• Biofuel trial to mitigate GHG emissions.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct requiring adherence to environmental, social, and ethical standards.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB Marine Transportation Standard (2018), Norwegian Ship Owners’ Association ESG Reporting Guidelines

Environmental Metrics

ESG Focus Areas

• GHG emissions reduction
• Health and safety
• Diversity and inclusion
• Ethical conduct
• Data security

Environmental Achievements

• Successfully completed biofuel trial on City of Oslo, indicating potential for 80-90% emissions reduction (well-to-exhaust)
• Zero significant spills, fines, or environmental incidents
• Compliance with IMO's reduced Sulphur fuel content requirement (0.50%)

Social Achievements

• Lost Time Incident Frequency (LTIF) of 0.0 and zero marine fatalities
• Significant training investments in cadet development
• Progress towards a more diverse workforce (detailed figures provided for board, onshore, and onboard)

Governance Achievements

• Zero reported ethics, conduct, or corruption breaches
• Zero reported data privacy or security breaches
• Adherence to Norwegian Corporate Governance guidelines (NUES)

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions in 2021 due to COVID-19 restrictions and logistics backlogs

Mitigation Strategies

• Implementing a wide range of energy efficiency initiatives (low speed efficient bulb design, new efficient propeller design, anti-fouling, energy saving vessel operation)

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct requiring adherence to the same environmental, social and ethical standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB Marine Transportation Standard (2018), The Norwegian Ship Owners’ Association ESG Reporting Guidelines (2021)

Environmental Metrics

ESG Focus Areas

• GHG emissions
• Air emissions
• Fuel efficiency
• Ecological impacts
• Ship recycling
• Health and safety
• Diversity
• Human rights
• Developing human capital
• ESG governance
• Conduct, ethics and anti-corruption
• Data privacy and cyber security

Environmental Achievements

• Successful biofuel trials showing up to 90% carbon emission reduction
• 84% completion of ballast water treatment system installation on the fleet
• Zero significant spills
• Zero environmental incidents or fines

Social Achievements

• Established a hardship allowance to support Ukrainian seafarers and their families
• Allocated USD 200,000 in 2023 to further support crew members relocating outside Ukraine
• Maintained zero marine casualties
• LTIR of 1.1

Governance Achievements

• Executive compensation linked to ESG performance
• Zero reported data privacy or security breaches
• Zero reported breaches of the Code of Conduct and no reported corruption or bribery incidents

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 GHG emissions due to a larger fleet and increased vessel utilization
• Increased carbon intensity indicator due to post-COVID-19 restrictions and logistics backlogs
• Impact of the war in Ukraine on Ukrainian seafarers and their families

Mitigation Strategies

• Ongoing biofuel trials and development of individual vessel decarbonisation plans
• Establishment of a hardship allowance and additional support for Ukrainian seafarers
• Investment in fuel efficiency initiatives (low-speed efficient bulb design, new efficient propeller design, anti-fouling reducing hull resistance, energy saving vessel operation)
• Plans to invest in shore power connections by 2024

Supply Chain Management

Supplier Audits: 164 supplier screenings in 2022

Responsible Procurement

• Supplier Code of Conduct requiring adherence to environmental, social, and ethical standards

Climate-Related Risks & Opportunities

Physical Risks

• Weather disruption
• Vessel handling

Transition Risks

• Regulations
• Customer requirements

Reporting Standards

Frameworks Used: SASB Marine Transportation Standard (2018), GRI Standards (2021), Norwegian Shipowners’ Association’s ESG Reporting Guidelines (2021)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Diversity
• Human Rights
• ESG Governance
• Conduct, ethics and anti-corruption
• Data privacy and cyber security

Environmental Achievements

• Reduced Scope 1 GHG emissions by 10.7% to 420,732 metric tonnes CO2-e (2022: 470,969)
• Completed installation of ballast water treatment systems on 100% of the fleet
• Maintained SOx emissions below 0.45%

Social Achievements

• Zero Lost Time Incident Rate (LTIR)
• One marine casualty reported (material vessel damage, no injuries)
• Initiated cooperation with N. Y. Vaptsarov Naval Academy in Varna, Bulgaria for simulator training

Governance Achievements

• Established Board’s ESG Committee (January 2024)
• Initiated a Double Materiality Assessment for CSRD readiness
• Zero reported data privacy or security breaches
• Zero reported whistleblowing incidents
• Zero reported corruption or bribery incidents

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (lesser degree than during the pandemic)
• Capacity deficit in the car shipping market due to strong demand and limited open PCTC capacity
• Conflict in the Middle East impacting vessel routes and increasing sailing distances
• Evolving regulations and changing customer requirements
• Access to reliable and quality fuel supplies

Mitigation Strategies

• Implementing long-term decarbonisation plan with biofuel trials and vessel-specific plans
• Upgrading shaft/generators on distribution vessels for fuel savings
• Installing Yokogawa flow meters for real-time fuel consumption data and AI-driven optimization
• Integrating EU ETS clauses into charter contracts and establishing an EU ETS trading account
• Fleet renewal by divesting three conventional vessels and ordering four dual-fuel LNG vessels

Supply Chain Management

Supplier Audits: 6 supplier screenings in 2023

Responsible Procurement

• Supplier Code of Conduct with clauses related to safety, environment, anti-corruption, sanctions, regulations, and human rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting operations and impacting customers
• Health and safety impacts on workforce

Transition Risks

• Evolving regulations (EU ETS, carbon costs)
• Changing customer requirements for emission profiles
• Fuel market volatility
• Access to reliable fuel supplies

Opportunities

• Becoming a preferred low-carbon operator
• Providing lower-carbon shipping services
• Developing partnerships to accelerate decarbonisation
• Technology opportunities for improving onboard systems

Reporting Standards

Frameworks Used: SASB Marine Transportation Standard (2023), GRI Standards (2021), Norwegian Shipowners’ Association’s ESG Reporting Guidelines (2021)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed