A.P. Møller - Mærsk A/S ALL THE WAY Esplanaden 50 DK–1098 Copenhagen K Tel. +45 33 63 33 63 Company reg. no. 22756214 www.maersk.com

2020 Sustainability Report

A.P. Møller - Mærsk A/S 2 A.P. Moller - Maersk Sustainability Report 2020 Contents Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 3

Decarbonising logistics, page 16 12 Strategic sustainability priorities Table of 13 Enabling sustainable trade 16 Decarbonising logistics contents 23 Sustainability in our end-to-end offerings 25 Responding to a pandemic 4 Introduction

4 Business model and performance highlights

6 Letter from our CEO

8 Strategy, governance and materiality

Safety, page 30 29 Responsible business practices

30 Safety 38 Air emissions

32 Responsible ship recycling 39 Ocean health

34 Diversity and inclusion 40 Anti-corruption

36 Employee relations 41 Responsible tax

37 Responsible procurement

About the report

This is the Annual Sustainability Report of A.P. Møller - Mærsk A/S (hereinafter referred to as A.P. Moller - Maersk or Maersk as the consolidated group of companies and A.P. Møller - Mærsk A/S as the parent company). The report covers activities in the 2020 calendar year. Our approach to sustainability reporting is to focus on material issues Enabling sustainable trade, page 13 and activities, in line with stakeholder concerns and relevance to our business and society in terms of context, completeness and balance. We 42 Progress overview strive for optimal accuracy, timeliness, clarity and reliability in the way we communicate. This report also represents our statutory statement on social responsibility, underrepresented gender and diversity in accordance with sections 99a & b and 107d of the Danish Financial Statements Act. 44 Data and assurance

44 Performance data As a supplement to the Annual Sustainability Report, we prepare an ESG data overview of key performance indicators as well as SASB and TCFD 46 Sustainability accounting principles index tables. The ESG overview can be downloaded at: https://investor. maersk.com under files for download at the release of the Annual Report. 48 Independent assurance report

Previous years’ data and our UN Global Compact Communication on Progress table are also available online. Please visit Responding to a pandemic, page 25 https://www.maersk.com/about/sustainability/reports. 4 A.P. Moller - Maersk Sustainability Report 2020 Introduction Business model and performance highlights Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 5

What we do and VALUE CREATED 2020 For our people performance Our people bring key skills and capabilities to our business highlights how we create value and in turn we must keep them safe and engaged while offering interesting career paths in enabling global trade. Read about our work on safety on pp. 30-31. Revenue 39,740 A.P. Moller - Maersk enables its customers to trade and grow by transporting (USD million) goods anywhere. We work to provide customers with end-to-end logistics Export products and services, taking complexity out of global value chains. terminal EBITDA 8,226 (USD million) Stakeholder relationships Technology and IT Assets and end-to-end and partnerships Technology and IT are key to delivery network enhancing our operational We rely on constructive relationships Our assets, supplier relationships Relative CO2 performance and solutions 46.3% with e.g. customers, suppliers, peers and expertise in end-to-end delivery for our customers. reduction and authorities to maintain supportive networks ensure our customers framework conditions. See our key resilient supply chains. (percentage vs partnerships on p. 10. For the environment 2008 baseline) Our industry is a significant contributor Ocean to global GHG emissions, and we are transport Warehousing & committed to decarbonising our distribution operations. through investments and Greenhouse gas collaboration. Read more on pp. 16-22. emissions NET ZERO CO2 (1,000 tonnes CO2 eq.) Direct emissions 33,902 Rail (scope 1) freight Indirect emissions 305 Our brand Financial capital (scope 2), Start destination For more than a century, we have built We have a strong balance sheet and location-based partnerships with customers, enabling them are committed to remaining investment to prosper by facilitating global trade. grade-rated. Value chain 19,017 emissions For our investors (scope 3) RESOURCES In our transformation to become the global integrator of container See more performance data on pp. 44-45 logistics, we continue to innovate Import and grow shareholder value. terminal

NET ZERO CO2

Our people and culture Natural resources For society For our customers Our talented and diverse group of Our business relies on natural resources, With global presence and potential for impact comes By connecting and simplifying our 70,000 80,000 employees live our core in particular steel (the main component the responsibility and opportunity to ensure open, customers' supply chains, we enable them values every day as they help of our vessels) and oil for fuel. inclusive and sustainable trade. Read more on pp. 13-15. to focus on growing their business. customers realise their ambitions. Warehousing & distribution Customer's warehouse or shop

MARKET End destination 6 A.P. Moller - Maersk Sustainability Report 2020 Introduction Letter from our CEO Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 7

"I strongly believe that we, as an industry leader and with the resources available to us, have an obligation to do all we can to get to a carbon neutral fleet as fast as possible."

and inclusive trading system. Towards this end, Guided by our core company values, our In simple terms, we will not be satisfied until we work to reduce complexity by digitising commitments to international standards and we reach our ambition of eliminating fatalities global trade. As physical lockdowns moved guidelines, and with high expectations from and severe injuries and provide safe and resilient more customers online during 2020, we saw customers, investors, regulators, employees products and services to our customers. significant growth in our digital solutions, such and other stakeholders, we continue to address as Maersk Spot, the Maersk app and Twill. challenges across our operations and supply Social movements a timely reminder chains, including key areas such as ship 2020 saw the renewed strength of social A step-up on decarbonisation recycling and safety. movements to promote race and gender equality. Decarbonising logistics is where we can and We have taken on the task of using our Our global presence means that we are must move the needle the most for sustainable leverage to drive responsible practices in the affected by events and movements regardless development. Maersk remains fully committed ship recycling industry. After four years in Alang, of where they take place. Notable examples to our ambition of eliminating greenhouse India, we know that this is possible, and with such as Black Lives Matter in the US, which has gas emissions, as we continue to work towards still larger vessels in our fleet nearing end of spilled over to many other countries, and new net-zero emissions from our ocean activities life, it is imperative that we create opportunities waves of #metoo serve as timely reminders in 2050; a 60% relative reduction in emissions for responsible ship recycling at yards outside that we must continue conversations on diversity from shipping by 2030 compared to 2008, and OECD countries. We are engaging actively and inclusion and take action where needed. investigating how we can expand our net-zero to find options that ensure enforcement of Maersk is a values-driven company. We treat ambition to cover our full operations and value international conventions while also enabling our colleagues and partners with respect and chain across all emission scopes. We recognise global opportunities for responsible ship dignity, and we do not tolerate discrimination or Letter from that climate action is a strategic imperative for recycling that benefit both shipowners and harassment of any kind. It is as simple as that. our company and have redesigned our organisation local communities. In 2020, we have addressed these issues in order to embed the agenda and ensure in our organisation and clarified how we deal collaboration across our business activities. Failing safely with them. We have clear policies in place and In 2020, we began a process to step up our The foundation for safety in Maersk is to build a whistleblower system with a range of efforts on decarbonisation. I strongly believe capacity for 'failing safely', acknowledging that reporting options. our CEO that we, as an industry leader and with the even while all precautionary measures must For Maersk, 2020 was a year of crises in resources available to us, have an obligation to be applied, some accidents and incidents are global health and economies, lockdowns, do all we can to get to a carbon-neutral fleet as likely to still occur, but the implications of these closed borders and distress – but also of new 2020 was year of contrasts. While the pace of innovation and a natural willingness to care for fast as possible. We will not be using transition should be as small as possible. opportunities for our company, accelerated modern life slowed down due to restrictions colleagues, serve customers and help society fuels, but will instead leapfrog directly to net One of our contractors lost his life while progress towards our strategic goals and a or lockdowns, trends and change agendas on respond and recover. I am at the same time zero fuels. The launch of the Mærsk Mc-Kinney working for Maersk in 2020. This saddens me chance to see what we as leaders and our digitisation and sustainability accelerated saddened by the fact that the COVID-19 virus Møller Center for Zero Carbon Shipping in 2020, deeply and emphasises that we need to do employees are truly capable of. during the COVID-19 pandemic. While some has claimed the lives of some of our colleagues. made possible by our majority shareholder, the more to manage our risks and build the capacity In the coming year we will be applying our industries came to a sudden halt others surged. A.P. Moller Foundation, together with a group of we need to avoid such a tragic event. capacity to the global distribution of vaccines And while lives and livelihoods were lost at Sustainability as a fully integrated industry-leading players, is an important step To this end, we centralised the organisation of and to keeping supply chains open, and as such tragic rates, human ingenuity and adaptability business priority in aid of our commitments. our safety work in 2020. The new organisation we will continue to play our part in enabling rose to new heights. Even as the urgent priorities of the pandemic As Maersk 's presence grows on land to reinforces that Maersk has one shared safety open, inclusive and sustainable trade – together. Even though borders closed, air traffic and our business transformation have kept us offer integrated logistics solutions, so does our strategy which is implemented and enforced stopped and roads blocked across the globe, busy, sustainability remains at the top of our responsibility and commitment to help our equally across the company. global supply chains remained open. The agenda, and we continue our commitment and customers decarbonise their global supply The decision is driven by the need to match geographical presence and leadership position support for the principles of the United Nations chains end to end. This is an integral part of our and mirror the integrated company that Maersk of A.P. Moller - Maersk (Maersk) enabled Global Compact. We see an acceleration in strategic promise of serving all our customers' is becoming, and also by the need to establish Søren Skou us to find new ways of keeping essential expectations from all stakeholders, not least transportation and logistics needs, and we will a stronger link between the company’s strategic CEO of A.P. Møller - Mærsk A/S goods moving for customers and societies, customers, investors and employees. In 2020, engage with customers and industry partners to priorities and the implementation level, to as they kept businesses running and fought we updated our sustainability priorities to further develop standards and solutions to support this ensure that we continue to learn and manage the virus. Just as we in our company focused integrate sustainability into our business strategy, green transition. risks by listening to our frontline employees. on protecting our employees, who play an and we are accelerating our efforts to Most importantly to ensure the continuous instrumental role in moving global trade while decarbonise shipping. Strengthening the foundation safety and security of our people, but also to dealing with long shifts at sea and disruptive, The pandemic has only reinforced our role in We are strengthening the responsible business assure our customers that this is the case new routines on shore. I remain tremendously multiplying the benefits of trade and in making practices that constitute the foundation of when they leave their supply chain obligations proud to experience how we responded to these accessible to all so that more people our sustainable end-to-end offerings to our in our hands. this global emergency by showing resilience, and businesses can be part of a global, open customers as well as our own operations. 8 A.P. Moller - Maersk Sustainability Report 2020 Introduction Strategy, governance and materiality Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 9

Strategy, governance Our sustainability governance framework

Board of Directors and materiality Transformation & Innovation Committee, Audit Committee A.P. Moller - Maersk Executive Leadership Team Key programmes Governed by Key external policies and commitments As sustainability becomes a strategic imperative for A.P. Moller - Maersk, Decarbonising logistics Decarbonisation SteerCo The Paris Agreement IMO Strategy on Reduction of GHG Emissions from Ships we have updated our sustainability priorities and governance to underpin Executive sponsors: Henriette Thygesen The Intergovernmental Panel Task Force on Climate-related Financial Disclosure (TCFD) and Vincent Clerc on Climate Change (IPCC) a more targeted and integrated approach. Health, safety and environment Commit* Rule UN Global Compact IMO Ballast Water Management Convention Executive sponsor: Morten H. Engelstoft IMO SOLAS Convention IMO MARPOL Convention Annex VI EU Sulphur Directive 2016/802 IMO International Safety Management (ISM) Code UNCLOS A.P. Moller - Maersk's (Maersk) approach to society continue to rise. This impacts not only and to take into account the physical effects sustainability is to take responsibility in line with Maersk, but importantly also our customers, of climate change and secure a viable business Responsible ship recycling Responsible ship recycling SteerCo Hong Kong Convention UN Guiding Principles on Business and Human Rights our values and commitments, and to assume a who are converting the expectations, risks and for the future. A.P. Moller - Maersk Responsible ILO Conventions OECD Guidelines for Multinational Enterprises leadership position on global issues where we opportunities for sustainable products in the Furthermore, lawmakers – particularly the Ship Recycling Standard have the necessary competencies and leverage consumer market into requirements for us Executive sponsor: EU – are moving rapidly on legislation related Henriette Hallberg Thygesen to make a real difference. We do this through to deliver decarbonised and increasingly also to sustainability, also on issues beyond climate our business activities and in line with our end-to-end responsible supply chain solutions. change and decarbonisation. For example, the Employee relations (labour rights) Commit Rule UN Global Compact UN Guiding Principles on Business and Human Rights business strategy, while we listen carefully to Almost three out of four of our key clients EU is enacting the taxonomy on sustainable Executive sponsor: Ulf Hahneman ILO Conventions OECD Guidelines for Multinational Enterprises stakeholders' expectations. seriously consider sustainability in their supply activities, which through demands on the Maritime Labour Convention, 2006 (MLC, 2006) In 2020, this approach has led us to reassess chains, and 90 of our top 200 customers have financial community will push requirements Anti-corruption Commit Rule UN Global Compact OECD Guidelines for Multinational Enterprises and elevate our ambitions on sustainability, set or are in the process of setting ambitious for transparency on ESG data across business Executive sponsor: Caroline Pontoppidan The US Foreign Corrupt Practices Act and the UK Bribery Act which are now further integrated in our Global science-based or zero carbon targets. sectors. Further initiatives are in the EU's pipeline, Integrator strategy and the transformation of ESG is moving from the niche confines of including increased reporting obligations, Responsible procurement Commit Rule UN Global Compact UN Guiding Principles on Business and Human Rights Maersk to one company. socially responsible investments to a focus ensuring sustainability in corporate governance Executive sponsor: ILO Conventions OECD Guidelines for Multinational Enterprises We see continued strong momentum on on financially material impacts that matter to and not least, mandatory social and Henriette Hallberg Thygesen the sustainability and ESG (Environment, mainstream investors. The financial community environmental due diligence in supply chains. Responsible tax Maersk Tax Principles B Team's Responsible OECD Guidelines for Multinational Enterprises Social, Governance) agenda in society as expects companies to demonstrate a credible As a consequence, sustainability is becoming Executive sponsor: Patrick Jany Tax Principles the expectations and ambition levels of our plan that aligns with the Paris Agreement’s not only a values-based responsibility for us but customers, investors, regulators and civil 1.5-degree target across the full supply chain, also a commercial and strategic imperative for Human rights A.P. Moller - Maersk Code of Conduct UN Global Compact UN Guiding Principles on Business and Human Rights Executive sponsor: Caroline Pontoppidan OECD Guidelines for Multinational Enterprises

Diversity and inclusion Diversity & inclusion policy UN Global Compact UN LGBTI Standards for Business Executive sponsor: Ulf Hahneman

Enabling sustainable trade: Sustainability priorities for the Global Integrator * Commit is Maersk’s core governance framework prescribing how we work including the A.P. Moller - Maersk Code of Conduct and 23 policies (known as "Rules") covering Business Ethics and Governance topics

Maersk as part of our proposition to customers, expertise and assets: decarbonising logistics, • We will increase our focus on end-to-end capital providers, employees and regulators, multiplying the benefits of trade, contributing sustainability in our offerings in response to and foundational to our broader societal licence to halving food loss, and leading change in the the increased responsibility and opportunity to Decarbonising logistics to operate. ship recycling industry. We have progressively manage supply chain risks for our customers as embedded responsibility for sustainability part of our Global Integrator business strategy. Defining a sustainable business strategy implementation into core functions and • We continue to ensure responsible business Our sustainability efforts have matured over the business areas, and we are now ready to practices across our operations with clear last decade with increasing ambitions matching integrate our sustainability priorities as an governance, accountability, and transparency the maturity of the field and expectations of embedded part of our business strategy. on policies, commitments and performance. Sustainability in our end-to-end offerings our leading customers and key stakeholders. The sustainability strategy and ambitions we In 2020, we have defined updated sustainability Our commitments on inclusive trade and defined in 2017 have served well in creating priorities for the Global Integrator strategy: food loss are fully owned and driven in line of positive impact along multiple dimensions. Enabling sustainable trade by decarbonising business, and remain part of our reporting on We have made significant progress on the four logistics, sustainability in our end-to-end sustainability as they are integral to our strategy shared value priorities that we identified in offerings and responsible business practices. and what we do as a business. Responsible Responsible business practices 2017 as those where Maersk has the strongest • We will take leadership on decarbonising ship recycling is also fully owned in line of potential to contribute towards the Sustainable logistics as our single most important strategic the business and part of ensuring responsible Development Goals, leveraging our business sustainability priority. business practices. 10 A.P. Moller - Maersk Sustainability Report 2020 Introduction Strategy, governance and materiality Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 11

Governance structures in place daily work, and we incorporate feedback from from previous years including an analysis of Governance of sustainability in Maersk is the regular engagements in determining the how Maersk relates to the UN Sustainable Material sustainability issues 2020 overall anchored with the Board of Directors materiality of sustainability issues and setting Development Goals. (Transformation and Innovation Committee) strategic direction for our work. Based on research, stakeholder dialogue and management prioritisation, we determine how sustainability issues are material to Maersk by applying and the Executive Leadership Team. Under In 2020, our engagement with customers Revisions and additions to our model criteria and filters of risk, responsibility and strategic opportunity assessment. The most material issues are outlined below and reported on in relevant their oversight, our sustainability governance on sustainability has focused particularly on We are simplifying our representation of sections of this report. and integration approach secures executive providing transparency on responsible business material issues to reflect our new strategic ownership of sustainability and involvement practices and visibility of logistics emissions, approach, highlighting the issues that are Sustainable and Responsible in setting sustainability priorities and driving as well as on sustainability innovation, strategic imperatives and hold the greatest Safety Responsible ship recycling inclusive trade procurement implementation, while also embedding encompassing our currently available and potential for value creation: decarbonisation, sustainability in core processes related to strategy, future solutions for net zero carbon shipping. end-to-end sustainability in our offerings, and performance, planning and risk management. Our engagement with investors, banks and sustainable trade. Furthermore, we continue Climate change / Diversity & inclusion Air emissions Responsible tax In 2020, we revised the governance structure insurers on ESG/sustainability has likewise to be guided by the perspective of double Decarbonising logistics on decarbonising logistics to support an centred on decarbonisation, but ship recycling, materiality in determining how sustainability Employee relations Ocean health Disaster response acceleration of our efforts. This includes air emissions, ocean health and safety are also issues may constitute responsibilities or risks, an expanded steering committee with two topics important to our large investors. enabling us to understand where Maersk has End-to-end responsibility Human rights Anti-corruption executive members serving as an accountable We engage actively in many partnerships on a responsibility to mitigate potential negative decision-making forum, supported by a broader key sustainability topics (see overview below). impact on society or the environment and in supply chains decarbonisation advisory group, preparing work In addition, we are active members of industry where issues may pose significant risk to plans and strategies and ensuring alignment organisations such as Danish Shipping and the our business. across the company. The advisory group World Shipping Council. Our disclosure of sustainability issues as has defined a set of workstreams covering potential risks to our business draws on our commercialisation, vessel design, energy Materiality: Working on issues that matter enterprise risk management process, which Changes to reporting as a result of strategy and materiality review Human rights in this report efficiency, fleet and network, retrofitting, new In line with our practice of reviewing materiality assesses top risks to achieving our business fuels, sourcing and framework conditions. annually, we have updated our overview of plan within a 5-year horizon. The sustainability material sustainability issues drawing on the issues that are assessed as among our top Our commitments to open, inclusive and sustainable trade are owned in There are many aspects of our business that touch Stakeholder engagement outcome of stakeholder engagement and risks are safety (failure to ensure the safety line of business and delivered in particular through strategic investments in on human rights. Commitment to human rights Five stakeholder groups are prioritised research conducted as part of the update of and security of our employees), climate change digitising global trade. We continue to report on our 2025 commitments as is expressed in the A.P. Moller - Maersk Code of for sustainability strategy, reporting and strategic sustainability priorities. The research (failure to decarbonise our end-to-end supply well as on key societal trends in global trade. Conduct and our human rights due diligence is engagement: customers, employees, investors, has provided insights into expectations, leading chain at a speed that matches our customers’ described on the following pages of this report. authorities and NGOs/thought leaders. Issue practices and emerging topics across customers, and investors’ expectations), and anti-corruption Air emissions continue to be a material responsibility topic, while the potential owners and leaders across Maersk engage with investors, and broader society, and has added (being involved in a large compliance case). financial risk impact of IMO 2020 (lack of enforcement of the cap on sulphur Air emissions 38 representatives of these groups as part of their to our existing knowledge and analyses in fuel oil) as reported on in previous years is reduced. The right to the highest attainable standard of health.

Supply chain sustainability risk is becoming more strategically relevant for us in our customer offerings. We report on it in the chapter on end-to-end Safety 30 sustainability in our offerings. The right to life and the right to Key partnerships the highest attainable standard of health. We remain engaged in a wide range of partnerships and are members of different organisations working towards sustainability goals. We no longer report on food loss as a separate disclosure topic but incorporate highlights in this year’s report as part of the chapter on sustainable trade. Diversity and inclusion 34 The right to freedom from discrimination and the right to family life. Responsible ship recycling continues to be a material responsibility topic which we report on in the responsible business practices section. Responsible procurement 37 Human rights principles and standards We no longer report on human rights as a separate issue, but have integrated related to labour. human rights commitments and frameworks such as the UN guiding principles on human rights and business into our governance approach and issue management processes. See overview to the right. Responsible ship recycling 32 Human rights principles and standards related to labour, in particular the right to life and the right to the highest attainable standard of health.

Employee relations 36 Human rights principles and standards related to labour, for example freedom of association and collective bargaining, equal treatment, child labour, forced labour, working Responsible Trucking hours, compensation, privacy, rest and leisure. 12 A.P. Moller - Maersk Sustainability Report 2020 Strategic sustainability priorities Enabling sustainable trade Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 13 Enabling sustainable trade

As the global integrator of container logistics, we work to ensure that trade is open, inclusive and sustainable.

Wherever you live, chances are that your living efforts of those on the frontline that make of protectionist measures can offer a multi- conditions are closely tied to how much and trade move: seafarers, dockworkers, warehouse billion-dollar stimulus to the global economy how well your country trades. Since 1980, staff, truck drivers and many more. Throughout without burdening taxpayers and public finances. Bangladesh has seen a four-fold increase in the crisis, they have kept supply chains moving. The pandemic has been particularly hard exports with poverty rates declining from 45% For our seafarers and their families this has on small and medium-sized businesses that to less than 15% today1. In South Korea, another come at great personal sacrifice (see p. 26). account for two-thirds of all jobs globally. trading nation, an average employee generates Second, the investments we have made Boosting their access to trade is critical for an 13 times more wealth in a day than she did fifty into operational excellence, expansion of our inclusive recovery. Furthermore, helping SMEs years ago2. In Turkey, the typical consumer can portfolio of services and new digital solutions grow and diversify their export markets will attribute a third of their real income to lower over the past years have made supply chains make them and the millions who depend on prices enabled by trade3. much more resilient. Comparing 2020 to 2019, them more resilient to future crises. the Maersk App nearly doubled the number Lessons from a pandemic of business transactions – from an average of During 2020, we saw how fragile this progress about 21,400 per week in 2019 to an average can be – a real-time demonstration of what of about 42,600 per week in 2020. Similarly, Live demonstration of can happen when economies shut down. business transactions on Maersk.com – one of the power of trade The International Labour Organization has the world’s largest B2B-sites – are up by 18% estimated that as a result of the pandemic, year on year. As the pandemic disrupted the It is tempting to think that in an uncertain global labour incomes have declined by more global economy, our strategic focus on building world, decoupling supply chains and than 10% in 2020, corresponding to hundreds end-to-end supply chain visibility helped our increasing protectionism and self- of millions of jobs4. The economic hardships customers slow down, speed up and redirect sufficiency is the way to go. 2020 has Strategic caused by COVID-19 are not equally distributed, supply as shut-downs rolled through global demonstrated just how flawed this and inequalities within and among countries markets. Third, governments have on the whole strategy is. are likely to widen. According to the World Bank, consciously worked to keep trade open in order It is because of open supply chains, during the pandemic the number of people to preserve jobs and economic activity, enabling digital connectivity and rules-based living in extreme poverty (less than USD 1.90 logistics companies to do their job. trade that countries and businesses have a day) has gone up for the first time in twenty been able to maintain essential services sustainability years and there is a real risk that we will not Using trade to drive recovery and supplies, even as half the global reach the UN Sustainable Development Goal of The learnings that helped us during the crisis population went into lockdown. eradicating extreme poverty by 20305. will also be essential for the rebuild that lies But while global supply chains are At the same time, 2020 also demonstrated ahead. Open, inclusive and sustainable trade essential during the crisis and for the the power of open trade and well-designed should be at the centre of this effort. recovery, going forward it will not be priorities logistics. The pandemic has been a demand- Much attention has been focused on the business as usual. The increased need side crisis, but bar the initial shut-down in China, US-China trade war, but trade protectionism has for resilience experienced during the and initial shortages of face masks, it has not been on the rise among all the G20 economies pandemic adds to an already existing been a supply-side crisis. Logistics supply chains since the 2009 global financial crisis, and set of factors, including technological Sustainable trade, decarbonisation and have kept moving throughout the pandemic. US and China account for no more than a innovations and geopolitics that are sustainability in our end-to-end offerings Three factors in particular explain why this quarter of protectionist measures since 2017. transforming supply chains. We expect has been the case. First, the extraordinary This we can no longer afford. The removal that resilience, redundancy and scalability are strategic imperatives to our business. will play a bigger role for our customers, with more focus on the geographic diversity and resilience of suppliers, 1 http://povertydata.worldbank.org/poverty/country/BGD 2 https://ourworldindata.org/grapher/labor-productivity-per-hour-pennworldtable stress-testing supply chain networks, and 3 https://www.nber.org/papers/w20331.pdf p. 39 'just-in-case' inventory management. 4 https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_755875/lang--en/index.htm 5 https://www.worldbank.org/en/news/press-release/2020/10/07/covid-19-to-add-as-many-as-150-million-extreme-poor-by-2021 14 A.P. Moller - Maersk Sustainability Report 2020 Strategic sustainability priorities Enabling sustainable trade Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 15

Maersk is committed to on Trade and Development (UNCTAD). The aim above, and decarbonising logistics, described in efforts were required during 2020 to minimise handling and temperature control in the of the collaboration is to develop ASYHUB, detail on pages 16-22, which will result in the disruptions brought on by COVID-19 and ensure cold chain resulting in less food loss, as well helping connect a digital hub that will allow customs decoupling of greenhouse gas emissions during all elements across the cold chains including as working with customs to ensure faster of global containerised administrations globally to exchange digital transportation from economic growth. cold stores and trucking could continue to run processing, which equals less waste and better shipping information with platforms such as Decarbonising logistics is only one part of the smoothly, and ensure the stability of global prices for the farmers. We piloted this project in trade to digital solutions TradeLens, an open and neutral supply chain sustainability challenge related to consumption, food supply. 2019, and in 2020 we have worked to scale it up platform developed by Maersk and IBM. The but it is the one which we are able to impact During 2020, the Cold Chain Logistics area to cover more farmers and more destinations. by 2025 ASYHUB solution will enable customs to directly, as opposed to consumption of natural expanded and now serves several hundred Maersk also contributes to reducing 50% have greater visibility of goods entering and resources, build-up of non-recyclable waste, customers across nearly 50 countries globally. food loss both during transportation and at leaving their countries, while drastically cutting etc., which are issues that must first be dealt We opened one new cold chain facility and are supermarket and consumer level through down on the time and cost for importers and with in the systems where they occur. progressing on three construction or expansion investments made by our venture arm, Maersk Delivering on our commitments accessible to small companies. In 2020, we exporters to clear their goods. Development of In simple terms, we are working to decarbonise projects to develop our network of cold storage Growth. These include investments in for Through Twill, our digital logistics offering integrated MODIFI’s offering into Twill. the solution was completed in 2020 and it will how container cargo is moved around the world. warehouses. example Fliit, a Germany-based digital freight for small and medium-sized customers, Women-owned businesses and women be tested by customs authorities in Cambodia The sustainability of what is inside the container We work with customers to test solutions forwarder specializing in food logistics, Ripe.io and Maersk Growth, A.P. Moller - Maersk’s entrepreneurs hold particular promise in making and Sri Lanka during 2021. is not within our direct sphere of influence, and that target produce at the origin, working from – a platform leveraging blockchain technology (Maersk) corporate venture arm, we pursue trade work better for inclusive growth. In 2020, must as a starting point be dealt with by the harvest to container station and beyond to and AI to provide data insights along the food our commitment to connecting 100,000 we continued our collaboration with the SheTrades The link between trade and climate change cargo owners. ensure that the product is treated in the best supply chain, and Spoiler Alert, a company SMEs, including women-operated business, initiative of the International Trade Centre, with We recognise that concerns over the possible way to sustain quality and secure as building a marketplace for discounted perishables. to international trade by 2025. As part of this the aim of connecting more women to trade. sustainability of global consumption patterns Minimising food loss with customers little food loss as possible. One such example Our focus during 2020 has been on efforts work, we recognise that trade finance is one of As shippers, logistics providers, customs remain and that in the light of the pandemic, We are helping to halve food loss during is how we have worked with citrus growers to create change on the ground, and the the key barriers to trade for small businesses, officers and many more supply chain actors this debate has come to include the added transportation as an integrated part of our Cold in Morocco, where preservation of food development of a metrics framework and and for this reason we have invested in MODIFI, have been holed up at home around the world, dilemma of jobs and livelihoods lost in Chain Logistics business, focusing on developing quality in citrus fruit during transportation broader partnerships to guide and document which specialises in making trade finance digital platforms have enabled them to keep production countries in particular. and scaling solutions to connect and integrate was challenging. Our work included quality- our impact on food loss in the supply chain operations moving. Maersk is committed to Our premise is that fighting climate change our customers' cold chains. Substantial extra preserving processes related to packing, remains a work-in-progress. helping connect 50% of global containerised should not be at the expense of trade, because trade to digital solutions by 2025. The potential this will lead to another set of sustainability "Because of flexible, connected impact of reaching this target was demonstrated challenges: lack of decent work, increases in supply chains and rules-based in an analysis of our terminal in Mumbai in India poverty, hunger, lower availability of funds Our commitments on sustainable trade global trade, countries and concluded in 2019. This showed that digitising to invest in sustainable transformation and businesses have been able to trade processes can help reduce costs for new infrastructure and more. As the past year exporters and importers by up to USD 260 has shown us, keeping trade up and running Commitments Progress maintain essential services and million annually in Mumbai alone, equal to positively impacts the chances of sustainability supplies, even as societies across approximately 15% of total costs. staying on the global agenda. Connect 50% of global containerised TradeLens has integrated with over 220 organisations, including data from more than ten ocean carriers and more than the globe went into lockdown." Our aim is to help realise this potential on Maersk is best positioned to impact two trade to digital solutions that reduce 600 ports and terminals, resulting in coverage of nearly half of the world's ocean container cargo. Integrations of CMA a global scale. In 2019, Maersk entered into an aspects of making trade and consumption supply chain barriers by 2025 CGM and MSC owned terminals is being planned. Søren Skou, innovative partnership with the Government of more sustainable: by ensuring access to trade TradeLens involvement in a multi-stakeholder project to automate advance sea cargo data for developing countries will CEO, A.P. Møller - Mærsk A/S Germany and the United Nations Conference by removing friction in trade as explained start with pilots in Cambodia and Sri Lanka. Help connect 100,000 small and • Twill, our digital shipping platform focused on SMEs, counted over 4,000 active customers in 2020. medium-sized enterprises (SMEs), • Almost 1.700 participants joined Twill's webinars and coaching programmes. including women-operated businesses, • By the end of 2020, we had invested in 21 start-ups enabling trade for SMEs. These start-ups reach more than 15,000 to international trade by 2025.6 customers and help them connect to global trade.

Contribute to trade facilitation reforms Through our participation in the Global Alliance for Trade Facilitation, we provide knowledge and data to enable reforms Twill employees coach women entrepreneurs in 30 developing countries by 2025. in developing countries. By the end of 2020, we had contributed to reforms in ten countries. Action was delayed on a number of projects, As part of Twill’s collaboration with ITC SheTrades, enable them to change their operations to increase that good knowledge about the export process in predominantly due to COVID-19. we organise coaching programmes between Twill their competitiveness in international trade. Mexico had been achieved and a pricing strategy Contribute to halving food loss in In 2020 our Cold Chain Logistics business expanded to cover several hundred customers across nearly 50 countries employees and representatives of SMEs. In 2020, This is the case for Rocio Aslida Norzagaray established. Furthermore, Rocio and Maria had logistics in support of sustainable globally. We opened one new cold chain facility and are progressing three construction/expansion projects in our network a pilot programme of four weeks and a subsequent Sandoval, co-owner and CEO of Dios Cacao in worked on Dios Cacao’s supply chain and designed development and growth of our cold of cold storage warehouses. The fundamental challenge during the COVID-19 pandemic in 2020 has been to help ensure eight week-long programme were established to Mexico, producing and selling gourmet chocolate an export plan based on actual quotes and risks. chain business the stability of global food supply. support a total of 29 women entrepreneurs from products, promoting the consumption of Mexican “Thank you for the fortune of being part of this We did not make progress in 2020 on the development of a metrics framework and broader partnerships to guide and Nigeria, India, Mexico and Kenya. The business cocoa and on a mission to improve crops and programme. I now feel more capable in dealing document our impact on food loss in the supply chain. owners were allocated a Twill coach, and the pairs support the social fabric of communities in their with future challenges, “ Rocio Sandoval wrote to 6 We no longer report on a previous target on SME share of Maersk revenue because we have come to understand that their overall share of Maersk revenue does not contribute to providing meaningful measures of the worked on predefined challenges experienced supply chain. Twill at the end of the programme. impact on our work. by the business and communicated in advance. Rocio Sandoval came into the coaching The Twill employees working as coaches These were not only logistics challenges, but also programme with a desire to expand Dios Cacao's were equally enthusiastic about taking part in addressed questions related to sales, e-commerce, market beyond Mexico, but declaring that she did the project. A full 95% reported that they had HR and marketing. not know where to start and would like help to increased their understanding of SMEs and 19 of the 25 participants in the eight week understand what the company’s target audience their pain points, while 86% increased their programme took part in a follow-up, and a full and pricing strategy might be when trying to expand. understanding of developing markets, and 94% of these reported that the programme would At the end of the eight weeks, Rocio and her 100% felt that they had improved their Twill coach, Maria Fernanda Muniz Tapia, agreed interpersonal skills. 16 A.P. Moller - Maersk Sustainability Report 2020 Strategic sustainability priorities Decarbonising logistics Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 17 Decarbonising Our commitments on decarbonisation logistics 2030 2050

Decarbonisation is a strategic imperative Two years after setting our net zero ambition 60% relative CO reduction Net zero vessels Net zero in December 2018, we have come further than we 2 for our industry and our company. We are imagined possible at that time. from shipping in operation CO2 emissions intensifying our efforts to achieve net zero In 2018, a 2050 net zero ambition for shipping was a moonshot goal. Today, we see it as a challenging By 2030, deliver 60% relative reduction By 2030, have commercially viable, By 2050, have net zero CO2 emissions emissions and support our customers to target, but clearly possible to reach. Customers, in CO2 emissions compared to 2008 levels. net zero vessels operating in our fleet. from our own ocean operations. decarbonise their supply chains. investors and authorities are accelerating their ambitions, and their expectations are rising fast for A.P. Moller - Maersk (Maersk) and our industry to deliver more solutions, more visibility and more help 60%

in decarbonising supply chains. NET ZERO CO2 NET ZERO CO2

Decarbonisation can make or break us In 2020, we conducted a strategic review of global climate scenarios and transition pathways (see box STEPS TOWARDS DECARBONISATION on page 21). The conclusion was that climate action is a strategic imperative for all companies, and our company in particular, as we – due to our size and industry reach – have the opportunity to be a driving force in decarbonising shipping and logistics. We are both able and willing to take that role upon us. There are specific trends in our stakeholder environment that underscore the need for urgent action on decarbonisation. First, a logistics provider Continued progress on efficiency Future fuels and vessels Pathways to 2050 without an ambitious plan for decarbonisation risks By end 2020, we had achieved 46.3% Our research shows that net zero We are working with customers, becoming irrelevant in the market, because it would reduction in emissions compared technologies are available, and we will partners and regulators to build the market, become increasingly difficult for customers to embed to 2008, with 2.5% of that achieved not use transition fuels (such as LNG) fuel supply chains and policy frameworks services offered into their product offerings. This in 2020 alone. but leapfrog to fully net zero fuels. to support net zero emissions shipping means that our company cannot be behind the curve on the carbon journey. Second, political action is gradually but continuously beginning to reflect the reality of climate change. Spurred on by science, the evident rise in the number of extreme weather events, as well as pressure from a broad range of stakeholders, lawmakers are working on taxation or other pricing mechanisms

as well as disclosure requirements related to CO2 emissions, to incentivise transformation in all parts of society. These actions both emphasise and potentially mitigate the financial risks of climate NET ZERO CO NET ZERO CO change to companies, asset owners and societies. 2 2 For example, while Maersk supports the introduction

of uniform pricing regimes for CO2, the potential added cost from a regulatory instrument such as a carbon tax might end up being calculated in billions of dollars for Maersk alone, if we do not decarbonise our operations. 18 A.P. Moller - Maersk Sustainability Report 2020 Strategic sustainability priorities Decarbonising logistics Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 19

Maersk has a history of pioneering solutions and corporate entities. With the new setup, transport solution, and we expect this number and being ahead of our customers' demand. decarbonisation will be an even stronger to increase. We are also in conversation with Four priority fuels for net zero emissions shipping We were first to create a global network driving strategic priority across the business. The new some customers on the possibility of converting down the cost of transporting goods. We are team, counting more than 50 people, will assist, all their shipments to the Maersk ECO delivery the frontrunners in digitising the shipping and inspire, set the direction and transition pace and product. While this is very promising, it represents Fuel Key advantages Key limitations/risks logistics industry with blockchain and web- ensure that decarbonisation is a business priority a small share of the total amount of containers based solutions. embedded across the entire company. transported by Maersk, and we need much more Biodiesel • Can be used as drop-in fuel in existing • Limited availability of biomass feedstock a challenge Our decarbonisation efforts have matured In pursuit of the decarbonisation targets set customer demand to scale net zero emissions vessels and engines to scalability over the past decade with increasing ambitions in 2018, we continue to make progress along offerings and enable a transition to full • Price pressure due to high demand from competing matching the maturity of the field and the the strategic pathways of building markets, decarbonisation. industries expectations of our leading customers. We developing technologies and enabling policies. Most importantly, however, we are learning now want to reinforce our position, and we see that the commoditised freight market is open Methanol • Already in operation as marine fuel • Bio-methanol: Production at scale is challenged by this as an expression of our obligation – as an for price differentiation related to sustainability. (bio-methanol and e-methanol) • Engine is available uncertainty over availability of biomass industry leader and with the resources available Launched in 2019, Maersk ECO Driven by the end-consumers' increased • Liquid at normal conditions, • E-methanol: Availability of biogenic CO2 source to us – to do all we can to get to a carbon- Delivery remains one of only a few willingness to pay for sustainability, and well-known handling at production site, cost and maturity of neutral fleet as fast as possible and to help growing climate urgency, this represents a solid options for carbon-neutral emissions electrolyser technology our customers decarbonise their global supply shipping on the global market so far. contribution to the development of a business chains end to end. model for decarbonised logistics and transport, Lignin fuels • Lignin fuels are potentially the most • In development stage, production needs to be scaled up Today, 90 of our top 200 customers have lowering the risk we take on when investing in A new biofuel based on biomass price-competitive net zero fuel with the to create a new value chain and infrastructure for supply set or are in the process of setting ambitious A market for net zero emissions shipping the development of decarbonised logistics and residue (lignin) and alcohols lowest price estimate almost on a par • Engine requirements would be the same as for methanol, science-based or zero carbon targets. We have Building on the increased momentum from transport services (shipping, rail, road, air). (methanol or ethanol) with fossil fuels but additional handling of contaminants may be required since 2018 been committed to set a science- our customers, in 2020 we implemented a new Reflecting this, we have developed a multi- based target, and we are actively engaging commercial strategy on sustainability aiming tier value proposition for sustainable logistics, Ammonia • Fully zero emissions fuel • Safety and toxicity challenges with the Science-Based Target Initiative on to respond to and aid customers on their allowing us to respond to customer needs (green ammonia) • Can be produced at scale from renewable • Infrastructure challenges at ports developing a methodology for shipping. Once decarbonisation journey, however far they aligned with their maturity and ambition level electricity alone • Future cost depends on cost of renewable electricity and this work is finalised, expected in the first have come. for carbon reductions. We continue to build ties cost/maturity of electrolyser technology half of 2021, we want to relate our emission One key feature in this is the Maersk ECO and partnerships with the group of customers reduction targets to this new calculation Delivery product. Launched in 2019, it remains who match or exceed our ambitions on method, and measure our performance by one of only a few options for carbon-neutral decarbonisation, and the solutions we The future of fuels Barriers to progress We will collaborate with fuel suppliers to the same yardstick as our customers do. emissions shipping on the global market so far. co-develop with them are crucial levers in Over the past two years, we have conducted an As shown in the graphic on the next page, fuel develop a fuelling network that serves Maersk ECO delivery uses externally certified showcasing and shaping the broader market extensive analysis of the available technology transformation involves the entire supply chain, our needs. Intensifying our efforts biodiesel in the form of used cooking oil to of the future. and fuel options for net zero carbon operations. and holds barriers to progress which we are To be true to our history and strategic promise, power vessels in our network. The CO2 savings A very relevant aspect related to the value Based on this work, we have concluded that working to overcome: • Safety-related issues we are in the process of reviewing our generated from this are used to neutralise proposition of net zero emissions logistics is there are technologies that are mature enough For methanol and ethanol, there are issues decarbonisation ambitions, and investigating emissions related to transport of specific cargo understanding where the cost of transition will for us to participate in their development to scale • Scaling fuel production and related to flammability that will have to be where we can raise the bar. To drive this by customers. be felt. Analysis from the Energy Transitions by acting as an ambitious customer. associated technology resolved. There are already some operational 7 and coordinate all related processes, a new In 2020, customer uptake of Maersk ECO Commission shows that for most product A broad range of technologies were The main limitation to developing net zero experience available for methanol as a Decarbonisation function was launched in delivery shipping exceeded our expectations. categories, price increases for final consumers evaluated and the four primary pathways we emission vessels is availability of new fuels shipping fuel. For ammonia, the main issue January 2021, tasked with ensuring collaboration So far, approximately ten major customers have will be negligible, even though the intermediate are now pursuing can be seen in the table at scale. We are engaged in several fuel is toxicity, and safe solutions will have to be across commercial, operational, technological, chosen to purchase this carbon-neutral emissions costs are higher. See graphic below. above. As part of this process, we also de- manufacturing projects for both methanol developed before it can be used as marine selected a number of potential technologies. and ammonia, just as our participation in fuel. However, ammonia is today handled "Our conversations with For example, bio-methane and liquified natural the LEO coalition continues, where we in commercially in many other applications, gas, fuel cells, nuclear and onboard carbon collaboration with partners incl. customers and solutions for its safe use as marine fuel customers are increasingly How decarbonisation affects consumer prices capture due to concerns related to one or and researchers work on the lignin fuel should be possible. Much work remains to be focused on supporting their more of the steps in the fuel transformation option in the table above. In combination, done in this area, and it is one of the areas ambitions to decarbonise 20% increase in shipping rate supply chain (see illustration on the next page). these projects will deliver substantially that the Mærsk Mc-Kinney Møller Center for their supply chains, and (equivalent to +100% increased fuel costs) For bio-methane and liquified natural gas, for towards the power needs of our entire fleet, Zero Carbon Shipping will investigate (see ensuring flexible and resilient example, we are very concerned with levels albeit price premiums may remain a barrier box on the next page). transport solutions." of methane emissions, and the risk of tying to uptake. The first green fuel projects will investments to marginal CO2 reductions rather command premiums, but technology maturity • Impact on company profitability than transformation to real net zero-emissions will improve and production costs are expected Leadership on the decarbonisation agenda Vincent Clerc solutions. Fuel cells were put on hold because to decrease once production is scaled. comes with a near-certain increase in costs Executive Vice President they are not ready to be produced efficiently at but also, we believe, with a potential for and CEO Ocean and Logistics, A pair of running shoes A computer for $800 1 banana for $0.25 scale and cost is still high, but we monitor this • Lack of fuel infrastructure competitive advantage that far outweighs A.P. Møller - Mærsk A/S for $100 would increase by would increase by would increase by technology closely. Today, there is very limited infrastructure in the costs and potential risks. Our analysis shows that the technologies any port to handle net zero emission fuels. + $0.06 + $0.60 + $0.01 are available. As a result, and in response [+0.06%] [+0.08%] [+5%] to the increased urgency of delivering on decarbonisation, we believe that the right thing We believe that the right thing to do is to Source: Calculations by Maersk to do is to leapfrog to pure net zero vessel leapfrog to pure net zero vessel technology 7 Energy Transitions Commission, Making Mission Possible – Delivering a Net-Zero Economy, September 2020 technology without any transitional technologies. without any transitional technologies. 20 A.P. Moller - Maersk Sustainability Report 2020 Strategic sustainability priorities Decarbonising logistics Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 21

Transformation needs to happen across the entire fuel supply chain Towards 60% CO₂ emissions reduction

Can it be produced Safety What type of % of 2008 Relative energy efficiency EEOI gCO2 pr ton-nm Actual energy efficiency efficiently? considerations? engine is needed? 100 25 80 20 12.2 60 15 EEOI (gCO2/ton-nm), 2020 40 46.3% 10 20 Reduction of relative CO₂ 5 emissions, 2008-2020 Feedstock Production Transport Port Bunkering Fuel System Engine Emissions 0 0 2008 2020 2030 2008 2020 2030 Year Year

EEOI: Energy Efficiency Operational Indicator. See further explanation in footnote below.

Enough feedstock? How to transport What changes Air EEOI, relative – 2008 EEOI, relative – 2008 index 2030 target EEOI, actual EEOI, actual 2030 target pathway, Cheap enough? and store? are needed to the emissions? index (old calculation) (new calculation as per pathway, relative (old calculation) (new calculation as actual EEOI Sustainable? fuel system? MEPC circ 684) EEOI, 2008 index per MEPC circ 684)

The need for broad-based action greenhouse gas emissions allowances, also Progress and increased disclosure We are also from 2020 disclosing our progress Comparing the new calculations with the The final piece of our decarbonisation strategy known as CO credits. However, this needs The Mærsk Mc-Kinney Møller 2 on CO2 efficiency on CO2 efficiency in both actual efficiency old shows that while the number for actual relates to the policy frameworks established to be done with the objective of actually Our target is to deliver 60% relative CO (measured in EEOI, gCO /ton-nm) as well as efficiency in gCO /ton-nm is now higher than Center for Zero Carbon Shipping 2 2 2 to further this process. Policies must not lowering shipping emissions and with a view reduction by 2030 (compared to 2008 relative to our baseline year 2008. The graphs before, this also corresponds to a higher The Mærsk Mc-Kinney Møller Center for only secure that low performers are held to supporting an international greenhouse baseline). By the end of 2020, we had reduced above show performance according to both the reduction compared to the baseline year of Zero Carbon Shipping is an independent, accountable, but also that the first movers are gas reduction agreement. Moreover, the many emissions by 46.3%. We are from 2020 using old calculation, used in our 2019 Sustainability 2008. Using the old methodology, we have non-profit, leading-edge research and truly rewarded for the risks taken on behalf of related EU initiatives must also fit into a puzzle an improved methodology to calculate relative Report, and the improved calculation which we reduced emissions by 42.7% since 2008. development centre launched in June the whole industry. whereby greenhouse gas emissions overall are reductions, which enhances the accuracy8. will use going forward. 2020. Mobilising around 100 of the best With very few exceptions, the political and lowered while still supporting modal shift of cargo minds from industry, academia, energy, legislative debate is currently not moving to sea, which will remain the most sustainable fuel and ship technology, regulatory fast enough to fulfil its role. The International way of transporting large quantities of cargo. affairs and finance, the centre will work Maritime Organization (IMO) must start to The transition will not happen without strong Climate-related risks and policies and changed consumption patterns. And greenhouse gas emissions across all scopes, our to create overviews of decarbonisation address concrete long-term measures in order regulatory frameworks. IMO Member States opportunities to our business a 2.0- degree pathway will entail ongoing material transition pathways, and climate-related risks and pathways, accelerate the development to close the competitiveness gap between have a fundamental role in securing progress. risk of accelerated climate change (tipping points) opportunities. of selected decarbonising energies and fossil and renewable fuels. Global measures These processes take time, but there is real In 2020, we conducted a strategic review to and abrupt policy changes in response. The key framework which guides our reporting is powering technologies as well as support to accelerate the transition and create a more benefit to having a global solution which is analyse the likelihood and implications of different Currently, the planet remains on an the TCFD (Task Force on Climate-related Financial the establishment of regulatory, financial level playing field are essential, and for this enforceable and protects first-movers. pathways for global warming, and how these might unsustainable warming pathway above 2.0 degrees Disclosures) framework which is also incorporated and commercial means to enable and reason the limited outcome of the IMO meeting In parallel, private action and advocacy impact our business in terms of both physical and and material physical climate change is likely into CDP, a platform to which we have reported drive the transformation. in 2020 was disappointing. We also advocate initiatives should also continue. We are very transition risks. regardless of remedial actions taken, impacting since 2010, and into new benchmarks such as the The centre is made possible by a that lawmakers build incentive structures that proud to have been part of the recent launch Limiting warming to 2.0 degrees appears to be customer supply chains and potentially Maersk's Climate Action 100+ net zero company benchmark start-up donation of DKK 400m by the reward first movers and remove a share of the of the Mærsk Mc-Kinney Møller Center for Zero the most plausible outcome. Reaching this goal ability to deliver a reliable product. launching in early 2021. A.P. Moller Foundation. The founding financial risk related to decarbonisation. There Carbon Shipping (see box). This independent will require significant policy measures and per These scenarios confirm to us the urgency TCFD recommends that companies report partners are American Bureau of Shipping, is a very real danger that regulators are out of centre will engage scientists from all over the capita emissions below the lowest level recorded of climate action to mitigate the risks to our on governance, strategy, risk management, and A.P. Moller - Maersk, Cargill, MAN Energy sync with the progress and development pushed world in trying to find solutions on fuels for since records began in 1960. own business and stay relevant in the market by targets and metrics related to material climate- Solutions, Mitsubishi Heavy Industries, by industry, which would be to no one’s benefit. shipping. Additionally, we have joined hands The physical effects of climate change are supporting our customers to decarbonise their related risks and opportunities. To understand our NYK Lines and Siemens, and many more At regional level, there is no doubt that shipping with Ørsted, the largest energy company in already evident in the form of heat and water supply chains. Climate change, more specifically governance of climate change work please refer to partners are expected to join. will be part of the EU Emissions Trading System, Denmark, and other leading Danish companies stress, precipitation, storms, and rising sea levels. the risk of not decarbonising our end-to-end page 10 in this report. which is the world's biggest scheme for trading in establishing a project to develop a new These effects will intensify regardless of collective supply chain at a speed that matches our To learn about our strategy as well as metrics hydrogen plant, which can be part of the solution action taken today to decarbonise. customers’ and investors’ expectations, was in and targets for decarbonisation, please read this for creating e-fuels in the future. We have also Attaining a 2.0-degree pathway will not 2020 confirmed by our executive leadership as chapter of the report. “We are looking for more robust and comparable information on how companies received external funding to further intensify eliminate physical climate change risk for our one of the top enterprise risks to Maersk. For an overview of TCFD reporting, please see are realigning their business strategies and operations with the goals of the Paris our research and development of different customers and our business operations. Moreover, our ESG data table, which can be downloaded from Agreement and a net zero emissions future. We need to be certain that a company types of lignin-alcohol fuels. We continue to the transition to a 2.0-degree pathway will likely be TCFD disclosure our Investor Relations website. engage actively in the Getting to Zero coalition, a source of major disruption (transition risk) in and It is a cornerstone of our decarbonisation ambition has charted a credible and comprehensive course to decarbonisation, taking into and beyond our own sector we have joined of itself because of the accompanying government to provide transparency to capital markets on account added investments and costs, just as we need to know that the with a group of other leadership companies in transformation is anchored at the highest leadership level.” the Transform to Net Zero initiative, launched in July 2020, which aims to lead by example, 8 The indicator underlying our relative CO2 reduction target is EEOI, Energy Efficiency Operational Indicator, calculated as g CO2/(Ton x Nm). From 2020, we are disclosing performance in actual numbers in addition to Claus Wiinblad developing guidance and pilot projects to enable the progress relative to the index year 2008. Our new, improved methodology, enables us to cleanse ballast water and fuel stock weights from the cargo weight to make the calculation of EEOI fully in line with the IMO's Senior Vice President, ATP all businesses to achieve net zero emissions. Marine Environment Protection Committee's (MEPC) regulations. This was previously not possible, as we lacked the data and method to remove it from the historical data. 22 A.P. Moller - Maersk Sustainability Report 2020 Strategic sustainability priorities Decarbonising logistics Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 23

The main contributors to the 2.5% reduction in and stakeholder demands, we are exploring ways as well as digital solutions to provide visibility 2020 are related to a series of energy efficiency in which we can work to include all emissions on emissions end-to-end. initiative. Retrofitting of our fleet, the further – our own, those related to the purchase of Our role in decarbonising logistics will be integration and use of Star Connect and improved energy and those in our supply chain – in our very different compared to our role in ocean utilisation of vessels. decarbonisation efforts. transport, where Maersk holds a leadership Star Connect is a monitoring system being As the graphic below shows, the vast position and is a significant asset owner in an implemented on all our vessels to provide majority of our emissions come from our own industry dominated by relatively few, large visibility on the efficiency of the engine and the operations (scope 1), which are dominated by companies. The inland logistics industry most effective sea voyage, with live data helping ocean transport. As we expand our activities on landscape is very different, and we typically crews adjust and choose the most efficient path land this situation is bound to change. However, have limited operational control of the assets forward. We are also implementing a more our plan for expansion on land does not include such as trucks, trains, warehouses. This will limited version of the system on chartered vessels. significant asset ownership, and consequently imply a different, more collaborative, approach Further efficiency improvements are emissions from our logistics supply chain where we partner with our logistics suppliers dependent on a continued and enhanced energy (scope 3) are set to grow. to work towards decarbonisation of our end- Sustainability efficiency drive, different fuel types, more We are exploring how best to engage to-end logistics offerings (scope 2 and scope modern vessels and technological advances. our suppliers in support of an end-to-end 3, as well as the small portion of our scope 1 decarbonisation ambition, and we are working emissions outside ocean transport). Decarbonising end-to-end logistics to expand our net zero solutions to customers As part of this, we are working towards in our end-to-end As part of our efforts to sustain leadership on to encompass offerings across end-to-end integrating environmental sustainability into decarbonisation and match customer needs logistics, including trucking, rail and warehousing, procurement criteria in tenders. offerings

64% <1% Managing all aspects of our customers' logistics supply chains includes taking on responsibility for sustainability SCOPE 1: Maersk’s SCOPE 2: performance. We are developing a more comprehensive OWN OPERATIONS PURCHASED ELECTRICITY approach to ensuring sustainable practices across our Emissions coming from C0₂ footprint (location-based) end-to-end offerings. our financially controlled Emissions from the generation operations. 2020 of purchased electricity. 96% of our scope 1 emissions Maersk has partial responsibility come from bunker fuel. related to how much electricity we use. In 2016, we launched our Global Integrator social issues, anti-corruption, environment and waste (read more on decarbonising end-to-end 33,902 (1,000 tonnes CO2 eq) strategy of connecting and simplifying our CO2 emissions grow substantially as we take our on the left). 305 (1,000 tonnes CO2 eq) customers’ supply chains. Since then, we have business on land. This includes risks of corruption Our investigations led us to conclude that transformed A.P. Moller - Maersk (Maersk) to a and working conditions – including safety while we have a good foundation of responsible focused and integrated global logistics company. challenges – for workers not hired by us, but business practices within our own operations on Emissions created in the value-chain as result of Working with sustainability in logistics is a working for us. which we can build, our set-up can be improved Maersk's business activities, including emissions from different challenge from that of decarbonising It is clear to us that our customers expect for delivering on the expectations to our 36% cargo transported under vessel sharing agreements. container shipping which is dominated by their logistics supplier to ensure responsible customers, and the approach going forward 9 major market players, of which we are one of practices, and expect us to help them address will be integrated across functions and into our SCOPE 3: VALUE CHAIN 19,017 (1,000 tonnes CO2 eq) This comprises five material categories the largest. In contrast, the logistics industry is their supply chain challenges on emissions and product offerings as a base component. fragmented with its thousands of suppliers of (all numbers below in 1,000 tonnes CO2 eq): • Upstream transportation and distribution: 13,322 trucking, warehousing, manning agencies, rail • Purchased goods and services: 2,750 services etc. For example, Maersk works with • Use of sold products: 1,838 more than 3,000 suppliers of trucking services. • Fuel and energy related activities: 787 As we grow our logistics business, we are • Capital goods: 211 determined to apply our commitment to “Responsible practices in our supply chain are important for maintaining our responsible business practices, our willingness societal license to operate. We require our suppliers to live up to international to use the leverage of our business to affect standards on responsible business conduct, and this is equally important in change – by ourselves alone and through transportation and logistics as it is in our factories and raw materials supply. partnerships – and our ambitions of decarbonising NET ZERO CO2 NET ZERO CO2 our business and enabling open, inclusive and When we hand over our logistics needs from end-to-end to an external party, sustainable trade. we are looking for a logistics partner who can ensure responsibility and ultimately We have investigated the implications of the support positive societal and environmental impact in our logistics supply chain.” Global Integrator strategy on sustainability-

9 Data and assessment of material categories for scope 3 emissions for 2020 is based on analysis of procurement and accounting data performed by an external provider, and have not been in scope for PwC's related risks, opportunities and responsibilities. Johanna Pirinen review of this report. One conclusion is that our exposure to risks on Senior Vice President Sustainable Sourcing and Logistics, Stora Enso 24 A.P. Moller - Maersk Sustainability Report 2020 Strategic sustainability priorities Sustainability in our end-to-end offerings Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 25

Responsible Procurement team carrying out Better oversight of contract labour Local Maersk staff reviewed the practices of due diligence in accordance with our Supplier in African ports all the suppliers used for contracting labour Code of Conduct prior to the signing of a contract, in third-party operated ports in Africa and while local Customer Experience and Health, In 2020, we investigated working conditions compared these to our supplier code of conduct. Safety, Security and Environment teams carry out for contracted labourers in ports on the African In most cases there were minor gaps which onsite audits for the duration of the contract. continent. We focused on ports where Maersk were addressed through improvement plans. Furthermore, in all land-based activities we vessels call, but which are not owned by us. However, most of the contracted labourers have contracted labour hired through thirdparty This broader investigation was the result of working in these ports are hired by the port providers. We are working to enhance our unacceptable working conditions first reported operators, and we have little insight into the management of risks related to this workforce. by a Danish NGO in the port of Mombasa in 2019, content of their contracts. Because while the companies responsible which had found use 24-hour shifts with minimal Recognising that this is a high-risk area for for these workers sign our Supplier Code of breaks, to pay wages below the Kenyan hourly ports, we are working to develop new audit Conduct, we are not satisfied with our controls minimum wage and to lack provision of safety and follow-up regimes to ensure our standards for compliance in areas such as health and equipment for workers. This is not acceptable to us. are met. safety, wages, social security or insurance and working hours. Finally, while due diligence and onboarding procedures are already part of our Responsible Procurement programme, we are taking steps Comprehensive plan for the future level, applying to all businesses above a certain to strengthen post-contract monitoring and Applying a customer perspective on responsible size that have activities with in the EU, because corrective measures. This will include increased practices in our supply chain, we are developing this provides a far more level playing field. audit activities, training suppliers of contracted a comprehensive work programme to deliver The opposite, which is further proliferation of labour on our standards and ways of working, the necessary changes and improvements to national regulation, we believe will fall short of and support tools for local management, our current practices across environmental, solving the problems it is designed to alleviate. including basic due diligence, non-compliance social and governance issues. Going forward, we can leverage our experience response options and an overview of potential Responding from our extensive work on decarbonisation of risks. We expect these measures, including a pilot We will use the levers most readily available to and reducing air emissions from shipping. On of 50 new audits per year, to be implemented us to create impact. That includes: these issues, Maersk has been instrumental in within the next two years. • Strengthening our procurement digital standard setting for CO emissions, customer 2 Read more about our core programmes on landscape to enable the end-to-end supplier engagement through product development safety, responsible procurement, employee to a pandemic performance monitoring. ahead of the market, and collaboration in relations and anti-corruption in the responsible • Defining the ambition level for responsibility alliances such as Clean Cargo, the Trident business practices section in this report. and sustainability in our products. Alliance and the Getting to Zero coalition. Facing the global emergency of 2020, Maersk's • Engaging our customers on risks in their Due to the fragmented nature of the logistics logistics supply chain. industry, we foresee a road to change consisting priorities were to protect our people, serve our • Collaborating across the industry to of many, comparatively smaller initiatives customers and support society. set standards and share cost of driving attacking the challenges bit by bit. improvements. Improving working conditions Wheels already in motion for truck drivers These efforts will also help us prepare both We have begun to take action in key areas. One We are active participants in the for our own operations and to support our example is the development of a collaborative Responsible Trucking project run by CSR customers to comply with upcoming regulation approach to improve the monitoring of supplier Europe, which focuses on enabling better on mandatory social and environmental due compliance related to depot services, warehousing working conditions for truck drivers in diligence in various national jurisdictions and and trucking. This approach will be tested and the EU. from the EU. We welcome legislation at the EU rolled out globally in 2021, and sees our In 2020, the project drafted a set of social guidelines that set out minimum standards, which serves as a public stance from private organisations in support of better working conditions for truck drivers, and at the same time addresses the specific challenges this profession faces. Spot check tools and methodologies were also created for the group to use to understand the challenges on the ground, and for companies to have an indication of the extent to which these challenges are

MARKET present in their own supply chain. The guidelines will be published 2021, after which implementation of tools can begin. 26 A.P. Moller - Maersk Sustainability Report 2020 Responding to a pandemic Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 27

trade. The jobs created and economic activity In March 2020, the executive leadership defined three priority focus areas to guide sustained due to port activity have a positive impact throughout the surrounding communities. our response to the COVID-19 crisis Across the terminals, we applied procedures to mitigate the risk of contracting COVID-19. These included guidelines for the procedures that terminal and warehouse workers would have to adhere to before entering, while being in, and after leaving the workplace. This included training sessions and inspections of facilities to ensure safety for employees and other port and warehouse users. Furthermore, we outlined employee rights in case of quarantine or staying at home, and ensured visibility of these rights to Helping society all employees. Serving our customers Protecting our people in the fight against COVID-19 Serving our customers – and helping suppliers In addition to protecting our people, Maersk’s Enabling global trade has been “How are you? Is everyone safe?” This greeting world. When the build-up was at its highest, top priority during the crisis was to ensure that A.P. Moller - Maersk’s (Maersk) finest task became the standard opening comment in Maersk more than 2,500 colleagues had completed the global logistics chains continue to work, so for decades, but there was arguably never meetings in 2020, as the COVID-19 pandemic their contracts, but could not be relieved of that businesses and people can trust supply more pressure to keep goods moving freely impacted where and how all our 80,000 their duties. Another, although much smaller, chains to do their job – first and foremost that than in 2020. In extraordinary circumstances, employees in 130 countries worked and lived. set of colleagues were hurt by the fact that medical supplies reach hospitals and food our employees across the world have gone Alongside the threat to global health, the they were unable to board vessels and fulfil reaches kitchen tables, but also to minimise The Maersk Cadiz crew share a positive message with all their colleagues at sea. to extraordinary lengths to serve customers risk of collapsing economies with extensive job their contracts. harm to our economies and livelihoods. in new and creative ways, while taking extra loss and shortage of goods grew fast as the To accelerate the process of bringing crew Throughout the COVID-19 crisis, global supply care of each other and helping society to get pandemic progressed. While economies and home, we gathered a cross-functional task chains have remained open: Our container ships large-scale distribution. Maersk began planning Applying disaster response expertise through the crisis. individual livelihoods were widely impacted, force to create agreements with governments, continue to sail, our ports and warehouses the logistics involved in this as early as the The Logistics Emergency Team, the disaster global trade lanes and supply chains remained airlines, airport operators, hotels and port continue to operate and trucks deliver goods summer of 2020. response partnership which Maersk has been in service. Because of flexible supply chains and authorities that would enable crews to obtain to distribution and fulfilment centres. To take An important goal is to bring a vaccine to an active member of since 2011, was activated digital connectivity, countries and businesses essential worker status to safely travel to and one example, despite more than half the global emerging and developing nations. To this end, in response to the COVID-19 pandemic in 2020. were able to maintain essential services and from major port hubs with major international economy being under lockdown, the world has COVAXX and Maersk established a global We received one request for deployment of a “Being onboard for more than ten supplies, even as half the global population airports, including on special Maersk charter avoided major disruption in global food markets. logistics partnership to distribute up to a billion cold chain into South Sudan which will serve months was quite an experience. I had was in lockdown. flights. Moreover, an IT solution was put There are many examples of how our doses of a COVAXX vaccine worldwide in 2021. as storage for vaccines. We have placed three my holiday on board, celebrated my together to help track seafarer locations and employees found new solutions to challenging As members of the World Economic Forum's reefer containers with generator sets in a birthday as well, and never knew the Heroes trapped at sea maximise the number of people we could supply chain problems. Read one in the box below. Supply Chain & Transport Industry Action refugee centre, at a state hospital and the move, and procurement teams helped book Group, we also endorsed a charter in support Ministry of Health, where they will serve as next time I would go ashore. At exactly 12:00 local time, on 1 May 2020, Maersk captains around the world tooted over 100,000 hotel nights and 200,000 meals Looking towards vaccines of globally inclusive, safe and sustainable the backbone of a medical supply chain for ten during the summer alone. The next phase in the COVID-19 pandemic is distribution of COVID-19 vaccines. The charter million people. We are following this closely to It was all about waiting and hoping their horns in a celebration of the essential frontline workers who were keeping supply To overcome the multitude of bottlenecks we now starting, as vaccines become ready for calls for engagement, asset, competency and assess whether it can be a scalable model for for possibilities to off-board, coming chains running – at sea, on the road, in ports, found on land, we created our own quarantine expertise sharing, and support for UNICEF's the global market at a later stage. to terms with cancelled flights and warehouses and factories across the world. safe centres in strategic locations such as distribution efforts. changing schedules. In the meantime, In Maersk, seafarers in particular were Manila and Mumbai where crew could be tested we found ways to keep a positive celebrated as “the unsung heroes of the and certified as healthy to travel to join a vessel. We also created hubs for local quarantine in attitude and break the monotony of COVID-19 pandemic”, as they continued to play an essential role in maintaining the flow of vital high-volume areas such as the Suez, Europe, the sleep-eat-work cycle. Nigeria, Malaysia and Panama, which helped goods, such as food, fuels and medical supplies, Organising new exports to save products that people everywhere need. seafarers reach their destinations. What kept me going was the For many of our seafarers, the hero status By the end of the year, we had succeeded On 24 March 2020, India came to a sudden Reliance saw local demand for its important a week to 47 trains a week. Our team contacted encouragement and bond of the crew, was underlined by the fact that crews in helping overdue crew members on or standstill as Prime Minister Narendra Modi polymers business fall to zero. Polymers are eight different rail vendors and closed an family calls made possible by the experienced prolonged stays on the same off vessels. announced a strict nation-wide lockdown to manufactured with a continuous process that is agreement with them in 48 hours. improved internet connectivity, drawing vessel, as crew changes were hindered by contain the COVID-19 pandemic. For Maersk and difficult to stop and restart, so Reliance needed An even larger challenge was securing containers Safe employment on land portraits and constant prayers. All of government restrictions. its customers, this meant a massive disruption of to keep its factories open. to move the polymers. The lockdown meant that Normally, a crew member stays on a vessel More than 20,000 people work at the port supply chains – trucks were abandoned by With over 15,000 containers worth of polymers import clearances were not taking place at a regular this made the physically challenging anywhere from two to six months. The Maritime terminals and inland facilities owned and drivers rushing to get home, labourers stopped and no warehousing space, Reliance’s only option pace, and cargo inventory was building up in ports and mentally draining life on board Labour Convention states that crews can spend operated by Maersk on six continents. Terminals turning up at ports and yards, and customs house was to shift from local businesses to exports. and yards. 15,000 40-foot containers were required with an overdue contract a little lighter.” a maximum of 11 months on board. These norms play an important part in national and regional agents disappeared amid policy confusion. As road movement in India was halted in the for these exports – 10,000 of these were needed at were all broken in 2020. economies, first and foremost because they Reliance Industries is the largest private early days of the lockdown, Maersk saw rail as Reliance’s Jamnagar, Gujarat plant alone. Cadet John Godwin Nallada Across the Maersk network, a total of 6,000 make sure goods flow to and from a country company in India and a conglomerate spanning an obvious solution for Reliance. However, local To ensure an adequate number of containers, on the Maersk Hidalgo seafarers of 40 nationalities on 700 vessels or region. In some countries, a Maersk-owned the energy, material, retail, entertainment and rail suppliers were not prepared to handle the depots, terminals and carriers worked together to from 4 November 2019 to 13 August 2020 work to ensure the flow of goods around the terminal is the only gateway to international digital service sectors. Under the lockdown, unprecedented jump in volume from one train pool resources and flag any spare containers. 28 A.P. Moller - Maersk Sustainability Report 2020 Responding to a pandemic Helping society in the fight Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 29

Through donations and commercial activity, Maersk has delivered more masks to Canada than there are Canadians, using multiple Antonov 124’s – one of the world’s largest cargo aircrafts. Responsible business Helping society in the fight practices

Beyond our support to employees and and in some cases monetary donations. All cash the fight against the effects of COVID-19 is USD customers, Maersk contributions to support donations are reviewed by Maersk's Compliance 4.2 million. Some examples of donations are society in the fight against COVID-19 have taken team. All donations were made in accordance shown below, in addition to some of the large the form of donations of containers, freight, with our COVID-19 donations policy and operations our business was involved in to storage space, logistics expertise, face masks approved by our internal Crisis Management secure delivery of medical supplies and PPE and other personal protective equipment (PPE), Team. The total amount donated by Maersk in to governments.

EUROPE AMERICAS

Maersk Bridge Masks A.P. Moller Holding initiated and coordinated an air bridge and Maersk offices in Brazil donated funds to purchase masks, hand supply chain operation to secure delivery of personal protective sanitisers and more to a local hospital. equipment (PPE) to healthcare workers in Danish hospitals. Medical supplies A.P. Moller - Maersk sourced the equipment and transported it Donation of medical equipment including ventilators, thermometers to the hospitals. and PPE to Villanueva Public Hospital in Guatemala 3D visor and ventilator tech Reefers Colleagues at APM Terminals Algeciras used 3D printing to Maersk in San Antonio, Chile loaned two 40-foot reefers to the local help make protective visor for hospitals, rescue workers and hospital, so it could store pharmaceuticals. health centres.

ASIA AFRICA

Clean water Urgent supplies In small villages near the Indian port of Pipavav, APM Terminals APM Terminals funded a flight carrying 10,000 test kits, 15 oxygen installed vending machines that dispense clean water so local concentrators, PPE and health kits for the Nigerian Government’s people would not need to travel long distances for healthy COVID-19 Response Plan and UNICEF 's work in support of healthcare drinking water where they might risk spreading COVID-19. workers, children and families. Responsible business practices are first and foremost about values, Relief effort Sanitisers our commitments and meeting expectations of our stakeholders. It is Maersk provided commercial logistics support to UNICEF to Maersk supported the Kenyan government requests for 35 20-foot provide warehousing, transportation and distribution of critical containers to transport raw materials for sanitiser from Mombasa to also the foundation on which our entire value proposition of sustainable supplies for Pakistan’s national relief effort. Nairobi for distribution to hospitals and medical workers. end-to-end offerings rests. Health care Food for schools In this section, we report on our most material issues, with a more As part of our continued engagement in the delivery of health Maersk in Angola provided disinfectant gels, cleaning materials, in-depth look into the issues of safety, responsible ship recycling and care in Alang, India, we helped fund thermal screening for 13,000 gloves and masks as well as food and water to multiple local projects workers at the ship recycling yards in the area, and distribution of and schools. diversity and inclusion. 33,000 preventive masks. 170 COVID-19 awareness sessions Vaccine infrastructure reached over 8,400 workers. In response to a Logistics Emergency Team request, we deployed a cold chain consisting of three reefer containers with generator sets in three The Tove Maersk and MCC Halong land at Y.S. Investments locations in South Sudan, where they serve as adequate storage for (Plot 59) in Alang, India, where cranes are used to lift steel vaccines, and the backbone of a medical supply chain for 10 million people. parts onto the impermeable floor installed. 30 A.P. Moller - Maersk Sustainability Report 2020 Responsible business practices Safety Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 31

Safety

Why is it important Tragic fire leads to new stowage system Safety at work is a basic human right, and workplace conditions directly Keeping our people safe is a core value and an ethical responsibility for impact and influence workers as well as their families and communities. us as a company towards our employees, their families and communities. The official investigation of a fire on board the Maersk Honam in March of Ambitions 2018, where five seafarers tragically lost their lives, was finalised in 2020 by the We want to protect our people, the environment and our business, Transport Safety Investigation Bureau eliminate fatalities and severe injuries, enable Maersk to be a preferred (TSIB) in Singapore. They concluded employer and provide safe and resilient products and services to that the most likely source of the fire our customers. was a block of containers with declared dangerous cargo stowed inside a cargo Targets hold in the forepart of the vessel. 2020: 2021: According to the report, the cause of the • Top 300 leaders have completed Leading Safety Differently workshops. Leading-indicator targets for building safety capacity are set for: fire is not conclusive, but highly likely • Verification of effectiveness of critical controls. • Learning Team activity (to be completed within 40 days of every On Global Safety Day 2020, the crew on Svitzer Al Safliya discussed the risks, procedures and every day experiences originated from the decomposition of of connecting and disconnecting towlines to and from vessels. The results were applied to improve best practices • Continuous improvement in employee engagement, measured through High Potential Incident) dangerous cargo generating intense heat. across the company. our Gallup survey. • Leadership Gembas (to be carried out according to plan) All cargo aboard Maersk Honam • Critical risk projects (on-time and on-scope delivery) was accepted and stowed onboard the A.P. Moller - Maersk’s (Maersk) safety strategy supply chain obligations in our hands, we have vessel according to existing international Progress in 2020 is grounded in our Safety Differently philosophy, the capacity for safe operations in place. (Read guidelines and practices, which proved where the central premise is that safety is more about sustainability in our end-to-end insufficient to prevent the loss of life A health, safety, security and environmental (HSSE) framework was Building capacity defined by having the capacity to manage risks offerings on pp. 23-24). and extensive damage caused by the fire. developed throughout 2020 and launched early in 2021, aligning how • The collaborative approach to critical risk project management, under variable conditions. This must be enacted In response, we developed a risk-based safety processes and critical controls are implemented across all where different parts of our company work together to uncover through leadership that engages with front-line Managing risks through learning teams stowage concept which divides each operations, including the allocation of core safety responsibilities and risks, create controls and evaluate and validate those, was integrated employees and provides the support they need Over the past two years, we completed a number vessel into six different risk tolerance accountabilities of both employees and leaders of all levels across into the business. Results include risks related to mooring, crane to make safe operations easier. of projects, based on identification of the most zones, and distributes the cargo in a way the business. operations, access to cargo areas and more, as well as a new vessel that ensures maximum fire resistance. inspection app. This philosophy is also evident in our safety critical risks related to fatal and severe injuries We have set targets and actively pursue progress within our focus areas. targets, which do not highlight the absence of across our operational contexts. These include The system is now implemented on • Adapting to the COVID-19 pandemic, we developed a virtual delivery accidents, but rather the presence of leadership, cargo fires, warehousing operations, dropped our entire fleet, both on the vessels we Leadership solution for learning teams, which was tested late in 2020 and is that continuously engage with frontline objects, mooring operations, man overboard own and on those we charter. We are also • The majority of the planned Leading Safety Differently workshops had being rolled-out in early 2021. employees to build capacity to eliminate as and working at height. working to enable a review and update to be cancelled due to COVID-19 travel restrictions. However, 80 of our many as possible of the factors that contribute The risks were identified and solutions of the international regulations of this targeted Top 300 leaders completed virtual sessions in 2020. Culture to the occurrence of accidents, and to manage developed using a core element in the Safety area, in order to optimally protect all crew, • We designed a new leadership programme which we expect to • We see safety as a foundational contributor to employee the outcome of the accidents that still occur. Differently toolbox, namely the learning teams cargo, environment and vessels. launch in 2021. This consists of a toolkit for leaders to direct, lead and engagement, and in line with our target the overall score in our We pursue the targets through activities in approach, where front-line workers share their manage safety with easily accessible and inspiring content that is real engagement survey improved throughout 2020. three tracks: engaging with workers, building experiences with leadership teams, allowing and relevant to their role and will help them integrate it into their • The annual Global Safety Day had a somewhat smaller reach than in capacity and promoting a learning culture. See for a shared understanding of the risks and daily business. previous years due to COVID-19. Where possible, the day was 2020 progress on the next page. possible solutions, which can inform the rope breaks, it can move at over 800 km/ • Roll-out and implementation of the Safety Leadership Gemba celebrated under the theme ’Learning from each other’. This included allocation of resources and responsibility. In hour and snapback incidents can potentially Guidance which helps reconnect leadership to the reality of everyday more than 600 learning teams working on critical risks in their Aligning standards everywhere support of this approach, our port terminals cause severe injuries and fatalities. Through work and to learn from the frontline, continued during 2020. Despite operations and on mental health and well-being, an area of great Up until 2020, Maersk’s safety organisation organisation developed a leader-led programme, crew engagement, this risk was defined and COVID-19 restrictions, more than 28,000 Gemba activities could take importance in 2020 due to the effects of COVID-19 on the well-being was highly decentralised, which in some cases including an app that helps structure such a solution was developed. Now, Maersk has place across the company. of our people. All learning collated from the frontline will inform the hindered the implementation of our safety learning conversations. By the end of 2020, begun implementing a rope innovation called 2021 strategy and planning. strategy, and we have therefore reorganised our there had been more than 36,000 recorded SnapBack Arrestor, where a broken mooring work to reinforce that Maersk has one, and only activities using the app since its launch in March rope simply drops to the ground, instead of one, safety strategy, which is implemented and 2020, and 4,831 times where unsafe work or snapping back in unpredictable paths. Fatalities in 2020 enforced equally across the company. working conditions were stopped before an Mooring is an everyday event across the Sadly, a person lost his life working on one of our facilities. We realise that there is still much more for us to do, to learn and to improve in addressing our The new central Safety and Resilience team incident occurred. Maersk fleet and in the process mooring ropes workplace risks. creates a strong pool of resources and tools breaking is bound to happen. The SBA ropes including implementation support available at Safer mooring ropes through reduce the consequences significantly, and as Business segment Location Description and learnings Employed by all levels across the company. In this way, we crew engagement such reflects the ‘Safety Differently’ approach are able to match and mirror the integrated One learning teams example is our work on as it builds capacity to safeguard people onboard Terminals & Towage Apapa Terminal, A 23-year old roofer lost his life when a scaffold collapsed after being hit by the boom of a tipping crane. Subcontractor company that Maersk is becoming, and assure mooring, which is one of the most dangerous as well as ashore. The phase-in of the new ropes Nigeria We identified multiple factors that contributed to this tragic incident. Our employees and contractors have since used the Learning Teams approach to see if the gaps exist in other facilities, and how to close them. our customers that when they leave their operations on a vessel. When a mooring across our fleet is set to be complete by 2025. 32 A.P. Moller - Maersk Sustainability Report 2020 Responsible business practices Responsible ship recycling Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 33

Responsible ship recycling

Over four years after we landed our first vessel standard practice, along with over 1200-men We are proud of the progress made in at the ShreeRam yard (Plot 78), taking our ILO-compliant worker dormitories built by Alang and are expanding our ambition declaration of wanting to change the ship Maersk-approved yards. For the wider Alang to focus on creating opportunities for recycling industry from words to action, the community and workforce, access to qualified 10-km stretch of beach with recycling yards in healthcare and awareness training has led to responsible ship recycling globally. Alang is a different world. We are proud of the improved health outcomes. progress made in Alang and are expanding our A progressive transformation is also seen at ambition to focus on creating opportunities for a broader Alang industry level – approximately responsible ship recycling globally. 80 of the total of around 120 operational This situation is detrimental to the momentum yards voluntarily comply with the Hong Kong achieved at Alang over the past five years, as The Tove Maersk and MCC Halong undergoing responsible ship recycling at Y.S. Investments (Plot 59) in Alang, India – Sep ’20. Documented improvements Convention, which is the only global convention well as to the shipowners. We do not agree with In 2020 we conducted an impact study at yards on ship recycling. the claims made that the BBA now supersedes engaged by A.P. Moller - Maersk (Maersk) in the EUSRR and the IMO Hong Kong Convention Why is it important Alang to document the outcomes. Between Regulatory barriers to further progress (once it enters into force). Both the EU and IMO Audit results all yards 2017 and 2019, in line with the Responsible Ship However, at yards in Alang as well as among regulations offer equal levels of protection Despite many shipowners having policies for industry, we can make a real impact by driving Number of findings in Recycling Standard (RSRS), nine Maersk vessels responsible shipowners, the frustration and as the Basel Convention and general legal responsible ship recycling, around 90% of the vessels opportunities for responsible practice-driven, vessel landing month and were recycled at five different Alang yards under concern today are almost palpable. International principles dictate the application of the specific recycled globally are under poor health, safety and financially viable recycling. in December 2020 (or at full-time supervision with stop-work authority waste legislation, the Basel Ban Amendment legislation on ship recycling rather than the environmental conditions. As a leader in the shipping completion of vessel) at all and a verification regime through external audits. (BBA) on export of hazardous waste adopted general provisions of waste handling. yards with Maersk vessels After 3,100 training sessions, 2,000 toolbox talks in 1995, entered into force on 5 Dec 2019, and Our position, based on thorough legislative in 2019 and 2020. and 35 Lloyd's Register audits, not a single lost- may effectively hinder non-OECD countries analysis, is that there are legal options available Ambitions time injury incident or fatality occurred. We have such as India, from offering to recycle ships to the EU and we are engaging with a multitude To create opportunities for responsible ship recycling Y.S Investments plot 59, incentivised yards to invest in continual upgrades, coming from OECD countries. This is particularly of stakeholders to find short- and long-term globally for the benefit of workers and the environment, Alang which has also led to the construction of full disappointing to the leading Alang yards, solutions to resolve this gridlock. as well as responsible yards and shipowners. impermeable floors in nine Maersk-approved who have invested significant resources 1 1 yards and the purchase of 15 heavy-duty and engaged extensively with the European Changing our ambition Jan '20 Jan '21 cranes in 11 yards that eliminate contact Commission over the past two years in order to A further challenge is the fact that in the next between vessel blocks the inter-tidal zone. comply with the EU Ship Recycling Regulation few years, globally a big wave of post-panamax Targets J.R.D. Industries plot 30, There have been no major spills or incidents (EUSRR). These yards now comply with the EU Alang vessels, (whose category name is derived from 2020: 2021: with hazardous materials on our projects at regulation, except on a few solvable items the fact that they are too large to pass through • Continue to invest and work with selected • Create opportunities for responsible ship Maersk-engaged yards. related to waste management and access to 1 1 the Panama Canal), will near their end of life. yards in Alang recycling of post-panamax ships globally Appointment letters and payslips, minimum hospitals with trauma facilities, and the yards Jan '20 Nov '20 Very few yards included in the EU List are • Develop the wider Alang area • Work with industry stakeholders to support wages, overtime payments, annual health were pending inclusion in the EU List, which capable of handling post-panamax vessels, and • Actively support and participate in the yards globally, including non-OECD countries, to Alang Auto Gen Engg. checks, a 24/7 ambulance dedicated to each lists global yards allowed to recycle vessels even fewer wish to accept these, with repairs/ development of the Ship Recycling achieve EUSRR-compliance and thereby increase Co. plot 24, Alang yard and many more such facilities are now registered in EU countries. conversions either being their core business or Transparency Initiative actual capacity on the EU List offshore/military vessel recycling their priority • Continue development of the wider Alang area due to higher margins. Thus, there is today • Actively support and participate in the development 24 1 a lack of capacity for responsible recycling of the Ship Recycling Transparency Initiative Apr '19 Jan '20 of mainstream, commercial, post-panamax vessels, regardless of which flag they sail under Şök Denizcilik, Aliaga and where the responsible recycling facilities Progress in 2020 are located. 13 0 Three vessels were sent for RSRS-compliant aimed at raising awareness on hygiene, substance With proven results from Alang that Jul '20 Jan '21 engagement on the ground leads to change, recycling to the Alang yards in India and one for abuse and sexually transmitted diseases covered we are confident that opportunities to remedy EUSRR- and RSRS-compliant recycling to an Aliaga 5,000 workers. Audits take place at regular this situation can emerge from India and other yard in Turkey. Through a robust framework, we We remain steering group members of the Ship intervals, and a new Alang non-OECD countries. Thus, Maersk's ambition continually ensure RSRS compliance which goes far Recycling Transparency Initiative (SRTI), which we yard recycling a Maersk vessel for our work with responsible ship recycling beyond the Hong Kong Convention at all Maersk- co-founded in 2018. The SRTI seeks to accelerate a for the first time typically has changed from radically transforming the engaged yards globally. voluntary, market-driven approach to responsible takes two months to achieve industry beginning in Alang to focusing on With our continual engagement to improve ship recycling practices, with today 11 shipowners RSRS compliance. The one creating opportunities globally. healthcare access in the wider Alang area in 2020, disclosing. With a total of 26 signatories (shipowners remaining audit finding is on We are in active dialogue with a few global the mobile health unit provided 17,600 services and and other stakeholders), it includes around 42% of excess overtime which is a greenfield projects, for example one in the African 1,750 laboratory tests. The training programme the global container fleet by TEU capacity. challenge in many industries continent, where we as interested end-users and geographies with assist in researching, developing the business migrant workforces. The Mobile Health Unit complied with COVID-19 guidelines while it served workers from all Alang yards. case and performing initial due diligence. 34 A.P. Moller - Maersk Sustainability Report 2020 Responsible business practices Diversity and inclusion Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 35

Diversity and inclusion

2020 was a year of increased focus on inclusion Openness relies on psychological safety Unconscious bias work continues Why is it important and non-discrimination in much of the world, We have clear policies in place stating that we Our initiatives on diversity and inclusion Targets and with movements such as Black Lives Matter do not accept discrimination, and we have a support our drive towards targets on gender It is a basic obligation and a core element of our the competitive advantage that diverse teams and performance on originating in the US, as well of new bursts of whistleblower system with a range of options and nationality representation in management. values not to discriminate against our employees. inclusive cultures can bring to our business, and diversity and inclusion attention to LGBTQ+ rights and continued focus for our employees to communicate grievances. Our key approach is employee engagement Discrimination bars people from living up to their meet our employees' demand for working in a on #metoo around the world. It can be daunting raising grievances on such and capability building, and over the past three full potential, creates inequality and less stable company that values diversity and inclusion. 2019 2020 Our global presence means that we are sensitive issues and we want to do more to years, we have worked on creating awareness and prosperous societies. We also want to leverage Target 2021 affected by events and movements regardless encourage our employees to speak up and of unconscious bias and related effects, of where they take place, and they impact us to report any concerns of harassment and or establishing inclusion networks covering our take specific actions and provide input to discrimination at Maersk. global organisation. Ambitions A.P. Moller - Maersk’s (Maersk) continued, We are doing this through increasing As is the case for race, gender, beliefs, Representation global conversation on diversity and inclusion. awareness and capability in building disabilities and more, it is a basic human right We aspire to create an inclusive culture where of women Diversity and inclusion are part of our value psychologically safe teams and cultures. We not to be discriminated against due to one's all employees can have a sense of belonging and Executives 20% system, and our support for social justice build this into our leadership programmes sexual orientation. In support of human rights, contribute to their fullest. In doing this, we will be in and anti-discrimination is also expected by and provide separate virtual learning sessions we have participated in Pride activities since 2018. a prime position to attract people from the widest 18% our employees. In the North American part available to all employees. 2020 saw our planned Pride celebrations talent pool, specifically increasing the gender and 16% of our company, we took time to reflect on In 2021 we will be conducting our first global move to a virtual platform and we used this nationality diversity at our senior levels. what discrimination means and how this Inclusion survey that aims to increase our opportunity to reflect on the history and Senior leaders 18% impacts our teams. Conversation with our understanding on issues such as discrimination, evolution of Pride, among other things through 14% leaders began with virtual sessions focused harassment, diversity and inclusion. The a series of global webinars to understand its Targets 17% on race discrimination, providing them with results from the survey will be used to focus journey and essence: the ability to freely and Our target is to have three women on the Board of For senior management, we have targets for a framework to support discussions within our priorities going forward. We have taken safely express oneself. This also allowed us Directors, if the Board consists of less than twelve representation of women and nationalities Leaders 25% their teams. We also ramped up our focus on the decision to set up an ombuds office to to address the racial conversations that were members, and four women, if the Board consists of (see side bar). allyship, where you work for change even if you specifically hear out grievances that employees dominating societies around the world and the twelve or more members. 24% are not personally affected by what you are do not feel comfortable reporting to human importance of talking about racism as well as 23% aiming to change. This topic is not new to resources departments, line managers or where we stand as a company. Maersk but we find that its importance to the posting to the whistleblower system. Progress in 2020 Senior managers 35% diversity agenda is growing. The target for representation of women on the is very low. In January 2020, we joined an initiative 29% A.P. Moller - Maersk Board of Directors was met in hosted by the Danish Shipping Association focused 30% 202010. However, we are still not satisfied with the on attracting more women to shipping and logistics, progress we have made towards our nominal and we have established a women’s network in our targets on gender and national representation in global technology function. Containers sending a message senior management. We are implementing new As part of our global maternity policy, we have a Representation of While we recognise the need for our company controls and processes to drive improvements, and target of reaching a 90% retention rate for women persons not from to work harder to improve on our own targets during 2021, we will set and share updated targets returning to work after maternity leave. In 2020, high-income OECD on diversity and inclusion, we also believe that for the period from 2021 - 2025. this was the case for 74% of the target group. countries symbolic statements can help create global Our progress on women in management is Maersk's gender diversity and inclusion policy Executives 30% awareness of fundamental rights. adversely impacted by the fact that the share of provides details of our actions to increase gender 11 In that vein, we have branded two Maersk women working in logistics and technology – which diversity. It is available on Maersk's website . 14% containers in rainbow colours. They made their are areas in which we recruit many candidates – 11% debut in Mobile, USA and are now travelling the world with goods from our customers, and making Senior leaders 21% appearances at select events for our company. Representation of women on the A.P. Møller - Mærsk A/S Board of Directors (2020) 19% The containers have raised interest from 20% many of our customers who are also committed to driving inclusion in their organisations. In Leaders 38% partnership with our customers, we will see these containers spread this important message. In women 29% 2020 both containers were deployed to deliver 34% humanitarian relief to victims of Hurricane Laura out of in Louisiana, and later left Los Angeles to arrive 10 3 Senior managers 52% in Shenzen in China, whereafter they connected 43% to Europe. 10 A.P. Moller - Maersk A/S has a number of subsidiary companies that fall under the Danish legislative requirements on gender reporting, and which have all set targets for the underrepresented gender on the respective Boards of Directors. Of the companies, a portion have already obtained target representation on the 44% Board, while the remaining continue to strive for their targets. See the management reports of the respective companies. 11 https://www.maersk.com/careers/work-with-us/diversity-and-inclusion 36 A.P. Moller - Maersk Sustainability Report 2020 Responsible business practices Employee relations and Responsible procurement Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 37

Employee relations Responsible procurement

Why is it important Why is it important Working with unions Audits and The way we treat our employees is fundamental This begins with ensuring respect for during COVID-19 Through our operations and purchasing decisions sustainability risks in our supply chain strengthens, assessments to the way we want to do business, and our internationally recognised human rights and we have an impact on social, environmental and our stakeholders’ trust in our brand and increases in 2020 employees are essential to the success of labour standards in all our workplaces. During 2020, we engaged economic conditions in our industry and global our preparedness for rising regulatory attention on A.P. Moller - Maersk's (Maersk). with trade unions at global supply chains. Monitoring and addressing due diligence in supply chains. and local levels to discuss Ambitions the needs of our employees Ambitions both at sea and on land +/- 3,500 All our employees will be treated fairly in a safe Manage the risk of supplier non-compliance with and to make a joint effort in Suppliers in the high-risk and healthy working environment, and we are our Supplier Code of Conduct to support our protecting their health. categories committed to creating a working environment commercial ambitions of end-to-end sustainable Our leadership had where each employee feels valued and can prosper. product offerings. discussions with the International Transport Control actions Targets workers Federation's Targets carried out 2020 2021: leadership to align our 2020 2021: • Ensure compliance with our Commit Rule on • Ensure compliance with our Commit Rule on approach on COVID-19 • Ensure that all purchasing activities are aligned • Ensure all purchasing activities are aligned with • Shipyard audits Global Employee Relations, which is based on Global Employee Relations, which is based on and explore options for with RP requirements. Successfully close Responsible Procurement requirements internationally recognised labour standards. internationally recognised labour standards. collaboration. This resulted improvement plans. • Expand scope of Responsible Procurement in 12 10 • In 2020, improve employee relations maturity • Conduct our bi-annual labour rights assessment in sharing of information • Review responsible procurement programme to line with ambitions to strengthen sustainability (14) (14) level in the business by increasing management • Help to make employee engagement and and knowledge about our align with evolving risk picture from expansion in end-to-end offerings capabilities and mitigating risks of working with workforce management integral to the solutions to make the of activities on land. • Operationalise post-sourcing audits for trucking, third-party labour in our supply chain. development of end-to-end logistics necessary crew changes • Participate in collaborative efforts on trucking. warehousing and third-party labour providers • Other audits • Ensure that new ways of working (e.g. flexible and get seafarers home, • Prepare for legislation on supply chain working hours, digitisation/automation) are due diligence just as we coordinated our 5 4 introduced responsibly and involving relevant discussions with the ILO (54) (48) stakeholders which led to a resolution in Progress in 2020 December 2020, recognising The A.P. Moller - Maersk (Maersk) Supplier Code of Our audit and assessment activities in 2020 Progress in 2020 seafarers as essential workers. Conduct (Code) sets out minimum requirements are shown in the side bar. The number of audits • Other self-assessments Our work on employee relations rests on the The work to align our business to future demands on responsible business practices for our direct decreased due to the impact of COVID-19, and Locally, we have worked with core belief that employees are essential to the and opportunities will continue, and we are taking suppliers and select sub-suppliers, to operate in physical audits were replaced by virtual solutions. 595 71 trade unions on: development and success of our business. We act action to enter into these processes as prepared accordance with responsible business principles Equally, the number of self-assessments decreased, (742) (68) in accordance with international frameworks and as possible. and in full compliance with all applicable laws and as we took in fewer new suppliers in high-risk • Health & safety measures conventions from the UN, OECD and ILO, as well as in One example is that we introduced a new way regulations. In our own supply chain, we work categories, and timelines for improvement plans of which compliance with local legislation where we operate. to engage management teams in our terminal for employees, including through our Responsible Procurement Programme. had to be extended. We did not terminate any Our leadership have access to support for their business in working pro-actively with employee mutual agreements on Increasingly, this also serves a commercial purpose, relationships as a result of non-compliance. negotiations with employee representatives, where relations. We mapped the potential risks and level workplace instructions, as our global integrator strategy leads to purchasing To raise internal awareness of our standards cleaning and sanitation, • Pre-qualification they discuss the local collective bargaining agreement. of maturity in managing employee relations in logistics on behalf of customers outside our own in procurement, we created a short e-learning assessments A focus area in 2020 was third-party labour all terminals, with indicators such as the level and protective clothing. supply chain. On activities related to this aspect, programme on responsible procurement in 2020, which is a risk area and important for us as we of stability of political, social and environmental • Business continuity, please see p. 23. which is now part of the annual compliance including different ways 442 441 expand our logistics business. Read more on issues in the community and the frequency of In our Responsible Procurement Programme, training for all employees. (622) (619) pp. 23-24. communication between management and of servicing vessels, shift- we have assessed compliance with the Supplier One of our most important high-risk categories changes in terminals and COVID-19 prevented the roll-out of the Employee employee representatives. The goal is to build Code of Conduct with approximately 3,500 is shipyards. In 2020, we co-led the work of a UN Qualified Relations face-to-face training programme. Instead, maturity in these relationships including a vision and on tugs. suppliers in high-risk categories, by conducting Global Compact Action Platform to develop a suppliers we began the development of a virtual training strategy for each terminal on employee relations. • Supply chain continuity, due diligence activities such as audits, self- guidance for shipyards, which will serve as an programme that will be launched in 2021. In 2020, the whistleblower hotline was used where the broader supply assessments and documentation reviews. This is implementation tool for the Sustainable Ocean The COVID-19 pandemic did not lead to any 143 times to report on issues related to potential chain community including out of a total supplier population of about 59,000. Principles released in 2019. It will establish Maersk employees losing their job. However, we violations of HR-related laws, rules or company truckers, rail staff, We use a risk-based approach working with suppliers common industry standards for social and let go of 2,700 employees in 2020 as part of the values. 17 of these cases were substantiated, 11 of warehousing workers and in 15 high-risk categories12. Suppliers are asked to environmental performance, and is expected to cargo owners, established 2020 strategic integration of our business and brands. which were related to the Commit Rule on Global address any gaps in the implementation of be published in 2021. 2019 When the organisation changes, we have pre- Employee Relations. Appropriate action was taken agreements and conditions requirements through a time-bound improvement established information and consultation processes according to company policies. 45 cases are still for collaboration. plan in consultation with Maersk. Periodic reviews Improvement plans with participation from both management and under investigation. and follow-up audits are conducted. established to address employees, and we work to ensure that all standards critical and major findings 12 Our 15 high-risk categories are: Trucking and Intermodal, warehousing services, facility management, outsourced labour, terminals, shipbuilding yards and for employee relations are upheld. drydocks, security offshore, promotional items, customs agents, security onshore, construction, chemicals and paints, equipment, maintenance and repair, container manufacturers and manning (seafarers). 38 A.P. Moller - Maersk Sustainability Report 2020 Responsible business practices Air emissions and Ocean health Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 39

Air emissions Ocean health

Why is it important Why is it important Reducing Expanding our

Air emissions from ocean-going shipping have We support regulation such as the cap on sulphur the impact of SOx The global oceans redistribute CO2 and heat, the ocean is rapidly deteriorating due to increasing support for The Ocean negative effects on human health and the natural content in fuel oil, which will significantly reduce supply people and communities with food, water, temperatures, acidification, depletion of natural Cleanup Research has shown environment, as they cause diseases and these effects and create a level playing field for renewable energy, and build livelihoods through resources and pollution from land and sea, that the annual, ship-related premature death. socially and environmentally responsible practices tourism, trade and transport. The health of including large quantities of plastic waste. Since 2018, Maersk has global health impacts from in the industry. been proud to partner with using fuel with 3.5% sulphur The Ocean Cleanup, providing instead of 0.5% fuel are Ambitions offshore support for their Ambitions We see ourselves as citizens of the oceans and we plastic waste cleanup system To continue to be an industry leader working 137,000 are committed to doing no harm while at the same in the Pacific Ocean. A new, towards reducing air emissions from international premature time actively participating in restoring ocean health three-year partnership deaths shipping, particularly in regard to SOx and NOx and resilience and protecting animal habitats. agreement was established

emissions, which are important in port areas and during 2020. It expands the when sailing close to shore. 7 million collaboration to include both Targets childhood maritime and end-to-end asthma cases13 Targets • Zero non-contained oil spills above 10 m³. • Continue collaboration with The Ocean Cleanup. logistics services, in line with the anticipated scale-up of • Fully comply with regulatory demands to reduce • Actively engage at international and regional • Fully comply with rules and regulations to minimise • Support ocean science research through data The Ocean Cleanup's ocean air emissions impacts and continue investing in levels to secure a level playing field and high This is the driver behind the negative impact on ocean health, including waste collection and partnerships. activities as well as the maintaining and implementing solutions that levels of enforcement of regulation across IMO's legislation on SOx, management and ballast water systems expansion to include systems will enable this. the industry. which from 2020 requires deployed in large rivers. the entire global fleet to sail Progress in 2020 on fuels with Maersk's assistance Progress in 2020 Our first obligation as citizens of the oceans is to comply with this demand. We saw no non- will range from shipping, Across A.P. Moller - Maersk's (Maersk) activities, The main concern in the years leading up to the cap 0.5% comply with rules and regulations that safeguard compliances with existing regulation. All marine customs clearance and sulphur content we strive to minimise the known negative impacts taking effect was uneven enforcement, as it was ocean health. For A.P. Moller - Maersk (Maersk), this life from plankton to whales reacts to noise, and warehouse and storage related to our operations. This is also true for air estimated that a large container vessel could save includes managing fuels or chemical substances to for this reason the increase in underwater noise management. emissions which include SOx, NOx and particulate around USD 750,000 sailing from a port in Asia to avoid spills into water, managing waste to keep it from human activity is of growing concern. One On the offshore side, matters. All of these are potentially harmful to a port in Europe when using non-compliant 3.5% out of the oceans and living up to the regulation on example of this is how ship noise impacts and in addition to deployment human health and we work to fully comply with marine fuel instead of compliant 0.5% fuel. ballast water. We have policies and procedures to confuses the communication of an endangered services, Maersk will regulatory demands to limit air emissions and strive While the level of control is not always as The compliance measures manage and mitigate all these risks. species of orca whales. A positive bi-product of contribute to developing a to minimise the impacts. stringent as we would have hoped for, we have approved by the IMO are In 2020, there were two non-contained spills. some of our energy efficiency retrofits of vessels more sustainable maritime One spill to land in our terminal business in is that the level of ship noise is lowered. We sail at approach with alternative On 1 January, one of the largest changes in the received no indication that compliance is lacking. Carrying and 3 fuels and new fleet design. maritime industry in decades came into effect with Looking at which oil types are sold on the global using only low- The Netherlands (19 m ) and one spill to water slower speeds in areas where these whales have the International Maritime Organization's (IMO) 0.5% market is a useful proxy for evaluating compliance, sulphur fuels on relating to Maersk Supply Service and resulting been identified. Maersk’s support is provided 3 global cap on the content of sulphur in fuels. One of and it appears that the low-sulphur fuel uptake is vessels from a mud spill (20.3 m ). as full or partial donations, the enforcement mechanisms for this legislation is at the expected level. However, it should also be Dumping waste at sea contributes to the ailing Collaborating for ocean health or on favourable terms. Installing a ban on carrying non-compliant fuels on vessels, noted that due to COVID-19, port state controls health of oceans and the biodiversity crisis. Maersk Weather and sea state observations from vessels The Ocean Cleanup’s scrubbers to has a zero-dumping policy, obligating all vessels at sea provide data on meteorological conditions goal is to reach a 90% except for vessels where scrubbers are installed to have been made more difficult. We therefore hope clean vessels' clean exhaust gasses. Mainly due to the IMO 2020 that enforcement campaigns can resume in 2021. exhaust to store waste and discard it when in a port with for weather forecasts, help climate scientists reduction of floating ocean sulphur cap, which Maersk complies with through The use of scrubbers to clean the vessels' adequate facilities. We are challenged by a lack of understand climate change, and help to protect plastic by 2050. This is an capacity in qualified waste reception facilities at life and property on vessels by allowing better important issue to many of the use of low sulphur fuels as well as scrubbers on exhaust of SOx remains a discussion point and Enforcement of the ports internationally. We have mapped and vetted forecasting of storms and other extreme ocean- our seafarers as well as to a share of our vessels, SOx emissions have dropped no independent global survey of the effects of legislation is critical. On facilities to enable our vessels to plan around the related events. In 2020, we agreed to commit our colleagues on land, and in significantly from approx. 569,000 tonnes in 2019 to scrubbers has yet been produced to support global just one voyage from Asia gaps, but our operations would be more efficient fleet of 300 owned vessels to be part of the global 2020 we ran a campaign approx. 102,000 tonnes in 2020. legislation. Still, more national and regional to Europe a large container with proper facilities available. Voluntary Observing Ship (VOS) scheme, run by encouraging employees and Thorough preparations in the years leading up to legislation is being implemented, for example in vessel could save up to this date ensured a successful switch from heavy the EU, some US states and Australia, requiring Also affecting the health of oceans and the World Meteorological Organization and the teams to become Ocean fuel oil to low sulphur fuels across our fleet of both vessels to shut off the scrubber system when USD biodiversity is how vessels handle ballast water. Intergovernmental Oceanographic Commission of Ambassadors, take local owned and chartered vessels. In 2020, we saw only entering near-coastal waters and switch to 750,000 This is often added in one marine environment to UNESCO. By mid-year 2021, we will have finalised initiatives and share their four cases of non-compliance with international low-sulphur oil. As a result, more ports are keep the vessel stable and safe, and later discharged installation of fully automated weather stations efforts to clean up beaches by using non- sulphur regulations caused by contamination in the in another environment due to changes in cargo. on 50 vessels. and their environment. expected to declare a ban of open-loop scrubbers. compliant fuel. supply chain of oil or by human error. As a remedial Maersk has installed open-loop scrubbers This may result in invasive species disturbing local We have also contributed to the UN Global Despite COVID-19 restrictions, action, we have begun testing sulphur content of on a share of our vessels as a commercial risk ecosystems. The Ballast Water Management Compact's guidance for the shipping industry to we saw around 80 team the fuel prior to bunkering. management measure. Convention (BWMC) obligates shipowner to have support implementation of the Sustainable Ocean contributions from around ballast water systems installed on all vessels by 2024. Principles, which we participated in establishing the world.

13 https://www.nature.com/articles/s41467-017-02774-9?utm_source=commission_junction&utm_medium=affiliate We are progressing in accordance with our plan to in 2019. 40 A.P. Moller - Maersk Sustainability Report 2020 Responsible business practices Anti-corruption and Responsible tax Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 41

Anti-corruption Responsible tax

Why is it important Why is it important When third parties act Corruption undermines social and economic on bribery and corruption may lead to legal and on our behalf Well-functioning tax systems locally and internationally help finance We recognise the need for companies to support the local economies in development. It destabilises the business reputational risks, extra costs, inefficiencies in our education, infrastructure and other public services that support which they do business. Working through third parties environment and adds to the cost of participating business, fines, imprisonment and ultimately sustainable development, local societies, business and trade. is a known corruption risk in global trade. It affects external confidence as well debarment from markets. to our business. To improve as company morale. Non-compliance with legislation risk mitigation, we have invested in a third-party Ambitions Ambitions management system, and in 2020 we developed and Be a compliant and accountable taxpayer with responsible and We aim to eliminate corruption in the industries initiated the roll-out of a transparent tax practices. where we are active through both multistakeholder structured risk-based third-

collaboration and actions in our own operations. party management process

across Maersk. Targets Targets In the first year • Ensure full compliance with tax regulations in all countries • Implement the B-Team Responsible Tax Principles with reporting Comply with legislation on anti-corruption practices, of operations, where we operate. for 2020. which ultimately translates to zero bribery and • Continue to engage in dialogue with stakeholders on tax matters. elimination of facilitation payments. 1200 leaders and employees have Progress in 2020 Progress in 2020 been trained A.P. Moller - Maersk's (Maersk) total tax charge in 2020 was 407 million chosen this disclosure approach to achieve the right balance between The risk of corruption in our ocean business relates addition to our controls. Read more about this in 250 USD, compared to 458 million in 2019. See the A.P. Møller - Mærsk A/S our support for additional transparency on corporate tax and ensuring primarily to interactions with authorities in ports and the side bar. Annual Report 2020 for more details. the relevance of the disclosed information. third parties at border controls, and mostly as facilitation payments. In 2020, we registered five minor incidents of We continue our dialogue with stakeholders including the B Team, Our updated Maersk Tax Principles and CBCR tax payments will be have been or are In our terminals, the risk is greatest when negotiating facilitation payments on own vessels, and reduced learning and sharing best practices with other companies who have also available on the Maersk.com website in Q2 2021, when the 2020 CBCR being processed government agreements on concessions. Risks on land payments on chartered vessels by a further 39% endorsed the B Team's Tax Principles. tax numbers are available. and in our supply chain are predominantly managed compared to 2019. 5 We are in the process of updating the Maersk Tax Principles, providing The EU list of noncooperative tax authorities for 2020 comprises through our Responsible Procurement programme. We are investigating how we will address more relevant information to our stakeholders and explaining the different twelve countries, of which Maersk has activities in four: Due to a prior third-party We work to combat bribery, fraud, kickbacks and facilitation payments in ports and in the inland tax rules, under which Maersk operates. In particular, how our shipping year adjustment, in Panama we paid USD 781,000 in taxes on a profit of engagements preferential treatment by performing due diligence logistics and are among other things conducting a activities are taxed under the tonnage tax regime. This is a methodology USD 460,000, in the US Virgin Islands we paid USD 743,000 in taxes on a were avoided of agents, joint venture partners, key suppliers, and pilot study in Southeast Asia to map and using vessel tonnage to determine the taxable income on which corporate profit of USD 1,531,000 and in Barbados we paid USD 15,000 in taxes on or stopped on M&A targets prior to signing a contract or entering understand where the money originates and how it tax is paid. As a result, liner entities are not taxed on actual commercial a profit of USD 477,000. We have very minor profits (less than USD 1,000) ethical grounds a new market. Expectations to employees are travels through systems and processes. We will be profit or loss. As our business grows on land, more of our income will be and tax payments in Trinidad and Tobago. outlined in the A.P. Moller - Maersk (Maersk) Code of scaling up this project to develop a global taxed according to regular corporate tax rules and based on actual profit. In December 2020, as per the deadline for 2019 CBCR tax numbers, Conduct and the Maersk Anti-Corruption policies and approach to this issue, just as we will continue to As part of our updated Maersk Tax Principles we will be disclosing tax we disclosed full country by country reporting to the Danish tax Through this process, we guidelines. We enforce rules on travel, meals, lodging, collaborate with the Maritime Anti-Corruption payments, in accordance with the OECD Country by Country Reporting authorities in accordance with our legal obligations. select the third parties best gifts, amenities and entertainment, and employees Network on this and other projects. (CBCR) principles, for the largest taxpaying countries per region. We have suited for our business complete annual training on compliance. Our current Of the channels used for reporting, the based on their competence, compliance programme is based on guidelines for whistleblower hotline was used in twelve instances integrity, and other relevant complying with the US Foreign Corrupt Practices Act. to report on public sector corruption cases. So far, capabilities. We also have a We work on projects focused on risk-based none of the cases have substantiated while three process for comprehensive mitigation measures, e.g. in-person training, cases are still under investigation. due diligence on acquisition transaction testing, spot checks and appointment of In December 2020, the Brazilian authorities filed targets, joint venture partners business compliance ambassadors, strengthening a civil lawsuit against A.P. Moller - Maersk A/S and and shareholders through our internal compliance controls framework as well other Maersk group entities related to allegations which we reviewed 60 as rolling out a conflict-of-interest policy. Executive that a third-party broker made improper payments potential partners in 2020, as commitment through words and actions has helped in connection with certain tanker charter party well as created a process for set the tone for the rest of the company. agreements entered into with Petrobras between timely and orderly integration One top priority in 2020 was finalising the 2008 and 2010. We remain committed to of the acquired entity implementation of the Maersk third-party management cooperating with the authorities, but cannot into existing compliance process, which in this structured form is a new publicly comment on ongoing litigation. programme structures. 42 A.P. Moller - Maersk Sustainability Report 2020 Progress overview Summary of targets and progress across all issues Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 43

This table provides an overview of our ambitions in the context of the UN Sustainable Development Summary of targets and progress across all issues Goals, summary of targets and progress in 2020, and how the issues are governed.

Issues Sustainable trade Decarbonising logistics Safety Responsible Diversity and Employee relations Responsible Air emissions Ocean health Anti-corruption Responsible tax Disaster response (p. 13) (p. 16) (p. 30) ship recycling (p. 32) inclusion (p. 34) (p. 36) procurement (p. 37) (p. 38) (incl. spills) (p. 39) (p. 40) (p. 41) (p. 25)

8 . 2 9 . 3 12 . 3 17 . 10 7 . 3 13 .1 17 . 16 8 . 8 8 . 8 14 . 1 17 . 16 5 . 1 10 . 2 8 . 5 16 . 3 12 . 6 3 . 9 14 . 1 3 . 9 14 . 1 17 . 6 16 . 3 17 . 16 16 . 6 17 . 1 17 . 6 UN SDG 8 . 3 17 . 16 5 . 5 10 . 3 8 . 7 14 . 3 16 . 5 8 . 5 8 . 8

Ensure that trade serves as a To take leadership in the We want to protect our people, To create opportunities for We aspire to create an All our employees will Manage the risk To continue to be an We see ourselves as We aim to eliminate Be a compliant and To follow our values and positive contributor to global and decarbonisation of shipping eliminate fatalities and severe responsible ship recycling inclusive culture where all be treated fairly in a safe of supplier non- industry leader working citizens of the oceans and corruption in the industries accountable taxpayer use our leverage and local development and growth, with and help our customers injuries, enable Maersk to be globally for the benefit of employees can contribute and healthy working compliance with our towards reducing we are committed to doing where we are active through with responsible and logistics capabilities to a particular focus on enhancing decarbonise their supply chains. a preferred employer and workers and the environment, to their fullest. In doing environment, and we are Supplier Code of air emissions from no harm while at the same both multistakeholder transparent tax practices. support response efforts opportunities for small and to provide safe and resilient as well as responsible yards and this, we will be in a prime committed to creating a Conduct, to support international shipping, time actively participating collaboration and actions in in case of natural disasters Ambition medium-sized traders. products and services to our shipowners. position to attract people working environment where our commercial particularly in regard to in restoring oceans' our own operations. and other emergencies. customers. from the widest talent each employee feels valued ambitions of end-to-end SOx and NOx emissions. health and resilience and pool. and can prosper. sustainable product protecting animal habitats. offerings.

By 2025: Connect 50% of global To have net zero CO2 emissions 2020: Top 300 leaders 2020: Continue to invest in 3 women on the Board 2020: Ensure compliance 2020: Ensure Fully comply with Fully comply with rules Comply with legislation on Ensure full compliance Participate, as part of the containerised trade to digital solutions from our own operations by complete Safety Differently and work with selected yards of Directors, if the Board on Global Employee purchasing activities regulatory demands to and regulations to minimise anti-corruption practices, with tax regulations in Logistics Emergency Team that reduce supply chain barriers. 2050, which includes having workshops; verification of in Alang; develop the wider consists of less than 12 Relations; improve align with RP reduce air emissions negative impact on ocean which ultimately translates all countries where we (LET), in filling operational By 2025: Help connect 100,000 small commercially viable, net zero critical controls; improved Alang area; actively support and members, and 4 women, employee relations maturity requirements and close impact and continue health including waste to zero bribery and operate. gaps in case of complex Targets and medium-sized enterprises, including vessels on the water by 2030. employee engagement. participate in the development if the Board consists of level in the business. improvement plans; investing in maintaining management and ballast elimination of facilitation Continue to engage emergencies and large- women-operated businesses, to of the Ship Recycling 12 or more members. 2021: Ensure compliance review programme to and implementing water systems. payments. in dialogue with scale natural disasters. international trade. To deliver a 60% relative reduction 2021: Leading-indicator Transparency Initiative. align with risk picture solutions that will in CO emissions by 2030 targets for building safety For senior management, on Global Employee Continue collaboration stakeholders on tax Contribute in LET By 2025: Contribute to trade facilitation 2 from expansion on enable this. compared to 2008 levels. capacity are set for: 2021: Create opportunities for we have targets for Relations; conduct with the Ocean Cleanup. matters. preparedness activities. reforms in 30 developing countries. responsible ship recycling of representation of women bi-annual labour rights land; participate in Actively engage at • Learning Team activity collaborative efforts Support ocean science Implement the B Contribute to halving food loss in post-panamax ships globally; and nationalities assessment; make international and regional • Leadership Gembas focused on trucking. research through data Team Responsible Tax logistics in support of sustainable • Critical risk projects support yards globally to (see p. 35). employee engagement and levels to secure a level collection and partnerships. Principles with reporting development and growth of our cold achieve EUSRR-compliance; workforce management 2021: Ensure playing field and high for 2020. chain business. continue development of the integral to the development purchasing aligned levels of enforcement Zero uncontained oil spills 3 wider Alang area; actively of end-to-end logistics; with RP requirements: of regulation across above 10 m . support and participate in ensure that new ways of expand scope of the industry. the development of the working are introduced RP and strengthen Ship Recycling Transparency responsibly. post-sourcing follow- Initiative. up to strengthen sustainability in end-to- end offerings; prepare for legislation on supply chain due diligence.

TradeLens integrated with over 220 Based on a strategic review All targets affected by Three vessels sent for RSRS- Target for women on Built processes to ensure Audits and subsequent Successfully Progressed in line with Five minor facilitation Charge of 407 million Contributed to supporting organisations, including ocean carriers of global climate scenarios COVID-19. compliant recycling to Alang Board of Directors met. health and safety for improvement plans implemented shift to plans for compliance payments on our own USD for taxes. See the society in the fight against and ports and terminals, resulting in and transition pathways, Educated 80 company leaders yards in India and one for Targets for management employees despite affected by COVID-19. low-sulphur fuels across with IMO Ballast Water vessels in 2020 and a A.P. Møller - Mærsk A/S the COVID-19 pandemic access to half of the world's ocean decarbonisation was established EUSRR- and RSRS-compliant representation were COVID-19. our owned fleet. Management Convention. further 39% reduction of Annual Report 2020 through donation of Progress 2020 on Safety Differently, and Groundwork for container cargo. as a strategic imperative for the designed a new leadership recycling to an Aliaga yard in not achieved. Revised Progressed in enhanced integration of Registered four Partnership with the Ocean facilitation payments for more details on services and financial Two pilots planned in multi-stakeholder company, and a dedicated function programme for launch in 2021. Turkey. For audit results, targets for 2021 and management of risks in responsible procurement non-compliances Cleanup Project extended on chartered vessels the annual tax charge. support, equal to 4.2 project to automate advance sea cargo was created to accelerate progress. see p. 33. onwards will be launched relation to third-party in end-to-end product with international sulphur to 2023. since 2019. We are in process of million dollars. Integrated collaborative later in 2021. data for developing countries. Reduced CO₂ emissions by 46.3% approach to critical risk project Continued advocacy in the EU workers. offerings laid, focusing regulations caused by Supported science with Finalised the updating the Maersk Tax Through LET, established Over 4,000 active Twill customers, since 2008, with 2.5% achieved in management across the to advance inclusion of Conducted psychological 143 cases related to on third-party workers, contamination in the oil commitment of our entire implementation of Principles. cold chain for vaccine and almost 1,700 participants in Twill 2020. Maersk ECO Delivery sales organisation and progressed compliant Alang yards on the safety-webinars across potential violation of minimum standards supply chain or by fleet of 300 owned vessels the Maersk third-party Complied with tax storage in South Sudan. webinars and coaching programmes. exceeded expectations. on critical risk projects. EU List, among other things the organisation. HR-related laws, rules for truckers in the EU, human error. to be part of the global management process, disclosure legislation, through the results of an and strengthening including training of 1200 Invested in 21 start-ups enabling trade Continued research on priority Developed virtual delivery Work on unconscious bias or company values were SOx emissions Voluntary Observing Ship including CBCR reporting future fuels (biodiesel, methanol, impact study of our activities continued. processed through our post-audit compliance significantly reduced (VOS) scheme to collect employees, processing to authorities. for SMEs, reaching more than 15,000 solution for learning teams, in Alang. in collaboration with of 250 third parties and customers. lignin fuels and ammonia) for roll-out in early 2021. Establishing inclusion whistleblower system. to approx. 102,000 meteorological data at sea. Continued to prepare for confirming that net-zero Contributed data and 17 of these cases were local HSSE functions. tonnes mainly as a termination or avoidance of Contributed to trade facilitation reforms Carried out annual Global networks covering our Two non-contained spills: 5 third party engagements. alignment with B Team technologies are available. information to the Ship global organisation. substantiated, 11 of which result of the IMO2020 One spill to land in our tax principles. in 10 countries. Maersk will not use transition Safety Day under the theme Recycling Transparency were related to the Commit sulphur cap. 12 cases related to 'Learning from each other'. 2020 saw our planned terminal business in The Cold Chain Logistics business serving fuels (such as LNG) but leapfrog Initiative. Rule on Global Employee Netherlands (19 m3) and public sector corruption several hundred customers across to fully net-zero fuels. virtual pride celebrations Relations. processed through our Continued support for medical move to a virtual platform. one spill to water relating to nearly 50 countries. Worked with customers, partners outreach in wider Alang Maersk Supply Service and whistleblower system and regulators to build the market, including support for COVID-19 resulting from a mud spill of which none were fuel supply chains and policy response in the community. (20.3 m3). substantiated. frameworks to support net-zero emissions shipping.

Our commitments on trade are owned Decarbonisation steering Governed through the Commit Responsible ship recycling Our Diversity & Inclusion Governed through the Governed through Governed through the Governed through the Governed through Governed through the Governed through internal and driven though the relevant business commitee with executive rule on Health, Safety and steering committee overseeing policy and targets Commit rule on Global the Commit rule Commit rule on Health, Commit rule on Health, the Commit rule on Maersk Tax Principles SOPs and guidelines for areas and brands, including TradeLens, membership. Environment (HSE). our Responsible Ship Recycling are owned by HR and Employee Relations. on Responsible Safety and Environment Safety and Environment Anti-corruption. and overseen by the LET engagement and local Twill, Maersk Growth, and Cold Chain Standard. overseen by the Executive Procurement. (HSE). (HSE). Executive Leadership donations. All COVID-19 Governance Logistics, and overseen by the Executive Leadership Team. Team. donations coordinated by Leadership Team. the Crisis Management Team. 44 A.P. Moller - Maersk Sustainability Report 2020 Data and assurance Performance data Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 45

Performance data

A.P. Moller - Maersk Continuing operations Discontinued operations Comments on 2020 performance data 2020 2019 2018 2020 2019 2018 2020 2019 2018 Social performance Social performance Our employees Our employees Number of employees (FTEs) 83,624 86,279 85,689 83,624 83,512 82,806 - 2,767 2,883 FTE data is taken from the audited 2020 Annual Report of A.P. Møller - Mærsk A/S where more information can be found. Women in leadership (% based on headcount) 28% 27% 25% 28% 27% 25% - - 10% Continued focus on our targets has helped us make a slight improvement in our leadership numbers for women and target nationalities. Gender – female/total (% based on headcount) 28% 28% 27% 28% 28% 27% - - 8% Further comments on our performance on diversity and inclusion, along with our targets and performance on representation of women on the Board of Directors and Target nationalities in leadership (% based on headcount) 40% 38% 37% 40% 38% 37% - - 12% representation of women and persons from countries that are not in the OECD high-income countries list, can be found on page 34-35. Target nationalities/total (% based on headcount) 72% 71% 70% 72% 71% 70% - - 23%

Fatalities (headcount) 1 5 7 1 5 7 - - 0 One fatal accident relates to a subcontractor in the Apapa terminal in Nigeria (see more on p. 31). LTIf is calculated as number of injuries relative to exposure hours. It has Lost-time injury frequency (based on exposure hours) 1.27 1.16 1.29 1.27 1.16 1.30 - - 0.91 increased due to improved recording of injuries sustained by contractors in our inland logistics business area, while the exposure hours for contractors were not available. Environmental performance Environmental performance Energy consumption Energy consumption Fuel oil (1,000 tonnes) 10,368 11,173 12,017 10,368 11,173 11,994 - - 23 Decrease is due to improved efficiency and strategic focus on decarbonisation. Because of COVID-19, fewer vessels were in operation with less cargo in Q2 and Q3 2020. Gas fuels (1,000 tonnes) 11 10 17 11 10 17 - - 0 Small increase in gas fuel consumption is mainly due to improved reporting in terminals. Other fuels (1,000 tonnes) – excluding biofuel 120 130 118 120 130 118 - - 0 Decrease is due to among others a change to reporting based on actual invoices rather than office standards. This is partly offset by an increase in air charter. Biofuels (1,000 tonnes) 32 8 - 32 8 - - - - Increase in consumption of biofuels for the Maersk ECO Delivery shipping service and for use in terminals. Renewable technologies (1,000 MWh) 66 - - 66 - - - - - Consumption of renewable energy is reported separately for the first time in 2020. This is made possible due to improved reporting in terminals. Electricity (1,000 MWh) 664 656 732 664 656 730 - - 2 Increase is mainly due to improved reporting based on actual invoices rather than office standards, offset by reductions due to reduced vessel calls and working from home. Energy consumption (total, TJ) 432,767 463,815 498,209 432,767 463,815 497,233 - - 976 Decrease in total energy consumption is due to the decrease in fuel oil consumption.

Greenhouse gas (GHG) emissions (1,000 tonnes CO2 eq) Greenhouse gas (GHG) emissions Direct GHG emissions (scope 1 GHG Protocol) 33,902 36,204 38,826 33,902 36,204 38,749 - - 77 96% of our scope 1 emissions come from the operations of our fleet. Decrease is due to improved efficiency and our strategic focus on decarbonisation. Indirect GHG emissions (scope 2 GHG Protocol) – location-based 305 287 339 305 287 338 - - 1 Increase in indirect GHG emissions is due to increase in electricity consumption. Indirect GHG emissions (scope 2 GHG Protocol) – marked-based 337 - - 337 - - - - - Indirect GHG emissions are reported using the market-based method, in accordance with the GHG Protocol for the first time in 2020. Value chain GHG emissions (scope 3 GHG protocol) 19,017 - - 19,017 - - - - - Value chain GHG emissions are reported in accordance with the GHG Protocol for the first time in 2020. See p. 22 for more information.

Relative CO2 reduction (percentage vs 2008 baseline) 46.3% 44.9% 42.1% 46.3% 44.9% 42.1% - - - Improvement in operational energy efficiency has been achieved through both technical and operational improvement initiatives Other air emissions Other air emissions SOx is produced from the combustion of heavy fuel oil. Decrease in SOx emissions is due to the shift to low sulphur fuel and the use of scrubbers with regards to IMO2020, SOx (1,000 tonnes) 102 569 615 102 569 615 - - 0 as well as a decrease in fuel oil consumption. NOx (1,000 tonnes) 824 888 955 824 888 953 - - 2 NOx is produced from the reaction of nitrogen and oxygen gases in the air during combustion of fuels. Decrease in NOx emissions is due to the decrease in fuel oil consumption. Other resource consumption Other resource consumption Waste (1,000 tonnes) 283 299 340 283 299 338 - - 2 Decrease is mainly due to an adjustment in vessel waste reporting and ongoing projects for reducing hazardous waste. Water (1,000 m3) 1,736 1,696 2,256 1,736 1,696 2,244 - - 12 Increase is due to improved reporting and change to reporting based on actual invoices rather than office standards, offset by reductions due to working from home. Spills (hydrocarbon) Spills (hydrocarbon) >10 m3 (number of spills) 2 0 0 2 0 0 - - 0 Two uncontained spills above the threshold of >10 m³. One spill to land in the Maasvlakte 2 Terminal (19 m3), and another spill to water in MSS resulting from mud spill (20 m³) Economic performance (USD million) Economic performance Revenue 39,740 38,890 39,257 39,740 38,890 39,257 - 308 1,977 Financial data is taken from the audited 2020 Annual Report of A.P. Møller - Mærsk A/S. Note 2018 is presented as if IFRS 16 had been implemented in 2018, EBITDA (profit/loss before depreciation, etc.) 8,226 5,712 4,998 8,226 5,712 4,998 - N/A N/A for comparison purposes CAPEX 1,322 2,035 3,219 1,322 2,035 3,219 - N/A N/A The annual accounts and independent auditors’ report can be found at http://investor.maersk.com/ Tax for the year 407 458 398 407 458 398 - 0 247

Financial scope. Scope is limited to shipping operations. Relative CO reduction is measured using EEOI Operational scope. (Energy Efficiency Operational Indicator) as defined by IMO in MEPC.1/Circ.684 and

Data from other sources than the financial and operational scoped data. calculated as g CO2/(Ton x Nm). In 2020 we improved the underlying methodology, resulting Data for 2019 and 2018 is restated to include Maersk Supply Service. in a more exact calculation of historical performance. The data for 2019 and 2018 are Data from other sources, calculations based on analysis by external provider, restated to align with the updated methodology. and not in scope for PwC's review of this Report. See the Sustainability Accounting Principles on p. 46-47 for more information on data definitions and scope. 46 A.P. Moller - Maersk Sustainability Report 2020 Data and assurance Sustainability accounting principles Introduction Strategic sustainability priorities Responding to a pandemic Responsible business practices Progress overview Data and assurance 47

We report on relative CO₂ emissions reduction sea/truck/ rail). This means that e.g. trucking only injury which results in the complete loss, or using EEOI (Energy Efficiency Operational Indicator) includes carrier haulage. Category 11 - use of permanent loss of use, of any member or part Sustainability accounting principles methodology. EEOI is defined by IMO in MEPC.1/ sold products, which is reported based on sale of of the body, or any impairment of functions of Circ.684 and is calculated as gCO₂/(Ton cargo x Nm). used containers and vessel recycling. The method parts of the body, regardless of any pre-existing includes splitting the product into waste categories disability of the injured member or impaired In practice we calculate EEOI on voyage level and and waste treatment type based on category body function. Permanent Total Disability aggregate it in the following way: and region. (PTD) is any work injury which incapacitates When preparing our scope 3 emissions in the an employee permanently and results in Reporting framework Financial scope is applied for all other are excluded. Using financial consolidation (g CO2 voy1 + g CO2 voy2 + g CO2 voy3) material categories listed above, we have provided termination of employment on medical grounds. A.P. Moller - Maersk does not apply a specific sustainability data, and is defined as follows: principles allows us to compare sustainability ((Ton cargo x Nm)voy 1+ (Ton cargo x Nm)voy 2+ (Ton cargo x Nm)voy 3) procurement and accounting data to an external Excluded from LTIs are suicide or attempted overall reporting framework but uses the Global • Owned assets and leased in assets that indicators directly with financial data, thereby service provider, which has then applied our data suicide, criminal or terrorist activity, and Reporting Initiative’s (GRI) G4 Sustainability A.P. Moller - Maersk uses: A.P. Moller - Maersk providing context for our performance. in their model for calculating related carbon incidents which occur off the ship but where the The data sources are: Reporting Guidelines as guidance to determine is liable for consumption, emissions and other emissions. The scope 3 emissions data returned to consequences appear onboard at some later time. Data categories and accuracy 1. g CO₂ – Based on fuel consumption, from report content and quality in terms of materiality, environmental elements us by the external service provider have then been • Energy consumption encompasses fuel oil, gas A.P. Moller - Maersk has defined two categories of departure voyage 1, to departure voyage 2, stakeholder inclusiveness, sustainability context, • Owned assets that are leased out: entered into our reporting. The scope 3 emissions fuels, other fuels (diesel, gasoline, kerosene, data: documented and probable data: multiplied with relevant CO₂ factor (3.114 for completeness, balance, comparability, accuracy, A.P. Moller - Maersk is not liable for consumption, stated have not been subject to review by our and heating oil), and biofuel as well as the • Documented data comprises: our employees HFO, 3.206 for MDO). timeliness, clarity and reliability. emissions and other environmental elements – assurance provider PwC. consumption of electricity / district heating and (FTE), energy consumption, air emissions, 2. Ton cargo – Calculated via draft and the lessee is. For categories 1 and 2 data for Maersk Supply renewable energy. Reporting period transport work (for EEOI), and financial data displacement tables, subtracting vessel weight Service is not included due to data compatibility. • Renewable technologies, from which energy is Our reporting covers the period from 1 January to Technical management of an asset on behalf of • Probable data comprises: safety (fatalities and and ballast water and fuel stock. Category 4 excludes when customers arrange their derived to use for electricity or heating, include 31 December 2020. third parties does not change the responsibility. LTIf), waste, water, spills, gender and nationality. 3. Nm – GPS distance from departure voyage 1, own transport as no data in this case is available solar panels, wind turbines, biomass and batteries. Thus, consumption and emissions still belong to to departure voyage 2. for Maersk to reasonably accurately calculate • Direct GHG (scope 1) is the sum of all six Kyoto Controls the asset owner/lessee who uses the asset. Documented data (financial and non-financial) is scope 3 impact. gasses converted to CO₂ equivalents. Kyoto While data regarding number of employees, With regard to greenhouse gases, the reporting valid and complete and is essentially at the same In 2020, the baseline for EEOI has been gasses comprise: CO₂, CH₄, and N₂O, which women in leadership, gender and target must be in accordance with the GHG Protocol: quality level. recalculated to include missing data points for Definitions: are calculated based on fuel consumption/ nationalities are generated from our HR systems, direct emissions from own assets (Scope 1), indirect The reliability of probable data is somewhat historical performance. • Number of employees is the average number of combustion, and HFC, SF₆, NF₃ and HCFC, which data regarding accidents, fatalities, exposure hours, emissions from purchased electricity and district lower but is still provided to the best of the From 2020, scope 2 emissions are reported in full-time equivalents (FTEs). FTEs are calculated are based on direct consumption. energy consumption, waste, water and spills are heating (Scope 2), and value chain emissions across management’s knowledge. It is based on data two ways: location-based and market-based. For based on the total number of compensable • Indirect GHG (scope 2) is the CO₂ equivalents’ reported through our consolidated reporting tool material categories (Scope 3). received and controlled in the consolidated the latter, market-based factors are used for EU hours (days) in a work year compared to the converted sum of CO₂, CH₄ and N₂O, calculated based on submitted data from all reporting Diversity and inclusion data includes all brands, reporting tool, but with an inherent risk of being countries and the U.S. while IEA factors are used number of hours (days) in a ‘norm’ work year. on consumed electricity and district heating entities within A.P. Moller - Maersk. This tool is global service centres, corporate functions, and incomplete. for other countries. Excluded are employees on unpaid leave, bought from a third party. Scope 2 emissions are validated via internal audit, with manuals and Boards. Joint ventures are out of scope. Gender Financially scoped probable data (water From 2020, scope 3 emissions are reported in contractors and temporary staff. reported using location-based emission factors, online training in place. A set of generally accepted and nationality data, which includes women and waste) must always be defendable, and accordance with the GHG Protocol. Of the 15 • Headcounts are defined as regular employees and using market-based factors (see 'Emissions accounting principles for sustainability has been in leadership, gender – female/total, target if assumptions are necessary due to lack of scope 3 categories in the Protocol only nine not on leave, on paid leave and on unpaid leave. conversions and calculations'). established, which defines the reporting rules, nationalities in leadership, target nationalities/ documentation, then the assumptions made categories are deemed relevant for our business Excluded are contractors and temporary staff. • Value chain GHG (scope 3) is calculated on processes and responsibilities. A controlling total, is reported by headcount and extracted must be verifiable. If no evidence exists, then activities. The excluded categories, Cat. 8 upstream • Women in leadership is the percentage of procurement and accounting data and covers all guideline has been distributed to help secure the from SAP HR along with manual inputs of data assumptions based on the probable data must leased assets, Cat. 9 downstream transportation women in level 5, 6, 7, 8 and 9, corresponding to six main greenhouse gases. businesses' own assurance of submitted data, not recorded in SAP HR. be made in writing and shall be verified by the and distribution, Cat. 10 processing of sold before sign-off by the respective CEOs and CFOs. reviewer, whereby the data are always defendable. products, Cat. 13 downstream leased assets, Senior Managers, Leaders, Senior Leaders, and • Other air emissions include SOx and NOx, which Furthermore, all businesses are obliged to provide Comparability Operationally scoped probable data (safety and Cat. 14 franchises and Cat 15 investment, were Executives, compared to total headcount of the both are calculated based on fuels consumed explanation sheets on significant data developments. In line with the business strategy and organizational spills data), along with gender and nationality, has determined not to have significant relevance same levels. multiplied by generally accepted conversion The data reported under financial scope is included in integration of A.P. Moller - Maersk, we report on the weakest data quality, as it is not possible to to Maersk’s business model. From a reporting • Gender – female over total is the percentage of factors for the respective fuels. In case of the framework used to assure risks and controls for sustainability performance as One Maersk. For ensure validity and completeness. perspective we have furthermore decided to apply women employed based on headcount. scrubber use, SOx emissions are reported based financial reporting (Danish Statements Act §107b, Maersk Drilling and Maersk Oil sustainability data a materiality threshold of 1% of the total scope 3 • Target nationalities in leadership is the on Clean Cargo guidelines, where SOx output is section 1, no 6). is not included in the year of separation from A.P. Emission conversions and calculations emissions which excludes the following categories percentage of leaders with non-high-income assumed to be maximum for the operating area Moller - Maersk, while economic performance GHG emissions are calculated indirectly via default from reporting: Cat 5. waste generated in operations, OECD nationalities in level 5, 6, 7, 8 and 9, in which the vessel spends 80% of time. Scope data is included up to the data of the demerger/ conversion factors for energy consumption and Cat. 6 business travel, Cat. 7 employee commuting, corresponding to Senior Managers, Leaders, • Amount of waste is the sum of all waste Operational scope is applied for safety and sale. Acquired and merged entities are excluded other GHG gases. and Cat. 12 end of life treatment of sold products. Senior Leaders, and Executives, compared to types generated. spills data when A.P. Moller - Maersk or one of from sustainability reporting until the following Scope 3 reporting thus comprises five remaining total headcount of the same levels. • Amount of water is the sum of all water Primary schemes used are API (updated 2009), its subsidiaries has the governing authority and reporting year. categories: Cat. 1 - purchased goods and services, • Fatalities is the headcount number of accidents consumed, excluding ballast water and water responsibility for health, safety and environmental DEFRA (updated 2020) and IEA (updated 2020). which is reported based on procurement data leading to the death of the employee. for re-injection. management of the people, processes and Consolidation The principles for choosing among the schemes for and includes OPEX goods. Cat. 2 - capital goods, • LTIf (Lost-Time Injury frequency) measures • Uncontained spills over 10 m3 are defined as facility – either directly or indirectly via third-party For operational scope, 100% of the data reported default conversion factors are: which is reported based on procurement data the number of lost-time injuries per million any type of spills of hydrocarbon liquids greater contractual arrangements. This approach excludes from the operated assets is included irrespective • Newest schemes are preferred, as are and includes our capital investments such as e.g. exposure hours. Lost-time injuries (LTI) is the than ten m³, resulting from any unintended, data from assets that are partly owned by of percentage ownership. Financial scope uses internationally recognised generic schemes retrofit of vessels and dry docking. We include sum of fatalities, permanent total disability irreversible release associated with current A.P. Moller - Maersk but operated by another our financial consolidation methodology; data • A scheme must always be used in full. the full scope 3 impact the first year of a CAPEX (PTD), permanent partial disability (PDD) and operations. company. Mobile assets are included when is collected per legal entity per activity, and the Thus, no combined schemes are allowed unless investment. Category 3 - fuel and energy related lost work day case (LWC). A Lost Workday Case • To secure completeness, office standards have operated by A.P. Moller - Maersk. For vessels, the figures are consolidated line-by-line. Subsidiaries specific elements were not included activities, which is reported based on actual fuel (LWC) is any work-related injury, other than been developed based on 2020 data, which International Safety Management Code Document in which A.P. Moller - Maersk has full control are in the primary scheme procured and consumed. Category 4 - upstream a fatal injury, which results in a person being can be used for offices with no production or of Compliance must be held by A.P. Moller - Maersk included 100%. Joint ventures and associated • Specific industry schemes can be included when transportation and distribution, which is reported unfit for work on any day or shift after the warehousing, etc. These standards are only to to include the data. companies and other companies, in which not in conflict with the above. based on procurement data multiplied by relevant day of occurrence of the occupational injury. be used if other more accurate information is A.P. Moller - Maersk does not have control, emission factor per transportation category (air/ Permanent Partial Disability (PDD) is any work not available. 48 A.P. Moller - Maersk Sustainability Report 2020 Data and assurance Independent assurance report

Independent assurance report Stay up to date

To the stakeholders of A.P. Møller - Mærsk A/S We value your feedback

We welcome any questions, comments or Editor A. P. Møller - Mærsk A/S engaged us to provide limited accordingly maintains a comprehensive system of in the 2020 A.P. Møller - Mærsk A/S Sustainability suggestions you might have to this report Lene Bjørn Serpa assurance on the Performance data stated on page quality control including documented policies and Report and, in doing so, considered whether the other and our performance. Please send your Project manager 44 in the Sustainability Report of A.P. Møller - Mærsk procedures regarding compliance with ethical sustainability information is materially inconsistent feedback to: A/S for the period January 1 – 31 December 2020 (the requirements, professional standards and applicable with the Performance data or our knowledge obtained Julia Hoffmeister "Performance data"). legal and regulatory requirements. Our work was carried in the review or otherwise appear to be materially A.P. Moller - Maersk Reporting coordinator out by an independent multidisciplinary team with misstated. We have nothing to report in this regard. Esplanaden 50 Angelika Toh Our conclusion experience in sustainability reporting and assurance. 1098 Copenhagen K Based on the procedures we performed and the Management’s responsibilities Denmark Writer Additional COP content can be found on evidence we obtained, nothing came to our attention Understanding reporting and Management of A.P. Møller - Mærsk A/S is Attn: Sustainability Eva Harpøth Skjoldborg our website: https://www.maersk.com/about/ that causes us not to believe that the Performance measurement methodologies responsible for: sustainability data in the A.P. Møller - Mærsk A/S Sustainability Report The Performance data need to be read and understood • Designing, implementing and maintaining internal You can also send an email to: Creative editor are free of material misstatements and prepared, in all together with the Sustainability Accounting Principles control over information relevant to the preparation [email protected] Erickson Enriquez material respects, in accordance with the Sustainability on pages 46-47, which Management are solely of the Performance data and information in the Accounting Principles as stated on pages 46-47 responsible for selecting and applying. The absence Sustainability Report that are free from material https://www.maersk.com/about/sustainability Design and layout SPRING Production (the *Sustainability Accounting Principles”). of a significant body of established practice on which misstatement, whether due to fraud or error; Print This conclusion is to be read in the context of what to draw to evaluate and measure non-financial • Establishing objective Sustainability Accounting Printed in Denmark in 2021 by Photographs we state in the remainder of our report. information allows for different, but acceptable, Principles for preparing Performance data; and

Rosendahls, an environmentally certified 5 Cover photo: Dean Martindale 7 0 4 5 1 4 measurement techniques and can affect comparability • Measuring and reporting the Performance 0 Pr er inted m att printing agency, on Arctic Matt. Rosendahls What we are assuring between entities and over time. data in the Sustainability Report based on the p. 12: GettyImages The scope of our work was limited to assurance over Sustainability Accounting Principles. p. 16: Tom Lindboe Performance data as stated on page 44 in the Work performed p. 23: Nick Souza A.P. Møller - Mærsk A/S Sustainability Report 2020. We are required to plan and perform our work in Our responsibility p. 25, 28: GRUVPIX Inc. Scope 3 carbon emissions have not been in scope for order to consider the risk of material misstatement of We are responsible for: p. 34: Brian Doyle our review of the 2020 Performance data. the Performance data. In doing so and based on our • Planning and performing the engagement to obtain professional judgement, we: limited assurance about whether the Performance Professional standards applied • Conducted interviews with management at data for the period 1 January – 31 December 2020 and level of assurance corporate and Brand level responsible for the are free from material misstatements and are Overview of brands that are part of A.P. Moller - Maersk We performed a limited assurance engagement in sustainability strategy, management and reporting; prepared, in all material respects, in accordance accordance with International Standard on Assurance • Performed an assessment of materiality and the with the Sustainability Accounting Principles; Engagements 3000 (Revised) ‘Assurance Engagements selection of topics for the Sustainability Report and • Forming an independent conclusion, based on other than Audits and Reviews of Historical Financial comparison to the results of a media search; the procedures performed and the evidence Information’ and, in respect of the greenhouse gas • Read and evaluated reporting guidelines and obtained; and emissions, in accordance with International Standard internal control procedures at corporate level and • Reporting our conclusion to the stakeholders of on Assurance Engagements 3410 “Assurance reporting entity level regarding the Performance A.P. Møller - Mærsk A/S. engagements on greenhouse gas statements”. data to be consolidated in the 2020 Sustainability Greenhouse Gas quantification is subject to inherent Report; uncertainty because of incomplete scientific • Conducted analytical review of the data and trend knowledge used to determine emissions factors and explanations submitted by all reporting entities to the values needed to combine emissions of different A.P. Moller – Maersk Accounting & Controlling for gases. A limited assurance engagement is substantially consolidation; and Copenhagen, 10 February 2021 less in scope than a reasonable assurance engagement • Evaluated evidence. in relation to both the risk assessment procedures, PricewaterhouseCoopers including an understanding of internal control, and Statement on other sustainability information Statsautoriseret Revisionspartnerselskab the procedures performed in response to the assessed mentioned in the report CVR no. 3377 1231 risks; consequently, the level of assurance obtained in Management of A.P. Møller - Mærsk A/S is responsible a limited assurance engagement is substantially lower for other sustainability information communicated in than the assurance that would have been obtained had the 2020 Sustainability report. The other sustainability a reasonable assurance engagement been performed. information on pages 4-43 of the Sustainability report comprises the sections Introduction, Strategic Mogens Nørgaard Mogensen News and Reporting Our independence and quality control sustainability priorities, Responding to a pandemic, State Authorised Public Accountant We have complied with the Code of Ethics for Responsible business practices and Progress overview mne21404 Professional Accountants issued by the International regarding A.P. Møller - Mærsk A/S’ 2020 sustainability Online Engage with us Ethics Standards Board for Accountants, which includes approach, activities and results. Maersk.com Linkedin.com/company/479080/ Facebook.com/Maersk independence and other ethical requirements founded Our conclusion on the Performance data on page on fundamental principles of integrity, objectivity, 44 does not cover other sustainability information and https://www.maersk.com/press Twitter.com/Maersk Youtube.com/Maersk professional competence and due care, confidentiality we do not express an assurance conclusion thereon. Lars Baungaard Investor.maersk.com and professional behaviour. The firm applies In connection with our review of the Performance State Authorised Public Accountant instagram.com/maersk_official International Standard on Quality Control 1 and data, we read the other sustainability information Mne23331 https://www.maersk.com/about/sustainability