2020 Sustainability Report

Delivering energy for the world today, and finding solutions for tomorrow 2 BW Sustainability Report 2020 Contents 3

This report provides an overview of BW Group’s activities relating to environmental, social, and governance (ESG) matters. It supplements the reports published by BW Group affiliated companies.

While BW Group companies report similar metrics, each company’s results must be evaluated in the context of its respective segment, as vessel size, voyage length, and Chairman’s message 4 duration in port all vary considerably. Business overview 6

Environment • Improving asset footprint 10 • Investing in sustainable technologies 21 Social • Zero Harm 26 • Workforce diversity and inclusion 28 • BW Wellness Programme 32 • Community support 33 Governance • Corporate governance 36 • Industry participation 38 Appendix • ESG data overview 44 4 BW Sustainability Report 2020 5 Chairman’s message

Sustainability is a growing focus area for all companies, and with good reason.

Corporate sustainability was once predominantly about financial sustainability – to remain viable as a business. This is still relevant, with the average life of an S&P500 company now below 20 years (compared to 60 years in the 1950s).

Over time, the concept of CSR developed (Corporate Social Responsibility). Although the idea had been around for a while, it took hold in the 1990s and 2000s with the premise that companies should actively contribute to the communities in which they operate.

A natural evolution is ESG (Environmental, Social and Governance matters). Sustainable investing was already trending upwards before Covid, but took a decisive turn in 2020 with a significant increase in capital flows towards companies that score well on ESG dimensions.

BW Group has been working on all these areas for a long time. We act in a way that protects our financial and reputational standing, so that we can continue to provide our services long into the future. One of our values is “enduring”, and this means that we don’t seek short-term gain at the expense of the long-term interests of our stakeholders. The UN Sustainable Development Goals provide some guide rails for this.

We contribute to our communities. This is partly through donations such as those outlined in this report, which were ramped up during the pandemic. More importantly, we contribute through our work and services – producing energy; shipping it all over the world; and enabling power through floating terminals in countries like Pakistan, Egypt, El Salvador, Brazil and the Philippines. Bringing energy to developing nations has a positive impact far beyond anything a donation cheque can do.

We don't stop there. In keeping with our responsibility to mitigate the effects of climate change, we are actively investing in decarbonisation. In part, this means reducing the environmental impact of our existing assets through retrofits and operational improvements. In part it is about investing in new areas that facilitate the energy transition. And it is about collaborating with others to effect change. We are proud to be founding members of the Maritime Decarbonisation Centre in Singapore, and will work through the centre to accelerate progress towards our industry’s environmental goals.

ESG incorporates other areas such as diversity and inclusion, good governance, and attention to the health and safety of our team members. We are pushing forwards here also, recognizing that a sustainable company – in all senses of the word – is founded on a strong sense of responsibility to all our stakeholders. In this report you will find lots of examples and statistics. Underpinning it all is a belief in doing the right thing.

Andreas Sohmen-Pao Chairman, BW Group 6 BW Sustainability Report 2020 7 Business overview Our presence 9000 10 employees BW Group offices worldwide

BW Group is a leading global maritime company involved 420 in shipping, floating infrastructure, deepwater oil and gas owned and controlled vessels production, and new sustainable industries.

BW affiliated companies

Vision Best on Water

Mission Delivering energy for

the world today, and finding BW LNG BW LPG BW Epic Kosan BW Offshore A leading fleet of Liquefied The world’s largest fleet of Leader in last mile delivery of Global provider of floating solutions for tomorrow Natural Gas (LNG) vessels and Liquefied Petroleum Gas (LPG) LPG and other speciality gases production services to the oil and Floating Gas Terminals (FSRUs) carriers and petrochemicals gas industry

Values Collaborative Ambitious • We engage our customers to find • We recognise that to be our solutions together customers’ first choice we must be responsive and excel in what we do • We interact positively and constructively with our colleagues • We challenge our own performance and goals, as individuals and as teams • We are open and authentic in everything we do • We give and we value honest and respectful feedback BW Energy BW Dry Cargo Hafnia Navigator Gas Owns and develops proven oil A fleet of modern dry bulk carriers World’s leading product tanker World’s largest fleet of handysize and gas fields company with over 180 vessels liquefied ethylene and gas carriers Reliable Enduring • We deliver on our promises to • We serve our customers with customers and colleagues a long-term perspective • We recognise that • We persevere based on accountability and reliability our commitment to make are essential for success a positive impact • We act with integrity and • We are attuned to the changes around uphold high ethical standards us, and adapt to stay relevant

BW Solar BW Ideol Cadeler Corvus Developer of solar power and Leader in floating foundations for Wind turbine installation vessels Leading supplier of energy energy storage projects offshore wind for offshore wind construction, storage solutions for the maritime maintenance and decommissioning industry Environment 10 BW Sustainability Report 2020 Environment 11 Improving asset footprint

Energy Efficiency Operational Index (EEOI) for vessels >10,000 DWT <10,000 DWT

The graph below illustrates the Energy Efficiency Operational Index (EEOI) for each of our shipping businesses where we are the major shareholder. The fleet has improved on this dimension.

From 2019 to 2020, we BW’s strategy g CO₂/t-nm g CO₂/t-nm reduced the average 30 100 ↓2.1% emissions of each vessel: To ensure we live up to our vision and mission, 90 25 ↓8.0% we must continue to deliver the energy the world 80 70 needs today while working on solutions for the 20 ↓2.5% % future. We are doing this through a dual focus 60 15 on reducing the environmental impact of our 15 50 average CO₂ emissions ↓7.6% current business, and investing in renewable 40 10 30 technologies that support a circular and ↓18.3% % 20 sustainable economy. 5 11 10 average NO×emissions 25.51 23.50 17.60 17.10 11.80 10.90 7.75 6.33 90.34 88.40 We have decreased average emissions per 0 0 BW LNG BW LPG Hafnia BW Dry Cargo BW Epic Kosan vessel across our businesses. We are on track 72,781 dwt 49,999 dwt 39,067 dwt 61,800 dwt 3,103 dwt % — — — – — to meet the IMO’s environmental goal of a 40% 95,978 dwt 58,899 dwt 115,000 dwt 185,200 dwt 9,127 dwt 80 reduction in carbon intensity by 2030 and a average SO× emissions 50% reduction in total annual GHG emissions by Min Vessel Size (2020) 2019 2020 — 2050, compared to 2008 levels. Max Vessel Size (2020)

Annual Efficiency Ratio (AER) for vessels >10,000 DWT <10,000 DWT The graph below illustrates the Annual Efficiency Ratio (AER) for each business where we are the major shareholder. The fleet has improved on this dimension.

g CO₂/DWT-nm g CO₂/DWT-nm

10 30 ↓11.7% 9 25 ↓3.0% 8 ↓1.3%

7 20 ↓2.2% 6

5 15

4 ↓19.5% 10 3

2 5 1 9.92 8.76 7.60 7.50 5.83 5.70 4.00 3.22 23.91 23.20 0 0 BW LNG BW LPG Hafnia BW Dry Cargo BW Epic Kosan 72,781 dwt 49,999 dwt 39,067 dwt 61,800 dwt 3,103 dwt — — — — — 95,978 dwt 58,899 dwt 115,000 dwt 185,200 dwt 9,127 dwt

Min Vessel Size (2020) 2019 2020 — Max Vessel Size (2020) 12 BW Sustainability Report 2020 Environment 13 Optimising operations

Regular maintenance and anti-fouling paints Waste management % We continuously improve our existing fleet BW places great emphasis on the responsible and its footprint. These improvements include disposal of waste onboard to avoid harming reduced fuel consumption via anti-fouling paint, the marine environment. We do this by creating 76 engine management, waste heat recovery, and vessel-specific water and waste management average reduction in total SO× emissions fuel-saving devices and technologies. plans, conducting drills to prepare for unplanned of all business units events, and encouraging suggestions from our Route and Speed Optimisation employees on methods to further reduce our footprint. In addition to regular maintenance of our existing fleet, BW optimises vessel efficiency by ensuring Each of our vessels practises a class-approved our ships travel on the most efficient routes at the Ballast Water Management Plan that ensures most efficient speeds. ballast water and sediment from vessels are handled in a safe and environmentally-friendly Through harnessing technology and meteo- manner, in compliance with the IMO Ballast Water rological data to conduct weather routing Management Convention. In Focus and regular voyage prognoses, BW ensures the scheduling of our fleet is effective and Recycling of ships In 2020, across Hafnia’s owned fleet, carbon intensity as measured by Annual Efficiency accurate. In 2020, our weather routing capabil- Ratio (“AER”) was 5.70 gms/T-NM, 5.6% below the present IMO baseline. Hafnia has set a ities were enhanced by the addition of the Total At the end of a vessel’s commercially viable life, goal to reach IMO’s 2030 target by 2028, by reducing the current fleet’s carbon intensity to Fuel Oil Consumption (TFOC) system. The we have a responsibility to ensure it is recycled 4.47 gms/T-NM. Standard vessel optimisation efforts will be supplemented with additional system provides an algorithmic calculation and responsibly, in a manner that minimises impact to initiatives such as dry dockings and fleet renewals to reach the goal. calibration of equipment onboard to optimise the environment and to human health. BW takes speed and routes. this responsibility seriously and closely manages and monitors the entire process. BW also endeavours to arrive in ports just in time, Hafnia’s Status with IMO’s CO₂ Intensity Targets to avoid rushing to arrive followed by near-shore First, we select only ship recycling facilities that idling, and resultant emissions. are ISO 30000 certified, approved by a class grams/T-NM society, and in full compliance with the Hong 9 7.61 Kong Convention. When possible, we pre-in- spect the facility and ensure a BW representative 8 6.20 6.04 on-site with stop-work authorisation throughout 7 5.73 5.57 the demolition process. To support the recycling 6 4.78 4.47 % facility, BW prepares an Inventory of Hazardous

5 Materials document (IHM) and jointly formulates a plan for the safe and environmentally sound 4 10 potential fuel savings per voyage as a result of the decommissioning of the vessel. SmartShip fuel-saving module 3

1 5.83 5.70 4.47

2008 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Hafnia’s Actual Hafnia Projected IMO Target 14 BW Sustainability Report 2020 Environment 15 Retrofitting existing assets

BW LPG, the world’s largest owner and operator In addition to significant improvement in total of Very Large Gas Carriers (VLGCs), has voyage fuel economics, other efficiencies include committed 15 of its VLGCs for retrofitting with easy storage and faster refueling. Bunkering for LPG dual-fuel propulsion engines. the retrofitted vessels can be done with reduced spill risk, either directly at the load terminal or The new engines are the result of the team's via ship-to-ship transfer from a smaller LPG When counting total collaboration with key engine manufacturers to carrier. The dual-fuel capability also provides fuel use LPG, a cleaner-burning fuel, for propulsion. flexibility, which translates to full redundancy. emissions, a new vessel Dual-fuel allows for uninterrupted operations, and represents about 70,000 With an investment of over USD 100 million, buffers fuel price fluctuations. these LPG dual-fuel engines will reduce emission tonnes of CO₂ in the of Sulfur Oxide (↓97%), Particulate Matter (↓90%), While building new ships with LPG propulsion can Carbon Dioxide (↓25%), and Nitrous Oxide (↓20%). be beneficial, retrofitting has a much lower carbon materials and building It means that vessels powered by LPG will be in cost. The total emissions from retrofitting is about process, compared to 2,000 full compliance with current and future Sulfur 2,000 tonnes of CO₂ compared to 70,000 tonnes Oxide (SO×) emission requirements, including for materials and the building process for a new tonnes for retrofitting for Emission Control Areas (ECAs) and Sulfur vessel. Emission Control Areas (SECAs). LPG propulsion also offers efficiency gains on many fronts. Output efficiencies will improve by about 11% with LPG when compared with compliant fuels.

LPG Propulsion Retrofitting exisiting assets rather than scrapping and building new vessels wherever possible LPG dual-fuel engines will reduce emission of

Sulfur oxides by Carbon dioxide by 97% 25%

Particulate matter by Nitrous oxides by 90% 20% 16 BW Sustainability Report 2020 Environment 17 Designing fuel-efficient vessels

When retrofitting and optimising operations Improving hull shape and methane slip are not enough, we build the most efficient and modern vessels we can. These measures help BW’s newest generation ME-GI LNG carriers move BW towards decarbonisation. are equipped with the latest technology to address environmental issues.

Our latest vessels have an updated hull shape and engine. This hull is expected to reduce fuel consumption by an additional 4% on a roundtrip voyage and 6% on a laden passage. This latest-generation design gives approximately 5.5% higher efficiency. Specific features The vessels will also be fitted with the latest ME-GI engines that have much lower methane slip than other LNG vessels. The engine emits 2.71 tons of CO₂ equivalent per hour, contributing considerably less to global warming Mewis ducts Propeller boss cap fins Increased propeller Rendering of the 6S50ME-LGIP type engine before propellers diameter than vessels with X-DF propulsion.

Fuel and emissions savings Latest vessels with updated hull shape save

Variable frequency Fixed online PMI system De-rated main engines drive for big fans, pumps for optimising main for improved fuel efficiency and steering gear engine fuel consumption %

Fuel6 savings from laden voyage

Grey water modification Waste heat recovery unit Twisted leading edge Advanced hull anti-fouling paint for generators rudder bulb

Ballast water Advanced hull Advanced hull treatment systems design, hydro-dynamic, anti-fouling paint computational fluid dynamics optimisation 18 BW Sustainability Report 2020 Environment 19 Safeguarding the environment with technology

Use of LNG as a marine LNG Propulsion fuel typically results in In October 2020, Hafnia ordered two % Aframax-type LR2 vessels equipped with 97 Liquefied Natural Gas (LNG) propulsion. Lower SO× and particulate matter Although not a zero carbon fuel, LNG helps the shipping industry towards its goal of decarbonisation, not least as new fuels like % ammonia and hydrogen are not expected to 85 be commercially viable for quite some time. Lower NO× Compared to ships powered by traditional fuel oil, LNG as a marine fuel typically results in 97% lower sulphur oxide emissions, 97% lower particulate % matter, 85% lower nitrogen oxide, and up to 20% 20 lower overall GHG emissions. Lower overall GHG emissions The GHG emissions of vessels designed with the most efficient LNG propulsion technologies available will be 5,000 tons per year lower than conventional tankers. They will also be approximately 30% lower when compared to Intelligent analysis Real-time reports from Alpha Ori standard dual-fuel LNG vessels—meaning they exceed “Phase 3” Energy Efficiency Design Index (EEDI) requirements. SMARTShip with Alpha Ori

Built by Guangzhou Shipyard International (GSI), We are partnering with Alpha Ori to optimise our performance against benchmarks and historical the vessels will be taken by Total on long-term vessels' fuel efficiency, monitor our hull efficiency, data. Given a specific load and hull condition, time charters upon delivery in 2023. These and detect potential failures early using their users can check fuel consumption at various dual-fuel vessels incorporate the design traits SMARTShip system. speeds and clean the hull based on the app's we believe are necessary for ships of the future. recommendations. Featuring an LNG fuel capacity of 3,600m3, the Alpha Ori's SMARTShip system contains a ships will have a range of 13,500 nautical miles patented fuel-saving module that uses artificial SMARTShip also encompasses other machine when sailing on LNG at 14.5 knots. intelligence (AI) and multiple variables (e.g. vessel learning and AI applications such as anomaly speed, design data) to optimise the total fuel oil detection. Its AssetAI module detects potential The high-pressure dual-fuel LNG engines consumption (TFOC) over a voyage. By providing failure early, prompting maintenance and incorporate a flexible design that not only ensures the commercial team and ship master with preventing equipment breakdowns. Through close to zero methane slip but also makes them recommended speeds between waypoints in real supporting each vessel's reliable, safe and adaptable to the zero-emission fuels of the future time, the fuel-saving module can reduce TFOC per cost-efficient operations, AssetAI maximises each (such as ammonia or synthetic methanol). The voyage by 6% to 10%. The resulting decrease in vessels' useful life. vessels will come with a state-of-the-art fuel emissions is also calculated and recorded by the gas supply system that has full redundancy on module, allowing the Master to navigate through As the sum of the above modules, SMARTShip all supply systems and which can handle boil-off ECA zones with regulatory compliance. allows us to consider new operational initiatives, gas from the LNG tanks under any condition. The assess their effectiveness, and ultimately make auxiliary engines, gensets and boilers will be able Another feature of the SMARTShip system is the smarter decisions that reduce our CO₂ emissions to run on multiple fuel types. Automated Hull Performance Monitoring (AHPM) and improve our efficiency. app, which constantly assesses vessels' hull 20 BW Sustainability Report 2020 Environment 21 Investing in sustainable technologies

The Wavex system provides accurate Miros Wavex Technology BW Solar Corvus and reliable wave parameters, including 2D-spectrum, surface current Headquartered in Canada, BW Solar focuses on Headquartered in Norway, Corvus Energy is magnitude and direction, as well as Miros Wavex Technology delivers detailed, the development of solar power generation and the world’s leading supplier of energy storage speed through water calculations. All these output parameters are key to: real-time data on waves, currents and accurate energy storage projects. solutions for the maritime industry. speed through water (STW), marking a step • Enhanced hull and propeller change in vessel performance management. Founded in 2020 and 100% owned by BW Group, Founded in 2009, Corvus provides purpose- performance management BW Solar already has a development pipeline engineered energy storage solutions for marine, • Speed optimisation to save fuel STW-measuring devices have until now been of 1,500MW in the United States and Canada. oil and gas, and port applications. By being the • Reduced cost and risk due unreliable. They cannot accurately predict the The company strives to collaborate closely with first company to offer a battery with the needed to weather claims current at specific locations and times due to all stakeholders, including community leaders capacity, low cost, and high safety level, Corvus • Reduced weather-related vessel and cargo damage the multi-factorial and high-velocity nature and residents, to minimise the environmental Energy became a pioneer in maritime energy of currents. Instead, speed-over-ground is impact of construction and to comply with all local storage systems (ESS) for almost every vessel typically used. This is despite the inadequacy of land-use policies. BW Solar is currently focusing type. Corvus now has the most extensive SOG in accounting for the complex movement on North American development, one of the ESS base, with the largest number of projects of water. fastest-growing renewable energy markets. completed in the maritime industry.

Today, Miros Wavex technology has overcome BW Solar’s development approach focuses on A Corvus ESS assists with regulatory compliance these challenges. After testing on bulk carrier providing the lowest Levelized Cost of Energy and Emission Control Area (ECA) limits, while BW Rye for more than a year, BW Group has (LCOE) and minimising development risk. To providing immediate benefits with a rapid created a joint venture with Miros called “Miros achieve this, the company is involved in all levels return on investment. More than 90% of large Mocean”—aimed at promoting this technology of the project development life cycle. As a result, commercial hybrid vessels utilise a Corvus within the shipping industry. BW Solar is a vertically integrated developer that Energy ESS. Custom-developed mechanical and performs its own siting, permitting, development, electrical design combined with state-of-the-art With accurate STW data, we can now make the engineering and construction, financing, and battery management systems provide Corvus right trade-offs between fuel and speed. operations. customers with lower maintenance costs and reduced fuel consumption and emissions. 22 BW Sustainability Report 2020 Environment 23

Cadeler BW Ideol Ductor BioGill and HEA Headquartered in Denmark, Cadeler is a key Headquartered in France, BW Ideol is a leader in Headquartered in Finland, Ductor is a BioGill (Australia) manufactures reactors which supplier within the offshore wind industry floating foundations for offshore wind, enabling biotechnology company focused on sustainable specialise in advanced biological wastewater for installation services, and operation and access to deeper water and the additional space fertilisers and biogas, produced by recycling treatment and HEA (Singapore) is focused on maintenance work. and wind power associated with that. animal waste. wastewater treatment and management.

Cadeler operates two highly efficient Windfarm In February 2021, BW Offshore became a strategic Ductor’s fermentation technology converts BioGill manufactures unique above-ground, Installation Vessels (WIVs), Pacific Orca and owner of Ideol S.A., creating a renewable agricultural waste, such as chicken manure, into attached growth bioreactors that deliver highly Pacific Osprey, and up to two new units. In energy company (named BW Ideol) with market- efficient organic fertiliser for large-scale farming effective, low-cost, and energy-efficient water addition to offshore wind farm installation, leading capabilities based on proven technology and biogas in the form of biomethane to replace treatment systems. More than 250 BioGill biore- these vessels are well suited for a wide range developed in-house. fossil fuel energy. Healthier soils and regenerative actors are operating in over 25 countries around of maintenance, construction, and decommis- agriculture also contribute to less polluted the world. sioning tasks. Equipped with a 1,200t crane, BW Ideol is a leading fully integrated platform waters. The company is committed to increasing sizeable clear deck area, working water depth of in floating offshore wind with more than 10 agricultural biodiversity, enriching soils, improving BioGill above-ground bioreactors use patented 60m, and 2.5m wave height(Hs) limit for jacking, years of experience from design, execution and watersheds, and enhancing ecosystem services. nano-ceramic media, known as gills, to provide the vessels are designed to meet the offshore development of floating wind projects based the right air and liquid interface for microor- industry’s current and future needs. on Ideol S.A.'s patented floating offshore wind BW is a significant shareholder in Ductor, having ganisms to grow, multiply and thrive. technology and engineering capabilities. The participated in a EUR 28 million funding round Safety and reliability are two critical points company has a dual-leg growth strategy as a in October 2020. With this investment, Ductor BioGill solves many of the shortfalls of other of focus in the WIV design and aftermarket floater EPCI and maintenance services provider, plans to develop 200 new biogas and sustainable technologies by delivering effective treatment of support. The WIVs are fitted with six legs to and as a wind-farm project developer and organic fertiliser projects within the next three high organic waste streams, Fats, Oil, and Grease increase stability during jacking operations and co-owner. BW Ideol has two full-scale offshore years in the European Union and North America. (FOG), and reducing odour. a high redundancy diesel-electric power system floating wind turbines in operation in France Ductor-patented microbial technology and to reduce the risk of breakdown. and Japan, a significant project pipeline, and is proprietary processes enable biogas plants to use HEA sells water-treatment systems based supported by BW Offshore’s extensive experience high nitrogen-content feedstock such as chicken on several licensed or proprietary technol- Cadeler listed in Oslo in December 2020 and BW from developing and operating offshore energy or fish waste with much-reduced ammonium ogies, while it also provides after-sales service. Wind Services is a significant shareholder with a production systems. inhibition, thereby significantly improving the HEA’s customers are active in Food & Beverage, 32% stake. output economics. This circular economy model Municipal, Power, Refinery, Solar, Pulp & Paper, BW Ideol listed in Oslo in March 2021 and BW will dramatically help reduce greenhouse gas Mining and Light Industry. Offshore owns 51%. emissions from the energy and agriculture sectors. Social 26 BW Sustainability Report 2020 Social 27 Zero Harm

Safety is at the top of our agenda

BW is committed to a safe working environment. Even as we focus on prevention, we remain We do this through a culture of constant commu- committed to emergency response preparedness. nication, active sharing of best practices, learning In collaboration with external stakeholders such from near-miss incidents and numerous other as our Qualified Individuals (QI), P&I Clubs and We believe in zero safety tools and processes. crisis communications agency, we conduct regular drills to stress-test our processes, train harm to people, We aim to ensure that every employee, both crew and colleagues, and refine our response as onshore and at sea, can work in the safest work a team. In 2020, we conducted over a dozen drills environment, cargo environment possible. An example is our Health, with scenarios of allision (contact with a stationary and property Safety and Environment Policy, a directive which vessel), oil spill, suspicious craft (piracy), as well as embodies our work activities. Tools like this Covid-19 response. create BW’s safety culture.

BW has a holistic approach to Health, Safety, Security, Environment, and Quality (HSSEQ) across our operations. Our safety vision of Zero Key Safety Statistics Harm is a journey, and new initiatives are put in place each year to realise our ambition. Our BW LNG BW LPG Hafnia BW BW Total current safety statistics indicate these efforts Epic Kosan Offshore have been effective and impactful. Although our incident statistics show a positive downward Lost Time Incident Rate (LTIF) trend in many group companies, there is always work to be done. 2019 0.70 0.25 0.62 0.30 0.48 0.47 2020 0.17 0.14 0.23 0.11 1.86 0.50

% Change ↓76% ↓44% ↓63% ↓63% ↑288% ↑7%

Total Recordable Case Frequency (TRCF)

2019 0.93 0.89 1.25 0.76 1.45 1.06

2020 0.17 0.86 1.04 0.67 2.69 1.10

% Change ↓82% ↓3% ↓17% ↓12% ↑86% ↑3%

28 BW Sustainability Report 2020 Social 29 Workforce diversity and inclusion

We believe our global Diversity and inclusion is part of BW’s culture shipping group BW is committed to diversity and inclusion. should reflect the The collective sum of individual differences, life world we serve experiences, knowledge, capabilities, and talent constitute our culture. BW embraces differences in age, ethnicity, family and relationships, and all other characteristics that make our employees unique.

Currently, BW has employees aged 18 to 67 years old from over 60 nationalities, forming a multigenerational and international team. We support the development of our employees throughout their BW journey, and we are proud that so many of our people choose to remain at BW for a long time.

60different nationalities

BW employees by age

Age <30 30–50 >50

BW Group 19% 67% 14% BW LNG 31% 57% 12% BW LPG 11% 71% 18% Hafnia 32% 59% 9% BW Epic Kosan 33% 52% 15% BW Offshore 4% 70% 26% BW Energy 5% 71% 24% Total 22% 62% 16% 30 BW Sustainability Report 2020 Social 31 Gender diversity Local recruitment and training

Gender diversity Regardless of the country BW works in, training Beyond providing job opportunities for locals in and integration is key to a sustainable pool of local the areas where we do business, BW has set up Owing to a combination of traditional preferences and biases, there is a very small number seafarers. Having gathered significant experience the BW Group Cadet program to develop our own of female seafarers. They represent only 2% of the world’s seafarers, and 94% of that small over the years, we now have an extensive in-house talent around the world. Having this number have chosen to work in the cruise industry. For onshore positions, the balance is recruitment and training process for ratings talent pool ensures a steady supply of officers to better, and most of our offices comprise 30-50% female employees. (seafarers who support officers). all our managed vessels.

Familiarising seafarers with BW and shipping Cadets selected from ratings and maritime

BW Group BW LNG BW LPG Hafnia Epic Gas BW BW Energy Total culture is also a priority. For example, in Nigeria, academies are fully sponsored by BW to pursue Offshore we set up the BW Crew Integration Program to their maritime university studies. Over the years, Total Employees bridge cultural and language differences and BW has developed more than 1500 cadets from 2019 196 1,294 2,202 1,801 1,127 1,943 1 8,564 develop positive relationships across people of the Philippines, India, China, Nigeria, Russia, 2020 220 1,389 2,195 2,004 2,116 1,806 42 9,772 different ranks. Romania and other countries. 527 of them % Change ↑12% ↑7% 0% ↑11% ↑88% ↓7% n.m. ↑14% currently sail as BW Officers today.

BW Group BW LNG BW LPG Hafnia Epic Gas BW BW Energy Average Offshore

Onshore Gender Split Female 2019 60% 21% 49% 33% 49% 33% - 38% 2020 56% 24% 43% 34% 40% 33% 26% 41%

Women in Maritime Lab

Led by Hafnia, BW recently partnered with Shell prevalent challenges. Following an online open to run a first-of-its-kind innovation program to call for ideas, shortlisted teams participated in a generate and implement ideas to achieve greater virtual innovation sprint. inclusion of women in the industry. The winning idea, SeaCode, has since developed In preparation for this program, we interviewed into an online platform that transcends gender several key leaders in the maritime industry and and supports people in the maritime industry sent our surveys globally to maritime industry who experience difficulties at work. Through employees of all genders. While we recognize sharing their stories anonymously, employees in that the challenges women face in maritime vary distress can seek encouragement and comfort by company and geography, we also noticed from others, while the SeaCode team can use the specific vital and urgent issues present across the data on maritime employee difficulties to compel industry. change. The platform also provides guidance on where employees can seek help and educates Our program thus sought to scout innovative employees on topics such as harassment, bullying ideas from people of all genders to solve these and the rights of maritime employees. 32 BW Sustainability Report 2020 Social 33 BW Wellness Programme Community support

BW Group and its principal shareholders have Brazil and Gabon made numerous donations to worthy causes, In Brazil and Gabon, we are donating PPE particularly in the areas of youth and education. equipment to poor communities. In Gabon, we are These have included sponsoring a children’s installing solar-powered lampposts to increase village in Africa, scholarships in China, the US, safety at night and distributing solar-powered Singapore, and donations to sports and arts. The backpacks to primary school students to continue Sohmen family established the YK Pao School in their studies at night. Shanghai to develop high-quality whole-person education in China. Egypt In Egypt, we are donating to assist with the supply During the Covid-19 pandemic, we have taken of medical equipment for the Covid-19 pandemic. many additional steps to help our communities: Nigeria Singapore In Nigeria, a donation was given to the Lagos In Singapore, we donated meals for healthcare Food Bank Initiative to support their COVID-19 workers and care packages for migrant workers Emergency Food Intervention Programme (CEFIP). (benefiting 25,000 individuals) and provided The donation provided the support needed to support for additional maritime scholarships. continue CEFIP’s mission to support affected children and women. BW LPG partnered with Union Gas and Marsiling Cares to donate 1,600 LPG cylinders to low-income Around the world families. These families stay in rental flats We are providing financial assistance to the provided by the government and rely upon Mission to Seafarers, which supports merchant grocery and food coupons to feed themselves. crew through advocacy and counseling services The BW Wellness Programme’s philosophy is can use to make purchases on the world’s most Union Gas will supply and distribute the LPG worldwide. to create a cultural change across the organi- common e-commerce platforms. cylinder to the household whenever they call to sation that continually supports seafarers’ holistic order more gas. well-being instead of focusing on single events. The Programme connects to the internet and mobile-enabled platforms. After keying in their Holistic well-being means being well physically individual health data (e.g. age, weight, blood (where your body is cared for to achieve optimum pressure), crew members can focus quickly performance), mentally (educating oneself and on areas of interest such as fitness, nutrition, challenging the mind to learn more), and socially wellness and education. For example, the (connecting well with others). The Programme Programme may suggest meal plans for crew celebrates small wins, which can be accom- members, remind them to exercise to burn off plished with reasonable effort. These positive excess calories, ask them to plan a game to feelings of success then power a virtuous cycle of bond with colleagues, or encourage them to being well at sea. It is all encouraged through an improve their mental health through mindfulness incentive system that rewards activities in any of exercises. these domains with vouchers that each seafarer Governance 36 BW Sustainability Report 2020 Governance 37 Corporate governance

Strong corporate governance Best in class governance BW Group board of directors BW’s success is founded on high ethical standards. BW Group has a highly experienced and reputable We have a well-developed corporate governance Board of Directors. The Board complements the structure that adheres to the Corporate Governance Group’s management with extensive international Code of Practice. experience in shipping, energy and capital markets.

Mr Andreas Sohmen-Pao Sir John Rose Mrs Lim Hwee Hua Chairman of BW Group, BW Offshore, BW Deputy Chairman Rothschild, advisor to Chairman of Asia Pacific Exchange, senior Appropriate workplace LPG, Hafnia, BW Epic Kosan, Cadeler, and Greenbriar and Abu Dhabi Executive Affairs advisor to KKR, director of Jardine Cycle conduct Eth Singapore Maritime Foundation (SMF). Authority. Formerly CEO Rolls Royce, & Carriage. Formerly with Temasek, and hts ical rig em Trustee of the Lloyd’s Register Foundation. Commandeur de la Légion d’honneur, and Singapore Second Minister for Finance an pr plo Former director of HSBC (HK), MPA, Singapore Public Service Star. and Transport. um act ym H ice e s nt London P&I amongst others. C on d se n y or the in o q a lit ect f divid f b u ts a esp ua r e if it R l e n p a c G s c e o h s h

D u t y n uitable w o io s eq or f t t nd kp l a a la C o n ir c y it e a e o il F a l c m n m t a y o y i m F a t a p E p x it n u n p m d r io e r t c e o p ta n c u t t r i r r o a C d o n n o n o f a , m a c s d n p Mr Christian Clausen Mr Thomas Thune Andersen s i e m s d o e d n h c n f o s n x t u Chairman of BlackRock Europe, Sampo. Chairman of Ørsted, Lloyd’s Register Group, i r o r n o t i a p n a t o a a u i Former Group CEO Nordea, President of Vice Chairman VKR Holding. Formerly CEO e i y c u s r n n r r a n c i b e the European Banking Federation, director Maersk Oil, director of DeepOcean, Petrofac, n o i l e p t o t r i g

D t a o o p b e of OMX Exchanges Ltd, Stockholm and Scottish and Southern.

t i n n

s t

r r

s Copenhagen Exchanges. o

b c Code of Ethics and

N i

s t n

n Business Conduct

l p

i o

e s

h n

s p

n e

r t

s n

u s

g l

B P e

e Leadership Gender Diversity Across BW

r r c o n t a F e i r l a c p u P t i e d n m r c o g o e c n c d o t c a e t a i n o c r l BW Group BW LNG BW LPG Hafnia BW BW BW Energy Average t c m u T p r t p d o i n s m l o a a Epic Kosan Offshore s n n o o y c e c o ass ess r f ets Busin a Senior management D in e a f c n a t o n o n a r a ti Female d m li c p p in ro at m te s fo te io o ro 2019 25% 25% 33% 0% 40% 25% 0% 21% e r c n c p c m t a er a u a io nd th t ri t n as O a ty io set D 2020 19% 18% 25% 18% 25% 27% 0% 19% n s C om n an m tio Board d un eti st so ica p ru cia tio om ti-t Female l m n C an ed nd ia Insider Money a t g 2019 14% 14% 33% 0% 0% 17% 20% 14% rading launderin 2020 20% 20% 60% 20% 0% 20% 20% 23%

38 BW Sustainability Report 2020 Governance 39 Industry participation

BW strives to be an BW Group Chairman, Andreas Sohmen-Pao, is the Chairman of the Singapore Maritime active leader in maritime Foundation (SMF). Established to forge dialogue and cooperation between private and public industry organisations maritime stakeholders, SMF works with and a participant in forums stakeholders across the industry.

Supported by the Maritime and Port Authority of Lending our voice to climate advocacy Singapore, the Singapore Maritime Foundation established an International Advisory Panel The pressure for environmental action and on Maritime Decarbonisation (IAP) to develop regulation creates the need for even greater a strategy to support the industry in achieving collaboration between industry players—not these goals. only amongst ship owners and operators but Andreas Sohmen-Pao also charterers, banks, and governments. We Chaired by Andreas Sohmen-Pao, the IAP has Chairman, International Advisory Panel are active participants in multiple associations proposed actions for maritime decarbonisation. on Maritime Decarbonisation working on industry matters, including climate The IAP draws on leaders from shipping change initiatives. companies, port operators, academia, class societies, insurance and finance players, energy In 2020, BW Group and its affiliates were a companies, engine makers, shipyards, shipping member of or partner with the following associa- associations, and the government. tions and organisations: One of the key initiatives coming from the IAP’s work is to establish a decarbonisation centre in Singapore. BW is making a $10 million contribution towards its establishment (see more on next page).

The panel launched its recommendations in April 2021. Scan the QR code to access the publication. 40 BW Sustainability Report 2020 Governance 41

Other key industry collaborations and initiatives BW is involved in

White paper for a Carbon Levy

BW Group formed a working group with BHP, DNB, and DNV GL to propose an industry-wide CLIMMS Getting to Zero Coalition carbon levy scheme that could support the IMO 2050 A joint industry project to identify pathways for Many of BW Group’s affiliates have joined the GHG reduction ambitions. A transforming the international shipping sector Getting to Zero Coalition, an alliance of more transparent carbon levy allows towards the IMO 2050 goal of 50% reduction in than 80 companies within the maritime, energy, businesses to invest under GHG emissions and keeping global temperature infrastructure and finance industry, including conditions of greater certainty, rises below 2°C. key governments and Inter-Governmental and a clear trajectory should Organisations support. The Coalition is influence investment decisions committed to getting commercially viable at an early stage. The revenue will zero-emission deep-sea vessels into operation primarily fund R&D, trials, support by 2030. technology deployment and scaling and drive decarbonisation in the maritime sector.

Maritime Decarbonisation Centre Maritime Anti-Corruption Network

BW has committed to be a founding member of a BW is a member of the Maritime Anti- Decarbonisation Centre to be built in Singapore, Corruption Network (MACN), a global business which will drive collaborative initiatives for network working towards the vision of a maritime piloting new solutions, carbon accounting, green industry free of corruption. MACN and its financing, and policy matters, amongst others. members promote good corporate practices in the maritime industry for tackling bribes, facili- Founding members include BW Group, BHP, tation payments and other forms of corruption. DNV, Eastern Pacific Shipping, ONE, and Sembcorp Marine. Together with contributions BW adopts high ethical standards, following from the Singapore government, the centre has strict anti-bribery policies that inform our interac- an initial capital of S$120 million. tions with suppliers, customers, members of the industry and other stakeholders. Appendix: ESG data overview 44 BW Sustainability Report 2020 Appendix: ESG Data Overview 45 ESG data overview

Environmental Metrics Safety Metrics

Business Activity BW LNG BW LPG Hafnia BW BW BW BW Energy Total Key Safety Statistics BW LNG BW LPG Hafnia BW BW BW Energy Average Dry Cargo Epic Kosan Offshore Epic Kosan Offshore Owned Fleet Size Lost Time (No. of vessels) Incident Rate (LTIR)

2019 24 46 89 9 44 15 N/A 227 2019 0.70 0.25 0.62 0.30 0.48 — 0.47 2020 30 46 89 15 76 15 N/A 271 2020 0.17 0.14 0.23 0.11 1.86 — 0.50 % Change ↑25% 0% 0% ↑67% ↑73% 0% N/A ↑19% % Change ↓76% ↓44% ↓63% ↓63% ↑288% — ↑7%

Total Deadweight Total Recordable Tonnage (DWT) Case Frequency

2019 1,972,220 2,291,358 5,481,252 901,887 282,823 N/A N/A 10,929,540 2019 0.93 0.89 1.25 0.76 1.45 — 1.06 2020 2,304,132 2,348,000 5,435,704 1,373,555 818,482 N/A N/A 12,279,873 2020 0.17 0.86 1.04 0.67 2.69 — 1.09 % Change ↑17% ↑2% ↓1% ↑52% ↑189% N/A N/A ↑12% % Change ↓82% ↓3% ↓17% ↓12% ↑86% — ↑3%

Total Distance Sailed (nautical miles) Social and Diversity Metrics 2019 1,812,000 3,558,262 4,594,384 512,812 1,953,000 N/A N/A 12,430,458 2020 1,982,000 3,547,000 4,549,692 840,685 4,223,127 N/A N/A 15,142,504 Demographic Diversity BW Group BW LNG BW LPG Hafnia BW BW BW Energy Total Epic Kosan Offshore % Change ↑9% 0% ↓1% ↑64% ↑116% N/A N/A ↑22% Total Employees Total Cargo 2019 196 1,294 2,202 1,801 1,127 1,943 1 8,564 Carried (metric tonnes) 2020 220 1,389 2,195 2,004 2,116 1,806 42 9,772 2019 11,315,000 12,281,762 42,792,940 4,164,815 3,010,000 N/A N/A 73,564,517 % Change ↑12% ↑7% 0% ↑11% ↑88% ↓7% n.m. ↑14% 2020 12,298,000 10,852,446 41,767,443 5,809,807 5,960,603 N/A N/A 76,688,299 Nationalities Represented % Change ↑8% ↓13% ↓2% ↑28% ↑50% N/A N/A ↑4% 2019 15 24 17 25 15 61 — — Transport Work 2020 16 24 16 28 21 62 8 — Million tons-nautical miles (mt-nm) 2019 57,332 82,143 127,600 28,505 3,287 N/A N/A 298,866 Age (<30) as % of workforce 2020 61,533 82,984 141,500 41,180 7,816 N/A N/A 335,013 2019 16% 31% 8% 12% 40% 4% — 16% % Change ↑7% ↑1% ↑11% ↑44% ↑138% N/A N/A ↑12% 2020 19% 31% 11% 32% 33% 4% 5% 22%

Emissions BW LNG BW LPG Hafnia BW BW BW BW Energy Total Dry Cargo Epic Kosan Offshore Age (30-50) Total CO₂ as % of workforce Emissions (metric tonnes) 2019 68% 57% 72% 71% 50% 68% — 66% 2019 1,503,504 1,450,900 1,529,223 190,692 296,900 1,393,695 56,928 6,421,842 2020 67% 57% 71% 59% 52% 70% 71% 64% 2020 1,447,999 1,422,500 1,484,724 260,170 690,734 1,254,213 56,673 6,617,013 % Change ↓4% ↓2% ↓3% ↑36% ↑133% ↓10% 0% ↑3% Age (>50) as % of workforce Total NO× Emissions (metric tonnes) 2019 16% 12% 20% 17% 10% 24% — 18%

2019 4,062 35,100 79,586 5,495 7,341 8,233 514 140,331 2020 14% 12% 18% 9% 15% 26% 24% 16% 2020 3,524 33,900 77,724 7,931 16,604 11,250 457 151,390 % Change ↓13% ↓3% ↓2% ↑44% ↑126% ↑37% ↓11% ↑8% Gender Diversity BW Group BW LNG BW LPG Hafnia BW BW BW Energy Average Total SO× Epic Kosan Offshore Emissions (metric tonnes) Onshore Gender Split 2019 51 22,800 21,095 2,527 3,387 340 38 50,238 Female–male(%)

2020 2 3,900 4,906 972 2,004 224 12 12,020 2019 60-40 57-43 49–51 33–67 49–51 33–67 — 38-72 % Change ↓96% ↓83% ↓77% ↓62% ↓41% ↓34% ↓69% ↓76% 2020 56-44 57-43 43–57 34–66 40–60 33–67 26–74 41-59

Efficiency Metrics BW LNG BW LPG Hafnia BW BW BW BW Energy Average Dry Cargo Epic Kosan Offshore Senior Management Gender Split EEOI (g CO₂/t-nm) Female–male(%) 2019 25.510 17.600 11.800 7.750 90.340 N/A N/A 30.600 2019 25-75 13-87 33–67 0–100 40–60 25–75 0–100 21-79 2020 23.500 17.100 10.900 6.330 88.400 N/A N/A 29.246 2020 19-81 13-87 25–75 18-82 25–75 27–73 0–100 19-81 % Change ↓8% ↓3% ↓8% ↓18% ↓2% N/A N/A ↓4%

AER (g CO₂/DWT-nm) Board Gender Split Female–male(%) 2019 9.920 7.600 5.830 4.000 23.910 N/A N/A 10.232 2019 14-86 14–86 33–67 0–100 0–100 17–83 20–80 14-86 2020 8.760 7.500 5.700 3.220 23.200 N/A N/A 9.676 2020 20-80 20–80 60–40 20–80 0–100 20–80 20–80 23-77 % Change ↓12% ↓1% ↓2% ↓20% ↓3% N/A N/A ↓6%

46 BW Sustainability Report 2020 Appendix: ESG Data Overview 47 Endnotes and glossary

BW Epic Kosan Figures Deadweight Tonnage (DWT) Lost Time Incident Rate (LTI) Transport Work (t-nm) Epic Gas announced its combination with Lauritzen Kosan Deadweight Tonnage specifies a vessel’s maximum A lost time incident is an incident that results in absence Transport Work is first calculated at a vessel level as on the 23rd December 2020, completing this transaction in permissible deadweight, as a sum of the weights of cargo, from work beyond the date or shift when it occurred. The a product of each vessel’s cargo carried and distance March 2021 to form BW Epic Kosan. The 2019 figures under fuel, freshwater, ballast water, provisions, and crew. rate is based on: (lost time incidents) / (1,000,000 hours travelled over the year. Subsequently, transport work is the column “BW Epic Kosan” refers to Epic Gas figures, worked). calculated at a business unit-level as a sum of the vessel- since the Lauritzen Kosan fleet was not part of BW Group De-rated Main Engines (Page 16) level transport work data. in 2019. However, the 2020 figures refer to the combined De-rating main engines optimises vessels’ actual load point Maritime Energy Storage System (ESS) (page 21) data of all vessels and employees under BW Epic Kosan, with their design load point, resulting in higher efficiency Maritime ESSs store energy when demand is low and X-DF propulsion (page 17) post-merger. and reduced specific fuel oil consumption (SFOC). deliver it back when demand increases, often taking the X-DF propulsion refers to dual-fuel two-stroke propulsion

Measures to achieve de-rating often involve lowering form of a battery. Corvus Energy supplies ESS systems to engines that apply the lean-burn principle (Otto cycle) in Increase in BW Epic Kosan CO and NO emissions 2 x the vessel’s maximum speed (or its specified maximum more than 90% of large commercial hybrid vessels. which fuel and air are premixed and burned at a high air-to- The increase in CO and NO emissions in the BW Epic 2 x continuous rating, MCR), such as by deactivating cylinders, fuel ratio. The gas enters into the combustion chamber via Kosan fleet between 2019 and 2020 can be explained removing turbochargers, reducing stroke length, or ME-GI Engines (page 17) a low-pressure feed, whereas high-pressure gas engines by the merger between Epic Gas and Lauritzen Kosan, introducing various tuning settings to the engine. ME-GI Engines are M-type, Electronically controlled, Gas (like the ME-GI engine) are based on the diesel combustion which added 32 vessels to the 2019 fleet. 2019 figures only Injection engines that use dual-fuel two-stroke propulsion process in which high-pressure gas is injected into the accounted for the vessels then owned by Epic Gas. Emission Control Areas (ECAs) and Sulfur Emission instead of steam turbines. ME-GI Engines apply the combustion chamber. The benefits of using low-pressure Control Areas (SECAs) (page 14, 21) principle of non-premixed combustion (Diesel principle) gas include lower investment costs, low electrical power Variation in AER based on vessel size ECAs and SECAs are sea areas in which stricter controls and operates on Heavy Fuel Oil (HFO) or Marine Diesel Oil consumption, low maintenance costs, more flexibility in Vessels that are larger have greater opportunities for fuel have been established to minimise airborne emissions (MDO) together with high-pressure natural gas, allowing operation and lower NOx emissions. efficiency, resulting in significantly lower AER and EEOI from ships. They are defined by Annex VI of the 1997 fuel flexibility, high efficiency and lower emission levels. The values. However, smaller vessels under 10,000 DWT are MARPOL Protocol and include the following areas: the main difference between ME-GI Engines and X-DF Engines still important for plying near-coastal and inland waterways Baltic Sea area; the North Sea area; the North American is that the former uses high-pressure gas, while the latter to transport energy, since these waterways cannot area (covering designated coastal areas off the United uses low-pressure gas. accommodate larger vessels. States and Canada); and the United States Caribbean Sea area (around Puerto Rico and the United States Virgin Owned Fleet Size Reduction in Total SOx emissions Islands). SOx emissions between 2019 and 2020 decreased This reflects the fleet at December 31 of the given year and significantly relative to NO and CO emissions due to the includes owned vessels of significant affiliates only. x 2 Energy Efficiency Operational Index (EEOI) [g CO2 / t-nm] shift from Heavy Fuel Oil (HFOs) to Very Low Sulphur Fuel EEOI is the amount of CO2 emitted by the ship per tonne- Oil (VLSFO) as a fuel source in most vessels, in compliance mile of work, the latter of which is given by the equation: Particulate Matter (PM), NOx, SOx emissions (metric tons) with “IMO 2020”, a new limit which was set on the sulphur amount of cargo x nautical miles sailed. The EEOI of a fleet NOx, SOx and PM emissions from the combustion of fuels content in the fuel oil used onboard ships. is calculated as the average of vessel-level EEOI values. from owned vessels have been calculated based on the tool established by Danish Shipping and distance travelled “Phase 3” Energy Efficiency Design Index (EEDI) (page 18) Engineering, Procurement, Construction and Installation by vessels. Scope includes owned vessels only. The EEDI is a design standard determined by the IMO. (EPCI) (page 22) “Phase 3” refers to the EEDI requirement for new ships EPCI refers to a contracting arrangement within offshore P&I Clubs (page 27) built after 2025 to have a design efficiency at least 30% construction where contractors design the structure, P&I Clubs refer to Clubs that provide BW Group with marine below the reference line. The reference line is the average procure materials, undertake construction, and install the liability cover. P&I stands for Protection and Indemnity efficiency of ships built between 1999 and 2009, measured project at the offshore site. insurance, which covers liabilities such as loss of life and in terms of CO emitted per unit of transport work. 2 personal injury to crew and others on board, cargo loss and

Fleet Renewal (page 12) damage, pollution by oil and other hazardous substances, Annual Efficiency Ratio (AER) [g CO / DWT-nm] 2 Fleet renewal refers to the sale of old ships and ordering of wreck removal, collision and damage to property. AER is a carbon intensity metric calculated in accordance newbuilds. with Poseidon Principles. Instead of calculating carbon intensity based on the actual cargo carried, AER assumes Retrofitting (page 14) Fixed Online PMI System (page 16) the vessel is continuously carrying cargo and utilises the In the context of shipping, retrofitting refers to the process A PMI system is a system to provide ship and power plant vessel’s designed deadweight capacity in the calculations. of adding new features or technologies to our vessels, such personnel with a portable computerised tool for cylinder The AER of a fleet is calculated as the average of vessel- as new engines. pressure measurements. A fixed online PMI system is level AER values. capable of optimising main engine fuel consumption. Total distance traveled by vessels (in nautical miles) Ballast Water Treatment Systems (Page 16) Grey Water Modification (page 16) The distance travelled by all owned vessels during the Ballast Water Treatment Systems remove inactive calendar year. Grey water refers to general cooking and cleaning waste (as biological organisms from ballast water. For a treatment opposed to black water which refers to sewage). Grey water system to be approved, it must discharge (a) less than 10 modification is a system of managing grey water, such as Total employees viable organisms per cubic meter that are greater than or reusing it for other purposes or purifying it. The total employees count includes full-time staff equal to 50 micrometers in minimum dimension and (b) less employed in the business unit within the year stated. than 10 viable organisms per milliliter that are less than 50 Levelised Cost of Energy (LCOE) (page 21) micrometers in minimum dimension and greater than or Total Recordable Case Frequency (TRCF) equal to 10 micrometers in minimum dimension. LCOE provides a basis for comparison of technologies This is the number of Total Recordable Cases (i.e. Lost Time of unequal life spans, capital costs, and capacities. It Injuries + Restricted Work Injuries + Medical Treatment CO Emissions [metric tons (T) CO,-E] is calculated as the average total cost of building and 2 Cases) per 1,000,000 exposure hours. Calculations are based on the IMO emission factors operating the asset per unit of total electricity generated and fuel consumption for the year. The financial control over an assumed lifetime. approach defined by the GHG Protocol has been applied (Scope 1). This includes company owned vessels only. Best on Water