ESG Disclosure 2024 | Reporting Year 2023

ESG Disclosure 2024 Reporting Year 2023

Your committed partner for progress

Contents

Executive and CEO Forewords

Wider Environmental Stewardship

Future Ready: Your Partner for Progress

Consolidated Climate-Related Financial Disclosures

Building on Our Work

Social Overview

Our ESG Framework

– Safety First

Environment

– Training and Development

– Climate Change: Our Commitment to Net Zero

– Our Workforce

– Path to Net Zero

– Case Studies: Community Engagement

– Our Progress

V.Ships Leisure

Scope 3 Emissions: Working with Our Value Chain

Governance

– The Board

– Partnership with Maersk Mc-Kinney Møller Center for Zero-Carbon Shipping

– Corporate Governance at V.

– V.ERDE

ESG Charter

Environmental Regulation Compliance

UN Sustainable Development Goals

– EU ETS: Readiness and Implementation

Full Metrics

– Readying for FuelEU

2 | How V. Can Assist

Executive Foreword

CEO Foreword

Environmental concerns, regulatory pressures, and the imperative for technological innovation demand a proactive and forward-thinking approach. At V., we are not merely responding to these demands; we are leading the way, supporting our clients, and providing solutions that make a real impact – both now and for the future. As we face a seminal shift in the industry, V. remains resolute in our commitment to pioneering sustainable and responsible maritime practices. This, our fifth ESG disclosure, is a testament to our dedication, reflecting our ambition to lead by example and inspire change across global shipping. In response to this evolving landscape, our vision and strategy are clear: to provide our clients with informed guidance and innovative solutions. This year, our primary focus is on staying ahead of these changes. We will always support our clients, ensuring they are prepared for new regulations such as the EU Emissions Trading System (EU ETS), FuelEU Maritime, and the Corporate Sustainability Reporting Directive (CSRD). We are investing in improved data capture capabilities, as well as the latest technologies and methods to boost efficiency, reduce environmental impact, and improve operations. Our comprehensive climate governance framework underscores our strategic vision. By exploring new technologies and upskilling stakeholders on alternative fuels, we are at the forefront of the decarbonisation agenda. Our collaboration with the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, where we are the only ship manager in the collective of strategic partners, exemplifies our commitment to driving innovation and sustainability in our industry. We understand that shared values are the cornerstone of our success. Our commitment to safety, environmental stewardship, and operational excellence is reflected in every aspect of our business. While environmental regulations are currently taking centre stage, our core value remains unchanged: ensuring the safety of your vessels and crews. This principle is at the heart of every decision we make. We prioritise the health, safety, and wellbeing of all individuals involved in our activities, with a firm commitment to zero casualties. These goals are just goals without effective governance turning them into reality. Solid risk management is integral to our success. To enhance our well-established operational risk management processes, our growing Sustainability & Decarbonisation department, led by the Director of Sustainability & Decarbonisation, will consider our own climate and ESG risks, positioning V. at the forefront of sustainable shipping. As we look ahead, V.’s ambition is clear: to continue leading the industry’s efforts to safeguard our environment, support our people, and ensure fair and transparent governance. We thank our partners and stakeholders for their trust and support as we continue to set new standards of excellence and lead the way towards a sustainable and prosperous future for the shipping industry.

I am pleased to share our vision and commitment to delivering exceptional value in the ever-changing maritime industry. As we face rapid technological advancements, new regulations, and a growing emphasis on sustainability, our focus remains on providing you with outstanding service and innovative solutions tailored to your needs. These changes are not just challenges; they are opportunities to enhance our operations and reinforce our commitment to sustainable practices. We are dedicated to helping you prepare for these new requirements, improving your compliance and environmental performance. Our strategy includes significant investments in the latest technologies and innovative methods. We are constantly seeking ways to boost efficiency, reduce environmental impact, and improve operations. However, our core value remains unchanged: ensuring the safety of your vessels and crews. Our commitment to safety is more than a promise; it is the foundation of our long-term dedication to delivering exceptional services. By combining new and advanced strategies with our focus on safety, we ensure you receive the best support and expertise. In this dynamic landscape, staying ahead requires more than just compliance; it requires foresight and proactive measures. That is why we are committed to providing you with informed guidance and innovative solutions, helping you not only meet regulatory demands but also thrive in a competitive environment.

Matt Dunlop Director of Sustainability & Decarbonisation Secondee to the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping

René Kofod-Olsen CEO V.

We aim to be your trusted partner for everything at sea, guiding you through every challenge and opportunity with excellence and reliability.

Thank you for your partnership.

4 | Executive and CEO Forewords

Future Ready: Your Partner for Progress

The shipping industry is undergoing a transformative shift driven by global trends toward sustainability, regulatory demands, and technological innovation. With the International Maritime Organization’s (IMO) ambitious emissions reduction targets and the European Union’s Fit for 55 policies, the sector faces significant challenges and opportunities as it adapts to new environmental standards. The defining trends shaping the industry is the drive to reduce emissions. Shipping accounts for approximately 2.8% of global greenhouse gas emissions, and achieving net zero by 2050 requires a transition to low-carbon fuels. The Well-to-Wake emissions framework, which considers the full lifecycle of fuel emissions, is becoming central to sustainable decision-making in the sector. Regulatory frameworks are also evolving to standardise sustainability reporting. The EU’s Corporate Sustainability Reporting Directive (CSRD) and the UK’s Climate-related Financial Disclosure framework are pushing for greater transparency and accountability. These regulations reflect a broader trend toward consistent ESG disclosures, which are becoming critical for managing climate risks and meeting investor expectations. Market-based mechanisms like the EU Emissions Trading System (EU ETS) are gaining prominence, placing a price on carbon emissions and encouraging cleaner technologies. Additionally, new regulations such as FuelEU Maritime are setting specific targets for fuel carbon intensity, further driving the shift towards sustainable practices.

In this evolving landscape, V. is committed to leading the transformation of the maritime industry.

With our deep expertise and innovative solutions, V. is uniquely positioned to help shipowners navigate the complexities of decarbonisation, sustainability and achieve long-term success.

Together, we can build a sustainable future for the maritime industry..

We have conducted a full analysis of Alternative Fuels and their impact. To read this in-depth paper, please use the QR code below.

6 | Future Ready: Your Partner for Progress

Building on Our Work

Our Progress

Nov 2021 Dedicated decarbonisation fuction established Matt Dunlop appointed Director of Decarbonisation

2024 Onwards: ESG Strategy and the CSRD Building on our existing commitments, we are developing an ESG strategy designed to address the critical challenges and opportunities facing the maritime industry today and, in the future while ensuring regulatory compliance. The Corporate Sustainability Reporting Directive (CSRD) represents a significant shift in sustainability operations and reporting requirements, necessitating our acute focus on this mandatory transition. Our current strategy and roadmap are rooted in the principles of sustainability, transparency, and accountability, ensuring that we create long-term value for our stakeholders while minimising our environmental footprint and enhancing social well-being. Over the next year, we will update and refine this strategy to align with the requirements of the CSRD. To ensure compliance and readiness, we are conducting a thorough gap analysis to identify areas where our current strategy and reporting practices need enhancement to meet CSRD requirements. We are investing in data management systems to ensure accurate, reliable, and comprehensive ESG data collection and reporting. Additionally, we are providing targeted training to our reporting teams and other relevant staff to build the necessary skills and knowledge for CSRD compliance. We are committed to enhancing our sustainability performance and transparency, ultimately driving better outcomes for our business, stakeholders, and the environment. By enhancing our communication strategies, we aim to ensure clear, transparent, and consistent reporting that meets the expectations of all stakeholders.

Governance through Organisational Changes

Jul 2023 Launch of V.ERDE V. launched tiered decarbonisation product called V.ERDE

As we implement our ESG strategy, managing organisational change is crucial to our success. Ensuring strong support and active involvement from top management in driving ESG initiatives is essential. We are implementing structured change management programmes to guide employees through transitions, including training and communication plans. Activity Metrics

Nov 2021 Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS) V. becomes the ship management partner to the MMMCZCS, committing money and people to the Centre

Q3 2023 V. showcases credentials at LISW V. took part in London International Shipping Week

42 Shoreside Office Locations Worldwide

26,095 Shipboard Employees Average in 2023 [TR-MT-000.A]

205,125 Total Operating Days [TR-MT-000.C]

Mar 2022 Ammonia safety study

MMMCZCS – in partnership with V. – commences study on ammonia as an alternative fuel, with focus on Human Factor consideration, which was published 27 May 2023

DWT

41,084,245 Total Deadweight Tonnage [TR-MT-000.D]

503 Number of Managed Vessels in Fleet (Q4 2023) [TR-MT-000.E]

25,546 Approximate Number of Port Calls [TR-MT-000.F]

H2 2023 Roadmap to net zero carbon in 2050 V. commit to aligning with IMO’s Decarbonisation Trajectory

Sep 2022 First V. TCFD disclosure

V. published first sustainability disclosure early 2020 covering 2019. Have since issued annual sustainability disclosures, from 2022 including the voluntary TCFD disclosure

8 | Building on Our Work; ESG Strategy

Our ESG Framework Our framework outlines

specific ambitions and actions that will enable us to accelerate sustainable and inclusive growth for the world.

Environment To be the industry leader in real carbon reduction and marine biodiversity protection.

Governance To provide full data capture and seamless data transparency to increase our accountability and improve clients’ disclosure abilities.

Social To ensure the safety of our people and our communities.

Our Purpose

We will assist clients in their decarbonisation and environment management though provision of expert knowledge, increased onboard monitoring and digitisation

Our clients rely on us to operate their assets safely and efficiently, protecting the crew, the assets and the environment.

Accountable, transparent and honest business operations instill confidence in our clients that we are reliable and resilient.

Our Clients

As part of our decarbonisation effort and path to net zero we will target and reduce the environmental impact we have full ownership and control over.

Providing development opportunities and attracting the best talent will help us achieve these goals. We need to foster an environment where the best want to work and can thrive.

Business and operations function more efficiently and with more resilience when all colleagues are led well and bought into the goals and vision of the company.

Our Firm

Our interaction with the public and societies is an unwritten agreement: the access we need to conduct business relies on us providing safe and efficient ship operations. We cannot take this for granted and must consider the thousands of people worldwide who are impacted by our operations.

We have a duty to the communities in which we operate to ensure there is minimal impact of our operations on the environment. We take this responsibility seriously.

Providing strong leadership and demonstrating how things should be done in the industry helps elevate every member of it.

Our Stakeholders

10 | Our ESG Framework

Environment At V., we prioritise sustainability by adhering to stringent standards and innovating to reduce our ecological footprint. Our initiatives focus on energy efficiency, waste minimisation, and exploring alternative fuels, highlighted by our partnership with the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping. We aim to set new benchmarks for environmental performance and ensure a greener future for the maritime industry.

V.’s Scope 1 & 2 Emissions

Carbon Footprint Scope 1: Direct emissions from the company’s owned or controlled sources

Scope 2: Indirect emissions from the generation of purchased energy

Scope 3 Emissions

Scope 3: Indirect value chain emissions (not included in Scope 2)

12 | Environment

Understanding Our Impact The vast majority of our emissions are Scope 3, originating from our clients’ vessels. As part of our commitment to transparency and sustainability, we are intensifying our efforts to collect and report Scope 1 and 2 emissions. By improving our data collection capabilities, we aim to provide a more accurate representation of our environmental impact. Consequently, our reported emissions may initially increase as we enhance these data capture processes. Scope 1 & 2 Emissions Scope 1 & 2 emissions represent the emissions due to our operations that we have direct control over. Scope 1 emissions are from sources directly controlled by the company and scope 2 emissions are those due to the purchase of energy used in our offices. Due to the nature of the ship management business our Scope 1 equated to less than 0.01% of the emissions from our operations. Our total scope 2 emissions are 609.84 tonnes of CO 2 , a decrease of 66.31%. This decrease is attributed to the implementation of a more accurate reporting system, which has removed the need for estimations that previously resulted in overestimated figures in 2022. Scope 3 Emissions Our scope 3 emissions are emissions from sources in our value chain that we do not directly control. The majority of our scope 3 emissions are due to the operation of vessels in our service, emissions from these vessels are 10,866,831 tonnes CO 2 which is 96% of our total Scope 3 emissions. Other sources of scope 3 emissions include those from vessel ordering via ShipSure (in part facilitated by Marcas) and Oceanic’s services account for 199,031 tonnes CO 2 which is 1.79% of the total.

GHG Verification At V., we understand the importance of high-quality, accurate data, both to ourselves and to our stakeholders. We are dedicated to collecting reliable data and disclosing it in transparent and meaningful way. To ensure that the data we disclose meets our high standards we have engaged a third-party consultancy to verify our GHG emissions data. Year-on-Year Performance In 2023, our total Scope 1, 2 and 3 carbon emissions were 11.49 million tonnes of CO 2 , this represents a 13.67% decrease from 2022. While understanding our total impact is important, disaggregating this figure provides a clearer picture of the sources and drivers of our carbon emissions. By breaking down our emissions into Scope 1, 2, and 3 categories, we can better identify areas where we have made progress and where further improvements are needed. In 2023, we vastly increased our data capture abilities and directed our resources to better measure material emissions – those emission which we can directly manage and influence. This increase in our capabilities and focus has meant that making direct year on year comparisons will not give an accurate picture. We have included them in the sprit of transparency, with explanations as required.

Climate Change: Our Commitment to Net Zero

Additional sources of scope 3 emissions include:

• • • • •

Supply chain (Vessels)

357,526.92 65,546.85

Air travel

Commuting

1,743.66 405.85

Remote working

Personal car business travel

36.80

14 | Climate Change – Our Commitment to Net Zero

Path to Net Zero As industry leaders, we have a duty to spearhead decarbonisation and support a balanced energy transition. Achieving net-zero emissions by or around 2050, in line with the IMO’s targets, demands a strategic and data-driven approach. This includes regular evaluations of our initiatives to enhance focus, refine strategies, and effectively allocate resources towards our sustainability goals. Our continuous improvement efforts are aligned with best practices and emerging technologies, ensuring we make meaningful progress in reducing our GHG emissions. In the coming year, in line with CSRD, we will develop and disclose a comprehensive transition plan. The CSRD requires companies to outline clear, measurable steps for transitioning to a sustainable business model, including targets for reducing greenhouse gas emissions, timelines for achieving these targets, and the strategies and resources allocated to meet these goals. Our transition plan will provide transparency on how we intend to achieve net-zero emissions, detailing specific actions, milestones, and progress tracking mechanisms.

Measure At the core of V.’s strategy for managing greenhouse gas (GHG) emissions is the collection and analysis of data. This has become increasingly crucial with the introduction of the EU ETS. Accurate and efficient emissions measurement not only aids in compliance but also provides commercial advantages for us and our clients. As mandated by the EU ETS, ship owners must receive precise and verifiable emissions data. We’ve responded by enhancing our services to include seamless collection, verification, and reporting of emissions data, thus reducing the compliance burden on our clients and allowing them to concentrate on other business priorities. In anticipation of the FuelEU regulation, we are proactively preparing to handle increased compliance responsibilities and are committed to accurate GHG reporting across our fleet. To this end, measurement of emissions has been elevated to a strategic priority, with significant investments made in developing a centralised reporting system for all our offices to enhance data analysis and support our Scope 1 and 2 emissions reduction strategy. Beyond compliance, we recognise that transparent reporting builds credibility with stakeholders and affirms our commitment to a sustainable future.

Target

Emissions reduction targets are now a regulatory mandate rather than a discretionary choice.

Under the CSRD, companies are required to disclose a comprehensive climate transition plan that aligns with the Paris Agreement’s target of limiting global warming to 1.5°C. This plan must detail the strategies, goals, and resources necessary to achieve these targets. At V., it is essential to identify and understand our primary sources of emissions, which predominantly include purchased electricity and the direct emissions from our business operations. Reduce V. is keenly aware of the urgency of global efforts to combat climate change and is dedicated to reducing our GHG emissions. Our strategy involves both direct control of emissions within our operations and collaboration with partners to address indirect emissions throughout our value chain.

We fully commit to and support the IMO’s 2050 net-zero decarbonisation target.

IMO 2023 Strategy

-70% (Striving for 80%) Net Zero Offices

-20% (Striving for 30%)

-100%

2023

2030

2040

2050

Collaboration and Future Initiatives

Collaboration remains a cornerstone of our approach, engaging stakeholders, clients, partners, and industry peers to amplify our impact. In 2023, our fleet expansion includes several LNG and LPG fuelled vessels, alongside an LNG Bunker vessel and three dual-fuelled methanol vessels set to enter management by 2024, reflecting our commitment to alternative fuels and improved fuel efficiency.

16 | Path to Net Zero

Future Initiatives Moving forward, our offices will focus on implementing future initiatives to further reduce emissions and improve energy efficiency: 1. Energy Efficiency Upgrades: Investments will be made in energy-efficient technologies and equipment to reduce overall energy consumption, particularly in areas such as lighting, HVAC systems, and insulation. 2. Renewable Energy Adoption: We will explore opportunities to integrate renewable energy sources such as solar panels or wind turbines into our office facilities to further reduce reliance on fossil fuels and lower emissions. 3. Employee Engagement Programs: Continued employee engagement programs will be developed to promote energy-saving behaviours and encourage staff participation in sustainability initiatives. 4. Data Monitoring and Analysis: Regular monitoring and analysis of energy consumption data will be conducted to identify additional opportunities for optimisation and improvement. 5. Partnerships and Collaborations: We will seek partnerships with external organisations and industry experts to exchange knowledge, share best practices, and collaborate on innovative solutions for emissions reduction and energy management. By implementing these future initiatives and strategies, we will achieve our goal of net-zero emissions by 2040 while ensuring sustainable operations across all our office locations.

For this reason, the Piraeus office requires a two-pronged approach: first, to reduce the baseline for lighting and electricity and second, to pay close attention to items impacting excessive use of air conditioning, such as empty rooms and open windows. Rotterdam Office Gas consumption in the Rotterdam office accounts for heating, leading to peaks during winter months. Awareness campaigns would be most productive during winter, as these months present the only opportunity to lower consumption of gas. The office’s KPI can be met through either a 2,025 kWh reduction in electricity, a 2,175 kWh reduction in gas, or a combination of the two. This will result in an annual reduction of 1.57 kgCO 2 /m 2 . Given the need for gas for heating during winter and the relative efficiency of electrical consumption, Rotterdam may be one of the first offices to reach an efficiency limit. Istanbul Office V’s Istanbul Office spans 412m 2 and produced a total of 11,237kg CO 2 e in 2023. This gives the office a reduction target of 1.6kgCO 2 /m 2 annually. As seen with other offices, electrical consumption during summer months is particularly high due to the use of Air Conditioning, and the colder winter months require a greater consumption of gas for heating the premise. Understanding comfortable working conditions are essential for our colleagues, V. will look to reduce the baseline consumptions for both electricity and gas through awareness campaigns in the initial year with it being accepted more technology forward solutions will be required in the future.

Our Progress

Scope 1 & 2 emissions

Glasgow Office In 2023, our Glasgow office consumed 35,672kg CO 2 e from electricity and 15,961kg CO 2 e from gas across an area of 2,028 m 2 . To achieve net-zero by 2040, we have established a yearly target reduction of 1.5 kg CO 2 e/ m 2 . This goal translates to an annual reduction of 15,700 kWh of electricity or 16,900 kWh of gas. To achieve reductions, we will implement awareness campaigns and display consumption data on office dashboards, helping to visualise progress and encourage energy-saving behaviours among staff. Piraeus Office Our Piraeus office and warehouse, covering an area of 3,123.56 m 2 , have an annual reduction target of 0.96 kg CO 2 /m 2 . This goal can be achieved through a reduction of 15,462 kWh of electricity consumption. Electrical consumption in the Piraeus office accounts for air conditioning, lighting, and electrical appliances. An analysis of this consumption shows a minimum monthly consumption of around 15,000 kWh attributed to basics like lighting and electrical appliances, with a heavy peak in the summer months due to air conditioning use.

For V. Group roughly 87% of our Scope 1 and 2 emissions are from purchased electricity for the office.

At the end of 2022, V. conducted a gap analysis on the reporting of all Scope 1, 2 and 3 emissions which highlighted issues in the reporting of office emissions. With an expansive network of global offices, it was concluded that the solution lay in developing a robust reporting system. To facilitate this, V. launched the ESG Champion Initiative. The first step of this initiative was for each global office to nominate an ESG Champion, with the first responsibility to report all office consumptions into a centralised reporting system. Devolving responsibilities locally has resulted in the garnering of data from 95% of global offices. With this structure now in place, V. will be running a pilot project which will set KPIs on Office Emissions in 10% of Global Offices in the second half of 2024. Within this pilot project, we will be equipping local ESG Champions with training and tools to help drive down energy consumptions and subsequent Scope 1 and 2 CO 2 emissions. The KPI’s will follow a reduction path that would see offices reach Net Zero emissions by 2040.

Q2 2024

Q3&4 2024

Q1 2025

Prepare KPI Pilot project for 3 offices during Second Half 2024

Create awareness campaign for offices, utilising real data to stimulate colleague interest

Roll out KPI to all global offices in Q1 2025, accounting for learnings from pilot project

Continue to improve Data quality with offices not included in Pilot

Create process to report other office metrics (Waste, Paper)

Integrate capture of waste into Office Data Collection

18 | Our Progress

Scope 3 Emissions: Working with Our Value Chain Working with the value chain is crucial to achieving net zero emissions. Collaboration across all stakeholders ensures the integration of sustainable practices, enhances efficiency, and fosters innovation. By aligning efforts, we can reduce environmental impact, meet regulatory demands, and drive the maritime industry towards a sustainable future.

20 | Scope 3 Emissions: Working with Our Value Chain

Partnership with Maersk Mc-Kinney Møller Center for Zero-Carbon Shipping

V.ERDE

V.ERDE Energy Efficiency Programme

Additional Services within the V.ERDE Framework: • Sentry: Focuses on performance monitoring, including fuel consumption, annual ETS impact evaluations, and CII monitoring. • Challenger: Expands on Sentry by adding services such as monthly reporting packs, hull performance monitoring, anchorage time and uplift planning, and guidance on new technologies. • Champion: Builds upon Challenger services, adding financial impact assessments (ROI, NPV, ETS market insights), interactive performance management, fleet education, workshops, commercial performance assurance, strategic planning for the next decade, and monitoring of voyage route deviations. This structured suite of services ensures a holistic and strategic approach to fleet management and energy efficiency, tailored to the dynamic needs of the maritime industry. ShipSure ShipSure enhances the V.ERDE framework by introducing new technology aimed at improving core deliverables and maximising opportunities. This upgrade includes enhanced verification processes to ensure the reliability of data used in V.ERDE analysis. By leveraging Machine Learning and Analytics, this initiative will significantly increase operational efficiencies for ship owners. Under the V.ERDE Sentry initiative, ShipSure will launch user-friendly tools specifically designed to optimize performance on longer voyages. These tools will provide detailed and actionable insights to improve efficiency and decision-making. Additionally, for the V.ERDE Challenger and Champion levels, ShipSure will work with external service providers to offer real-time voyage monitoring and actionable optimisation recommendations. This collaboration will ensure that our clients have access to the latest, most effective strategies for managing their maritime operations.

V. is in a strategic partnership with the Mærsk McKinney Møller Center for Zero Carbon Shipping, an independent not-for-profit established in 2020 focused on decarbonising the global maritime sector. Our collaboration supports the adoption of alternative fuels and energy efficiency enhancements, crucial as regulatory standards tighten. Significant contributions from V. include participating in projects that evaluate the impact of maritime regulations and enhance energy efficiency. A notable initiative is the Cost Benefit Sharing project, which assesses energy efficiency technology performance, facilitating equitable cost and benefit discussions among industry stakeholders.

A key area of focus is the use of ammonia as a promising alternative fuel. V. is involved in a comprehensive study conducted by the Lloyd’s Register (LR) Maritime Decarbonisation Hub and the Mærsk McKinney Møller Center, assessing risk mitigation for ammonia-fuelled vessels, including container ships, tankers, and bulk carriers. Additionally, V.’s active role in managing Green Corridor Feasibility studies gathers industry stakeholders to explore the technical and regulatory feasibility of alternative fuels for cargo transport. These studies aim to map costs, identify funding, and find cost reduction opportunities, speeding up the adoption of alternative fuels across the maritime industry.

V.ERDE leverages extensive ship management experience and state-of-the-art technology to deliver a comprehensive approach to energy efficiency, tailored to meet the evolving demands of ESG regulations, governance complexities, and digitalisation. Our programme offers customers detailed roadmaps to achieve net zero, with strategies that address immediate targets, harness upcoming technologies, and implement long-term, greenhouse gas-reducing solutions. The V.ERDE programme seamlessly integrates with existing V. services such as ShipSure, SeaTec, V.Ships, and V.Services, and is customised to meet individual customer needs, available either as a one-off project or on a subscription basis. It focuses on enhancing technical efficiency, alternative propulsion, operational efficiency, business strategy, alternative fuels, and new builds, delivering measurable improvements in energy efficiency.

Key features of the V.ERDE programme include:

• Real-time Monitoring: Ongoing tracking of the Carbon Intensity Indicator (CII) for each voyage, with predictive tools to forecast the vessel’s year-end CII based on current performance. • Voyage Optimisation: Capabilities to model future voyage scenarios to understand their impact on the CII rating, with automated submission of CII ratings and improvement plans for certification. • Digital Tools: A sophisticated web-based platform and mobile application that offer features like voyage routing recommendations, hull cleaning schedules, and soon, automated solutions to enhance CII ratings. By integrating voyage optimisation, digital data verification, and daily monitoring, V.ERDE aims to spearhead decarbonisation and increase operational efficiency within the maritime sector.

22 | Partnership with Maersk Mc-Kinney Møller Center for Zero-Carbon Shipping & V.ERDE

Environmental Regulation Compliance We provide our clients with a service that ensures accurate and real-time data that facilitates effortless compliance with all applicable environmental regulations.

24 | Environmental Regulation Compliance

EU ETS: Readiness and Implementation As part of the European Union’s Fit for 55 legislative package, several new regulations have been introduced for the shipping industry, including the EU Emissions Trading System (EU ETS). This cap-and-trade system is designed to reduce greenhouse gas (GHG) emissions by setting a sector-wide emissions cap.

Readying for FuelEU FuelEU is part of the broader “Fit for 55” legislative package aimed at reducing the European Union’s greenhouse gas emissions by 55% by 2030. Scheduled to take effect in 2025, FuelEU specifically targets the maritime industry, mandating that vessels operating within EU waters must adhere to specific carbon intensity limits. Vessels exceeding these limits face penalties unless they can pool with lower-emission vessels to meet the overall compliance threshold. This pooling mechanism allows ships with lower carbon emissions to sell their excess capacity to higher-emitting vessels, creating a market incentive for investment in low-carbon and alternative fuel technologies. Over time, these carbon intensity limits will become stricter, further accelerating the shift towards sustainable maritime technologies. A key distinction of FuelEU, compared to the EU Emissions Trading System (ETS), is the allocation of compliance responsibilities. Under FuelEU, the responsibility shifts

3. Submission of Emissions Data V. Group can act as a nominated user within the THETIS- MRV system, enabling us to submit verified emissions data to the relevant authority on behalf of our clients. 4. Emissions Allowance Trading We offer an optional service for trading emissions allowances through our partnership with the Marcas association and Aither, a seasoned carbon trading solutions provider. This partnership ensures optimal pricing for emissions allowances. Aither also assists with the setup of Maritime Operating and Holding Accounts (MOHAs) and manages the surrendering procedures. We coordinate closely with Aither to upload emissions data, calculate necessary allowances, and facilitate allowance trading, thus removing administrative burdens for our clients. 5. Surrender of Allowances We are developing a service where V. Group could manage the surrender of emissions allowances and perform related accounting as an authorized representative in our clients’ MOHAs, tailored specifically to our clients’ needs. Our comprehensive EU ETS service ensures that our clients receive accurate, real-time data, allowing them to comply effortlessly with the EU ETS and deliver premium services to their charterers.

from ship owners to ISM (ship) managers. This shift not only introduces new risks but also opens up various opportunities. As ISM managers are directly responsible for operational compliance, they play a crucial role in navigating these regulations, potentially guiding investments and operational decisions that align with FuelEU requirements. At V., recognising the implications of this regulatory shift, we are actively exploring opportunities to position ourselves as a leading provider of FuelEU services. Our planned offerings include consultancy for compliance strategies and pooling arrangements, as well as technical services aimed at integrating shore power solutions and facilitating the use of low-carbon fuels in maritime operations. Over the next year, we will delve into these possibilities to ensure we can offer our clients comprehensive, high- quality FuelEU-related services.

To help our clients comply with these regulations, we have developed a new service that significantly eases the burden of data collection and verification. Our EU ETS service comprises a five-step process: 1. Emissions Data Collection and Validation We collect emissions data through daily vessel voyage reporting. Utilising our in-house data analytics tool, ShipSure, we have enhanced our capabilities for automatic digital data verification using inputs like vessel performance models, behaviour mapping, AIS positional data, and weather information. This integration allows for the automated validation of our clients’ emissions data. 2. Third-Party Verification We partner with the Classification Society (Lloyd’s Register) to verify voyage and emissions data at the end of each voyage. We have established a seamless data transfer between our ShipSure platform and the third- party verifier’s system, ensuring smooth data flows. The Classification Society then produces verified emissions statements, including the calculation of required EU Allowances (EUAs), which are shared with our clients.

Client buys, holds and surrenders carbon credits to maintain compliance with EU ETS scheme (through Aither or another EUA provider)

CO 2

V. introduces Client to Aither including EU ETS support service and platform

Aither & Client Relationship

Verified Emissions Package

Data Collection, Verification & Reporting

EU Allowance Procurement

EU Allowance Surrender

Client takes decision on whetehr to use Aither’s carbon trading support service and platform

V. shares verified emissions certification and data package to Client

Emissions data collection from Vessel Daily Voyage Reporting

Automatic validation of emissions data

Verification of Voyage Reporting Data with Classification Society (Lloyd’s Register)

Submission of emissions data to required administrative authorities. (EU THESIS)

Client introduced to Emission Allowance Trader

Provides free consultancy service; to support Clients with EU ETS

Procures required EUAs and deposits into client account (trading / operator)

Monitor & Management of EUAs

Surrender of EUAs

through Enhanced Digital Verification Check

V. EU ETS Service

Client/Charter Responsibilities (Partnered with Aither)

Client’s Responsibilities (Optional V. Service)

26 | EU ETS: Readiness and Implementation & Readying for FuelEU

Wider Environmental Stewardship

We acknowledge the environmental impact of our operations on ecosystems worldwide. We are committed to mitigating adverse effects and making positive contributions wherever feasible.

Our global operations compel us to maintain high environmental standards and practices in all regions. This commitment includes the implementation of stringent measures to safeguard marine ecosystems and biodiversity, curtail emissions, and prevent pollution. Biodiversity Protection

Pollution, Plastic and Waste Management At V., we are dedicated to reducing the environmental impact of pollution and waste in our oceans. Our ongoing efforts include enhancing waste management systems aboard our vessels, which cover the storage and disposal of waste. Since 2021, we have actively promoted the reduction of plastic water bottle usage on our managed vessels by adopting onboard water filtration systems. This initiative led to a substantial reduction of 62,600kg in CO 2 emissions throughout 2023.

Ballast water management systems are crucial for treating and managing the ballast water ships carry, ensuring that harmful aquatic organisms and pathogens do not invade new environments. These systems generally use a combination of filtration and disinfection techniques to eliminate or neutralise invasive species and other contaminants before discharge. A key aspect of our environmental strategy involves advocating for the installation of ballast water treatment systems on our managed vessels. These treatment systems (also categorised as D2 systems) are environmentally superior to exchange systems, known as D1. In 2023, we achieved a significant milestone by completing D2 installations on 96% of our managed fleet—an increase of 12.4% from the previous year. The IMO has mandated that all vessels are equipped with D2 systems by September 2024. We will be fully compliant with this ambitious target.

28 | Wider Environmental Stewardship

Consolidated Climate-Related Financial Disclosures for the Year Ended 31 Dec 2023 Effective from 6 April 2022, the UK based Climate-related Financial Disclosure Regulations 2022 require reporting on material climate-related matters impacting the Group. For the year ended 31 December 2023, the Group met the threshold with over 500 colleagues and a turnover exceeding £500m. The disclosures include governance, strategy, risk management, and performance metrics related to climate change. Governance

Risk and Opportunity Assessment

Risks Identified

Risk Management

• Extreme Weather: Increased operational risk and safety concerns; mitigated through advanced weather routing systems and inventory stock control. • Sea Temperature Changes: More frequent hull and propeller maintenance; opportunity for increased revenue from related services.

• Identification: Conducted by the Sustainability team and confirmed by the ESG Committee.

The ESG Committee conducted a risk and opportunity assessment using two climate scenarios:

• Materiality Assessment: Considered both qualitative and quantitative measures. Risks and opportunities

• 4 Degree Scenario: Represents the highest physical risk. • 2 Degree Scenario: Represents increased transition risk but offers new service opportunities. Strategy The Group’s strategy addresses both transition and physical risks over short (0-5 years), medium (5-15 years), and long-term (15+ years) horizons: • Transition Risks: Business-related risks due to societal and economic shifts toward a low-carbon future, including regulatory, technological, market, reputational, and legal risks. • Physical Risks: Risks from substantial climate change, including acute risks (extreme weather events) and chronic risks (long-term climate shifts).

deemed material were validated by the ESG Committee and assigned control owners.

• Water Scarcity: Impacts operations; opportunity to provide desalination technology.

• Monitoring: Continual monitoring through quarterly ESG meetings. Full integration into the Group’s risk management process expected in 2024. Targets and Metrics Emission Reduction Targets: Yet to be defines, but significant progress in data governance. Targets to be set in 2024 based on Scope 1, 2, and 3 emissions data. Key Initiatives: ESG Champion Initiative: Centralised emission data recording. • Plastic Reduction Campaign: Estimated 62,600 kg CO 2 reduction from water filtration systems on managed vessels.

• Health Risks: Increased costs due to infectious diseases; managed through business continuity practices.

• Regulatory Changes: Both risk and opportunity in providing additional services to meet new regulations.

• Technological Shifts: Training for new technologies and alternative fuels; partnerships and education initiatives.

The Group’s climate governance framework includes:

• The Board: Reviews strategy, risk management, and ensures robust internal controls, including climate risks. • Executive Management: Delegated by the Board to handle climate-related matters. Established an ESG Steering Committee for oversight, led by the Director of Sustainability and Decarbonisation, reporting monthly on climate-related issues and regulatory changes.

• Environmental Dashboards: Monthly performance indicators for fleet efficiency.

• V.ERDE: Guides clients through regulatory landscapes, reducing Scope 3 emissions and mitigating climate risks.

• ESG Committee: Chaired by the Director of

Sustainability and Decarbonisation, consisting of senior management from various departments. They meet quarterly to identify, assess, and manage climate-related risks and opportunities.

30 | Consolidated Climate-Related Financial Disclosures

Social Overview At V., safety is our top priority. We ensure a safe working environment through rigorous training, regular briefings, and continuous improvement initiatives. We promote open communication and transparency, fostering a culture where safety is everyone’s responsibility. Our commitment ensures that all colleagues return home safely, supporting our operational success.

Safety First

We are committed to creating a safe working environment and ensuring zero accidents and injuries across all operations. As ship managers, ensuring the safety of our operations is not just a responsibility—it is the fundamental principle guiding all our actions. This begins with our team. We understand that well-trained employees who value their work and thrive in a positive culture are more likely to perform their roles effectively. Our goal is to ensure that every team member can carry out their duties without risk or injury. We achieve this through extensive training programs, regular safety briefings, and continuous improvement initiatives that provide our colleagues with the skills necessary to identify and mitigate potential risks efficiently. We regard safety at work as a basic human right and recognise our duty of care to ensure that all colleagues return home safely. The health, wellbeing, and resilience of our workforce are directly connected to the commercial success of our organisation. It is their diligence and expertise that ensure our vessels operate safely and reliably, meeting the needs of our clients and stakeholders. To support our commitment to safety, we foster a culture of shared learning and open communication across all levels of the organisation. Creating an environment where individuals feel comfortable expressing concerns or suggestions is essential for effective collaboration. By promoting transparency and mutual respect, we aim to create a workplace where safety is everyone’s responsibility, and continuous improvement is driven by collective efforts. In 2023, we significantly enhanced our data capture capabilities across various KPIs. This marks a critical advancement in our dedication to providing accurate,

timely information to stakeholders, reinforcing our commitment to transparency and accountability. However, this improvement also means that year-on-year comparisons are not always directly comparable, often resulting in skewed trend data. In our ongoing commitment to transparency, we have still presented year-on-year changes. It is important to note, however, that these figures do not necessarily reflect shifts in operational performance but rather adjustments and refinements in our reporting processes. Between 2022 and 2023, both our Lost Time Injury Rate (LTIR) and the number of marine casualties increased, from 0.21 to 0.95 and from 72 to 425, respectively. At V, we take every incident seriously, conducting thorough root cause investigations and implementing corrective measures when appliable. We are confident that our operational performance remains amongst industry leaders, and we believe that subsequent years of reporting will reflect our commitment to continuous improvement through a downward trend in these figures. Health and Safety To assess the effectiveness of our health and safety protocols, we have implemented a set of key performance indicators (KPIs), which are routinely reviewed in alignment with our V. Management System. These metrics are aligned with industry standard definitions and measurements, are agreed annually with our Board, and are communicated to the entire business. Regular analysis of our V.MS and KPIs helps us identify trends and target areas needing improvement, ensuring our efforts are focused and effective in enhancing our health and safety standards.

32 | Social Overview

Training and Development

Training for the Future In an ever-evolving maritime industry, preparing our seafarers for future challenges is paramount. We recognise that the future of shipping will involve significant technological advancements and operational innovations. Therefore, our training programs are designed to equip our seafarers with the skills and knowledge required to navigate these changes effectively.

Our commitment to safety encompasses substantial investment in our personnel, encouraging their professional growth and reinforcing a safety-centric culture. This commitment goes beyond just compliance; it aims to create a supportive environment where every team member is equipped with the essential tools and knowledge to prioritise safety consistently. We conduct regular talent reviews to assess the skills and capabilities of our staff, creating tailored career development plans for each individual. We aim to make our colleagues feel valued and supported, promoting an ongoing culture of learning and professional growth. Thanks to our robust training programs and investment in our team, we are proud to report an onshore retention rate of 83.5% 1 . A skilled, motivated, and retained workforce is critical for enhancing operational efficiency, safety, and environmental protection. Keeping experienced personnel not only ensures operational continuity but also reduces turnover costs, contributing to a safer working environment and better compliance with environmental standards. Our training for seafarers exceeds the minimum requirements set by the International Convention on Standards of Training, Certification, and Watchkeeping for Seafarers (STCW), reflecting our dedication to high standards in maritime safety and education. 1 The retention rate is reported as an aggregate figure for the entire group, encompassing attrition across all the markets we operate in. The metrics remain competitive across these markets.

The shift towards greener fuels necessitates that our seafarers are proficient in handling new fuel types.

To provide the vital skills we have developed an online training course. This course introduces hydrogen, ammonia, and methanol as fuels, providing an understanding of their characteristics, differences, and crucial safety considerations. Additionally, we offer specialised training for seafarers operating dual-fuel LNG and ammonia engines, with both basic and advanced modules designed to enhance technical proficiency and safety awareness. We are further collaborating with third parties to develop comprehensive training programs for dual-fuel methanol engines, ensuring our seafarers are well-prepared for various fuels they may encounter. Senior officer leadership training is also provided, focusing on decarbonisation and encouraging leaders to effectively and safely drive the transition to greener operations. As the maritime industry advances towards a multi-fuel future, each fuel type presents unique challenges and safety considerations. V. is committed to prioritising the safety of our seafarers through comprehensive training programs. By investing in these programs, we ensure our personnel are knowledgeable and confident in managing associated risks.

34 | Training and Development

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