V.Group ESG 2021 Spreads

Protecting our environments and ecosystems remains a defining objective in how we operate. We are committed to the IMO’s GHG Decarbonisation Strategy. Environmental

” The industry has been in transition for many years, focusing on lower emissions and ways to achieve decarbonisation. With IMO 2050 standards on the horizon, we all need to do more, and at pace. – Matt Dunlop

Emissions Emissions management and ESG have been interchangeable for many years. While we are glad to see this changing, and an understanding that ESG is more than environmental concerns, it is undeniable that a major impact and threat comes from climate change. The relationship a ship manager has with actors across the value chain in the industry is a complex one. We do not own the assets, therefore cannot mandate efficiency- saving retrofits, and we are behest to charters’ instructions of voyage speed. The market in 2021 was buoyant and, therefore, vessels increased their speed to meet world demand. This outcome also has nuances when considered in a broader ESG scope – after two years of turbulence caused by the pandemic, it is important for both the industry and the economic trade the industry facilitates to capitalise on improved market circumstances, partly in order to continue to research and develop energy transition solutions. In this hot market where our vessels travelled further, it is perhaps more reflective to look at our efficiency and emissions per nautical mile travelled. This gives more nuance and accuracy compared to an aggregate top-line figure. In 2021, we reduced overall emissions of an average 16% per nautical mile travelled across fleet, resulting in reduction of ~10.5% total fleet emissions, even in a hot market. While current estimates of our industry’s contribution to global GHG emissions currently sits around 3% of the global total, this could rise to around 17% by 2050 should insufficient action be taken. V.Group are absolutely committed to making sure our industry is not left behind in global efforts to tackle climate change and other environmental issues. In this spirit, we ask that peers do contact and work with us to achieve this collective ambition.

Prioritising and promoting environmental considerations remain an integral component of our decision-making processes and will be vital in continuing our success as an environmentally sustainable company. Our commitment to the IMO’s decarbonisation ambitions means we cannot rest on our laurels: we must continue to implement ambitious targets and meet the challenges the industry faces head on. This is and has always been our ethos with ESG matters. We are determined to lead the industry and prove to be the ESG partner of choice. We have set ourselves a number of ambitious targets and clear strategies for the upcoming years. To identify and articulate these strategies clearly, for the benefit of both internal and external stakeholders, our ESG committee and other key stakeholders engaged in a Task Force on Climate- Related Financial Disclosure (TCFD) session. This session gave clarity on what climate-related issues were of primary concern to V.Group and our stakeholders, and how to acutely interact with them through targeted strategy. More detail is provided on this process on page 16. As we continue on our ESG journey we are aware that sustained, long term improvement is possible, but it is only possible by fixing on large issues and continually working at them. Incremental gains are the best option we currently have available – making grandiose statements and finding ever new initiatives to fill disclosure documents may look good, but we are focused on doing good. To us, ESG is about continued accountability and transparency, and it permeates to the core of V.Group. Below is an update on previously announced initiatives and targets and their developments.

70,000

V.Group 2021

IMO Avg.

60,000

Benchmarking (Fourth IMO GHG Study 2020)

50,000

Bulk Carriers

Chemical Tankers

Gas Carriers

Oil Tankers

40,000

20,000 30,000

10,000

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8 | Environmental

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