Environmental, Social & Governance Report

Material Issues

Social

Our People

As a global leader in the shipping industry, we believe that our seafarers and onshore personnel are our strongest asset. Each plays a critical role in helping us reach our business goals. This is why we strive to hire only the most talented individuals and make them feel inspired and valued.

We promote equal opportunities and a culture of appreciation and respect. We aim to attract, retain, empower and motivate our people, both at the office and at sea. Our main objective is to create an inclusive environment where all feel welcomed. We know that our company’s success comes from the work of talented, dedicated seafarers and ashore personnel.

Ashore Personnel

Our shore-based staff has significant experience and expertise in the shipping industry an in containership market. Employee satisfaction is essential to the success of our business and is a major priority for us. This is why we are so proud of the high employee retention rate, which is 96%, is an important indicator of employees’ satisfaction.

In 2020:

  • We hired 12 employees and 13 summer interns
  • 39% of all our employees were women; 1 out of 3 in a managerial position
  • The average retention rate was 96%
  • Increased self – awareness and improved working relations through the 360 Degree Feedback
  • Offer employees at all levels to share their perspectives and ideas through the introduction of an anonymous Suggestion Box

We enhanced employee engagement and morale through the introduction of the Suggestion Box; we received 57 ideas by 23 employees and we awarded 2 of them.

149

Employees

41.4

Average Age of our employees

39%

Female Representation

33%

of Managers are Female

96%

Retention Rate

13

Interns

12

New Hires

36%

MSc holders

204

Total Training Hours

Seafarers

Being a seafarer is one of the toughest and most demanding jobs in the world. Seafarers often have to deal with isolation, difficult weather conditions and constant threat of piracy and shipwrecking. As a matter of fact, the crew welfare and development plays a major role in our operations and it is in the center of our business. In doing so, we have a close relationship with all of them and we work hard on their regular training and career development.
As a matter of fact, access to communication facilities plays a vital role within seafarers’ mental health and it contributes to their career development.

As at December 31, 2020:

  • 1,413 seafarers were onboard our ships
  • The average age of our seafarer was 37
  • We offer a diverse working environment with seafarers being from Russia, Ukraine, Zanzibar and Greece.
  • The crew retention rate was 81%
  • We offered 4,552 training hours
  • 38 Seafarers were promoted

1,413

Seafarers

81%

Retention Rate

37

Average Age of our Seafarers

Promotions
Rank
8
Masters
12
Chief Mates
8
Chief Engineers
10
Second Engineers

Ongoing Development

We invest in training that promotes safety, efficiency, environmental awareness, and multicultural communication. We continuously identify training needs and we have designed a customized training program to ensure safety awareness and competence. Our belief is that constant and detailed training of the staff is the key in order to achieve our development goals.

In 2020 we offered 204 and 4,552 training hours to our ashore and onboard people, respectively, on the following topics:

  • Environmental policy and goals
  • Relevant environmental aspects
  • Operational, monitoring and contingency procedures
  • Updates in laws and regulations affecting ships’ operations

Danaos Shipping Assessment and Training Center

The Danaos Shipping Assessment and Training Center (DATC) was established in 2016 in order to cover the newly arising training need of the fleets’ Officers, Crew and shore staff employees. It accommodates an on-premise installation, housed at the Danaos Shipping Piraeus offices, comprising of the full-mission Bridge Simulator and state of the art training facilities. The DATC defines the Company’s inherent duty and obligation to provide the best training facilities and to develop further the personnel’s competence in order to ensure operational excellence. An integral part of the curriculum is our Company’s Safety Management System (DSMS), and the feedback and lessons learnt from actual fleet experience. The training combines theoretical knowledge and practical training, tests and enhanced competence by using actual scenarios as simulation exercises. DATC has been certified and accredited by Lloyd’s Register of shipping and the DMS (Cyprus Government Department of Merchant shipping) with the Approved Training Provider Certificate and the ISO 9001:2015 Certificate. The DATC personnel continuously support and cooperate with all the Company’s departments for the identification of their specific training needs and thus providing training activities aimed to further enhance their knowledge, awareness, competence and performance. 
Through the DATC the following Simulation Trainings are provided:

  • BR(T)M: Bridge Resource Management
  • MRM: Maritime Resource Management
  • Mega carries Shiphandling basis Danaos Shipping 13,100/10,100 TEU vessels
  • Incident Command & Rescue Sim AFF Module

Also, in 2020 the following Trainings/Courses/Seminars were provided:

Maritime Resource Management
Multinational ship Management
Bridge Resource & Team Management
Damage Control
Mega Carriers ship’s handling
The Human Element in SHIPPING
Incident Command
Marine Environment Awareness
Simulators Training
Passage Planning and ECDIS awareness
Damage Stability & Control
Charter party peculiarities
Bridge Seamanship
Scrubber
Anti-drug Trafficking
Ballast Water Treatment
Leadership
IMO 2020 Sulphur Cap
Oil Record Book
0
Seafarers trained in 2020
0
Training Hours in 2020

Promoting Safety at Sea

The health and safety of our people are paramount to the well-being of our people and we are working towards the safest possible conditions through the implementation of an Occupational Health and Safety regime. This regime includes:

The main objective of the policy is to start and finish the day safe and healthy

The policy clearly states that all incidents are reported, investigated and analyzed in order to prevent similar incidents in the future. We encourage reporting of incidents which do not result in injuries and near misses. These minor incidents are regarded as warnings signals for procedures and practices that merit revision and remediation. All incidents are investigated by the ship’s Master, with the support of the safety Officer, seafarers’ safety representative or any other member of the Safety, Environmental & MLC Committee.
Danaos Shipping uses the most objective measuring tool, the Loss Time Injury Frequency (LTIF) which measures the number of hours a seafarer is unable to work due to injuries. We train our people onboard and actively engage them in recognizing and reporting a near miss. To further decrease the LTIF rate we have incorporated the Lockout/Tagout system which is used to control hazardous energy.

Additionally, from 2018 onwards we started implementing a Behavior Based System approach in order to address the factors that influence and reinforce learning and behavior. Successful implementation leads to significant improvements to the safety performance, and through the BBS approach we aim to create a “total safety culture” throughout the company.

All systems of Danaos Shipping Safety Management are audited by the Safety Quality and Environmental Department. Unscheduled audits are performed if a serious deficiency in any part of the DSMS becomes evident during third party inspections. Audit findings, Non Conformities or Observation notes are collectively analyzed and evaluated during the management review process. In pursuit of managerial excellence, we have established our own KPIs by participating in the BIMCO SHIPPING KPIs. Findings that pose a serious threat to the safety of personnel or the ship or a serious risk to the environment are analyzed with the RCA method and immediate corrective action is undertaken. During 2020 we have performed 69 internal audits as well as 19 third party audits carried out by DNVGL, KR and LR to ensure that our systems remain in compliance with the ISM/ISPS Code, the ISO 9001, ISO 14001, ISO 50001 standards and the MLC Convention. 7 MLC inspections were carried out by qualified auditors without major deficiencies and our vessels were certified successfully.
During 2020 we had on record 16 LTIs which is equal to a LTIF rate of 1.27. We are encouraged to have seen a further increase in reporting of near misses, counting 224 reports for this year.

DNV certified

Danaos Shipping was the first Greek company to be certified by Det Norske Veritas (“DNV”)

69

Internal audits

19

Third party audits

44

MLC inspections

1.27

LTIF rate

224

Near Misses

Crisis Management and Emergency Planning

Danaos Shipping has taken all necessary measures and resources in order to protect our people, vessels and operations in case of an emergency. We have established procedures to identify potential emergency situations and we have prepared plans for each one. These plans are communicated to all employees and crew members and at the same time we provide training in order for them to be ready to respond in emergency situations. An important parameter in our emergency preparedness system is our hands-on management system on board every vessel, detailed in the Ship Security Plan (“SSP”). All employees, crew members, visitors, inspectors, suppliers, and any third party seeking to board the ship are also required to comply with the SSP.
There is a number of risks associated with the shipping industry and therefore we have policies and procedures for risk assessment onboard our vessels.

Crisis Management undertaken by Danaos Shipping is prepared to deal in the most efficient way with any incident that might evolve into a crisis, prevent it if feasible. A specific Emergency Response Plan and an in house Emergency Response Service system have been developed to support the whole process and provide specific instructions and task allocations.

Lifebuoy-in-sea-p

Our Sustainable Supply Chain

Company’s Procurement is responsible for sourcing, analyzing, negotiating and supplying materials and services for vessels’ and personnel’s needs. To this context, there is interaction with hundreds of vendors and service providers across the globe producing tenths of thousands of orders and service agreements.
Due to the complexity of the needs of vessels, our supply chain includes providers of products and services such as Spares/Maintenance, Provisions, Cabin, Deck, Engine Stores, Lubricants, Chemicals, Gases, Paints and Safety services. These product and service providers are located in almost every calling port. At the same time, the ability to forward them from a manufacturer or a warehouse is essential for proper operation.
The ability to conduct business in an appropriate manner towards ethical, social and environmental standards plays a major role in our suppliers’ selection. As such, they are expected to take steps for continuous improvement towards a responsible and sustainable way.
Criteria such as equal opportunities, compliance with international labor standards (no child labor, decent working conditions), health and safety awareness, zero corruption tolerance, transparency and fair business policy are combined with high standards products that promote best use of the vessels’ machinery and the hull as well as the wellbeing of our crews onboard.

“Green suppliers” percentage of our major suppliers
0%

More than 70% of our major suppliers and more than 50% of our medium and small suppliers have been characterized as “green suppliers” through our rigorous assessment of relevant certifications they hold. We aim at increasing these percentages to 85% and 70% respectively.
Additionally to responding to the challenges posed by locating, selecting an ordering, we ensure effective delivery onboard, considering minimum energy footprint and proper timing. In this process we implement and evaluate tactics like seeking local deliveries, placing bulk orders, consolidating shipments, optimizing courier usage and implementing a one-step final delivery.

70

“Green suppliers” percentage of our major suppliers

Our Response to COVID-19

The COVID-19 pandemic has significant impacts on the shipping industry on both our employees and seafarers, or “key workers” as designated by a number of IMO Member States. Travel restrictions imposed by governments around the world created major issues to crew changes and repatriation of seafarers.

During this unprecedented time, the safety of our people is more important than ever while our goal is the efficient transportation of goods. However, protecting our crew and continuing operations in unchartered environments with special requirements is considerably hard. Over a year now, we have been working hard following all the precautionary measures and procedures to ensure crew changes can take place safely, in compliance with the WHO and the IMO instructions. In the meantime, trying to support our seafarers in such difficult times we offered a bonus system for those who have overworked their contracts

Regarding our in-between communication, we are currently meeting online 100% of our seafarers during pre-joining familiarizations, workgroups, online meetings, de-briefings and delivery of training under these difficult circumstances and worldwide travelling restrictions.

Work from Home Scheme

The best practice of the maritime industry is the optimum use of all the available resources and new technologies. Having used the state-of-art latest web technologies, we connected our Company’s employees from different places around the world through a successful establishment of the Work from Home Scheme
Although, it was the first time we implemented Work from Home arrangements and we had to quickly adopt across the entire company, we managed a smooth transition with very impressive results!

Our Strong Community Engagement

Our strategic priority is to create value for the society and the community, in which we operate, and to keep our employees engaged and involved through various voluntary initiatives.
We believe in the value and power of solidarity and our community investment activities focus on supporting vulnerable groups and institutions.