Environmental, Social & Governance Report

Our Approach towards ESG

We are determined to work closely with our stakeholders and contribute to the achievement of the IMO’s GHG emission reduction targets and the UN Sustainable Development Goals, through the promotion of environmental protection, health and safety and innovation. This report covers the period from 1 January to 31 December and illustrates our environmental, social and governance (ESG) activities, responding to our stakeholders’ expectations and interests in a transparent and comprehensive way.

IMO’s GHG Emission Reduction Targets

IMO continues to contribute to the global fight against climate change and takes urgent action to combat its impacts. As such, it has adopted mandatory measures to reduce emissions of greenhouse gases from international shipping, under IMO’s pollution prevention treaty (MARPOL) – the Energy Efficiency Design Index (EEDI) mandatory for new ships, and the Ship Energy Efficiency Management Plan (SEEMP). The GHG strategy envisages a reduction in carbon intensity of international shipping by at least 40% and 50%, compared to 2008 levels, by 2030 and 2050, respectively.

Good news is that in 2019 Danaos Shipping already met IMO 2030 carbon intensity targets 11 years ahead, by achieving 41.5 % reduction in CO2 emissions per ton*miles compared with base year 2008!

UN Sustainable Development Goals

The Sustainable Development Goals (SDGs) were adopted by the United Nations in 2015 as a universal call to action to end poverty, fight inequality and injustice, and tackle climate change by 2030. The UN SDGs provide a blueprint for human progress and a clear call to action for businesses to contribute to a better future.

Having identified the goals to which we can have a meaningful impact, Danaos Shipping is committed to increase the speed and scale their delivery across a wide number of SDGs through leveraging our technology and through partnering.

Our Strategic Roadmap

At Danaos, we vision sustainability as an integral part of our corporate culture and an important regulator in decision making. We constantly employ the highest operating standards on board and ashore to ensure an ethical, safe and pollution free environment for everyone. We evaluate our progress against our commitments, refining our strategy accordingly and we are happy to see that significant progress on our journey has been made. Danaos recognizes the importance of being a responsible part of the society and our Environmental, Social and Governance (ESG) approach provides us with a strategic roadmap to become a more sustainable and resilient business.

Our Targets
In progress
Embedded
ENVIRONMENTAL
Emissions
Be fully aligned with the IMO 2030 targets for carbon intensity and 2050 targets for net- CO2 emissions
Completion of Exhaust gas Cleaning Systems (scrubbers) with the installation, certification and operation onboard 11 Danaos vessels.
Participate in JIP for investigating the use of alternative fuels as a means to improve combustion and improve vessel’s carbon footprint
Voluntary enrollment in the DNV “CO2 Index” project, monitoring and certifying our vessels performance and CO2 emissions.
ISO-50001 Environmental Management System adoption in 2015 stimulating energy efficient operational practices and development of means and metrics
Environmental Compliance
Perform gap analysis and issue compliance roadmap with modifications to take place on each vessel (when relevant enforcement takes place)
Comply with IMO 2020 regulations on 0.5% sulphur cap, achieving a successful and smooth transition from HSFO to VLSFO
Biodiversity
Successful installation, certification and operation of Water Ballast Treatment systems for the whole fleet.
Memberships
Become a member of the Global Maritime Forum (GMF) and joined the Getting to Zero Coalition
Become a member of the Ammonia Energy Association (AEA) and explore potential alternatives for newbuilding vessels
Reporting
Ensure full transparency to the IMO DCS and EU MRV emission reporting schemes through our advance WAVES data analytics platform
Monitor and report company’s fleet emissions and energy efficiency indices in our annual report
Innovation
Work on the full digitalization of company’s processes ensuring close control and prompt response promoting fuel efficiency
Continuous study and research on technical measures and design retrofits aiming at improving vessels performance
Support R&D research activities on the study and investigation of the use of alternative fuels and innovative technologies
Initiatives
Develop tools to monitor compliance with various initiatives such as the Poseidon Principles, Climate Bonds and sharing of relevant data with our clients
SOCIAL
Employee Retention
Expand diversity and equal opportunities
Maintain annual employee retention rates above 90%
Crew Retention
Maintain annual crew retention rates above 80%
Compliance with ILO requirements for seafarers
Training & Development
All staff trained on Health, Safety, Social and Environmental (HSSE) risks
Ensure company culture of sustainability is in place onboard and ashore
Ongoing monitoring of our people career development and training
Offer summer internship programs
Safety
Maintain our LTIF significantly lower than the industry averages
Procurement
Establish a sustainable procurement policy and screening of our suppliers
Child and forced labor
No child or forced labor permitted in our own operations
Screening to our suppliers to preclude child or forced labor
Supporting Local Communities
Maintain our strong social engagement and provide support to vulnerable groups
Encourage the spirit of volunteerism among the employees towards environmental and charity activities
Provide Sponsorships to Universities’ Students
GOVERNANCE
Corruption
Zero Tolerance to bribery and corruption
Establish partnerships with sustainable and anti-corruption initiatives
Whistle-blowing
Provide a confidential and effective whistle blowing system for reporting violations
Reporting
Maintain full transparency in ESG report
Integrate SASB standards into ESG report