ESG Content Index

ESG Accounting Policies

Topic 1 January to 31 December 2022
Scope & Consolidation The adoption of the terminology Scope 1 and Scope 2 follows the guidelines of the GHG Protocol as below:

  • Scope 1 accounts for the Company’s direct emissions from owned or controlled sources
  • Scope 2 accounts for the Company’s emissions from purchased or acquired lectricity, steam, heat and cooling

The data included in this report apply to Hafnia Ltd. and its controlled subsidiaries. Data collected for each company and office have been internally verified and are subject to control from an external carbon accountant prior to publication.

For Scope 1 calculations, according to the GHG Protocol, a Control approach has been used, accounting for all vessels operated by Hafnia, whether these are owned by the Company or not. Emissions deriving from ships that have been sold during the year have been taken into account for the entire time they were operated by Hafnia. For the first time, and following the Green House Gas (GHG) Protocol, we are reporting the emissions coming from vessels sold during the year until we hand them over.

Further assumptions for the calculations have been:

  • Data from associates or joint ventures are not taken into account in the calculations
  • Data relating to bare-boat agreements are included in the calculations
  • Data relating to time-charter agreements are not included in the calculations
  • Data related to vessels over which we have technical control are reported into the calculations
  • Data related to ships we partially own, but for which we are not responsible for in terms of technical control or management are not reported in the calculations

Technical management of an asset on behalf of third parties follows the same consolidation approach. Thus, data are consolidated by the asset owner/lessee who has operational control over the asset.

Direct GHG emissions (Scope 1) Direct GHG emission from Hafnia’s activities, Scope 1, is the sum of all six Kyoto Gases: CO2, CH4, N2O, HFCs, PFCs, SF6 converted into CO2 equivalents.
As of today, the only GHG emissions imputable to Hafnia are from CO2.The Scope 1 emissions have been calculated based on 113 vessels and ten vessels sold during the year. Data collected for Scope 1 emissions, across the full 2022 calendar year have been externally approved by March 31 2023 by the Recognised Organisation (RO) to be compliant with IMO DCS.
Indirect GHG (Scope 2) – location-based Indirect GHG emissions, Scope 2, is the CO2e emitted from purchased electricity, steam and cooling in our offices in Singapore, Copenhagen, Dubai, Monaco and Houston.

The calculation is based on consumed electricity, district heating and cooling bought from a third party multiplied by the location-based IEA CO2 equivalent emission factors.

ESG Index

ESG Reporting under the GRI standard
GRI 2021 Disclosure Title Page in the report / Disclosure
Universal Standards
GRI 2: General Disclosures The organisation and its reporting practices
2-1 Organisational details Hafnia: a Global Business
Meet our Management
Hafnia operates in more than 122 countries
2-2 Entities included in the organisation’s sustainability report Notes to the Consolidated Financial Statements
2-3 Reporting period, frequency and contact point Investor Information
ESG at a Glance
2-4 Restatements of information Scope 1 & 2 Emissions
ESG Content Index
Our ESG Approach
2-5 External assurance None
Activities and workers
2-6 Activities, value chain and other business relationships Hafnia’s Fleet
Operating Highlights
The Product Tanker market
2-7 Employees Our Workforce
Method used: Headcount, calculation has been conducted at the end of the reporting year
Governance
2-9 Governance structure and composition Best in Class Governance
Our Board & Management
2-10 Nomination and selection of the highest governance body Committees
2-11 Chair of the highest governance body Our Board of Directors
2-12 Role of the highest governance body in overseeing the management of impacts Governance, Strategy & Targets
Our Board & Management
Corporate Governance Report
2-13 Delegation of responsibility for managing impacts Governance, Strategy & Targets
2-14 Highest governance body’s role in sustainability reporting Our Board of Directors
2-15 Conflicts of interest Corporate Governance Report
2-16 Communication of critical concerns ESG at a Glance
Speak-Up Culture – Whistle Blowing & Grievance Mechanism
2-17 Collective knowledge of highest governance body in sustainable reporting Best in Class Governance
On a quarterly basis for ESG matters
2-18 Evaluation of the performance of the highest governance body Self-assessment evaluation
2-19 Remuneration policies Committees
2-20 Process to determine remuneration Committees
No external consultants
2-21 Annual total compensation ratio and percentage increase Not reported
Strategy, policies and practices
2-22 Statement on sustainable development strategy Governance, Strategy & Targets
Climate Strategy
2-23 Policy commitments Integrity & Business Ethics
Our Compliance Program
Code of Conduct
Anti-Bribery & Anti-Corruption
Speak-Up Culture – Whistle Blowing & Grievance Mechanism
2-24 Embedding policy commitments Integrity & Business Ethics
Our Compliance Program
Code of Conduct
Anti-Bribery & Anti-Corruption
Speak-Up Culture – Whistle Blowing & Grievance Mechanism
2-25 Processes to remediate negative impacts Speak-Up Culture – Whistle Blowing & Grievance Mechanism
2-26 Mechanisms for seeking advice and raising concerns Speak-Up Culture – Whistle Blowing & Grievance Mechanism
2-27 Compliance with laws and regulations Integrity & Business Ethics
Our Compliance Program
Code of Conduct
Anti-Bribery & Anti-Corruption
Speak-Up Culture – Whistle Blowing & Grievance Mechanism
Stakeholder Engagement
2-29 Approach to stakeholder engagement Stakeholder Engagement
GRI 3: Material Topics 2021 Material Topics
3-1 Process to determine material topics Our Impact on People & the Environment
3-2 List of material topics Our Impact on People & the Environment
3-3 Management of material topics Our Impact on People & the Environment
Governance, Strategy & Targets
Topic Standards
GRI 201: Economic Performance 2016 201-1 Direct economic value generated and distributed Consolidated statement of comprehensive income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated Statement of Cash Flows
201-2 Financial implications and other risks and opportunities due to climate change Risk Management Framework
201-3 Defined benefit plan obligations and other retirement plans Refer to Annual Report
GRI 202: Market Presence 2016 202-1 Ratios of standard entry level wage by gender compared to local minimum wage Not applicable
202-2 Proportion of senior management hired from the local community 33.3 % of the EMT is hired from local community defined as nationality of the country they work, Headquarters and commercial offices
GRI 205: Anti-Corruption 2016 205-1 Operations assessed for risks related to corruption Significant risks related to corruption Anti-Bribery & Anti-Corruption
205-2 Communication and training about anti-corruption policies and proce- dures Anti-Bribery & Anti-Corruption
205-3 Confirmed incidents of corruption and actions taken None
GRI 206: Anti-Competitive Behaviour 2016 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices ESG at a Glance
GRI 302: Energy 2016 302-1 Energy consumption within the organisation Scope 1 & 2 Emissions
GRI 304: Biodiversity 2016 304-2 Significant impact of activities, products and services on biodiversity Minimising our Impact on the Environment & Bidoversity
Environmental Management System (EMS)
Ecosystems & Biodiversity
Non-GHG Emissions, Waste & Pollution
Responsible Ship Recycling
GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions Scope 1 & 2 Emissions
Methodology consistent with Fourth IMO GHG Study
305-5 Reduction of GHG emissions associated to Scope 1 Reducing our Emissions
Investing in Low Carbon Solutions
Scope 1 & 2 Emissions
305-2 Energy indirect (Scope 2) GHG emissions Scope 1 & 2 Emissions
305-4 GHG emissions intensity ratio for the organisation Reducing our Emissions
Investing in Low Carbon Solutions
Scope 1 & 2 Emissions
EE=I=11.01
305-5 Reduction of GHG emission applicable to scope 2 Refer to Annual Report
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions Non-GHG Emissions, Waste & Pollution
GRI 306: Waste 2020 306-1 Waste generation, management and significant waste-related impacts Non-GHG Emissions, Waste & Pollution
Responsible Ship Recycling
306-2
306-5
306-3 Waste generated Non-GHG Emissions, Waste & Pollution
GRI 401: Employment

 

401-1 New employee hires and employee turnover Our Workforce
401-3 Parental leave Diversity, Inclusion, Belonging & Equity (DIBE)
GRI 403: Occupational Health and safety 2018 403 1-10 Occupational health and safety management system Prioritising Health, Safety, & Security
Safety Management
Health & Wellness
Security at Sea
GRI 404: Training and Education 2016 404-1 Average hours of training per year per employee Human Capital
404-2 Programs for upgrading employee skills and transition assistance programs Human Capital
404-3 Percentage of employees receiving regular performance and career development by gender and employee category Human Capital
GRI 405: Diversity and Equal Opportunity 405-1 Diversity of governance bodies and employees by gender and age group Our Workforce
Culture & Social Development
Diversity, Inclusion, Belonging & Equity (DIBE)
405-2 Ratio of basic salary and remuneration of women to men, based on average pay for each gender group Not reported
GRI 410: Security Practices 2016 410-1 Security training on human rights policies or procedures Human Rights
Code of Conduct
GRI 412: Human Rights Assessment 2016 412-2 Employee training on human rights policies or procedures Code of Conduct
ESG Reporting under the SASB Marine Transportation Standards
Topic SASB Disclosure Title Page in the report / Disclosure
Greenhouse Gas Emissions TR-MT-110.a.1 Gross global Scope 1 emissions Scope 1 & 2 Emissions
TR-MT-110.a.2 Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emission reduction targets, and an analysis of performance against those targets Climate Strategy
Reducing our Emissions
Investing in Low Carbon Solutions
Scope 1 & 2 Emissions
TR-MT-110.a.3 Total energy consumed, percentage heavy fuel oil and percentage of renewable 24,053,927,774 Megajoule (MJ), 83%, 0%
TR-MT-110.a.4 Average energy efficiency design index (EEDI) for new ships EEDI for new ships will be available end of April
Air Quality TR-MT-120.a.1 Air emissions of the following pollutants: NOx (escluding N2O), Sox and particular matter (PM10) Non-GHG Emissions, Waste & Pollution
Ecological Impacts TR-MT-160.a.1 Shipping duration in marine protected areas (MPAs) or areas of protected conservation status Not reported
TR-MT-160.a.2 Percentage of fleet implementing ballast water exchange 8.8 %
TR-MT-160.a.2 Number of spills and releases to the environment Ecosystems & Biodiversity
TR-MT-160.a.3 Number of spills and releases to the environment Non-GHG Emissions, Waste & Pollution
Aggregate volume of spills and releases to the environment 2,100 Gallon US (gal US)
Employee Health & Safety SASB TR-MT-320.a.1 Employee lost time incident rate (LTIR) Safety Management
Accident & Safety Management SASB TR-MT-540.a.1 Number of marine casualties, percentage classified as very serious Safety Management
SASB TR-MT-540.a.2 Number of conditions of Class or Recommendations Operating Highlights
SASB TR-MT-540.a.3 Number of port state control deficiencies Safety Management
Number of port state control detentions 2 Port state control detentions
Business Ethics SASB TR-MT-510.a.1 Number of calls at ports in countries that have the 20 lowest rankings in Transparency International’s Corruption Perception Index 43 Calls at ports listed in the Transparency International’s Corruption Perception Index
SASB TR-MT-510.a.2 Total amount of monetary losses result of legal proceedings associated with bribery or corruption None
Activity Metric TR-MT-000.A Number of shipboard employees Our Workforce
TR-MT-000 .B Total distance traveled by vessels Non-GHG Emissions, Waste & Pollution
TR-MT-000.C Operation days Operating Highlights
TR-MT-000.D Deadweight tonnage Operating Highlights
TR-MT-000.E Number of vessels in total shipping fleet Operating Highlights
TR-MT-000.F Number of vessel port calls Operating Highlights

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