Reducing emissions, driving efficiency

Our climate targets reflect our ambition to reduce greenhouse gas (GHG) emissions and contribute to the decarbonization of shipping in line with global climate goals, including the Paris Agreement.

We aim to reduce the carbon intensity of our fleet by 57% from a 2008 baseline by 2030 and to operate a climate-neutral fleet by 2050. To support this transition, all future vessel investments will be designed to be compatible with a net-zero future.

These ambitions are supported by our transition plan, which guides fleet development, technology investments, and operational improvements. The plan outlines the actions needed to reduce emissions, improve energy efficiency, and support the industry's transition towards lower-carbon shipping.

Our climate targets are aligned with the reporting requirements of ESRS E1.

At Odfjell, fuel-related emissions make up the largest share of our environmental footprint. Categorizing our emissions, from direct fuel use to indirect energy consumption and value-chain impacts, we can pinpoint where reductions will have the greatest effect. This clarity enables us to set targeted goals, track progress, and align our environmental policies with global climate standards, ensuring that our actions lead to real, measurable improvements while maintaining transparency.

We classify greenhouse gas (GHG) emissions in accordance with the GHG Protocol, which groups emissions into three categories:

1. Scope 1: Direct emissions from our operations, primarily fuel consumed by vessels we operate.

2. Scope 2: Indirect emissions from purchased electricity and energy use.

3. Scope 3: Other indirect emissions across our value chain, including shipbuilding, fuel production, supplier activities, and vessel end-of-life treatment.

This framework helps us understand where emissions occur, identify reduction opportunities, monitor progress, and report transparently in line with recognized international standards.

To provide a comprehensive view of our climate performance, we report emissions using two complementary metrics:

• Absolute emissions: The total volume of greenhouse gases emitted.

• Emissions intensity: Emissions relative to transport work, such as per tonne-mile, reflecting the efficiency of our operations.

Together, these measures help us assess our environmental impact, track progress against our climate targets, and identify opportunities for further improvement.

Odfjell has set a target of achieving net-zero emissions by 2050. Through a combination of operational improvements, technology development, and fleet renewal, we are working towards our long-term net-zero ambition. We have published a climate change transition plan in our sustainability statement.

Reaching this ambition will depend on several factors, including the availability of low- and zero-carbon fuels, fleet renewal, and the development of fuel infrastructure, regulations, and market conditions.

In the near term, our focus is on reducing emissions through improved operational efficiency and the adoption of technologies that lower fuel consumption, such as wind-assisted propulsion. Over time, older vessels will be replaced by new ships designed to operate on low- and zero-emission fuels.

While efficiency improvements will continue to reduce emissions in the years ahead, the most significant reductions are expected as alternative fuels become more widely available and the industry transitions away from conventional fossil fuels.

As part of the efforts to drive actions for climate change, Odfjell has in 2019 joined the Getting to Zero coalition – a global alliance working to operate zero-emission vessels on deep-sea trades by 2030.