Gross global Scope 1 GHG emissions to the atmosphere are reported in line with the
GHG Protocol. Scope 1 emissions are direct greenhouse (GHG) emissions that occur
from sources that are controlled or owned by an organization (e.g. emissions associated
with fuel combustion).

In 2022, Odfjell's CO2 emissions decreased by 14% compared to 2021.

Odfjell reports CO₂ emissions to the Carbon Disclosure Project (CDP), the source for metrics used for banks, in accordance with the Poseidon Principles.

Odfjell also reports CO2 via the EU MRV and the IMO DCS protocol according to required scope.

Shipping emissions represent 99% of our total Scope 1 emissions. Odfjell has set a target to have a zero-emission-capable fleet by 2050.

Vessels included in the emission calculations are all vessels operated by Odfjell, including time charter and pool vessels. The number is sensitive to number of ships operated by Odfjell at any time.

Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Odfjell converts purchased electricity to metric tonnes of CO2 equivalents location-based.These numbers are reported in the Carbon Disclosure Project (CDP).

Scope 2 emissions represent less than 1% of our total GHG emissions.

Terminals represent 96.7% of our total Scope 2 emissions.

Scope 3 emissions covers our upstream and downstream value chain emissions. Odfjell has for 2022 in additon to former reporting used a spend-based approach to measure Scope 3 emissions in category 1 Purchased Goods and Services and category 3 Fuel-and energy related activities (fuel production). Odfjell’s former Scope 3 emissions reporting included mainly category 5 Waste generated in operations,  category 6 Business travel and category 7 Employee commuting. For this reason the Scope 3 emissions data for 2022 are not comparable to former years. Our biggest Scope 3 emissions source is related to production of fuel, and represent 86% of our Scope 3 emissions.

The calculated Scope 3 emissions data on category 1 and 3 represent a confidence fraction of 97.4%. The project to calculate Scope 3 category 1 and 3 emissions was accomplished by following the GHG Protocol methodology, more specifically in what refers the spend-based approach. We resort to the Simapro 9.5 software for data modulation, supported by Re-Flow, where we have access to Exiobase database to select the necessary emission factors for the spend-based approach.

We have invested in multiple electrical charging stations at the headquarters in Bergen in order to incentivize the use of electrical cars for commuting.

Odfjell uses the Annual Efficiency Ratio (AER) and the Energy Efficiency Operational Indicator (EEOI) to monitor fleet efficiency performance over time. The indicators enable us to measure the fuel efficiency of the fleet, and to gauge the effect of any improvement initiatives.

AER is used by the IMO for its official Carbon Intensity Indicator (CII). Odfjell reports preliminary AER, for controlled fleet and operated fleet, every quarter.

Odfjell has set a climate target to improve carbon intensity (using AER) by 50%, by 2030, compared to 2008 baseline.

*Operated fleet – vessels commercially operated and/or managed by Odfjell,
controlled fleet – operated vessels excl. TC/Pool vessels and incl. owned vessels operated by others.

Odfjell supports the Paris Agreement and the IMO strategy to reduce GHG emissions and global warming. Odfjell will contribute to the achievement of SDG 13 to combat climate change and its impacts by reducing GHG emissions.

Odfjell has set ambitious climate targets that go beyond those set by the IMO. Odfjell's climate targets are approved by the Board of Directors.

Our climate targets are:
1) We will cut greenhouse gas emission by 50% by 2030, compared to 2008 (intensity target for carbon, measured in Annual Efficiency Ratio of CO₂)

2) We are dedicated to pursuing a zero-emission strategy, and will only order newbuildings with zero-emission capable technology

3) We will have a zero-emission-capable fleet from 2050

4) We will actively support initiatives to develop technology and infrastructure for decarbonization, energy efficiency and support international regulation to drive zero emission for our industry and our value chain

By setting ambitious climate targets, Odfjell is committed to reducing GHG emissions. In 2022 we have reduced carbon intensity by 49% compared to IMO baseline for 2008, and we expect to achieve the 50% reduction target in 2023. We intend to set new targets for 2030 in 2023.

Scope 2 emissions represent less than 1% of our total GHG emissions, and targets have not
yet been set. Still, we are dedicated to the efficient use of energy, and have made several
energy improvements at our headquarters.

Odfjell conducts climate risk assessments and reporting in line with Task Force on Climate-related Financial Disclosures (TCFD) and the Non-financial Reporting Directive. This assessment is updated and available on our website here. The nature risk assessment follows the Taskforce on Nature-related Financial Disclosures (TNFD) framework.

In 2020, Odfjell switched from Heavy Fuel Oil (HFO) to Very Low Sulphur Fuel Oil (VLFSO) and Marine Gas Oil (MGO). Seven scrubber-fitted pool vessels are included in the reporting.

Fuel consumption in 2022 was as follows:
• 5.10% HFO (5.18% in 2021)
• 17.53% MGO (17.53% in 2021)
• 77.37% VLSFO (77.29% in 2021)

Total energy consumption is calculated based on a model from CDP that includes all energy consumed related to purchased electricity for terminals and offices, as well as consumed fossil fuels and gases for vessels, terminal sites, and owned cars.

We are not able to monitor SO₂ emissions directly, but we can calculate a weighted average
based on all bunker delivery notes for purchase in 2021.

None of Odfjell's owned ships are fitted with open- or closed-loop scrubbers. Odfjell’s
current policy is that we do not retrofit our fleet with scrubbers to ensure sulphur regulation.

Seven ships owned by TRF entered an Odfjell commercial pool in 2022. These vessels are
fitted with an open-loop scrubber. The pool closed in December 2022, and Odfjell does
not operate scrubber fitted vessels.

At Odfjell Terminals, our storage tanks are sealed and pressurized. This reduces emissions
more than regular atmospheric storage tanks for chemicals.

Vapors generated by product movements are managed through vapor balancing to reduce
emissions, and any remaining vapors are flared, along with breathing losses from products
requiring vapor treatment.

The Odfjell fleet is, or will be, fitted with ballast water treatment systems (BWTS) to prevent the spread of harmful aquatic organisms from one region to another, thus complying with the BWM Convention.

As of the end of 2022, Odfjell has 52 ships that fall within the scope of the requirements and of those, 50 have BWTS installed. Two ships operate with flag dispensation due to cabotage trade.

All pool and time charter vessels in the Odfjell fleet are in compliance with the BWM Convention.

The fleet is fitted with compliant and class-approved systems to handle effluent water, wastewater, and oily water. The systems are registered, and subject to inspections by authorities.

Marpol Annex V is strictly enforced on our vessels by company procedures and all have their ship specific Garbage Management Plan (GMP).

The GMP includes familiarization/training of personnel, posters to be displayed and detailed process for garbage disposal with record keeping requirements.

All garbage is segregated onboard with dedicated containers for plastics, food wastes, domestic wastes, used cooking oil, incinerator ashes & electronic waste.

Further to these measures we have also implemented garbage compactors on all our vessels to further improve handling and recycling. As for operational wastes and mooring-lines, this is collected and delivered to reception facilities.

At our terminals, we have wastewater treatment systems for effluent management. The remaining waste at our Houston terminal is treated off-site by the Houston terminal Gulf Coast Waste Disposal Authority (GCWDA), to which we are connected by pipeline for wastewater.

Our storage tanks are designed to reduce hazardous waste. The sloped design of the tank bottoms limits residual product in tanks, making cleaning easier and better. We use infrared inspection techniques to detect heat leaks due to damaged insulation. This is then repaired, reducing heat losses and thereby reducing energy consumption.

We also employ acoustic inspection techniques for nitrogen and compressed air systems to eliminate small leaks and reduce energy consumption.

Odfjell supports and follows the recommendations of the Norwegian Shipowners' Association, the EU and the IMO.

Responsible and compliant ship recycling is a significant part of the circular economy, keeping resources in use for as long as possible and minimizing waste.

Ship recycling is an essential industry for sustainable production, and it supports the developing economies of several countries.

Odfjell has sold one ship for recycling in 2022, the process is in full compliance with applicable rules and regulations of the ship's flag state and applicable international rules and regulations.

See separate article on recycling in this annual report (page 53).

Our shipping operations follow the main routes between major ports around the world. We follow international and local regulations and guidance to avoid protected areas.

We do not currently track time and operations in areas of protected conservation status in accordance with UN Environment Programme World Conservation Monitoring Centre (UNEP WCMC).

Emission Control Areas (ECAs), or Sulphur Emission Control Areas (SECAs), are sea areas in which stricter controls are established to minimize airborne emissions from ships, as defined by the MARPOL Protocol.

For our fleet, all spills of any substance – harmful or not – are registered and handled as a spill. We also register whether the spill has been contained on board or affected the environment beyond.

At our terminals, we strive to further reduce the number of spills through better inspections and additional operational training.

There was no pollution outside the terminals caused by spills in 2022. Terminals are complying with the regulations mentioned in their permits.

Sustainable procurement is important to Odfjell, and we verify and ensure suppliers will follow our Suppliers Conduct Principles (CSCP). We also meet with our major suppliers, and have initiated requests for reporting of CO2 for the products we buy.

Every year, Odfjell reports its status on green and sustainable procurement to EcoVadis, including information on our interactions with our suppliers and the suppliers' performance in ESG audits, ESG clauses in contracts, training etc.

Odfjell is also a member of a procurement collaboration that screens suppliers on ethics, the environment, and human rights, accounting for 25% of total procurement volume. Odfjell has also asked all of its major suppliers to report carbon emissions, which will be used to calculate Odfjell's Scope 3 upstream emissions. We also completed a risk assessment and classified our suppliers for further investigation. We intend to improve supplier screening and follow-up in our procurement system. Odfjell is a member of the EcoVadis platform and has a silver rating for 2022.

Following the new Transparency Act, Odfjell will increase follow up, audits and cooperation with suppliers on Human Rights in the value chain.