ESG
REPORT
2023
DANAOS CORPORATION
MESSAGE FROM THE
COMPANY’S MANAGEMENT
We need a common vision for a truly sustainable future. The truly value-generating enterprise is one from which everyone can benefit.
This is about responsible long-term management: what we used to call simple “good business”.
We believe that the purpose of business is to solve the problems of the people and the planet profitably, rather than profit from causing problems. Concretely, businesses should seek rapid progress on reducing their carbon emissions and extricating themselves from the economy of disposable consumption. Consumers are already crying out for more environmental alternatives. Smart companies will not be left behind by this trend.
The pathway towards decarbonization of the shipping industry requires synergies and initiatives from all related stakeholders. One of the biggest challenges is the availability and cost of green fuels in the future.
In Danaos we have accelerated our energy transition, investing in 6 methanol-ready container vessels to be delivered in 2024, while the delivery of another 8 methanol-ready container vessels will follow in 2025-2027 with a view to use green methanol when same is available. Two of the above vessels will also hold the ammonia-ready notation.
In 2023 we decided to diversify our portfolio expanding our operations in the dry bulk sector with the acquisition of ten Capsize bulk carriers. At Danaos sustainability is an integral part of our corporate culture and an important regulator in the decision-making process.
We have achieved our Carbon intensity reduction commitments for 2025, two years ahead, while we are on the right track to achieve our other commitments in the environmental, social and governance dimensions as stipulated in this report.
In the rapidly evolving landscape of international trade, a wave of new regulations and directives in international trade are set to take effect as we enter 2024 and shipping companies must steel themselves to effectively address these challenges. In Danaos we have realized at very early stage that digitalization goes along with decarbonization, to this respect we have invested in fully digitalizing our company processes aiming at ensuring full transparency and alignment in our EU ETS/IMO DCS reporting with the official verification tools as well as achieving enhanced control, monitoring and elevated quality of services provided. Digitalization is the way to promote efficient, sustainable operations and strengthen our competitiveness.
Our mission is to provide efficient, safe, and sustainable transportation of consumers goods, it is therefore necessary to carefully balance between reducing carbon emissions and maintain efficient transportation of consumers’ goods. The business community should welcome sensible regulation to stimulate healthy competition. Even the invisible hand sometimes needs a nudge from an Editor. We, being corporate leaders, are now facing the requirements of sustainable growth creating value for all, shareholders, employees, and society.
latin america – u.s. east coast
intra – south america west coast
east coast – south america
north europe – med – far east
north europe – med – australia
europe – u.s. east coast
india subcontinent – u.s. east coast
india – middle east asia – u.s. east coast
southeast asia – australia
intra – asia
far east – australia
far east – u.s. east coast
far east – u.s. west coast
far east – mexico west coast
far east – latin america
far east – east africa
far east – west africa
far east – india
far east – persian gulf
north europe – u.s. east coast – us gulf
med – u.s. east coast
med – mexico – u.s. gulf
u.s. gulf – u.s. east coast – far east
GLOBAL OPERATION
GLOBAL OPERATION
far east – u.s. east coast
far east – u.s. west coast
far east – mexico west coast
far east – latin america
far east – east africa
far east – west africa
far east – india
far east – persian gulf
north europe – u.s. east coast – us gulf
med – u.s. east coast
med – mexico – u.s. gulf
u.s. gulf – u.s. east coast – far east
latin america – u.s. east coast
intra – south america west coast
east coast – south america
north europe – med – far east
north europe – med – australia
europe – u.s. east coast
india subcontinent – u.s. east coast
india – middle east asia – u.s. east coast
southeast asia – australia
intra – asia
far east – australia
COUNTRIES OF OPERATION
Angola, Australia, Bahamas, Belgium, Benin, Brazil, Brunei Darussalam, Cambodia, Cameroon, Canada, China, Colombia, Congo, Costa Rica, Côte d’Ivoire, Croatia, Cyprus, Djibouti,
Dominican Republic, Egypt, El Salvador, France, German, Ghana, Greece, Guatemala, Honduras India, Indonesia, Iraq, Israel, Italy, Jamaica, Japan, Jordan, Kenya, Lebanon, Malaysia, Malta, Mauritius, Mexico, Morocco,
Namibia, Netherlands, New Zealand, Nicaragua, Nigeria, Oman, Pakistan, Panama, Peru, Philippines, Portugal, Qatar, Republic of Korea, Réunion, Romania, Russian Federation, Saudi Arabia, Singapore, Slovenia,
South Africa, Spain, Sri Lanka, Taiwan, Thailand, Togo, Turkey, Ukraine, United Arab Emirates, United Kingdom of Great Britain and Northern Ireland, United States of America, Vietnam
OUR PROFILE
PURPOSE
OF THE REPORT
Welcome to Danaos Corporation’s ESG report, which builds on our recent sustainability efforts. Since 2018, when we published our first ESG report for the fiscal year 2017, we pledged to intergrade sustainability into our business model and have continued this perpetual cycle of integration ever since. We are committed to going above and beyond the IMO’s GHG emission target, adhering to the UN SDGs, and working closely with our stakeholders to meet their expectations and interests in a transparent and thorough manner as part of our ESG strategy and working towards further engagement on sustainability matters. This is the first report following the establishment of ESG Committee and within the year we succeeded to improve our ratings significantly both on climate change matters by disclosure to CDP and about our sustainability metrics by disclosure on S&P Global CSA. In both ratings we were ranked high between the companies of marine transport sector.
In parallel, we have developed our Low Carbon Transition Plan, which provides the roadmap with progressive steps to the ultimate target of low carbon emission future by demonstrating our commitment and progress monitoring on climate initiatives, as well as milestones on the way to carbon neutrality.
Lastly, we have been working with SBTi to increase our commitment in light of the recently launched sectoral trajectories for the shipping industry, which allow us to align our near-and long-term emission reduction targets with the 1.5°C target.
This report is an overall presentation of our annual performance, ESG strategy and targets. We are extremely pleased because it includes our work on a broader range of specific commitments and initiatives to support our employees, suppliers, customers, and communities where we operate around the world. In this section, we share our 2023 environmental, social, safety, and governance performance, as well as key events for any of our teams throughout the world over the year. Danaos Corporation operates based on three fundamental pillars; efficiency, safety, and reliability, to create value for our stakeholders by pursuing environmentally responsible and sustainable solutions.
The Report has been created in accordance with the Global Reporting Initiative (GRI) and SASB and covers the financial period from January 1st, 2023, to December 31st, 2023, in alignment with the financial report.
ABOUT DANAOS
CORPORATION
Danaos Corporation, an international maritime leader, owns and charters a significant fleet of container and drybulk vessels. Our strategic charters with some of the world’s leading liner companies, alongside our voyage charters for drybulk vessels, position us as a central player in supporting global trade.
Our current operations feature a robust fleet of 68 containerships (including 2 BB-chartered) with a total capacity of 421,293 TEUs, complemented by an expansion effort that includes 14 containerships under construction, set to increase our capacity by 107,946 TEUs. This expansive fleet establishes Danaos among the top containership operating lessors globally based on TEU capacity. Our business model is centered on deploying our containership fleet under multi-year charters to major liner companies, ensuring reliable and efficient service routes among key commercial ports worldwide. Our distinguished customers include industry leaders such as CMA-CGM, HMM, MSC, Yang Ming, Hapag Lloyd, ZIM, Maersk, COSCO, OOCL, ONE, PIL, Sealead, Niledutch, Samudera, OSC, and Arkas, reflecting our strong market presence and trusted reputation.
Furthermore, our portfolio includes 7 Capesize bulk carriers with a total DWT of 1,231,157 and 3 additional Capesize carriers under contract, adding another 529,704 DWT. These vessels are primarily aimed at short-term time charters and voyage charters, offering us the flexibility to meet market demands.
Our commitment to leveraging advanced shipping technology, combined with a proven track record of safety, efficiency, and environmental stewardship, underscores our dedication to sustainable operations and has been instrumental in building lasting relationships with our charterers.
Danaos’s principal executive offices are in Piraeus, Greece, supported by a network of crewing offices in Cyprus, Russia, Ukraine, Tanzania, and site offices in South Korea (Republic of Korea) and China. This ensures a strategic and responsive global presence. Our Board of Directors and Executive Officers oversee strategic management and supervise the operations managed by Danaos Shipping Co. Limited, our exclusive manager. Through a comprehensive management agreement, Danaos Shipping provides administrative, technical, and specific commercial management services, furthering our Environmental, Social, and Governance (ESG) principles. Danaos Shipping is responsible for implementing these principles, using specific, measurable metrics to monitor and report progress towards achieving our sustainability objectives.
This report includes Danaos Corporation, its subsidiaries1, and affiliates, including Danaos Shipping Co. Limited, collectively referred to as “Danaos,” “the Company,” or “we.” As a publicly traded entity on the New York Stock Exchange under the ticker “DAC,” Danaos Corporation upholds a commitment to transparency, sustainability, and ethical governance, establishing our role as a responsible corporate participant in the maritime industry and beyond.
1 As referred within the Annual Report of Danaos Corporation: HERE
Our commitment to leveraging advanced shipping technology, combined with a proven trackrecord of safety, efficiency, and environmental stewardship, underscores our dedication to sustainable operations and has been instrumental in building lasting relationships with our charterers.
2023 AT A
GLANCE
OPERATIONAL
HIGHLIGHTS
66 Containerships
for Bulk carriers
Containerships
Bulk carriers
(ESG) HIGHLIGHTS
1 Due to war in Ukraine, it was difficult to access electricity consumption information and associated emissions from our local Office.
The previous year data have been used for the calculation of Scope 2 emissions for our Office in Ukraine.
2 All office employees are working full time and on permanent basis
3 All seafarers are on a contract basis.
OUR MISSION
STATEMENT
