Environment | Social | Governance
Download ESG Report 2021

Our ESG report 2021

Our ESG report 2021

  • Experts in Shipping
  • Acknowledged Innovators
  • Environmentally Active

Message from our CEO

We need a common vision for 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.

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 the society.

Dr. John Coustas
Chairman, President & CEO

2021 Operational Highlights at a glance

2

Offices

63

Vessels

20,678

Operating Days

1,459

Seafarers

5,927,039

DWT

5,307,343

Distance Traveled

124

Shore Employees

403,793

TEU

4,844

Port Calls

Our Profile

Purpose of the Report

Welcome to Danaos Corporation’s ESG report, which builds on our sustainability progress over the last years – particularly since 2021 when we committed to building a sustainable business. Herein we present our environmental, social, safety, and governance performance during 2021 as well as significant events for any of our teams across the globe during the year.

Danaos Corporation operates based on three fundamental pillars; efficiency, safety, and reliability, to create value for our stakeholders while striving on environmentally friendly and sustainable solutions. We follow the IMO’s GHG emission targets, the UN SDG’s and we are determined to work closely with our stakeholders to meet their expectations and interests in a transparent and comprehensive way.

This report is an overall presentation of our annual performance, ESG strategy and targets and, for the first time, we are extremely satisfied since it includes our work on a wider range of specific commitments and initiatives to support our employees, suppliers, customers, and communities where we operate around the world.

As a supplement to this annual ESG report, we prepared the Low Carbon Transition plan (Danaos LCTP).

About Danaos Corporation

Danaos Corporation is one of the largest independent owners of modern, large-size containerships. Our current fleet of 77 containerships aggregating 482,789 TEUs, which includes 6 containerships on order aggregating 46,200 TEU with scheduled deliveries in 2024, ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Our fleet is chartered to many of the world’s largest liner companies on fixed-rate charters. Danaos Corporation’s shares trade on the New York Stock Exchange under the symbol “DAC”.

Our distinct edge in advanced shipping technology and long track record of safety, efficiency, and environmental responsibility has helped us forge lasting relationships with our customers. Our customers portfolio includes CMA-CGM, Hyundai Merchant Marine (“HMM”), MSC, Yang Ming, Hapag Lloyd, ZIM, Maersk, COSCO, OOCL, ONE, PIL, Evergreen, KMTC, Niledutch, Samudera, SITC and TS Lines.

Our Board of Directors and Executive Officers provide strategic management for our company while they also supervise, the management of these operations by Danaos Shipping Co. Limited, our exclusive Manager. Danaos Corporation has a management agreement with our exclusive manager Danaos Shipping for the provision of administrative, technical, and certain commercial management services. Danaos Corporation, through the aforementioned management agreement has shared and embedded its ESG commitments and goals to Danaos Shipping that is tasked with the proper implementation of these commitments and goals, using specific measurable metrics to track, monitor, assess and communicate the success or failure of our objectives.

Within this report, Danaos Corporation, its subsidiaries* and affiliates, including its exclusive Manager Danaos Shipping Co. Limited, to be called collectively as “Danaos” or the “Company” or “we”.

* As referred within the Annual Report of Danaos Corporation.

2021 Sustainability (ESG) Highlights

ENVIRONMENTAL
2021
*Scope 3 emissions concern values received so far from our partners
% Of fleet complying with the Poseidon Principles
19%
Fuel Consumption – HFO-LSFO (MT)
1,120,276
Fuel Consumption – MGO (MT)
66,922
Power Efficiency Index
30.5% (for 63 vessels)
AER Value (gr/DWT*miles)
8.7
Reduction in CO2 emissions per ton*miles compared with the IMO’ 2030 carbon intensity targets
41.4%
Emissions SOx (tn SOx)
10,041
SOx Eff (grSOx/tn*miles)
0.04
NOx (tn NOx)
112,689
NOx Eff (grNOx/tn*miles)
0.48
GHG Emissions Intensity (grCO2/tn*miles)
16.01
Scope 1 Emissions (MT CO2eq.)
3,734,804
Scope 2 Emissions (MT CO2eq.)
534.70
Scope 3 Emissions (MT CO2eq.) *
342,849
Total Freon Capacity (tns)
22.1
Total Freon Losses (%)
5%
Plastics Recycling (m3)
2,105
Cooking Oil Recycling (m3)
10.2
E-Waste Recycling (m3)
94
Incidents of non-compliance with environmental laws and regulations
0
Total Ballast (m3)
5,401,298
Ballast Exchange compared to last year
12 % (decrease)
Change in FO consumption per ton of ballast exchange compared to last year
45% (increase)
SOCIAL
2021
Office employees
124
Seafarers
1,459
Decrease of consumption of A4 sheets
7%
Employee Hires
12
% Of Women Employees
45.1%
% Of Women in Managerial Positions
22.72%
Average retention rate (office employees)
94.1%
Average retention rate (crew)
84.6%
Training hours (office employees)
289
Training hours (crew)
5,842
Marine casualties
1 non-serious incident
LTIs
16
LTIF Rate
1.29
Near Misses Reports
274
GOVERNANCE – OPERATIONS
2021
Number of Offices
2
Number of Vessels
63
Operating Days
20,678
DWT
5,927,039
Distance Travelled
5,307,343
TEU
403,793
Port Calls
4,844
Number of Material Topics
14
Number of internal policies, codes, guidelines
8
Number of committees
3
Number of Board Members
7
Number of Independent Board Members
5
Port calls in 2021 were in countries in the 20 lowest rankings of Transparency International’s Corruption Perception Index (CPI)
0.15%
Number of bribery, fraud, corruption incidents
0
Internal Assurance Audits
50
Material weaknesses or significant deficiencies identified in 2021 internal audits or external financial audits
0
Internal audits (ISM/ISPS related)
72
Third party audits (ISM/ISPS related)
32
MLC inspections
49
Inspections without deficiency
80%
Inspections per Vessel
2.18
Deficiency/Inspection
0.51
ISM related
0.19%

Our Mission Statement

Danaos seeks to provide safe, efficient and cost-effective seaborne container transportation, remain the premier choice among containership owners and create value for all stakeholders. To meet our goals, we continuously make substantial investments in our operational, technical, and financial infrastructure while striving on sustainable and environmentally friendly solutions.

Our Vision – Our Values

We implement the highest standards on efficiency, safety, and reliability by:

Enhancing the training of all personnel.We believe in training and engaging our personnel both in the office and onboard.
Fully integrating operations and organizational strategy.Our operations are fully aligned with our strategy, we align planning and actions.
Actively participating or leading research & the development of projects.We believe in the value of research.
Promoting company culture and bonding on all personnel on board.We believe in teamwork and have a culture that supports bonding.
Building competitive advantages to become the leader in our sector.We want to be leaders in the sector.

Our Scope and Global Operations

danaos-sea-route-A
• FAR EAST – U.S. EAST COAST
• FAR EAST – U.S. WEST COAST
• FAR EAST – MEXICO WEST COAST
• FAR EAST – LATIN AMERICA
danaos-sea-route-B
• FAR EAST – EAST AFRICA
• FAR EAST – WEST AFRICA
• FAR EAST - INDIA
danaos-sea-route-C
• 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
danaos-sea-route-D
• LATIN AMERICA – U.S. EAST COAST
• INTRA-SOUTH AMERICA WEST COAST
• EAST COAST SOUTH AMERICA
danaos-sea-route-E
• NORTH EUROPE – EAST MED
• EUROPE – U.S. EAST COAST
• INDIA SUBCONTINENT – U.S. EAST COAST
• INDIA – MIDDLE EAST ASIA – U.S. EAST COAST
danaos-sea-route-F
• SOUTHEAST ASIA -AUSTRALIA
• INTRA-ASIA
• FAR EAST - AUSTRALIA

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www.danaos.com

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