Environment | Social | Governance
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ESG report 2022

  • Experts in Shipping
  • Acknowledged Innovators
  • Environmentally Active

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, with a view to use green methanol when same is available.

In Danaos our ESG policy is the core of our strategy. We are on the right track to achieve our core commitments for 2025, in the environmental, social and governance dimensions as stipulated in this report.

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.

Dr. John Coustas
Chairman, President & CEO

In Danaos our ESG policy is the core of our strategy. We are on the right track to achieve our core commitments for 2025, in the environmental, social and governance dimensions as stipulated in this report.

Global Operation

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
• FAR EAST - PERSIAN GULF
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 – MED – FAR EAST
• 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

2022 at a glance

69

Vessels

24,509

Operating Days

127

Shore Employees

5,088,623

DWT

5

Offices

5,846,487

nm Distance Traveled

1,435

Seafarers

426,160

TEU

4,090

Port Calls

Highlights 2022

ENVIRONMENTAL

20%
Of fleet complying with the Poseidon Principles
1,106,649
Fuel Consumption – HFO-LSFO (MT)
54,720
Fuel Consumption – MGO (MT)
7,165
Fuel Consumption – Biofuel (MT)
31.9%
Fuel Consumption – Power Efficiency Index (*For 63 vessels)
8.46
AER Value (gr/DWT*miles)
42.6%
Reduction in CO2 emissions per ton miles compared with the IMO’ 2030 carbon intensity targets
9,809
Emissions SOΧ (tn SOΧ)
0.04
SΟΧ Eff (grSOΧ/tn miles)
110,404
NOΧ (tn NOΧ)
0.47
NOΧ Eff (grNOΧ/tn miles)
15.68
GHG Emissions Intensity (grCO2/tn miles)
3,675,991
Scope 1 Emissions (ΜΤ CO2eq.)
473.7
Scope 2 Emissions (MT CO2eq.)
330,655
Scope 3 Emissions (MT CO2eq.)*
22.1
Total Freon Capacity (tns)
2.1%
Total Freon Losses (%)
2,021
Plastics Recycling (m3)
11%
increase vs. ‘21 (Lower than 2019) Consumption of A4 sheets
12
Cooking Oil Recycling (m3)
70
E-Waste Recycling (m3)
23
Ashes (m3)
11%
(decrease)
Ballast Exchange compared to last year
12%
(decrease)
Change in FO consumption per ton of ballast exchange compared to last year
*Scope 3 emissions concern values received so far from our partners

SOCIAL

127
Office employees1
1,435
Seafarers2
20
Employee Hires
Contractors
44%
% Of Women Employees
22.7%
Of Women in Managerial Positions
90%
Average retention rate (office employees)
81.2%
Average retention rate (crew)
1,397
Training hours (office employees)
4,966
Training hours (crew)
None
Marine casualties
23
LTIs
1.84
LTIF Rate
287
Near Misses Reports
1All office employees are working full time and on permanent basis. 2All seafarers are on a contract basis.

GOVERNANCE - OPERATIONS

5
Offices
69
Vessels
24,509
Operating Days
5,088,623
DWT
5,846,487
Distance Travelled
426,160
TEU
4,090
Port Calls
18
Material Topics
8
Internal policies, codes, guidelines
4
Committees
6
Board Members
4
Independent Board Members
0.2%
Port calls in countries in the 20 lowest rankings of Transparency International’s Corruption Perception Index (CPI)
0
Briberies, fraud, corruption incidents
50
Internal Assurance Audits
0
Material weaknesses or significant deficiencies were identified through internal assurance or external financial audits
76
Internal audits (ISM/ISPS related)
21
Third party audits (ISM/ISPS related)
5
MLC inspections
67%
Inspections without deficiency
2.32
Inspections per Vessel
0.90
Deficiency / Inspection
0.26%
ISM related

Our Profile

Purpose of the report

Welcome to the Danaos Corporation’s ESG report. This report reflects our ongoing commitment to sustainability, a commitment that was first formalized in 2018 with the publication of our initial ESG report for fiscal year 2017. Since then, we have maintained this cycle of integration, demonstrating our commitment to exceed the International Maritime Organization’s (IMO) GHG emission target and adhere to the United Nations’ Sustainable Development Goals (UN SDGs). We strive to meet our stakeholders’ expectations and interests transparently and thoroughly as part of our ESG strategy.

The year 2022 marked a significant milestone of our journey with the establishment of the ESG Committee, by our Board of Directors, that has been instrumental in guiding our sustainability efforts. For the first time, we disclosed our climate change strategies to the Carbon Disclosure Project (CDP), earning a C rating. Our diligent efforts in supplier engagement were also recognized with a CDP Supplier evaluation B- score, a score above the marine transport sector’s average. Simultaneously, we developed our Low Carbon Transition Plan. This strategic roadmap outlines our path to a future with significantly lower carbon emissions and showcases our dedication to climate initiatives. It also sets clear milestones towards achieving carbon neutrality. In addition, we have been collaborating with the Science Based Targets initiative (SBTi) to align our emission reduction targets with the ambitious 1.5°C target.

This report presents an overview of our annual performance, ESG strategy, and targets. It encompasses our extensive commitments and initiatives to support our employees, suppliers, customers, and the communities where we operate globally. We share our 2022 environmental, social, safety, and governance performance, along with key events and achievements of our teams worldwide throughout the year. Danaos Corporation operates on three fundamental pillars: efficiency, safety, and reliability. These principles guide us in creating value for our stakeholders while pursuing environmentally responsible and sustainable solutions. The ESG 2022 report is a source of pride as it highlights our wide-ranging commitments and initiatives that support all our stakeholders.

We are extremely pleased because ESG 2022, 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

About Danaos Corporation

Danaos Corporation is one of the largest independent owners of modern, large-size containerships. Our fleet is chartered to many of the world’s largest liner companies on fixed-rate charters. Our current fleet of 74 containerships aggregating 467,493 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, KMTC, Niledutch, Samudera, SITC, RifLine, OSC and TS Lines.

Danaos Corporation principal executive offices are in Piraeus, Greece and owns crewing offices in Cyprus, Russia, Ukraine, and site office in South Korea (Republic of Korea).

Our Board of Directors and Executive Officers provide strategic management for our company, while also supervising 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 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. This is a Danaos Corporation report along with its subsidiaries3 and affiliates, including its exclusive Manager Danaos Shipping Co. Limited, to be called collectively as “Danaos” or the “Company” or “we”.

3As referred within the Annual Report of Danaos Corporation
https://www.danaos.com/investors/financial-information/annual-reports/default.aspx

Our current fleet of 74 containerships aggregating 467,493 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 Mission Statement

Danaos strives to deliver safe, efficient, and cost-effective seaborne container transportation, as well as to remain the preferred choice among containership owners and to create shareholder value. To achieve our goals, we make significant investments in our operational, technical, and financial infrastructure while pursuing sustainable and ecologically friendly solutions.

Our Vision – Our Values

World-Class Shipping, Leading-Edge Expertise

www.danaos.com

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