GOVERNANCE
We believe that strong corporate governance is essential to our success and to building trust with our stakeholders. We conduct our business on a foundation of integrity, honesty and fairness, while rigorously complying with all relevant legal and regulatory requirements.
Material
Issues
Economic performance
Anti-corruption
Anti-competitive behavior
Tax
Ethical Business Conduct
Customer Satisfaction
Goals
2021-2025
Status:
9 out of 12
governance goals for 2024 have been already embedded.
SDGs
Corporate Governance: The Cornerstone of Excellence
At Danaos, corporate governance is not just a framework— it is a reflection of who we are. Our commitment to transparency, accountability and ethical leadership guides our decisions and strengthens the trust we share with stakeholders. These principles are deeply embedded in how we operate, ensuring sustainable growth and resilience in a fast-evolving global environment.
The Board of Directors, supported by a robust governance structure, plays a pivotal role in upholding these values while aligning strategic goals with long-term success.
Danaos abides by the:
- Corporate Governance Guidelines
- Code of Business Conduct and Ethics
- Code of Conduct & Ethics for Corporate Officers & Directors
- Ethics and Compliance Policy
- Anti-Fraud Policy
- Insider Trading Policy
- Anti-Bribery & Anti-Corruption Policy
- Anti-Money Laundering Policy
- Stakeholders Engagement Policy
- Health & Safety Policy
- Environmental policy
- Information Security Policy
- Compensation Recovery Policy
Looking Ahead: Governance Goals for 2025
Danaos remains committed to evolving governance best practices to meet the demands of a rapidly changing global landscape.
With trust, accountability and sustainability as our guiding principles, Danaos is ready to lead the maritime industry into the future with integrity and innovation.
Governance Structure, Composition and Responsibilities
The Board of Directors, supported by a robust governance structure, plays a pivotal role in upholding these values while aligning strategic goals with long-term success. It is composed by executive, non-executive, and independent members, embodying a breadth of nationalities and diverse areas of expertise. With an average tenure of 15.68 years, the Board benefits from a depth of institutional knowledge and continuity. At present, its composition is exclusively male. However, we acknowledge the critical importance of fostering diversity at the highest levels of governance. To this end, we have implemented targeted recruitment strategies and mentorship initiatives designed to enhance the representation of women and other underrepresented social groups, reflecting our commitment to cultivating a more inclusive and balanced leadership.
Danaos’ Board is supported by four key committees, each playing a vital role in ensuring high governance standards:
Board Nomination & Remuneration
The Nominating and Governance Committee oversees a structured Board nomination process, evaluating candidates based on professional expertise, independence and alignment with Danaos’ mission. The selection process prioritizes diversity of experience and strategic foresight.
The Compensation Committee, composed of independent directors, ensures that executive compensation is fair, transparent and performance-driven, directly linking remuneration to long-term sustainability goals. In 2024:
- Bonuses were awarded to executive officers based on ESG and environmental targets.
- 1% of net income was allocated to employees who contributed to achieving sustainability goals.
- More information about the remuneration policies, procedures and figures are provided in Danaos annual report for 2024.
Leadership and Oversight: The Heart of Danaos
Danaos’ governance structure is led by a six-member Board of Directors, comprising four independent directors and one non-executive director. This composition ensures balanced perspectives, independent oversight and compliance with New York Stock Exchange (NYSE) standards. The Board’s expertise spans maritime operations, finance, cybersecurity, technology and sustainability—ensuring sound strategic decision-making in a highly regulated and evolving industry.
In 2024, the Board convened six times, achieving an 89% attendance rate, demonstrating their commitment to active oversight and accountability. To further strengthen governance, Danaos introduced Corporate Governance Self-Assessment Analysis Dashboards, based on the Board and Committees’ annual performance self-evaluations. These dashboards facilitate continuous improvement by identifying key achievements and areas for enhancement.
The Chairman, who also serves as CEO, bridges governance and operations, enabling agile decision- making and seamless communication. To ensure independence and mitigate potential conflicts of interest, the Board has established clear policies, with the Audit Committee overseeing related-party transactions and ethical compliance.
"Danaos executive management continuously demonstrates a commitment to the highest ethical standards. They are judicious in their judgements, committed to flawlessly representing their constituencies including societal obligations and have created one of the most positive working environments in the industry."
Myles R. Itkin
Director, Audit Committee Chair
Anti-Corruption
Our comprehensive anti-corruption strategy integrates robust risk management with our commitment to ethical business conduct, reinforcing our dedication to integrity. By combining strategic risk mitigation with principled engagement, we effectively address corruption risks while strengthening our operational resilience.
Ethics and Transparency: Built on Integrity
Ethics and transparency are at the core of Danaos’ governance approach. As a member of the Maritime Anti-Corruption Network (MACN), Danaos collaborates with industry leaders to combat corruption and promote ethical business conduct across the maritime sector.
In 2024, Danaos strengthened its anti-corruption training programs by integrating MACN materials into employee and seafarer training initiatives. Additionally, anonymous whistleblowing channels and grievance mechanisms provide employees and stakeholders with secure and confidential avenues to report concerns. There were zero cases of confirmed breaches of the Code of Conduct & Ethics for 2024.
Testimonial: "The MACN training gave me the tools I needed to handle complex ethical situations. It reinforced Danaos’ commitment to integrity at every level."
Confirmed incidents of corruption and actions taken
Danaos’ strong zero-tolerance stance on corruption is reflected in our results:
Proactive Risk Management: Navigating Challenges with Confidence
Danaos’ two-tiered risk management framework ensures a structured approach to identifying, assessing, and mitigating risks across financial, operational, regulatory, and sustainability domains. Using scenario planning and STEEPLE analysis, we anticipate challenges and maintain business resilience.
Risk Governance & Three Lines Model
Danaos follows a three lines model to ensure risk management is effectively embedded across the organization:
Information Security and Data Privacy: Leading with Integrity
Danaos is committed to safeguarding sensitive data and cybersecurity in an increasingly digital world.
- Zero cybersecurity or data privacy breaches were reported in 2024.
- Cybersecurity governance is led by the Board and COO, while execution is managed by the Chief Information Security Officer (CISO) and IT security teams.
- Danaos achieved ISO 27001:2022 certification in 2024 and we are actively pursuing ISO 27701 certification for enhanced data privacy measures.
Training and Employee Development: Empowering Excellence
Sustainable Procurement: Extending ESG Beyond Danaos
Sustainability is embedded not only in Danaos’ operations, but also in how we collaborate with our partners. Our Supplier Code of Conduct ensures that procurement practices align with the highest ethical, environmental and social standards, extending our ESG commitments across our supply chain.
Through sustainable procurement initiatives, Danaos works closely with suppliers and subcontractors to:
Our procurement strategy prioritizes suppliers who demonstrate a commitment to ESG best practices, ensuring that our supply chain supports our long-term sustainability objectives.
Danaos’ commitment to supplier ESG compliance and transparency is a strong step toward responsible and sustainable operations. By integrating ESG principles into procurement and ensuring end-to-end visibility, we’re reinforcing ethical sourcing and carbon reduction efforts. The key strengths of this approach include comprehensive suppliers’ assessments that help us identify material risks and enforce ESG standards, public disclosure and transparency that strengthen stakeholder trust, integrated ESG procurement model embedding sustainability into supplier selection and strong focus on ethical and environmental standards addressing human rights, anti-corruption and carbon reduction.
Our systematic supplier screening process ensures that ESG considerations are embedded in our supply chain decisions. This proactive approach helps mitigate risks, improve compliance and drive sustainability across our operations. The approved list of suppliers is comprised of suppliers meeting financial integrity, legal integrity, reliability, material and service cost and delivery time predefined criteria. For significant key suppliers, ESG criteria have also been introduced.
A suppliers’ desk assessment with verification of evidence is in place. This approach ensures that suppliers not only commit to ESG principles but also provide tangible proof of their adherence. The Danaos ESG Assessment Questionnaire, in which ESG rating criteria are reported, can be found in the following LINK
Suppliers are requested to provide supporting evidence on their ESG policies, practices, performance and public disclosures. This information is then reviewed, resulting in an appraisal of the supplier’s ESG performance.
We have set prerequisites and mandatory criteria which, in case they are not fulfilled, the corresponding suppliers are removed from the approved suppliers list. Removing non-compliant suppliers reinforces accountability and strengthens our sustainable procurement framework. The 2024 assessment resulted in zero suppliers being excluded from the list.
Below is the summary of our suppliers’ screening results for 2024:
In the scope of this questionnaire with ESG criteria, according to UN Compact and GRI standards, our suppliers are requested to report not only on their Scope 1+2 emissions related to Danaos activities, but also on all ESG aspects that are considered important for sustainable business.
Within 2024 the number of our suppliers sharing their Scope 1+2 emissions increased significantly, as 18 responses provided relevant data. Of course, there is work to be done to this respect, however the first steps have been successfully made to this direction. Our transparent sharing of Scope 1+2 emissions data with clients is a valuable step toward collaborative decarbonization. By enabling clients to assess their environmental impact within the value chain, we help drive informed decision-making and strategic refinements.
We have developed the Supplier Code of Conduct that articulates our expectations for ethical behavior, legal compliance and responsible practices among all our suppliers and subcontractors. Our Supplier Code of Conduct is a strong foundation for ensuring ethical and responsible supply chain practices. By aligning with international standards and the UN Global Compact, we are reinforcing sustainability, human rights and corporate responsibility across our network.
In 2024, we sent our ESG questionnaire to 122 significant suppliers (above $200k business and more than 20 p personnel), which represent more than 90% of our supplier turnover. These suppliers include shipyards, spares, lub oil and paint suppliers, travel agents, insurers, etc.
The 66% of total have replied and all of them have reported that the adhere to Danaos Code of Ethics, part of which is Danaos Supplier Code of Conduct (https://www.danaos.com/investors/corporate-governance/ corporate-governance-guidelines/default. aspx). The foundation for integrating sustainable procurement into our ESG strategy was built in 2022, in 2023-2025 we focus on scaling up our supplier engagement.
During 2024, we introduced a Supplier ESG Scorecard, based on supplier ESG practices and performance. Our aim is for the suppliers with low ESG rating to engage in a constructive dialogue, identify the root causes of their low performance, listen their ideas on alternative plans and practices for improving their ESG score, share our view on best practices and capture measurable, achievable solutions, guide and support them on the implementation of corrective and improvement actions within a realistic timeframe. ESG assessment during 2024 resulted in no underperforming Suppliers, therefore no auditing took place and no need for implementation of corrective action plans.
We have established a sustainable procurement steering committee that meets on a quarterly basis to review progress and discuss risks and consequently plan remedial measures to assure solid sustainability performance. This committee reports to the COO, who is responsible for ensuring alignment of ESG vision and implementation.
Customer Added – Value Program
Our customer strategy is based on a spirit of partnership and our customer needs are the compass that paves the way for necessary improvements in our services. Our commitments refer to certain focus areas and are explicitly described in our “Customer Added-Value Program” methodology, which was published in 2024 and encompasses the 2023 Customer Added Value Dashboard with the KPIs linked to each element that is relevant to our customers’ added value creation. Additionally, an updated version of this document will be published within Q2 2025.
Danaos Financial Integrity
Maintaining a healthy financial status is essential for sustaining long-term growth, innovation and ESG commitments. A strong financial foundation enables continued investments in efficiency, sustainability and customerfocused improvements. Financial KPIs, such as EBIDTA, which are the metrics of a company’s financial integrity along with a commitment to transparency, ethical business practices and mutual trust build a concrete foundation for longterm collaboration.
Danaos Code of Business and Ethics
Our commitment to transparency, ethics and fairness strengthens Danaos’ reputation and fosters trust-based partnerships with customers. Upholding these values ensures long-term success and reinforces Danaos leadership in sustainable and responsible business practices. Each employee of the Company, including each of the Company’s officers, is responsible for conducting the Company’s business in a manner that demonstrates commitment to the highest standards of integrity.
Reliability in the transportation of goods
Danaos sets the target of fleet utilization due to operational issues at >99%. This target has been met every year for the last 10 years. Our focus on uninterrupted, high-quality fleet operations ensures safe, efficient and timely transportation, which is essential for maintaining customer trust and delivering value. This commitment strengthens our competitive advantage and operational excellence.
Professional Crew
Our target for crew retention rate is > 80%. Seafarers is the backbone of operations, which highlights the importance of competence, training and well-being in ensuring safe and efficient ship operations. We invest in crew development since not only does it enhance safety but also boosts overall fleet performance.
Optimized Performance
The Danaos Low Carbon Transition Plan (LCTP) offers a comprehensive overview of our dedication to climate action and describes our decarbonization strategy, surpassing the targets set by the IMO. Our LCTP is a well-structured and ambitious framework for achieving decarbonization. Aligning with IMO targets, IEA SDS and the Paris Agreement ensures that Danaos remains at the forefront of sustainable shipping. The 50% carbon intensity reduction by 2030 and net-zero goal by 2050 demonstrate strong initiative in the industry’s green transition.
Danaos’ role as a strategic partner in decarbonization strengthens customer relationships and reinforces industry leadership in sustainability. By sharing efforts and vision, we create value beyond compliance—helping clients achieve their sustainability goals efficiently.
Transparency and Data Sharing
Our proactive approach to data sharing, transparency and on-demand emission verification aligns perfectly with evolving EU ETS, FuelEU Maritime and IMO CII regulations. Ensuring compliance while leveraging data for strategic decision-making helps Danaos stay ahead in the decarbonization landscape.
Our collaborative data-sharing approach through Joint Industry Projects (JIPs) and API development is a strong step toward real-time performance optimization and route efficiency. Establishing a common understanding with clients ensures more effective decision-making and emissions reduction.
Sustainable Structure
At Danaos, sustainability is an integral part of our corporate culture and an important regulator in the decision-making process. The company is committed to issue an updated ESG report annually according to GRI & SASB standards. We are also committed to disclose data to CDP and CSA annually. The path to achieving our commitments is described in our LCTP (Low Carbon Transition Plan), which outlines the roadmap with the progressive steps to the ultimate target which is carbon neutrality.
When it comes to the environment, as part of our ESG strategy and following our decision on strengthening our engagement to sustainability, during 2024 we disclosed for third time to CDP and for the second time, we reported to the S&P Global Corporate Sustainability Assessment, as well. We declare our commitments and progress towards their achievement in a transparent way and we are assessed and rated accordingly.
Customer Satisfaction
In Danaos we are committed to honor our commitments and C/P agreements.
Our digitalized performance monitoring and proactive issue detection demonstrate a strong commitment to data accuracy, operational efficiency and timely decision-making. Leveraging advanced analytics ensures continuous improvement and compliance with industry standards.
Our direct engagement with customers through meetings on action plans and long-term strategy fosters transparency strengthens partnerships and ensures alignment on sustainability and operational goals. Aligning with our client standards and participating in their benchmarking and sustainability assessments reinforces continuous improvement and strengthens longterm partnerships.
In 2023, we initiated a customer satisfaction survey, the content of which has been restructured within 2024 to enhance insights into key performance indicators (KPIs) that reflect customer perceptions of our service value.
