Our ESG Strategy
This ESG Report covers the period from January 1 to December 31, 2024, and highlights our environmental, social and governance (ESG) initiatives, addressing our stakeholders’ expectations with transparency and thoroughness.
Recognizing our responsibility as a member of society, our ESG strategy serves as a strategic roadmap toward building a more sustainable and resilient organization. In everything we do, our ESG agenda and sustainability initiatives remain at the forefront.
At Danaos, sustainability is both a cornerstone of our corporate culture and a vital driver of our decision-making process. We uphold the highest operational standards both on board and onshore, ensuring an ethical, safe and environmentally clean environment for all. We regularly measure our performance against our commitments, refining our approach as needed—and we are proud to share that we have made significant progress on our ESG journey:
The Danaos Low Carbon Transition Plan (LCTP), published in 2022 and updated annually, offers a comprehensive overview of our dedication to climate action and describes our decarbonization strategy.
- The Danaos Low Carbon Transition Plan (LCTP), published in 2022, offers a comprehensive overview of our dedication to climate action and decarbonization strategy, surpassing the targets set by the IMO. It reflects our aspirations to align with the 1.5°C pathway and adhere to internationally recognized goals for both the near and long term.
Our primary avenues for reducing carbon emissions include implementing technologies to enhance fuel efficiency and minimize process emissions, investing in a greener fleet and incentivizing our suppliers to reduce their carbon footprint. The LCTP aims to achieve a 50% reduction in Energy Efficiency Operational Index (EEOI) by 2030 compared to 2008 levels, with the ultimate goal of attaining carbon neutrality by 2050.
Key initiatives such as the adoption of Shadow Carbon Pricing play a pivotal role in realizing the objectives outlined in the LCTP. By aligning our environmental vision with targets beyond those set by the IMO, including the Sustainable Development Scenario (SDS) and Nationally Determined Contributions (NDC) under the United Nations Framework Convention on Climate Change (UNFCCC), we underscore our commitment to environmental stewardship and sustainable practices. The LCTP is updated on an annual basis ensuring transparency and continuous alignment with environmental goals and regulatory changes. This approach strengthens accountability and strategic adaptability.
- In 2023, we reported our key sustainability metrics to the S&P Global Corporate Sustainability Assessment (CSA), allowing us to showcase our performance across abroad spectrum of sector-specific economic, environmental and social criteria. As a result, we achieved a rating of “40” and placed in the top 20% of the “Transportation and Transportation Infrastructure” sector. Notably, we excelled in the Environmental pillar, ranking among the top 10% in the sector. Building on these accomplishments, Danaos further advanced its performance in 2024, attaining an S&P Global ESG Score of “51” that results in being ranked in the top 14% of the companies of the industry and in the top 5% in terms of environmental performance! In comparison to our benchmark peers, we ranked in the average high group and significantly outperformed the sector’s average. Specifically, we stood much higher than the benchmark group average in the Environmental pillar. In the Governance pillar, we ranked slightly above both the benchmark group and the industry average, while in the Social pillar, we remained slightly below the benchmark group average, but still above the industry average.
Danaos further advanced its performance in 2024, attaining an S&P Global ESG Score of “51” that results in being ranked in the top 14% of the companies of the industry and in the top 5% in terms of environmental performance!
- In 2023, we reached a significant milestone by disclosing our environmental risks, opportunities and short-term targets through the Carbon Disclosure Project (CDP). In the “2023 CDP Climate Change Response Assessment,” we earned a B- score, which was also reflected in our CDP Supplier Engagement Rating. This evaluation, conducted by CDP—a global sustainability assessment organization— highlights our progress in climate change strategies, greenhouse gas emissions management and reduction efforts. It also underscores our commitment to transparency and continuous improvement. In 2024, we disclosed to CDP our water-related activities for the first time and we earned a B- score, while we earned a C score for climate disclosure, indicating that Danaos is demonstrating some evidence of effectively managing its environmental impact. This rating reaffirms our dedication to advancing our sustainability initiatives and striving for further enhancements in our environmental performance.
In the context of our commitment to high ESG standards and incorporating sustainability into our operational processes, business activities and strategy in all lifecycle steps, within 2022 for the first time, we released a vendors’ ESG questionnaire that will allow our company to evaluate our partners and gain a better understanding of our supply chain’s operation.
Sustainability must be embedded across all levels—from ownership policies to individual mindsets— and is key to making lasting change. When every crew member and employee understand their role and the collective responsibility, it strengthens the entire organization’s commitment to sustainability. This is what we strive for by investing in continuous training to build awareness and encourage sustainable practices in day-to-day operations.
Danaos is currently developing a revised ESG strategy for the period 2025-2028. Building on the existing framework in place until 2025, the updated strategy will integrate emerging industry practices and evolving stakeholder expectations. This approach aims at enhancing our commitments to sustainability, environmental protection and effective governance, ensuring that Danaos remains responsive to the challenges and opportunities within the maritime sector.
The Board use their combined global experience to regularly discuss, debate and agree on our strategy to achieve the highest level of ESG and operational performance whilst ensuring our continued competitiveness.
Iraklis Prokopakis
Vice Chairman of the Board and ESG Committee Chair
Materiality Assessment
In 2023, we conducted a Double Materiality Assessment to enhance our approach to sustainability and risk management, integrating its findings with our Risk Management processes. This assessment provided a comprehensive understanding of ESG impacts and associated risks, informed by sector materiality, stakeholder expectations, legal commitments and strategic alignment.
For the 2024 reporting cycle, we have maintained the material topics identified in the 2023 assessment. While we did not conduct a new Double Materiality Assessment this year, we continue to rely on the insights gathered through last year’s extensive engagement with our key stakeholders—including employees, charterers, insurers, financial institutions, suppliers and the management. These insights remain highly relevant and reflective of our industry’s evolving sustainability landscape.
The material topics identified in 2023 remain aligned with our Sustainability (ESG) Strategy, which emphasizes improving ESG rating performance, achieving IMO goals and ensuring transparency through the annual disclosure of ESG data. We remain committed to addressing these material topics and will reassess our materiality approach in future cycles, as needed, to reflect emerging risks and opportunities.
We continue to rely on the insights gathered through last year’s extensive engagement with our key stakeholders—including employees, charterers, insurers, financial institutions, suppliers and the management. These insights remain highly relevant and reflective of our industry's evolving sustainability landscape.
An ongoing dialogue with our stakeholders is of paramount importance so that through our actions and targets we can fulfill their needs and concerns. Moving forward, we are regularly developing full materiality assessments in which stakeholders are asked to map out sustainability issues according to their importance.
Our Commitments
– 2025 Goals in Progress
In 2021, we designed and implemented our updated ESG Plan, which includes specific goals and measurable targets for the period 2021-2025. Environmental protection and pollution prevention are of high importance to the company.
The table below lists Danaos’ sustainability plan for 2025 and summarizes our commitments to ESG and their status.
Environmental
Embedded
EMISSIONS
- 47.5% reduction of CO₂ emissions intensity by 2025 (baseline 2008 IMO) (grCO₂/ tones x miles).
- Exhaust gas Cleaning Systems (scrubbers) have been installed, certified and are now in operation onboard 17 Danaos vessels (including 6 NBs delivered in 2024 and 2 bulk carriers acquired in 2024).
- 25% of vessels will be equipped with AMPs to ensure full power with less emissions.
MARINE POLLUTION, CONSERVATION
& BIODIVERSITY
- Work with vessels to ensure zero significant spills.
- Successful installation, certification and operation of Water Ballast Treatment systems for the whole fleet.
WASTE REDUCTION
- Zero waste overboard. No paper to landfield from our offices.
ENVIRONMENTAL COMPLIANCE
- Perform gap analysis and issue compliance roadmap with
modifications to take place on each vessel (when relevant
regulatory enforcement takes place).
MEMBERSHIPS
- Become a member of the Global Maritime Forum (GMF) and joined the Getting to Zero Coalition.
- Become a member of the Ammonia Energy Association (AEA)
and explore potential alternatives for newbuilding vessels.
REPORTING
- Ensure full transparency to the IMO DCS and EU MRV -UK
MRV emission reporting schemes through our advanced
WAVES data analytics platform. - Monitor and report company’s fleet emissions and energy efficiency indices in our annual report.
INITIATIVES
- Develop tools to monitor compliance with various initiatives, such as the Poseidon Principles, Climate Bonds, SBTi and sharing of relevant data with our clients.
- ISO-50001 Environmental Management System adopted in 2015 is now stimulating energy-efficient operational practices and provides the necessary metrics.
In Progress
EMISSIONS
- Full alignment with the IMO 2030 targets for carbon intensity and the 2050 targets for net-CO2 emissions (carbon neutral by 2050).
- By 2050, all newbuilds are to be carbon neutral, transitioning to alternative fuels subject to availability, as well as technological and regulatory readiness.
- Participating in Joint Industry Projects (JIP) investigating the use of alternative fuels to improve combustion and reduce the carbon footprint of vessels.
WASTE REDUCTION
- Reduction of waste volume onboard vessels by 50%.
INNOVATION
- Work on the full digitalization of company processes, ensuring close control and prompt response promoting fuel efficiency.
- Continuous study and research on technical measures and design retrofits, aiming at improving vessel performance.
- Support R&D research activities on the study and investigation of the use of alternative fuels and innovative technologies.
MEMBERSHIPS
- Become a member of the Methanol Institute.
Social Targets
Embedded
CHILD AND FORCED LABOR
- No child or forced labor permitted in our own operations.
- Screening our significant suppliers to preclude child or forced labor.
- Screening our significant suppliers to comply with Human Rights, Equal Opportunities and Non-Discrimination Policies.
TRAINING & DEVELOPMENT
- All staff trained on Health, Safety, Social and Environmental (HSSE) risks.
- Offer summer internship programs.
- Ensure company culture of sustainability is in place onboard and ashore.
- Ongoing monitoring of personnel career development and training.
CREW RETENTION
- Maintain annual crew retention rates above 80%.
- Compliance with ILO requirements for seafarers.
PROCUREMENT
- Establish a sustainable procurement policy and screening of our suppliers.
EMPLOYEE RETENTION
- Expand diversity and equal opportunities.
- Maintain annual employee retention rates above 90%.
SAFETY
- Screening our significant suppliers for Safe Working Condition policies in place.
SUPPORTING LOCAL COMMUNITIES
- Maintain our strong social engagement and provide support to vulnerable groups.
- Encourage the spirit of volunteerism among the employees towards environmental and charity activities.
- Provide Sponsorships to University Students.
- We commit to increase our social impact by 30%.
In Progress
SAFETY
- Maintain our LTIF significantly lower than the industry averages.
- Zero fatal accidents.
Governance Targets
Embedded
CORRUPTION
- Zero Tolerance to bribery and corruption.
- Screening our significant suppliers to comply with anti-corruption policies.
- Establish partnerships with sustainable and anti-corruption initiatives.
REPORTING ESG – RATINGS
- Maintain full transparency in ESG report.
- Increase ESG Ratings by globally renowned Rating Agencies.
- Integrate SASB standards into ESG report.
ETHICAL BUSINESS CONDUCT
- Provide to all (100%) crew members and office employees a customized educational program of ethical business conduct.
WHISTLEBLOWING
- Provide a confidential and effective whistleblowing system for reporting violations.
In Progress
CORRUPTION
- 100% of significant suppliers to be assessed.
DIVERSITY
- 25% women as Board Members and Executives.
CUSTOMER SATISFACTION
- Maintain customer satisfaction at 95% or above through the application of new tasks.
Our ESG Goals
and Commitments to the SDGs
In Danaos, we are working on aligning key specific targets and future investments with the global United Nations Sustainable Development Goals (SDGs) and Environment, Social and Governance (ESG) criteria. We are a link in a chain of multiple forces and our priority is to strengthen our commitment to contributing to this global call to take action to eradicate poverty, safeguard our planet, battle climate change and ensure that all people experience peace and prosperity by 2030. We have completely incorporated the SDGs into our strategy, recognizing those that are most relevant to our business and evaluating their potential to support us leverage our contribution to the UN 2030 Agenda.
Our ESG goals are outlined in the bullets below:
- Work towards decarbonization and achieving carbon neutrality by 2050.
- Continue our research on energy efficiency and alternative fuels and technologies.
- Establish partnerships with key stakeholders to promote sustainable development.
- Ensure perfect compliance with regulations at sea, prevent negative impacts on marine biodiversity by avoiding water pollution, ensuring proper waste management and ballast water management and treatment.
- Fully comply with regulatory demands to reduce air emissions impacts and continue investing in maintaining and implementing solutions that will enable this.
- Promote circular economy principles by implementing policies fostering 3R concept.
- Training of both ashore and onboard personnel on decarbonization awareness and actions to take place.
- Work further on digitalizing company processes and devising the tools that shall foster the decarbonization process on a transparent and block-chain ready concept.
Stakeholder Engagement
When it comes to our strategic planning, stakeholder engagement is critical. Danaos established a Stakeholder Engagement Policy to guide the relationships with the stakeholders. An ongoing dialogue with our stakeholders is of paramount importance so that through our actions and targets we can fulfil their needs and concerns. Moving forward, we are regularly developing full materiality assessments, in which stakeholders are asked to map out sustainability issues according to their importance. In determining if an issue is material, we consider our impacts across the value chain through the involvement of our main stakeholders. We update our assessment each year to make sure it reflects changes in our business and the external environment. In addition, we have initiated a customer satisfaction survey to gauge communication with this crucial stakeholder. Addressing each issue related to the ESG (environmental, social and governance) factors enables us to design a sustainability strategy accordingly and defines our reporting and actions.
Our Stakeholders
What they expect from us
Communication Channels and Frequency of Engagement
EMPLOYEES (OFFICE STAFF & SEAFARERS)
Our employees expect from Danaos Shipping to be a fair employer, to provide safe working conditions and to care for the work-life balance of the employees, to provide opportunities for training and professional development and to provide a discrimination-free working environment.
Relative material topics:
- Anti-corruption
- Energy
- Emissions
- Waste Management
- Occupational Health and Safety
- Training and education
- Biodiversity
We support an ongoing open communication between management and employees. Engagement is achieved also through monthly internal meetings, as well as an annual management review report. We host regular team-building activities and employee welfare initiatives, and we hold regular employee satisfaction surveys.
CUSTOMERS (CHARTERERS)
Our customers expect high quality and flexible services, provision of ongoing and accurate support, flexibility regarding their requirements, transparency and conducting business in a sustainable manner (ethical, safe, environmentally friendly, respect human rights).
Relative material topics:
- Economic Performance
- Anti-corruption
- Anti-competitive behavior
- Energy
- Emissions
- Customer Privacy
We engage with our customers through meetings, in order to share information on action plans and long-term strategy. We work closely with our customers to develop services that promote sustainability, and we participate in our customers’ benchmarking systems and sustainability assessments.
We have a customers’ “Added value” program in place.
FINANCE RELATED (BANKS)
Our finance-related stakeholders are interested in our company’s creditworthiness and financial performance, accurate information, risk control and assessment and in the company’s robust management processes and long-term growth.
Relative material topics:
- Economic
- Performance
- Anti-corruption
- Occupational Health & Safety
- Training and Education
- Diversity and Equal Opportunities
- Child Labor
- Forced and Compulsory Labor
- Security Practices
We are in daily communication with our finance-related stakeholders through our contracts, our financial reports, progress meetings, our corporate presentation and, in general, our day-to-day transactions.
GOVERNMENT OFFICIALS AND AUTHORITIES (PORT STATE CONTROL)
Government officials and agencies expect us to be compliant and consistent, to conduct safe and environmentally friendly operations, to implement quality standards, to do our due diligence and to generate economic growth.
Relative material topics:
- Anti-corruption
- Emissions
- Waste Management
- Occupational Health and Safety
We engage with government officials and authorities through notices/instructions about latest rules and requirements, through the results of our inspections and auditing programs and through formal dialogue and communication channels
INTERNATIONAL AND INDUSTRY ORGANIZATIONS AND REGULATORS (E.G. IMO, HELMEPA)z
These stakeholders expect our active participation, collaboration and support, to be up-to-date and compliant with new requirements, to operate in an ethical manner and to promote the internal sustainability culture.
Relative material topics:
- Regulatory Compliance
- Waste Management
- Occupational Health & Safety
We engage through annual and ad-hoc meetings, memberships, audits, participation in high-level meetings, steering groups, committee, councils, forums and projects, as well as through the formation of joint action plans.
SUPPLIERS (PORT AGENTS, MANUFACTURERS, SHIPYARDS)
Our suppliers expect fair and long-term cooperation, timely execution of our financial responsibilities, timely notification of any significant changes and exchange of knowledge and business opportunities.
Relative material topics:
- Anti-corruption
- Anti-competitive behavior
- Emissions
- Occupational Health & Safety
- Training and Education
- Diversity and Equal Opportunities
- Non-discrimination
- Child Labor
- Forced and Compulsory Labor
- Security Practices
We communicate with our suppliers through our supplier performance evaluation, through service review meetings (with major suppliers), through our participation in supplier organized workshops and on- site visits.
We have a sustainable procurement policy in place to ensure effective implementation of suppliers ESG programs required to identify and assess material risks and impacts.
Detailed description can be found in the corresponding section in current ESG report.
SOCIETY (NGOs, LOCAL COMMUNITIES)
Our social stakeholders expect from us to support social and economic development, to conduct our business in an ethical manner and protect human rights, to provide employment opportunities and to participate in initiatives in order to support social and environmental causes.
Relative material topics:
- Emissions
- Occupational Health and Safety
We communicate through news published on our corporate website and social media accounts, through our donations and charities and through our participation in discussions/ dialogue in sustainability forums organized by NGOs.
Key Partnerships
Sharing expertise and collaborating with others in the sector is key to driving collective progress toward sustainability goals. We are actively pursuing membership in industry associations and committees, in order to contribute to the progress of the shipping industry via the exchange of expertise, as well as the support and promotion of sustainability concerns.
In 2024, Danaos officially joined the United Nations Global Compact, the world’s largest corporate sustainability initiative, strengthening its commitment to Sustainability and Corporate Responsibility. By joining the UN Global Compact, we reaffirm our commitment to align our practices and operations with universal principles in the areas of human rights, labor standards, the environment and anti-corruption. Through our participation, we will engage with stakeholders globally and collaborate to advance progress towards the UN Sustainable Development Goals (SDGs).
In addition, Danaos has been a member of the Global Maritime Forum (GMF) since 2020, adhering to the Getting to Zero Coalition statement.
We have also been members of the Ammonia Energy Association (AEA) since July 2024, attending meetings and staying up-to-speed on all the latest advancements in the usage of ammonia in the marine sector.
Our voluntary enrolment in the Environmental Ship Index (ESI) underscores Danaos’ dedication to enhancing vessel environmental performance and supporting client sustainability initiatives. Leveraging ESI data can further strengthen emission- reduction strategies and regulatory compliance and client partnerships.
Poseidon Principles and Climate bond initiatives are also explored to verify fleet’s compliance.
Danaos has taken measures to address the loss of biodiversity through the incorporation in our Waves online fleet monitoring system of areas under the “SAvE Whales” initiative, that is aiming to materializing a state-of the art alerting system for avoiding strikes of ships with these mammals. We are also addressing the “Blue Whales Blue Skies” initiative in a geofencing-like approach and raising concern to our clients with our vessels chartered on calling these regions for compliance with the voluntary speed reduction.
