environmental

social

governance

2018

THIS REPORT HAS BEEN PREPARED BASED ON

THE REQUIREMENTS OF THE SUSTAINABILITY

ACCOUNTING STANDARDS BOARD

1. INTRODUCTION

and reducing consumption will provide the company with both environmental and economic advantages.

We publish this ESG report to provide investors, banks and other stakeholders with easy access to extra-financial information. The 2018 ESG report of Avance Gas has been prepared in accordance with the Marine Transportation framework established by the Sustainability Accounting Standards Board (SASB). This allows us to identify, manage and report on material Environmental, Social and Governance (ESG) factors specific to our industry. Additionally, we have incorporated the principles of the UN Global Compact.

This report is based on SASB’s internationally recognised indicators and related definitions, scope and calculations. The report and data cover the period 1 January to 31 December 2018.

Ulrik Uhrenfeldt Andersen,CEO

Avance Gas Holding Ltd ("Avance Gas") is a leading operator of modern Very Large Gas Carriers (VLGC). Our fleet consists of 14 owned VLGC ships transporting clean energy. Avance Gas was formed in 2007 and is listed on the Oslo Stock Exchange.

We transport LPG from the Middle East Gulf and the US Gulf to destinations in Europe, South America, India and Asia. Avance Gas is a Bermuda registered company and maintains a management agreement with Avance Gas AS in Oslo. The Company has outsourced technical management of the fleet to Exmar Ship Management NV (Antwerp) and Northern Marine Management Ltd (Glasgow) whose responsibilities include employment of onboard personnel, in close collaboration with the Company’s technical department.

LPG is an efficient energy source that offers benefits to consumers, the industry and the local environment. It is a multi-purpose energy source and can be used in i.e. transportation, farming, domestic heating and cooking. According to the WHO, an estimated 7 million people die prematurely every year from air pollution related diseases, such as respiratory illness and cancer.1 With close to half of the global demand for LPG coming from residential cooking and heating demands, the International Energy Agency (IEA) recognises LPG as a key factor in addressing negative health impacts associated harmful emissions related to the use of traditional cooking fuels, such as solid biomass, in many parts of the world &2&3. Given LPG’s global availability, transportation flexibility, and its diverse application, we believe Avance Gas provides an important contribution by making LPG and its related benefits available to customers all over the world.

Shipping is the most carbon-efficient mode of long-distance transportation today.4 According to the most recent IMO (International Maritime Organisation) study on greenhouse gas emissions, international maritime shipping accounts for 2.85

per cent of annual global greenhouse gas emissions. Although marine transportation has a significantly lower CO2 footprint compared to other freight options, our industry will still play an important role in lowering the global carbon footprint.

As global trade is increasing, it is crucial that the industry develops more environmentally friendly fuels and technology. Avance Gas emphasises the need to enhance the efficiency of our ships, and thus reducing associated greenhouse gases emissions. We are convinced that improving energy efficiency

1 https://public.wmo.int/en/media/news/new-coalition-health-environment-and-climate-change-launched 2 https://www.wlpga.org/about-lpg/why-use-lpg/versatile/ 3 https://www.iea.org/newsroom/news/2019/january/winners-losers-and-unintended-consequences-in-the-outlook-for-oil-product-demand.html 4 https://www.iea.org/newsroom/news/2019/june/demand-from-asia-is-set-to-power-the-growth-of-the-global-gas-industry-over-the-n.html 5 http://www.imo.org/en/OurWork/Environment/PollutionPrevention/AirPollution/Pages/Historic%20Background%20GHG.aspx

445NUMBER OF VESSEL

PORT CALLS

280NUMBER OF SHIPBOARD

EMPLOYEES

1 133 415TOTAL DISTANCE TRAVELLED

BY VESSELS

4 657OPERATING

DAYS

756 682DEADWEIGHT

TONNAGE

14NUMBER OF VESSELS IN TOTAL

SHIPPING FLEET

“As global trade is increasing, it is crucial that the industry develops more environmentally friendly fuels and technology.”

Sour

ce: D

EFR

A 2

019BULK CARRIER

CRUDE TANKER

LPG TANKER

LNG TANKER

L ARGE CONTAINER SHIP

SMALL CONTAINER SHIP

FREIGHT TR AIN

VECHICLE CARRIER

HE AV Y GOODS VEHICLE

AIR FREIGHT LONG HAUL

GRAMME CO2E PER TONNE KM

20 gr0 gr 40 gr 60 gr 80 gr 100 gr 120 gr 140 gr 160 gr 180 gr 200 gr 1132 gr

4 • 2018 • Environmental Social Governance 5 • SUSTAINABILITY ACCOUNTING STANDARDS DISCLOSURES

Number of calls at ports in countries that have the 20 lowest rankings in Transpar-ency International’s Corrup-tion Perception Index

Total amount of monetary losses as a result of legal proceedings associated with bribery or corruption

Lost time incident rate (LTIR) Rate 0 TR-MT-320a.1

Number of Conditions of Class or Recommendations

TOPIC ACCOUNTING METRIC UNIT OF MEASURE DATA CODE

C O R R U P T I O N

L O S T T I M E I N C I D E N T R AT E

M A R I N E C A S U A LT I E S

C O N D I T I O N S O F C L A S S

P O R T S TAT E C O N T R O L i

Detentions Number 0 TR-MT-540a.3

Incidents Number 1g

Percentage classified as very serious

TR-MT-540a.1

BUSINESSETHICS

EMPLOYEEHEALTH &

SAFETY

ACCIDENT &SAFETY

MANAGEMENT

Reportingcurrency

0

Percentage (%) 0

TR-MT-320a.10h

2. SUSTAINABILITY ACCOUNTING STANDARDS DISCLOSURES

C O R R U P T I O N I N D E X

Gross global Scope 1 emissions

Metric tonnes (t)CO₂-e

Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets

Average Energy Efficiency Design Index (EEDI) for new ships

N/Ab

Shipping duration in marine protected areas or areas of protected conservation status

Gigajoules (GJ),Percentage (%)

TOPIC ACCOUNTING METRIC UNIT OF MEASURE DATA CODE

E N E R G Y C O N S U M E D

E E D I

A I R E M I S S I O N S O F P O L L U TA N T S

M A R I N E P R O T E C T E D A R E A S

I M P L E M E N T E D B A L L A S T W AT E R

S P I L L S A N D R E L E A S E S T O T H E E N V I R O N M E N T

TR-MT-110a.3

(1) exchange Percentage (%) 100 %e

(2) treatment Percentage (%) 57 %TR-MT-160a.2

(1) Number Number 0f

(2) aggregate volume Cubic meters (m³) 0TR-MT-160a.3

(1) NOx (excluding N2O) Metric tonnes (t) 13 928c

(2) Sox Metric tonnes (t) 8 393c

(3) particulate matter Metric tonnes (t) 1 041c

TR-MT-120a.1

AIR QUALITY

ECOLOGICALIMPACTS

E M I S S I O N S

GREENHOUSEGAS

EMISSIONS

ACTIVITY METRIC UNIT OF MEASURE DATA CODE

Number of shipboard employees Number 280 TR-MT-000.A

Total distance travelled by vessels Nautical miles (nm) 1 133 415 TR-MT-000.B

Operating days Days 4 657 TR-MT-000.C

Deadweight tonnage Thousand deadweight tons 756 682 TR-MT-000.D

Number of vessels in total shipping fleet Number 14 TR-MT-000.E

Number of vessel port calls Number 445 TR-MT-000.F

Twenty-foot equivalent unit (TEU) capacity TEU N/A TR-MT-000.G

Please see chapter 7 for assumptions regarding the SASB disclo-sures, and specific comments referred to above

Grammes of CO₂ per ton-nautical mile

469 765a TR-MT-110a.1

TR-MT-110a.2See page 8

TR-MT-110a.4

Number oftravel days

138d TR-MT-160a.1

(1) Total energy consumedGigajoules (GJ), Percentage (%)

6 531 288, 100 %

(2) percentage heavy fuel oil 6 128 741, 94 %

Number 0 TR-MT-510a.1

TR-MT-510a.2

Number

6 • 2018 • Environmental Social Governance 7 • ESG GOVERNANCE

MATERIAL ISSUE INTERNAL GOVERNANCE DOCUMENTS INTERNATIONAL STANDARDS AND REFERENCES

Climate change HSSEQ (SM) The Paris AgreementThe Intergovernmental Panel on Climate Change (IPCC)Initial IMO Strategy on Reduction of GHG Emissions from Ships

Air emissions HSSEQ (SM) IMO MARPOL Convention Annex VIEU Sulphur Directive 2016/802UNCLOS

Ecological impact HSSEQ (SM) UN Global CompactIMO MARPOL Convention Annex VIIMO Ballast Water Management ConventionIMO MARPOL Convention Annex VI

Anti-Corruption Corporate Code of Business ConductBribery and Facilitations (SM)

UN Global CompactThe US Foreign Corrupt Practices Act and the UK Bribery Act

Employee Health & Saftey

Code of Conduct UN Global CompactILO ConventionsMaritime Labour Convention, 2006 (MLC, 2006)International Management Code for the Safe Operation of Ships and for Pollution Prevention (The ISM Code)Hong Kong ConventionMarine Crew Resource Management

Accident & SafetyManagement

Code of Conduct International Management Code for the Safe Operation of Ships and for Pollution Prevention (The ISM Code)Marine Crew Resource Management

3. ESG GOVERNANCE

As a responsible player in the shipping industry, Avance Gas continuously work to ensure that relevant procedures are implemented in the of environmental, social and governance areas. Devel-opments in technical solutions influencing environmental performance or measures to tackle corruption, may not always be enough: Avance Gas realises that some ESG challenges may only be properly addressed in partnership between industry players and regulatory authorities. As explained in a more detailed manner in the following chapters, we have joined forces with likeminded partners by becoming a member of the Maritime Anti-corruption Network and SIGTTO.

In order to ensure consistent management of ESG factors, Avance Gas have established a set of policies and control processes which safeguards our employees’ diligent management of sustain-ability related factors – and in several areas, we have reviewed that relevant policies have been implemented by ship managers. Our employees and partners are to abide by the established policies to guide them in conducting their daily assignments for Avance Gas, and we have implemented a system of monitoring compliance. In accordance with the recommendations set out in the corporate governance code from the Oslo Stock Exchange, Avance Gas has established an Audit Committee, which monitors reports and complaints received by the company relating to internal controls and compliance. Furthermore, the Committee ensures that policies with respect to ethics, risk assess-ment and risk management are adequate at all times.

As part of addressing sustainability in a broader perspective we have identified three

UN Sustainable Development Goals (SDGs) where we believe Avance Gas can contri-

bute: We have selected SDG 3, 14 and 16 since these goals are closely tied to the indu-

stry we are a part of and they represent material that we monitor – please see chapter

4 and 6 for more information. Contributing to the broader global agenda of reaching

the SDGs is in our interest as they affect our business, customers, suppliers, investors

and regulators which we depend on.

8 • 2018 • Environmental Social Governance 9 • ENVIRONMENT

Gross global Scope 1 emissions

Metric tonnes (t)CO₂-e

Average Energy Effi-ciency Design Index (EEDI) for new ships

Shipping duration in marine protected areas or areas of protected conserva-tion status

(1) Total energy consumed

Gigajoules (GJ), Percentage (%)

6 531 288, 100 %

(2) percentage heavy fuel oil

Gigajoules (GJ),Percentage (%)

6 128 741, 94 %

ACCOUNTING METRIC

UNIT OF MEASURE

DATA

E N E R G Y C O N S U M E D

E E D I

(1) Number Number 0

(2) aggregate volume Cubic meters (m³) 0

A I R E M I S S I O N S O F P O L L U TA N T S

(1) exchange Percentage (%) 100

(2) treatment Percentage (%) 57

(1) NOx (excluding N2O) Metric tonnes (t) 13 928

(2) Sox Metric tonnes (t) 8 393

(3) particulate matter Metric tonnes (t) 1 041

M A R I N E P R O T E C T E D A R E A S

I M P L E M E N T E D B A L L A S T W AT E R

SPILLS AND RELE ASES TO THE ENVIRONMENT

sulphur oxides, nitrogen oxides, waste and other discharges are to be managed. We also work diligently with our Ship Energy Efficiency Management Plan and have established a comprehensive system for incident reporting.

Whilst ballast water is essential for safe and efficient modern shipping operations, it may also represent serious ecological, economic and health risks due to the multitude of marine species carried in the ships’ ballast water. The handling of ballast water is regulated by the International Convention for the Control and Management of Ships’ Ballast Water and Sedi-ments. We take ecological risks seriously and 100 per cent of our vessels have installed Ballast water exchange and 57 per cent treatment technology.

Avance Gas is conscious that larger volumes of oil have long-lasting adverse impacts on ecosystems, and incidents may have serious impact on people and the environment. Reputational damage, as well as financial loss due to fines and recovery efforts, are some of the consequences of spills. The highest likelihood of spills occurs in fuel transfer operations, but the highest risk comes in relation to ship collisions. No oil spills or other types of spills to the environment were reported in 2018.

Ships represent hazardous waste which must be recycled under safe conditions with respect for human health, safety and environment. The Hong Kong Convention aims to ensure that ships, when recycled after reaching the end of their operational lives, do not pose a risk to safety of workers or to the environment. Avance Gas is developing a Ship Recy-cling Policy to ensure that future recycling of ships may only take place at an approved yard compliant with the Hong Kong Convention and in alignment with the 10 UN Global Compact principles. The latter principles refer not only to environmental issues, but also social issues and anti-corruption.

Avance Gas has identified SDG 14 – Life below water – as rele-vant for our operations, and target 14.C is aimed at enhancing the conservation and sustainable use of oceans and their resources by implementing international law. At Avance Gas, we track and monitor our fleet continuously, and our HQ has full overview of when our ships are sailing in protected areas. Our crew members are trained in and must follow our stringent rules for avoiding spills at any time.

in fuels for shipping (will enter into force from 1 January 2020), will mark a turning point for the global shipping industry.

Avance Gas is working with several initiatives to further increase the efficiency of our ships affecting which will benefit our position both in terms of emissions but also contributing to cost efficiencies. Following the scheduled dry docking of the VLGC Avance in Q4 2017, we completed our docking program for the Korean built ships during 2018. In drydock, all our Korean built ships were fitted with a propeller boss cap fin, which improves the propulsive efficiency by weakening the hub vortex behind the propeller. Together with a new painting system, this contributed to a decrease in the fuel consumption with 13 per cent for the Korean built ships from 2017 to 2018.

Performance management is ensured through continuously monitoring the fuel consumption of the fleet, making sure Avance Gas’ vessels are operating as efficiently as possible. Hull cleaning will on average7 lead to a 9 percent increase in energy efficiency and thus lower fuel consumption and emis-sions. Avance Gas has in place a periodic plan for hull inspec-tion with condition-based cleaning. We also have periodic plans for propeller cleaning – this is conducted twice a year.

ECOLOGICAL IMPACTSMarine transporation carries risks to the environment through discharges and emissions to air, land and water and through potential spills. Avance Gas’ efforts and ability to manage such risks is critical for protecting the environment, the sector, our customers and our own business. We have monitoring and management tools in place to minimise the environmental impact of Avance Gas’ activities in this area and to ensure compliance with international and local regulations.

Avance Gas’ dedication to “safe ships, clean seas and commer-cial reliability” reflects our unwavering commitment to oper-ating in a manner that is safe for people and minimises our impact on the environment. Our experienced and highly trained officers and crew members operate in strict compli-ance with local, national, global and industry requirements, regulations and certifications and all ships in the Avance Gas fleet operate in accordance with the ISO 14001 standard for Environmental Management. Avance Gas’ policy on Environ-mental Protection defines our commitment to environmental due diligence and how spills and operational emissions of

GREENHOUSE GAS EMISSIONS AND AIR QUALITYClose to half of the developing world’s population – 2.6 billion people – are still using traditional biomass cooking. According to the IEA, between 800 million and two billion people will switch from traditional cooking with wood or kerosene to other fuels (such as LPG) over the 2015-30 period. LPG is much more energy efficient than wood: annual per capita cooking requires 43 kg instead of 400 kg of wood. LPG transfers 50 per cent of its energy content to the pot, compared to wood’s 10-20 per cent. Instead of emitting harmful smoke, its fumes reduce the health problems related to cooking. The IEA recog-nises LPG as a key factor to tackle negative health impacts associated with the use of traditional cooking fuels in many parts of the world6. Providing people and markets with LPG, we align our contributions with SDG target 3 – Good Health and well-being – which aims to substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination by 2030. By bringing LPG to the markets, we support reducing air pollution and limiting the rise in energy-related emissions compared to the traditional use of solid biomass in domestic cooking and heating.

Marine transportation is responsible for about 90 per cent of global trade. The energy efficiency of shipping as a freight option is evident from the graph on page two of this report. In environmental terms, shipping can be viewed as one of the preferred modes of transportation of goods today. However, pollution stemming from shipping activities still has consider-able implications for air and water quality. If precautionary actions are not taken, the industry may also negatively impact marine and estuarine biodiversity. Identifying negative impacts and the associated risks has been the basis for our environmental procedures.

Air pollution from the shipping sector is increasing due to the growth in international trade and global emission standards are becoming more stringent. The International Convention for the Prevention of Pollution from Ships (MARPOL) Annex VI limits the permitted levels of main air pollutants originating from ships’ exhaust gas, including sulphur oxides (SOx) and nitrous oxides (NOx), as well as prohibiting deliberate emis-sions of ozone-depleting substances. The NOx Emission Tier III standard in Emission Control Areas (ECA) from 2016 and the IMO 0.5 per cent global cap on sulphur dioxide (SOx) content

E M I S S I O N S

469 765

N/AGrammes of CO₂ per ton-nautical mile

Number oftravel days

138

4. ENVIRONMENT

6 https://www.iea.org/sdg/cooking/7 https://www.iea.org/newsroom/news/2019/january/winners-losers-and-unin-tended-consequences-in-the-outlook-for-oil-product-demand.html

5. SAFETY, LABOUR CONDITIONS AND HUMAN RIGHTS

HEALTH, SAFETY AND ENVIRONMENTAt Avance Gas we believe that a strong health and safety focus, both onshore and offshore, will positively affect the long-term performance of our company. Ensuring safe working conditions is always our primary focus.

All onboard personnel are appropriately trained, and a formal onboard training program includes both computer-based training and periodic scheduled and unscheduled drills. All officers and crew members are required to report near misses and incidents. The data from these reports are tracked, tabu-lated and used to drive continuous improvement in Avance Gas’ safety culture.

Avance Gas’ technical managers utilise structured safety campaigns to enhance safety performance and awareness. The main HSEQ objectives in 2018 included, inter alia, to grow the culture of on-board awareness on environmental compliance, to improve the on-board safety culture and to have increased focus on our safety campaign on learning from industry incidents relating to launch and recovery failure of life/rescue boats. As part of these efforts we hold annual officer conferences where we highlight specific topics and hold drills and training sessions with the technical managers.

Each quarter new “Safety Drivers” are defined. Safety drivers are safety themes that we specifically focus on. The themes are defined from internal lessons learned and incidents in the industry. During 2018, quarterly Safety Drivers were, inter alia, “Safety Equipment Maintenance”, “Safety meetings”, “Hydraulic Accumulators and Pressurised Cylinders”, “Life-boat safety campaign”.

In 2018, 18 accidents were reported in accordance with the reporting guidelines of Avance Gas’ technical management, resulting in zero lost workdays. This is a decrease from 2017, when 33 accidents were reported, resulting in two lost work-days. No severe spills were reported. There was one uninten-tional but insignificant release of product vapors (less than 0,215% of one voyage capacity).

One of our vessels, Passat was involved in a minor collision with another vessel in South Korea, 31 January 2018. Passat reported damage to the hull. There were no injuries to crew or officers on either ships. No spill or pollution to sea or

airwere reported. The port authorities was informed and the coast guard was on board. With their assistance, the Master and crew were taking all necessary measures to control the damage. An incident investigation was performed by external investigators shortly after the collision.

The company has a zero-accident ambition and it operates by the principle that no serious injury or environmental incident is acceptable. The IMO rigorously regulates safety onboard and has recently strengthened requirements under the International Management Code for the Safe Operation of Ships and for Pollution Prevention (“ISM Code”) issued under SOLAS.

A detailed analysis of accidents and incidents for the entire fleet is prepared for Avance Gas by technical managers in accordance with the OCIMF guidelines on Lost Time Inju-ries (LTIs) and Total Recordable Cases and Frequency (TRC and TRCF). The reports allow us to identify the root causes of these reported incidents and functions as a tool for future improvement of our safety policy. All accidents, incidents and near misses shall be reported and proactive measures are taken to ensure that we encourage our crew to report these with no hesitation and with support of their managers.

Avance Gas is also a member of SIGTTO, which is an inter-national body established by the industry to facilitate the exchange of technical information and experience with regard to the safety and operational reliability of gas tankers and terminals.

HUMAN RESOURCES AND DIVERSITYAll seagoing crew are under employment contract with our technical managers and are hired in close collaboration with Avance Gas. Our technical managers have in place cadet programmes to ensure a healthy growth in the next genera-tion of qualified sea farers.

We are proud to be an equal opportunity employer. All quali-fied applicants and employees are treated without regard to gender, nationality, disability, religion, race or colour. The professional development and personal growth of the employees is vital to the success of Avance Gas. Our technical managers take pride in the low turnover and high retention of Avance Gas’ sea staff, who recognise that the Company is a

safe, reliable and high-quality industrial shipper dedicated to safely and reliably meeting the needs of its customers world-wide.

It is our ambition to create a good working environment, offering challenging and motivating work tasks and equal development opportunities to all employees. Women constituted 50 per cent of the onshore workforce. The absence rate due to sickness for on-shore employees was 8.0 per cent in 2018.

10 • 2018 • Environmental Social Governance 11 • SAFET Y, LABOUR CONDITIONS AND HUMAN RIGHTS

Number of Conditions of Class or Recommen-dations

M A R I N E C A S U A LT I E S

C O N D I T I O N S O F C L A S S

P O R T S TAT E C O N T R O L

Detentions Number 0

Incidents Number 1

Percentage classified as very serious

EMPLOYEE HEALTH & SAFETY

UNIT OF MEASURE

DATA

L O S T T I M E I N C I D E N T R AT E

Lost time incident rate (LTIR)

Percentage (%)

Number

0

0

Rate 0

12 • 2018 • Environmental Social Governance

Number of calls at ports in countries that have the 20 lowest rankings in Transpar-ency International’s Corrup-tion Perception Index

Total amount of monetary losses as a result of legal proceedings associated with bribery or corruption

BUSINESSETHICS

UNIT OF MEASURE

DATA

C O R R U P T I O N

C O R R U P T I O N I N D E X

Number

Reportingcurrency

0

0

Corruption undermines economic and social development. For businesses in the shipping industry, corruption is also associated with increased costs, and poses legal and repu-tational risks while also representing a potential threat to the safety of the crew. When ships enter a port, there are many interactions with authorities at various levels. During a port call, the captain manages several such interactions, i.e. immigration, customs, and environmental inspections. In the past, in some areas of the world, these officers were paid by the ships, so there remains still a strong tradition for a token of appreciation. What was once seen as a gift or a friendly compensation, is today regarded as petty corruption.

Avance Gas has a zero-tolerance policy towards bribery as stated in our Code of Conduct, which applies to all entities controlled by our company and officers, directors, employees as well as workers and third-party consultants acting on behalf of the company, wherever they are located. Assessing and monitoring business processes, training and controls are fundamental tools in implementing our anti-corruption policy.

As part of our compliance procedures, appropriate risk-based communication and training is provided to employees and business partners as part of their on-boarding and ongoing development. Any suspected deviation from our policy is to be reported to the closest manager or by submitting a complaint through our “speak out” function on the website.

Avance Gas has implemented enterprise-wide anti-corrup-tion and money laundering policies among our seagoing staff modeled on the UK Bribery Act 2010 and US Foreign Corrupt Practices Act of 1977. Together with our technical managers we closely monitor and educate all staff on the policies and consequences of a breach of these policies. Our onshore staff follow our strict internal policies and an assessment of internal control policies are part of the annual audit proce-dure as well as ongoing monitoring by the audit committee.

Tackling systemic integrity challenges requires collective action, and Avance Gas has joined forces with other members of the shipping industry to share information and approaches, as well as engaging with authorities and civil society. The Marine Anti-Corruption Network (MACN) is a global business network working towards the vision of a maritime industry free of corruption that enables fair trade to the benefit of society

at large. Established in 2011, MACN has grown to include more than 100 members globally in 2018 and has become one of the pre-eminent examples of collective action to tackle corruption. As a member of MACN, we support collective action to reduce corruption and bribery in all forms.

Through joint action, MACN members collaborate with local authorities to develop solutions that are both beneficial to all and realistic to implement. In MACN collective action projects, member companies unite with stakeholders including port and customs authorities, NGOs, and local governments to undertake root cause analyses and then implement a range of ‘recommended actions’ that tackle corruption in ports and across the maritime supply chain. MACN’s collective actions have generated major outcomes, including for example: reductions in demands for facilitation payments in the Suez Canal; new regulations in Argentina that make it more difficult

13 • ANTI-CORRUPTION AND BUSINESS ETHICS

6. ANTI-CORRUPTION AND BUSINESS ETHICS

for officials to demand bribes; and improved ease of opera-tions in Lagos, Nigeria, with the implementation of standard-ised operating procedures and grievance mechanisms.

To address the threat of corruption, Avance Gas also tracks the positions of our ships, and we keep a record of ships having visited harbours of the countries rated with the highest corruption risks according to Transparency Interna-tional. Avance Gas was not involved in any legal proceedings associated with bribery or corruption during 2018.

SDG target 16.5 aims at substantially reducing corruption and bribery in all their forms. As a member of MACN, and through our own dili-gent anti-corruption procedures, we support collective action to reduce corruption and bribery in all their forms.

15 • INTRODUCTION15 • DISCLAIMER AND ASSUMPTIONS FOR SASB REPORTING

The information provided is based on the best data avail-able at the time of reporting. The ESG disclosures should be used to understand the overall risk management of sus-tainability related issues, however, in some areas data are based on estimates, please see comments below. aCO2 emissions (Metric tons (t) CO₂-e): Based on IMO emission fac-tors. The “financial control” approach defined by the GHG Protocol has been applied. Scope 1: Owned vessels, based on fuel consumption for the year.

Total energy consumption (TJ): Calculated based available data on fuel purchases by using the fuel properties defined by DEFRA, Conversion factors, 2019.

bAverage Energy Efficiency Design Index (EEDI) for new ships: The EEDI was not obtained for any of the new vessels entering the fleet in 2018 and is currently reported as N/A.

cParticulate matter (PM), NOX, SOX emissions (Metric tonnes): NOX and SOX emissions from the combustion of fuels from owned vessels have been calculated based on the tool established by Danish Shipping and distance travelled.

dShipping duration in marine protected areas or areas of protected con-servation status: A marine protected area as defined by the International Union for Conservation of Nature (IUCN): Any area of intertidal or sub-tidal terrain, together with its overlying water and associated flora, fauna, historical and cultural features, which has been reserved by law or other effective means to protect part or all of the enclosed environment, listed in the World Database of Protected Areas (WDPA) and mapped on Protected Planet. Protected Planet is the most up to date and complete source of information on protected areas, updated monthly with submis-sions from governments, non-governmental organizations, landowners and communities. It is managed by the United Nations Environment World Conservation Monitoring Centre. However, the reported number does not necessarily include all Marine protected areas internationally established and regulated in International the Marine Organization (IMO) Conventions and areas established nationally by member states. The data on shipping duration in Marine Protected Areas has been obtained through our tracking system (IHS).

ePercentage of fleet implementing ballast water exchange and treat-ment: Only ships performing ballast water exchange with an efficiency of at least 95 percent volumetric exchange of ballast water have been included. When it comes to treatment, approved systems must dis-charge (a) less than 10 viable organisms per cubic meter that are greater than or equal to 50 micrometers in minimum dimension and (b) less than 10 viable organisms per milliliter that are less than 50 micrometers in minimum dimension and greater than or equal to 10 micrometers in minimum dimension.

fSpills and releases to the environment (Number, Cubic meters (m³)): Any overboard spills and releases – intentional or accidental – shall be reported, even if the quantity is low and i.e. only causes a thin film or slight sheen upon or discoloration of the surface of the water.

Lost time incident rate (LTIR): A lost time incident is an incident that results in absence from work beyond the date or shift when it occurred. The rate is based on: (lost time incidents) / (1,000,000 hours worked).

gMarine Casualties: Regarding SASB TR-MT-540a.1, the reporting is in accordance with the standard, however injuries to personnel as described in point 1.1.1 is reported as part of Health & Safety statistics (LTIR). The threshold for reporting on material damages as outlined in 1.1.4 and 1.1.6 is defined as USD 1,000,000.

hNumber of Conditions of Class or Recommendations: The practice of issuing conditions/recommendations of class does not follow an entire-ly harmonized reporting methodology making it less useful for reporting purposes without further explanations, hence we do not disclose these numbers. We may consider disclosing information on this in the future if the methodology becomes standardised. Currently our scope of dis-closure only includes Conditions of Class that resulted in withdrawal, suspension, or invalidation of a vessel’s Class certificate.

iPort State Control: Number of port state control (1) deficiencies and (2) detentions. Practices of port state controls reporting on deficiencies do not follow an entirely harmonised methodology making it less useful for reporting purposes without further explanations, hence we do not dis-close these numbers. We may consider disclosing information on this in the future. Currently our scope of disclosure only includes detentions. A detention is defined as an intervention action by the port state, taken when the condition of a ship or its crew does not correspond substan-tially with the applicable conventions and that a ship represen t an unreasonable threat of harm to the marine environment etc.

jTotal distance traveled by vessels: The distance (in nautical miles) travelled by all vessels during the calendar year as obtained from GIS metrics.

Number of shipboard employees: Only the number of employees on board ships at any time are recorded, this does not reflect the aggregate number of shipboard employees during the year.

Operating days: Operating days are calculated as the number of avail-able days in a reporting period minus the aggregate number of days that the vessels are off-hire (i.e., a measure of days in a reporting period during which vessels actually generate revenue).

Number of vessels in total shipping fleet: This includes owned, char-tered, bare boat – as per December 31 in the financial year.

7. DISCLAIMER AND ASSUMPTIONS FOR THE SASB REPORTING

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NORWAY AVANCE GAS ASBryggegata 3P.O. Box 1327 Vika0112 OsloNorway