Environmental Commitment

We are committed to enhancing environmental protection and addressing climate change as integral components of our operational strategy. We view these challenges as opportunities to transform our practices and contribute positively to the environment. Our approach includes rigorous climate-related risk assessments to inform our strategy, align our investment decisions, and ensure our actions are risk-aware.

Energy Management

Danaos has initiated its Energy Management even from 2012 where the SEEMP approach has been adopted. The SEEMP provides an approach for monitoring ship and fleet efficiency performance over time, and encourages the ship Owner, at each stage of the plan, to consider new technologies and practices when seeking to optimize ship performance. Going one step further, from 2015 onwards, ISO 50001 is also implemented to enhance even more the energy performance onboard.

From the ship Owners’ perspective we have identified a list of equipment and measures have been identified in order to optimize the energy onboard our vessels. There include:

• Optimum ballasting
• Auxiliary engines Efficiency & Utilization, depending on whether vessel is at sea or at port and as per actual load onboard, DGs to be operated in the optimum load range.
• Auxiliary boiler use in auto mode
• Air conditioning controlled use
• Pumps optimum use (Cooling sea water, LT CFW, LO)
• Lighting
• Fans
• Special instructions for equipment use during long port stay time
• Navigation / Communication equipment management

SEEMP training records are frequently done and relevant records are kept onboard in order to re-assure that all crew members are aware of the energy efficiency policy. Environmental audits also take place onboard from our SQE department on an annual basis both for SEEMP and ISO50001.

More specifically, according to our certification scope (i.e. total 4 vessels are certified), one (1) ISO 50001 external verification was carried out during 2023. Regarding SEEMP all managed vessels are audited each year. Therefore, a total of 86 SEEMP internal energy audits were carried out during 2023. Last but not least, one (1) ISO 14001 external verification was carried out during 2023, all vessels passed internal ISO 14001 audit in 2023 and our Office passed external ISO 14001 audit in December 2023 by DNV.

The effectiveness of the energy efficiency measures and the management plan in its entirety undergo a quantitative assessment. In this respect it is important to employ the correct monitoring tools. Power efficiency index is one KPI used for the assessment of energy use onboard.

Moreover, energy management is included in list of measures in SEEMP PIII, which is reviewed every 3 years as per IMO requirement and in case regulatory carbon intensity limits are not met, then relevant Corrective Action Plan should be submitted, reviewed and approved in order vessel to reach the required indices limits.

Climate Risk Management

We recognize the importance of adhering to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This involves categorizing, managing, and reporting climate-related risks, including both physical and transition risks. Our strategy reflects a comprehensive approach to climate risk management.

Danaos Low Carbon Transition Plan (LCTP)

Published in 2022 and continuously updated, the Danaos Low Carbon Transition Plan (LCTP) outlines our commitment to climate action and decarbonization. Our strategy not only meets but exceeds the International Maritime Organization (IMO) targets. The LCTP is designed to align with the 1.5°C pathway and adheres to internationally recognized goals for both short-term and long-term environmental performance. We are also collaborating with the Science Based Targets initiative (SBTi) to integrate sectoral trajectories for the shipping industry, aligning our emission reduction efforts with these newly established guidelines.

Alignment with Global Standards

Our environmental vision aligns with targets beyond the IMO's, including the Sustainable Development Scenario (SDS) and Nationally Determined Contributions (NDC) under the United Nations Framework Convention on Climate Change (UNFCCC). This alignment underscores our commitment to environmental stewardship and sustainable practices.

Decarbonization Pathways

Our approach to achieving carbon neutrality by 2050 involves a dual-path strategy:

• Optimizing Existing Fleet: Enhancing the efficiency of our current vessels.
• Transitioning to Zero-Carbon Vessels: Developing a fleet powered by zero-carbon fuels.

Our newbuilding program includes 20 container vessels ranging from 7100 to 9200 TEUs, all designed to accommodate alternative fuels, including methanol and ammonia.

Commitment to IMO 2030 Targets

We are dedicated to meeting or surpassing the IMO's 2030 target of a 50% reduction in carbon intensity compared to 2008 levels, with a long-term aim of achieving carbon neutrality by 2050. We strive to reach these goals ahead of schedule, subject to technological advancements and shipyard availability.