ESGREPORT
2022

THIS REPORT HAS BEEN PREPARED BASED ON
THE REQUIREMENTS OF THE SUSTAINABILITY ACCOUNTINGSTANDARDS BOARD

Contents

About this report

05
06
08
11
19
23

This report is our fifth comprehensive andstand-alone sustainability report. The report
meets the disclosure requirements of the
Sustainability Accounting Standards Board(SASB) Marine Transportation Standard(2018). A separate GRI Index is available in
the Appendix.

INTRODUCTIONOUR APPROACH TO ESGSUSTAINABILITY GOVERNANCEENVIRONMENTSOCIALAPPENDIX
Sustainability accounting standard disclosures
Disclaimer and assumptions for the sasb reporting
GRI Index

The report presents our material environmental, social and governance (ESG)
performance, along with how we manage
material sustainability topics, for thefinancial year ending December 31, 2022.

About Avance Gas
Avance Gas Holding Ltd. (“Avance Gas”) is one of the world's leading owners and operators of very large gas
carriers (VLGC). As of December 31, 2022, our fleet consists of 12 owned VLGCs and four dual fuel newbuildings
transporting Liquified Petroleum Gas (LPG) from the Arabian Gulf and the US Gulf Coast to destinations in
Europe, Asia and the Far East. Avance Gas was formed in 2007 and is listed on the Oslo Stock Exchange (OSE).

SASB Activity Metrics

For report questions or feedback, contact
the Company by sending an email toIR@avancegas.com or call +47 23 11 40 00.

Key highlights

ACTIVITY METRICUNIT OF MEASUREDATA 2020

DATA 2021

DATA 2022

SASB
REFERENCE

Number of shipboard personnel n

Number

273

273

252

TR-MT-000.A

Total distance travelledby vessels oNautical miles (nm)1 009 680

1 169 371

1 150 819

TR-MT-000.B

Operating days p

Days

5 016

4 745

4 848

TR-MT-000.C

Deadweight tonnage

Deadweight tonnes

749 398

702 689

819 326

TR-MT-000.D

0.39

4

LOST TIME INCIDENT FREQUENCYDUAL FUEL NEWBUILDS ON ORDER

5%

IMPROVEMENT IN ANNUAL EFFICIENCY RATIO
Number of assets
in fleet q

Number

14

13

15

TR-MT-000.E

Number of vessels
port calls r

Number

413

319

377

TR-MT-000.F(AER, CO2 PER DWT-NM)

135.6
EBITDA0

NUMBER OF SPILLS*All letter references are indexed and listed on page 25 in this document, containing definitions and assumptions to the information provided.

2 • 2022 • Environmental Social Governance

CONTENT / ABOUT THIS REPORT • 3

Introduction

The Liquified Petroleum Gas (LPG) value chain
Access to energy is vital for economic and social development, and natural gas is one of the mainstays
in the global energy mix. Liquefied Petroleum Gas (LPG) is a portable, readily available and increasingly
recognised as a cleaner form of energy source. Although primarily obtained from natural gas and oil
production, LPG is increasingly produced from renewable sources, such as biogas and biomass.

Avance Gas reached several milestones in 2022 where
the fleet renewal strategy set back in 2019 is startingto materialise. We started the year by taking deliveryof our first two of six VLGC dual fuel newbuildings
capable of running on LPG while offloading threeolder VLGCs during the course of the year. This has
resulted in a 5% reduction in CO2 emission compared
to 2021, thus our target of a minimum 2% reduction
for the year has been met. At year-end 2022, we were10% ahead of Poseidon Principle trajectories and well
positioned to meet the 2030 and 2050 targets set by IMO.

LPG BULKSUB DEPOT

NATURALGAS
PROCESSINGLPG
TANKERREFRIGERATEDORPRESSURIZEDSTORAGETERMINAL

LPG GASCYLINDERFILLING
PLANT

COOKINGCYLINDERRETAILER

LPG is used in various sectors, including retail, transportation
and agriculture. It is also widely used for domestic heating andcooking fuel, especially in low to middle-income countries.
This is where LPG has its biggest socio-economic impact, as it
replaces traditional cooking fuels such as wood, charcoal andkerosene.

deaths1. With close to half of the global demand for LPG
coming from residential cooking and heating demands, theInternational Energy Agency (IEA) recognises LPG as a key
factor in addressing negative health impacts associatedharmful emissions from traditional cooking fuels, such as solid
biomass 2,3.

The World Health Organisation estimates that 7 million people
die prematurely every year from air pollution related diseases,
such as respiratory illness and cancer. Exposure to smokefrom cooking fires causes 3.8 million of these premature

We believe Avance Gas provides an important contribution bymaking LPG and its related benefits available to customers allover the world.

1 Air pollution (who.int)
2 https://www.iea.org/sdg/cooking/3 Winners, losers and unintended consequences in the outlook for oil product demand – Analysis - IEA

4 • 2022 • Environmental Social GovernanceIn addition to investing in preparations for ammonia
as fuel for the four VLGCs contracted in 2021, we haveduring the year upgraded the two last newbuildings toload ammonia as cargo. While we recognise that theuse of ammonia as fuel is dependent on overcoming
safety challenges across the entire supply chain
and the availability of green ammonia, we believethat these investments will strengthen our futurecommercial and operational opportunities with zero
emission solutions.
We continue to advance the ‘Decarbonisation project’
which provide us with a solid understanding of how tofurther optimise our fleet and operations in a costefficient and sustainable way using a holistic andsystematic approach.

systems, training and controls implemented, AvanceGas had no breach of sanctions or any cyber security
incidents during the year 2022.
One of our top priorities is the health, safety and wellbeing of our people, both at sea and onshore. Throughcooperation with ship managers one of our key
focus the past years have been well-being initiatives
ensuring that all seafarers have access to mental
health support through digital platforms. During theyear, new content was introduced and mental healthawareness training was given to personnel on board
our ships.
When it comes to financing, Avance Gas has
continued to incorporate commitment of reducing
emissions into our financing. In May 2022, we signed
a $555 million sustainability linked facility to refinancenine VLGC in the fleet and to finance newbuildings
three and four. At year end, 75% of the fleet bears asustainability link mechanism and we are proud tohave that support from our banking group.
With that, I invite you to read our sustainability
report. We are proud of the progress we’ve made andwelcome your questions and comments about the
information presented within.

During the year, the project has provided us with afully digitalised ship performance and emission data,
ensured EEXI compliance and a ten-year CII roadmap
for each of our vessels while performng EU-ETS
preparations prior to the effective date in 2024.
Avance Gas has a comprehensive complianceprogram and we conducted a full compliance risk
assessment. Given the geopolitical situation since
Russia’s invasion of Ukraine at the start of the year,
breach of sanctions dominated our risk map followedby cybercrime. Owing to the various compliance

RANDI NAVDAL BEKKELUND
Chief Financial Officer (CFO)
Avance Gas

KEY HIGHLIGHTS / CEO LETTER • 5Our approach to ESG

Avance Gas will continue to work to improve performance in these areas, and has developed specific ESG targets to addressthese material topics:
SDGS

At Avance Gas, ESG is a core aspect of how we work, and it is fully integrated into our business model.
We believe that clear guidance and robust control mechanisms are essential to safeguard the proper
handling of sustainability risks in our daily operations. We have established policies and control processes
to manage our employees and partners and to ensure compliance with all applicable international and local
laws and regulations. Our ESG framework reflects the incorporation of the UN Global Compact principles inour operations in general, and our enhanced ESG management system in the form of a digital platform.

TOPIC

TARGET

2022 PERFORMANCE

Direct climate impacts

Reduce emissions equalling
outperformance of the Poseidon
Principles trajectory (at least 2%
annually), measured as AER.

5% reduction in CO2 emissions
from 2021

E

AVANCE GAS’S GOVERNING INSTRUMENTS ON ESG:

The Board of Directors (BoD) is responsible for ESG at
Avance Gas. The BoD oversees the ESG strategy, ensures thatappropriate and effective ESG-related risk management andinternal control systems are in place, and annually reviews our
corporate governance framework.
In line with the Norwegian Corporate Governance Code, theBoD has considered important ESG matters throughout theyear and has reviewed our annual ESG report. The BoD’s Audit
Committee monitors reports and complaints received by thecompany relating to internal controls and compliance. All
incidents are reported to the BoD in an annual review.
In 2023, the BoD targets to delegate responsibility andauthority to a dedicated ESG Committee to act as a preparatory
and advisory body for the BoD in exercising its responsibility
for the consideration and preparation of ESG matters. The
Committee will meet on a semi-annual basis to address
sustainability topics. It will also be responsible for overseeing
the Company’s policies, reporting practices as well as its ESGrelated programmes.
The Chief Financial Officer (CFO) carries the responsibility forthe daily implementation of ESG-related policies at AvanceGas, as well as ensuring performance and risk management.
The technical managers optimise fleet operations in termsof emission management and are the first in line to handle

6 • 2022 • Environmental Social Governance

0% Lost Time Incident Rate

Health and Safety

See page 17 in this report

0.39

S

+ Corporate Code of Business Ethics and Conduct+ Financial Crime Policy+ Sanction Policy+ Ship Recycling Policy+ Environmental Policy+ Know Your Business Partner Policy

RESPONSIBILITIESEstablish a baseline in 2023

Waste

Diversity

incidents. Crewing and ship management are both outsourced
to third parties that are closely supervised and assessed by our
fleet manager.

G

Zero gender pay gap per position

Zero pay gap per position

Screening and monitoring 100% of new
and existing business partners

100%

Influencing business partners
on key aspects of ESG
Completion of e-learning at 100% on anannual basis

100%

MATERIAL TOPICS
To identify areas that are material to our business, weundertook a comprehensive materiality assessment in 2021
following the GRI 3 Materiality Standard and the SASB Marine
Transportation Standard (2018).
In 2022, we reviewed these topics against stakeholder
feedback from employees, investors and customers; market,
regulatory and technological developments; and the reportingof our peers.
Our review of potential material impacts considered both theseverity and likelihood of our impacts on the environment,
society and the economy, as well as financial materiality.
The following topics have been deemed by the BoD as material
to our ESG efforts:
•
•
•
•
•
•

Climate impact
Waste
Health and safety
Diversity
Corruption, bribery and money-laundering
Influence on business partners

INDUSTRY COOPERATION
Some of the challenges our industry is facing require joint
action. Through cooperation with other stakeholders –including industry and regulatory authorities – we aim to stayahead of the curve on material risks and opportunities and stay
up to date on the newest technological developments.
Together with industry peers such as Frontline, Flex LNG,
SFL and Golden Ocean, Avance Gas has established an
ESG forum with the expressed purpose to design industryleading approaches to ESG risk management and reporting
parameters.In addition, we actively participate in and support
the following initiatives:• The Neptune Declaration• The Maritime Anti-Corruption Network (MACN)• The Clean Shipping Alliance• The International Association of Independent Tanker
Owners (Intertanko)• Oil Companies International Marine Forum (OCIMF)• Society of International Gas Tanker and Terminal
Operators (SIGTTO)OUR APPROACH TO ESG • 7

Sustainability Governance
COMPLIANCE APPROACH
Avance Gas has a comprehensive Compliance Program led
by our Compliance Officer ensuring that we conduct ourbusiness in an honest and ethical manner, and in June 2022,
our Compliance department was further strengthened withthe hire of a legal counsel. We have established policies andprocedures outlining how the Company manages ESG issues
to help mitigate potential risks. All Avance Gas’s policies andprocedures were updated in Q3 2022.
To enhance our communication in respect of the compliancerisks we are facing, Avance Gas provides training to all
employees and management through in-person training
sessions and an e-learning platform. This training is also
made available as an option for the BoD. For instance, wehave a separate section on the Company’s intranet that makes
all policies, training materials and news easily available forall employees. Our communication and training regarding
compliance and governance help our company follow laws,
reduce risks of corporate and personal liability and operate
effectively.
In 2022, we conducted a full Compliance Risk Assessment
to identify and mitigate the compliance risks Avance Gas is
exposed to. The Compliance Risk Assessment resulted in a risk
map covering all identified risks, with sanctions and cybercrime
dominating the risk map.
Avance Gas monitors its fleet on an ongoing basis and receive
alerts if any vessel is in proximity to a sanctioned area. We also
include sanction clauses in all contracts where relevant, suchas charterparties. In addition, third-party testing, strict due
diligence requirements and monitoring of business partners
are all measures that can also significantly reduce the risk ofany sanction violation. Avance Gas had no breach of sanction
during the year 2022.
Maritime cyber risk refers to a measure of the extent towhich a technology asset could be threatened by a potential
circumstance or event, which may result in shipping-related
operational, safety, or security failures due to information orsystems being corrupted, lost or compromised.
The highest level of cyber risks for Avance Gas includes
being targeted for ransomware attacks with extortion oremail phishing. As a result of this, in 2022, we conductedcyber training and phishing tests. The awareness training for
employees and key third parties such as our ship managers is
considered a key risk-mitigating action in this regard. AvanceGas had no breach of sanction incidents during the year 2022
Owing to the various compliance systems and controls
implemented, Avance Gas has been able to apprehend andmanage the above-mentioned challenges.

8 • 2022 • Environmental Social Governance

TOP COMPLIANCE RISKS IN 2022
Breaches of sanctions (e.g., an existing business partner, such as a time charterer, becomes subject to sanctions, or a third party
acting on our behalf becomes subject to sanctions). Note: currently not significantly exposed for new sanctions following the
war in Ukraine.
Ransomware attack with extortion
Email phishing leading to payment to a wrong bank account/owner (fraudulent payments)
Severe breaches of human and labour rights (including safety incidents) at yards used for newbuildings (e.g., the danger to life andhealth, child labour, forced labour)
Severe breaches of human and labour rights (including safety incidents) at yards used for dockings (e.g., the danger to life and health,child labour, forced labour)
Employee misusing, selling, or otherwise voluntarily sharing sensitive/confidential information (including insider trading)
Corruption, bribery payments at yards used for newbuildings and dockings
Corruption, bribery on board vessels
Facilitation payments on board vessels (e.g., port customs)
Low-risk level: As a starting point, no need for further risk mitigation
Medium risk level: Further risk mitigation actions should be evaluated to reduce the probability for the risk incident to occur
Substantial risk level: Further risk mitigation actions must be evaluated to reduce the probability for the risk incident to occur
High-risk level: As a general guidance – immediate risk mitigation actions are required to reduce the probability for the risk-incident to occur.
A strong focus on further strengthening steering and control is requested

ANTI-CORRUPTION AND BUSINESS ETHICS
Avance Gas is committed to conducting its business honestly
and ethically, as outlined in our Corporate Code of Business
Ethics and Conduct (the Code) and Financial Crime Policy.
Our Financial Crime Policy further commits us to the moststringent rules and regulations.
In addition to the sanctions and cybercrime risks, we continued
to face bribery and corruption risks in 2022. These risk areas
are subject to continued risk-mitigating actions, such as
due diligence on business partners, reporting on facilitation
payment demands to MACN and anti-corruption and bribery
clauses in contracts. We also provide training to all employees
and key third parties in identifying potential non-compliancewith such policies, both by e-learning and seminars.
Our anti-corruption and money laundering policies aremodelled after the UK Bribery Act and US Foreign Corrupt
Practices Act (FCPA). The policies apply to all entities
controlled by Avance Gas’s officers, directors and employees,
as well as workers and third-party consultants, wherever they
are located. Assessing and monitoring business processes,
training, and controls are fundamental tools in implementing
our anti-corruption policy.

The Code describes our expectations and requirements
relating to:• Compliance with laws and regulations• Honest and fair dealing• Conflict of interest and corporate opportunity• Anti-corruption• Confidentiality and privacy• Proper use of company assets• Anti-discrimination and harassment• Integrity of corporate records.
The Code specifies how violations of the Code are managed
and obliges employees who observe or become aware of asituation they believe to be in violation of the Code to promptly
notify their manager.
As part of our Financial Crime Policy and associatedcompliance procedures, appropriate risk-based
communication and training are provided to employees aspart of their onboarding and ongoing development. Suspected
deviations from our policy are to be reported to the line
manager or our anonymous whistleblowing platform provided
by Speak Out, a hotline available through our website. The
platform is open to everyone, including staff, seafarers and

GOVERNANCE • 9those outside of our organisation. The whistleblowing facility is
tested quarterly by Avance Gas’s Compliance Officer.

to mitigating risks in our supply chain, and we expect ourbusiness partners to meet our standards.

We have had zero whistleblowing and zero litigations
concerning any form of corruption in 2022.

Our main target going forward is continuing our efforts fighting
corruption by ensuring ongoing education of employees andkey third parties, in addition to taking part in best practice
discussions with other key players in the industry. We aim
to have zero monetary losses resulting from any form ofcorruption also in 2023.

Avance Gas has been a valuable member of MACN since 2020
and, by its membership, commits to their vision of a maritime
industry free of corruption. Through MACN, Avance Gas has
joined forces with other members of the shipping industry toshare information and approaches, but also to engage withauthorities and civil society. MACN members collaborate withlocal authorities to develop solutions that are beneficial to allparties and are realistic to implement. Based on reports fromour ship managers, we report facilitation payment demands
to MACN every quarter. Any facilitation payments made,regardless of value, are investigated in cooperation with ouroperations team and ship managers. MACN also provides ad
hoc assistance if required.
We use Transparency International’s Corruption Perception
Index (CPI) when assessing and mitigating risks our businessis facing. Our compliance program also includes quarterly
reporting on bribery attempts or concerns, contractual
risk mitigation, third party testing, creating awareness andencouraging reporting of concerns through Speak Out. It also
includes screening and 24/7 monitoring of business partners
and beneficial owners in respect of adverse media relating tocorruption and bribery. Our integrity due diligence contributes
ACCOUNTING METRICSYSTEMS FOR SUPPLIER MONITORING
Avance Gas uses the DowJones RiskCenter platform for third
party screening and monitoring. All employees receive training
in using the system for onboarding new third parties. The
Compliance Officer is responsible for screening and ensure
approval process is in accordance with our internal policy.
With a few exceptions, all third parties are onboarded, screened
against sanction lists and other official lists and monitored
on an ongoing basis. The screening process is sometimes
extended to include searches in other online databases, third
party Integrity Due Diligence reports (Infospectrum) andthrough external legal advice on a case-by-case basis. We
conduct checks internally once a year on spend reports fromaccounting, and our auditor conducts spot checks on an ad
hoc basis. Our company policy provides further information on
the above process.

UNIT OF MEASUREDATA 2020

DATA 2021

Number20

20

At Avance Gas, we recognise our responsibility to manage and limit our environmental impact. The main
environmental and ecological risks posed by the shipping industry are related to emissions, discharges,
and spills. We work diligently to manage such risks, and our efforts are critical for protecting the environment
and the societies in which we operate, as well as our customers and our own business. We regularly review
all identified environmental risks to establish appropriate safeguards and to mitigate any adverse impacts on
the environment.
Our Environmental Policy outlines how we are to reduce harmful emissions through the optimal operationof vessels, new technologies and diligent work with our Ship Energy Efficiency Management Plan (SEEMP).
Through the Shipman agreement all ship managers are required to comply with Avance Gas’s Environmental
Policy. The ship management companies ensure distribution of this policy to all relevant parties in their fleets
and incorporate it in the respective vessel’s Safety Management System. The management systems areannually audited in accordance with the International Safety Management (ISM) Code, and ISO 9001 and ISO
14001 where appropriate. If any breach of the policy occurs, we are committed to ensure that an investigation
is carried out to establish the root causes and corrective actions to prevent recurrence.

ACCOUNTING METRICUNIT OF MEASUREDATA 2020

DATA 2021

DATA 2022

CO2 EMISSIONSDATA 2022

CORRUPTION INDEX
Number of calls at ports in countries thathave the 20 lowest rankings in Transparency
International’s Corruption Perceptions Index

Environment

Gross global Scope 1 emissions

Metric tonnes (t)CO2-e

449 043471 450446 727

Emission efficiency

gCO2/DWT-nm

8.32

7.46

7.11

Not applicableNot applicable

4.58

23

CORRUPTION
Total amount of monetary losses as a resultof legal proceedings associated withbribery or corruption

EEDI
Reporting currency000
Average Energy Efficiency Design Index(EEDI) for new ships

Grammes of CO2 per
ton-nautical mile

OTHER EMISSIONS TO AIR

10 • 2022 • Environmental Social GovernanceNOx (excluding N2O)

Metric tonnes (t)10 47412 01810 726SOx

Metric tonnes (t)

1 380

1 073

932

Particulate matter

Metric tonnes (t)

752

638

493

GOVERNANCE / ENVIRONMENT• 11

CLIMATE CHANGE AND AIR EMISSIONSThe year 2022 bore witness to unprecedented and extreme
weather conditions, underscoring the pressing need to tackle
the underlying causes of climate change. Despite being 16
times more energy-efficient than other transport modes on
average1, there is no doubt that our industry needs to takedecisive action to deliver significant energy efficiency andemission reduction. This will require close collaboration
with governments and other stakeholders to develop andimplement effective policies and regulations that incentivise
the adoption of low-carbon technologies.
Meanwhile, investments in research and development,
infrastructure, and alternative fuels are critical to driving thenecessary innovation and facilitating the industry’s transition
toward a more sustainable future.
Avance Gas is dedicated to advancing the shipping industry’s
sustainability through various measures, including improved
logistics, enhanced hydrodynamic technology, bettermachinery and cleaner fuels. Our commitment to this cause isembodied in our renewal strategy, which includes phasing out
old design and investing in new technology.

mitigate our risks and capitalise on opportunities provided byincreasingly stringent environmental laws and regulations, aswell as customer expectations.
IMO’s emissions reduction targets are scheduled to be revisedat the Marine Environment Protection Committee (MEPC 80)
session in July 2023. This revision is expected to be followed
by a wave of regulations, including requirements supporting
the use of greener shipping fuels as well as market-based
measures putting a price on carbon. In addition, 2023 marks
the initial reporting year for the Carbon Intensity Indicator(CII). The CII determines the annual reduction factor needed toensure continuous improvement of a ship's operational carbon
intensity within a specific rating level. This rating level, where
the threshold will become increasingly stringent towards 2030,
ranges from ‘A’ (major superior) to ‘E’ (inferior).
In 2022, Avance Gas’s annual efficiency ratio (AER) was 7.11
which is an 5% reduction from 2021. Going forward, our aim
is to sharply improve the fleet weighted average AER and beahead of the IMO trajectory towards 2030.
1

Lindstad, E. et al. (2022).

During the year, we sold three older vessels (2008-9 built)
while we took delivery of two dual fuel newbuildings capableof running on LPG. Further, for the four remaining dual fuelnewbuildings the Company has invested in modifications
during the newbuilding phase preparing for ammonia as fuel.

DECARBONISATION JOURNEY TOWARDS 2030-2050
In 2020, we initiated our “Decarbonisation journey towards
2030-2050”. The purpose of this strategy is to provide us witha solid understanding of how to further optimise our fleet andoperations in a cost-efficient and sustainable way using aholistic and systematic approach.
Our strategy puts us in an optimal position to make operationaland strategic decisions based on verified data, and we are
already experiencing compelling benefits, such as• Lower overall costs• Being better positioned toward our charter market• Being better positioned toward cargo owners andend-consumers• A more carbon-robust fleet with lower emissions• Future-proofing compliance with upcoming regulations
As of 2022, the project has delivered:
FULLY DIGITALISED SHIP PERFORMANCE AND EMISSION DATA:
Our digital monitoring platform Veracity enables live trackingof each vessel’s emissions and energy consumption. It is an
important tool to closely monitor, manage and report on ESGrelated KPIs as well as our performance against regulations.
Avance Gas’s performance and emissions data are online, andhence guided figures for main KPIs such as AER, EEOI and
CO2, can be provided instantly. DNV is our selected vendor
for verification.

EEXI ROADMAPS FOR 2023: Avance Gas has establishedroadmaps for compliance with IMO’s Energy Efficiency Existing
Ship Index (EEXI). Our fleet has gained from having a long-term
focus on energy efficiency.
CII ROADMAPS FOR EACH VESSEL: A ten-year Carbon Intensity
Indicator (CII) roadmap is established for each of our vessels.
We have identified the technologies needed and quantified
the required investments. These roadmaps have given us asolid understanding of how to optimise our operations more
efficiently and sustainably, and we consider ourselves wellpositioned toward future regulatory demands.
EU ETS READINESS: In December 2022, the EU’s legislative
bodies reached an agreement on including shipping in the
EU’s Emission Trading System (EU ETS) from 2024 onwards.
Avance Gas supports the upcoming regulation, as it aligns withour commitment to reduce our carbon footprint and contributeto a low-carbon economy. We have already taken several
measures to improve our energy efficiency and reduce our CO2
emissions, and we believe that the shipping industry’s inclusionin the EU ETS will incentivise further improvements, as well as
create a level playing field with other modes of transport.
EDGE COMPUTING: Avance Gas is continuously investing in
Edge computing, obtaining digital twins for all vessels entering
our fleet. High frequent data increase our ability to identify
future hazards and to take timely and qualitative actions,maintaining our position as a premium operator.

Ammonia as fuel is a source of zero emission fuel for shipping
provided that the safety challenges are solved across the entire
supply chain, production of green ammonia is available, andthe full technology is ready. Blue and electro ammonia arepromising marine fuels because they do not require carbon
for production and do not generate CO2 during combustion.
Additionally, we have also invested modifications to carryammonia as cargo for the two last dual fuel newbuildings.
In addition to investing in new ships, we have modified ourexisting fleet to be more efficient, as emissions are directly
linked to fuel consumption. Our long-term focus on maintaining
a modern, energy-efficient fleet has positioned us well to

SUSTAINABILITY-LINKED FINANCING
In 2022, Avance Gas took a significant step towards decarbonisation by securing sustainability-linked
financing for 75% of our fleet. This financing includes an annual sustainability margin adjustment
mechanism that is directly linked to our ambitious goal of reducing our carbon emissions and outperforming the carbon intensity targets set forth in the Poseidon Principles.

12 • 2022 • Environmental Social Governance

ENVIRONMENT • 13

AVANCE GAS’S DECARBONISATION TOOLBOXAREAATTAINABLE
EFFICIENCYGAINS

Avance Gas’s fleet is equipped with various energy-saving technologies and, in 2022, we updated ourdecarbonisation toolbox to provide an accurate picture of our progress when it comes to implementing
various measures. The technologies used are divided into four main categories:

TECHNOLOGY

Hull & Propeller
Engines

TECHNICALEFFICIENCY

1-10%

Additional power
generation
Aux power
demandBoiler systems

Onboard carbon
captureFUTUREPROPULSION

Assisted
propulsion

10-100%

Alternative
fuels

OPERATIONAL
EFFICIENCY

BUSINESSSTRATEGY
EFFICIENCY

1-15%

Underwater
operations
Voyage planning& execution

Crewengagement

1-25%

Speed reduction
Cargo utilization
optimization

Fleet wide implemented

14 • 2022 • Environmental Social GovernanceWaste heat recovery
Shaft generator
Solar power
Shore power

Hybridization
Engine de-rating
Engine tuning
Shaft motor (PTO)
Variable freq. drive
LED lighting
HVAC systems
Maneuvering equipment

TECHNICALEFFICIENCY

Avance Gas has, through its affiliation with Frontline Management, extensive
experience in handling new vessel construction. This experience has enabled
us to implement energy-saving technologies fleet-wide, ncluding dual fuelpropulsion, modern hull design, propeller optimisation and pre-swirl ducts.

FUTUREPROPULSION

The future of ship propulsion is moving towards alternative fuels, assisted
propulsion and onboard carbon capture. In 2022, Avance Gas expanded its
fleet to include two state-of-the-art ammonia-ready LPG vessels, and we
expect the delivery of four additional newbuildings in the coming year. Our
goal is to work closely with regulators and vendors to ensure that we haveclear and comprehensive guidance on the use of new technologies. We arecommitted to staying informed and up-to-date on the latest developmentsin this field, and to implementing best practices that prioritize safety andsustainability.

OPERATIONAL
EFFICIENCY

Operational measures such as hull cleaning, propellor polishing and weather
routing are fully implemented across our fleet. These are cost-effective
measures that can result in significant fuel savings, making them a win-win
solution that reduces both emissions and fuel costs. To promote cooperationand faster decision-making, we utilise s-Insight provided by StormGeo forreal-time data sharing – where ship and shore have a common operational
picture.

BUSINESSSTRATEGY
EFFICIENCY

We continuously focus on strategies such exploring new technology and fueltypes while executing on our renewal strategy, as crew training, just-in-timearrival and speed adjustments to optimise the efficiency and performance of
our fleet. We will continue to develop our strategy, as building a competitiveand greener fleet is key to protecting Avance Gas’s position as a leading
LPG carrier.

Hull form optimization
Hull coating
Air cavity lubrication
Hull retrofit (bulb)
Propeller re-fitting
Propulsion improvement devices

Steam plant operation
Exhaust gas boiler
Cargo systems

Sails
Rotor sails
Kites
Dual fuel LNG/LPG
Biofuels
Ammonia
MethanolHydrogenHull maintenance
Propellor polishing
Weather routing
Trim & Draft optimization
Engine load optimization
Rudder use optimization

Edge computing
AI assistance
Crew training
Overall trade slow down
Virtual port queue
Just in time arrival
Triangulation

Partially implemented

Pilot stage

ENVIRONMENT • 15

CLIMATE-RELATED RISKS
Climate change poses physical, technological, regulatory
and reputational risks to Avance Gas. The Task Force on
Climate-related Financial Disclosures (TCFD) provides a usefulframework for assessing these risks, and this is a summary of
Avance Gas’s current approach:
GOVERNANCE: Climate-related risks and opportunities
are regularly reviewed by the BoD as part of its overall
responsibility for risk governance.Management provides the
BoD with regular updates on climate-related risks, including
emerging regulations, developments in the company’s
performance on the decarbonisation strategy – emissions
reduction trajectories and technological developments.
STRATEGY: Since 2020, Avance Gas has incorporated
decarbonisation as an integral part of its business strategy.
Our aim is to own and operate a modern and fuel-efficient
fleet that has a low-carbon footprint.We are committed toachieving the IMO 2030 targets as a minimum threshold.
Decarbonisation is not only the right thing to do for theenvironment, but it is also a sound business decision. LPG
plays a key role in reducing carbon intensity across retail,agriculture and households. Alongside liquefied natural gas(LNG), it is also identified by DNV as one of the most feasible
fuels for adoption by the maritime industry in the transition to
low-carbon fuels as it meets the minimum thresholds in termsof availability and economic viability.

RISK MANAGEMENT: Climate risk identification isincorporated into our general risk management and internal
control system. Every year the BoD reviews climate-relatedrisks and opportunities, as part of a general risk review
process. This includes risks and opportunities for complying
with the EEXI and CII that entered into force in 2023. In thisapproach financial risk is isolated to study operational risks.
We asses risks in a short-term and a five-ten-year perspective.
This is then shared with the Board of Directors.
Market risks and financial risks are assessed every day.
Regulatory changes and technological development have been
the two most important risk drivers for the company. At AvanceGas, we understand the importance of climate-related risks
and actively participate in discussions on this topic in various
forums. We hold regular management meetings, engage with
our technical department, and participate in the ESG forum
to stay informed and proactively manage our climate-relatedrisks.
TARGETS AND METRICS: Our CII values are calculated using
the Average Efficiency Ratio (AER) measured as grams of CO2
per deadweight ton-nautical mile. The CII rating level, where
the threshold will become increasingly stringent towards 2030,
ranges from ‘A’ (major superior) to ‘E’ (inferior). Avance Gas iscommitted to an A-rating.

SPILLS, DISCHARGES AND ECOLOGICAL IMPACTS
Emissions, discharges and potential spills present
environmental risks, as well as reputational and operating risks
for Avance Gas. We recognise our responsibility to safeguard
the environment and give great prominence to improving ourenvironmental performance and protecting biodiversity. Marinetransportation is associated with risks to the surrounding
environment with negative impacts on biodiversity. These
impacts are related to ship pollution, collisions, noise,grounding and anchor damage, and transportation of invasive
species.
Avance Gas is aware that the larger volumes of oil spills haveserious and long-lasting negative impacts on ecosystems.
Incidents may cause the degradation of ecosystems, grave
injuries or fatalities. Avance Gas experienced zero oil spills
or other types of releases to the environment in 2022. If an
incident related to spills were to occur, our ship managers are
obliged to notify us without delay and follow up with a situation
report. A full investigation report is then to be submitted nolater than 14 days after the incident has taken place.
Whilst ballast water is essential for shipping operations, it
may also represent serious ecological, economic and healthrisks, as ships become a vector for the transfer of organisms
between ecosystems. Through the International Convention
for the Control and Management of Ships' Ballast Waterand Sediments (BWM Convention), the IMO has imposed
guidelines for ballast water management systems specifying
the maximum amount of viable organisms allowed to bedischarged from a vessel's ballast water. As of 31 December
2022, 83% of our vessels have ballast water treatment systems
installed, with 100% on track by 2024.
Unsafe waste management and disposal from ships can readilylead to adverse environmental and health consequences. The
prevention of pollution by waste from ships is regulated by the

16 • 2022 • Environmental Social GovernanceInternational Convention for the Prevention of Pollution from
Ships (MARPOL) Annex V, which prohibits the discharge ofmost waste into the ocean.
Going forward we intend to develop a baseline from our 2022
waste figures and to reduce 2023 figures by 3% against thatbaseline. From there, we will consider whether the 3% reduction
was ambitious enough and set a new target for 2024 and thefollowing five years, with an aim to halve our waste disposal by2029.
Ships contain hazardous materials, and ship recycling must
therefore be performed according to strict standards to protect
human health, safety and the environment. Avance Gas
endeavours to comply with all applicable legislation in respectof the recycling of its end-of-life vessels where relevant, suchas The Basel Convention, the United Nations Convention on
the Law of the Sea, The EU Waste Shipments Regulations,
MARPOL and the European Ship Recycling Regulation. Even
though the Hong Kong Convention is not yet in force, AvanceGas intends to voluntarily comply with the Convention where
possible. This regulation aims to ensure that ships, whenrecycled after reaching the end of their operational lives, do notpose a risk to the safety of workers or to the environment.
Avance Gas has a Ship Recycling Policy to make sure thatany future recycling of our ships may only take place at an
approved yard compliant with the Hong Kong Convention,and that our MOAs with cash buyers include a compliancewarranty. This policy is reviewed and updated periodically toreflect changes in legislation and ongoing learning and goodpractice. We always assess the risk of recycling when selling
any vessel. With that in mind we include adequate clauses
pertaining to further trading and ship recycling in the contract
for sale. Any recycling must be conducted in an ethical, safeand environmentally friendly manner, in line with the ten
principles of the UN Global Compact.

ENVIRONMENT • 17

SocialAvance Gas’s ambition is to ensure a safe and diverse place to work, that human rights are respected, that all
workers have decent working conditions, and to improve the well-being of all our employees. Our actions are
guided by industry and international standards, in line with what is expected by our key stakeholders. In thissection, we explain how we are meeting our strategic commitments to health and safety, human rights andlabour rights protection, diversity and inclusion and human capital development.

actions are identified and tracked until implemented. The
incident reporting system allows analysis of incident trends
and aims to strengthen barriers to avoid similar incidents
from taking place in the future. Our document control system
ensures that lessons learned whether from an incident or bestpractice observed in handling routine or non-routine work, areshared across the fleet. We are ambitious in developing coredata analytics capabilities where having a solid data foundation
is key. Our reporting systems form part of this foundation andare intended to be built with artificial intelligence capabilities indue course.

HEALTH AND SAFETY

HUMAN RIGHTS

At Avance Gas, our number one priority is the health, safety andwell-being of our people, both at sea and onshore. We value
diversity and cultural differences and aim to have an inclusive
workplace that provides equal opportunities for all employees
regardless of sex, religion, skin colour, sexual orientation or
disability. The health, safety and general welfare of the crew is
a top priority, and we have implemented several measures inthis regard, not only towards requirements to ship managers,
but also when it comes to crew training and the facilities
onboard our vessels.
Through our involvement with the Neptune Declaration, we
have supported our ship managers with the implementationof well-being initiatives and have ensured that all seafarers
have access to mental health support. For instance, during
the pandemic, we rolled out a wellbeing app that provides
our seafarers with a private connection to a psychologist
through their own personal devices. In addition, the app uses
AI, games and nudge techniques to gauge a person’s moodand improve their mental health. The platform allows us tomonitor weak signals and act proactively to support crew andstrengthen safety. In 2022, new content was introduced – andofficers onboard our ships have received a session run by apsychologist on mental health awareness.
Given the safety and security risks connected to operationsat sea, these must always be managed carefully to safeguardcrew, vessels, cargo and the environment. Our company has azero-accident ambition and operates according to the principlethat no serious injury or environmental incident is acceptable.
The Company’s increase from LTIR of zero in 2021 to LTIR of
0.39 relates to a finger injury while assisting on shifting thecargo reducers from storage position. The shipboard employee
received appropriate medical assistance and a formal
investigation to identify the root cause was carried out. AvanceGas has also performed preventative measures that can be
employed to prevent recurrence.
All work tasks at Avance Gas are evaluated in terms of thehazards inherent to the job, prior to the work itself being
undertaken. Work is planned on a monthly, weekly and daily

18 • 2022 • Environmental Social Governancebasis with an evaluation of the relevant hazards, indicatingwhere risk assessments should be developed to fully explore
the risks and apply the hierarchy of controls to eliminate
hazards and reduce risks. For work considered particularly
hazardous, such as enclosed entry or work from heights, a“permit to work” system ensures that the work planned, and therisk assessment developed is reviewed by relevant personnel
from the HSEQ and the Technical department onshore.
Together the safety management system and predictive
maintenance system ensure that routine work is plannedin advance to allow due attention to the hazards and risks
inherent in the work offshore.
Avance Gas ensures that key systems, such as the safety
management system, are audited at a minimum on an annual
basis by independent auditors. In addition, individual vessels
are inspected at regular intervals by Port State Control (PSC)
inspectors and by our customers. A Ship Inspection Report
Programme (SIRE inspection) is conducted when dealing with
LPG vessels. Our Technical department, through the HSEQ
function, also performs audits on an annual basis.
Crew and personnel onshore can report a range of work-related
hazards or hazardous situations through near-miss reporting
and unsafe acts reporting systems. We recognise that fear of
reprisals may hinder some people from raising concerns andtherefore we have a Stop Work Policy where it is made clearthat any person may stop work if they deem the work unsafe.
In addition, we promote a culture of “learner mindsets” where
mistakes are seen as opportunities to learn and develop. Ourcrew has a direct reporting line to the Designated Person
Ashore (DPA), and an anonymous whistleblowing hotline, thatallows them to report on any circumstance that gives rise
to concern. The DPA has regular one-to-one meetings withmanagement.
Work-related incidents are investigated using robust accident
investigation techniques and include methods appropriate to
the incident, such as technical examinations and interviews ofstaff along with recreating the accident trajectory. Reporting
follows DNV’s Marine Systematic Cause Analysis Technique,and data is captured in an incident reporting system whichallows for analysis of the root causes of the incident. Corrective

Avance Gas is fully committed to respecting fundamental
human rights and human rights due diligence in our business
operations and value chain. We recognise the rights set out
in the UN International Bill of Human Rights and ILO's Core
Conventions on Fundamental Principles and Rights at Work,and we act in accordance with the UN Guiding Principles for
Business and Human Rights (UNGPs), the OECD Guidelines
for Multinational Enterprises and national laws such as theNorwegian Transparency Act.In 2022, Avance Gas carriedout a Human Rights Risk Assessment in accordance withthe requirements of the newly implemented NorwegianTransparency Act. Norwegian law firm Wiersholm wascontracted to carry out an assessment and gap-analysis of ouroperations and assess what adverse impact risks they might
have on human rights and decent working conditions.
We conducted an overall human risk analysis of the Group'sbusiness operations and value chain in accordance with thesteps of the UNGPs and the Transparency Act.
The purpose of the analysis was to map and better understandthe human rights risks we are facing, and to determine the needfor further follow-up measures in addition to general measuresalready implemented, such as revising our Code of Conduct
and further strengthening our focus on human rights in our risk
assessments and business partners screenings.

ACCOUNTING METRICUNIT OF MEASURE

The analysis enabled us to distinguish three prioritised humanrights risk areas going forward, which are:
• Shipbuilding, ship repairs and dry-docking• Sale of ships and ship recycling• Crew
This risk prioritisation detailed on page 20 does not in any
way entail that we will not continuously assess and manageother risk areas, such as procurement, but these are the threeareas we will give extra focus to going forward in our humanrights work. We strive to ensure that our business partners
and suppliers share our human rights commitment andstandards. We also conduct compliance testing of a selectionof our business partners with the purpose of identifying andmitigating compliance risks, including human rights risks.
Focusing on the importance of openness, we urge employees
and third parties to speak out about concerns or reportsuspected misconduct or violations of our Code of Conduct
through our external whistleblowing channel. As a memberof MACN, we report facilitation payment demands every
quarter to help defeat corruption, as we view its presence as
weakening the overall protection of human rights.
The training we offer to employees and management(including at the BoD) aims to build competence andknowledge amongst our employees on a wide range ofcompliance matters, including human and labour rights. We
aim to provide training on human rights issues to 100% of ouremployees.
To further ensure that human rights are not violated, we
include audit rights and termination clauses in our contracts
with business partners. In doing so, we aim to provide regularand randomised book audits (incl. assessment of wages andworking hours), announced and unannounced on-site visits
and inspections, as well as interviews with the crew. This
comes in addition to formalised annual meetings with all ship
managers. We aim to include human rights clauses in 100% of
contracts where relevant.

DATA 2020

DATA 2021

DATA 2022

0

0

0.39

LOST TIME INCIDENT RATE
Lost time incident rate (LTIR)

Rate

MARINE CASUALTIES
Incidents

Number0

0

0Very serious marine casualties

Percentage (%)

0%

0%

0%

SOCIAL • 19

PRIORITISED HUMAN RIGHTS RISK AREAS

SHIPBUILDING,SHIP REPAIRS AND
DRY-DOCKINGLABOUR RIGHTS AND DECENT WORKING CONDITIONS

Shipbuilding and repairs are labour-intensive activities that may concern
a series of human and labour rights issues, both when it comes torisks of accidents and injuries, and when it comes to risks of worker
exploitation. Shipbuilding and dry-docking are mainly conducted inSouth Korea and China. We have a Shanghai office, which gives us
valuable knowledge and insight into risks and the area, and we have
locals that regularly visit business partners. This comes in addition to
the compliance testing and screening carried out as part of our generalcompliance program. Our screening includes the use of concrete followup measures for improvements toward business partners and highlights
where it is preferable to terminate business relationships.
Through our continuous screening and monitoring, we terminate ourrelationship with counterparties where we have identified severe humanrights issues.

We seek to ensure that our employees, onshore and offshore,
are working under conditions that meet the requirements set
out in the International Labour Conventions and the Maritime
Labour Convention. As part of safeguarding seafarers’ labour
rights, these conventions include the right to collective
bargaining, and that no employee is discriminated against. The
PSC and the OCIMF Ship Inspection Report Programme (SIRE)
are implemented, ensuring that applicable labour rights arebeing complied with.
Avance Gas does not have a direct contractual relationshipwith our seafarers. This means that we do not enter intocollective bargaining agreements with seafarers, although we
require our ship managers to comply with the requirements of
the International Transport Workers’ Federation.
We conduct screening and monitoring of our business
partners, and we monitor our fleet, pursuant to internal
procedures, such as our Know Your Business Partner Policy, toensure compliance with our ethical standards in all business
relations, including human and labour rights.

DIVERSITY AND INCLUSIONSALE OF SHIPS AND
SHIP RECYCLING

CREW

The risks related to the sale of ships and ship recycling mainly relate
to the risk of ships ending up in a process of "beaching" or an informal
shipbreaking process, involving risks related to workers as well as local
communities and the environment. The risks will be similar to the ones
associated with shipbuilding, and if relevant, we will apply the same typeof measures to prevent and mitigate any risks.

There are several human and labour rights risks related to seafaring.
The working environment on a ship, with extended periods offshore,
can create limited insight and weak law enforcement, which increase
the risks of worker exploitation. This can take the form of excessive
working hours, poor wage levels and risks of modern slavery. To address
such risks, we select our ship managers carefully through thoroughdue diligence and assessment. This means that crewing and ship
management are outsourced to leading third-party ship managementcompanies, who are supervised, closely monitored and assessed
throughout our business relationship. We further encourage, expect andrequire all ship managers to comply with our own standards of businessethics, human rights and labour standards.

Avance Gas prohibits discrimination against any employee,or any other person based on sex, race, colour, age, religion,
sexual orientation, marital status, national origin, disability,
ancestry, political opinion or any other basis.
The Company prohibits unlawful harassment, and employees
are expected to treat one another with respect. We also
expect our contractors, suppliers and other business partners
to aspire to similar standards of fair treatment and equal
opportunities for their employees.
Avance Gas is an international company that values diversity
and cultural differences. Our offshore employees come fromacross the world, with the main nationalities being Indian andFilipino. While our offshore employees are predominantly male,
28% of our onshore employees are female as of December 31,

2022. Our materiality assessment and the following review
identified diversity as a material topic. One of our targets
to address this topic is to achieve zero gender pay gap per
position. By focusing on closing the gender pay gap, we ensurethat women are paid the same as men for doing the sameamount of work, and that there is no discrimination based on
gender. It also helps to create a level playing field for womenin our workforce, and it can encourage more women to enterand remain in a traditionally male-dominated industry such as
shipping. In 2022, Avance Gas had zero pay gap per position.

HUMAN CAPITAL AND EMPLOYMENT DEVELOPMENT
Our success is built on the ability, determination and dedicationof our staff, both onshore and at sea. We recognise the valueof our staff and try to promote from within wherever possible.
Employees are encouraged to identify training needs throughtheir development plan. To assist with this, we provide several
opportunities for employees to develop their skills and careers.
This includes training in skills to improve interpersonal
competence, such as leadership development andcommunication training and technical skills relevant to the
execution of their work, such as Electronic Chart Display
and Information System (ECDIS) training or specific training
courses for technical machinery.
E-learning is carried out when staff is onboarded on an annual
basis. We have also integrated aspects within this training
connected to GDPR and data protection. In-person trainingis also carried out in all our offices either once per year or
bi-annually. In addition, we have several webinars throughout
the year made available to all employees, such as Dow Jones
RiskCenter training.
In 2022, 100% of our employees and management teamcompleted our e-learning, including watching a mandatory
webinar held by Wiersholm about insider trading. The coming
year, Avance Gas will introduce a “Compliance AwarenessWeek” to increase awareness and to continue to improve our
e-learning and in-person training sessions.

ONSHORE EMPLOYEESFull time*MALE

FEMALEUNDER 30 YRS

30-50 YRSOVER 50 YRS

72%

28%

14%

43%

43%

*Avance Gas only has full time employees.

20 • 2022 • Environmental Social Governance

SOCIAL • 21

Appendix
SUSTAINABILITY ACCOUNTING STANDARD DISCLOSURESTOPIC

ACCOUNTING METRICUNIT OF MEASURE

2020

2021

2022

SASB CODE

471 450446 727

TR-MT-110a.1

CO 2 EMISSIONS

Greenhousegasemissions

Gross global Scope 1
emissions: Financial control a

Metric tons (t) CO2-e

Discussions of long-termand short-term strategy
or plan to manage Scope
1 emissions, emission
reduction targets, and ananalysis of performanceagainst those targets

Qualitativedescription

Indirect emissions: Scope 2,purchased electricity b

Metric tons (t) CO2-e

Not reported

Not reported

Location based: 0.1
Marked based: 6.5

Additional

Indirect emissions:
Scope 3, business travel b

Metric tons (t) CO2-e

Not reported

Not reported

9.85

Additional

449 043

See page 12-16

TR-MT-110a.2

ENERGY CONSUMED

Total energy consumed

Gigajoules (GJ)

5 934 145

5 966 370

5 622 760

TR-MT-110a.3

Percentage of energy
from heavy fuel (%)

25%

41%

48%

TR-MT-110a.3

Percentage of energy
from renewable/lowcarbon sources (%)

0%

0%

0%

TR-MT-110a.3

EEDI & CARBON INTENSITY INDICATOR
Average Energy Efficiency
Design Index (EEDI)
for new ships c

Grams of CO2e per
ton-nautical mil

Average Energy Efficiency
Design Index (EEDI) for fleet

Grams of CO2e per
ton-nautical mil

Not applicableNot applicable

4.58
TR-MT-110a.4

Not disclosed

7.46

7.11

OTHER EMISSIONS TO AIR
Air Quality

NOx (excluding N20) d

Metric tons

10 47412 01810 726

SOx d

Metric tons

1 380

1 073

932

Particulate matter dMetric tons

752

638

493

13

14

TR-MT-160a.1

TR-MT-120a.1

MARINE PROTECTED AREAS
Shipping duration in marine
protected areas or areasof protected conservation
status e
Ecologicalimpacts

Number of travel
days

29

IMPLEMENTED BALLAST WATERf

Exchange

Percentage (%)

100%

100%

100%

TR-MT-160a.2

Treatment f

Percentage (%)

61.5%

61.5%

83%

TR-MT-160a.2

SPILLS AND RELEASES TO THE ENVIRONMENT

22 • 2022 • Environmental Social Governance

Incidents

Number g

0

0

0

TR-MT-160a.3

Aggregate volume g

Cubic meters (m3)

0

0

0

TR-MT-160a.3
APPENDIX • 23

SUSTAINABILITY ACCOUNTING STANDARD DISCLOSURES (CONT.)TOPIC

ACCOUNTING METRICUNIT OF MEASUREDISCLAIMER AND ASSUMPTIONS FOR THE SASB REPORTING
2020

2021

2022

SASB
CODE

CORRUPTION INDEX
Number of calls at
ports in countries thathave the 20 lowest
rankings in Transparency
International’s Corruption
Perceptions Index h

Number20

20

23

TR-MT510a.1

CORRUPTION

Business
ethicsTotal amount of monetarylosses as a result of legal
proceedings associatedwith bribery or corruption

Reportingcurrency

000TR-MT510a.2

FINES AND SANCTIONS
Number of fines and totalmonetary value of fines

Non-monetary sanctions
for non-compliance withlaws and/or regulations
Employeehealth andsafetyNumber andreporting currency

0

0

0

Additional

Incidents

Very serious marine
casualties k
Accident& Safety
Management

0

0

0

Additional

Rate

0

0.39

TR-MT320a.1

0

TR-MT540a.1

0%0%TR-MT540a.1

00TR-MT540a.2

0Number
Percentage

0
0%

0

CONDITIONS OF CLASS
Condition of class orRecommendations m

Number0

PORT STATE CONTROL
Deficiencies l

Rate

0.52

0.25

0.42

TR-MT540a.3

Detentions l

Number

0

0

0

TR-MT540a.3

DIVERSITY
Onshore employees bygenderc Average Energy Efficiency Design Index (EEDI) for new ships:

k Very Serious Marine Casualties: A marine casualty involving the“financial control” approach defined by the GHG Protocol has been
applied. Scope 1: all vessels, based on fuel consumption for theyear.

d Particulate matter (PM), NOx, SOx emissions (Metric tonnes):

The methodology has been developed with support from DNV,
based on IMO factors.

MARINE CASULATIESjb Indirect CO2 emissions: Scope 2 is based on electricity
consumption in reporting year and calculated using the AIB
Residual Mixes 2021 conversion factors (location based andmarket based). Scope 3 is based on business travel in the reporting
year, figures provided by travel agent. A further mapping of Scope 3
emissions will be considered in 2023

a CO2-emissions – scope 1: Based on IMO emission factors. Thee Shipping duration in marine protected areas or areas of

NumberNumberMale: 3
Female: 3

Male: 5
Female: 4

Male: 5
Female: 3

Additional

protected conservation status: A marine protected area is not
as defined by the International Union for Conservation of Nature(IUCN). However, the reported number does not necessarily include
all Marine protected areas internationally established and regulated
in International the Marine Organisation (IMO) Conventions andareas established nationally by member states. Shipping duration is
the sum of the travel days (24-hour periods).
f Percentage of fleet implementing ballast water exchange andtreatment: Only ships performing ballast water exchange with anefficiency of at least 95% volumetric exchange of ballast water havebeen included. When it comes to treatment, approved systems
must discharge (a) less than 10 viable organisms per cubic meterthat are greater than or equal to 50 micrometres in minimum
dimension and (b) less than 10 viable organisms per millilitre thatare less than 50 micrometres in minimum dimension and greaterthan or equal to 10 micrometres in minimum dimension.
g Spills and releases to the environment (Number, Cubic meters

Individuals in theorganisation’s
governance bodies
by gender

24 • 2022 • Environmental Social Governance

NumberMale: 4
Female: 1

Male: 4
Female: 1

Male: 3
Female: 1

Additional

total loss of the ship, a death, or severe damage to the environmentthat is not related to oil spill. Any deaths shall be reported. If thedeath is decisively concluded not to have anything to do with amarine (very serious) casualty such as latent and unknown illness
shall be addressed separately for a case-by-case discussion.
Severe damage to the environment that is not related to oil spill iscovered by “Very serious marine casualties”.
l Port State Control: Number of port state control deficiencies (1)and detentions (2). 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 have chosen to report this number as arate: number of deficiencies per Port State Control Inspection.
Detentions are reported in number of actual cases. The figure
represents number of detentions received from regional PSC
organisations.
m Number of Conditions of Class or Recommendations: Thoseconditions/recommendations of class that has led to withdrawalof vessel certificates of otherwise has invalidated the ship’s
compliance are included in this figure.
n Number of shipboard personnel: Only the number of employees

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

(m 3)): The total number of oil spills to the environment (overboard),
excluding contained spills.

o Total distance travelled by vessels: The distance (in nauticalh Number of calls at ports in countries that have the 20 lowest

p Operating days: Total operating days, i.e. total number of vessel-rankings in Transparency International’s Corruption Perceptions
Index (CPI): In the event that two or more countries share the 20th
lowest ranking, all have been included in the scope of disclosure.
The list is based on the CPI for 2020.
i Lost time incident rate (LTIR): A lost time incident is an incident

Diversity

j Marine Casualties: Regarding SASB TR-MT-540a.1, the reportingis in accordance with the standard, however injuries to personnel
as described in section 1.1.1 are 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.
Section 1.1.7 “Severe damage to the environment” is reported
under ‘Ecological Impacts’ and/or “Very serious marine casualties”.
Incidents concerned with oil spills, re SASB 1.1.7 “Severe damage tothe environment” is covered under “ecological impact”. For an event
to be reported as a marine casualty, one or several out of the below
criteria must be true: (1) the loss of a person from a ship, (2) the
loss, presumed loss, or abandonment of a ship, (3) the stranding or
disabling of a ship that triggered a Lloyds Open Form Salvage or the
involvement of a ship in a collision that would seriously endanger
the safety of life or property, or (4) material damage to marine
infrastructure external to a ship, that could seriously endanger thesafety of the ship, another ship or an individual.

New ships average EEDI is based on new ships entering the fleet in2021 (keel laid after July 2013).

LOST TIME INCIDENT
Lost time incident rate
(LTIR) i

The information provided is based on the best data available atthe time of reporting. The ESG disclosures should be used tounderstand the overall risk management of sustainability related
issues, however, in some areas data are based on estimates,
please see comments below.

that results in absence from work beyond the date or shift when
it occurred. Lost time incidents are Fatalities, Permanent Total
Disabilities, Permanent Partial Disabilities and Lost Workday Cases.
The rate is based on lost time incidents / 1,000,000 hours worked.

miles) travelled by all vessels during the reporting period.

days for active vessels during the reporting year. Active vessels
are referring to vessels which were in possession of the shipowner
during the reporting year.
q Number of assets in fleet: Reported number of owned during

the reporting year.
r Number of vessels port calls: Total number of port calls during

the reporting period.

APPENDIX • 25

GRI INDEXGRI STANDARDDISCLOSURE

LOCATIONGRI STANDARD

LOCATION

GRI 2: GENERAL
2021 2021
GRI 3:DISCLOSURES
MATERIAL TOPICSGRI 2: GENERAL DISCLOSURES
2021DISCLOSURES 2021
GRI 2: GENERAL
2-1

Organisational details

Page 2; Page 28. The Company’s Headquarter is in Bermuda

2-2

Entities included in the organisation’s sustainability reportingPp. 2-3. Please also see 2022 Annual report

2-3

Reporting period, frequency and contact point

Page 3; Page 28. The Annual ESG report published on
14.04.2023

2-4

Restatements of information

There were no restatements of information madein the reporting period

2-5External assurance

Partial assurance – Scope 1 CO2 emissions verified by DNV

2-6

Activities, value chain and other business relationships

Page 2; Page 4

2-7

Employees

Page 21; Page 24

2-8

Workers who are not employees

2-8: Page 21; Page 24

2-9

Governance structure and composition

Corporate Governance reportin the Annual Report for 2022 andCode of Business Ethics and Conduct

Nomination and selection of the highest governance body

Corporate Governance reportin the Annual Report for 2022 andCode of Business Ethics and Conduct

2-11

Chair of the highest governance body

Corporate Governance reportin the Annual Report for 2022 andCode of Business Ethics and Conduct

2-12

Role of the highest governance body in overseeing the managementof impacts

Page 6 and Corporate Governance Report in the Annual
Report for 2022

2-13

Delegation of responsibility for managing impacts

Page 62-14

Role of the highest governance body in sustainability reporting

Page 62-15

Conflicts of interest

Code of Business Ethics and Conduct

2-16

Communication of critical concerns

Pp. 9-10

2-17

Collective knowledge of the highest governance body

Page The Board of Directors consists of industry experts.
The BoD has access to the company’s e-learning modules

2-10

DISCLOSURE

3-1

Process to determine material topics

Page 6

3-2

List of material topics

Page 6

MATERIAL TOPIC: DIRECT EMISSIONS
3-3

Management of material topics

Pp. 11-15

305-1

Direct (Scope 1) GHG emissions

Page 12305-2

Indirect (Scope 2) GHG emissions

Page 23305-3

Indirect (Scope 3) GHG emissions

Page 23

305-7

Nitrogen oxides (NOx), sulphur oxides (SOx), and other significant air emissions

Page 23

MATERIAL TOPIC: ENERGY MIX
3-3

Management of material topics

Page 12

302-1

Energy consumption within the organisation

Page 23

MATERIAL TOPIC: CORRUPTION RISK
3-3

Management of material topics

Pp. 8-10

205-2

Communication and training about our anti-corruption policies and procedures

Pp. 9-10

205-3

Confirmed incidents of corruption and actions taken

Pp. 9-10

MATERIAL TOPIC: SPILLS AND RELEASES
3-3

Management of material topics

Pp. 16-17

306-3

Significant spills

Pp. 16-17

2-18

Evaluation of the performance of the highest governance body

Corporate Governance report in the Annual Report for 2022

2-19

Remuneration policies

Corporate Governance report in the Annual Report for 2022

2-20

Process to determine remuneration

Page 6 and Corporate Governance report in the Annual
Report for 2022

3-3Management of material topics

Pp. 18-19

2-21

Annual total compensation ratio

Not disclosed

403-1

Occupational health and safety management system

Pp. 18-19

2-22

Statement on sustainable development strategy

Page 5403-6

Promotion of worker healthPp. 18-19

2-23

Policy commitments

Page 6; Page 9; Page 11; Pp. 18-19

403-9

Work-related injuries

Pp. 18-19

2-24

Embedding policy commitments

Page 62-25

Processes to remediate negative impacts

Pp. 6-10

2-26

Mechanisms for seeking advice and raising concerns

Pp. 9-10

2-27

Compliance with laws and regulations

Page 82-28

Membership associations

Page 72-29

Approach to stakeholder engagement

Pp. 6-7

2-30

Collective bargaining agreements

Page 2126 • 2022 • Environmental Social Governance

MATERIAL TOPIC: OCCUPATIONAL HEALTH AND SAFETY

MATERIAL TOPIC: DIVERSITY AND EQUAL OPPORTUNITY
3-3

Management of material topics

Page 21405-1

Diversity of governance bodies and employees

Page 24

MATERIAL TOPIC: SUPPLIER SOCIAL ASSESSMENT
3-3

Management of material topics

Page 10414-1

New suppliers that were screened using social criteria

Page 10; Page 20

APPENDIX • 27

BERMUDA

AVANCE GAS HOLDING LTD

PO Box HM 1593
Par-la-Ville Place
14 Par-la-Ville Road
Hamilton HM 08

NORWAYAVANCE GAS AS AS

Bryggegata 3
P.O.Box 1327-VIKA
0112 Oslo