Accelerating Our Transformation
ESG Report 2022

		Contents

4

Welcome From Our CEO			

6

About Navigator 					82022 Highlights 					

10Our Material Issues 					

12Our Stakeholder Engagement 					

14Our ESG Strategy

16

Our ESG Governance					

18Advancing The SDGs 					

20Accelerating Our Climate Change Action

24

Minimising Our Environmental Impacts

27

Empowering People To Thrive

31

Creating A Safe And Secure Workplace

35

Promoting Integrity With Our People And Suppliers

39

Looking Ahead 					

40Summarizing Our Performance41

Our Approach To Disclosure

43

Sustainability Accounting Standards Board Report

45

Taskforce For Climate-related Financial Disclosures Table

46

Advisories

Accelerating Our Transformation – ESG Report 2022 | 3

Accelerating Our Transformation
Welcome From Our CEO

For Navigator Gas, 2022
was a watershed year.
Against the backdrop of
the continued integrationof Ultragas and Navigator,
we strengthened our ESG
strategy to respond to therisks and opportunities we
see in the market to delivera more sustainable future.

Financially, we had a solid 2022, which we ended on a robust financial
standing, as we paid down debt alongside a very positive outlook. This put
us in a strong position to accelerate the progress made to date on our ESG
journey. Joining as Chief Executive Officer in 2022, I made this one of mypriorities, and our completely refreshed ESG Report is an example of ourambition in this space.

Listening To Our Stakeholders
We started our journey with engaging our stakeholders. For our clients,
Navigator is the first port of call to transport their cargo. We represent
them to their customers when we deliver their cargo. They are increasingly
asking us how we can do that in a better and cleaner way. Many of ourteam members are also asking us about our approach to climate change
because they want to be part of a more sustainable solution, and our
choices today will influence their future careers in the shipping industry.
With the inclusion of shipping in the European Union’s Emissions Trading
System, we see that environmental regulation will increasingly demand
we improve our environmental efficiency. Other stakeholders, such as thelenders that provide us credit to finance vessels, are also expecting us totake steps on decarbonization and diversity & inclusion.

At Navigator, we want to lead theshipping industry in transforming
itself in light of the low-carbon
transition
Mads Peter Zacho,
Chief Executive Officer

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Accelerating Our Transformation – Welcome From Our CEO

Steering An Ambitious Course
With the input of our stakeholders, we developed a more comprehensive
ESG strategy in 2022. Building on our success to date, Navigator will play aleading role in ‘fueling the future’. We underpin our strategy with three key
aims:

•
•
•

Contribute to the shipping industry’s target to become
net zero by 2050
Derive one third of revenues from green cargo such as blue/green
ammonia and CO2 by 2030
Ensure that 35% of onshore leadership positions are filled by
women by 2028

Collaborating For Progress
We work closely with our Board on these important matters. We decided
to set up an ESG Committee under the Board in 2022: they are passionate
and experienced Directors that can help accelerate our ESG journey. We’ve
also appointed our first Head of ESG and ESG team to further drive ourtransformation.
I wanted to finish on a personal note. As I am writing this, I am
approaching my one-year anniversary as CEO of Navigator. I joined theCompany because I saw a fantastic opportunity to play a leading part indriving the transition to a low-carbon world. Our corporate strategy, our
new ESG strategy – all of it is about making the most of the opportunitythat this transition brings. Our transformation has only just begun.

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Connecting The World Today
About Navigator

We play a vital role in the
global liquefied gas supply
chain. Our sophisticatedvessels and marine export
terminal provide a safe,
efficient and reliablefloating pipeline connecting
producers and end users.

Navigator Holdings Ltd. (‘Navigator’, ‘Navigator Gas’ or ‘the Company’)is a publicly listed Company on the New York Stock Exchange. We play a
critical role in the seaborne transportation and regional distribution of themost complex liquified gases. We do this as the operator and owner of 56
semi- or fully refrigerated liquified gas carriers – the largest fleet of handysized vessels worldwide – and the world’s largest ethylene marine export
terminal based in Houston, United States. We ship predominantly liquified
petroleum gas (LPG), petrochemicals and ammonia for energy companies,
industrial users and commodity traders.
Headquartered in London, we also have offices in Copenhagen, Gdynia,
Houston and Manila. We generated revenues of $473.8 million in the 2022
financial year with an adjusted EBITDA of $212.7 million, an increase of
32.7% from 2021. In 2022, we employed a total number of 778 people(151 onshore colleagues and 627 offshore officers). The Company sailed a
total distance of 3,189,134 nautical miles with a total deadweight
tonnage of 1,075,068 across 15,487 operating days (not including theHappy fleet). This equaled 1,402 vessel port calls across the year with a
total of 6,354,501 metric tons of cargo carried across global waters.

Memberships And Associations

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Connecting The World Today – About Navigator

Our Business ModelIn Navigator’s upstream supply chain hydrocarbons
are explored, produced, refined and processed into
liquid petroleum gas (LPG), petrochemical gases
and ammonia. This is then transported to the marine
export terminal and/or ports worldwide.
Navigator Gas Marine Export Terminal
Navigator’s ethylene marine export terminal in Texas– a joint venture with Enterprise Products Partners has the capacity to export approximately 1.0mn tonsof ethylene per year. Refrigerated storage for 30,000
tons of ethylene is being constructed on-site andwill provide the capacity to load ethylene at rates ofnearly 1,000 tons per hour.
Navigator Gas Fleet

NAVIGATOR FLEETWith 56 seagoing vessels in 2023, Navigator
provides seaborne transportation and regional

NAVIGATOR FLEET

distribution of liquified petroleum gas (LPG),

NAVIGATOR FLEET

petrochemical gases and ammonia for energy
companies, industrial users and commodity traders.

The products that Navigator transports havea positive and substantial impact on our
livelihoods.

LPG

LPG is a clean and efficient energy source that has
the lowest carbon footprint of any off-grid fossil fuel.
Ammonia is a key component of fertilizers which
are essential for food production contributing
significantly in the fight against world hunger.
Petrochemicals are integral to modern life withnumerous applications such as medical equipment
manufacturing, solar panels and building insulation.

Looking Into The future
Navigator can catalyze the green transition byfocusing on transporting materials that will support
the decarbonisation of heavy industry worldwide. For
instance, Navigator has the capability to transport
green and blue hydrogen as well as captured CO2.

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Accelerating Our Transformation
2022 Highlights

Climate•Improved Weighted Annual Efficiency Ratio to 13.54•

Rolled out new digital greenhouse gas accounting 			platform•

Reported Scope 3 category 3 fuel- and energy-related 		
activities and category 7 employee commute for the
first time

Environment•

No loss of containment into the environment•

Zero penalties imposed for non-compliance with 			environmental laws•

Improved Fleet Sustainability Score to 0.76

Accelerating Our Transformation – ESG Report 2022 | 8

People & Communities•

Achieved 34% women in onshore positions•

Committed $100,000 to corporate philanthropy•

Reached 28 female officers and cadets across the fleet

Health & Safety•

Completed safety maturity assessment•

Achieved zero COVID outbreaks on our vessels•

Maintained zero security incidents on our vessels

Governance & Supply Chain•

Set up Board ESG committee and appointed first
Head of ESG•

Became member of Maritime Anti-Corruption Network•

Launched strengthened whistleblowing policy

Accelerating Our Transformation – ESG Report 2022 | 9

Identifying What Is Important To Us

HIGH

Our Material Issues

Our Materiality Matrix
Climate Change

Reducing Emissions

Ethics & Values
Health & Safety
Diversity & Inclusion

Regulatory Compliance

Employee Recr., Dev, & Retention

Source: Company annual reports & websites; External and internal interviews; BCG analysis

Importance for stakeholders

Port/State Engagement

Energy Use

Health & Wellbeing

Security Threats

Innovation & Research

Human Rights

Supply chain impact

Corporate GovernanceCorporate Tax Contributions

Water

Capacity Building

Governance

Waste

SocialEnvironmental

LOW

Community Impact

LOW

Navigator operates in a
fast-changing world facing
many pressing challenges,
ranging from climatechange, income inequality togeopolitical instability. How
do we determine which ofthese matter to us and on
which we can have a positive
impact as a business?

Key

Navigator Gas’ Business Criticality

HIGH

Identifying where Navigator can have a positive impact starts with asking
a range of stakeholders what they perceive as our most ‘material’ issues.
The term ‘material’ indicates that these issues could have a significant
impact on the Company’s performance. That is why this process is called a‘materiality assessment’.

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Identifying What is Important To Us – Our Material Issues

Our Materiality Process
In 2022, Navigator refreshed its materiality assessment to determine
whether the expectations of its shareholders with regards to its material
issues had changed. With the support of an external advisor, we identified
nine groups of internal and external stakeholders. We engaged colleagues
from every part of our Company, clients, shareholders, regulators, lenders,the capital markets, non-governmental organizations and industry groups
to understand what they view as the material issues for Navigator.
Using a combination of quantitative – such as surveys – and qualitative –such as interviews – tools, we developed a ranking of the most important
issues. Following the Global Reporting Initiative 3: Material Topics (2021)
guidelines, this ranking took not only the importance of these issues
to stakeholders into account but also how material the issues are to
Navigator.
Using a combination of quantitative – such as surveys – and qualitative –such as interviews – tools, we developed a ranking of the most important
issues. Following the Global Reporting Initiative 3: Material Topics (2021)
guidelines, this ranking took not only the importance of these issues
to stakeholders into account but also how material the issues are to
Navigator.
The outcome of the materiality process was discussed by senior
management, and they approved the material issues. Visualized in theaccompanying Materiality Matrix, these issues played a significant role instrengthening our ESG strategy and the content of this report.

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Maintaining An Effective Dialogue
Our Stakeholder Engagement

Maintaining an open andhonest dialogue with theCompany’s internal andexternal stakeholders isfundamental to the successof Navigator’s corporate and
ESG strategy. Who are our
stakeholders and how do weengage them?

Navigator regularly engages with its stakeholders. We use a range ofcommunication tools, from face-to-face and town hall meetings to
newsletters, social media channels and regulatory publications such as
the Annual (20-F) Report and ESG Report. Visualized in the accompanying
table, the topics and frequency of the stakeholder engagement are driven
by our senior management.

OnshoreColleagues

OffshoreColleagues

Suppliers

Stakeholders
Industry Groups& NGO’s

Clients

International
Organizations &Governments

Shareholders

Lenders & Financial
Markets

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Accelerating Our Transformation – ESG Report 2022 | 13

Fueling The Future
Our ESG Strategy

In response to climate change,
the world is in the process ofdecarbonizing its economy.
As the owner of the world’s
largest handy-sized liquefied
gas carriers, Navigator has a
responsibility to contribute tothis decarbonization effort.

The renewable share in final energy consumption reached 11.5% in 2019
and accounted for 28% of global electricity generation in 2021 according
to the International Energy Agency1. Growth of renewable energy can, will
and must happen, but for the foreseeable future hydrocarbons will remaina part of the energy mix. Navigator recognizes its responsibility to play its
part in decarbonizing hydrocarbon supply chains in the economy.
To live up to our purpose of connecting the world today while creating asustainable tomorrow, it is crucial that we develop a compelling visionand strategy that reflects this responsibility. This is not only to show
how we can contribute to net zero in shipping but also to facilitate thedecarbonization of supply chains through transporting greener cargo.

Developing Our ESG Strategy
Our ESG journey started in 2019 with the publication of our first CSR
Update. In 2022, we worked with Boston Consulting Group and the Mærsk
McKinney-Møller Center for Zero Carbon Shipping to strengthen our ESG
strategy, building on our progress of the last few years. Responding to theincreasing expectations of our stakeholders and addressing our material
issues, the Board and senior management approved a comprehensive
approach that aligns to our corporate strategy.

Accelerating Our Journey
At the heart of our ESG strategy sit three ‘lighthouse’ focus areas, where
we believe that we are, through our capabilities, able to make the biggest
impact and lead our industry. These focus areas contain ambitious
commitments that illustrate the acceleration needed to achieve our end
goal. All of this is underpinned by the need to do this safely, reliably andefficiently for and with all stakeholders.
As part of the ESG strategy, we built internal roadmaps on how to achieve
our ambitious targets in our ‘lighthouse’ focus areas. These identify the
key operational levers we can utilize to drive progress as well as theirassociated capital expenditure and resource requirements. In addition,
they include short- and medium-term milestones for the three ‘lighthouse’
areas as well as the other areas on which the ESG strategy depends,
such as health & safety, supply chain, innovation & research, regulatorycompliance and ethical behavior.
1

Source: https://www.iea.org/fuels-and-technologies/renewables

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Fueling The Future – Our ESG Strategy

Key Leverss

As the largest handy-sizedshipping company, our vision
is to catalyze the green
transition, safely, securely,
reliably and efﬁciently.

Key AimLighthouse
Area
Contributing to
Net Zero Shipping
Catalyzing a
Low Carbon World
Driving a
Diverse & Inclusive
Shipping Industry

Safe and secure
operations,reliable and
efﬁcient service
and ethicalbehaviour
underpins ourstategy.

• Improve technologicalContribute to theshipping industry’s
target to reachnet zero by 2050

Derive one third ofrevenues from carrying
green and blue cargo
by 2030

Achieve 35%
women in onshore
management roles by2028

efﬁciency of vessels• Improve operational
efﬁciency of vessels• Launch e-ammonia andCO2 product offering• Launch customer
emission dashboards• Invest in green energy
production upstream• Ensure that 45%

of hires onshore are
women• Achieve 30% women in
the Board of Directors• Set up inclusion council
and launch employee
resource groups

Fueling The Future

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Turning Promises Into Action
Our ESG GovernanceAccelerating progress on
ESG is about achieving
sustained behavior change
among stakeholders. Thismeans putting in place clear
policies, robust control
mechanisms and engaging
communications. How does
Navigator approach this?

To drive and oversee the implementation of our ESG strategy, we set up
internal structures and processes that embed ESG considerations in our
behavior and decisions throughout our Company. These ESG governancestructures allow us to manage potential risks, take advantage ofopportunities and be held accountable for our progress and performanceby all our stakeholders.

Leading From The Top
The Navigator Board holds responsibility for ESG. Reflecting theincreasing ambition of the Company and the growing expectations of
our stakeholders, the Board set up an ESG Committee in 2022. This
Committee, chaired by Dr. Odedra, consists of Dr. Fischer and2022 was the year
in which we moved

Mr. Weidinger and started meeting in 2023.
The ESG Committee is the main corporate body providing oversight ofESG, and it is responsible for overseeing the Company’s ESG strategy,

forward on ESG

monitoring its progress against its targets and reinforcing a culture ofwith purpose.

opportunities are overseen by the Audit Committee and ESG Committee,

We’ve developed an
ambitious strategy

open discussion and communication on ESG issues. ESG-related risks andand ESG-linked executive remuneration is overseen by the Compensation
Committee.

that connects the

Operationalizing ESG

world today while

The Chief Executive Officer is responsible for the implementation of ourcreating a sustainableappointed its first Head of ESG in 2022, who is driving the day-to-day

tomorrow

ESG strategy. In this, he is supported by senior management. Navigator
operationalization of ESG. Leaders in HR, procurement, finance andtechnology as well as other business leaders play a crucial part inaddressing ESG issues. There are also champions throughout the company
who volunteer to implement specific initiatives alongside their roles.

Dr. Anita Odedra
Non-executive Member
Of The Board,
Chair Of ESG Committee

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Turning Promises Into Action– Our ESG Governance

Board ofDirectors

ESG
Committee

Audit
Committee

Head of
ESG

Compensation
Committee

SeniorManagement

Business
Leaders

Champions

Accelerating Our Transformation – ESG Report 2022 | 17

Promoting Sustainable Development
Advancing The SDGs

Businesses do not operate
in a vacuum. As a shipping
company, we depend on theocean and waterways, theinstitutions of society suchas schools and universities
that educate the people wework with, and nature, which
provides the cargo we ship.
And of course, everything
we do has an impact on theworld around us.

To underscore this interconnectedness, we used the Sustainable
Development Goals (SDGs), developed by the United Nations in 2015as a call to action for people worldwide to address five critical areas ofimportance by 2030 – people, planet, prosperity, peace and partnership– to inform our ESG strategy. Navigator supports the 2030 Sustainable
Development Agenda and believes that we can make a valuable
contribution to its delivery. As part of our ESG strategy, we identified
seven SDGs that align with our focus areas and industry and represent ourmaterial issues. Contributing to the broader global agenda of the SDGs isin our interest as they affect all our stakeholders.

Navigator’s operations have the most significant
impact on the following SDGs
Navigator’s critical rolein transporting ammonia
is making a significant
contribution to increasing
agricultural yield. This
helps combat hunger.

Navigator is committed to
upgrading infrastructure
and retrofit industries by
ensuring our operations
become sustainable anddelivering low carbon
cargo to other industries.

Navigator is committed toensuring women’s full andeffective participation inleadership roles. We haveset ambitious diversity
and inclusion targets inline with the Goal.

Navigator has committed
to disclosing its
sustainability impacts
throughout mandatory
and voluntary reporting.

Navigator plays anessential role indistributing LPG asaffordable and clean
energy.

Navigator plays anessential role in reducing
our plastic use in effort toprotect life below water.

Navigator is committed
to ensuring a safe
and secure working
environment as well as
Equal opportunity and pay
for men and women andpeople with disabilities.

Navigator is committed
to preventing bribery
and corruption in its
operations and supply
chain.

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Accelerating Our Climate
Change Action
ClimateImproved Weighted Annual
Efficiency Ratio to 13.54
Rolled out new digital greenhousegas accounting platform
Reported Scope 3 category
3 fuel- and energy-related activities
and category 7 employee commute
GHG emissions for the first time
Accelerating Our Transformation – ESG Report 2022 | 19

Accelerating Our Climate Change Action
ClimateClimate change is a reality
and has a direct impact
on society and the global
economy. Businesses havea responsibility to mitigate
their climate impacts
wherever possible.
But the transition to a
low-carbon world alsopresents opportunities.

As a large employer, we recognize that we have a responsibility to address

What is Navigator’s approach
to climate action?

with the Board, which delegated responsibility for its oversight to the Audit

the environmental impacts of our onshore and offshore operations. Our
objective is to reduce our impact on the climate and help others do thesame. Reflecting its status as a priority for our stakeholders and for theCompany, we strengthened our climate strategy in 2022 and introduced
ambitious targets and lighthouse initiatives.

Driving Climate Up The Agenda
Navigator considers climate change a material risk to the Company. Our
climate change-related risks are disclosed, in an aggregated form, in our
Annual 20-F Report. Responsibility for the governance of these risks sits
Committee and the ESG Committee, the latter established in 2022.
We also see the transition to a low-carbon world as presenting
opportunities for growth for Navigator. We believe that the climate
action we take today offers the Company compliance cost savingsand opportunities to grow our market share in the long term. We see
opportunities for transporting green cargo such as blue and green
ammonia and CO2 storage and transport. These climate-change-related
opportunities are also overseen by the ESG Committee of the Board.
At senior management level, climate change risk and opportunity areoverseen by the Chief Executive Officer. He leads risk mitigation byimplementing the ESG strategy and operationalizing ESG together with
the ESG team. Supported by the Chief Commercial Officer, he also leads
the development of climate-change-related opportunities with clients andsuppliers.

Accelerating Our Transformation – ESG Report 2022 | 20

Accelerating Our Climate Change Action – Climate

Developing Our Climate Strategy
In order to develop a comprehensive climate strategy,
Navigator identified the most significant transition
risks for the Company. They are:•

Changing energy mix: while the share of

renewable energy in the global energy mix is growing,
to date there has not been a material reduction inhydrocarbon-powered energy due to the continuous
growth in the global demand for energy. In the context
of decarbonizing supply chains, we anticipate a future
shift away from fossil fuel-related sources that means
the demand and supply for LPG could decrease in the
future.

•Changing cargo demands: as industries

decarbonize, we anticipate a growth in cargo thatneeds to be transported in much the same fashion as
liquified gases. Examples of these changing cargoes
are blue and green ammonia as well as CO2. Although
the skillset required to transport CO2 is well within
our organizational capabilities, our current fleet is notsuitable for carrying CO2 and hence would require us to

In response to these climate risks and opportunities,
Navigator developed, as part of its ESG strategy, adetailed climate strategy and identified where ESG
feeds into business planning and investment decisions,such as embedding ESG consideration in the supply
chain. A good example is that in 2022 we reduced theaccounting estimate for vessel lifetime from 30 to 25
years, reflecting the accelerating energy transition
forcing us to renew the fleet sooner to accommodate
different fuels and cargoes.

Supporting A Net Zero Shipping Industry
In line with the Paris Agreement, Navigator is
supportive of the shipping industry’s objective to
reduce emissions to a level consistent with a 1.5 °C
global temperature rise. In 2022, we started work on
developing our decarbonization roadmap, which iscurrently being finalized. Our roadmap will focus onestablishing credible interim targets for the reductionof Navigator’s carbon emissions.
We identified the levers that we can utilize to have an
impact on our carbon footprint.

build new tailored tonnage.

• Technology efficiency levers: efficiency• Growing regulation: the introduction of new

improvements enabled through digital twin modeling,

climate regulation by the International Maritime
Organization, the inclusion of shipping in the European
Union Emission Trading System and the announced
ESG guidelines by the Securities Exchange Commission
is driving us to reduce our operations’ climate impact
through adjusting our approach.

new anti-fouling coatings, and trim optimization will
make a contribution to reducing our carbon emissions.

• Operational efficient levers: solutions such as new
weather routing systems as well as general energy
awareness among onshore staff and seafarers will also
help us reduce our carbon emissions.

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Accelerating Our Climate Change Action – Climate

We believe our people sharing our ambition isWith regards to our direct emissions, the primary

fundamental to the success of our climate action.

source is the use of heavy fuel oil (HFO) in our vessels’

Engaging with our teams not only helps the businessengines. We used about 47% HFO with the rest aachieve its climate objectives but will influence themixture of other fuels, such as light fuel oil, marine

wider shipping industry. That is why we are launchingoils and ethane in 2022. We have one vessel that is

our ESG strategy, including our decarbonization

capable of using alternative fuels such as ethane, androadmap, in 2023.

it represented 2% of our fuel usage in 2022. We saw
a decrease of 4.7% in our total Scope 1 emissions to

Improving Measurement Of
Our Climate Metrics
In order to monitor the progress on our climate
strategy, we regularly measure relevant key
performance indicators across Navigator. This
allows the Company to quantify its carbon footprint,
effectively monitor risks and continually reduce its
climate impact. In 2022, we continued the roll-out

862,693 tons of CO2 in 2022 (2021: 905,123 tonsof CO2). This is the result of the decrease in distancesailed despite higher utilization of larger vessel sizes
and higher average speed - sometimes at request ofclients, sometimes due to the weather. As a result, our
Scope 1 emissions intensity is down 3% in 2022 to
0.27 (2021: 0.28). Our direct emissions include CO2
and no methane (CH4).

of “Project Marorka,” which includes the installation

Moving to our indirect emissions in our operationalof vessel-wide sensors that delivers more than twocontrol, we use electricity drawn from the local griddozen operational data points in real time to support

to power our offices in the United States, United

operational decision making. We also initiated theKingdom, Poland, Denmark and the Philippines as

implementation of a major new technology to measure

well as our ethylene marine transport terminal. Our

our direct and indirect carbon emissions to facilitate

emissions from our offices increased from 54 in 2021

accurate and reliable business decisions aroundto 59 tons of CO2e; our terminal emissions increased

climate impacts.

from 17,324 to 25,224 tons of CO2e in 2022. As aresult, our Scope 2 emissions increased by 45.5% to25,283 tons of CO2e in 2022 (2021: 17,378 tons ofCO2e). This significant increase is explained by 2022
being the first full year of inclusion for the terminal
emissions.

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Accelerating Our Climate Change Action – Climate

In 2022, we focused on increasing the measurement of our indirectemissions outside our operational control (otherwise known as Scope 3).
Previously, we were able to include category 3 (fuel- and energy-related
activities) and category 6 (business travel) in our disclosures. For 2022,
we are able to add category 7 (employee commuting) as well. The carbon
emissions associated with the handling of ethylene through our marine
export terminal amounted to 99,753 tons of CO2e in 2022, up 24.5%(2021: 80,130 tons of CO2e). This increase can be explained by the fullyear of reporting being included for the first time. After a dip during COVID,
the emissions associated with our business travel amounted to 223 tonsof CO2e (2021: 22 tons of CO2e). And this reporting year is the first time weestimated our emissions from employee commuting at 90 tons of CO2e.
This brings our Scope 3 emissions to 100,066 tons of CO2e in 2022, up
24.9% on last year (2021: 80,152 tons of CO2e).

Key Climate Data
2020

2021

2022

Number of vessels

38

55

54

Total distance sailed (nautical
miles)

2,392,782

3,216,134

3,189,134

Total cargo carried (tons)

5,713,352

6,178,290

6,354,501

Scope 1 emissions (tons CO2e)694,525

907,500

862,693

Scope 2 emissions (tons CO2e)-

17,37825,283

Scope 3 emissions (tons CO2e)80,23380,152100,066

We made good
progress on ourdecarbonization
planning in 2022

Alexander Walster
Head Of ESG

Accelerating Our Transformation – ESG Report 2022 | 23

Minimising Our
Environmental Impacts
Environment

No loss of containment
into the environment
Zero penalties imposed for
non-compliance withenvironmental laws
Improved fleet sustainability
score to 0.76
Accelerating Our Transformation – ESG Report 2022 | 24

Minimising Our Environmental Impacts
Environnment

The health of our global environment isunder threat. Whether it’s life on land or
underwater, human and economic activities
put pressure on our ecosystem. Businesses
need to consider their environmental impacts
and what they can do to minimize them. How
is Navigator approaching this?
Whether at our marine transport terminal, in ports, in
our offices or on vessels, we recognize that we havean environmental impact we should be minimizing.
Alongside climate action, our focus is on protecting
land, air and marine ecosystems by focusing on
preventing pollution.

Monitoring Direct-to-air Impacts
During our time on sea and in port we burn fossil fuels
to propel our vessels. Alongside carbon emissions, thisalso releases other components into the air. There arethree main environmental impacts here, of which wecurrently do not measure NOx and particulate matter(PM10). We estimate our SOx emissions, which were
down by 4.7% to 2,266 tons (2021: 2,377).

Developing A Sustainable Water Approach
Water is an essential component of human life, andas a shipping company we depend on the health of
our oceans and waterways. We are in the process ofmeasuring our water consumption, both in our offices
and on our vessels, for the first time. This will help us
to further build out an action plan in this space.
Every vessel takes on “ballast water”. Across our
fleet, we now have 100% of our vessels installedwith ballast water treatment facilities. These systems
use ultraviolet light to prevent microorganisms fromestablishing a reproductive and invasive population inanother environment. Preventing this is important toprotect indigenous marine habitats and maintain theirnatural biodiversity.
We are also rolling out water purification systems onboard our vessels. Together with the Procurement
team, the vessels now save around 200,000 plastic
bottles of water per year, helping us reduce theamount of plastic waste in the ocean.

Preventing Contamination
We transport highly sensitive liquefied gases acrossthe world. A main focus is to prevent this valuable
material from ending up in the water or atmosphere.
In 2022, we had no loss of containment into theenvironment.

Accelerating Our Transformation – ESG Report 2022 | 25

Minimising Our Environmental Impacts – Environnment

Key Environment Metrics
2020

2021

2022

Annual Efficiency Ratio (AER) Mean

14.96

15.65

16.19

Annual Efficiency Ratio (AER) Weighted

13.80

13.90

13.54

Poseidon Principles AER Trajectory Value

18.80

18.30

17.90

Percentage Deviation from Trajectory Value

-27%

-24%

-16%

Fleet Sustainability Score

0.73

0.76

0.76

Energy Efficiency Operational Indicator (EEOI)

-

-

56.73

Optimising Vessel-related Impacts
Since 2020, Navigator is a signatory of the Poseidon
Principles. They provide a framework for integratingclimate considerations into lending decisions to

The collaboration

promote international shipping’s decarbonization.

between procurement

In 2022, we initiated a process with our Legal andand fleet management

Finance teams to explore what this could mean for
Navigator’s facilities. From this framework flow a

saved us 200,000 plastic

number of comparative metrics that indicate thebottles per year

climate performance of vessels and our fleet. The AER
Trajectory Value for 2022 was 17.9 (down by 2.2%
since 2021) and around 16% of our vessels bettered
this Trajectory Value in the reporting year. This results
in a fleet sustainability score of 0.76 which means
that, on the whole, we are exceeding the Poseidon
Principles expectations on the emission inventory of
our fleet. We did not perform as well as in 2021, due
to weather conditions, our average speed and lower
average utilization.
This year we calculated our Energy Efficiency

Jonas Lund Clausen
Head Of Procurement

Operational Indicator (EEOI) for the first time covering
all bar one of our vessels.

Accelerating Our Transformation – ESG Report 2022 | 26

Empowering
People To Thrive
People & Communities

Achieved 34% women in
onshore positions
Committed $100,000 tocorporate philanthropy
Reached 28 female officers
and cadets across the fleet
Accelerating Our Transformation – ESG Report 2022 | 27

Empowering People To Thrive
People & Communities

Every business’s successrelies on its people:
attracting, developing andretaining them is key. How
can Navigator, as a business,invest in the people andcommunities it depends on?

Our goal is to create a supportive environment where people can thrive,
both inside and outside of Navigator. This means that we engage with ourpeople to ensure they have a chance to reach their full potential and that
we support our local communities in tackling their challenges. In 2022,
we strengthened our talent strategy, including the adoption of ambitious
targets and lighthouse initiatives.

Supporting A Growing Business
Navigator grew significantly in 2021 as a result of the merger of the fleet
and business activities of Ultragas ApS with those of Navigator. The HRteam was responsible for managing onshore and offshore workforce
growth of over 50% year-on-year. Due to the very specific technicalrequirements demanded by the handy-sized gas carrier segment, thepotential workforce pools are small and competition for talent is high.
Being able to offer a competitive salary helps, but filling the pipeline withtalent also relies on Navigator’s brand in the market, our company cultureof inclusivity and the opportunity we offer to develop a career.
The average tenure at Navigator is long. Around 45% of our onshore andoffshore colleagues have a tenure of over five years, with around 20% over
10 years. This underlines our approach, which goes beyond a competitive
salary to include value-adding benefits such as continued development
and an inclusive culture. But because of our recent growth, 33% of ourpeople have fewer than two years with Navigator Gas. This makes it
important to focus on good performance management, which was a major
priority in 2022. The aim is to create a continuous performance cycle forboth onshore and offshore colleagues to properly induct new starters.

Our Guiding Principles
Our business is to connect our customers totheir markets worldwide. Everything we do at
Navigator Gas to achieve this, is underpinned by
our ANCHOR values. These values are our guiding
principles, and they help us deliver a safe, reliable
and efficient service to our customers and tomeet our responsibilities towards society and theenvironment we operate in.

A N C

Authentic

NurtureCollaborative

HonestOwnership

Resourceful

H O R

Accelerating Our Transformation – ESG Report 2022 | 28

Empowering People To Thrive – People & Communities

Nurturing A Performance Culture
We regularly engage with our workforce – through the performance
management cycle but also through several communication tools suchas our internal magazine Sextant. A big focus in 2022 was our refreshedtalent agenda to accelerate conversations about career development
across the Company. We focused on continuous learning across ourworkforce by providing training courses. We also worked on increasing
internal mobility by enhancing vessel rotation for seafarers and mappingout new pathways for onshore colleagues in a significantly larger Company.
At the heart of our talent agenda is a performance culture. In 2022, webrought in uniform and comprehensive processes around performance
management. Our main aim is to ensure that performance plans becomealigned to the individual, not just the role – and can be transferred anddeveloped from role to role, vessel to vessel. This is the start of building
one common platform for the entire business for all people matters.

Driving Diversity & Inclusion
There are significant differences in the diversity of our workforce inside
our Company. For instance, the proportion of female colleagues among
our onshore teams was 34% in 2022 (2021: 34%). Among our offshore
workforce this was 3.2% (2021: 4%). But looking at the ethnic diversity
among our teams, our offshore (officer) workforce identifies 97% as nonwhite (2021: 97%). Comparatively, our onshore teams have much lower
ethnic diversity. We are proud that we had 28 female officer and cadet
seafarers in 2022 and are doing what we can to support them and growthis segment.
In 2022, we set ourselves the target to achieve 35% female
representation in onshore senior management and 30% in our Boardof Directors by the end of 2027 (2022: 12% and 14% respectively). To
achieve this, we recognize that we must build up our pipeline of talent, so
we are also aiming to ensure that 45% of the onshore roles we hire for are
filled by women (2022: 34%).

Accelerating Our Transformation – ESG Report 2022 | 29

Empowering People To Thrive – People & Communities

Responding To The War In Ukraine
The war also had a lasting impact on our onshore and offshore colleagues.
At the start of the invasion, we employed about 120 Russian and Ukrainian
seafarers, often serving together on our vessels. We have only experienced
solidarity among our seafarers and we have not experienced any
operational issues.
In 2022 we provided assistance to some of our seafarers impacted by thewar. For instance, we helped one of our chief engineers safely repatriate
his family from Mariupol, which was largely destroyed by a Russian
offensive. We found them accommodation and employment in Poland torebuild their lives.

Navigator really came
together to support
our Ukrainian
seafarers in 2022

Supporting Local Communities
In 2022, we put in place community activities in most of our officelocations. We allocated a $100,000 budget for this for the next few years,of which $25,000 was spent last year. Our main focus of the year was
responding to the humanitarian crisis as a consequence of the war in
Ukraine. Our office in Gdynia supported the conversion of a local summer
camp into a residence of young Ukrainian refugees. Our Polish colleagues
helped adapt the summer camp for long-term habitation by providing
custom-made furniture and equipping it with a water purification system.
They and their families also volunteered their time on Kids Day.
In 2022, we also supported international organizations that look after
the seafaring community. For instance, we are proud supporters of theInternational Seafarers’ Welfare and Assistance Network which provides
a 24-hour helpline as well as projects and campaigns to support the

Katarzyrna Swierk
Office Manager Gdynia

wellbeing of seafarers around the world. We also support the Mission to
Seafarers, which provides practical facilities such as Seafarer Centerswhich offer pastoral care, and the British Red Cross, to help people whoare victims of modern slavery and human trafficking.

Accelerating Our Transformation – ESG Report 2022 | 30

Creating A Safe And
Secure Workspace
Heath & Safety

Completed Safety Maturity
Assessment
Achieved zero COVID outbreaks
on our vessels
Maintained zero security incidents
on our vessels
Accelerating Our Transformation – ESG Report 2022 | 31

Creating A Safe And Secure Workplace
Health & Safety

The success of every
business relies on its ability
to keep everyone it interacts
with safe: it attracts talent,builds trust with our clients,
and reduces compliancecosts. How does Navigatorcreate a safe and secureenvironment?

Ensuring that our colleagues, contractors and visitors to our sites
and vessels, as well as local communities, remain safe is Navigator’soperational top priority. Our objective is to achieve zero accidents andinjuries throughout our operations through creating a physically andmentally safe workplace.

Building A Strong Compliance Environment
Navigator’s Safety Management System (SMS) sits at the heart of our safe
and secure workplace. Building on requirements in SOLAS, MARPOL, MLC
Labor and ISPS, this integrated management system sets out Navigator’s
policies, procedures and plans that embed safety at every stage of ourdecision making in our 54 vessels and our offices. In 2022, the SMS was
re-accredited under ISO9001 for our offices and ISO14001 and ISO45001
for our vessels.
In 2022, there were zero fatalities or major accidents across our fleetof 54 vessels (2021: zero). We recorded four incidents that resulted inlost time (2021: four), but they were minor, such as slips. Our recordable
cases totaled 15, of which 11 did not result in lost time. In terms of marine
casualties, there was a single grounding of one of our vessels off the coastof Nigeria, despite being piloted. This was a temporary occurrence and did
not lead to damage to the vessel. In 2022, we were not issued any fines or
enforcement notices under health and safety legislation.

Health And Safety Metrics
2022

Fleet managed
from Denmark

Fleet managed
from Poland

Third party
managed fleet

LTI

3

0

1

LTIF

1.11

0

0.34

TRC

9

4

2

TRCF

3.32

1.30

0.69

Hours worked

2,709,552

3,079,680

2,950,739

Accelerating Our Transformation – ESG Report 2022 | 32

Creating A Safe And Secure Workplace – Health & Safety

Creating A Safety-first Culture

Formulating Lessons Learnt

Navigator commissioned a Safety Maturity Assessment

Inevitably, accidents and incidents happen: the mostin 2022 to identify where it could improve its

valuable thing we can do is to formulate lessons

compliance environment. The recommendations fromlearnt. To facilitate this, we follow the ‘5 Is’: insight,

this report helped us to strengthen our approach tointegration, intervention, influence and innovation.

safety behavior and culture. We launched the ‘We

Using safety data from near misses as well as

Care’ program to develop a safety-first culture. We

incidents, we look for ways to work together to prevent

Care consists of on- and offshore training on our SMS

this happening again.

as well as vessel- and client-specific requirements. For
instance, we run a three-day Safety Leadership Course
for officers and a Safety Mindset Course for ratings andcadets on every vessel. In 2022, we recorded 8,187
and 901 hours of health & safety training respectively
off- and on-shore.
To amplify our message of ‘safety first’ we run regularAs part of our safety team, we have several ISOaccredited auditors who visit every vessel and office
on a rotating schedule to monitor the effectiveness of
the SMS across Navigator. This internal audit program
helps us identify weak points quickly to avoid any
escalating impacts. Their findings feed into the Safety
Plan and steer training provision for each vessel.

Safety Days to refresh people’s awareness of ourpolicies and procedures. In 2022, we introduced aregular safety culture behavior survey to assess what
areas of improvement remain on each vessel andfor each seafarer. Every vessel has monthly Safety
Committee meetings, where a vessel-specific Safety
Plan is discussed, building on the findings from thesurveys. In addition, we ask officers to nominate a
Safety Star every quarter to celebrate those that really
embody our safety-first culture.

Keeping Our Seafarers Healthy
In light of the global COVID-19 pandemic, we had a
specific focus on keeping our seafarers healthy andsafe in 2022. This was a complex undertaking, as we
had to balance the company demands with country oforigin and country of destination travel requirements
as well as specific port authority’s approaches
to quarantine. Navigator exceeded most healthrequirements by still quarantining all seafarers ahead

As a result, we were not served any deficiencies orof entering their vessel. During 2022, we graduallydetentions by regional Port State Control organizations

reduced the number of quarantine days and ensured

in relation to non-compliance with international andthat our seafarers did not experience any negative

local regulation.

consequence of a positive test. As a result we had no
positive COVID seafarers in 2022.

Accelerating Our Transformation – ESG Report 2022 | 33

Creating A Safe And Secure Workplace – Health & Safety

Securing Our Vessels
Especially with our short- and medium-distancehandy-sized vessels, we make frequent stops at
smaller ports. This exposes us to higher risk comparedto (container) vessels making routine, scheduledjourneys between major ports. That is why security is
an important element of our approach to a safe andsecure workplace. Our Safety team determines, basedon their risk assessment, whether additional security
arrangements need to be made for vessels charting
specific routes. We also regularly practice emergency
scenarios.
In 2022, we did not have any security incidents
involving our people and material. The high risk ofpiracy around the Horn of Africa decreased in 2022,
meaning that additional security services, suchas armed guards, were slowly reduced during theI’m proud of thereporting year. Additional security measures remain inprogress we made thisplace for high-profile crossings such as the Suez Canal

year on embedding aand the Red Sea. In 2022, Navigator commenced
calling at ports around the Gulf of Guinea, and for thissafety-first culturearea, specifically Nigerian ports and waterways, weare requiring armed guards to accompany our vessels,
owing to escalating security risks in these areas.

Kaj Pilemand
Head Of Vessel Operations

Accelerating Our Transformation – ESG Report 2022 | 34

Promoting Integrity
With Our People And
Suppliers
Governance & Supply Chain

Set up Board ESG committee andappointed first Head of ESG
Became member of Maritime
Anti-Corruption Network
Launched strengthened
whistleblowing policy

Accelerating Our Transformation – ESG Report 2022 | 35

Promoting Integrity With Our People And Suppliers
Governance & Supply Chain

At the heart of our continued
success sits the ability to bea trusted partner for all our
stakeholders. This trust isbased on good governance,
which underpins our
purpose, allows us to meetstakeholder expectations anddrives our corporate and ESG
strategy. How do we embed
the right behaviors across
our Company?

Navigator’s objective is to operate to a high standard of corporate
governance. While we, as a foreign private issuer, are not subject to severalof New York Stock Exchange’s corporate governance standards, we comply
voluntarily where possible. We also meet requirements flowing frominternational and national legislation as well as industry best practice. We
recognize that compliance can only be achieved through ethical behavior
in line with our values and culture.

Ensuring A Strategic Focus
On December 31, 2022, our Board consisted of seven Directors, of whomfour were independent and non-executive. The average age of the Board
was 58 years and, with the election of Dr. Anita Odedra in March 2022,
the female representation of the Board became 14%. The average
tenure of the Board was six years. The Board has an Audit Committee, aNomination Committee, a Compensation Committee and set up an ESG
Committee in 2022.
This Committee helps the Board maintain a strategic focus on ESG, butthat does not mean ESG-related issues are not covered elsewhere. Aspart of its oversight of risk management, the Audit Committee, formed
exclusively of independent Directors, regularly touches on risks related
to ESG. The Compensation Committee ensures the alignment between
our ESG performance and executive performance management andremuneration.

Managing Risk Effectively
Strong governance must be supported by Company-wide management
systems to help us assess and control risks. The Board has overall
accountability for ensuring that risk is effectively mitigated through theCompany’s risk management process. Risks are reviewed on an ongoingbasis across our operations on a functional and ship-to-ship basis. These
are disclosed, in an aggregated form, in our Annual 20-F Report. As partof this, we recognize that climate change poses a material risk to
Navigator. These risks are detailed in the Climate and Environment
sections of this Report.

Accelerating Our Transformation – ESG Report 2022 | 36

Promoting Integrity With Our People And Suppliers – Governance & Supply Chain

Promoting Ethical Behavior

Preventing Bribery And Corruption

At the core of our risk management approach sits our

In 2022, the Compliance team rolled out a

Code of Conduct. Navigator’s Legal team is the steward

strengthened compliance strategy to promote ethicalof this document, which expects the following behavior

behavior by our people and partners. The focus for thefrom our colleagues:

reporting year was on preventing bribery, corruption,

•
•
•
•

Respecting international, national and local laws

fraud and conflicts of interest with an emphasis on

Navigator launched a new register for gifts and•••Preventing modern slavery including forced,
compulsory and child labor
Protecting human and labor rights

conflicts of interest found. With a low threshold ofPreventing bribery and corruption
Preventing conflicts of interest

Protecting the environment and local communities
Protecting data privacy and cyber security

With our Code of Conduct as the basis of ethicalbehavior, all our onshore and offshore colleagues
are required annually to read and accept it. The
Compliance team improved the whistleblowing

training and transparency. We provided refresher
training in each of our offices in 2022.

hospitality received, facilitation payments made and$75, the main aim is to use transparency to create
a conversation about long-established practices
of facilitation payments in the industry. We arecommitted to eliminating these payments as longas we can guarantee the safety of our people. To
underscore our commitment, we became a member ofprovisions at Navigator, launching a safe, secure

the Maritime Anti-Corruption Network in 2022.

channel to share concerns in around 300 languages.

As a result of the Russian invasion of Ukraine,

In 2022, there were zero notifications of potential
breaches of our Code of Conduct.

the global shipping routes and product logistics
flows changed significantly. As a result, Navigatorincreasingly called at ports in countries that are listed
in the bottom 20 of Transparency International’s
Corruption Perception Index. In total, our vessels
called in these ports eight times in the reporting year.
We did not record any material non-compliance with
our policies in the reporting year, and we did not incur
any monetary losses related to proceedings aroundbribery and corruption.

Accelerating Our Transformation – ESG Report 2022 | 37

Promoting Integrity With Our People And Suppliers – Governance & Supply Chain

Managing Sanctions Transparently
The Russian invasion of Ukraine in early 2022 had
an immediate impact on Navigator. At the start of
the war, we had four vessels chartered to a Russiancounterparty. While this counterparty was neversanctioned – and indeed the product LPG was neversanctioned either – our Compliance team completed
an in-depth review to assess our exposure. After that,
the Know Your Customer process was increased toevery three months (as opposed to the usual 12-18
months) to keep on top of any developments.
The charter arrangements around two of the fourmachinery parts for on board the vessels; and logistics
such as business travel and last-mile services such as
barges. The only product excluded from procurement
is the fuel for our vessels.
In 2022, the Procurement team focused on businesscritical and large contracts for Navigator but left
the buying to individual offices and vessels. They
incorporate some ESG-related provisions where
possible and establish the standards we’d like our
suppliers to meet. Beyond that, the focus is on
appropriate certifications, reliability, availability andcost as our primary criteria for suppliers.

vessels expired in July 2022, and, in light of theongoing war, Navigator elected not to renew themand redeployed the vessels elsewhere. The remaining
two vessels will be released from their charter
arrangements at the end of 2023 and the same shallnot be renewed. After the invasion, Navigator stopped
serving Russian ports (except under contractual
obligation with the vessels discussed above) andtaking on Russian clients. As a result of the work of
our Compliance team, we were not subject to any
enforcements or fines relating to the sanctions of
Russian companies and products in 2022.

We really stepped up on
compliance in 2022 at
Navigator, navigating
the rapidly changing
situation around thewar in the Ukraine

Strenthening Our Supply Chain
As a global business, Navigator depends on a seamless
supply chain to support its operations. With around
300 suppliers on a yearly basis, we have a significant
impact through our supply chain. As the largest handysized gas carrier company, the Procurement team has
focused on using our scale to build partnerships withtrusted and preferred suppliers. Some of our largest
annual suppliers provide the paint for our vessels;
provisions for seafarers offshore, oil, gases andNelia Ponte
Compliance Manager

Accelerating Our Transformation – ESG Report 2022 | 38

Looking Ahead

Climate• Strengthen risk and scenario 			planning for TCFD

• Further develop decarbonization plan

Environment• Begin measurement of NOx
and PM10• Start measurement of waste

People & Communities• Enhance performance management 		
with career discussions• Launch engagement surveys andinterviews• Bring crew management in-house

Health & Safety• Roll out training on ‘We Care’ 			
programGovernance & Supply Chain• Revise Code of Conduct• Ramp up compliance checks andwhistleblowing training• Put business ethics clauses incontracts• Embed ESG in contracts• Improve ESG data in supply chain

Accelerating Our Transformation – ESG Report 2022 | 39

Summarizing Our Performance
Our ESG Metrics Overview

Key ESG Metrics
Category

KPI

2020

2021

2022

Business

Revenue$332,495,000$406,481,000$473,792,000

Adjusted EBITDA$119,086,000$160,263,000$212,676,000

Number of owned vessels

38

55

54

Total distance sailed

2,392,782 nm

3,216,134 nm

3,189,134 nm

Total scope 1 emissions

692,797 tons CO2e

905,123 tons CO2e

862,693 tons CO2e

Total scope 2 emissions-

31,224 tons CO2e45,375 tons CO2e

Total scope 3 emissions

80,233 tons CO2e80,151 tons CO2e100,066 tons CO2e

Annual Efficiency Ratio (AER) Mean

14.96 g CO2/DWT-nm

15.65 g CO2/DWT-nm

16.19 g CO2/DWT-nm

Fleet Sustainability Score

0.73

0.76

0.76

Spills-00Fleet implementing ballast water
treatment

-

100%

100%

Total number of FTE employees

-

-

778

Number of FTE onshore employees

77

72

151

Number of FTE offshore employees(officers)

-

-

627

Number of male onshore employees

-

-

99

Number of female onshore employees

-

-

52

Number of male offshore employees(officers)

-

-

599

Number of female offshore employees(officers and cadets)

-

-

28

Total recordable incidents

-

-

15

Hours of HSE training

-

-

8,187

Lost time incidents

-

-

4

Number of cases from whistleblower
program--0

Employees & contractors trained incompliance and anti-corruption

-

-

100%

Climate &Environment

People &Communities

Health & Safety

EthicsIn the above performance table we bring together

The table does not include every KPI mentioned in the

all our key performance indicators (KPI) so thatESG Report, only those that are indicative of our overall

stakeholders can assess our performance at a glance

performance.

and in the context of previous years (where possible).

Accelerating Our Transformation – ESG Report 2022 | 40

Our Approach To Disclosure
About This Report

This is our third report on
ESG issues: the first two,called ‘CSR Update’, were
published in 2020 and 2021;
to reflect the launch of our
new strategy and targets,
this report is renamedan ‘ESG Report’ to meetthe expectations of our
stakeholders. This report isto be read in conjunction with
our Annual (20-F) Report,
dated April 4, 2023, to givea more complete pictureof our ESG impacts. It wasapproved for publication
by Navigator’s Board of
Directors.

What Information We Included
This Report reflects our ESG performance in the year from January 1 to
December 31, 2022. The Report also includes references to activities
deployed in the first months of 2023, but no data from that year isincluded in this Report. The reporting year is also our baseline year.
We include information from all our businesses, sites and operations
where we have operational and financial control, including our joint
ventures. A full list can be found in our most recent Annual (20-F) Report.
As there have been no acquisitions or divestments in the year, there is no
missing information and data to account for. When we acquire or divest aCompany that will change our baseline materially (i.e. more than 5%), we
will restate our performance data.
This Sustainability Report is not externally assured but has been reviewed
by our Legal team and our SEC counsel. Our approach is to assess on anannual basis whether the data and statements need to be audited andassured.

Accelerating Our Transformation – ESG Report 2022 | 41

Our Approach To Disclosure – About This Report

How We Calculated Our Data

How We Produced This Report

In 2022, we introduced a digital platform for theThis Report was guided by the Sustainability

measurement, calculation and reporting of our climate

Accounting Standards Board (SASB) Standard forand environment impacts.

the ‘maritime shipping’ industry. All the activity andEmissions
Our carbon inventory covers all our onshore andoffshore operations. Our GHG emissions inventory

accounting metrics (where possible) are integrated
into the Report, with an SASB Report included as anappendix.

includes a single greenhouse gas, CO2. The other five

This Report was also guided by the recommendations

greenhouse gases, particularly CH4, are not measured.

from the Taskforce for Climate-Related Financial

We followed the World Resource Institute Greenhouse

Disclosures. All the guidelines around climate

Gas Reporting Protocol. GHG emissions are calculated

disclosures (where possible) are integrated into theusing Global Warming Potentials (GWP) from theReport, and a table is provided in the appendix for a

Intergovernmental Panel on Climate Change. We

quick overview.

adopted the operational and financial control approachto consolidate our inventory.

This Report was written by an external advisor.

Air pollution
We also measured our other emissions to air, such as
SOx, for all our onshore and offshore operations. For
this we used the International Maritime Organization
Greenhouse Gas Study 2020 (table 53). Other sources,
such as volatile organic compounds (VOCs), particulatematter (PM10) and NOx, were not measured.
PeopleThe measurement of our workforce is in Full Time
Equivalent (FTE). We currently only gather diversity
data for officers offshore. As a result, several hundred
ratings and cadets are excluded.
Currency
Unless otherwise stated, all financial amounts arepresented in United States dollars.

Accelerating Our Transformation – ESG Report 2022 | 42

Sustainability AccountingStandards Board Report
The SASB develops, issues
and maintains the industryspecific standards that assist
companies in disclosing
financially material,
decision-usefulsustainability. Thesestandards were developed
under the auspices of the
SASB Foundation, a
not-for-profit, independent
standards-settingorganization.

As of August 2022, the International Sustainability Standards Board(ISSB) of the IFRS Foundation assumed responsibility for the SASB
Standards. The ISSB has committed to build on the SASB Standards andleverage SASB’s industry-based approach to standards development as
it develops the IFRS Sustainability Disclosure Standards that will replace
SASB Standards.
This 2022 SASB Report is our first disclosure pursuant to the SASB
standards, and as such, our disclosures on these topics will evolve andmature with time. In line with guidance, Navigator will support and use the
SASB Standards until the IFRS Sustainability Disclosure Standards comeinto force.
SASB Standards differ depending on the industry. This report references
SASB’s sustainability accounting standard for the ‘marine transportation’industry. The data covers the period of January 1, to December 31, 2022
and is as of December 31, 2022 unless otherwise noted. It includes all of
Navigator’s wholly owned entities.
Where noted, in accordance with SASB Standards Application Guidance
section 2.2, certain information is not included in this appendix, tothe extent the information is not considered material; is privileged orconfidential; or is not currently collected in a manner wholly correlativewith the related SASB metric. Where possible we have shared alternative
information that we believe may be insightful.

Accelerating Our Transformation – ESG Report 2022 | 43

Sustainability Accounting Standards Board Report

SASB Code

Metric2022 Response

TR-MT-000.A

Number of shipboard employees

627 (officers only)

TR-MT-000.B

Total distance travelled by vessels

3,189,134 nm

TR-MT-000.C

Operating days

15,486.85

TR-MT-000.D

Deadweight tonnage

1,075 thousand deadweight tons

TR-MT-000.E

Number of vessels in total shipping fleet

54 owned shipsvessels

TR-MT-000.F

Number of vessel port calls

1,402

TR-MT-000.G

Twenty-foot equivalent unit (TEU) capacity

Not applicable as Navigator does not own any
container-sized vessels

TR-MT-110a.1

Gross global Scope 1 emissions

862,693 metric tons of CO2e

TR-MT-110a.2

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

Please refer to pages 20-23 – the Climate section

TR-MT-110a.3(1) Total energy consumed(2) Percentage heavy fuel oil(3) Percentage renewable(1) 129,268,330 kWh(2) 47%(3) 0%

TR-MT-110a.4

Average Energy Efficient Design Index (EEDI) for new vessels

We do not calculate this metric in a mannercorrelative with the SASB standards

TR-MT-120a.1

Air emissions for the following pollutants:(1) NOx (excluding N2O)(2) SOx(3) Particulate matter (PM10)(1) - We do not currently measure NOx emissions(2) 2,447 metric tons
(3) -TR-MT-160a.1

Shipping duration in marine protected or areas of protectedconservation status

We do not calculate this metric in a mannercorrelative with the SASB standards

TR-MT-160a.2

Percentage of fleet implementing ballast water(1) exchange and (2) treatment(1) 0%(2) 100%

TR-MT-160a.3(1) Number and(2) Aggregate volume of spills and releases into the environment

(1) 0
(2) 0

TR-MT-320a.1

Lost time incident rate (LTIR)

We do not calculate this metric in a mannercorrelative to the SASB guidelines as a result of ourongoing integration of the businesses.
We can disclose the rate for each of our fleets:• Denmark: 1.11
• Poland: 0• Northern Maritime (3rd party managed fleet): 0.69

TR-MT-510a.1

Number of calls at ports in countries with the 20 lowest rankingsin Transparency International’s Corruption Perception Index

8

TR-MT-510a.2

Total amount of monetary losses as a result of legal proceedings
associated with bribery or corruption$0

TR-MT-540a.1

Number of marine casualties, percentage classified as very serious (1) 1(2) 0%

TR-MT-540a.2

Number of Conditions of Class or Recommendations

We do not calculate this metric in a mannercorrelative with the SASB standards

TR-MT-540a.3

Number of port state control(1) deficiencies and (2) detentions(1) 91(2) 2

Accelerating Our Transformation – ESG Report 2022 | 44

Taskforce For Climate-related
Financial Disclosures Table
The Taskforce for Climate-Related
Financial Disclosures (TCFD)

TCFD Table
Governance

Location

Describe the Board’s oversight ofclimate-related risks and opportunities.

This is detailed in the first part of the
Climate section. Additional information is
included in the Governance section.

Describe the management’s role inassessing and managing climate-relatedrisks and opportunities.

This is detailed in the first part of the Climate
section. Additional information is included in
the Governance section.

in appropriately assessing andStrategy Location

Locationpricing climate-change-related

Describe the climate-related risks andopportunities the organisation has identified
over the short, medium and long term.

This is detailed in the second part of the
Climate section.
Additional information can be found in the
Annual (20-F) Report.

Describe the impact of climate-related risks
and opportunities on the organisation’s
business, strategy and financial planning.

This is detailed in the second part of the
Climate section.

Describe the resilience of the organisation’s
strategy, taking into consideration different
climate-related scenarios including a 2C orlower scenario.

This is not yet assessed by the Company.

Risk Management Location

Location

Describe the organisation’s processes
for identifying and assessing
climate-related risks.

This is detailed in the third part of the
Climate section. Additional information is
included in the Governance section.

Describe the organisation’s processes for
managing climate-related risks.

This is detailed in the third part of the
Climate section. Additional information is
included in the Governance section.

Describe how processes for identifying,assessing and managing climate-related risks
are integrated into the organisation’s overallrisk management.

This is detailed in the third part of the
Climate section. Additional information is
included in the Governance section.

Metrics and Targets Location

Location

Disclose the metrics used by the organisation
to assess climate-related risks andopportunities in line with its strategy and risk
management approach.

This is detailed in the fourth part of the
Climate section.

Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 greenhouse gas (GHG)
emissions and the related risks.

This is detailed in the fourth part of the
Climate section.

Describe the targets used by the organisation
to manage climate-related risks andopportunities and performance against
targets.

These are not yet set by the Company. Its
commitments can be found in the fourth partof the Climate section.

was created by the Financial
Stability Board to develop
recommendations on the types of
information that companies should
disclose to support investors,
lenders and insurance underwriters

risks. This 2022 TCFD Table links to
our first disclosure pursuant to therecommendations of the Taskforce,and as such, our disclosures onthese topics will evolve and mature
with time.
In preparing our TCFD Table,
and in order to ensure that weare following best practice, ourwork has been informed by the
October 2021 guidance on climate
reporting provided by the London
Stock Exchange as well as by thelatest observations from the TCFD
itself as set out in its 2021 Status
Report.
All data covers the period ofJanuary 1 to December 31, 2022
and is as of December 31, 2022
unless otherwise noted. It includes
all of Navigator’s entities.

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Advisories

The Company has taken care to ensure
the information in this document isaccurate. However, the data presented
includes targeted goals, approximations
and estimates, which will differ from
actual results, and is for informational
purposes only. The Company disclaims
any liability whatsoever for errors oromissions. Furthermore, some informationin this document may have been disclosed
previously in the Company’s other public
disclosure, and such disclosure is notintended in any way to be qualified,amended, modified or supplemented byinformation herein. This document does notprovide investment advice, and readers are
responsible for making their own financial
and investment decisions.
There is no single standard system thatapplies across companies for compiling andcalculating the quantity of GHG emissions
and other sustainability metrics attributable
to the Company’s operations. Accordingly,
such information may not be comparablewith similar information reported by othercompanies. The Company’s GHG emissions
are derived from various internal reporting
systems that are generally different
from those applicable to the financial
information presented in its consolidated
financial statements and are, in particular,
subject to less sophisticated internal
documentation as well as preparation andreview requirements, including the generalinternal control environment. The Company
may change its policies for calculating these
GHG emissions in the future without priornotice.
Certain information provided in this ESG
Report may constitute forward-looking
statements and information (collectively,“forward-looking statements”) within themeaning of applicable securities laws. All
statements and information, other thanstatements of historical fact, made by theCompany that address activities, events ordevelopments that the Company expects
or anticipates will or may occur in the
future are forward-looking statements.
Such forward-looking statements include,
without limitation, forecasts, estimates,
expectations, ambitions, targets, plansand objectives for future operations andinitiatives that are subject to assumptions,risks and uncertainties, many of which arebeyond the control of the Company.
Forward-looking statements are statementsthat are not historical facts and are
generally, but not always, identified by thewords “expects”, “plans”, “anticipates”,“continues”, “believes”, “intends”,“estimates”, “projects”, “potential”,“objective”, “ongoing”, and similar
expressions, or are events or conditions that“will”, “would”, “may”, “could” or “should”
occur or be achieved.
Forward-looking statements andinformation involve significant risks,
assumptions, uncertainties and otherfactors, which are outside of the Company’scontrol, that may cause actual future results
or anticipated events to differ materiallyfrom those expressed or implied in any
forward-looking statements or information
and, accordingly, should not be read as
guarantees of future performance or results.
Such statements represent the Company’s
internal projections, estimates or beliefs
concerning, among other things:• future operating or financial results;• pending acquisitions, business strategy
and expected capital spending;• operating expenses, availability of crew,
number of off-hire days, dry-docking 		requirements and insurance costs;• fluctuations in currencies and interest
rates;• general market conditions and shipping
market trends, including charter rates andfactors affecting supply and demand;• our ability to continue to comply with all
our debt covenants;• our financial condition and liquidity,
including our ability to refinance ourindebtedness as it matures or obtain
additional financing in the future to fundcapital expenditures, acquisitions andother corporate activities;• estimated future capital expendituresneeded to preserve our capital base;• our expectations about the availability ofvessels to purchase, or the useful lives ofour vessels;• our continued ability to enter into longterm, fixed-rate time charters with ourcustomers;• our vessels engaging in ship-to-shiptransfers of LPG or petrochemical cargoes
which may ultimately be discharged insanctioned areas or to sanctioned
individuals without our knowledge;• the impact of the Russian invasion of 		Ukraine;• changes in governmental rules andregulations or actions taken by regulatory
authorities;• global epidemics or other health crises
such as the outbreak of COVID-19,
including its impact on our business;• potential liability from future litigation;• our expectations relating to the payment
of dividends;• our ability to maintain appropriate
internal control over financial reportingand our disclosure controls andprocedures;• our expectations regarding the financial
success of the ethylene export marine
terminal at Morgan’s Point, Texas, andour related 50/50 joint venture and our
expectations regarding the completion of
construction and financing, and thefinancial success, of the capital project toexpand the Ethylene Export Terminal;• our expectations regarding the financial
success of our Luna Pool collaborative
arrangement (as defined below) and our
Navigator Greater Bay Joint Venture;• our expectations regarding the
integration, profitability and success ofthe vessels and businesses acquired in
the Ultragas Transaction (as defined
below) and the operational and financial
benefits from the combined businesses
and fleet; and• any other factors.

Accelerating Our Transformation – ESG Report 2022 | 46

Advisories

More particularly and without limitation,
this report contains forward-looking
information and statements about
strategy, plans and focus; the Company’s
targeted emission reductions; proposed
GHG regulations; the Company’s plans toimprove operating efficiencies and reduceoverall emissions; plans to improve overall
safety performance; ability for the Company
to evaluate and adapt to new opportunities
relating to climate change; the benefits to
be derived from the Company’s anticipatedgrowth; the Company’s ability to continue
to be a health and safety leader in theindustry; and other statements related to
the Company’s ESG performance.
Although the Company believes that the
expectations reflected in the forwardlooking statements are reasonable, itcannot guarantee future results, levelsof activity, performance or achievement
since such expectations are inherently
subject to significant business, economic,
operational, competitive, political andsocial uncertainties and contingencies.
Many factors could cause the Company’s
actual results to differ materially from thoseexpressed or implied in any forward-looking
statements made by, or on behalf of, The
Company.

Forward-looking statements and otherinformation concerning the shipping
industry in which the Company operates
and the Company’s general expectations
concerning this industry are based on
estimates prepared by Management using
data from publicly available industry
sources as well as from resource reports,
market research and industry analysis,
and on assumptions based on data andknowledge of this industry which theCompany believes to be reasonable.
However, this data is inherently imprecise,although generally indicative of relative
market positions, market shares andperformance characteristics. While theCompany is not aware of any material
misstatements regarding any industry data
presented, the shipping industry involves
numerous risks and uncertainties and issubject to change based on various factors.
Management has included the abovesummary of assumptions and risks related
to forward-looking statements and otherinformation provided in this ESG Report inorder to provide shareholders and investors
with a more complete perspective on the
Company’s current and future operations
and ESG initiatives, and such information
may not be appropriate for other purposes.

Furthermore, any forward-looking
statement or information speaks only asof the date on which such statement ismade, and the Company undertakes noobligation or intent to update any forwardlooking statements or information to reflect
information, events, results, circumstancesor otherwise after the date on whichsuch statement is made or to reflect theoccurrence of unanticipated events, except
as required by law, including securities
laws.
All forward-looking statements andinformation contained in this ESG Report
are qualified by such cautionary statements.
New factors emerge from time to time,and it is not possible for Management topredict all such factors and to assess inadvance the impact of each such factor on
the Company’s business or the extent towhich any factor, or combination of factors,
may cause actual results to differ materiallyfrom those contained in any forward-looking
statements.

Readers are cautioned that the foregoinglists of factors are not exhaustive. Actual
results, performance or achievement could
differ materially from that expressed in or
implied by any forward-looking statements
or information in this ESG Report, andaccordingly, investors should not place
undue reliance on any such forward-looking
statements or information.

Accelerating Our Transformation – ESG Report 2022 | 47

Accelerating Our Transformation
ESG Report 2022

		LondonThe Verde
10 Bressenden Place
LondonSW1E 5DH
United Kingdom
Copenhagen
Smakkedalen 42820 Gentofte
DenmarkGdyniaMAG Centrum B Building
ul. Wendy 15, 81-341
GdyniaPolandHouston
333 Clay Street
Suite 2400
Houston, Texas 77002
United States of America
Manila3F Naess House
2215 Leon Guinto St.
Malate, Manila 1004
Philippineswww.navigatorgas.com
esg@navigatorgas.com
www.linkedin.com/company/navigator-gas/

Accelerating Our Transformation – ESG Report 2022 | 48