Teekay Corporation|

Teekay Tankers Ltd.

2023 ReportTEEKAY GROUP | Sustainability Report 2023
About This Report

Contact Us

This is the 14th annual sustainability report for the TeekayGroup and covers global operations for the 2023 calendar
year. This report focuses on the environmental, social, andgovernance (ESG) issues that may significantly affect ourbusiness performance and that matter most to our key
stakeholders.

We appreciate your comments, feedback or questions
on this report and our performance. Please contact us atmedia@teekay.com

Data and results are provided separately for Teekay Tankers
Ltd. (Teekay Tankers), along with aggregated group-wide
results. Our past sustainability reports are available atwww.teekay.com/about-us/sustainability
This report has been prepared using the Global Reporting
Initiative (GRI) Guidelines and the Sustainability AccountingStandards Board (SASB) Standards as guidance. Teekay
is committed to the United Nations Global Compact Ten
Principles and this report serves as our Communication
on Progress.
In this report, the terms sustainability and ESG are usedinterchangeably.

Reporting Boundary
Unless otherwise noted, this report includes data fromvessels and assets that are operated under Teekay’s Health,
Safety, Security, Environment and Quality Assurance(HSSE & QA) management system. Data is excluded fromvessels and assets that are technically managed by anothercompany, such as certain Teekay Tankers vessels managed
by third parties. Data also excludes time chartered-in
vessels. Data from vessels managed by Teekay Australia is
included.
Teekay closely oversees the operations of our vessels
managed by third party companies to ensure performancemeets our policies and requirements. Unless otherwise
noted, all reported data is for the calendar year 2023, oras of December 31, 2023.

Read more stories about how Teekay brings energy to theworld at www.teekay.com

CONTENTS
About Teekay

Facts and History.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 6CEO Letter .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8

Strategy

Our ESG Journey .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  11
Materiality and Stakeholder Engagement.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  12
Integrity at Teekay .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13

Engage With Us

Governance.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  14
Teekay’s Commitment to the UNGC Ten Principles .  .  .  .  .  .  .  .  .  .  .  .  .  14

www.linkedin.com/company/teekay/www.facebook.com/TeekayCorp/

Teekay Tankers

twitter.com/TeekayCorp

CEO Letter .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  16
People and Diversity .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 17
Safety and Security.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  19

www.instagram.com/teekaycorp

Environment.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 21

Teekay Australia

People and Diversity .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 27
Health, Safety, and Security.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  28

Group-Wide Initiatives

People and Diversity .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 30
Promoting Responsible Ship Recycling.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  32
Cyber Security @ Teekay.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  33
Supporting Our Local Communities .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 34
Summary of Targets and Progress.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 35
ESG Performance Data – Teekay Group-Wide Consolidated.  .  .  .  .  .  .  .  .  . 38

Appendix

SASB Reference Table .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 40
GRI Content Index .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  41
Report Definitions and Notes .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 43

2

3

ABOUT
TEEKAY

Established in 1973, Teekay is a leading
provider of international crude oil and othermarine transportation services. Teekay
Corporation (NYSE:TK) provides these
services directly and through its controlling
ownership interest in Teekay Tankers Ltd.
(NYSE:TNK).

tankers), and has eight time chartered-in tankers. Teekay
Tankers’ vessels are typically employed through a mix ofspot tanker market trading and short- or medium-term
fixed-rate time charter contracts. Teekay Tankers also owns
a Very Large Crude Carrier (VLCC) through a 50 percentowned joint venture. In addition, Teekay Tankers owns aship-to-ship transfer business that performs full-service
lightering and lightering support operations in the U.S. Gulf
and Caribbean.

The consolidated Teekay entities manage and operate
approximately 64 conventional tankers and other marine
assets, including vessels operated for the Australian
government. With offices in 8 countries and approximately
2,300 seagoing and shore-based employees, Teekay
provides a comprehensive set of marine services to theworld’s leading energy companies.

Teekay Tankers was formed in December 2007 by Teekay
Corporation as part of its strategy to expand its oil tanker
business.

Teekay celebrated its 50th anniversary in 2023.

Teekay is a member of the International Association of
Independent Tanker Owners (INTERTANKO), the Maritime
Anti-Corruption Network (MACN), the Ship Recycling
Transparency Initiative (SRTI), and the United Nations
Global Compact (UNGC).

About Teekay Tankers
Teekay Tankers is one of the world’s leading owners andoperators of mid-sized crude tankers. As of March 2024,
Teekay Tankers had a fleet of 42 double-hull tankers(including 25 Suezmax tankers and 17 Aframax / LR2

VancouverFreeport
HoustonLondonHamilton
Mumbai

ManilaSingapore
CairnsPerthSydneyTeekay Around the World
4

Teekay Group Sustainability Report 2023 — About Teekay

5

1985

Torben Karlshoej
founded Teekay as
a regional charterer

Chartered first vessel for$3,800/day

Purchased first Aframax
tanker, Golden Gate Sun

2020s
6

1990s

1976

1980s

1973

1992

1995

1998

1999

Founder Torben
Karlshoej passed
away

ListedNYSE: TK

Bjorn Moller
named CEO

Expanded tanker trade toAtlantic Aframax market

Entered FSO market

Acquired Bona Shipholding

Secured first FSO
contract

2001

2004

2007

2009

Entered shuttle tanker
business with acquisitionof Ugland Nordic Shuttle
Tankers

Entered LNG shipping
business with acquisitionof Naviera Tapias

Listed NYSE: TNK

Launched
Taurus Tankers

First long-term shuttle
charter in Brazil

2003
Aquired Navion
Shipping from Statoil
and 50% of Skaugen
Petro Trans

2006

2005

Acquired 50% of
OMI Corp.

Listed NYSE: T00

Listed NYSE: TGP

Entered FPSO
business withacquisition of PetrojarlAwarded 4 RasGas
3 LNG contracts

2010

2011

2012

2014

2015

2017

2018

2019

Peter Evensen
named CEOAcquired equity
interest in Sevan
Marine ASA(Sevan FPSO)

Announced JV
with Exmar
LPG

Launched Tanker
Investments Ltd. (TIL)

Acquired 12 modern
Suezmax Tankers

Kenneth Hvid named CEO

E-Shuttle project wins
Environmental Award
Petrojarl 1 FPSO first oil

Sold remaining interestin Teekay Offshore to
Brookfield

First oil and contract
start-up for Libra FPSO

Three Heritage Class
shuttle tankers delivered

Teekay named “Shipping
Company of the Year”

TNK/TIL merger

Completion of 5 “M”
Class LNG sister ships

Completed newbuilding
program including deliveryof the last Arc7 LNG Carrier

2010s

2000s

1970s

FACTS AND HISTORY

Announced four DP2 shuttle
tanker newbuildings

Acquired ALP

Acquired Maersk
LNG vessels

2016
First MEGI LNG
carrier newbuild
commenced 5-year
contact with
Cheniere Energy

Teekay and Brookfield
strategic partnership

Floating Storage Unit
(FSU) Bahrain Spirit
delivered

2020

2021

2022

Teekay safely responds to the COVID-19
pandemic with a global work from homepolicy and no material impacts to vessel
operations

Agreement to sell interest in
Teekay LNG to Stonepeak

Completed sale of Teekay
LNG to StonepeakAwarded new contract to provide
in-service support for five
Australian Government vessels

Completed green recycling of
the Petrojarl Banff FPSO andcommenced green recycling of thePetrojarl Foinaven FPSO

Teekay receives “Tanker
Operator of the Year” award at
the 2023 ShipTek InternationalAwards in Singapore

Received several awards, including“Contractor of the Year” at
the Santos EHSS Awards and“Outstanding Contribution to Safety
at Sea” at the MPA International
Safety@Sea Awards

Teekay Australia begins
operating ADV Guidance for
the Royal Australian Navy
(RAN) and signs new two-year
contract for Ocean Shield

Bahrain LNG terminal completes
construction and commissioning
All three Teekay companies join United
Nations Global Compact

Start of green recycling of
the Petrojarl Banff FPSO

Teekay Group Sustainability Report 2023 — About Teekay

2023
Teekay celebrated its 50th
anniversary in May 2023

Teekay Group Sustainability Report 2023 — About Teekay

7CEO LETTERNOT MANY COMPANIES LAST 50 YEARS IN OUR INDUSTRY. SO,
LET’S TAKE A MOMENT TO CELEBRATE, AND THEN GET BACKTO WORK LIVING TORBEN’S MESSAGE OF DOING IT RIGHT.
—KENNETH HVID
President and Chief Executive Officer, Teekay Corporation
In May of 2023, Teekay turned 50. It all started with adream. Torben Karlshoej had a dream of building the world’s
leading shipping company, managed to the very highest
standards by the most competent people in the industry.
This past year, we honored and celebrated everything that
Torben stood for. We celebrated our heritage and our values
that continue to attract great people from all over the world
who are excited to come and work with us. It is fitting thatour 50th anniversary year also provided us with many otherreasons to celebrate, including strong operational, safety,
and financial success across the Teekay Group.
In 2023, Teekay Tankers achieved the best safety record in its
history, all while delivering excellent operational performanceand continuing to prepare the company for regulatorychanges. This also included strengthening our cybersecurity
program and keeping our seafarers safe during a year ofincreasing tensions in the Red Sea, and elsewhere.
Our business in Australia also had a strong year, andsuccessfully secured several new and renewed contracts,
thereby growing its fleet under management. Over the past
few years, our shore offices in Sydney, Perth, and Cairns
have grown significantly, and in looking to the future, Teekay
Australia continues to seek out and pursue a diverse rangeof new business opportunities.
Regarding our financial performance, I have previously said
that our business is often shaped by macro events beyond
our control, and the external elements that drove a strong
tanker market in 2022, including oil demand growth, low
fleet growth and an increase in tanker tonne-mile demand,
continued through 2023 and into 2024 to-date. As a result,
we experienced one of the strongest years for crude tanker
spot rates, allowing Teekay Corporation to record our highest

annual adjusted net income in 15 years, and Teekay Tankers
to record its highest ever adjusted net income. Furthermore,with Teekay Tankers’ spot market exposure and leading
position in mid-sized tankers, we believe we are well
positioned as a group to continue benefiting from the strong
tanker market fundamentals in the coming years.
We are now in a strong financial position for the future.
The Teekay Group is in a net cash position for the firsttime since it became a publicly traded company nearly 30
years ago, and this provides us with the financial flexibility
to pursue new opportunities in the shipping and broader
maritime sector. We continue to evaluate new investment
opportunities and will be patient and selective on future
growth. Our fundamental belief remains that, as the world
population continues to grow and becomes more affluent,global energy demand will further increase. In addition, we
continue to believe that fossil fuels will remain an importantpart of the world’s energy supply for many years. However,Teekay also has a long history of adapting to changes in
the global energy mix, and we will continue to focus ourefforts on balancing the dual goals of continuing to provide
our customers with safe, efficient, and reliable fossil fueltransportation, while also exploring ways to support anddrive the global energy transition. This is how we willcontinue living Torben’s dream.
As I reflect on the year, I am reminded that not many
companies last 50 years in our industry. So, let’s take anothermoment to celebrate, and then get back to work living
Torben’s message of doing it right. Thank you to everyone formaking this past year a milestone year for the Teekay Group,and I look forward to working with you as we pursue andinvest in our future. Here’s to another 50 years and beyond.

He called me, and he said, “I’m going to build one of the best shipping companies in theworld”. And I thought, well do you really know what you’re doing? But he did. He believedin his people, and the people that worked in this company were everything to him.

BRINGING ENERGY TO THE WORLDVALUESVISION&VISIONVALUESTOGETHER WITH TEEKAY SPIRIT

Safety & Sustainability We put safety first
No compromises. We look after each other and make sure everyone gets homesafely. We consider people, planet and performance in all of our decisions andactions. We contribute to a sustainable business, environment and community.

Passion We live our spirit
We bring energy and enthusiasm to our work. We balance hard work and fun andwe take pride in doing a job well. We strive to make a difference every day withour colleagues and customers. We care!

Integrity We do what is right
We are open and honest, and lead by example. We build trust with others and aretrustworthy. We admit our mistakes and use them as an opportunity to improve
our skills and processes.

Reliability We deliver
We do what we say we will do. We have high standards and deliver quality results.
We build enduring customer relationships and solutions. We hold each otheraccountable and follow through on our commitments. We are operational leaders!

Innovation We embrace change
We seek and promote new thinking and ideas. We support change and encourageothers to do the same. We look for ways to be ahead of the curve and to create
value-added results. We strive to constantly learn and improve.

Teamwork We are team players
We value and respect each other. We work together and promote a spirit ofcooperation. We encourage diverse perspectives, and value the opportunity tolisten and be listened to. We help others be successful. We celebrate success!

—Axel Karlshoej, Former Chairman Emeritus of Teekay Corporation, and brother of Teekay’s founder, Torben Karlshoej
8Teekay Group Sustainability Report 2023 — About Teekay

9STRATEGYOUR ESG JOURNEY
Sustainability has long been a core value
at Teekay, and our culture, values, andpolicies create a strong foundation for thework that lies ahead.
We recognize that stakeholder expectations are increasing.
Over the years, we have seen a significant increase insocial and environmental awareness worldwide, combinedwith increasing scrutiny of companies’ efforts to addressenvironmental and social concerns and uphold businessethics.

We expect that our stakeholders will increasingly evaluate
us based on our commitment to and management of abroad range of environmental, social, and governance (ESG)
issues. We also believe that having in place a strong andcredible ESG strategy is a competitive differentiator that canpositively affect our ongoing access to capital, talent, andbusiness opportunities.
To ensure accountability, executive and employee financial
compensation is linked to achieving our annual goals, which
include items related to ESG performance.

Our ESG strategy is focused on three broad areas to guide our efforts
Allocate capital tosupport the global
energy transition

Operate our existing
fleets as safely andefficiently as possible

Teekay has a track record of servicing
the needs of an evolving global energy
mix.

Safety and Sustainability is our firstcore value. We will continue to promotea strong safety culture and adherence
to our safety commitments. Also,
we continue to invest in increasing
the efficiency of our vessels andhave been a leader in developing
innovative vessel designs to reduce
environmental impacts.

To serve the world’s growing demandfor energy while also meeting the goalsof the Paris Agreement will require asignificant increase in global renewable
and low-carbon energy. Our strategy
will be to use our capital, expertise,
reputation, and partnerships to
support this global energy transition.
In 2023, the Teekay Group reacheda major milestone of becoming net
debt-free, which provides Teekay
with greater financial flexibility to
pursue new opportunities in the
shipping and broader maritime sector
serving the growing demand for new
transportation solutions.

10

We have made significant progress in
reducing the emissions intensity of our
fleet and will make further efforts inthe years ahead to meet our long-termgoals, which are aligned with the IMO
2030 and 2050 ambitions.
We plan to continue our involvement
in shared industry decarbonization
activities.

Further strengthen
our ESG profile
Earning and maintaining the trust of all
our stakeholders requires transparency
about our commitments andperformance in managing importantenvironmental, social, and governanceissues.
To strengthen our ESG performanceand to provide greater transparency,
we are committed to:•

Adopting and elevating ESG bestpractices in the maritime industry•

Setting clear and ambitious goals•

Reporting our progress in line withrecognized frameworks•

Strengthening our engagement withstakeholders•

Ensuring Executive accountability
and Board oversight of ESG activities

Teekay Group Sustainability Report 2023 — Strategy

11

MATERIALITY AND STAKEHOLDER ENGAGEMENTINTEGRITY AT TEEKAY

We prioritize the sustainability opportunities
and challenges that matter most to ourstakeholders.

The topics in this year’s report are unchanged from last year.
These topics were selected in 2020 through management
prioritization by considering the level of stakeholder interestin the topic and the likelihood of the topic affecting ourbusiness objectives. Our assessment and selection ofmaterial topics is also informed by our Enterprise Risk
Management (ERM) process, which assesses the top
risks that may impede Teekay from achieving its strategic
objectives.

Our ambition is to be the most trusted
shipping company. Trust and integrity
are an essential part of who we are at
Teekay and how we make business andoperational decisions.

Our ambitions for material issues are outlined below, andour actions and progress towards achieving these ambitions
are described throughout this report.

Teekay’s Director of Risk, Audit and Compliance (RAC)
oversees Teekay’s integrity compliance program. The
Director of RAC reports to the Audit Committees of Teekay’s
Boards of Directors (Boards) and works closely with Teekay’s
senior leadership to reinforce Teekay’s commitments tointegrity.

In 2020, we surveyed our employees on the ESG issues
that matter most to them and received more than 1,700
responses from our staff on shore and at sea. We also
worked with DNV to review the sustainability priorities ofour customers, financial stakeholders, and other marinetransportation companies. Through our daily work,
various employees also regularly engage with customers,
lenders, investors, NGOs, and government authorities onsustainability topics, and the feedback we receive informs
our prioritization of issues.

Risk Assessment & Audit

Our Governance

Our Policies
Setting Clear Ambitions for Our Top ESG Issues
Personal Safety

Human Rights

Workforce Diversity

Uphold our corevalue—Safety First.
Make sure everyone
gets home safely

Respect and support
all internationallyproclaimed humanrightsFurther increase
gender and national
diversity within Teekay

Teekay’s integrity principles are captured in its Standardsof Business Conduct Policy (Standards). Teekay takes azero-tolerance approach towards any fraud, corruption,breach of sanctions, violation of human rights, modern
slavery, or any other violation of its Standards. Teekay also
maintains additional policies of importance, which set out
Teekay’s rules about data privacy, insider trading, gifts andhospitality, competition law, harassment, and third-party
due diligence.

Due Diligence
Health andWellness
Provide healthy
working conditions
and promote
well-being

12

Security

Business Ethics

Protect the security of
our seafarers, ships,
and digital assets

Manage all ourbusiness activities
with integrity anddo what is right

Climate Change

Spills and Pollution

Ship Recycling

Achieve net-zero
GHG emissions by
2050 and support
the global energy
transition

Zero spills and fullcompliance withregulations

Increase transparency
and elevate standards
in the ship recycling
industry

Teekay Group Sustainability Report 2023 — Strategy

acknowledgment of Teekay’s Standards. All shore-based
personnel also receive mandatory annual online ethics
training on Teekay’s Standards. Our commitment tointegrity extends across our fleet, and our vessel Masters
receive compliance training on risk-relevant issues such as
port-based corruption.

Teekay recognizes that doing the right thing also means
ensuring that our business suppliers and partners do theright thing by sharing our commitment to uphold businessethics. Teekay personnel are required to “onboard” newbusiness partners through Teekay’s automated compliancedue diligence system. This system, which includes watch
list and media monitoring tools, enables Teekay to identify
potential business ethics risks (e.g., corruption, sanctions, orother unlawful misconduct) that may impact Teekay and its
personnel. It also enables Teekay to implement appropriate
follow-up measures. Entities that present an unacceptablerisk are rejected as business partners.

Training
Teekay provides multiple forms of training to its
personnel. New staff receive induction training that covers
Teekay’s integrity expectations, including a review and

To properly structure our compliance program and tomonitor business ethics risks, Teekay performs regularrisk assessments. These risk assessments assist Teekay
in identifying existing and emerging risks and prioritizing a
proportionate response to these risks.

LeadershipTeekay recognizes that an effective integrity complianceprogram requires a healthy corporate culture of active
ethics that is supported by a strong tone from the top that
resonates throughout the organization. At Teekay, we believe‘Everyone is a Leader’. This means that doing business withintegrity is embraced by everyone as a shared leadership
responsibility. Part of this responsibility is speaking up whensuspected violations of Teekay’s Standards occur, using
Teekay’s anonymous hotline reporting tool or other means.

Measuring Our Success
We measure and monitor our integrity performance throughvarious key performance indicators, which include:
Hotline complaints: Teekay operates a confidential andanonymous reporting tool for suspected violations ofTeekay’s Standards. In 2023, all reported cases were
investigated and resolved or closed within 180 days of
being reported in accordance with our objective.
Training and culture: Maintaining a strong ethical culture
at Teekay is the cornerstone of our compliance efforts.
In 2023, there was a 100% completion rate for all shore
staff required to read Teekay’s Standards. These results
were in line with our objective of achieving at least a 95%
completion rate.
In 2024, we will continue working with the Maritime
Anti-Corruption Network (MACN) to focus on managing
port corruption risks.

Teekay Group Sustainability Report 2023 — Strategy

13

GOVERNANCE
We believe good corporate governanceis critical to maintaining the trust of ourcustomers, staff, partners, capital providers
and investors.
Teekay’s Boards of Directors oversee our environmental,social, and governance performance. The corporate
governance guidelines for Teekay Corporation and Teekay

Board Composition
and Committees

Tankers include responsibilities for Board oversight ofour sustainability commitments and performance.
The Boards receive regular updates on sustainability
matters, including reporting on progress in meeting ourannual and longer-term ESG targets. At each quarterly
meeting, the Boards review and discuss Teekay’s health,safety and environmental performance and its
performance on sustainability and diversity efforts.

TeekayCorporation

TEEKAYTANKERS

Teekay Tankers

Total Directors
Independent Directors
Director Diversity. Self-identifies
as non-White or LGBTQ+
Committees

Audit• Compensation and
Human Resources• Nominating andGovernance

Audit• Conflicts• Nominating andCorporate Governance••

TEEKAY’S COMMITMENT
TO THE UNGC TEN PRINCIPLES
Teekay Corporation and Teekay Tankers are
participants of the United Nations Global
Compact, the world’s largest corporate
sustainability initiative.
We are proud to support the UN Global Compact, reinforcing
our group’s deep, long-standing commitment to responsible
safety and environmental practices. We are fully committed
to further advancing sustainability and responsible
business practices to meet the growing expectations of our
stakeholders and global society as a whole. To learn more
about how we incorporate the UN Global Compact Ten
Principles into our group-wide policies and procedures,
please visit www.teekay.com/about-us/sustainability/

14

Environment

7. Support a precautionary approach to environmental challenges
We have built our company on a deep commitment to responsible safety and environmental
practices. Our HSEQ policy establishes our commitment to meet and exceed allenvironmental requirements and to operate sustainably by preventing pollution, striving forzero spills, and minimizing emissions that impact the environment. Teekay is accredited
to ISO 14001 and we require our contractors and suppliers to implement similar
environmental management programs.
Reference: Teekay HSEQ Policy
Subcontracting with Integrity Policy (Internal)

8. Promote greater environmental responsibility
Sustainability is one of our core values and ensures the long-term health and success of ourpeople, our business, and the surroundings we work in.
Since 2010, Teekay has published an annual Sustainability Report that outlines oursocial, safety and environmental performance. Over the coming years, we intend to further
strengthen our Environmental, Social and Governance (ESG) commitment and performanceas we work towards our vision of being the most trusted shipping company.

TEEKAY’S COMMITMENT TO THE UNGCTEN PRINCIPLES
Reference: Sustainability Reports
Human Rights

1. Respect human rights

9. Encourage environmentally friendly technologies

eekay
a leaderin reflect
environmentallyfriendly technologies. We were the first company
Our Standards of Business Conduct are an extension of ourCoreisValues
andourtheintegrity.
world toWe
order
a MEGI-powered
newbuild LNG carrier and our latest LNG carriers
continued commitment to manage our business activities in
with
treat
peopleproduceabout 50%less CO2 emissions per cubic meter of LNG transported compared
fairly and respect human rights. We take allegations seriously
and address
all such
to earlier generations of steam-powered LNG carriers. The majority of our LNG fleet uses
concerns that are raised regarding these policies.
more environmentally friendly LNG as a fuel and across our crude/product tanker fleet, weReference: Standard of Business Conduct Policy
made the decision to adopt low-sulphur fuel instead of installing scrubbers to comply with
Whistleblowing Reporting Procedure
the IMO 2020 standards. To support decarbonization in the shipping industry, we are also
embarking on new industry partnerships to drive necessary technological developments.

2. Not be complicit in human rights abuses

Reference: Sustainability Reports
We recognize that doing the right thing means ensuring that our business suppliers andpartners share our commitment to uphold business ethics.10.
Teekaynewbusiness in all its forms
Workreviews
againstcorruption
Anti-Corruption
partners through a compliance due diligence system and rejects any partners that present
Wepromotetake a zero-tolerance
approachto bribery and corruption and are committed to acting
an unacceptable risk. We also expect our subcontractors toworkplaces thatareprofessionally, fairly and in an honest and ethical manner in all our business dealings andfree of human rights violations.
relationships. Mandatory business ethics training is provided to all shore-based personnel
Reference: Third Party Business Ethics Due Diligence Procedure(Internal)receive training through our onboard Quality Assurance Training Officers
and our seafarers
Subcontracting with Integrity Policy (Internal)(QATO) program. Teekay is a member of The Maritime Anti-Corruption Network (MACN).

Labour

Reference: Standard of Business Conduct Policy
Doing Business with Integrity training (Internal)
We respect the right of employees to join associations and choose representative
organizations for the purpose of engaging in collective bargaining in a manner consistent
with applicable local laws, rules, and regulations. A significant portion of our seafarers are
employed under collective bargaining agreements.

3. Uphold freedom of association and the right to collective bargaining

Reference: Standard of Business Conduct Policy
Global Policy on Discrimination and Harassment (Internal)
Employee Conduct Policies and Guidelines (Internal)
Maritime Labour Convention, and Workplace Behavior Standard (Internal)

4. Eliminate forced labour
5. Eliminate child labour
We have a zero-tolerance approach towards slavery, forced labour, human trafficking, andchild labour. We have implemented a program to provide reassurance that modern slavery
is not taking place within our company or supply chain.
Reference: Modern Slavery Act Statement
Seafarer Minimum Age Policy (Internal)

6. Prevent workplace discrimination
We are committed to creating a workplace where everyone is treated with respect anddignity. We do not tolerate discrimination or harassment in the workplace or work-related
situations, and we investigate any reported violation of our policy.
Reference: Global Policy on Discrimination and Harassment (Internal)
Grievance Procedure (Internal)
Workplace Behavior Standard, and Onboard Complaints (Internal)

Teekay Group Sustainability Report 2023 — Strategy

15

CEO LETTER
WITH OUR STRONGEST EVER SAFETY AND
FINANCIAL PERFORMANCE, 2023 HAS BEEN A
RECORD-BREAKING YEAR FOR TEEKAY TANKERS.
—KEVIN MACKAY
President and Chief Executive Officer, Teekay Tankers Ltd.
In recent years, I have said that the most important ESG
issues for the tanker industry are to uphold our commitments
to the welfare and safety of our crews, and to the protectionof our environment through pollution free operations andthe pursuit of innovation and improving vessel efficiencies,
all while remaining financially sustainable as a company.
Therefore, as we entered 2023, we set our priorities to strive
for zero injuries while focusing on three R’s: regulation,
reliability, and revenue. Looking back at the year, we havetogether made great progress towards delivering on ourpriorities, and in many cases, exceeding them.
Without question, our most important success this past year
was achieving our best safety record in the past decade.
A year ago, we embarked on a significant ambition: Goal
Zero, which is a commitment to operate safely with zero
injuries. Our journey commenced with an intensified focus
on shipboard safety throughout the fleet, and with thesteadfast dedication of our seafarers, we were able to finish
the year without a single Lost Time Injury (LTI) and withmore than 70% of the vessels in our fleet reaching the “GoalZero” milestone. This is a monumental achievement that all
officers and crew can take great pride in, and maintaining
this injury-free status for years to come will requirecontinued dedication to our operational leadership objectives
and our safety commitments.
I am also glad to see the positive results of our ongoing
focus on innovation. In 2023, we continued rolling out
proven energy efficiency measures across our fleet, while
also testing new solutions that can be implemented in
the years to come. Overall, these efforts have helped tosignificantly improve our emissions performance. Since
2008, emissions intensity has decreased 27% in our
Suezmax fleet, and 22% in our Aframax fleet.
We are also investing in new innovations to increase shipand shore connectivity. This past year, we commissioned
our first Starlink (Low Earth Orbit) communications system.
This is a significant milestone for Teekay that can radicallyincrease the speed and performance of ship and shore
communication. The learnings from our initial deployment
16

were so impressive, with some further development and finetuning of the system, we moved swiftly to roll it out to almost
all our vessels by year end. We are really excited about
this technology and the doors it will open to exponentiallyenhance our ship-shore collaborations.
In terms of financial performance, this past year has been
historic, with the strength of the underlying tanker market
enabling Teekay Tankers to achieve our best financial
results in the company’s history. In 2023, Teekay Tankers
generated over $500 million of net income, and by the endof the first quarter of 2024, we expect to be fully debt free.
Furthermore, over the next few years, tanker demand growthis forecast to outpace fleet supply growth, and therefore
we see the potential for an ongoing strong tanker market
in the coming years. Our spot market exposure and strong
financial position have put us in a very good position, andwe intend to maintain our financial strength for future fleet
reinvestment while also returning capital to shareholders.
As we look to the year ahead, 2024 will continue to bringchanges for our industry in terms of regulations andtechnology advancements. After receiving inputs fromcolleagues at sea and on shore, our priorities for 2024
will be: to continue on the journey toward our Goal Zeroambitions for shipboard operations; further develop our workon improving efficiencies for proactive regulatory complianceand exploring new technologies; and to continue investing in
our people by focusing on cross functional collaboration andteamwork as well as individual development.
Teekay’s culture has always been about working hard andhaving fun while we’re doing it. We should therefore continue
to celebrate our successes. But, as we celebrate this past
year’s accomplishments, we must not forget that our journey
towards operational excellence hinges on our steadfast
commitment to safety and service reliability to our customers.
I wish to express my sincere gratitude to every member ofthe organization who contributed to this past year’s historic
performance. Please continue to have fun and continue yourexcellent work in the year ahead.

Teekay Group Sustainability Report 2023 — Teekay Tankers

PEOPLE AND DIVERSITY
At Teekay Tankers, we are one of theworld’s leading operators of mid-sizedtankers and we take pride that the Teekaylogo on our funnel is an industry-respected
symbol of quality. As a true owner, wemanage our vessels directly throughin-house ship management, employing over
1,500 men and women aboard our fleet.

Flawless customer service is achieved through the dedicatedcontribution of our employees. Our focus on the humanelement has encouraged staff to stay with the company. To
promote diversity on shore and at sea, we are committed tooffering equal employment opportunities with transparent
career paths.
We have an inclusive recruitment strategy with a focus on
female maritime university graduates and sponsorship ofgovernment and industry interns and management trainees.
We are also active in government and industry forums
involving employee engagement, flexibility, wellness, genderequality and diversity, and equity and inclusion in shipping.
Teekay Tankers has been a member of the shipping industry
Diversity Study Group since 2022.

Teekay Group Sustainability Report 2023 — Teekay Tankers

17

SAFETY AND SECURITY

2023 Teekay Tankers Employee Facts
Vietnam 6

5 Bulgaria
5 Georgia
5 Latvia
3 Romania
2 Italy

Ukraine 6
Poland 10
Malaysia 12
Croatia 12
China 67

Employee Relations:
Sea staff retention

97% Officers
98% Ratings

Russia 70

100%
Incidents related
to labour or human rights
investigated and closed
within 180 days

Seafarers by
Nationality

Total
1,587

100%
Sea staff covered bycollective bargaining
agreements

India 605

779

Philippines

9.3 years
Average durationof sea staff employment

Social Diversity:

Shore Staff

Women in leadership

SafetyIn 2023, we embarked on a significant ambition: Goal ZERO,
committing to operate safely with zero injuries. Our journey
towards Goal ZERO commenced with an intensified focus on
onsite safety and the dissemination of this vision throughout
our fleet. Our approach to safe operations encompasses
maintaining a system aimed at zero incidents, introducing
new safety initiatives and campaigns, and fostering
personnel development. By leveraging technology throughour electronic hazard reporting program, we continuously
address unsafe acts and conditions, breaking the error
chain before an incident occurs.
In 2023, we achieved our best safety record in two decades,
finishing the year without a single Lost Time Injury (LTI). By
the end of 2023, 30 vessels (77% of our fleet) reached the“Goal Zero” milestone, with seven vessels injury-free for overthree years, and four vessels injury-free for over five years.
Our effective Fleet Training Officer (FTO) initiative,
comprising four experienced Masters and one Chief
Engineer, continues to play a vital role in bolstering onboard
training. In our ongoing commitment to safety, we drewfrom our past learnings to elevate the Fleet Training Officer
program, extending onboard safety training to all vessels.
Our FTOs completed training onboard all fleet vessels in
2023. This comprehensive program includes safety audits,fostering a safety culture, ensuring proper utilization of
personal protective equipment, and regularly providing
feedback on safety policies and procedures to maintain theirrelevance. These efforts are aimed at reducing the risk of

Health and Safety Performance—Teekay Tankers

8% on shore
125

102

1% at sea

FemaleMale

LTIF = Lost Time Injury Frequency
TRCF = Total Recordable Case Frequency
HRCF = Health Repatriatian Case Frequency

1.8

1.64

1.6
1.4

1,576

Sea Staff

Male
1

Based on the World Bank Country and Lending Groups.

Persons not fromhigh-income countries1
in leadership at sea

11
Female

96%

1.2

1.07

1
0.8
0.6

0
2

1.01 0.76

0.85

0.4
0.2

1.06

0.23

0.11

0.0

2021

2022

2023

injuries and cultivating a safer and more sustainable working
environment for our colleagues at sea.
We further improved our safety management system bysimplifying procedures, converting to the Lovoy format,
and reducing the size of the management system by over
30% in the past five years. In addition, new initiatives, suchas converting essential forms into semi-automated Excel
formats were implemented in 2023 to minimize user errors.
In 2023, one significant technical incident2 occurred
and was reported in our tanker fleet, which resulted inmain engine repairs to one of our vessels. In addition,
one navigational incident occurred, which consisted ofan unexpected rudder offset and signs of contact on thelower portion of the rudder. The lessons learned fromthese incidents have been incorporated into our safety
management procedures, and crews have received
comprehensive training to ensure their understanding andimplementation of the procedures.
Strengthening our safety culture involves sharing information
and best practices through our quarterly bulletin, the “TNKSPOT”, and ensuring regular senior leadership engagementwith colleagues onboard and onshore. At Teekay Tankers,
we remain committed to fulfilling our duty of care to our
seafarers and fostering leadership for a safer and moresustainable work environment.

Based on SASB definition of reportable marine casualties.

Teekay Group Sustainability Report 2023 — Teekay Tankers

19

ENVIRONMENTGreenhouse Gas Emissions
Teekay Tankers continues to invest in energy efficiency,
and we have a clear greenhouse gas emissions strategy foraddressing climate change. All shipboard emissions data
are assessed and validated, enabling us to understand thesources and quantities of greenhouse gases in our fleet.
Our entire fleet is now coated with high-performancesilicone hull paints, and closely monitoring and optimizing
vessel efficiency remains a priority. We monitor both thehull efficiency and machinery performance using digitalflow meters and torque meters, which provide real-timedata into our analytics portal.

Security
The International Ship and Port Facility Security (ISPS) Codewas instituted by the International Maritime Organization(IMO) in December 2002 in response to increasing global
concerns regarding terrorism. The aim of the ISPS Code is tobolster maritime security by detecting security risks to ships
and ports, and by requiring the development of security
plans and other measures to prevent such threats. Our fleet
currently adheres to the requirements of both the ISPS Codeand the U.S. Maritime Transportation Security Act of 2002.

The Information Fusion Centre (IFC) hosted a Maritime
Information Sharing Exercise (MARISX) in May 2023. The
event brought together maritime practitioners, navies,
coastguards, maritime law enforcement agencies, and theshipping industry to promote information-sharing processes
and share best practices. Teekay’s cyber incident response
capabilities were showcased during the exercise andimpressed the audience with the coordinated efforts of ourteam onboard the Cascade Spirit and our onshore teams.
Our team’s flawless execution garnered the appreciation of
the naval authorities who attended from over 37 countries.

At the heart of our security program is a commitment
to constantly monitor global maritime security risks andprepare our vessels and crews to effectively respond toany potential threat. Due to the ever-changing geopoliticaland global security landscape, each vessel in our fleet
underwent a comprehensive ship security assessment in
2023, and Ship Security Plans were evaluated to ensure
they are suitable and aligned with the assessments. Global
security updates are communicated to all vessels throughweekly security summaries, and on a quarterly basis
through the TNK SPOT bulletin.

As part of our commitment to security, all vessels in our fleet
participate in an annual, fleet-wide security exercise, which
involves a realistic scenario that occurs over a 96-hour
period. This exercise was successfully executed in 2023
with the active participation of all vessels and the IFC. The
lessons learned from this exercise have been shared andwill be utilized in the event of a real emergency.

In 2023, one vessel security incident was reported in ourtanker fleet, which consisted of the theft of two mooring tails
by armed robbers while at anchorage in Peru. The lessons
learned from the incident have been incorporated into oursafety management procedures, and crews have been
consistently made aware to ensure their understanding
and implementation of the procedures.

Vessel Security Incidents

20

In 2023, we continued rolling out proven energy efficiency
measures across our fleet, while also identifying, studying,and successfully pilot-testing new innovations. Overall,these efforts have helped to significantly improve ouremissions performance. Since 2008, emissions intensity
has decreased 27% in our Suezmax fleet, and 22% in ourAframax fleet. Emissions intensity improved in our Aframax
fleet in 2023 partly due to an increase in average laden
distances.
Teekay Tankers’ own goals align with the IMO’s ambitions,which are to reduce the energy intensity of our fleet
by at least 40% by 2030, and to reach net-zero GHG
emissions by 2050. We have made good progress andare well-positioned to comply with the Energy Efficiency
Existing Ship Index (EEXI) and Carbon Intensity Indicator(CII) requirements for 2023. We also recognize that ongoing
efforts will be needed to achieve our 2030 target. In
the years ahead, we will continue to test and implement
successful energy efficiency initiatives across our fleet andwill continue to investigate new technologies to reduce
emissions.

Air Quality
Full compliance with the IMO 2020 requirements has
resulted in fleet sulfur oxide (SOx) emissions decreasing by
more than 80%. Teekay Tankers continues to use low-sulfur
fuels and has not installed any exhaust gas cleaning systems(scrubbers).
We have also partnered with ESI Group (Environmental Ship
Index) and are submitting our emission data for industry
benchmarking as well as monitoring our vessels to ensure
they exceed current IMO emissions reduction standards.
In addition, in 2023, Teekay Tankers successfully piloted
electronic record books and will begin full implementationin 2024.

Energy Efficiency Operational Indicator (EEOI)
Aframax Tankers
gCO2 / tonne-mile
14
12
10

Vessel security-related nonconformances in external audits,or security-related Port State
Control (PSC) detentions

Teekay Group Sustainability Report 2023 — Teekay Tankers

2023

0

0

1

0

0

93%

90% 91% 87%
78%
11.48 11.10 11.17
10.76
9.56

12.33

6
4
2
0

2008

2019 2020 2021 2022 2023

Energy Efficiency Operational Indicator (EEOI)
Suezmax Tankers
gCO2 / tonne-mile
108

Percent of 2008

100%
8.87

78%
6.88

6

83%
7.39

74%

74% 73%

6.58

6.56

6.47

4
2
0

2022

100%

8

Security Performance
2021

Percent of 200820082019 2020 2021 2022 2023

Average Annual Efficiency Ratio (AER)30
3

OIL TANKERS

2022

2023

Aframax

4.30

4.00

Suezmax

3.17

3.02

The recently adopted IMO correction factors and voyage adjustments for CII calculations
are now included in our reported AER values for 2022 and 2023, and therefore values
are not directly comparable to earlier estimates.

Teekay Group Sustainability Report 2023 — Teekay Tankers

21

Tanker Fleet Energy Efficiency Initiatives in 2023-2024
EXPECTED SAVINGSPER VESSELINITIATIVES

22

Hull Flow
Optimization

All Teekay ships have been equipped with either a pre-swirl or a post-swirl
device to assist in improving the wake flow characteristics of the hull and to
reduce emissions by increasing propeller efficiency

5 - 7%

FuelOpt System

The system assists to automatically optimize main engine fuel consumption
by maintaining a steady shaft power. The system will be installed on a totalof 29 ships in the fleet by the end of 2024

3 - 5%

Graphene Propeller
Coatings

The coating improves propulsion efficiency while keeping the propeller
surface smooth and free from biofouling, which results in reduced fuelconsumption and emissions. In addition, the coating reduces propeller
underwater noise.

3%

Variable Frequency
Device (VFD)

VFDs reduce the operating power and electrical load of onboard machinery.
In 2024, another four ships will be equipped, thus completing ourinstallation of VFDs on all vessels in our fleet.

Up to 1% fuelsavings

Low Friction Hull
Coatings

Currently all Teekay Tankers vessels have been coated with low-friction
silicone paints for improved hull performance. This also allows for longer
anchorage stays without negatively impacting vessel fuel consumption.

4 - 5% over5-year docking
cycle

Main Engine
Modifications

Following the successful upgrades on Rio Spirit to improve main engine
efficiency, the project has been extended to Atlanta Spirit in 2024. The
main engine will be equipped with additional equipment to ensure optimal
cylinder combustion pressure, and to optimize exhaust valve operations for
improved fuel efficiency.

5 - 6% fuelsavings

Low Leakage Valves

Installation of low leakage valves in the main engine cooling water
system and the main engine jacket water pre-heater unit reduces steam
consumption in port and will be extended to all vessels during theirdrydocking in 2024.

1% in port

Boiler Optimization

Following the successful pilot test of low-load operational modifications forthe auxiliary boiler, the project has been extended to another five ships in
2024. The modifications help vessels save fuel by avoiding frequent boiler
start-stops.

3% fuel savingsin portPerformance Portals

Teekay has invested in a performance portal for voyage and route
optimization based on weather updates, and to optimize hull and machinery
performance. The performance monitoring and management tool is now inuse on all Teekay vessels

Improved
monitoring with
5 - 7% savings

Fuel Additives

After trials on a few vessels, all Teekay vessels have now been instructed
to use suitable fuel additives to optimize and improve combustion
performance. This also helps reduce particulate matter emissions.

3% fuel savings

Teekay Group Sustainability Report 2023 — Teekay Tankers

Energy Efficiency Existing Ship
Index (EEXI) and Carbon Intensity
Indicator (CII)
After analysis performed with each of our Classification
Societies, we have identified that implementing anengine power limitation (EPL) for our vessels is themost cost-effective manner to achieve requirements.
In compliance with vessel Class surveys, we expect tocomplete all EPL installations in our fleet within the firstquarter of 2024. The resulting power limitation will have anegligible impact on the speed of our vessels, due to theuse of low-friction hull coatings.
After FuelOpt installations are completed, engine power
limitation will be switched to the Shaft Power Limitation(ShaPoLi) functionality, with all Class approvals. We expectthat approximately 29 of our vessels will shift over to
ShaPoLi in the first quarter of 2024.
Fleet emissions for 2023 have been validated internally andsubmitted to DNV for final review. Based on internal review,
we have identified only one vessel with a ‘D’ rating, due
to operating in the lightering trade. All other vessels in our
fleet are within the A/B/C ratings range, as expected, due toour investment in various energy saving devices (ESD), andthrough the proper training and support from our ship staff.

European Union Emissions Trading
System (EU ETS)In January 2024, the EU Emissions Trading System was
extended to cover greenhouse gas emissions from all
ships above 5,000 gross tonnage (GT) calling EU ports.
To comply, shipping companies are required to purchaseemissions allowances (permits) for 100% of total vessel
emissions on voyages between two EU ports, and for 50%
of total vessel emissions on voyages starting or ending in
an EU port. Compliance obligations will be phased in overa three-year period for the shipping industry.
Throughout 2023, we prepared for the new regulations,and in January 2024, we acquired our first lot of emissions
allowances.
Teekay also continues to monitor development of the FuelEU
Maritime regulation, which is proposed to enter into force
in January 2025, and which will require ships to use fuels
below a certain carbon-intensity when trading in the EU, oron voyages into or out of the EU.

Ballast Water Management
Installations of ballast water treatment systems (BWTS) havebeen planned and will be completed on the last four vessels
in the Teekay Tankers fleet in the second quarter of 2024.

Teekay Group Sustainability Report 2023 — Teekay Tankers

23

Teekay Tankers SASB DisclosuresTOPIC

ACCOUNTING METRIC

UNIT

2021

2022

2023

Greenhouse
Gas
Emissions

GHG emissions

Metric tons

1,206,936

1,149,929

1,143,497

Total energy consumed

Gigajoules (GJ)

15,292,619

14,608,731

14,481,841

Percentage heavy fuel oil4

Percentage

77%

77%

80%

Percentage renewable fuelPercentage

0%

0%

0%

Average EEDI for new ships

Grams CO2 per
ton-nautical mile

No new
vessels

No new
vessels

No new
vessels

Nitrogen Oxide (NOx) emissions5

Metric tons

30,951

22,04822,211

Sulfur Oxide (SOx) emissions

Metric tons

3,177

2,830

2,837

Particulate Matter (PM) emissions

Metric tons

1,400

1,163

1,239

Fleet implementing ballast treatment

Percentage

52%

80%

90%

Number of spills (over 1 barrel)

Number000

Total volume of spills (over 1 barrel)

Cubic Meters

0

0

0

Lost Time Injury Frequency (LTIF)

Rate

0.11

0.23

0.0

Marine incidents

Number3

6

2

Incidents classified as very serious

Percentage

0%

0%

0%

Conditions of class

Number2

3

1

Port state control deficiencies

Number13

12

21

Port state control detentions

Number0

0

0

Port calls in 20 lowest ranking countries Number
in Corruption Perception Index

36

37

48

Air Quality

MarineEcological
Impacts
SafetyBusiness
EthicsActivity
Metrics

Monetary losses as a result of legal
proceedings associated with bribery
or corruption

$US

$0

$0

$0

Sea staff

Number

1,960

1,674

1,587

Vessels in total fleet

Number

48

45

536

Vessels managed by Teekay Tankers

Number41

40

41

Deadweight tonnage

Thousand DWT

5,675

5,433

5,538

Total distance traveled by vessels

Nautical miles

2,179,847

2,081,789

2,286,233

Operating days

Number

16,684

15,394

14,895Vessel port calls

Number

2,093

1,947

1,869

TEEKAY
AUSTRALIAVLSFOFor 2022 and 2023, NOx and SOx emissions are estimated using improved methods outlined in the Fourth IMO GHG Study and are therefore
not directly comparable to earlier estimates.
6
Includes 8 in-chartered tankers and 4 third-party managed tankers not included in reported totals.
4
5

24

Teekay Group Sustainability Report 2023 — Teekay Tankers

25PEOPLE AND DIVERSITY
Teekay Australia celebrates diversity. As such, we endeavor
to foster a workplace environment which is inclusive,
respectful, and empowering to all. Our hiring and promotion
practices are designed to ensure equal opportunities
and fairness. By embracing diversity, we believe that we
can drive innovation, promote collaboration, and deliver
the highest level of service to our customers. Our staff
behavior goes to the core of our SPIRIT values of Respect
and Teamwork. To support our team to achieve thesefundamental values, Teekay has invested in training thatwill help our staff demonstrate these behaviors at work
every day. Respectful Workplace Behaviors and Conflict
Management training continues to be provided to staff onshore and at sea.

Teekay Australia is a pre-eminent marine
services company. Our key capabilities aremarine operations, supply, maintenanceand engineering support, asset
management, drydocking, and Australiancrewing and training. Today, Teekay
Australia forms an integral part of the
global Teekay operations in the AsiaPacific region.

•

Shifting to a new warehouse in Sydney•

Renewal of Teekay’s contract to provide vessel operational
services for Ocean Shield•

Completion of the docking and operational takeover of theAustralian Defence Vessel (ADV) Guidance

Teekay Australia has been operating in the Australianmaritime environment for more than 25 years, and during
this time, it has grown to provide a range of marine services
to support the requirements of various clients, including theCommonwealth of Australia.
In 2021, Teekay was awarded an Australian government
contract called the ‘Defence Marine Services Support
Program (DMSSP) – Service Package 2’ to manage five
defence support vessels. In 2022, the vessel Reliant
was added to this contract and into Teekay Australia’s
management, and in 2023, the vessel Guidance was added.
Other notable activities and accomplishments in 2023
include:•26

Opening Teekay Australia’s new Sydney office, which is
closer to the central business district and to our clients

Teekay Group Sustainability Report 2023 — Teekay Australia

Engagement with our sea staff remains important in living
up to our core value of Teamwork. To support this, Teekay
Australia held its 2023 sea staff conference, attended bysea staff of various ranks, as well as some office staff. Caring
for colleagues was the focus of this year’s conference, and it
was great to see the positive energy levels that the attendees
demonstrated throughout the conference.

OVER THE PAST FEW YEARS, OUR
SHORE OFFICES IN SYDNEY, PERTH, AND
CAIRNS HAVE GROWN SIGNIFICANTLY.

address this challenge, including significantly increasing thenumber of trainees. In 2023, Teekay Australia engaged eight
Trainee Integrated Ratings, three Deck Officer Trainees,
three Engineer Trainees, and one Electro Technical Trainee.
Teekay also embarked on several other retention andrecruitment initiatives and is a member of the Industry Skills
Australia Maritime Strategic Workforce Planning Committee.

Teekay Australia Employee Facts

WE CURRENTLY EMPLOY 63 SHOREEMPLOYEES, WHICH IS MORE THAN A
50% INCREASE FROM 2021.
We also employ 408 Australian seafarers. This past year,
the Australian maritime industry experienced a significant
shortage of certified marine crews. Data from the Australian
Maritime Safety Authority (AMSA) indicates that from2018 to 2023, there was a 37% reduction in overall AMSA
certified seafarers, and a 60% reduction in Integrated
Rating Certificates of Competence. This reduction,
combined with a recent increase in offshore oil and gas
activity in Australia, resulted in a decrease in Teekay
Australia’s sea staff retention rate in 2023. Although thistrend exists industry wide, Teekay has taken several steps toShore Staff

38

25

Male

388

Sea Staff

Male

Teekay Group Sustainability Report 2023 — Teekay Australia

Female20
Female27

Teekay Australia
HSSE & QA Strategy
HealthA mentally and physically
healthy workforce• Psychologically safe workplace•

Mental and physical well-being

HEALTH, SAFETY,AND SECURITY

Security

Managing such a varied fleet means that a one-size-fits-all
approach is rarely suitable and therefore each aspect ofship management needs to be evaluated, risk-assessed andmanaged individually to suit the vessel’s unique profile.

•

Improved cyber security training
and tracking•

Safeguard information and assets

Teekay Australia continues to grow the organizational
capabilities and maturity to meet customer requirements
underpinned by the Operational Excellence philosophy ineverything we do. Teekay Australia’s HSSE and QA strategy
is underpinned by annual focus areas and associatedinitiatives, which are implemented annually through theBalanced Score Card via our operational KPIs. Regrettably,
one Lost Time Injury occurred in the fleet in 2023. The
incident was thoroughly investigated, and corrective actions
were taken. In addition, the lessons learned were shared,
including at interactive sessions held at our sea staff
conference to further raise awareness.
Teekay Australia also recognizes that our success is directlytied to the well-being of our employees. Teekay is committed
to addressing the physical, mental, and emotional healthneeds of its employees and to provide them with theresources they need to effectively manage workplace
challenges and pressures.
We recognize the strong relationship between physical andmental health, which is why we partnered with gyms near
our offices to trial physical wellness programs. Last year,
we launched several programs for both shore and offshore
employees, including a pilot physical wellness program on
the Stoker aimed to promote wellness and create healthy
competition and excitement surrounding health and fitness.
Teekay Australia provides an Employee Assistance Program(EAP) to all staff and their immediate families. Teekay
Australia’s EAP is a free and confidential helpline available to
all Teekay Australia staff 24/7, 365 days a year.
28

GROUP-WIDE
INITIATIVES

Protect people, information,
and assets• Personnel security

SafetyZero harm• Reduction in recordable
personal incidents•

Safer operations•

Enhanced warehouse safety•

Safety through leadership

Environment
Prevent pollution and reduce
environmental impacts• Strive for zero environmental incidents•

Minimize environmental impacts•

Demonstrate our commitment tosustainability

Quality Assurance
User-friendly systems and effective
governance aiding in operational
excellence• Raise management systemcompliance through training
and raising awareness•

Ensure assurance program
sustainability and suitability
as business needs change•

Process simplification andimprovements

Teekay Group Sustainability Report 2023 — Teekay Australia

29

PEOPLE AND DIVERSITYA Diverse and Inclusive Workplace
We are proud that our long history has represented a varied
set of experiences, perspectives, and backgrounds and
we are proactive in promoting equal career development
and advancement opportunities for all our employees. We
aspire to foster a diverse, equitable and inclusive workplace
at Teekay, and over the past few years, we have gained
valuable insights on our continued journey to do so. We
believe that improving diversity and gender balance andsupporting an environment of inclusivity at all levels acrossthe organization facilitates better decision-making, increases
innovation, and improves overall productivity.
In 2023, as we celebrated our 50th anniversary, we alsocelebrated our history, our culture and the talented anddiverse people and experiences unique to Teekay. We
delivered leadership and culture training with a focus on
our values, and our shared leadership and workplace
behaviours.
In 2024, we will continue to ensure employees feel part ofan organization that welcomes differences, provides equal
opportunities, and fosters a sense of belonging for everyone.

Teekay Group Employee Facts
2 Bermuda

USA 2073

India 22

In 2023, zero allegations were raised. In 2024, we will focus
on ensuring employee awareness of labour and humanrights policies and programs.

Supporting Health and Well-being

Total
335

Our second cohort of 12 students has completed their firstphase onboard. Most of them are in the second phase of
their training and have acquired learning and hands-on
experience on their assigned ships. Some have seen great

63

Australia

65

success and received recommendations and evaluations
from their respective vessels.
Our third and fourth cohort of students are in college, theformer in their senior year and the latter in their first year.
They have been immersed in activities that enhance theirlearning experience, such as sailing, coastal clean-up,
community extended activities, school publications,leadership, soft skills training, physical fitness, and curricularand extracurricular activities.
Remarkably, this year held the successful recruitment of therating program’s first and cadetship’s fourth cohorts. Our
rating trainees successfully onboarded on Teekay Tankers
vessels and started their first international career voyage.
In partnership with Teekay and the TK Foundation, ourcore values and Teekay SPIRIT have been instrumental
in supporting disadvantaged youths and training them
to become competent officers and future leaders in themaritime industry.

68

Philippines

Singapore

Teekay Shore Staff

178
Male

Health and well-being continue to be an important focus
area for Teekay, both for our seafarers and for those
employed in our offices globally. We have a hybrid work
environment which allows for greater workplace flexibility
and work-life balance in support of employee well-being.
Throughout 2023, we provided shore employees withseveral programs, educational resources, and service
offerings to support their well-being, including physical,
mental, social, and financial wellness. In 2024, we will30

Teekay and the TK Foundation have sponsored 72 students
since grants started in 2018.

Shore Staff
by Country

22

UK andEuropeDeveloping Future Leaders

Of the 72 students, 52 were Cadets under the Future
Leaders Program, and 15 were from the Ratings Pipeline
Program. Our first cohort of students has completed their
shipboard cadetship training, and most are now preparing
for their theoretical exam and other requirements for theirnext rank. One deck cadet has passed the theoretical examand is now applying for promotion.

CanadaRespecting Labour and Human Rights
At Teekay, we treat people fairly and respect and support
labour and human rights. We ensure that all our business
partners and suppliers follow the same principles. We
take all labour and human rights allegations seriously andaddress all such concerns that are raised regarding ourpolicies.

continue to prioritize our social wellness support andofferings for employees including participation in communityand charitable events and global networking opportunities
for colleagues at sea and shore.

Teekay Group Sustainability Report 2023 — Group-Wide Initiatives

157

Female11%
Women inleadership
positionson shore

Teekay Group Sustainability Report 2023 — Group-Wide Initiatives

31

CYBER SECURITY @ TEEKAY
In 2024, we will further enhance our cyber security
awareness program and roll out new solutions in our cybersecurity roadmap.

PROMOTING RESPONSIBLE SHIP RECYCLING
In 2009, the IMO adopted the Hong Kong
International Convention for the Safe andEnvironmentally Sound Recycling of Ships(Hong Kong Convention), which ensuresthat health, safety, and environmental
risks are minimized as much as possible
throughout every part of the recycling
process.
Not only do we support the Hong Kong Convention—but
we believe more can be done.
We have developed and adopted a stringent process forship recycling that goes above and beyond the Hong Kong
Convention, and by being directly involved on-the-ground,
we ensure this standard is met when recycling our vessels.
To drive change, we are also an early supporter and memberof the Ship Recycling Transparency Initiative (SRTI). We
were the eighth leading shipowner to join the SRTI.

32

In 2022, our final FPSO unit, the Petrojarl Foinaven,commenced green recycling at M.A.R.S. Europe’s
EU-approved facility in the Port of Frederikshavn,
Denmark. This facility was chosen based on the resultsof an independent assessment of the facility against therequirements of the EU Ship Recycling Regulation andthe Hong Kong Convention, in addition to our successful
experience recycling the Petrojarl Banff FPSO unit at
this site.
To ensure our standards are met, Teekay’s representatives
visit the recycling facility regularly to engage with
M.A.R.S., and to monitor health, safety, and environmental
performance. To date, recycling has progressed in fullcompliance with all requirements, and without any
significant incidents. Green recycling of the Petrojarl
Foinaven has progressed on schedule and is expected
to be fully completed in the first quarter of 2024.

Teekay Group Sustainability Report 2023 — Group-Wide Initiatives

te ct
P ro

nd

In 2023, we continued our organization-wide cyber security
awareness program. The goal of this program is to reducerisks at the last line of defense, through education andawareness, which includes regular phishing exercises,
and an in-house cyber security newsletter delivered to all
employees.

Cyber Security
Framework

R esp oTo further enhance our cyber security program, Teekay
adopted the National Institute of Standards and Technology(NIST) framework that helps us incorporate best practices
to manage risk. Teekay has implemented a “defense indepth” approach to ensure we are not relying on any single
mitigation of an identified risk.

Ide
nti

ver
co

fy

Re

We manage cyber security risks by focusing
on the cornerstones of People, Process andTechnology, and the application of bestpractices to each. These pillars define thecore of our cyber security program.

D ete ct
National Institute of Standards and Technology (NIST) framework

Cornerstones of our Cyber Security Program
Process

People•Cyber hygiene•

Training and awareness•

Professional skills
and qualifications•

Written procedures•

Authorization control•

Physical security•

Management systems•

Policies and procedures•

Handling of vendor/third parties•

Drills and audit regimes

Technology•

Antivirus•

Firewalls•

Intrusion detection systems•

Software updates and patches•

Testing- Functional testing- Vulnerability scanning- Penetration testing

Teekay Group Sustainability Report 2023 — Group-Wide Initiatives

33

SUPPORTING OUR
LOCAL COMMUNITIESSUMMARY OF TARGETS AND PROGRESS

We benefit in many ways from thecommunities in which we live and work,
and we consider it our responsibility tohelp strengthen and give back to ourcommunities.

Teekay’s Ambition: Personal Safety

Teekay’s Ambition: Human and Labour Rights

Uphold our core value—Safety First. Look
after each other and make sure everyone
gets home safely

Respect and support all internationallyproclaimed human rights

We partner with charitable organizations that embody
Teekay’s SPIRIT values and we encourage our employees
to become directly involved. All shore employees areprovided with up to three paid volunteering days eachyear to support local community and charitable activities.
In 2023, through various efforts in each of our offices,
we supported more than 40 charities and community
organizations around the world.

SOCIAL AND GOVERNANCE

Targets•

Zero fatalities•

Total Recordable Case Frequency (TRCF) < 1.0•

Safety performance within the top quartile of industry
benchmarks

Results in 2023•

Zero fatalities. One LTI in Teekay Australia fleet.

•

TRCF of 1.76 in 2023. Target not met.

Actions for 2024•

Implement electronic record-keeping logbooks acrossthe fleet•

Invest in our people, pursue Goal Zero, and enhancelearning and skills•

Promote inclusive collaboration by recognition andappreciation

Targets•

100% of reported incidents related to labour or humanrights are investigated and closed within 180 days•

≥97% staff retention at sea•≥90% staff retention on shore

Results in 2023•

100% of reported incidents were investigated and closed
within 180 days•

Shore staff retention rate of 91%•

Group wide sea staff retention rate of 95%, slightly below
target due to Australian seafarer shortage•

Pay equity efforts are ongoing. Pay equity and fairness areevaluated with all compensation-related processes anddecisions, and honored by legislation, where required.

Actions for 2024•

Ensure employee awareness of labour and human rights
policies and programs•

Train additional Ratings in Teekay Australia to mitigate sea
staff shortages

Community Partners Supported in 2023
People and Families in Need

Seafarer Support
Brazoria County Dream Center•

Singapore MaritimeONE Scholarship•

Movember••

The Trussel Trust Food Bank•

Histiocytosis Association•

Seamen’s Church Institute•Singapore Breast Cancer Foundation•

Batang Sidewalk Ministries•

US Coast Guard Foundation•

Let’s Take a Walk•

Philippine Red Cross•

Maine Maritime Academy•

Epworthy Community Services•

Arunodaya Mitra Mandal•

Alma Doepel Fund•

Singapore Cancer Society•

Young Diggers•

Royal Institute of Naval Architects•

Dignity Mama•

Vision Bermuda•

The Mission to Seafarers•

Cerebral Palsy Alliance•

Elize DoLittle Society•International Sailor’s Society Canada•

Children’s Charities Association ofSingapore•

Friends of Hope Academy•

Bermuda Sloop Foundation

Marine Environment•

Children’s Cancer Foundation•

Greater Vancouver Food Bank•WWF-Singapore•

Willing Hearts•

Variety BC•

Tangaroa Blue Foundation•

Guide Dogs Singapore•

Covenant House•

Nature Trust of BC•

Darul Ihsan Orphanage•

Canadian Guide Dogs for the Blind•

Vancouver Maritime Musuem•

Houston Food Bank•Cat Therapy & Rescue Society•

UN Global Compact•

Swenke Elementary School•

City2Surf

Teekay’s Ambition: Workforce Diversity
Further increase gender and national
diversity within Teekay
Targets•

Build awareness to ensure employees feel part of anorganization that welcomes differences, provides equal
opportunities, and fosters a sense of belonging for everyone.

Results in 2023•

Leadership and culture training focused on values, sharedleadership language, and inclusive workplace behaviour•

The Teekay Future Leaders (TFL) program has resulted in
17 female graduates to-date

Actions for 2024••

Continue to build awareness to ensure employees feel partof an organization that welcomes differences, provides
equal opportunities, and fosters a sense of belonging

Teekay’s Ambition: Health and Wellness
Provide healthy working conditions that
promote well-being for employees
Targets• Health repatriation case frequency (HRCF)
for sea-staff ≤1.8
Results in 2023•

Target achieved in 2023. Group-wide HRCF of 1.55•

Wellness Days for shore-based employees in selectlocations

Actions for 2024•

Continue to support, communicate, and educate on
employee health and wellness programs

Deliver Diversity, Equity & Inclusion Education Training to
global shore employees
On track

34

Teekay Group Sustainability Report 2023 — Group-Wide Initiatives

Teekay Group Sustainability Report 2023 — Group-Wide Initiatives

Needs attention

35

SUMMARY OF TARGETS AND PROGRESSSOCIAL AND GOVERNANCE
Teekay’s Ambition: Vessel and Cyber
Security
Protect the security of our seafarers,
ships, and digital assets
Targets•

Zero vessel security incidents•

Zero vessel security related non-conformances inexternal audits and zero security related Port State
Control (PSC) detentions••

Teekay’s Ambition: Climate Change

Teekay’s Ambition: Spills and Pollution

Manage all our business activities withintegrity and do what is rightAchieve the IMO greenhouse gas ambitions
and support the global energy transition

Zero spills and full compliance withregulations

Targets

Targets

Targets•

100% of business ethics breaches are investigatedand closed within 180 days•

≥95% of invited shore-based employees attend
ethics training•

100% of new vendors pre-approved throughthird-party due diligence process•

Target not met. One vessel security incident was recorded
in 2023. Zero cyber security breaches occurred.

24/7 monitoring of security risk situation and guidance
to vessels and crew
Continued participation in the Intertanko Security
Committee••

All targets achieved in 2023

Further strengthen cyber safe culture program•

Roll-out new solutions in our cyber security roadmap

Emissions intensity has decreased by 27% and 22%,
respectively, in the Suezmax and Aframax fleets since2008. We recognize that ongoing efforts will be neededto achieve our 2030 target.

•

Zero spills greater than one barrel•

Zero ballast non-compliances•

Zero SOx and NOx non-compliances•

Continue reducing single-use plastic water bottle
consumption onboard

Results in 2023•

All targets achieved.

•

Onboard consumption of single-use plastic drinking
bottles has been reduced >80% since 2021

Actions for 2024

Actions for 2024•

Ethics training for shore staff•

Continue to develop our partnership with the Maritime
Anti-Corruption Network to focus on managing port
corruption risks

Actions for 2024—Cyber Security•

40% reduction in fleet-wide greenhouse gas emissions
per tonne-mile by 2030, compared to 2008, and achieve
net-zero GHG emissions by 2050

Results in 2023

Results in 2023

Actions for 2024—Ship Security•

Teekay’s Ambition: Business Ethics

Zero cyber security breaches

Results in 2023•

ENVIRONMENT•

Continue application of low-friction hull paints for all
docking vessels•

Continue installations of FuelOpt system, low leakage valves,
low-load boiler operations equipment, and other energy
savings devices•

Train ship staff for managing EU ETS and FuelEU
Maritime regulations

Actions for 2024•

Continue ballast water treatment systeminstallation program

Teekay’s Ambition: Ship Recycling
Increase transparency and elevatestandards in the ship recycling industry
Targets•

Zero regulatory non-compliances•

Regular on-site inspections at any active ship
recycling facilities

Results in 2023•

All targets achieved

Actions for 2024

On track

36

Teekay Group Sustainability Report 2023 — Group-Wide Initiatives•

Complete green recycling of the Petrojarl Foinaven•

Continue our support of the Ship Recycling Transparency
Initiative (SRTI)

Needs attention

On track

Teekay Group Sustainability Report 2023 — Group-Wide Initiatives

Needs attention

37

ESG Performance Data – Teekay Group-Wide Consolidated7,8
TOPIC

ACCOUNTING METRIC

UNIT

2021

2022

2023

Greenhouse
Gas
Emissions

GHG emissions

Metric tons

4,779,487

1,166,344

1,176,254

Total energy consumed

Gigajoules (GJ)

74,105,536

14,903,181

14,916,591

Percentage heavy fuel oil

Percentage

32%

76%

78%

Percentage renewable fuelPercentage

0%

0%

0%

Average EEDI for new ships

Grams CO2 per
No new
ton-nautical mile vessels

No new
vessels

No new
vessels

Nitrogen Oxide (NOx) emissions

Metric tons

66,17322,7339

23,067

Sulfur Oxide (SOx) emissions

Metric tons

5,515

2,846

3,064

Particulate Matter (PM) emissions

Metric tons

2,366

1,171

1,249

Fleet implementing ballast
water treatment

Percentage

60%

80%

90%

Number of spills (over 1 barrel)

Number000

Total volume of spills (over 1 barrel)

Cubic Meters

0

0

0

Total Vessel Waste Generated

Cubic Meters

10,312

3,665

3,610

> Disposed to shore facilities

Cubic Meters

7,165

2,705

2,533

> Incinerated onboard

Cubic Meters

2,676

802

896

> Disposed at sea10

Cubic Meters

472

159

181

Total Recordable Case Frequency

Rate

1.86

2.52

1.76

Lost Time Injury Frequency

Rate

0.15

0.32

0.11

Fatalities

Number0

00Marine incidents

Number9

7

3

Incidents classified as very serious

Percentage

0%

0%

0%

Conditions of Class

Number9

4

6

Port state control deficiencies

Number32

12

21

Port state control detentions

Number0

0

0

Port calls in 20 lowest ranking countries Number
in Corruption Perception Index

38

37

48

Monetary losses as a result of legal
proceedings associated with bribery
or corruption

$US

$0

$0

$0

Shore staff

Number

646

368

335

Sea staff

Number

4,156

1,901

1,995

Vessels in total fleet

Number

124

45

53

Vessels managed by Teekay

Number

86

47

4911

Deadweight tonnage

Thousand DWT

9,135

5,444

5,559

Total distance traveled by vessels

Nautical miles

6,378,429

2,116,340

2,390,744

Operating days

Number32,203

17,862

17,786

Vessel port calls

Number

3,011

1,947

1,869

Air Quality

MarineEcological
Impacts
Waste

SafetyBusiness
EthicsActivity
Metrics

Consolidated data in 2023 includes Teekay Tankers and Teekay Australia, and therefore
results may differ from those presented elsewhere in this report.
8
Historical data for 2021 includes LNG carriers that were formerly part of Teekay LNG(now Seapeak LLC), which was sold in January 2022. Data does not include Teekay
Corporation’s FPSO units, which were all managed by a third party.
9
For 2022 and 2023, NOx and SOx emissions are estimated using improved methods outlinedin the Fourth IMO GHG Study and are therefore not directly comparable to earlier estimates.
7

38

APPENDIX

Food waste and bulk cargo residues which are non-hazardous to the marine
environment.
11
Includes eight vessels technically managed by Teekay Australia. Remaining vessels
in Teekay Australia are excluded since they are not operated under Teekay’s
management system.
10

Teekay Group Sustainability Report 2023 — Group-Wide Initiatives

39

SASB Reference TableGRI
INDICATORDESCRIPTIONREPORT SECTION(S) AND NOTES

102-1

Name of the organization

About Teekay

102-2

Activities, brands, products,
and services

About Teekay

102-3

Location of headquarters

Teekay Corporation and Teekay Tankers are
Marshall Islands corporations, each with
headquarters located at: Fourth Floor, Belvedere
Building, 69 Pitts Bay Road, Hamilton HM08,
Bermuda102-4

Location of operations

About Teekay

102-5

Ownership and legal form

About Teekay

102-6Markets served

About Teekay

Not reported due to unavailability of data

102-7

Scale of the organization

ESG Performance Data. For financial data, see theInvestors section of our website at www.teekay.com

Percentage of fleet implementing ballast waterexchange and treatment

Teekay Tankers SASB Disclosures, ESG Performance
Data. Vessels not implementing treatment are
implementing exchange

102-8

Information on employees
and other workers

ESG Performance Data, Definitions and Notes

Number and aggregate volume of spills andreleases to the environment

Teekay Tankers SASB Disclosures, ESG
Performance Data

102-9

Supply chain

Most of our fleet has been built at leading shipyards
in Korea and China. For more information, see
www.teekay.com/about-us/fleet/

Employee
Health & Safety

Lost time incident rate (LTIR)

Safety and Security, ESG Performance Data

102-10Significant changes to the organization About Teekay
and its supply chain

Business
EthicsNumber of calls at ports in countries thathave the 20 lowest rankings in Transparency
International’s Corruption Perception Index

Teekay Tankers SASB Disclosures, ESG
Performance Data

102-11

Precautionary Principle approach

Materiality and Stakeholder Engagement102-12External initiatives

About Teekay

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

Teekay Tankers SASB Disclosures, ESG
Performance Data

102-13

Membership of associations

About Teekay

Strategy102-14

Statement from Seniordecision-maker

CEO Letter

Number of marine casualties, percentage
classified as very serious

Safety and Security, ESG Performance Data

Ethics andIntegrity

102-16

Values, principles, standards,
and norms of behavior

Vision and Values, Integrity at Teekay, Teekay’s
Commitment to the UNGC Ten Principles

Number of Conditions of Class orRecommendations

Teekay Tankers SASB Disclosures, ESG Performance
Data. Reported data includes only Conditions of Classand does not include Class Recommendations

Governance102-18Governance structure

Governance

Stakeholder
Engagement102-40

List of stakeholder groups

Materiality and Stakeholder Engagement

Number of port state control deficiencies
and detentions

Teekay Tankers SASB Disclosures, ESG
Performance Data

102-41

Collective bargaining agreements

Number of shipboard employees

As above

Total distance traveled by vessels

As above

Operating days

As above

Deadweight tonnage

As above

Number of vessels in total shipping fleet

As above

Number of vessel port calls

As above

People and Diversity. Teekay Corporation hasentered into a Collective Bargaining Agreement with
the Philippine Seafarers’ Union, an affiliate of theInternational Transport Workers’ Federation (or ITF),
and a Special Agreement with ITF London, which
cover substantially all the officers and seafarersthat operate our Bahamian-flagged vessels. We
are also party to collective bargaining agreementswith various Australian maritime unions that cover
officers and seafarers employed through ourAustralian operations.

Twenty-foot equivalent unit (TEU) capacity

Not applicableTOPIC

ACCOUNTING METRICREPORT SECTION(S) AND NOTESGreenhouse
Gas Emissions

Gross global Scope 1 emissions

Greenhouse Gas Emissions, ESG Performance Data

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

Our ESG Journey, Greenhouse Gas Emissions,
Summary of Targets and Progress

Total energy consumed, percentage heavy
fuel oil, percentage renewable

Teekay Tankers SASB Disclosures, ESG
Performance Data

Average Energy Efficiency Design Index(EEDI) for new ships

ESG Performance Data

Air emissions of the following pollutants:
NOx (excluding N2O), SOx, and particulatematter (PM10)

Air Quality, ESG Performance Data

Shipping duration in marine protected areasor areas of protected conservation status

Air Quality

Ecological
Impacts

Accident& Safety
Management

Activity
Metrics

40

GRI Content Index

Teekay Group Sustainability Report 2023 — Appendix

TOPIC
Organization
ProfileTeekay Group Sustainability Report 2023 — Appendix

41

GRI Content Index (continued)
TOPIC
Stakeholder
Engagement•

Corruption Perception Index. Transparency International Corruption Perceptions Index.

•

GHG emissions. Data includes only CO2 emissions, which equates to approximately 99% of our Scope 1
GHG emissions.

•

Fatalities. Safety related fatalities.

•

Incidents classified as very serious. Based on SASB definition of very serious marine casualties.

•

Lost Time Injury Frequency. Sum of fatalities, permanent total disabilities, permanent partial disabilities,
and lost workday cases per one million-man hours.

•

Safety incidents. Based on SASB definition of reportable marine casualties.

Materiality and Stakeholder Engagement•

Seafarers. All permanent, active seafarers employed by Teekay, not including contractors or riding crew.

Restatements of information

No restatements to our 2022 Teekay Group
Sustainability Report•

Staff retention at sea. Based on the Intertanko retention formula.

102-49Changes in reporting

No change•

Staff retention on shore. Based on percentage of voluntary resignations.

102-50

Reporting period2023 calendar year•

102-51

Date of most recent report

April 11, 2023

Total Recordable Case Frequency. Sum of lost time injuries, restricted work cases, and medical treatment cases
per one million-man hours.

102-52

Reporting cycle

Annual•102-53

Contact point for questions
regarding the report

media@teekay.com

Women in leadership on shore. Percentage of leadership positions (Manager, Director, Vice President, andExecutive) held by women.

•

Women in leadership at sea. Percentage of leadership positions (Junior and Senior Officers) held by women.

102-54Claims of reporting in accordancewith the GRI Standards

This report has been prepared using theConsolidated Set of GRI Sustainability ReportingStandards (2019) as guidance

102-55GRI Content Index

This GRI Reference Table

102-56External assuranceThis report has not been externally assured
and the Teekay Group currently has no specificpolicy regarding external assurance of our annual
Sustainability Report

205-1

Operations assessed for risks related
to corruption

Integrity at Teekay

205-2

Communication and training
about anti-corruption policies andprocedures

Integrity at Teekay

205-3

Confirmed incidents ofcorruption and actions taken

Integrity at Teekay

305-1

Direct (Scope 1) GHG emissions

Greenhouse Gas Emissions, ESG Performance Data

305-2

Energy indirect (Scope 2) emissions

Not reported. Less than 0.1% of our total
GHG emissions

305-3

Other indirect (Scope 3) emissions

Not reported

305-4

GHG emissions intensity

Greenhouse Gas Emissions

305-5

Reduction of GHG emissions

Greenhouse Gas Emissions

305-6

Emissions of ozone-depleting
substances (ODS)

None in 2023

305-7

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

Air Quality

GRI
INDICATORDESCRIPTIONREPORT SECTION(S) AND NOTES

102-42

Identifying and selecting stakeholders

Materiality and Stakeholder Engagement102-43

Approach to stakeholder engagement

Materiality and Stakeholder Engagement102-44

Key topics and concerns raised

Materiality and Stakeholder Engagement102-45

Entities included in the consolidated
financial statements

See the annual Form 20-F reports available on theInvestors section of our website at www.teekay.com

Defining report content andtopic boundaries

Materiality and Stakeholder Engagement102-47

List of material topics

102-48102-46

AntiCorruption

Emissions

42

Report Definitions and Notes

Teekay Group Sustainability Report 2023 — Appendix

Teekay Group Sustainability Report 2023 — Appendix

43BRINGING ENERGY TO THE WORLD WITH TEEKAY SPIRIT