Teekay Corporation|

Teekay Tankers Ltd.

2022 ReportTEEKAY GROUP | Sustainability Report 2022

CONTENTS

About This Report

About Teekay

This is the 13th annual sustainability report for the TeekayGroup and covers global operations for the 2022 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.
Data and results are provided separately for Teekay
Tankers Ltd. (Teekay Tankers), along with aggregated groupwide results. In January 2022, Teekay sold its ownershipinterest in Teekay LNG Partners L.P. (Teekay LNG), which
subsequently changed its name to Seapeak LLC. Therefore,
data and results presented in this report for the 2022
calendar year do not include Teekay LNG.
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.

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 2022, oras of December 31, 2022.

Contact Us

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

Strategy

Our ESG Journey .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  11

We appreciate your comments, feedback or queries on thisreport and our performance. Please send your feedback tomedia@teekay.com

Materiality and Stakeholder Engagement.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  12

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

Governance.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  14

Engage With Us

Integrity at Teekay .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13
Teekay’s Commitment to the UNGC Ten Principles .  .  .  .  .  .  .  .  .  .  .  .  .  14

Teekay Tankers

Safety and Security.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  19
Environment.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 21

www.facebook.com/TeekayCorp/
twitter.com/TeekayCorp

CEO Letter .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  16
People and Diversity .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 17

www.linkedin.com/company/teekay/

Teekay Australia

www.instagram.com/teekaycorp

People and Diversity .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 29
Health and Security.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  29

In this report, the terms sustainability and ESG are usedinterchangeably.

Reporting Boundary

Introduction .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5Group-Wide Initiatives

Unless otherwise noted, this report includes data fromvessels and assets that are operated under Teekay’s Health,
Safety, Environment, and Quality (HSEQ) management
system. Data is excluded from vessels and assets that aretechnically managed by another company, such as certain
Teekay Tankers vessels managed by third parties. Dataalso excludes time chartered-in vessels. Data from vessels
managed by Teekay Australia are included.

Our Response to COVID-19 .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  31
People and Diversity .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 32
Promoting Responsible Ship Recycling.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  34
Supply Chain Management.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 35
Cyber Security @ Teekay.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  36
Supporting Our Local Communities .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 37
Summary of Targets and Progress.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 38
ESG Performance Data – Teekay Group-Wide Consolidated.  .  .  .  .  .  .  .  .  . 41

Appendix

SASB Reference Table .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 43
GRI Content Index .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  44
Report Definitions and Notes .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 46

2

3

ABOUT
TEEKAY

Established in 1973, Teekay is a leading
provider of international crude oil andother marine transportation services.
Teekay will celebrate its 50th anniversary
in May 2023.
Teekay Corporation (NYSE:TK) provides these services
directly and through its controlling ownership interest in
Teekay Tankers Ltd. (NYSE:TNK). The consolidated Teekay
entities manage and operate approximately 65 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 ofmarine services to the world’s leading energy companies.

also has eight time chartered-in tankers. Teekay Tankers’
vessels are typically employed through a mix of short- or
medium-term fixed-rate time charter contracts and spottanker market trading. Teekay Tankers also owns a Very
Large Crude Carrier (VLCC) through a 50 percent-owned
joint venture. In addition, Teekay Tankers owns a ship-to-shiptransfer business that performs full-service lightering andlightering support operations in the U.S. Gulf and Caribbean.
Teekay Tankers was formed in December 2007 by Teekay
Corporation as part of its strategy to expand its oil tanker
business.
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 largest owners andoperators of mid-sized crude tankers. Teekay Tankers
currently has a fleet of 44 double-hull tankers (including
25 Suezmax tankers and 19 Aframax / LR2 tankers), andVancouverFreeport
HoustonLondonHamilton
Mumbai

ManillaSingapore
CairnsPerthSydneyTeekay Around the World
4

Teekay Group Sustainability Report 2022 — About Teekay

5

FACTS AND HISTORY

Sold remaining interest in Teekay
Offshore to Brookfield

Kenneth Hvid named CEO
TNK/TIL merger

Teekay named “Shipping Companyof the Year” at the International
Seafarers’ Welfare Awards

Agreement to sell interest in
Teekay LNG to Stonepeak

Teekay and Brookfield announce
strategic partnership

Completed entire vessel newbuilding
program including delivery of thelast Arc7 LNG CarrierAwarded new contract toprovide in-service support for five
Australian Government vessels

Announced four DP2 shuttle
tanker newbuildings

Preparation for start-up operations
at Bahrain LNG Terminal

Start of green recycling of thePetrojarl Banff FPSOFirst oil and contract start-up
for the Libra FPSO
Rangrid FSO contract start-up

2015

2016

Acquired 12 modern
Suezmax Tankers

2017

2013

Launched Tanker
Investments Ltd. (TIL)2019

E-Shuttle project wins
Environmental AwardFirst MEGI LNG carrier
newbuild commenced
5-year contact with
Cheniere Energy

2014

2018

Three Heritage Class shuttle
tankers delivered to East
Coast Canada

All three Teekay companies join
United Nations Global Compact

Floating Storage Unit (FSU)
Bahrain Spirit delivered to
Bahrain LNG

Preparation for green recyclingof the Petrojarl Banff FPSO

2011

Announced JV
with Exmar LPG

Acquired equity interestin Sevan Marine ASA(Sevan FPSO)

2010

2009

Peter Evensen
named CEOLaunched
Taurus Tankers

2003

2004

2022
Completed sale of Teekay LNG to
Stonepeak
Completed green recycling of thePetrojarl Banff FPSO and commenced
green recycling of the Petrojarl
Foinaven FPSO

Bahrain LNG terminal completes
construction and commissioning

Completion of 5 “M” ClassLNG sister ships for Shell

2012

2021

Teekay safely responds to the
COVID-19 pandemic with a global
work from home policy and nomaterial impacts to vessel operations

Petrojarl 1 FPSO first oil

Acquired ALP

2020

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

2008

2007
Listed NYSE: TNK
Acquired 50% of
OMI Corp.

Acquired Maersk
LNG vessels

1973 - 2000
1973-1999
1973 Torben Karlshoej founded Teekay as aregional charterer
1976 Chartered first vessel for $3,800/day
1985 Purchased first Aframax tanker,
Golden Gate Sun
1992 Founder Torben Karlshoej passed away
1995 Listed NYSE: TK
1998 Bjorn Moller named CEOEntered FSO market
Secured first FSO contract
1999 Expanded tanker trade to Atlantic Aframax market
Acquired Bona Shipholding

6

2001Entered shuttle tanker
business with acquisition of
Ugland Nordic Shuttle Tankers
First long-term shuttle
charter with Brazil

Teekay Group Sustainability Report 2022 — About Teekay

2002

Aquired Navion Shippingfrom Statoil and 50% of
Skaugen Petro TransEntered LNG
shipping businesswith acquisition ofNaviera Tapias

2005

2006

Listed NYSE: TGP

Listed NYSE: T00

Awarded 4 RasGas
3 LNG contracts

Entered FPSO business withacquisition of Petrojarl

Teekay Group Sustainability Report 2022 — About Teekay

7CEO LETTERTHIS YEAR MARKS TEEKAY BEING 50 YEARS STRONG.
ALTHOUGH MUCH HAS CHANGED THROUGHOUT OUR
JOURNEY, THE VALUES TORBEN INSTILLED INTO THE
FABRIC OF OUR ORGANIZATION REMAIN TRUE.
—KENNETH HVID
President and Chief Executive Officer, Teekay Corporation
Our business is often shaped by macro events beyond
our control. This past year has been no exception. As
countries started to transition out of COVID-19, we faced a
new economic reality with rising inflation and central banks
responding by raising interest rates. This is now having
a major impact on businesses and households that had
become accustomed to low interest rates over the past
decade. In addition, the war in Ukraine has altered ourbusiness and the broader energy landscape.

commencement of green recycling of our final FPSO unit. In
addition, our business in Australia continues to grow, taking
on a new government contract, and effectively transforming
the business and creating a more valuable platform for
future growth. Lastly, following the sale of our gas business,
although we are a smaller organization today, our skill sets
across the Teekay Group remain strong and our collective
horsepower coupled with two strong balance sheets puts us
in a great position to continue the evolution of Teekay.

In February 2022, Russia invaded and occupied partsof Ukraine. This invasion, which in addition to having adevastating impact on the people of Ukraine, also acted asa catalyst and amplifier of energy-related and economic
factors that will likely cast a shadow for many years to come.
Although the global energy transition continues to be apriority, it has become more apparent how vulnerable anddependent the world is on fossil fuels. Specifically, global
oil demand further increased this past year, once againreaching 100 mb/d in late 2022. At the same time, theembargo on Russian oil and gas dramatically altered global
energy supply dynamics, and resulted in higher commodity
prices, higher transportation costs, and a strong increasein tanker tonne-mile demand.

Most proudly, this is an evolution that started many years
ago, and this year marks Teekay being 50 years strong.
Starting in 1973, under the leadership of Torben Karlshoej,
Teekay grew from a small tanker operator into an operational
leader and world-leading vessel owner in the conventional
shipping market, which has set the foundation for us tobecome the energy shipping leader we are today. Althoughmuch has changed throughout our journey, the values
Torben instilled into the fabric of our organization continue toremain true: a focus on the frontline seafarer, a commitment
to operational leadership, and a quest for “absolute
excellence.” These values are recognized across the TeekayGroup and will continue to guide our journey towards amore sustainable company and a more sustainable maritime
industry.

Despite the strong tanker market, there remains many
uncertainties related to the future flow of oil, and our
expectation is that the events of the past year will further
increase the global focus on energy diversification in thenear and longer-term. Therefore, Teekay also remains
focused on identifying attractive investment opportunities
as part of the global energy transition and evolving
shipping markets.
Within our own organization, this past year has also seen
many changes, and was a year of successful transition.
We have now exited the FPSO business with the8Lastly, while external factors have played a significant part inour performance outcome in 2022, our achievements would
not have been possible without every member of the TeekayGroup continuing to focus on deliverables, working to add
value, and always doing the right thing. I would therefore liketo thank everyone for their dedication and good work overthe past year, and I look forward to working with each of you
as we embark on the next 50 years together.

Teekay Group Sustainability Report 2022 — About Teekay

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!

Teekay Group Sustainability Report 2022 — 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 upholdbusiness ethics.

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 ofservicing 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 2022, we divested our interest in
Teekay LNG. This transaction provided
Teekay with greater financial flexibility
to pursue new opportunities in boththe shipping sector and in adjacentmarkets serving the growing demand
for new transportation solutions
enabling the shift to a lower-carbon
world.

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 2022 — 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 current level of stakeholderinterest in the topic and the likelihood of the topic affecting
our business objectives. Our assessment and selectionof material 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 compass 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 and operational
decisions.

Our ambitions for material issues are outlined below, and ouractions and progress towards achieving these ambitions aredescribed 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 Team to reinforce Teekay’s commitments
to integrity.

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

Reduce GHG
emissions by 50%
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 2022 — Strategy

with Integrity” training is provided to all shore-based
personnel. They also receive mandatory annual online
training on Teekay’s Standards. Our commitment tointegrity extends across our fleet, and our vessel Masters
receive compliance training on risk-relevant issues suchas 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.

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 2022, 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
2022, 100% of all shore staff scheduled for integrity training
received virtual ethics training. These results were in line with
our objective of achieving at least a 95% completion rate.
In 2023, we will continue working with the Maritime AntiCorruption Network (MACN) to reduce port corruption risks.

Training
Teekay provides multiple training modules to its personnel.
New staff receive induction training that covers Teekay’s
integrity expectations. Mandatory biennial “Doing BusinessTeekay Group Sustainability Report 2022 — Strategy

13

GOVERNANCE
We believe good corporate governanceis critical to maintaining the trust of ourcustomers, staff, partners, capitalproviders 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 performanceon 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 andCorporate Governance•

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 2022 — Strategy

15

CEO LETTEROUR JOURNEY TOWARDS OPERATIONAL
EXCELLENCE HINGES ON OUR STEADFASTCOMMITMENT TO SAFETY.
—KEVIN MACKAY
President and Chief Executive Officer, Teekay Tankers Ltd.
In previous years, I have said that the two most important
ESG issues for the tanker and broader maritime industry areto support crew welfare and to continue efforts to reducegreenhouse gas emissions. To this, I would add that vesselowners and operators must remain financially sustainable,
in order to provide our customers and the world with reliable
access to energy transportation while also providing livelihoods
and careers for our employees at sea and on shore. AcrossTeekay Tankers, we made significant progress on each ofthese goals this past year, and I’m pleased to share ouractivities and results in this year’s report.
This was also a year in which major and unpredictable events
shaped our industry. We entered 2022 with high hopes fora better year for the tanker industry and our company. We
assumed that the world would continue to recover fromthe COVID-19 pandemic, global travel would return, andtankers would recover from the financial challenges endured
throughout 2021. However, contrary to our hopes, in theearly months of 2022, lockdowns persisted in China, making
life a challenge for our Vessel Managers attending to vessel
drydockings, travel restrictions still curtailed crew changes
in many places, and vessel commercial fixtures remained at
levels generally below operating costs.
Then, as is often the case in a cyclical industry, geopoliticalevents took on a new dimension, and with it came a significant
change in trade patterns that upended tanker markets. Rates
for mid-sized tankers increased through the rest of the year
to unprecedented levels, and in the final quarter of 2022,
Teekay Tankers reported its highest ever quarterly adjusted
net income. The sharp market improvement in the second halfof 2022 enabled us to significantly strengthen our balance
sheet, and moving into 2023, we believe Teekay Tankers is
ideally positioned to continue benefiting from the strong tanker
market, generating significant free cash flow, and creating
lasting value for our shareholders.
Although it would be easy to focus only on freight rates,
especially when they are at such high levels, I much prefer
to focus on the good work put in this past year across theorganization to further strengthen our company on several
ESG fronts. Our efforts to prepare our fleet for compliance with
the new Carbon Intensity Indicator (CII) are well underway,
16

and we are working to ensure that all our vessels will be fullycompliant by the enforcement date at the end of 2023. We arealso working with ZeroNorth and DNV to assist in building a
CII Predictor Tool that can be used by our commercial teams
to position and trade our vessels in an optimal way to enhance
our CII ratings. Separately, to reduce our marine environmental
impact, we have now installed ballast water treatment systems
on 32 vessels in our fleet, and plan to install the remaining
systems across our fleet in 2023 and 2024 in full compliancewith IMO timelines. In addition, we have continued to makegood progress in our ongoing efforts to improve our vessel
fuel efficiencies through the adoption of a wide array of energy
saving devices and equipment ranging from new lower friction
paint treatments to main engine modifications. We have seen
good success in piloting several new and exciting projects thatwill further enhance the fuel economy of our fleet.
I continue to be proud of our ongoing efforts to support
employee wellness, equality, and diversity in the shipping
industry. In 2021, we participated in the shipping industry
Diversity Study Group and have since signed on as members
from the beginning of 2022.
Unfortunately, not all performance was acceptable this past
year. Two of our colleagues were injured, resulting in two Lost
Time Injuries (LTI). Let us not forget that our journey towards
operational excellence hinges on our steadfast commitment tosafety. To address this, we are leveraging our past experiencesand expanding our Fleet Training Officer program to provide
enhanced onboard safety training to all our vessels. The
program encompasses safety audits and inspections, fosteringa stronger safety culture, and scrutinizing the correct usageof personal protective equipment. These measures aim tominimize the risk of injuries and foster a safer and moresustainable work environment for our colleagues at sea.

PEOPLE AND DIVERSITY
At Teekay Tankers, our vision is to be
the world’s leading tanker brand and wetake pride that the Teekay logo on ourfunnel is an industry-respected symbolof quality. As a true owner, we manage
our vessels directly through in-house ship
management, employing over 1,600 men
and women aboard our fleet.

We have adapted our recruitment strategy in recent years
with a focus on female maritime university graduates andsponsorship of government and industry female interns andmanagement trainees. Since 2021, we have engaged fivegovernment sponsored interns (three female and two male)and employed two female maritime studies graduates.
We are also active in government and industry forums
involving employee engagement, flexibility, wellness, genderequality and diversity in shipping. In 2021, we participatedin the shipping industry Diversity Study Group and signed
on as members at the beginning of 2022.

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.

Finally, as I reflect on the year, I want to thank each and every
member of the Teekay Tankers team for putting in anothergood year and working to make Teekay Tankers a better,stronger and more capable tanker company. I am confident
that 2023 will be an even better year for our company, and I
look forward to working with you as we continue our Teekay
journey into the next 50 years.

Teekay Group Sustainability Report 2022 — Teekay Tankers

Teekay Group Sustainability Report 2022 — Teekay Tankers

17

SAFETY AND SECURITY

2022 Teekay Tankers Employee Facts
Poland 14

Employee Relations:

14 Malyaysia
12 Vietnam

Croatia 15
Other Europe 28

Sea staff retention

97.7% Officers
97.1% Ratings

3 Other

China 62
Russia 72

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

Seafarers by
Nationality

100%
Sea staff covered bycollective bargaining
agreements

India 641

813

Philippines

8.7 years
Average durationof sea staff employment

Social Diversity:

Shore Staff

Women in leadership134

In the past year, we made further improvements to oursafety management system, such as converting to the Lovoy
format for more concise procedures and reducing the sizeof our system. We also implemented new initiatives like
automated management meetings and an integrated audit
checklist. We successfully trained our personnel using virtual
reality (VR) to improve our lock-out-tag-out procedures.
Our Fleet Training Officer program, consisting of threeseasoned Masters and two Chief Engineers, remains
instrumental in reinforcing onboard training. Our objective
is to achieve zero incidents and cultivate an inclusive andempowered team.
Our approach to safe operations encompasses all aspects,
including maintaining a system aimed at zero incidents,
introducing new safety initiatives and campaigns, andfostering personnel development. By continuously addressing
unsafe acts and conditions through our electronic hazard
reporting program, we are leveraging technology to break theerror chain before an incident occurs.
In 2022, four navigational incidents2 occurred and werereported in our tanker fleet, which included three minor
allisions and one soft-bottom contact. Two further Lost Time
Injuries (LTI) were reported. In each case, the incident was
thoroughly investigated. The lessons learned from incidents
have been incorporated into our safety management
procedures, and crews have received comprehensive
training to ensure their understanding and implementationof the procedures.

Health and Safety Performance—Teekay Tankers
LTIF = Lost Time Injury Frequency

16% on shore

125

1.6% at sea

FemaleMale

SafetyTRCF = Total Recordable Case Frequency
HRCF = Health Repatriatian Case Frequency

1.8

1.64

1.6
1.4

1,658

Sea Staff

Male

16
FemalePersons not fromhigh-income countries1
in leadership at sea

94%

Based on the World Bank Country and Lending Groups.

1.07
0.90

1
0.8
0.6
0.2

2

2020

In 2023, we are also planning to implement electronic
logbooks across the fleet following a successful pilot
project. Further steps to strengthen our safety culture will
be communicated through sharing of information and bestpractices in our quarterly Teekay Tankers bulletin, the“TNK SPOT”. Lastly, senior leadership engagement withour colleagues onboard is vital, and continuing in 2023, we
will ensure fulfillment of our duty of care for our seafarers
and support greater leadership from everyone onboard andon shore in Teekay Tankers.

0.23

0.11

0.10

1.06

0.85

0.4
0

1

1.19

1.2

To further address safety, we are leveraging our pastexperiences and increasing our Fleet Training Officer
program to provide onboard safety training to all our vessels.
The program encompasses safety audits and inspections,fostering a safety culture, scrutinizing the correct usage of
personal protective equipment, and regular updates of oursafety policies and procedures to ensure their relevance.
These measures aim to minimize the risk of injuries andfoster a safer and more sustainable work environment forour colleagues at sea.

2021

2022

Based on SASB definition of reportable marine casualties.

Teekay Group Sustainability Report 2022 — Teekay Tankers

19

ENVIRONMENTGreenhouse Gas Emissions
Teekay Tankers continues to invest in energy efficiency. Our
entire fleet is now coated with high-performance silicone
hull paints, and we continue to install Mewis Ducts on our
ships, which helps reduce drag and improve propulsion
efficiency. Closely monitoring and optimizing vessel
efficiency remains a priority. We use SeaTrend to monitor
hull efficiency with real-time data, and Tekomar to monitor
and optimize machinery efficiency.
In 2022, we continued rolling out proven energy efficiency
measures across our fleet, while also identifying andsuccessfully pilot-testing new innovations that will be
implemented in 2023. Overall, these efforts have helped
to significantly improve our emissions performance. Since
2008, emissions intensity has decreased 26% in our
Suezmax fleet, and 13% in our Aframax fleet. The smaller
reduction in our Aframax fleet is due to a larger portionof our Aframax fleet engaged in ship-to-ship lightering
services in recent years, which results in higher EEOI
values compared to conventional trading patterns.

Security
The International Ship and Port Facility Security (ISPS)
Code was instituted by the IMO in December 2002 due
to increasing global concerns regarding terrorism. The
aim of the ISPS Code is to bolster maritime security bydetecting security risks to ships and ports, and by requiring
the development of security plans and other measures toprevent such threats. Our fleet currently adheres to therequirements of both the ISPS Code and the U.S. Maritime
Transportation Security Act of 2002.
At the heart of our security program is a commitment toconstantly monitor global maritime security risks and prepare
our vessels and crews to effectively respond to any potential
threat. Due to the ever-changing global security landscape,each vessel in our fleet underwent a comprehensive ship
security assessment in 2022 and Ship Security Plans were
evaluated to ensure they were suitable and aligned with theassessments. Global security updates are communicatedto all vessels through weekly security summaries, and on aquarterly 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
2022 with the active participation of all vessels and the IFC(Singapore Navy). The lessons learned from this exercise
have been shared and will be utilized in the event of a real
emergency.

Air Quality

Security Performance

Vessel Security Incidents
Vessel security-related non-conformancesin external audits, or security-related
Port State Control (PSC) detentions

Teekay Tankers’ own goals align with the IMO’s ambition,
which is to reduce the energy intensity of our fleet by atleast 40% by 2030. We have made good progress andare well-positioned to comply with the Energy Efficiency
Existing Ship Index (EEXI) requirements in 2023. We also
recognize that ongoing efforts will be needed to achieve
our 2030 target. In the years ahead, we will continue totest and implement successful energy efficiency initiatives
across our fleet and will continue to investigate newtechnologies to reduce emissions.

2021

2022

0

0

0

0

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). In addition, there were zero
nitrogen oxide (NOx) non-compliances in our fleet in 2022.
We have also partnered with ESI Group (Environmental
Ship Index) and are submitting our emission data forindustry benchmarking as well as monitoring our vessels
to ensure they exceed current International Maritime
Organization emissions reduction standards.

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

100%

12

Teekay Group Sustainability Report 2022 — Teekay Tankers

93%

12.33

10

11.48

90%

91%

87%

11.10

11.17

10.76

8
6
4
2
0

2008

2019 2020 2021 2022

Energy Efficiency Operational Indicator (EEOI)
Suezmax Tankers
gCO2 / tonne-mile
10

Percent of 2008

100%
8.87

8

83%

78%

7.39

6.88

6

74%

74%

6.58

6.56

4
2
0

2008

2019 2020 2021 2022

Average Annual Efficiency Ratio (AER)OIL TANKERS

2020

2021

2022

Aframax

5.07

5.13

5.20

Suezmax

3.49

3.49

3.42

Tanker Fleet Sulfur Oxide Emissions (SOx Metric Tons)
25,00020,00019,99819,19515,00010,0005,000
020Percent of 2008

2018

2019

Teekay Group Sustainability Report 2022 — Teekay Tankers

3,096

3,177

2,830

2020

2021

2022

21

Energy Efficiency Existing Ship
Index (EEXI) and Carbon Intensity
Indicator (CII)
In 2021, the IMO Marine Environment Protection Committee(MEPC) published the final requirements for compliancewith the Energy Efficiency Existing Ship Index (EEXI) and theCarbon Intensity Indicator (CII). The EEXI will require a 20%
improvement in vessel design efficiency for tankers froma baseline introduced in 2013. After analysis performed
with each of our Classification Societies, we have identified
that implementing an engine power limitation (EPL) for
our vessels is the most cost-effective manner to achievethese requirements, and we are planning for EPL hardware
installations in 2023. The power limitation will have anegligible impact on the speed of our vessels and will stillallow for maximum engine power to be used in case of an
emergency. All documentation pertaining to EEXI / CII andEPL applications has been completed with Class Approvals.
The onboard EPL application will be applied and inspectedby Class bodies during the vessels’ next class surveys. We areworking to ensure that all our vessels will be fully compliant
by the required enforcement date at the end of 2023.

Separately, discussions are ongoing at the IMO for the
adoption of several CII correction factors to account for
certain unique tanker operations that necessarily increase
fuel consumption, such as cargo heating and ship-to-ship(STS) operations. We believe that the application of suitablecorrection factors will reduce recorded tanker emissions by
about 5%, and further reductions in our vessels’ emissions
can be achieved through proper operational planning,
usage, and vessel positioning.
We are also working with ZeroNorth and DNV to assist
in building a CII Predictor Tool that can be used by ourchartering and commercial teams to position and trade
our vessels to ensure acceptable CII ratings.

Tanker Fleet Energy Efficiency Initiatives in 2022-2023
Mewis Ducts

A pre-swirl duct, installed on the majority of our vessels, helps to significantly
reduce emissions.

5 – 7%

FuelOpt

The system assists to automatically optimize fuel consumption by maintaining
a steady shaft power. Following successful testing on four vessels in 2022, thesystem is planned to be installed on 15 vessels in 2023.

3-5%

Ultrasonic
Cleaning

An ultrasonic propeller cleaning tool has now been installed on 24 vessels,
which helps to keep the propeller blade surface free of fouling.

1.5%

ShipShave

A semi-autonomous hull cleaning tool that can be used during sea passages tokeep a silicone-coated hull free of fouling. Following our successful testing incoordination with Hempel Paint, the tool will be installed on another four
vessels in 2023.

3-5%

Variable
Frequency
Device

VFDs reduce the operating power and electrical load of onboard machinery.
Installation is now complete on 27 vessels. No further installations are planned
due to the age of remaining vessels.

Up to 1%

Silicon Hull
Coatings

In 2021, a study with DNV was undertaken to estimate the benefits of lowfriction silicone hull coatings compared to traditional anti-fouling. Currently all
Teekay Tankers vessels have been coated with low-friction silicone paints.

2% over 5-year
docking cycle

Main Engine
Autotuning

Following the successful upgrades on Rio Spirit to improve main engine
efficiency, the project has been extended to one more ship in 2023.

2%

Low Leakages
ValvesInstallation of low leakage valves in the main engine cooling water system
reduces steam consumption in port and will be extended to five vessels during
their drydocking in 2023.

2% in port

BoilerOptimization

In 2021, we identified a vessel to pilot test continuous low-load operation of theauxiliary boiler, which will save fuel by avoiding frequent boiler start-stops.

1% fuel savingsin portSeaTrend

The SeaTrend hull and propeller performance monitoring and management
tool is now in use on 44 vessels.

Improved
monitoring

DigitalFlowmeters

Digital flowmeter installation has been completed on 43 vessels.

Improved
monitoring

Voyage, Routeand Weather
optimization

Work is in progress for testing a suitable platform that would enable further
voyage, route, and weather optimizations for our vessels.

5 to 7% savings

Marine Ecological Impacts
We have installed Ballast Water Treatment Systems (BWTS)
on 32 vessels in our fleet and the transition to ballast
treatment has been effective, without any major issues orconcerns during installation or operations. We plan to installtreatment systems on another five vessels in 2023 andapproximately seven vessels in 2024, which will complete
the installation of treatment systems across our fleet in fullcompliance with IMO required timelines.

EXPECTED SAVINGSPER VESSELINITIATIVESIN 2022, THERE WERE NO OIL SPILLSIN THE TEEKAY TANKERS FLEET.

22

Teekay Group Sustainability Report 2022 — Teekay Tankers

Teekay Group Sustainability Report 2022 — Teekay Tankers

23

Teekay Tankers SASB DisclosuresTOPIC

ACCOUNTING METRIC

UNIT

2022

2021

2020

Greenhouse
Gas
Emissions

GHG emissions

Metric tons

1,149,929

1,206,936

1,351,023

Total energy consumed

Gigajoules (GJ)

14,608,731

15,292,619

17,154,608

Percentage heavy fuel oil3

Percentage

77%

77%

78%

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) emissions

Metric tons

22,0484

30,95130,946

Sulfur Oxide (SOx) emissions

Metric tons

2,830

3,177

3,096

Particulate Matter (PM) emissions

Metric tons

1,163

1,400

Not available

Fleet implementing ballast treatment

Percentage

80%

52%

15%

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

0.23

0.11

0.10

Marine incidents

Number6

3

6

Incidents classified as very serious

Percentage

0%

0%

0%

Conditions of class

Number3

2

0

Port state control deficiencies

Number12

13

10

Port state control detentions

Number0

0

0

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

37

36

40

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

1,674

1,960

2,011

Vessels in total fleet

Number45

48

54

Vessels managed by Teekay Tankers

Number40

41

46

Deadweight tonnage

Thousand DWT

5,433

5,675

6,111

Total distance traveled by vessels

Nautical miles

2,081,789

2,179,847

2,449,506

Operating days

Number15,394

16,684

17,694

Vessel port calls

Number

1,947

2,093

2,199

TEEKAY
AUSTRALIA

Heavy Fuel Oil and Light Fuel Oil
For 2022, 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.

3
4

24

Teekay Group Sustainability Report 2022 — Teekay Tankers

25Vessels Supported by Teekay Australia

ADV Reliant

Coral Knight
Coral Knight is an emergency towage vessel (ETV), andthe only ETV of its type in Australia. It operates in theParticularly Sensitive Sea Areas (PSSA) of the northern
Great Barrier Reef and Torres Strait and is equipped torespond to maritime incidents such as search and rescue
or oil pollution response as a first strike vessel.

MV Sycamore
Sycamore is a multi-role aviation training vessel (MATV), andits primary role is to support maritime aviation training forhelicopters used by the Australian Defence Force. Its further
capabilities are torpedo and mine recovery, dive support,target towing, consort duties, and unmanned aerial vehicle
support.

ADV Ocean Protector
Ocean Protector is operated under the Royal Australian Naval(RAN) Flag (White Ensign) by a civilian Teekay crew. The
vessel provides support to Australia’s civil maritime border
operation – ‘Operation Sovereign Borders’. The vessel carries
an interagency Mission Crew, which may consist of membersof the Australian Defence Forces (ADF), Australian Border
Force (ABF), and Australian Government Officials.

MV BesantBesant is an Escape Gear Ship (EGS). The primary purposeof the vessel is to deploy specialist onboard equipmentused to locate disabled submarines, establish the conditionof submerged vessels, and facilitate preparations for anunderwater evacuation.

The ADV Reliant is operated under RAN Flag (White Ensign)
by a civilian Teekay crew. The vessel provides support toAustralia’s Pacific nation partners in conjunction with direction
from Australia’s International Policy division of the Australian
government. The main role of the vessel is to provide support
to Australia’s Humanitarian Assistance and Disaster Response
efforts in the Southwest Pacific.

MV Stoker
Stoker is a Rescue Gear Ship (RGS). The vessel’s primaryrole is to provide a continuously available and sustainablecapability to rescue personnel in the event of a submarine
becoming distressed or sinking. The ship is designed torescue submariners using submersible equipment andproviding initial medical treatment.

MV Mercator 1
Mercator 1 is a modified Pacific Class patrol boat basedin Sydney. Its primary role is to support Sydney-basednavigational training in conjunction with the RAN Navigation
faculty. As a smaller coastal vessel, the Mercator 1 plays a
key role in training RAN sailors in coastal navigation, shiphandling and watch keeping procedures.

FPSO Ningaloo Vision
Teekay Australia provides an Australian crew for theoperation and maintenance of the Ningaloo Vision Floating
Production Storage and Offloading (FPSO) vessel. In
2022, at Santos Directors’ Environment, Health, Safety,
and Sustainability (EHSS) Awards, Teekay Australia washonored with the Contractor of the Year award.

ABFC Ocean Shield
Ocean Shield became the first RAN vessel with a full civiliancrew and technical management by Teekay in Australia.
Ocean Shield operates in the Border Force fleet to carry out
maritime enforcement activities and counter civil maritime
security threats in the northern waters and Southern Ocean
around Australia. Teekay provides various operational andAustralian crewing services for the vessel.

26

Teekay Group Sustainability Report 2022 — Teekay Australia

ABF Bay Class Patrol Vessels
Teekay provides in-service support for maintenance of
two Australian Border Force Bay Class Cutters called the
Roebuck Bay and Storm Bay out of the Norship yard in
Cairns, Queensland, Australia. Through the provision ofthese services, Teekay has greatly enhanced the operational
availability of both assets.

Teekay Group Sustainability Report 2022 — Teekay Australia

27

PEOPLE AND DIVERSITY

Teekay Australia is a pre-eminent marine
services company. Our key capabilities aremarine operations, supply, maintenance andengineering support, asset management,
drydocking, and Australian crewing andtraining. Today, Teekay Australia forms an
integral part of the global Teekay operationsin the Asia-Pacific region.
In 2022, Teekay Australia celebrated 25 years operatingin the Australian maritime environment. During this time,
Teekay Australia has grown to provide a range of marine
services and has developed a significant level of expertiseand experience to support the requirements of various
clients, including the Commonwealth of Australia.
In 2021, Teekay Australia was awarded an Australian
government contract called the ‘Defence Marine Services
Support Program (DMSSP) – Service Package 2’ to manage
five defence support vessels. The vessels managed
through this contract are the Ocean Protector, Sycamore,
Besant, Stoker, and Mercator 1. In 2022, the vessel Reliant
was added to this contract and into Teekay Australia’s
management.
In 2022, Teekay Australia launched its new three-year HSSE
and QA strategy with key focus areas and strategic objectives.
Each objective is underpinned by annual focus areas andassociated initiatives, which are implemented annually
through the Balanced Score Card via our operational KPIs.

Managing such a varied fleet means that a one-size-fitsall approach is rarely suitable and therefore each aspectof ship management needs to be evaluated, risk-assessed
and managed individually to suit the vessel’s unique profile.
Teekay Australia continues to grow the organizational
capabilities and maturity to meet customer requirements
underpinned by the Operational Excellence philosophy ineverything we do.

Other notable activities and accomplishments in 2022 include:•

A helicopter winching exercise and towing exercise by
Coral Knight in the Torres Strait area•

Renewal of the contract with Santos to provide operationand maintenance crewing services for the FPSO Ningaloo
Vision, which Teekay has been providing since 2012•

Relocating the Teekay Sydney office closer to the central
business district and our clients, after more than 20 years
at our previous location•

Completing five drydockings and a number of extended
maintenance periods•

Being awarded Contractor of the Year at the 2022 Santos
Directors’ Environment, Health, Safety and SustainabilityAwards, for crewing work on the Ningaloo Vision FPSO

HealthSafetyQuality Assurance

A mentally andphysically healthy
workforce• Psychologically safe workplace

Zero harm• Reduction in recordable
personal incidents

User-friendly
systems and effective
governance aiding inoperational excellence• Raise management systemcompliance through training
and raising awareness•

Safer operations•

Enhanced warehouse safety

Security•

Safety through leadership

Protect people,
information, and assets• Personnel security

Environment

•

•

28

Mental and physical well-being

Prevent pollution andreduce environmental impacts• Strive for zero environmental incidents

Improved cyber security
training and tracking
Safeguard information and assets•

Minimize environmental impacts•

Demonstrate our commitment tosustainability

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

Teekay Australia Employee Facts

Teekay Australia HSSE & QA Strategy•

Engagement with our staff is important in living up to ourcore value of Teamwork. To support this, Teekay Australia
held its 2022 Seafarer Leadership Conference, attended
by sea staff of various ranks, as well as some office staff.
Due to COVID-19, it had been three years since our lastface-to-face conference, and in that time, Teekay Australia’s
business had changed significantly. Enhancing Operational
Leadership was the main focus of the conference, and it
was great to see the positive energy that the attendees
demonstrated throughout the conference.

•

Ensure assurance program
sustainability and suitability
as business needs change•

Process simplification andimprovements

Teekay Group Sustainability Report 2022 — Teekay Australia

Shore Staff

40

Male

In the past year, our shore offices in Sydney, Perth, andCairns have grown significantly. We currently employ 62
shore employees, a 35% increase from 2021. We also
employ 227 permanent Australian seafarers.

HEALTH AND SECURITY
Health and Well-being
Teekay Australia recognizes that our success is directly tied
to the well-being of our employees. Teekay is committed toaddressing the physical, mental, and emotional health needsof its employees and to provide them with the resources
they need to effectively manage workplace challenges andpressures.
We recognize the strong relationship between physical andmental health, which is why in 2022 we partnered withgyms near our offices to trial physical wellness programs.
In 2023, we have several programs planned for both ouron shore and offshore employees, including a pilot physicalwellness program on the Stoker aimed to promote wellness
and create healthy competition and excitement surrounding
health and fitness.
While COVID-19 restrictions have eased over 2022,
we acknowledge the continued strain it has put on our
employees and their families. Teekay Australia took every
opportunity to highlight the availability of our Employee
Assistance Program (EAP) to all staff and their immediatefamilies. Teekay Australia’s EAP is a free and confidential
helpline available to all Teekay Australia staff 24/7, 365 daysa year.

22

FemaleMale

209

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 & Conflict
Management training was rolled-out in 2022 to all shore
staff, and we also started the rollout to our ships.

Sea Staff

18
FemaleTeekay Group Sustainability Report 2022 — Teekay Australia

29

GROUP-WIDE
INITIATIVESOUR RESPONSE TO COVID-19
Throughout 2022, the shipping industry
continued to face unique challenges
related to the ongoing COVID-19
pandemic. Staying true to our SPIRIT
values, we placed significant effort inunderstanding and addressing the potential
impacts to our global employee populationand their families, and our business
continuity plans remain firmly in place
to minimize the risk of infection onboard
and ashore.
Most of the COVID-19 restrictions around the world haveeased. However, the risk of infection remains, and therefore
we continue to implement various precautions, including
pre-joining testing.

30

With the increased availability of vaccines, we haveencouraged our seafarers to be fully vaccinated prior tojoining a ship. Some seafarers have also now received
booster doses. As of December 2022, 100% of ourseafarers are fully vaccinated with two doses or more.
On shore, Teekay implemented a global hybrid work model
to support employee flexibility that allows working bothfrom home and in the office. To support the success ofthe new model, local workplace flexibility guidelines were
implemented. While working in the office, our priority isensuring a safe working environment for all employees.
COVID-19 protocols and workplace safety standards wereadopted in all offices, and regularly updated to meet thechanging local government legislation and guidance. In
addition, we provided support to employees for vaccinations,
testing, and virtual healthcare.

Teekay Group Sustainability Report 2022 — Group-Wide Initiatives

31

PEOPLE AND DIVERSITYA Diverse and Inclusive Workforce
We are proud that our long history has represented avaried set of experiences, perspectives, and cultural
backgrounds and we are proactive in promoting equalcareer advancement opportunities for all our employees.
Over the past few years, we have gained valuable insights
on our continued journey to promote a diverse and inclusive
workplace. We believe that improving gender balance at theleadership level facilitates better decision making, increases
innovation, and improves overall productivity. We continue
to see women from our advancement of female leaders pilot
program accept increased responsibilities in theirrespective roles.
In 2023, we will continue to ensure employees feel part ofan organization that welcomes differences, provides equal
opportunities, and fosters a sense of belonging for everyone.

Developing Future Leaders
Teekay and the Teekay Foundation have sponsored 42
students since grants started in 2018.

Teekay Group Employee Facts
2 Bermuda

India 1885

USA 21

Canada22

Our second cohort of 12 students have completed theirthree-year academic requirements, which included practicaltraining through a combination of simulators, laboratories,
and mentoring to enhance their knowledge and address
in-person lessons. They are now ready for deployment
as cadets for shipboard training onboard Teekay and ouraffiliated companies’ vessels for shipboard contracts.

UK andEuropeShore Staff
by Country

59

Australia

Respecting Labour and Human Rights
At Teekay, we treat people fairly and respect labour andhuman rights. We ensure that all our business partners andsuppliers follow the same principles. We take all labour andhuman rights allegations seriously and address all suchconcerns that are raised regarding our policies.

76

85

Philippines

Singapore

In 2022, zero allegations were raised. In 2023, we will focus
on increasing employee awareness on labour and humanrights policies and programs.

Supporting Health and Well-being
Health and well-being continue to be an important focus
for Teekay, both for our seafarers and for those employedin our offices globally. Throughout 2022, we provided shore
employees with several programs, educational resources,
and service offerings to support their holistic well-being
including physical, mental, social, and financial wellness.
In addition, we continue to operate in a hybrid work
environment which allows for greater workplace flexibility
and work-life balance in support of employee well-being.

Our first cohort of 15 students has started to embark on
their shipboard cadetship journey. Most of them are in thesecond phase of their training and have acquired learningand hands-on experience on their assigned ships. Somehave seen great success and have achieved recognition attheir respective companies during their first onboard phase.

Finally, our third cohort of 15 sophomores are proactive intheir school’s academic and co-curricular activities. They are
immersed in activities that enhance them holistically suchas sailing, coastal clean-up, community extended activities,
school publications, leadership, soft skills enhancement
training, physical fitness, and mental health webinars.
In partnership with Teekay and the Teekay 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.

Teekay Shore Staff

190
Male

178

Female19%
Women inleadership
positionson shore

32

Teekay Group Sustainability Report 2022 — Group-Wide Initiatives

Teekay Group Sustainability Report 2022 — Group-Wide Initiatives

33

PROMOTING RESPONSIBLE SHIP RECYCLING
In 2009, the IMO adopted the Hong Kong
International Convention for the Safe andEnvironmentally Sound Recycling of Ships,
which ensures that health, safety, andenvironmental risks are minimized as muchas possible throughout every part of therecycling process.

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.

Not only do we support the Hong Kong Convention—but webelieve 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 werethe eighth leading shipowner to join the SRTI.
In 2021, the Petrojarl Banff FPSO commenced green
recycling at M.A.R.S. Europe’s EU-approved facility in
the Port of Frederikshavn, Denmark. Before selecting
the M.A.R.S facility, Teekay engaged DNV to carry out
an independent assessment of the facility against therequirements of the EU Ship Recycling Regulation andthe Hong Kong Convention. In November 2022, M.A.R.S.
completed the successful recycling of the Petrojarl
Banff FPSO.
Our final FPSO, the Petrojarl Foinaven, was towed to the
M.A.R.S. facility in October 2022 to commence green
recycling. Detailed mapping and cleaning of the installation
is in progress and recycling is expected to be completed inearly 2024.

SUPPLY CHAIN MANAGEMENTAs an organization that firmly believes ingood ethical practices and doing businesswith integrity, it is important for Teekay
to conduct the necessary due diligence
to ensure we work with like-minded
companies and in a manner that contributes
to society and the environment we work in.
In support of these beliefs, we set a goal of directing at least
80% of operations-related procurement spending towards
our contracted suppliers. During 2022, we achieved this goalwith 80% of spending directed to contracted suppliers. In
recent years, our procedures relating to vendor onboardingand evaluation were updated to incorporate our automatedthird-party due diligence system, Securimate, which allows
us to screen for business ethics compliance risks, such as

34

Teekay Group Sustainability Report 2022 — Group-Wide Initiatives

sanctions, bribery, and human rights violations. Since thelaunch of this system, approximately 7,000 third parties
have been successfully approved. In addition, our vendor
performance group conducts periodic re-evaluations ofsuppliers and we completed over 240 vendor re-evaluations
during 2022.
In 2021, we also implemented a three-year audit plan
concentrating initially on critical high-value suppliers. The
target was to audit ten suppliers each year with a particularfocus on sustainability, supply chain control, and compliancewith appropriate legislation. In 2022, we met our goal,
having completed 11 audits.

Teekay Group Sustainability Report 2022 — Group-Wide Initiatives

35

CYBER SECURITY @ TEEKAY
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.

and advanced cyber risk assessment and penetration test,
and also conducted cyber response exercises for both
vessels and shore.

Community Partners
Supported in 2022

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

•

People and Families in Need•

Cyber hygiene

Save the Children
Dignity Mama
• Race Against Cancer• Breast Cancer Foundation• Hope Initiative Alliance Migrant Workers• Epworth Community Services• Cerebral Palsy Alliance Singapore• Let’s Take a Walk - Raleigh Singapore• Houston Food Bank
• Women’s Center of East Texas• Muscular Dystrophy Association• Young Focus Philippines• Back to School Community Outreach• Trek4Kidz• Alma Doepel Foundation• Young Diggers• Lady Cubitt Compassionate
Association• Variety - the Children’s Charity• Covenant House• Greater Vancouver Food Bank
• Canadian Red Cross Ukraine Relief• Canadian Red Cross BC Flood
Response• Backpack Buddies• Trussell Trust Food Bank
• Histiocytosis Association• Eliza DoLittle Society•

Training and awareness

Seafarer Support•

Professional skills
and qualifications•

Written procedures•

Authorization control•

Physical security

In 2023, we will further enhance our cyber security
awareness program and roll out new solutions in our cybersecurity roadmap.

te ctCyber Security
Framework

nd

P ro

Re
R esp oIn 2022, 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, andan in-house cyber security newsletter. In addition, this past
year, we engaged a third-party to conduct a comprehensive

Ide
nti

ver
co

fy

To 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.

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

Cornerstones of our Cyber Security Program
Process

People36

SUPPORTING OUR
LOCAL COMMUNITIES•Management systems•

Policies and procedures•

Handling of vendor/third parties•

Drills and audit regimes

Technology

We partner with charitable organizations that embody Teekay’s SPIRIT values and
we encourage our employees to become directly involved. All shore employees
are provided with up to three paid volunteering days each year to support local
community and charitable activities.
In 2022, through various efforts in each of our offices, we supported more than
30 charities and community organizations around the world.

•

Seamen’s Church Institute• Bermuda Sloop Foundation• Mission to Seafarers• Coast Guard Foundation••

Antivirus•

Firewalls•

Intrusion detection systems•

Software updates and patches

Marine Environment•

Testing•- Functional testing- Vulnerability scanning- Penetration testing•

Teekay Group Sustainability Report 2022 — Group-Wide Initiatives

Waterways Watch Society
Tangaroa Blue Foundation• Nature Trust of British Columbia• Vancouver Maritime Museum• Foundation for the Global Compact• Royal Institution of Naval Architects• Clear Seas Indigenous InternshipTeekay Group Sustainability Report 2022 — Group-Wide Initiatives

37

SUMMARY OF TARGETS AND PROGRESSSOCIAL AND GOVERNANCE

SOCIAL AND GOVERNANCE
Teekay’s Ambition: Personal Safety

Teekay’s Ambition: Workforce Diversity

Teekay’s Ambition: Vessel and Cyber Security

Teekay’s Ambition: Business Ethics

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

Further increase gender and national
diversity within Teekay

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

Manage all our business activities
with integrity and do what is rightTargets

Targets

Targets

Targets
Zero fatalities• Total Recordable Case Frequency (TRCF) < 1.0• Safety performance within the top quartile of industry
benchmarks••

Zero fatalities•

TRCF of 2.52 in 2022. Target not met. Twenty-fourrecordable cases occurred in 2022, compared to ourtarget of ten cases or fewer

Actions for 2023
Implement electronic record-keeping logbooks across the fleet• Promote the vision to achieve “Goal Zero”• Ensure senior leadership engagement with our seafarers•

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

Teekay Tankers engaged one female and one male internin 2022

Actions for 2023•

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

•

Continue to support and sponsor female maritime
university graduates and interns

Teekay’s Ambition: Human and Labour Rights

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 2022•

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

Sea staff retention of 97.4%•

Shore staff retention target not met. Retention dropped
to 85%, due to employee resignations following
organizational changes and a more competitive job market•

Pay equity efforts are ongoing. Annual compensation reviews
include internal and external equity evaluations

Actions for 2023
• Ensure employee awareness of labour and human rights
policies and programs•38

Due to organizational changes, Teekay’s diversity strategy
was not developed as planned in 2022. Instead, ourgoal in 2023 is to continue building awareness to ensure
employees feel part of an organization that supports
diversity.

••

Respect and support all internationallyproclaimed human rights•

Zero vessel security incidents••

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

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

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

Zero vessel cyber security incidents•

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

Results in 2022

Results in 2022•

Develop a diversity strategy and target in 2022 to further
promote gender and national diversity within Teekay•

Results in 2022
Results in 2022•

All targets achieved in 2022•

There were no vessel security or cyber security incidents
in 2022

Actions for 2023—Ship Security•

24/7 monitoring of security risk situation and guidance
to vessels and crew•

Continued participation in the Intertanko Security
Committee•

All targets achieved in 2022

Actions for 2023•

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 2023—Cyber Security•

Further strengthen cyber safe culture program•

Roll-out new solutions in our cyber security roadmap

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 2022•

Target achieved in 2022. Group-wide HRCF of 1.05•

Launched Wellness Days for shore-based employees inselect locations

Actions for 2023•

Continue to support, communicate, and educate on
employee health and wellness programsContinue ongoing pay equity efforts through internal andexternal equity evaluations
Teekay Group Sustainability Report 2022 — Group-Wide Initiatives

On track

Needs attention

On track

Teekay Group Sustainability Report 2022 — Group-Wide Initiatives

Needs attention

39

SUMMARY OF TARGETS AND PROGRESSESG Performance Data – Teekay Group-Wide Consolidated5,6
TOPIC

ACCOUNTING METRIC

UNIT

2022

2021

2020

ENVIRONMENTGreenhouse
Gas
Emissions

GHG emissions

Metric tons

1,166,344

4,779,487

4,931,052

Total energy consumed

Gigajoules (GJ)

14,903,181

74,105,536

76,333,279

Percentage heavy fuel oil

Percentage

76%

32%

33%

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

22,7337

66,17399,569Teekay’s Ambition: Climate Change

Teekay’s Ambition: Spills and Pollution

Achieve the IMO greenhouse gas ambitions
and support the global energy transition

Zero spills and full compliancewith regulations

Targets

Targets••

40% reduction in fleet-wide greenhouse gas emissions
per tonne-mile by 2030, compared to 2008
50% reduction in total fleet greenhouse gas emissions
by 2050•

Zero spills greater than one barrel•

Zero ballast non-compliances

Sulfur Oxide (SOx) emissions

Metric tons

2,846

5,515

5,144

•

Zero SOx and NOx non-compliances

Particulate Matter (PM) emissions

Metric tons

1,171

2,366

Not available•

50% reduction in single-use plastic water bottle
consumption onboard, and eliminated in Teekay
offices by 2023

Fleet implementing ballast
water treatment

Percentage

80%

60%

35%

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

3,665

10,312

10,573> Disposed to shore facilities

Cubic Meters

2,705

7,165

7,374

> Incinerated onboard

Cubic Meters

802

2,676

2,718

> Disposed at sea8

Cubic Meters

159

472

480

Total Recordable Case Frequency

Rate

2.52

1.86

0.86

Lost Time Injury Frequency

Rate

0.32

0.15

0.05

Fatalities

Number0

00Marine incidents

Number7

9

14

Incidents classified as very serious

Percentage

0%

0%

0%

Conditions of Class

Number4

9

9Port state control deficiencies

Number12

32

29

Port state control detentions

Number0

0

0

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

37

38

45

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

$US

$0

$0

$0

Shore staff

Number

368

646

666

Sea staff

Number

1,901

4,156

4,719

Vessels in total fleet

Number

45

124

133

Vessels managed by Teekay

Number47

86

92

Deadweight tonnage

Thousand DWT

5,444

9,135

9,891

Total distance traveled by vessels

Nautical miles

2,116,340

6,378,429

6,494,560

Operating days

Number

17,86232,203

31,913Vessel port calls

Number

1,947

3,011

3,077

Results in 2022•••

Emissions intensity has decreased by 26% and 13%,respectively, in the Suezmax and Aframax fleetssince 2008
Further installation of Mewis Ducts, low leakage valves,and FuelOpt system

Air Quality

Results in 2022

Waste

•

All targets achieved•

Onboard consumption of single use plastic drinking bottles
was reduced by 84% in 2022, and usage in Teekay
offices has been eliminated.

Successful test of ShipShave hull cleaning tool

MarineEcological
Impacts

SafetyActions for 2023

Actions for 2023•

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

Further installations of Mewis Ducts, FuelOpt system, andlow leakage valves•

Installation of ShipShave hull cleaning tool

Teekay’s Ambition: Ship Recycling•

Auto-pilot system modifications to reduce fuel consumption•

Testing platform for improved voyage, route, and weather
optimizations

Increase transparency and elevatestandards in the ship recycling industry•

Continue ballast water treatment systeminstallation program

Business
EthicsTargets•

Zero regulatory non-compliances•

At least one on-site inspection per month of
any active ship recycling facilities

Activity
Metrics

Results in 2022•

All targets achieved in 2022

Actions for 2023•

Continue engagement with M.A.R.S facility for thegreen recycling of the Petrojarl Foinaven FPSO•

Continue our support and engagement on the Ship
Recycling Transparency Initiative (SRTI) Steering
Committee

On track

40

Teekay Group Sustainability Report 2022 — Group-Wide Initiatives

Needs attention

Consolidated data in 2022 includes Teekay Tankers and Teekay Australia, and therefore
results may differ from those presented elsewhere in this report.
6
Historical data for 2021 and 2020 includes LNG carriers that were formerly part of
the Teekay LNG fleet, and shuttle tanker vessels that were formerly part of the Teekay
Offshore fleet. Data does not include Teekay Corporation’s FPSO units, which were all
managed by a third party.
5

9For 2022, NOx, SOx, and PM emissions are estimated using improved methods outlinedin the Fourth IMO GHG Study and therefore are not directly comparable to earlier estimates.
8
Food waste and bulk cargo residues which are non-hazardous to the marine environment.
9
Includes seven vessels technically managed by Teekay Australia. Remaining vessels
in Teekay Australia are excluded since they are not operated under Teekay’s HSEQ
management system.
7

Teekay Group Sustainability Report 2022 — Group-Wide Initiatives

41

SASB Reference Table

APPENDIXTOPICACCOUNTING 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 ofperformance 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 Quality

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

Air Quality, ESG Performance Data

Ecological
Impacts

Shipping duration in marine protected areasor areas of protected conservation status

Not reported due to unavailability of data

Percentage of fleet implementing ballast
water exchange and treatment

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

Number and aggregate volume of spills andreleases to the environment

Teekay Tankers SASB Disclosures,
ESG Performance Data

Employee
Health & Safety

Lost time incident rate (LTIR)

Safety and Security, ESG Performance Data

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

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

Teekay Tankers SASB Disclosures,
ESG Performance Data

Number of marine casualties, percentage
classified as very serious

Safety and Security, ESG Performance Data

Number of Conditions of Class orRecommendations

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

Number of port state control
deficiencies and detentions

Teekay Tankers SASB Disclosures,
ESG Performance Data

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

Twenty-foot equivalent unit (TEU) capacity

Not applicable

Accident& Safety
Management

Activity
Metrics

42

Teekay Group Sustainability Report 2022 — Appendix

43

GRI Content Index
TOPIC
Organization
ProfileStrategy

44

GRI Content Index (continued)
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 Engagement

Teekay Corporation and Teekay Tankers are MarshallIslands corporations, each with headquarters locatedat: Fourth Floor, Belvedere Building, 69 Pitts Bay Road,
Hamilton HM08, Bermuda

102-45

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

102-46

Defining report content andtopic boundaries

Materiality and Stakeholder Engagement

GRI
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

Stakeholder
Engagement

102-4

Location of operations

About Teekay102-47

List of material topics

Materiality and Stakeholder Engagement

102-5

Ownership and legal form

About Teekay102-48

Restatements of information

102-6

Markets served

About Teekay

No restatements to our 2021 Teekay Group
Sustainability Report

102-7

Scale of the organization

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

102-49Changes in reporting

No change

102-50

Reporting period2022 calendar year

102-51

Date of most recent report

April 6, 2022

102-52

Reporting cycle

Annual102-53

Contact point for questions
regarding the report

media@teekay.com

102-54Claims of reporting in accordance This report has been prepared using the Consolidatedwith the GRI Standards
Set of GRI Sustainability Reporting Standards (2019)as guidance

102-55GRI Content Index

This GRI Reference Table

102-56External assuranceThis report has not been externally assured and theTeekay Group currently has no specific policy 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
and procedures

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 2022

305-7

Nitrogen oxides (NOx), sulfur
oxides (SOx), and othersignificant air emissions

Air Quality

102-8

Information on employees
and other workers

ESG Performance Data, Definitions and Notes

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/102-10Significant changes to theorganization and its supply chain

About Teekay102-11

Precautionary Principle approach

Materiality and Stakeholder Engagement102-12External initiatives

About Teekay102-13

Membership of associations

About Teekay102-14

Statement from Seniordecision-maker

CEO Letter

Values, principles, standards,
and norms of behavior

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

Ethics andIntegrity

102-16

Governance102-18Governance structure

Governance

Stakeholder
Engagement102-40

List of stakeholder groups

Materiality and Stakeholder Engagement102-41

Collective bargaining agreements

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 coversubstantially all the officers and seafarers that operate
our Bahamian-flagged vessels. We are also party tocollective bargaining agreements with various Australianmaritime unions that cover officers and seafarers
employed through our Australian operations.

Teekay Group Sustainability Report 2022 — Appendix

AntiCorruption

EmissionsTeekay Group Sustainability Report 2022 — Appendix

45

Report Definitions and Notes•

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.

•

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

•

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

•

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

•

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

•

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

•

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

46

Teekay Group Sustainability Report 2022 — Appendix

BRINGING ENERGY TO THE WORLD WITH TEEKAY SPIRIT