DHT Holdings, Inc.

Sustainability

Report

2023

DHT management (left to right): Svenn Magne Edvardsen (Technical Director), Laila C. Halvorsen (Chief Financial Officer), Svein Moxnes Harfjeld (President & Chief Executive Officer), J. Stephen Eglin (Director Chartering & Operations)

We are an independent crude oil tanker company. Our fleet trades internationally and consists of crude oil tankers in the VLCC segment. We operate through our integrated management companies in Monaco, Norway, India and Singapore. You may recognize us by our renowned business approach as an experienced organization with focus on first rate operations and customer service; our quality ships; our prudent capital structure that promotes staying power through the business cycles; our combination of market exposure and fixed income contracts for our fleet; our counter cyclical philosophy with respect to investments, employment of our fleet and capital allocation; and our transparent corporate structure maintaining a high level of integrity and good governance.

We are committed to minimizing the emissions resulting from operating our ships. We own and operate a single class of ships, VLCCs, offering the most energy efficient form of seaborne transportation of crude oil with the smallest emission footprint per unit transported. Our management philosophy focuses on the high-quality operation of our ships throughout their life cycles.

Contents:

01 Report Introduction

  1. Relevant UN Sustainable Development Goals
  1. Environment
  1. Social
  1. Governance
  1. SASB References
  2. Assumptions & Disclaimer

Sustainability at DHT

The Board of Directors ("BoD" or "Board") provides oversight to DHT's environmental, social, and corporate governance matters. The sustainability oversight committee made up of BoD members is tasked with acting on behalf of and reporting to the Board regarding sustainability matters. Throughout this report, "DHT", the "Company", "we", "us" and "our" all refer to DHT Holdings, Inc. and its subsidiaries.

SASB Reporting Standards

We have chosen to apply the Sustainability Accounting Standards Board (SASB) Standards for Marine Transportation. The SASB Foundation has issued industry-specific standards to assist companies in disclosing material sustainability information. Topics that we find to be relevant to our stakeholders, but not covered by the SASB Standards, have been added to complement the SASB Standards.

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SASB Standards require entities to establish reporting boundaries for parent and subordinated entities consolidated for financial reporting purposes. The reporting boundaries for DHT changed during 2022 in connection with its increased ownership in Goodwood Ship Management Pte. Ltd. (Goodwood). Goodwood is consolidated for financial reporting purposes, and as a result, it is also consolidated for the Company's disclosures in this report. This is the second year Goodwood's results have been consolidated into our sustainability report.

DHT Peer Comparison (Webber Research)

DHT was in the upper quartile, ranked number 6 out of 64 shipping companies, in the 2023 ESG Scorecard report issued by Webber Research. DHT was also ranked number 1 amongst all the crude tanker companies included in the report.

United Nations - Sustainable Development Goals

The 17 United Nations Sustainable Development Goals (the "SDGs") promote prosperity and recognize that the fight against poverty must go together with economic growth strategies. The SDGs address topics such as health, education, social protection, as well as climate change and environmental protection. Eight of the 17 goals have been identified as topics where DHT could have an impact. Topics identified directly relate to our operations, the company's employees, and the environment the company operates in. DHT endorses sustainability goals and strives to take the necessary steps to improve conditions for the affected stakeholders.

We are committed to good health and well-being of everyone working for DHT. The Company demonstrates its commitment through:

  • A Health, Safety, Environmental Protection and Energy Policy implemented across our operations
  • Signatory to the Neptune Declaration on Seafarer Wellbeing and Crew Change
  • Signatory to the Gulf of Guinea declaration on the Suppression of Piracy
  • Implementation of a Health and Safety Management System covering the management of the operation of our vessels. The Health and Safety Management System has been certified as compliant with ISO 45001 by the American Bureau of Shipping.

We have implemented various initiatives intended to improve the well-being of the seafarers on board our vessels. These initiatives are designed to address both the mental and physical well-being of the seafarers. The "Social" section of this report provides additional information on the initiatives in place.

We are committed to offer everyone working within DHT the best possible training and professional development to help them succeed in their jobs and careers. This commitment includes:

  • Proactively promote a safety culture and engage in the highest level of training to prevent human injuries or loss of life, and to avoid harm to the environment
  • In-housetraining facility equipped to provide updates to our seafarers for both deck and machinery disciplines
  • Training initiatives for our seafarers through seminars, onboard on-the-job training with trainers sailing onboard as well as refresher training at our in-house training facility
  • In-houseship specific navigational training courses for our seafarers
  • Marine resources management courses
  • Offering graduates cadet programs with potential careers within DHT

Our technical manager, Goodwood Ship Management owned 53% by DHT, has a dedicated training department and a wholly owned training facility to ensure that both seafarers and relevant shore staff get trained as per our objectives in an ongoing manner using both internal management systems and external resources to develop best practices.

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We offer equal opportunities to our workforce both for onshore staff and seafarers. The onshore staff across our operations in Monaco, Norway, Singapore, and India consist of 33% females and 67% males. The International Maritime Organization (IMO) outlines that the current global seafarer workforce consists of 1.2% women. We recognize the industry has more to do to make it an attractive and safe place for women to work.

We are committed to providing equal competence-based employment opportunities and a work environment that values diversity among its employees. We have zero tolerance for discrimination based on sex, race or ethnic characteristics, sexual harassment, or assault, and other forms of harassment. The International Labor Organizations (ILO) has outlined international labor standards related to seafarers through the Maritime Labor Convention (MLC), 2006. The Company's vessels are registered with flag states that have ratified and implemented MLC, 2006. The Company maintains compliance with the requirements of the convention and its ships go through regular inspections to verify compliance.

We are committed to minimizing consumption of marine fuels, chemicals and other consumables, as well as managing waste in a responsible manner. We have implemented an Energy Management System covering the management of the operation of our vessels. The Energy Management System has been certified as compliant with ISO 50001 by the American Bureau of Shipping. The Company has implemented an Environment Management System covering the management of the operation of our vessels. The Environment Management System is certified as compliant with ISO 14001 by the American Bureau of Shipping.

We are committed to minimizing the emissions resulting from operating our ships. We own and operate a single class of ships, VLCCs, offering the most energy efficient form of seaborne transportation of crude oil with the smallest emission footprint per unit transported. Our management philosophy focuses on the high-quality operation of our ships throughout their life cycles. We have invested in Exhaust Gas Cleaning Systems (EGCSs) on all our vessels as part of our commitment to reduce emissions to air (SOx emissions). In addition to investing in EGCSs, we have installed waste heat recovery systems on four of our ships. These systems reduce fuel consumption, hence reducing emissions, through the recovery of thermal energy from the exhaust gas and converting it into electrical energy. All ships in the fleet have systems installed to recover residual heat that can be used for auxiliary ship services, such as providing hot water and steam that would otherwise require energy to be separately produced. As outlined above, we have the relevant systems in place to maintain our ISO 14001 and ISO 50001 certifications.

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We are committed to minimizing our impact on the oceans by targeting zero spills of hydrocarbons and no overboard disposal of chemicals and waste. In addition, our fleet is coated with tin-free paints, reducing harmful effects to marine life. All our vessels are fitted with ballast water treatment systems (BWTS). BWTS reduce or eliminate invasive aquatic species in ships ballast water when loading and discharging ballast water in different geographical areas. In addition to the BWTS, we have implemented a Garbage Management Plan to amongst others prevent waste from impacting underwater marine life.

We are committed to act honestly and ethically and to comply with all relevant antitrust and fair-dealing laws. The following policies have been adopted and implemented across our operations:

  • Antitrust, Competition & Fair-dealing Policy
  • Code of Business Conducts and Ethics
  • DHT Sanctions Policy
  • Nominating and Corporate Governance Guidelines
  • Insider Trading Policy

We have implemented an Information Security Management System covering the office- based information security support and maintenance for ship management services. The Information Security Management System has been certified as compliant with ISO 27001 by the American Bureau of Shipping.

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Environment

DHT undertakes to provide the safe transport and delivery of crude oil around the world to end users. Our industry inherently carries risks related to carbon emissions and spills to the environment. We aim to be amongst the best-in-class in managing these risks, and as such, be one of the most respected operators of large oil tankers.

We believe we effectively manage these risks and believe this is the result of our focus on owning and operating quality ships being operated by well trained and highly qualified personnel. Our personnel are supported by a robust architecture of policies, procedures, and plans. The effective implementation of these policies, procedures, and plans are the key and overarching risk mitigators for the risks posed by our operations.

DHT Fleet

We own and operate a single class of ship, Very Large Crude Carrier (VLCC), which offer the most energy efficient form of seaborne transportation of crude oil with the smallest emission footprint per unit transported. The smaller emission footprint per unit transported can be attributed to VLCC's substantial

cargo carrying capacity, enabling the transportation of approximately 2 million barrels of crude oil in each voyage. As an organization, we strive to constantly educate ourselves on technological and operational developments, and the potential positive impact they may provide on the emission profile of our fleet. Emissions related to oil transportation using oil tankers are a function of vessel design, technology, ship condition, type of fuel, and operational mode (e.g. speed). Additional factors such as weather, ocean conditions and local regulations may also impact the emission profile of a ship. We are in general looking to pursue technological and operational developments to cost-effectively reduce our emissions over time.

Fleet Developments

Since 2015, we have expanded our fleet with 13 modern ships powered by the latest in engine designs, thereby reducing fuel consumption and emissions. Alongside the effort to gradually modernize our fleet, we have invested in exhaust gas cleaning systems ("EGCS") on our ships which reduce sulfur oxide (SOX) emissions to air. The installations scheduled in 2023 were all completed and our fleet is 100% fitted with

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these systems. The systems can clean the sulfur content down to 0.1%, lower than the 0.5% regulatory requirement (referred to as "IMO 2020"). We believe DHT's fleet operates in compliance with IMO 2020 through our combined usage of exhaust gas cleaning systems and compliant low sulfur fuel oil.

Our efforts in connection with the IMO 2020 regulatory requirements to reduce sulfur oxide (SOx) emissions to air have been centered around the installation of exhaust gas cleaning systems on our ships, which effectively reduces SOx air emissions to the levels of low-sulfur fuel oil (LSFO) or lower. The graph below illustrates that over the previous three- year period, our SOx emissions to air have remained relatively constant, with minor fluctuations from year to year.

SOx Emissions (Mt)

5000

4000

3000

2000

1000

0

2021 2022 2023

Fleet ecological impacts

The IMO put the Ballast Water Treatment Convention into force in September 2017. The objective is to reduce or eliminate invasive aquatic species in ships' ballast water when loading and discharging ballast water in different geographical areas. All the vessels in our fleet have BWTS installed in accordance with the Ballast Water Treatment Convention.

We had zero environmental spills during 2023.

Measures to Improve Vessel Efficiency

We have implemented various operational efficiency measures such as hull cleaning, propellor polishing and the use of weather routing across our entire fleet. These operational measures are supplemented by technical measures such as self-polishing antifouling, installation of propulsion improving devices (propellor

ducts), and engine power limitation (EPL). These efficiency measures provide us with ways in which we can reduce our fuel consumption, consequently lowering emissions, and enabling cost savings through reduced fuel usage.

ISM Code Compliance

The International Safety Management Code (ISM Code) is one of the key regulations in the marine industry providing an international standard for the management and operation of ships and pollution prevention. The objective of the ISM Code is to ensure safety at sea, prevention of human injury and loss of life, and avoidance of damage to the environment, in particular to the marine environment. To comply with the ISM Code, we assume the responsibility for the operations of our ships by implementing and maintaining a safety management system which includes the following functional requirements:

  • A safety and environmental protection policy
  • Instructions and procedures to ensure safe operation of ships and protection of the environment in compliance with relevant international and flag state legislation
  • Defined levels of authority and lines of communication between, and amongst shore and shipboard personnel
  • Procedures for reporting accidents and non- conformities with the provisions of the ISM Code
  • Procedures to prepare for and respond to emergency situations; and
  • Procedures for internal audits and management reviews

We believe DHT's operations are compliant with the ISM Code and we undergo regular inspections by relevant authorities to verify compliance. The inspections of our ships for compliance with the ISM Code are carried out at intervals outlined by the applicable flag state of our ships.

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Fleet Efficiency and Emissions

We subscribe to IMO's Energy Efficiency Operational Index (EEOI) metric as the most relevant metric when evaluating our vessel's operational efficiency. The EEOI for our fleet decreased 1.7% from an EEOI of 4.14 in 2021 to an EEOI of 4.07 in 2022 followed by an increase of 4.2% from an EEOI of 4.07 in 2022 to an EEOI of 4.24 in 2023. Our increased EEOI for 2023 is primarily attributable to three factors: 1) an increase in transportation distances as our customers are sourcing crude oil feedstock to their refineries from further away, 2) an increase in the average service speed to meet target delivery dates at our customer's refineries, and 3) the ratio between passages in laden or ballast conditions.

EEOI - DHT Fleet

4,46

4,24

4,14

4,07

2020

2021

2022

2023

EEOI - DHT Fleet

Linear (EEOI - DHT Fleet)

In addition to the EEOI metric, a group of global shipping banks in collaboration with leading shipping industry players developed the Poseidon Principles.

2008 levels with interim targets in 2030 and 2040. As a result, the required annual AER reduction over time has been increased while the methodology for counting emissions now includes the projected full lifecycle emissions of the fuels utilized by the vessels (referred to as "well to wake" emissions). In addition, the new methodology has established two separate trajectories based on IMO MEPC 80 "minimum" and "striving" trajectories. This new methodology applies the individual vessel DWT value instead of assigning all vessels within a vessel class the same AER trajectory value compared to the historical approach when all VLCCs were assigned the same trajectory value. As a result, the new methodology requires VLCCs with higher DWTs to achieve lower AER values. This approach negatively impacts our fleet's AER result as the majority of our fleet has large DWT capacity offering not only better operational economics for our clients and ourselves, but also lower fuel consumption per unit of cargo transported and as such reduced emissions per unit of cargo transported. The required DHT fleet average AER to achieve alignment with the minimum trajectory and striving trajectory for 2023 were 2.32 and 2.20. The DHT fleet achieved an average AER of 2.40 on a well to wake emission basis which represents a 3% and 9% underperformance against the minimum and striving trajectories.

DHT Fleet Result - New AER

Methodology

The Poseidon Principles provide a framework for integrating climate considerations into financing decisions to promote international shipping's decarbonization. The Poseidon Principles rely on the Annual Efficiency Ratio (AER) as the carbon intensity metric to measure decarbonization projections within a lender's shipping portfolio. Pursuant to our lending agreements, we are required to provide our lenders with relevant data to facilitate the calculation of AER

2,40

2,32

2,20

2,23

2,09

2,14

2,04

1,98

1,86

for each individual ship. The Poseidon Principles emissions reduction trajectory as well as the methodology for calculating the AER were significantly changed during 2023 as part of aligning with the IMO's goal of net-zero emissions around 2050 compared to

2023

2024

2025

2026

IMO Minimum Trajectory

IMO Striving Trajectory

DHT AER (2023)

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Disclaimer

DHT Holdings Inc. published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 11:46:03 UTC.