Teekay : Sustainability Report 2022

TEEKAY GROUP | Sustainability Report 2022

CONTENTS

About This Report

This is the 13th annual sustainability report for the Teekay Group and covers global operations for the 2022 calendar year. This report focuses on the environmental, social, and governance (ESG) issues that may significantly affect our business performance and that matter most to our key stakeholders.

Data and results are provided separately for Teekay

Tankers Ltd. (Teekay Tankers), along with aggregated group- wide results. In January 2022, Teekay sold its ownership interest 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 at www.teekay.com/about-us/sustainability

This report has been prepared using the Global Reporting Initiative (GRI) Guidelines and the Sustainability Accounting Standards Board (SASB) Standards as guidance. Teekay is committed to the United Nations Global Compact Ten Principles and this report serves as our Communication on Progress.

In this report, the terms sustainability and ESG are used interchangeably.

Teekay closely oversees the operations of our vessels managed by third party companies to ensure performance meets our policies and requirements. Unless otherwise noted, all reported data is for the calendar year 2022, or as of December 31, 2022.

Contact Us

We appreciate your comments, feedback or queries on this report and our performance. Please send your feedback to media@teekay.com

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

Engage With Us

www.linkedin.com/company/teekay/

www.facebook.com/TeekayCorp/

twitter.com/TeekayCorp

www.instagram.com/teekaycorp

About Teekay

Strategy

Teekay Tankers

Teekay Australia

Reporting Boundary

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

Group-Wide Initiatives

Appendix

ABOUT TEEKAY

Established in 1973, Teekay is a leading provider of international crude oil and other 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 of marine 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-termfixed-rate time charter contracts and spot tanker 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-ship transfer business that performs full-service lightering and lightering 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).

FACTS AND HISTORY

Kenneth Hvid named CEO TNK/TIL merger

First oil and contract start-up for the Libra FPSO

Rangrid FSO contract start-up

Teekay and Brookeld announce strategic partnership

Announced four DP2 shuttle tanker newbuildings

20172018

Sold remaining interest in Teekay Offshore to Brookeld

Teekay named "Shipping Company of the Year" at the International Seafarers' Welfare Awards

Completed entire vessel newbuilding program including delivery of the last Arc7 LNG Carrier

Preparation for start-up operations at Bahrain LNG Terminal

20192020

Agreement to sell interest in Teekay LNG to Stonepeak

Awarded new contract to provide in-service support for ve Australian Government vessels

Start of green recycling of the Petrojarl Banff FPSO

20212022

E-Shuttle project wins Environmental Award

Petrojarl 1 FPSO rst oil

Three Heritage Class shuttle tankers delivered to East Coast Canada

Completion of 5 "M" Class LNG sister ships for Shell

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

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

Bahrain LNG terminal completes construction and commissioning

All three Teekay companies join United Nations Global Compact

Preparation for green recycling of the Petrojarl Banff FPSO

Completed sale of Teekay LNG to Stonepeak

Completed green recycling of the Petrojarl Banff FPSO and commenced green recycling of the Petrojarl Foinaven FPSO

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

20142013

Launched Tanker

Investments Ltd. (TIL)

Acquired ALP

1973-199973 - 2000

1973 Torben Karlshoej founded Teekay as a regional charterer

1976 Chartered rst vessel for $3,800/day

1985 Purchased rst Aframax tanker, Golden Gate Sun

1992 Founder Torben Karlshoej passed away

1995 Listed NYSE: TK

1998 Bjorn Moller named CEO Entered FSO market Secured rst FSO contract

1999 Expanded tanker trade to Atlantic Aframax market Acquired Bona Shipholding

2010

Peter Evensen named CEO

2003

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

CEO LETTER

THIS 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

BRINGING ENERGY TO THE WORLD

VISION&VALUES

TOGETHER WITH TEEKAY SPIRIT

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 our business and the broader energy landscape.

In February 2022, Russia invaded and occupied parts of Ukraine. This invasion, which in addition to having a devastating impact on the people of Ukraine, also acted as a 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 a priority, it has become more apparent how vulnerable and dependent the world is on fossil fuels. Specifically, global oil demand further increased this past year, once again reaching 100 mb/d in late 2022. At the same time, the embargo on Russian oil and gas dramatically altered global energy supply dynamics, and resulted in higher commodity prices, higher transportation costs, and a strong increase in tanker tonne-mile demand.

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 the near 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 the

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.

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 to become the energy shipping leader we are today. Although much has changed throughout our journey, the values Torben instilled into the fabric of our organization continue to remain true: a focus on the frontline seafarer, a commitment to operational leadership, and a quest for "absolute excellence." These values are recognized across the Teekay Group and will continue to guide our journey towards a more sustainable company and a more sustainable maritime industry.

Lastly, while external factors have played a significant part in our performance outcome in 2022, our achievements would not have been possible without every member of the Teekay Group continuing to focus on deliverables, working to add value, and always doing the right thing. I would therefore like to thank everyone for their dedication and good work over the past year, and I look forward to working with each of you as we embark on the next 50 years together.

Safety & Sustainability We put safety first

No compromises. We look after each other and make sure everyone gets home safely. We consider people, planet and performance in all of our decisions and actions. 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 and we take pride in doing a job well. We strive to make a difference every day with our 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 are trustworthy. 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 other accountable 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 encourage others 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 of cooperation. We encourage diverse perspectives, and value the opportunity to listen and be listened to. We help others be successful. We celebrate success!