This policy provides guidance and highlights our commitment to Environmental, Social and Governance sustainability criteria across our business.
Performance Shipping Inc. (the “Company”) has adopted this Environmental, Social, and Governance (hereafter “ESG”) Sustainability Policy (this “Policy”), which applies to all of the employees, directors, officers, and agents of the Company and its subsidiaries, including employees, directors, officers, and agents of the Company’s manager, Unitized Ocean Transport Limited (each, an “Employee”).
The Company’s focus revolves around the three core principles of ESG or three ESG pillars:
The Company is committed to identifying and assessing ESG risks and opportunities based on these pillars, and incorporating these into its operations where appropriate.
- Efficient energy consumption;
- Emissions and factors contributing to climate change;
- Biodiversity and life below water;
- Responsible disposal of effluents and waste; and
- Environmental compliance.
- Occupational health & safety;
- Employment issues, training and education;
- Preservation of human rights;
- Ensuring equal opportunity and non-discrimination; and
- Socio-economic compliance.
- Governance and ethics (including anti-corruption/anti-competition);
- Economic performance; and
- Responsible procurement/supply chain.
Business vision and mission
The Company's vision is to become a leader in its industry via continuous improvement in every aspect of its operations. Specifically, the Company’s mission is to provide safe and environmentally responsible seaborne transportation of crude oil products around the world, whereas its prime/strategic objectives are:
- Zero incidents;
- Zero spills;
- Efficient energy performance;
- Cost-effective seaborne transportation services;
- To satisfy and, where possible, to exceed clients’ needs and expectations;
- Sound corporate governance and ethical business conduct;
- Sustainable development and healthy economic development; and
- Transparency and unbiased dialogue with stakeholders.
Sustainability policy framework
Through this Policy, the Company aims to improve the predictability, transparency, and accountability of its actions by putting into practice its commitments to ESG sustainability and pursuing improvements in all its operations.
Corporations across all industries face increasing scrutiny relating to their ESG policies and actions. Investor advocacy groups, certain institutional investors, investment funds, lenders, and other market participants are increasingly focused on ESG practices. In recent years they have placed increasing importance on the environmental implications and social aspects of their investments. The Company recognizes that a lack of timely and efficient responsiveness to ESG matters could adversely affect the Company’s business strategy and growth potential. These trends impact investors’ decisions in the capital market and the ability of shipping companies to access financing. As a result, the Company is prepared to take steps towards a sustainable mind-set and a commitment to ESG factors in all areas where the Company is active while promoting continuous, open, and transparent communication and cooperation with its stakeholders.
In order to enhance its corporate social responsibility whilst embedding it into its everyday business in the best possible way, the Company keeps informed about the current sustainability trends and developments in ESG practices, aiming to act as a responsible and ethical corporate citizen towards a better and more sustainable global future.
This is enacted through a series of policies and procedures implemented through the Company’s integrated Management System (“MS”), which is an integral part of the Company’s Internal Control System (“ICS”) promoting sound governance practices. Among other internal controls, the Company has a Code of Business Conduct and Ethics Policy in place, which prescribes ethical principles applicable to all of its business transactions. The Company is determined to continuously identify and monitor its operational impacts, to regularly evaluate them, and finally disclose its overall performance and approach to those impacts through its sustainability reports.
Material issues that concern the Company are identified through the performance of a periodical “materiality analysis” exercise (i.e., every 1-3 years depending on circumstances and management’s decision).
Using the ESG rationale and the results of the materiality analysis, the Company aims to formulate and maintain an integrated and solid sustainability approach across its business, taking into consideration:
- Global sustainability trends, i.e., embracing ESG factors and Sustainable Development Goals by taking into account the guidance, regulations, targets, and initiatives of the International Maritime Organization (“IMO”);
- Global Reporting Initiative (GRI) Standards’ requirements; and
- The shipping industry and market expectations for an oil transport company in order to be financially healthy, socially conscious, and environmentally friendly.
Objectives and initiatives towards policy achievement
As a publicly-traded Company, we are subject to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and of any national securities exchange (“Exchange”) on which the Company’s shares are listed.
In this context, the Company operates a Committee of Sponsoring Organizations of the Treadway Commission (COSO) aligned ICS. An inherent part of this ICS is a comprehensive MS for the entire Company (i.e., offices and vessels), which is operated by UOT and satisfies the requirements of the most recent versions of the ISO 9001, 14001, OHSAS18001/ ISO45001, ILO MLC 2006 & ISM Code, as applicable, and all other statutory requirements and international legislations. The relevant MS encapsulates the above and sets the pace towards compliance with the respective requirements of the standards followed.
The ICS and the MS feature short, medium, and long term objectives which are set by the Company’s executive management and are endorsed by the Board of Directors. The sustainability report(s) may also complement the above by setting additional goals per material issue/ topic, taking into account the applicable sustainability reporting standards (i.e., GRI). The Company periodically reviews its objectives and goals related to safety, health, security, energy, environmental, labor, and human rights, and evaluates its performance by using appropriate key performance indicators.
Through the implementation of this Policy, the Company aims to develop and apply practices that promote the Company’s sustainable approach to all facets of its operations. These practices continually assess the Company’s sustainability reporting achievements based on GRI standards.
The Company undertakes to uphold the highest standards of sustainable development. To achieve this goal, the Company has identified the following priority ESG commitments and objectives, taking into account the wider context of issues acknowledged through the materiality analysis:
- Monitor energy consumption and relevant emissions whilst being constantly updated on any renewable and/or alternative environmentally friendly sources of energy.
- Be in line with climate change initiatives such as the IMO’s relevant commitments.
- Minimize all environmental discharges.
- Protect biodiversity and life below water.
- Comply with the continuously changing environmental regulations, applicable national and international legislation, classification society regulations, and industry guides and guidelines.
- Strive to meet legislation early, and exceed compliance requirements and standards.
- Measure, track, and communicate progress on incorporating sustainability principles into business practices.
- Implement policies and procedures to address environmental impacts, which are periodically reviewed.
- Allocate responsibilities and adequate resources for the implementation of this policy and the objectives set forth herein.
- Provide a safe and healthy working environment for employees.
- Be responsive to employment issues (hiring, retention, etc.) and respecting labor rights.
- Invest in personnel training and further education.
- Support and uphold the protection of human rights by complying with all applicable laws.
- Promote diversity and inclusion, equal opportunity, and non-discrimination.
- Implement policies and procedures for protective measures in the event of an emergency and/or major incident.
- Promote the health of employees by encouraging physical exercise through participation in community and charitable activities.
- Support the local communities in which we operate, including through encouragement of charitable activities and giving.
- Develop a culture of trust and teamwork amongst employees, partners, clients, suppliers, and stakeholders.
Governance and economic performance
- Foster ethical business conduct.
- Exhibit transparency and integrity.
- Comply with relevant legislation.
- Apply a solid governance model using sound governance principles taking into account relevant good practices.
- Promote responsible purchasing and supply chain practices.
- Pursue healthy economic performance without neglecting to consider potential environmental and social implications.
- Maintain transparent and honest communication with stakeholders.
- Adopt voluntary charters, codes of conduct, and policies to reach sustainability goals.
Sustainability Policy and the United Nations Sustainable Development Goals (SDGs)
As a corporation that is genuinely interested in a better and more sustainable future, the Company supports the UN Sustainable Development Goals (“SDGs”) and aims to align its actions with the respective SDGs which are relevant to this Policy, namely:
- SDG 7. Affordable and clean energy
- SDG 13. Climate action
- SDG 14. Life below water
- SDG 3. Good health & well-being
- SDG 4. Quality education
- SDG 5. Gender equality
- SDG 10. Reduced inequalities
Governance and economic performance
- SDG 8. Decent work and economic growth
- SDG 16. Peace, justice and strong institutions