We are committed to operate our business in an environmentally and socially responsible manner. To achieve this, we strive to comply with all applicable rules and regulations with our best efforts in shipping operation as well as in our daily working environment to minimize any adverse impact to the environment. The possible environment impact may include air pollutants emissions, ballast water discharges and oil pollution in environmental disaster. By maintaining operational safety and providing quality training of our crews in compliance with applicable environmental laws and regulations, we believe that the operation of our vessels is in substantial compliance with applicable environmental laws and regulations.

It has always been our policy to maintain high standard of environmental protection awareness and to operate our vessels in a safe and environmentally friendly manner. We maintain our modern first-class fleet to enable maximum environmental performance and ensure our compliance to safety and environmental laws and regulations including The International Safety Management Code (“ISM Code”), The International Ship and Port Facility Security Code (“ISPS Code”), and other applicable rules regulated by IMO. These conventions have been ratified by majority of maritime nations and apply to all vessels registered in these countries or calling in the waters of these countries. We obtain safety management certificate, document of compliance and go through annual verification and audit for compliance with ISM Code issued by recognized organization on behalf of the flag states. Our vessels adopted IMO Data Collection System on fuel consumption and we switched to compliant low sulfur content bunker fuel in order to meet the IMO 2020 Sulphur Cap requirement which is in effect starting from 1 January 2020.

The IMO’s Marine Environment Protection Committee (“MEPC”) has published a review on the quality of marine fuels supplied (“MEPC 76”). Following to the adoption of MEPC 76 in June 2021, the attained Energy Efficiency Existing Ship Index (“EEXI”) is required to be calculated for every ship and the requirement will enter into force in 2023. Ships are required to meet a specific required EEXI, which is based on a required reduction factor expressed as a percentage relative to the Energy Efficiency Design Index (“EEDI”) baseline. By 2023, our fleet vessels have to comply with the required EEXI. A series of modification on the main and auxiliary machinery will be made to meet with the EEXI requirement according to the adopted guidelines.

As at 31 December 2021, the Group had twenty four owned vessels which comprised mainly of grabs fitted Supramaxes. We ensure our own fleet be equipped with proven green and energy efficiency equipment and technologies to minimize the emission of toxic pollutants, which include:

• Nitrogen Oxides (NOx) – our vessels are built with the main engine and auxiliary engines that are fuel-efficient and comply with the latest emission of pollutants limits;
• Sulfur Oxides (SOx) – our vessels burn the required low sulfur content bunker fuel;
• Ozone depleting substances – majority of our vessels’ equipment do not contain ozone depleting substances and comply with all material aspects of MARPOL regulations pertaining to hazardous ozone depleting substances;
• Ballast water – our vessels follow the latest requirements on ballast water exchange and operations.
• Carbon Dioxide CO₂ emission reduction – since February 2013 the Group has adopted the Ship Energy Efficiency Management Plan (“SEEMP”), a plan that individual vessel can follow and improve each vessel’s energy efficiency through a series of procedures and efforts. Implementing of SEEMP will contribute towards reducing fuel consumption and carbon emission which influence the global environment. We also adopted SEEMP Part II during the year. Our vessels adopted IMO Data Collection System on fuel consumption and we switched to compliant low sulphur content bunker fuel in order to meet the IMO 2020 Sulphur Cap requirement which is in effect starting from 1 January 2020.

Since 2020, our vessels have switched over to 0.5% low sulphur content heavy fuel oil according to IMO 2020 Sulphur Cap requirement. New requirements for China Emission Control Areas (“ECA”) in Chinese territorial waters as announced by the Chinese Ministry of Transport came into effect from 1 January 2019. When our vessels enter regional emission control areas, we switched to 0.1% ultra-low sulphur content fuel oil to minimize fuel consumption and emission. As our fleet vessels trade less into ECA, our consumption of 0.1% ultra-low sulphur content fuel oil dropped in 2021.

In 2021, fuel oil consumption was 81,088 tonnes and corresponding CO₂ emission was 252,959 tonnes, representing 16.5% and 16.7% more than that of 2020 respectively. Due to more steaming time of fleet vessels in the year 2021 as quarantine time has been relaxed slightly in loading and discharging ports and the expansion of fleet size by six more vessels in the year 2021, fuel consumption by the fleet vessels has increased and correspondingly more CO₂ emission for the year 2021.

CO₂ emission reduction – since February 2013, the Group has adopted the SEEMP, a plan that individual vessel can follow and improve each vessel’s energy efficiency through a series of procedures and efforts. Implementing of SEEMP will contribute towards reducing fuel oil consumption and carbon emission which influence the global environment. SEEMP Part II has also been adopted since 2018. Starting from 2019, our vessels adopted IMO Data Collection System on fuel consumption to allow us monitor and improve fuel efficiency and to mitigate emissions.

Energy Efficiency Operational Indicator (“EEOI”) is an index showing the amount of CO₂ emission per tonne of cargo carried per mile of sea voyage. In 2021, the average EEOI of the fleet is about 13.2 grammes CO₂ / MT.Mile, representing an increase of 5.6% as compared to 2020.

For coming year 2022, our aim is to reduce the EEOI by 2% of the 2021 figure. The main effort will still be on better management on fuel consumption optimization and better arrangement on cargo carriage with less ballast passage.

In order to attract and retain the best people for the sustainable growth of the Company, we place emphasis on a healthy and safe workplace on board in our vessels and ashore at our office and support all kinds of community activities that contribute to our community.

• Team-oriented environment

We also provide fringe benefits and welfare to our people including but not limited to medical and life insurance, pension schemes, paid leave for various purposes, travel or meals for business-related work, and other benefits to improve employees' well-being.



• Safe working environment

We put safety as our top priority in business operation. Accident preventions and efforts for improvement in working environment are given high priority in the business management, conventions and all parts of operations. We strive to comply with applicable safety and environmental laws and regulations to which seafarers of all ranks must be trained and certificated in order to be able to carry out their respective duties on board in our vessels. We ensure all crew on board are trained and certificated in accordance with the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW Convention).