The Board has overall responsibility for the long term sustainability and environmental, social and governance strategies which support growth and enhance value for the business and its stakeholders, as well as contribution to the environment and the community growing.

We are committed to operate our business in an environmentally and socially responsible manner. When setting the standards, we consider the needs and requirements of the business, our stakeholders and relevant guidelines. We discuss and review the risks and opportunities, performance, progress, goals and targets regularly to monitor our environmental, social and governance performance, related issues and potential risks.

The Group's businesses and functional departments also help to formulate relevant strategies in their respective areas and monitor the effectiveness of the implementation in accordance with the sustainable development strategies and objectives suggested by the Board. Reviews are also arranged regularly to evaluate the effectiveness of current policies and procedures and develop appropriate solutions to improve the overall performance of environmental, social and governance policies.

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 seafarers 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. 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.

CO2 and GHG Emissions

The International Maritime Organization (“IMO”) adopted an Initial Strategy on the reduction of emissions, both CO2 emission and GHG emission from ships. The strategy represents a framework for the industry, setting out a vision for international shipping, the levels of ambitions to reduce emissions and guiding principles.

IMO adopted a revised 2023 IMO GHG Strategy on reducing emissions, identifying levels of ambitions for the sector including the reduction of CO2 emissions per transport work, as an average across the industry, by at least 40% by 2030, compared to 2008. The 2023 IMO GHG Strategy also includes a new level of ambition relating to the uptake of zero or near-zero GHG emission technologies, fuels or energy sources which represent at least 5% to 10% of the energy used by international shipping by 2030. The strategy also identifies the reduction of the total annual GHG emissions from international shipping by at least 20% to 30% by 2030, and by at least 70% to 80% by 2040, compared to 2008.

We support the IMO's targets as our short term and long term targets of decarbonization.

Starting from January 2024, the European Union's (“EU”) Emissions Trading System (“ETS”) extended to cover CO2 emissions from maritime transport entering EU ports. Shipping companies have to purchase and use EU ETS emission allowances for each tonne of reported CO2 emissions. We believe ETS inclusion of maritime transport will drive a faster reduction of emissions among the industry. The Group will strive as much as possible to reduce emissions to enjoy the lowest carbon price.

Acting as a participant in the marine market, the Group always concerns the issue of increasing GHG and consumption of fossil fuels. We own a modern and high-quality fleet of dry bulk carriers and as at 31 December 2024, the Group had twenty five owned vessels. We ensure our owned fleet be equipped with proven green and energy efficient equipment and technologies to minimize the emission of toxic pollutants.

Energy efficiency operational indicator (“EEOI”)

2024: the average EEOI of the fleet is about 9.48 grammes CO2 / MT.Mile

2023: the average EEOI of the fleet is about 10.0 grammes CO2 / MT.Mile

Our fleet's carbon intensity, EEOI of 2024 decreased about 0.52 grammes from the EEOI of 2023, representing a decrease of 5.2% as compared to 2023. The decrease was mainly due to fewer ballast voyages arranged in 2024 as compared to the year 2023.

The fuel oil consumption and the corresponding CO2 emission of the fleet are as follows:

Fuel oil consumption:

2024: Fuel oil consumption – 117,068 tonnes

2023: Fuel oil consumption – 112,375 tonnes

Corresponding CO2 emission:

2024: CO2 emission – 364,884 tonnes

2023: CO2 emission – 350,179 tonnes

As the Group continued to seek to fine tune the quality of our fleet during the year, fuel oil consumption increased slightly under the fleet changes.

Achieve decarbonization

In order to meet the short term and long term target of decarbonization, a mix of design, technical, operational measures and innovative measures are through below (i) to (v):

(i) Calculation and verification energy efficiency existing ship index (“EEXI”)

(ii) Compliance of energy efficiency design index for newbuilding ship energy efficiency (“EEDI”)

We have implemented the Engine Power Limitation for those vessels which have not met the EEXI requirement. We believe that it is the first step and the fastest way to lower the emissions. We try to make our vessels more efficient by reducing the amount of energy needed to propel it through the water. Propeller boss cap fins and propeller duct have been installed on our vessels. We also switch to using silicon anti-fouling paints and deploy de-rated main engines to our vessels in order to maintain the speeds of our vessels but with less fuel consumption.

Implementing operational performance techniques brings significant advantages to our fleet by combining tiny improvements. Propeller polishing and hull cleaning are scheduled periodically for our vessels for a smoother propel in the water. We optimize our fleet engine by implementing weather routing, optimization of ballast and trim, optimized voyage planning, usage of fuel oil additives, and optimum settings of fuel oil purifiers. We believe small improvements can add up to substantial fuel savings.

In 2024, the Group acquired three vessels which were already in compliance with EEXI or EEDI with Engine Power Limitation. In addition, two newbuildings with modern eco-design and complied EEDI were ordered in 2024, which to be delivered in 2026 and 2027 respectively.

(iii) Carbon intensity indicator (“CII”) Target Rated C Or Above For All Vessels

CII gives vessels an annual rating on scale of A to E, with A being the least carbon intensive. The rating measures how efficiently a vessel transports goods and is given in grams of CO2 emitted per cargo-carrying capacity and nautical mile. A vessel rated D for three consecutive years, or rated E for a particular year, will need to develop a work plan of corrective actions.

It became mandatory for all vessels to calculate their CII rating to measure the annual operational emissions in 2023. Our fleet has joined the Data Collection and Reporting System since 2019 which enables data to be analyzed and verified by RINA Services S.p.A. (“RINA”). The official evaluation results of our fleet were yet to be released, however, under our estimation, a number of our vessels will be getting rated D or below on CII. These vessels have been put through a series of planned works as mentioned to improve the CII rating. We have consistently delivered additional features to support CII monitoring, aiming to achieve a rating of C or above for all of our vessels on CII.

(iv) Ship energy efficiency management plan (“SEEMP”)

The vessels' SEEMP plans are approved by RINA and certified in compliance with IMO Resolutions.

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 and reduction in fuel consumption through a series of procedures and efforts.

Our vessels adopted IMO Data Collection System on fuel consumption to allow us monitor and improve fuel efficiency and mitigate emissions. The Group implemented of initial SEEMP in 2013, adopted SEEMP Part II in 2021 and SEEMP Part III in 2022. SEEMP Part III also complies with the latest requirement to provide information for assessing the operation of the CII of the vessels.

(v) For newbuilding projects, we may choose the most energy efficient design and will include the possibility of using dual fuel engines.

Climate change

The Group understands climate change affects our business and operations; hence it is crucial for the Group to react to prevent the risks associated with the climate change.

To enable a comprehensive review of the climate risks and opportunities, the Group conducted a climate risk assessment and scenario analysis and combine them with our business development. The climate-related risks that are likely to have corresponding business and financial impacts on the Group are discussed as below.

Physical risks
Acute risk – long term The increased frequency and severity of extreme weather such as typhoons, floods, sea level rise and tropical cyclones can disrupt the Group's operations by damaging the fleet, ports and communication infrastructures, causing power failure and injuring employees during their work, leading to reduced capacity and decrease in productivity, or expose the Group to risks associated with non-performance and delayed performance. These risks affect the operational ability of the organization resulting in reputational damage, direct loss of revenue and increase operating cost.

Transition risks
Laws and regulation risk – short to medium term The Group anticipates that there will be more stringent climate legislations and regulations to support the global vision of carbon neutrality. From a listed company's perspective, the Group acknowledges the increasing requirements of climate-related information disclosures.

The Group commits to environmental protection and strives to comply with disclosure requirements, however, this may increase the risk of higher operating costs and maintenance costs.

Market and reputational risk – short to medium term The shipping market is constantly changing, and the increasing attention by the public towards environmental protection led to the change in customer behavior and preference. This change in market pattern led to a change in the demand of the shipping industry – increased demand for green transportation represents an increase in demand for low-sulphur oil with constant performance thus resulting a higher running cost.

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.

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 seafarers on board are trained and certificated in accordance with STCW Convention.

Health and safety

In order to foster the environmentally friendly practices in our vessels, we follow an internal safety management manual, which defines our objectives and commitments in complying with all applicable national and international rules and regulations, code and guidelines and standards recommended by IMO, flag states and other maritime industry organizations. These codes and guidelines and standards, together with our safety manual have been kept ashore and on our fleet and strictly followed by our team.

For the purpose 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. The Group is committed to preventing any work-related injury to its employees, and has complied with relevant laws and regulations to provide a safe working environment and protecting employees from occupational hazards. During the years 2024 and 2023, there were no work-related fatalities.

During the year, absence due to sickness was 1.4% (2023: 1.1%) of the total hours worked by employees. Work-related injuries or accidents was 0.8% (2023: 0.5%) of employees of the Group. During the year, the Group was not aware of any non-compliance to health and safety related rules and regulations.

Development and training

The Group recognizes the importance of skilled and professionally trained employees to its business growth and future success. Hence, it is firmly believed that it is necessary to improve employees' professional standards continuously through training. We encourage and support all employees taking training courses and workshops that are relevant to job duties to enrich their knowledge and perspective in discharging their duties.

Management and senior staff had access to a variety of training activities, including attending seminars, workshops and conferences and receiving regulatory updates relevant to their business and duties, anti-corruption practices as well as their directors' duties and responsibilities when acting as directors. They received sufficient internal and external training to better equip themselves to fulfil their roles in supporting the Group.

We ensure all seafarers on board are trained and certificated in accordance with STCW Convention. Our owned vessels are also subject to the laws, regulations and rules of each country and port they visit. We have developed policies and procedures intended to ensure our compliance with these laws, regulations and rules. In order to reduce the number of incidents that may happen or minimize the level of accidents on vessels, we arrange emergency drills for seafarers to deal with unexpected situations. We also hold emergency personnel training. Anti-piracy drills are also performed periodically for our seafarers for the proper procedures when there is a pirate attack.