TOWARDS A BETTER WORLD :: BW LPG ANNUAL REPORT 2019

SUSTAINABILITY

OUR APPROACH

Our sustainability report makes reference to the Global Reporting Initiative (GRI) Reporting Standards, which have allowed for comprehensive examination of our Company's practices, and in turn set the foundation for better stewardship and responsible investment. Understanding the challenges of our time demonstrates our capability and adaptability to change and enhances our reputation as a Company with integrity and a keen focus on sustainability for the future. We work hard to comply fully with all regulations, including the IMO 2020 regulation which places a 0.5% global sulphur cap on marine fuels and look ahead to the IMO's 2050 GHG Strategy which aims to reduce GHG emissions by 50% by 2050 (against 2008 baselines). We continue to work on measures to enhance fuel efficiency and reduce greenhouse gas emissions across our fleet, including pioneering the development of LPG dual-fuel vessels.

In 2018, we discussed how we aligned with seven UNSDGs and threw the spotlight on topics such as ship recycling, innovation in engine propulsion and workforce diversity. In 2019, we continue with our efforts to structure our Sustainability Report along the principles provided by the GRI, and ground our aspirations in data and case studies.

A cross-department team within BW LPG, represented by various Heads of Departments and senior colleagues of the Company, meet regularly to discuss our sustainability approach and focus topics. This is led and supported by the entire Executive Management Team with their deep maritime experience.

OUR STAKEHOLDERS

At BW LPG, we focus on topics that can reasonably be considered important to reflect BW LPG’s Environmental, Social and Governance (ESG) impact, or influence the decisions of stakeholders. What we understand as focus topics can also be determined by international standards and agreements, broader societal expectations, and by our influence on upstream entities, such as suppliers, or downstream entities, such as customers and shipyards. A list of 16 focus topics was consolidated through discussions with multiple stakeholders (Table 1), and forms the foundation of our sustainability approach (Diagram 1).

Regular dialogue with our stakeholders, is essential to the way we do business at BW LPG. Our stakeholders include employees (current and potential), crew, customers, investors, bank partners, flag states, industry groups, suppliers and third party providers.

The table below summarises the highlights of our stakeholder engagement in 2019.

Stakeholder	Platforms for Engagement	Stakeholder Expectations	Follow-up from BW LPG
Crew	Crew and shore conferences Vessel visits Cadet programmes Shore placement opportunities Emails Conference calls Induction/Familiarisation	Competitive and timely wages Clear and timely communication Career development Job security Respectful and safe workplace Medical and social benefits Quality of crew Effective appraisals	Introduced new anti-harassment and anti-bullying policy Fleetwide implementation of BW Wellness Programme Introduced new training programmes Enhanced recruitment and selection process
Employees	Townhalls Intranet Emails Meetings Formal appraisals Annual Employee Engagement survey	Career development Competitive benefits Support diverse workforce Respectful and safe workplace Work-life balance Reliable and industry-leading technology Clear and timely communication Corporate sustainability strategy	Revamped intranet platform to make Company communications and information easily accessible Renovated Singapore office to provide a more conducive workplace Engaged external consultants to conduct gap analysis in sustainability efforts Created sustainability approach
Customers	Website Industry events Regular meetings Customer appreciation events Emails	Available vessels at competitive rates Well-maintained vessels Compliance with all regulations Good customer service	Continued focus on 24-hour customer service Continued focus on fleet maintenance
Investors	Roadshows Investor presentations Meetings Annual Reports Media coverage Press releases Emails	Return on investment Transparent and credible reporting Easily accessible reports and presentations Investment in line with Poseidon Principles	Active participation in major industry events as speakers to share expertise Earnings presentation live webcast and Q&A session to answer any queries Continued regular dialogue and meetings Revamped website to make information easily accessible and provide an intuitive user experience Communicated sustainability initiatives during investor presentations
Government and policy makers	Regular dialogue Topic-specific conferences and events Media coverage Participation in industry coalitions and study groups Emails	Provide safe and reliable maritime energy transportation Offer innovation solutions to decarbonise Invest in local presence	Leverage BW LPG’s scale and expertise to position as a global leader on clean energy and sustainable shipping Active participation in major industry events as speakers to share expertise Members of Singapore Shipping Association, BIMCO, MACN and World LPG Association (WLPGA)
Suppliers	Website Social media Industry events Regular meetings and calls Emails	Prompt payment Clear communications over deliverables	Commitment to pay suppliers within contractually agreed period upon receipt of invoice Continued efforts at clear communications over deliverables
Potential talent	Website Social media Speaking engagements Media coverage Emails	Career development Competitive benefits Workforce diversity Work-life balance	Active participation in major industry events as speakers to share expertise Revamped website to provide more information about the Company Internship/ Management Associates’ Programme

Above: Table 1 – Summary of Stakeholder Engagement and Outcomes

POWERED BY LPG

Diagram 1- Sustainability Reporting Focus

OUR SUSTAINABILITY APPROACH

Above: Diagram 2 – BW LPG's Sustainability Approach

SUSTAINABILITY DEVELOPMENT GOALS REFERENCE

At the core of our sustainability approach is the purpose of our Company – where we work towards a better world. We want to take the lead in transitioning the world towards cleaner energy, and in the process, be a trusted, transparent and reliable partner for our stakeholders. We have identified six non-negotiable focus topics and remain fundamentally committed to eight more. These focus topics touch directly or indirectly on many of the UNSDGs and the following table (Table 2) shows our efforts on these fronts.

Focus Topic	Zero Harm	Security at Sea	Spills to Sea	Emissions to Air	Inclusion and Diversity	Customer Focused Operational Excellence
Importance	Non-Negotiable	Non-Negotiable	Non-Negotiable	Non-Negotiable	Non-Negotiable	Non-Negotiable
UNSDG
Targets met?
Goal	To achieve Zero Harm to People, Environment, Cargo and Property with a commitment to return safely to our families and friends	To protect our crew and assets from risks in troubled times and waters, and ensure continued flow of clean energy globally	To protect our oceans and seas from pollution arising from our operations	To reduce our environmental impact and comply with global emissions regulations	To make BW LPG one of the best places to work, where we treat each other with respect and work together to deliver the industry of tomorrow	To be our customers’ first choice when it comes to maritime LPG transportation by delivering best in class services
2019 targets	0 fatalities LTIF ≤0.5 Complete Safety Culture Survey to assess strengths and weaknesses in fleet culture Continuous improvements in all safety related area	0 fatalities due to security incidents 0 injuries due to security incidents ≥3 days lost due to security incidents	0 spills to sea 0 non-compliance with IMO Ballast Water Management Convention 0 non-compliance with MARPOL Annex I (oil), II (noxious liquid substances), and IV (sewage) regulations 0 non-compliance with internal waste management policies	Full compliance with IMO 2020 emissions regulation to burn fuels with sulphur content below 0.5% ≤10% variance between actual vs forecasted fuel efficiency	Continued reinforcement of Vision and Values All new hires to attend a Vision and Values workshop within their first year with Company 0 discrimination complaints	Implement data-centric approach to business considerations Enhance direct customer interaction Commercial utilisation >95% of commercial available days
2019 progress	0 fatalities in 2019 LTIF of 0.25 Completed Safety Culture Survey Established a Visible Leadership programme	0 fatalities due to security incidents 0 injuries due to security incidents 0 days lost due to security incidents	0 spills to sea 0 non-compliance with IMO Ballast Water Management Convention 0 non-compliance with MARPOL Annex I (oil), II (noxious liquid substances), and IV (sewage) regulations 0 non-compliance with internal waste management policies	2 scrubbers were installed, and 1 scrubber-fitted TC-in vessel delivered Successfully transitioned all vessels to low sulphur fuel options 3.8% variance between actual vs forecasted fuel efficiency	Vision and Values workshops were conducted for all new shore employees 0 discrimination complaints	Customised risk and exposure application completed "Light" CRM model being explored 95.1% commercial utilisation rate
2020 targets	0 fatalities LTIF ≤0.5 Launch Visible Leadership programme Develop safety campaigns and on board training programmes for Bridge and Engine departments Zero Harm Art Competition and Photo Competition to help raise awareness and enforce a conscious reminder to all to stay safe	0 fatalities due to security incidents 0 injuries due to security incidents ≤3 days lost due to security incidents 1 drill with piracy scenario	0 spills to sea 0 non-compliance with IMO Ballast Water Management Convention 0 non-compliance with internal waste management policies 0 non-compliance with MARPOL Annex I (oil), II (noxious liquid substances), and IV (sewage) regulations	Retrofit 4 vessels with LPG dual-fuel propulsion engines and prepare to retrofit another 8 vessels in 2021 0 delay in planned drydockings to optimise vessel performance Install 3 scrubbers	Continued reinforcement of Vision and Values All new hires to attend a Vision and Values workshop within their first year with Company ≤3 days to respond to discrimination complaints	Track customer feedback and interaction Explore full potential of available digital tools Continue to improve customer relationships on all levels Hold customer engagement events Commercial utilisation >95% of commercially available days

Focus Topic	Crew Wellness	Talent Development and Retention	Innovation	LPG in Communities
Importance	Commitment	Commitment	Commitment	Commitment
UNSDG
Targets met?
Goal	To continuously improve the physical and mental health of our seafarers	To find and develop talented and dedicated people with values that are aligned with BW LPG	To encourage a culture of innovation and creativity, as we strive to offer even better solutions for customers	To partner with governments and bring LPG to communities which still rely on traditional fuels for cooking
2019 targets	Fleet-wide implementation of BW Wellness Programme Establish emotional helplines for all seafarers Educate seafarers on mental health	Continue promoting from within Offer training and talent development opportunities ≤10% attrition rate Hold employee engagement events	To foster innovation within the organisation by encouraging independence of thought regardless of job title and delegating responsibility	Participate in WLPGA initiatives and explore partnership opportunities to bring LPG to communities
2019 progress	Fleet-wide implementation of BW Wellness Programme 3 emotional helplines available Started training on mental health for senior officers	5 staff promoted 12% attrition rate¹ Conducted Pulse Survey, with satisfactory results Held team building event, Year End Dinner, cultural celebrations and Lunch and Learn events ¹ Attrition was mostly from junior roles	Launched Product Services division to provide low-risk and fully-integrated product delivery service to customers	Took part in WLPGA forums with representation by BW LPG CEO Organised a "Running for Life" Marathon where the Company made donations to WLPGA for employees' participation in an event that also encourages a healthy lifestyle
2020 targets	All vessels to complete 52-week workbook / activities Mental Health training for Philippines office Collect and analyse statistical data on use of emotional helplines Launch Competency Management System	Continue promoting from within ≤10% attrition rate Conduct Pulse Survey Conduct >3 employee engagement events Launch High Potential Development Programme Launch Shipping Trainee Programme Participate in ≥1 university outreach event	Continue to foster innovation and creative thinking within the organisation	Continue to participate in WLPGA initiatives Explore partnership opportunities to bring LPG to communities

Focus Topic	Regulatory Compliance	Anti-bribery and Anti-corruption	Asset Management	Waste Management
Importance	Commitment	Commitment	Commitment	Commitment
UNSDG
Targets met?
Goal	To ensure compliance with relevant international maritime regulations governing shipping and energy transportation such as EU Monitoring, Reporting and Verification (MRV) of CO2 emissions and IMO Data Collection System (DCS) on fuel consumption Reporting	To stand united and eliminate corruption and bribery faced by the maritime industry	To ensure optimal availability of vessels for our customers	To ensure clean seas and reduce plastic waste on board and ensure compliance with sewage regulations
2019 targets	0 non-compliance with relevant international maritime regulations	0 facilitation payments Comply with legislation on anti-corruption practices	0 Port State Control detention ≤4 SIRE inspection observations per vessel Unplanned off-hire days <2% of total calendar days	0 non-compliance with MARPOL Annex V (garbage) regulation
2019 progress	0 non-compliance with relevant international maritime regulations	0 facilitation payments Rolled out posters and crew communication with tagline "Do Not Ask; We Will Not Pay" Continued membership in MACN Global communication to commemorate UN Anti-Corruption Day	2 dry dockings as scheduled for in-house managed vessels 0 Port State Control detention 2.3 SIRE inspections observations on average per vessel Unplanned off-hire days was 0.2% of total calendar days	0 non-compliance with MARPOL Annex V (garbage) regulation
2020 targets	0 non-compliance with relevant international maritime regulations	0 facilitation payments Comply with legislation on anti-corruption practices Continue membership in MACN Global communication to commemorate UN Anti-Corruption Day	0 Port State Control detention ≤4 observations per SIRE inspection Unplanned off-hire days <2% of total calendar days	0 non-compliance with MARPOL Annex V (garbage) regulation

Above: Table2 – Summary of efforts towards focus topics in 2019