Welcome to Performance Shipping Inc.’s annual sustainability report (the “Report”), where we communicate our approach, actions, aspirations, and progress in meeting our sustainability commitments to our shareholders and stakeholders.
It is the fifth consecutive year we have prepared our reporting with reference to the Global Reporting Initiative (GRI) Standards. For a full list of disclosures referenced in this Report, please refer to the GRI Content Index on page 49.
In addition to the GRI Standards, we remain dedicated to the principles of the United Nations Global Compact (UNGC) and
Sustainable Development Goals (UN SDGs).
The UNGC encourages companies to align their operations and strategies with 10 universally accepted principles covering areas of human rights, labor, environment, and anti-corruption, and to take action in support of UN goals and issues embodied in the SDGs.
These principles, derived from significant international agreements such as the Universal Declaration of Human Rights, the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the UN Convention against Corruption, shape our values and approach to conducting business.
Over the next 12 months, we will continue to work towards putting together an action plan to outline our next steps towards integrating the principles of the UN Global Compact into our operations.
Message from our CEO
I am pleased to present the 2024 Sustainability Report of Performance Shipping Inc., which details our activities during the past year with respect to the Company’s environmental, social, and governance (ESG) policies and practices. I encourage you to review this report which reflects our belief that responsible business practices are vital to delivering long-term value for our stakeholders, our people, and the planet. Mission, Vision and Values
The Company’s stated vision is: To become a leader in our industry via continuous improvement in every aspect of our operations. At the same time, our mission is: To provide safe and environmentally responsible seaborne transportation of petroleum products around the world. We recognize that meaningful progress on ESG matters is essential to the fulfillment of our vision and mission.
To that end, Performance Shipping is a signatory of the United Nations Global Compact (UNGC), and we strive to align to its core principles regarding such areas as human rights, labor, environment and anti-corruption. Our efforts to align priority Sustainable Development Goals (SDGs) as set forth in the UNCG, as well as our sustainability reporting with reference to the Global Reporting Initiative (GRI) standards, are documented in this Report.
We are proud that Performance Shipping was honored with the Bronze Governance Leader Award at the 2024 ESG Shipping Awards International, in recognition of our commitment to sound corporate governance, ethical business practices, and transparency. Environmental Responsibility
As a contributor to the global seaborne trade economy, we are acutely aware of the importance of maintaining a responsible approach to environmental issues. This is reflected in our efforts to maintain a modern, energy-efficient fleet; to minimize our environmental impact; and to operate in a climate-aware manner.
An important fleet modernization initiative in 2024 was our contract to acquire a modern eco- design LR1 chemical/product oil tanker, featuring the latest high specification engine and emission systems, as well as scrubber and water ballast treatment systems. This represents our fourth shipbuilding contract in the past two years, and joins three similarly-equipped modern
LNG-ready LR2 oil tankers. Currently under construction, the vessels are scheduled for delivery between mid-2025 and January 2027. It is also noteworthy that 100% of our current fleet employs non-toxic antifouling coatings to help protect marine life. We continue to make targeted investments in our fleet and operations to reduce emissions, increase fuel efficiency, and support global decarbonization goals. In 2024, we began implementing telemetric emissions monitoring across the fleet, and are exploring further reductions through voyage optimization and future use of alternative fuels We have continued to work diligently to meet our key environmental targets. For example, greenhouse gas (GHG) emissions fell by 13.6% for 2024 vs. 2022, as measured by the amount of CO2 emitted per tonne-mile. Total energy consumption in 2024 declined by 4.8% vs. 2022.
Social Considerations
In a year marked by geopolitical uncertainty and regional conflicts that have disrupted global supply chains and trade routes, the safety and well-being of our crew remains our highest priority, and we continue to monitor regional developments to protect our people and maintain business continuity.
Our people are at the heart of everything we do. We know that our success depends on the well-being and commitment of our people — at sea and on shore. We are committed, first and foremost, on providing a safe, healthy and supportive work experience for our employees. We invest in training, development, and well- being initiatives, recognizing that engaged and resilient teams drive both operational excellence and long- term sustainability.
In 2024, we strengthened our support for employee well-being—both at sea and ashore—by placing renewed emphasis on mental health and internal communication. For our seafarers, we recognize the uniquchallenges of life at sea, including long periods away from home and limited access to support networks. We continue to address these through onboard training, safety programs, and initiatives that promote mental wellness. For our shore-based teams, we maintain a supportive work environment that encourages professional growth and open communication. Across the organization, we aim to foster a culture of respect and safety, ensuring every team member feels valued.
Governance Excellence The Company’s commitment to strong corporate governance and ethical business conduct is reflected in transparency, accountability and effective decision-making across all levels of our organization. We remain unwavering in upholding the highest governance standards; our Board of Directors and designated committees oversee ESG risk management, financial matters, executive compensation, and the overall management of our business.
In the area of ethics and anti-corruption, we have adopted a rigorous Code of Business Conduct and Ethics, supported by a robust whistleblower program. Reflecting our commitment to responsible purchasing practices, we conduct annual evaluations to ensure that all suppliers operate in accordance with our high standards.
Given the critical importance of cybersecurity across all aspects of corporate operations, we maintain a well- defined cybersecurity framework that includes vigorous data protection, vulnerability detection, and incident response protocols. I am pleased to report that the Company experienced no cybersecurity incidents in 2024.
A Continuing Journey
We believe that sustainability is, by its nature, an ongoing journey requiring both constant vigilance, adaptability and continuous improvement. As we look ahead, we remain focused on enhancing our environmental impact, supporting our people, strengthening governance, and aligning our business strategy with the values that define responsible shipping. Our solid results to date have been made possible by the sound guidance of our Board of Directors and the energetic support of our team members. We thank them for their efforts and look forward to reporting continued progress on our sustainability journey in the years ahead.
Sincerely,
Andreas Michalopoulos
CEO
Source: Performance Shipping Inc.