KCC: Environmental Strategy 2023-50 - Paving the way for cost-effective decarbonization in shipping

29 Mar 2023 07:00 CEST

Oslo 29 March 2023: Our course is set on a 45% reduction in carbon intensity by
2030 compared against 2018, driven largely by substantial efficiency
improvements. With our combination trading already delivering 30-40% lower
carbon intensity than our competitors, we are front and center to deliver on the
transition to cost-effective, low carbon shipping says CEO Engebret Dahm.

Three years on from the release of KCC’s first Environmental Strategy in 2020,
shipping is falling behind schedule on IMO’s 2030 targets as the choice and
availability of new fuels, technology, and future regulatory framework remains
highly uncertain. Dahm comments: “Given the uncertainty surrounding our
industry, our current focus is on delivering sustainable and cost-effective
decarbonization through efficiency improvements while preparing for the future
transition to new fuels. Our decarbonization journey has a unique starting point
with our combination carriers, and we are full steam ahead to reach our revised
ambitions.”

Principal ambitions 2023-26
Reduce carbon intensity by 30% compared to 2018. KCC will employ the following
key levers towards this objective:
- Optimize trading efficiency – Customer collaboration is essential, with
sustainability-linked freight contracts having the potential to play a key role.
New trading rules including a shadow carbon pricing will increase incentives for
the most carbon efficient trading.
- Perfect voyage efficiency – Fleet digitalization and continued investment in
people onboard and onshore.
- Improve energy efficiency – Continued deployment of ongoing and new energy
efficiency initiatives in the fleet.

Principal ambitions 2027-30
Reduce carbon intensity by 45% compared to 2018. KCC will employ with following
key levers towards this objective:
- Introduce biofuels – Sustainable biofuels shall constitute a minimum 15% the
fuel mix.
- Phasing in zero emissions fuels and vessels – Fleet renewal with an ambition
to see the introduction of the first zero emission vessel within 2030.
- Seek regulatory and customer support to spur the fuel transition – Based on
regulatory and customer support, get the first zero-emission vessel in service
and start using zero-emission fuels in daily operations. KCC is unlikely to
succeed advancing far with the targeted fuel transition on its own.

Looking ahead (-2050)
Achieve net zero across all operations. KCC has a competitive advantage when it
comes to:
- Delivering on cost-effective decarbonization – Unique and efficient solutions,
experience and competence, and close customer cooperation play to KCC’s
strengths.
- Being well prepared to meet future regulatory requirements – KCC’s superior
carbon efficiency will offer an important competitive advantage when new
regulations are implemented, for example with trades to and from the EU after
the implementation of shipping into EU ETS from 2024.

The Updated Environmental Strategy 2023-50 and two Environmental Strategy
podcast interviews with Engebret Dahm are available on KCC's website.

Invitation to presentation of 2023-50 Environmental Strategy
In connection with the release the updated Environmental Strategy for 2023-50,
Klaveness Combination Carriers ASA (“KCC”) will hold a webcast presentation at
09:30 CET on Wednesday 29th March.
To follow the webcast live go to www.combinationcarriers.com/investor-relations
or copy and paste the following link to your browser:
https://www.combinationcarriers.com/kcc-environmental-strategy-2023-50

Questions for the Q&A session can be submitted in writing through the webcast
solution during the presentation.

About Klaveness Combination Carriers ASA:
KCC is the world leader in combination carriers, owning and operating eight CABU
and eight CLEANBU combination carriers. KCC’s combination carriers are built for
transportation of both wet and dry bulk cargoes, being operated in trades where
the vessels efficiently combine dry and wet cargoes with minimum ballast.
Through their high utilization and efficiency, the vessels emit up to 40% less
CO2 per transported ton compared to standard tanker and dry bulk vessels in
current and targeted combination trading patterns.

For further queries, please contact:
Engebret Dahm, CEO, Telephone +47 957 46 851

More information:
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