EXMAR report 2025

3.1 Sustainability at EXMAR 77 3.1.3.3 DOUBLE MATERIALITY RESULTS 3.1.3.3.1 Connecting our material IROs to EXMAR’s sustainability strategy Material IROs related to climate change (E1) Related to climate change, eight impacts and one financial risk were assessed as material for EXMAR. Positive impacts 1. Fuel transition: At EXMAR, we explore more sustainable options within our sector, focusing on ‘gas molecules as transition’ through the projects we execute on sustainable energy sources and energy security, amongst others. We also provide our knowledge and expertise to our clients, aiming to assist them with methods to transition away from wood burning, coal and oil, towards alternative low carbon fuels (gas molecules). 2. Ammonia as a fertilizer: Despite the considerable environmental impact of grey ammonia, it is important to acknowledge that ammonia-derived nitrogen fertilizers are supporting the food production of nearly half the global population. This underscores the critical role of ammonia transport in the fight against hunger and in ensuring global food security. Negative impacts 1. Investment portfolio: Most of our fleet is part of our joint ventures. Although we do not report the main part of emissions related to these vessels – as these are related to on-hire fuel and, hence, to be attributed to the charterparty – we acknowledge the considerable size and impact of these emissions. 2. Vessels sailing on conventional fuel: Until today, many of the vessels sail on conventional fuels emitting GHG, encompassing a significant part of our scope 3 emissions (as the charterer buys the fuel). Some of the vessels sail on alternative fuels, such as LPG or biofuel. 3. Infrastructure units using conventional fuel: The infrastructure units use conventional fuel to operate. 4. GHG emissions related to production, transport of spare parts and services, and business travel: The operation and maintenance of the fleet, related crew travel and procurement, is mainly organized in house. 5. Transport and transformation of hydrocarbons: Transport and transformation of hydrocarbons is EXMAR’s core business. There is indirect contribution to GHG emissions through EXMAR’s clients since hydrocarbon extraction leads to a lot of GHG emissions and is not a renewable energy source. 6. Transport of ammonia: EXMAR mainly transports grey ammonia (emission intensive extraction). Thereby, we indirectly contribute negatively to GHG emissions. Although the vessels are capable to carry low carbon ammonia as well and ready to support the industry when the need to transport low carbon ammonia rises. Risks In addition to the above, we have defined ‘ Energy transition’ as a material risk for EXMAR. Energy transition is ongoing, moving away from oil and gas towards increased electrification, deployment of renewable energy, distribution and storage infrastructure, as well as the adoption of emerging low-carbon technologies such as biogas, green hydrogen and ammonia. We try to change this risk into an opportunity by investments in vessels sailing on alternative fuels (LPG or ammonia) or vessels and infrastructure units with the ability to use shore power. The energy transition risk was identified as a climate- related transition risk. No material climate-related physical risks were identified in EXMAR’s operations or along the value chain. We do very thorough safety engineering studies while constructing vessels (ships or infrastructure units), ensuring they are designed to withstand storms and to combat the effects of climate change at sea. Furthermore, it must be noted that our current assessment of transitional risks only uses one climate- related scenario: the IMO trajectory which aims to limit global temperature rise to well below 2°C above pre-industrial levels and to pursue efforts to limit the increase to 1.5°C. Although the shipping sector is not directly included and aligned with the Paris Agreement, EXMAR firmly believes that addressing the climate crisis requires collective action that transcends borders and spans the seas. In the future, different climate-related scenarios will be assessed to include more than one scenario and make the assessment more robust. When different climate-related scenarios are included, both physical and transition risk identification will be reevaluated. In this analysis, we will make sure that the link is made with EXMAR’s business plan and the related financial statements.