Container shipping is a low-carbon form of transport compared to air, road, and rail freight. A Green House Gas study by the International Maritime Organization (IMO) examined comparative emissions across different transport modes for the movement of one tonne of cargo one kilometer, with the results shown in the chart below.

Emissions Range by Transport Type

As a provider of high-specification containerships, Global Ship Lease is committed to the protection of the environment in all our activities. We recognize that sound environmental management is of fundamental importance to operating a responsible business, as is maintaining a safe and healthy workplace.

The regulatory environment significantly affects the ownership and operation of ships. We are subject to international conventions and codes as well as national, flag state and local laws and regulations in force in the countries in which our ships may operate or are registered. Among other things, such regulations govern the management and disposal of hazardous substances and wastes, the clean-up of oil spills and other contamination, greenhouse gas emissions, water discharge and ballast water treatment, and ship recycling.

Global Ship Lease recognizes and adheres to all applicable laws, regulations, guidelines and other requirements and maintains the necessary permits or approvals where required by national and local governmental and non- governmental organizations. Notable regulatory frameworks governed by the International Maritime Organization (IMO), which are designed to protect the environment, and with which we comply include:

• SOLAS & MARPOL: compliance with over-arching industry regulations and standards, including those related to the use of low sulfur fuel under IMO 2020, and the selective installation of Exhaust Gas Cleaning Systems (EGCS, or “scrubbers”);
• Ballast Water Management Convention: installation of ballast water treatment systems in compliance with IMO and, where applicable, US Coast Guard (USCG) standards;
• Energy Efficiency Operational Indicator (EEOI) - MARPOL Annex V: the energy efficiency of all our existing ships is monitored, to facilitate continuous improvement.
• Energy Efficiency Design Index (EEDI) - MARPOL Annex VI: if Global Ship Lease were to contract newbuildings, vessel specifications and design would ensure that stringent EEDI energy efficiency standards were met and exceeded;

Global Ship Lease complies with EU Monitoring, Reporting, and Verification (MRV) requirements regarding Green House Gas (GHG) emissions.

Furthermore, we are members of the Getting-to-Zero Coalition: an alliance of over 90 companies within the maritime, energy, infrastructure, and finance sectors, supported by key governments and IGOs. The Getting-to-Zero Coalition is committed to getting commercially viable, net zero-emission ships powered by net zero-emission fuels into operation.

Our ships carry an Inventory of Hazardous Materials (IHMs) to facilitate responsible end-of-life recycling in accordance with the Hong Kong Convention (HKC).

Global Ship Lease is committed to maintaining high operating standards for all our vessels - emphasizing operational safety, quality maintenance, continuous training of officers and crews and compliance, as applicable, with United States and international regulations.