A P Møller Mærsk A/S : Maersk Sustainability Report 2020

A.P. Møller - Mærsk A/S Esplanaden 50 DK-1098 Copenhagen K

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Company reg. no. 22756214www.maersk.com

ALL THE WAY

A.P. Møller - Mærsk A/S

2020

Sustainability

Report

Contents

Table of contents

4

Introduction

• 4 Business model and performance highlights

• 6 Letter from our CEO

• 8 Strategy, governance and materiality

About the report

This is the Annual Sustainability Report of A.P. Møller - Mærsk A/S (hereinafter referred to as A.P. Moller - Maersk or Maersk as the consolidated group of companies and A.P. Møller - Mærsk A/S as the parent company). The report covers activities in the 2020 calendar year. Our approach to sustainability reporting is to focus on material issues and activities, in line with stakeholder concerns and relevance to our business and society in terms of context, completeness and balance. We strive for optimal accuracy, timeliness, clarity and reliability in the way we communicate. This report also represents our statutory statement on social responsibility, underrepresented gender and diversity in accordance with sections 99a & b and 107d of the Danish Financial Statements Act.

As a supplement to the Annual Sustainability Report, we prepare an ESG data overview of key performance indicators as well as SASB and TCFD index tables. The ESG overview can be downloaded at: https://investor. maersk.com under files for download at the release of the Annual Report.

Previous years' data and our UN Global Compact Communication on Progress table are also available online. Please visithttps://www.maersk.com/about/sustainability/reports.

• 12 Strategic sustainability priorities

  • 13 Enabling sustainable trade

  • 16 Decarbonising logistics

  • 23 Sustainability in our end-to-end offerings

• 25 Responding to a pandemic

Safety, page 30

Decarbonising logistics, page 16

29

• 42 Progress overview

• 44 Data and assurance

44 Performance data

46 Sustainability accounting principles

48 Independent assurance report

Responsible business practices

• 30 Safety

• 32 Responsible ship recycling

• 34 Diversity and inclusion

• 36 Employee relations

• 37 Responsible procurement

• 38 Air emissions

• 39 Ocean health

• 40 Anti-corruption

• 41 Responsible taxEnabling sustainable trade, page 13

Business model and performance highlights

What we do and how we create value

A.P. Moller - Maersk enables its customers to trade and grow by transporting goods anywhere. We work to provide customers with end-to-end logistics products and services, taking complexity out of global value chains.

Stakeholder relationships and partnerships

We rely on constructive relationships with e.g. customers, suppliers, peers and authorities to maintain supportive framework conditions. See our key partnerships on p. 10.

Technology and IT

Technology and IT are key to enhancing our operational performance and solutions for our customers.

Assets and end-to-end delivery network

Our assets, supplier relationships and expertise in end-to-end delivery networks ensure our customers resilient supply chains.

We have a strong balance sheet and are committed to remaining investment grade-rated.

Start destination

RESOURCES

Our brand

For more than a century, we have built partnerships with customers, enabling them to prosper by facilitating global trade.

Our talented and diverse group of 80,000 employees live our core values every day as they help customers realise their ambitions.

Our business relies on natural resources, in particular steel (the main component of our vessels) and oil for fuel.

VALUE CREATED

Our people bring key skills and capabilities to our business and in turn we must keep them safe and engaged while offering interesting career paths in enabling global trade. Read about our work on safety on pp. 30-31.

For our people

For the environment

Our industry is a significant contributor to global GHG emissions, and we are committed to decarbonising our operations. through investments and collaboration. Read more on pp. 16-22.

Rail freight

With global presence and potential for impact comes the responsibility and opportunity to ensure open, inclusive and sustainable trade. Read more on pp. 13-15.

For society

For our investors

In our transformation to become the global integrator of container logistics, we continue to innovate and grow shareholder value.

Letter from our CEO

Letter from our CEO

2020 was year of contrasts. While the pace of modern life slowed down due to restrictions or lockdowns, trends and change agendas on digitisation and sustainability accelerated during the COVID-19 pandemic. While some industries came to a sudden halt others surged. And while lives and livelihoods were lost at tragic rates, human ingenuity and adaptability rose to new heights.

Even though borders closed, air traffic stopped and roads blocked across the globe, global supply chains remained open. The geographical presence and leadership position of A.P. Moller - Maersk (Maersk) enabled us to find new ways of keeping essential goods moving for customers and societies, as they kept businesses running and fought the virus. Just as we in our company focused on protecting our employees, who play an instrumental role in moving global trade while dealing with long shifts at sea and disruptive, new routines on shore. I remain tremendously proud to experience how we responded to this global emergency by showing resilience,innovation and a natural willingness to care for colleagues, serve customers and help society respond and recover. I am at the same time saddened by the fact that the COVID-19 virus has claimed the lives of some of our colleagues.

Sustainability as a fully integrated business priority

Even as the urgent priorities of the pandemic and our business transformation have kept us busy, sustainability remains at the top of our agenda, and we continue our commitment and support for the principles of the United Nations Global Compact. We see an acceleration in expectations from all stakeholders, not least customers, investors and employees. In 2020, we updated our sustainability priorities to further integrate sustainability into our business strategy, and we are accelerating our efforts to decarbonise shipping.

The pandemic has only reinforced our role in multiplying the benefits of trade and in making these accessible to all so that more people and businesses can be part of a global, open

"I strongly believe that we, as an industry leader and with the resources available to us, have an obligation to do all we can to get to a carbon neutral fleet as fast as possible."

and inclusive trading system. Towards this end, we work to reduce complexity by digitising global trade. As physical lockdowns moved more customers online during 2020, we saw significant growth in our digital solutions, such as Maersk Spot, the Maersk app and Twill.

A step-up on decarbonisation Decarbonising logistics is where we can and must move the needle the most for sustainable development. Maersk remains fully committed to our ambition of eliminating greenhouse gas emissions, as we continue to work towards net-zero emissions from our ocean activities in 2050; a 60% relative reduction in emissions from shipping by 2030 compared to 2008, and investigating how we can expand our net-zero ambition to cover our full operations and value chain across all emission scopes. We recognise that climate action is a strategic imperative for our company and have redesigned our organisation in order to embed the agenda and ensure collaboration across our business activities.

In 2020, we began a process to step up our efforts on decarbonisation. I strongly believe that we, as an industry leader and with the resources available to us, have an obligation to do all we can to get to a carbon-neutral fleet as fast as possible. We will not be using transition fuels, but will instead leapfrog directly to net zero fuels. The launch of the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping in 2020, made possible by our majority shareholder, the A.P. Moller Foundation, together with a group of industry-leading players, is an important step in aid of our commitments.

As Maersk 's presence grows on land to offer integrated logistics solutions, so does our responsibility and commitment to help our customers decarbonise their global supply chains end to end. This is an integral part of our strategic promise of serving all our customers' transportation and logistics needs, and we will engage with customers and industry partners to develop standards and solutions to support this green transition.

Strengthening the foundation

We are strengthening the responsible business practices that constitute the foundation of our sustainable end-to-end offerings to our customers as well as our own operations.

Guided by our core company values, our commitments to international standards and guidelines, and with high expectations from customers, investors, regulators, employees and other stakeholders, we continue to address challenges across our operations and supply chains, including key areas such as ship recycling and safety.

We have taken on the task of using our leverage to drive responsible practices in the ship recycling industry. After four years in Alang, India, we know that this is possible, and with still larger vessels in our fleet nearing end of life, it is imperative that we create opportunities for responsible ship recycling at yards outside OECD countries. We are engaging actively to find options that ensure enforcement of international conventions while also enabling global opportunities for responsible ship recycling that benefit both shipowners and local communities.

Failing safely

The foundation for safety in Maersk is to build capacity for 'failing safely', acknowledging that even while all precautionary measures must be applied, some accidents and incidents are likely to still occur, but the implications of these should be as small as possible.

One of our contractors lost his life while working for Maersk in 2020. This saddens me deeply and emphasises that we need to do more to manage our risks and build the capacity we need to avoid such a tragic event.

To this end, we centralised the organisation of our safety work in 2020. The new organisation reinforces that Maersk has one shared safety strategy which is implemented and enforced equally across the company.

The decision is driven by the need to match and mirror the integrated company that Maersk is becoming, and also by the need to establish a stronger link between the company's strategic priorities and the implementation level, to ensure that we continue to learn and manage risks by listening to our frontline employees. Most importantly to ensure the continuous safety and security of our people, but also to assure our customers that this is the case when they leave their supply chain obligations in our hands.

In simple terms, we will not be satisfied until we reach our ambition of eliminating fatalities and severe injuries and provide safe and resilient products and services to our customers.

Social movements a timely reminder 2020 saw the renewed strength of social movements to promote race and gender equality.

Our global presence means that we are affected by events and movements regardless of where they take place. Notable examples such as Black Lives Matter in the US, which has spilled over to many other countries, and new waves of #metoo serve as timely reminders that we must continue conversations on diversity and inclusion and take action where needed.

Maersk is a values-driven company. We treat our colleagues and partners with respect and dignity, and we do not tolerate discrimination or harassment of any kind. It is as simple as that.

In 2020, we have addressed these issues in our organisation and clarified how we deal with them. We have clear policies in place and a whistleblower system with a range of reporting options.

For Maersk, 2020 was a year of crises in global health and economies, lockdowns, closed borders and distress - but also of new opportunities for our company, accelerated progress towards our strategic goals and a chance to see what we as leaders and our employees are truly capable of.

In the coming year we will be applying our capacity to the global distribution of vaccines and to keeping supply chains open, and as such we will continue to play our part in enabling open, inclusive and sustainable trade - together.

Søren Skou

CEO of A.P. Møller - Mærsk A/S