Scorpio Tankers : Download the 2020 Sustainability Report

Scorpio Tankers

Sustainability

Report 2020

KEY FIGURES 2020

Fleet vessels	Average age (years)
135	5.1

CEO STATEMENT

This is our second comprehensive sustainability report. It transparently discloses our environmental, social and governance (ESG) performance in 2020, using the Sustainability Accounting Standards Board (SASB)

Marine Transportation disclosure standard.

Sailing distance (nM)	GHG Emissions (MT)
, ,	2.33
7140 732

Health & Safety (LTIR)	Spills
0.34	0

Responding to Covid-19

While the Company has successfully adapted to industry and economic cycles since our inception, the outbreak of the global Covid-19 pandemic in 2020 was an unprecedented event. I am proud of the professional approach taken by our staff and business partners in responding to the significant and unique challenges that the pandemic presented. In this ongoing situation, our primary commitment is ensuring the safety and wellbeing of our employees. To this end, we are continuing our rollout of a vaccination program for our seafarers and onshore teams. As we move forward, we will continue to adapt our operations and support our people wherever necessary.

Low average fleet age and high environmental performance

Our fleet has an average age roughly half that of the industry's on a class by class basis. With younger, more efficient vessels we are able to achieve significantly lower greenhouse gas (GHG) emissions per unit of material transported. New technology fitted on our vessels also delivers higher environmental performance for other emissions, enabling us to meet and exceed increasingly strict environmental regulations. We see such high performance as imperative for meeting our customers' and stakeholders' expectations.

Reducing GHG emissions

More detailed information about our GHG emissions and environmental performance is included in the Environment section of this report, beginning on page 8.

Investing in human capital

We are committed to being a good employer and hold ourselves accountable to the highest social standards. Our investment in human and social capital was particularly relevant in 2020, where our people adapted quickly to challenging conditions, continued to perform optimally and achieved a significant reduction in injury rates. We are continuing our focus on diversity, training and development, and further enhancing our attractiveness as an employer to people from all different backgrounds.

Meeting increasing ESG expectations

We are acutely aware of increasing customer requirements with respect to ESG performance, alongside growing investor expectations and stakeholder interest. It is our intention to proactively meet these requirements and expectations, with this report demonstrating our commitment and achievements in that regard, to date.

We invite you to read the report and welcome your feedback.

About this report

This report presents Scorpio Tankers Inc.'s ("STNG") environ- mental, social, and governance ("ESG") performance for the calendar year 2020. The report has been prepared using the Sustainability Accounting Standards Board ("SASB") Marine Transportation Standard (2018).

Where deemed relevant, the report includes management and performance information up to the date of its publication. Some information presented in the report includes the activity of the Scorpio group of companies ("Scorpio").

Scorpio includes companies which are service providers to STNG and provide both seafarers for vessels and shoreside services. Please see STNG's 2020 Annual Report for further details on these relationships. This is the second ESG report released by STNG, following on from its inaugural 2019 ESG report. Feedback on the report is welcomed.

To provide feedback or to seek additional information regarding the contents of this report, please contact the dedicated STNG team at [e-mail].

In 2019, we established accurate baselines for all major emission types and intensity indices. This has enabled us to develop emission mitigation plans for individual vessels, as we simultaneously set our fleet-wide emission reduction targets. Our scope 1 GHG emissions reduced by 7% in 2020, compared to 2019, which was mainly driven by improved efficiency and reduced distance travelled.

Monaco, August 2021

Sincerely

Emanuele A. Lauro

Chairman &

Chief Executive Officer

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ABOUT SCORPIO TANKERS

We provide seaborne transportation

of refined petroleum products worldwide

Our vessels transport refined petroleum products on time charters or in the spot market through commercial pools operated by members of the Scorpio group of companies. The overall mix of how our vessels are employed varies from time to time based on many factors including our view of the future market conditions.

Our fleet of 135 vessels has an average age of 5.1 years, half the global average

As of December 31, 2020, our operating fleet consisted of 135 owned, finance leased, or bareboat chartered-in vessels with a weighted average age of approximately 5.1 years compared to the global active fleet average age of 10.7 years for vessels in the same classes. Our active fleet as of that date included 42 LR2, 12 LR1, 63 MR, and 18 Handymax vessels. (See further details at right.)

LR2		Long Range
VESSELS	AVERAGE AGE	GLOBAL AVERAGE	TYPICAL ROUTE: Middle East to Far East
42	4.8	(9.3)	TYPICAL CARGO: Ultra low sulfur diesel

LR1		Long Range
VESSELS	AVERAGE AGE	GLOBAL AVERAGE	TYPICAL ROUTE: Intra-FarEast
12	4.7	(11.5)	TYPICAL CARGO: Gasoline

MR		Medium Range
VESSELS	AVERAGE AGE	GLOBAL AVERAGE	TYPICAL ROUTE: USA to Europe
63	5.0	10.4	)
		(	TYPICAL CARGO: Gasoline

HM		Handymax
VESSELS	AVERAGE AGE	GLOBAL AVERAGE	TYPICAL ROUTE: Intra-Europe
18	7.8	14.6	)
		(	TYPICAL CARGO: Ultra low sulfur diesel

Global avarage = Global average age of active fleet vessels in this class

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OUR VISION

It is our vision to be the provider of choice for our customers;

to prevent injuries, casualties, and pollution	and to adapt rapidly to opportunities and
through better awareness, better tools, better	challenges across the breadth of our business,
procedures; to lead our industry with respect	outperforming our competitors.
to environmental and legal compliance;

Our approach to sustainability

Utilizing the latest generation of fuel-efficient vessels, together with our operating strategy and experienced management team, underpins our approach to sustaina- bility. We deliver superior results over time through safeguarding the environment and complying with a complex and global array of regulation.

We actively contribute to the UN Sustainable Development Goals

The United Nations Sustainable Development Goals (SDGs) provide a shared blueprint for peace and prosperity for people and the planet, now and into the future. The 17 SDGs are aimed at ending poverty and improving health and education, reducing inequality, and spurring economic growth - all while tackling climate change and working to preserve our oceans and forests.

OUR VALUES

INTEGRITY

Our way: do the right thing

We believe in the honorable ideals of seafaring and shipping; those, alongside our high business and ethical standards, and values, are embodied in all our endeavors. Honesty, ethics, and strong moral principles are fundamental to our business.

COLLABORATION

No man is an island

We believe that working with other companies and professional disciplines, while being exposed to diverse backgrounds and cultures, makes for better business decisions and a stronger organization.

Diversity and openness - the free exchange of ideas

At the same time, we recognize the need to look beyond pure financial returns and compliance. Our mission, values and purpose guide us to consider our planet, our people and our communities in our decision-making.

We continuously and actively strive to reduce our impacts, while transparently reporting on sustainability topics, as we continue to work to improve our ESG related performance.

The three most relevant goals our contributions are aligned with are Goal 8. Decent Work and Economic Growth; Goal 13. Climate Action; and, Goal 14. Life Below Water.

Through our culture, policies, training programs, and procedural checks that we build around compliance, our goal is to achieve the highest industry standards.

• are critical to our success and to our organization as a place for personal and professional development
• by encouraging them we aspire to contribute positively to the industry.

We are proud members of:

STEWARDSHIP

We care, respect, and deliver

We honor our obligations to our many stakeholders and put forth all due care to preserve their trust. Our ship staff puts their health and wellbeing in our hands and we strive to maintain a secure, respectful working environment. Our customers rely upon us to safely and efficiently deliver the goods required for their operations and we do our utmost to meet their expectations in a fair and balanced manner.

Our banks and investors entrust us with their capital and we endeavor to fulfill our financial obligations with full transparency. For society at-large, we take all reasonable measures to ensure the safe delivery of needed goods using fuel efficient vessels.

MOXIE

Fortune favors the bold

We challenge ourselves to move quickly, creatively, and thoughtfully towards new opportunities; relying on our energy, passion, and principles to achieve advantageous, long-termrisk-adjusted returns.

We aren't afraid to explore unchartered territory.

• The International Seafarers' Welfare and Assistance Network (ISWAN), a network of international organizations committed to improving the welfare of seafarers.
• The Trident Alliance, a coalition of shipping owners and operators who share a common interest in robust enforcement of maritime sulphur regulations.
• Intertanko, an advocacy group for the tanker industry to facilitate the world with the safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products.

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Environment

Scorpio Tankers is committed to continuously improving energy efficiency,

exceeding its GHG obligations through 2030 and satisfying all other emissions requirements, including for SOX,NOX and particulate matter (PM).

Climate change is clearly shaping the course of the maritime industry and will continue to do so going forward. Growing awareness, increasing customer expectations and the likelihood of regulation make our response to this issue a fundamental priority.

A challenging emissions reduction pathway for the maritime sector

According to the IMOs Fourth Greenhouse Gas Study (2020), shipping is used for nearly 90% of global trade and accounts for 2.9% of global GHG emissions. Between 2012 and 2018 GHG emissions from shipping grew 9.6%, mostly due to a continuous increase of global maritime trade. Improvements in energy efficiency are contributing to a lowering in the carbon intensity of maritime transport.

However, predicted ongoing growth in shipping and trade is likely to nullify emission reductions achieved through efficiency gains. This will make it difficult to achieve IMO's 2050 GHG reduction ambition only through energy-saving technologies and speed reduction of ships. Under all projected scenarios, in 2050, a large share of the total amount of GHG reduction will have to come from the use of low-carbon alternative fuels.

Our approach to emissions reduction

Scorpio Tankers' fleet is modern with an average age of

5.1 years. Our investment in modern vessels, with latest emission-reduction technologies, positions us to meet current and predicted future emissions regulations. At the same time, we are able to demonstrate best-in-class energy efficiency, which is becoming increasingly important for meeting our own and our customers' emission reduction pathways. Carbon intensity indexes have been calculated for each vessel in our fleet and the mitigation potential is being mapped in anticipation of IMO's expected require- ments in 2023.

Emissions performance

In 2019, we established an accurate GHG emissions baseline using independent third-party measurement. In 2020, our scope 1 GHG emission were 2.33 million metric tons Carbon Dioxide equivalents (CO2e), measured using a financial control approach (2019: 2.50 million). The 7.1% decrease in emissions in 2020 was primarily

Compliant ballast water treatment systems

Ballast water is essential for the safe and efficient opera- tion of vessels. The handling of ballast water is regulated by the International Convention for the Control and Management of Ships' Ballast Water and Sediments.  All of our vessels have ballast water management plans in place in accordance with the IMO's Ballast Water Management Convention. In 2020, ballast water treatment systems were in place on 93% (2019:15%) of our fleet and this number will increase to 100% in 2022.

No ballast water discharge incidents in 2020

Uncontrolled ballast water may contain aquatic organisms or pathogens which, if introduced into the sea including estuaries, or into freshwater courses, may create hazards to the environment, human health, property or resources, impair biological diversity or interfere with other legitimate uses of such areas. No ballast water discharge incidents were reported in 2020 (2019:0).

Zero spills or discharges to air

Accidental spills or discharges can cause significant ecological harm. Harmful spills may require extensive recovery efforts, causing reputational damage as well as economic penalties. No spills or discharges to air were reported in 2020 (2019:0).

Compliant waste disposal

The prevention of pollution by solid waste from ships is regulated by MARPOL's Annex V, which prohibits the discharge of most waste into the sea. Regulated waste accumulated aboard a vessel is disposed of at designated port reception facilities and, where port facilities allow, some waste materials are recycled. There were no reported waste disposal issues in 2020.

Committed to responsible ship recycling

We are committed to the sustainable and socially responsible recycling of ships in accordance with our Environmental Policy. We believe that ship recycling should always be performed according to strict standards for protecting human health, safety and the environment. Our oldest vessel was built in 2012, and recycling is currently not considered. Any future vessel recycling will be done in accordance with the Hong Kong Convention and conducted

Investments in new vessels, low average fleet age and deployment of technology means we have best in class efficiency and environmental performance, including for ballast water management systems. Our approach to environmental management is set out in our Environmental Policy, which includes operating to the highest environmental standards, while complying with all relevant environmental regulations.

GHG emissions

International shipping accounts for nearly 3% of global GHG emissions. While shipping remains significantly more efficient than other freight modes (such as road, rail or air transportation), major efforts will be required throughout the sector to meet the IMOs 2050 GHG reduction ambition

• to reduce absolute emissions 50% by 2050 and by 70% on an intensity basis.

a result of increased efficiency and reduced distance travelled. Emissions baselines for particulate matter (PM) and nitrous oxides (NOX) have been established in 2020. With scrubbers fitted on the majority of our vessels, our sulfur dioxide (SOX) emissions are considered to be very low. Emission indices for 2020 are also reported. See SASB table in appendix.

in compliance with the IMO Convention for the Safe and Environmentally Sound Recycling of Ship and with any future guidelines issued by the IMO in connection with such Convention.

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