SustainConnect

Our Decarbonization Journey: Propeller Retrofit and Scrubber Technologies

Ship operations account for approximately 98% of our total carbon footprint. Enhancing efficiency, reducing fuel consumption, and minimizing our environmental impact remain our top priorities. Entering 2025, we’ve implemented propeller retrofits and scrubber installations to boost operational efficiency and lower our environmental footprint.

Our first propeller retrofit and scrubber installation were successfully completed on the vessel Emma A in February.

The propeller retrofit initiative optimizes water flow, significantly improving energy efficiency and reducing fuel consumption across our fleet.

Benefits of the Propeller Retrofit:

• Fuel savings up to 8%
• Reduced greenhouse gas emissions linked to lower fuel consumption
• Weight optimization achieved by reducing propeller weight from 47 to 37 tons
• Enhanced performance and energy efficiency through optimized water flow design

In addition to propeller upgrades, our scrubber installations aim to lower the sulfur content in our global emissions below 0.1%.

As of May 1, 2025, the Mediterranean Sea has been declared an Emission Control Area (ECA), mandating the reduction of sulfur oxide (SOx) emissions to 0.1%. Updating our fleet accordingly ensures compliance and strengthens our environmental commitment.

Advantages of Scrubber Systems:

• Emission Reduction: Up to 98% reduction in SOx emissions
• Fuel Cost Savings: Continued use of high-sulfur fuel, significantly reducing costs
• Sustainability: Full compliance with ECA regulations, lowering environmental impact
• Operational Efficiency: Continuous and reliable performance through exhaust gas cleaning systems

By complying with IMO environmental regulations, we are building a cleaner maritime future. This transformation not only reduces fuel consumption but also strengthens circular economy practices in maritime shipping, supporting our broader sustainability goals.

A First in Turkey: Reducing Carbon Footprint with Bio24F Biofuel

We continue to develop innovative solutions to reduce maritime transportation’s dependency on fossil fuels, help our customers achieve their net-zero goals, and protect marine ecosystems and biodiversity.

How have we achieved this?

As the first container shipping company in Turkey to use ISCC-EU certified Bio24F biofuel developed by Arkas Bunker, we proudly reduce traditional fuel consumption and significantly lower carbon emissions.

🚢 What is Bio24F?

✅ ISCC EU Certification: Fully compliant with EU sustainability and greenhouse gas emission reduction criteria.

✅ Composition: An innovative biofuel consisting of 24% Used Cooking Oil Methyl Ester (UCOME) collected from restaurants and food processing facilities in Turkey and 76% low-sulfur fuel oil (FO).

✅ Emission Reduction: Reduces carbon emissions by up to 23% compared to traditional marine fuels.

✅ Low sulfur content helps reduce air pollution.

Decarbonizing Supply Chains with Our Biofuel Solution: Book for Green

In March 2025, Arkas Line launched the “Book for Green” initiative to help customers achieve their net-zero goals and reduce Scope 3 emissions. Through this initiative, our customers can partner with Arkas Line in biofuel use, reducing emissions in their supply chains.

Customers interested in biofuel transportation can contact us via:

1. Arkas Line Sales Offices
2. Website: Ship with BIO24F – Arkas Line
3. Book for Green Email: bookforgreen@arkasline.com.tr

Through Book for Green, customers can verify their greenhouse gas reduction calculations and savings with certificates validated by third-party organizations.

At Arkas Line, we continue taking environmentally responsible steps through sustainable transportation solutions. Through the Book for Green initiative, we invite our customers to join us in this goal by providing eco-friendly, low-emission transportation services.

We continue developing innovative solutions to reduce dependence on fossil fuels, help customers achieve net-zero goals, and protect marine biodiversity.

How?

Arkas Line is proud to be the first container shipping company in Turkey to use the ISCC-EU certified BIO24F biofuel developed by Arkas Bunker, significantly reducing conventional fuel consumption and carbon emissions.

🚢 What is Bio24F?

✅ ISCC EU Certification: Fully compliant with EU sustainability criteria.

✅ Composition: 24% Used Cooking Oil Methyl Ester (UCOME) from Turkish restaurants and food processing facilities, mixed with 76% low-sulfur fuel oil.

✅ Emission Reduction: Up to 23% lower carbon emissions compared to traditional marine fuels. ✅ Low sulfur content helps reduce air pollution.

Decarbonizing Supply Chains with Biofuel: Book for Green

In March 2025, Arkas Line launched “Book for Green,” helping customers reduce Scope 3 emissions and achieve net-zero targets. Customers can partner with us to use biofuel in their supply chains.

Contact us via:

1. Arkas Line Sales Offices
2. Website: Ship with BIO24F – Arkas Line
3. Book for Green Email: bookforgreen@arkasline.com.tr

Customers will receive verified certificates showing greenhouse gas reductions through Book for Green.

At Arkas Line, we continue taking environmentally responsible steps through sustainable transportation solutions. Through the Book for Green initiative, we invite our customers to join us in this goal by providing eco-friendly, low-emission transportation services.”

Digitizing Sustainability: Arkas Line x Map360 Collaboration

For Arkas Line, maritime transportation means safely carrying not just cargo, but also a more livable future. In late 2024, we partnered with ESG software provider MAP360 to accurately analyze our ESG (Environmental, Social, and Governance) data, define our long-term sustainability objectives, and proactively prepare for upcoming reporting standards.

Starting in early 2025, all our sustainability data will be managed through a digital platform.

🌍 Through this collaboration, we aim to:

✅ Make data-driven decisions to effectively manage our ESG performance

✅ Reduce our carbon footprint and optimize energy management

✅ Foster transparent communication and build trust with our stakeholders through comprehensive reporting

Transformation Begins in the Supply Chain: Growing Together

The maritime industry plays a crucial role in the global supply chain. The European Union’s Corporate Sustainability Reporting Directive (CSRD) now requires companies to report not only on their own activities but also on sustainability practices throughout their supply chains and to take necessary measures to mitigate negative impacts.

At Arkas Line, sustainable supply chain management is among our top priorities. To monitor our efforts, set development targets, and create action plans, we established the “Sustainable Supply Chain Committee” in December 2024.

Within our Integrated Management System, we enhanced our annual supplier evaluation processes by incorporating ESG questionnaires, using this data for assessments.

Using the data collected from our suppliers, we aim to strengthen our sustainability strategies and manage potential risks within our supply chain.

Through sustainable supply chain management, our goals include:

✅ Setting measurable sustainability targets for our suppliers,

✅ Encouraging reduction of their carbon footprints,

✅ Supporting the development of all participants and stakeholders within the supply chain.

A New Era in Sustainability Reporting

Sustainability reporting is undergoing significant changes, shifting from voluntary practices to mandatory standards, becoming more comprehensive and transparent.

Ø 2000s: Rise of GRI

GRI Standards provided a global framework for organizations voluntarily reporting sustainability, offering transparency on ESG (Environmental, Social, and Governance) indicators.

Ø 2021: Announcement of CSRD

The European Union announced the Corporate Sustainability Reporting Directive (CSRD), shifting sustainability reporting from voluntary to mandatory, replacing the Non-Financial Reporting Directive (NFRD), thus broadening the scope to include more companies.

Ø 2023: TSRS Published

Turkey introduced the TSRS (Turkish Sustainability Reporting Standards), aiming for more transparent and auditable sustainability reporting.

Ø 2024: Mandatory Implementation

• CSRD became mandatory for companies already reporting under NFRD.
• TSRS became mandatory for large companies meeting certain criteria in Turkey.

Proposed Changes to CSRD Scope:

• Narrowed Scope: The European Commission proposed limiting the scope to companies with over 1,000 employees, significantly reducing the number initially covered (from around 50,000 to excluding 80% of companies).
• Flexibility for Small Businesses: Smaller businesses exempted from providing sustainability data required by larger firms.

TSRS Exceptions:

• Companies listed on the Istanbul Stock Exchange’s Watchlist Market and Venture Capital Market are excluded from TSRS requirements. Companies not publicly listed and issuing securities without public offerings are also exempt.
• Small Banks and Financial Institutions: Those with fewer than 250 employees or only one branch are exempted from mandatory disclosure of Scope 3 greenhouse gas emissions; this reporting is voluntary.

As sustainability reporting becomes increasingly mandatory and comprehensive, companies are committed to transparent and accountable reporting practices.

At Arkas Line, we published our first sustainability report in 2024 according to GRI standards, marking a significant step toward transparency and accountability. We will continue strengthening our reporting practices with the same approach this year.

Arkas Line Social Impact Program: Acting for Global Impact!

In 2024, Arkas Line launched the “Best Impact” Project to contribute positively to communities across all regions where we operate and spread our social responsibility efforts globally. Involving our international offices, we invited project ideas aimed at benefiting people, communities, nature, and animals in their local cities.

Our “Blue for Green” initiative focuses on environmental and nature conservation projects, while “Blue for Life” centers around community welfare, education, and social well-being.

Best Impact projects, executed in collaboration with local NGOs and institutions, will be overseen by our country managers throughout 2025. Results and impacts will be shared with all employees at the end of the year.

Our EcoVadis and CDP Ratings

Sustainability (ESG) ratings help companies mitigate climate-related risks and build trust through transparency with stakeholders.

🏅 EcoVadis: Since 2015, Arkas Line has participated in EcoVadis assessments, a globally recognized corporate rating platform evaluating companies on Environment, Human Rights, Ethics, and Sustainable Procurement. In 2024, we achieved a Bronze Medal, placing us in the top 35% of companies assessed.

📈 CDP (Carbon Disclosure Project): CDP is a global reporting system encouraging transparency on environmental impacts related to climate change, water security, and deforestation. Arkas Line has been reporting to CDP on climate change since 2023, and in 2024, we attained a “C” rating.

These ratings guide us in identifying areas for improvement, updating our sustainability goals, and continuously elevating our performance each year.