Sustainable growth report 2024

NET ZERO GREEN HOUSE GAS EMISSIONS

This section outlines our funnel emissions and the methodologies used to calculate the related metrics. The monitoring, reporting, and verification of operational data for 2025 was successfully completed in compliance with both IMO DCS and EU MRV requirements. ts.

Emission calculations and reporting approach
The emissions presented in this report are aligned with the FuelEU Maritime regulation, which entered into force in 2025. The calculations include CO₂, CH₄, and N₂O emissions and are assessed using both tank-to-wake (t-t-w) and well-to-wake (w-t-w) methodologies. Emissions from biogenic energy including bioLNG and biodiesel are included.

For the emission figures the IPCC AR5 values for GWP values are used (CH₄ = 28 and N₂O = 265) following the anticipation of consistent use between FuelEU and EU-ETS regulations for its tank-to-wake emission calculations. This approach supports consistency across reporting frameworks and aligns with current scientific standards as industry practice continues to evolve. For PM2.5 and PM10, we have updated our calculation method to more accurately reflect fuel type and engine type, which has also resulted in adjusted values for previous years. 

Methane slip considerations
Methane slip is calculated as a percentage of fuel consumption that vary by engine type, including Otto dual-fuel medium-speed, Otto dual-fuel slow-speed and LBSI engines. The current regulations do not recognize engines that perform better than the fixed values, same applies for methane slip abatement technologies. Over time this may lead to conservative methane slip emissions, and we encourage adjusting the regulations based on actual methane slip performance.

To remain aligned with industry standards, we must proactively refine our emissions reporting. As regulations and technologies continue to evolve, this requires a forward-looking approach to stay ahead of developments.

Results from emission figures
Due to the limited use of biofuels the overall greenhouse gas emissions on a well-to-wake basis slightly decreased compared to previous year whereby the t-t-w emissions on a CO2equivalent basis slightly increased. 

SOₓ emissions are now about 50% lower than last year, continuing the steady decline associated with reduced residual fuel consumption. A similar reduction is observed in NOₓ emissions. Consumption of LSFO decreased by roughly 17%.

The changes observed in the 2025 emissions profile were mainly driven by:

• Introduction of renewable fuels
• Changes in trading profile
• Continued reduction in residual fuel consumption

More specifically:

• Coral Fraseri and Coral Furcata operated on biodiesel blends (FAME)
• Coral Energy and Coral EnergICE operated on bioLNG
• LSFO (residual) consumption declined 50% from 2022 baseline year

Biofuels deployment|
In 2025, biofuels accounted for 2% of the fleet’s total energy use. This consisted of 69,036 GJ bio‑LNG and 10,496 GJ of FAME biodiesel. The use of these renewable fuels contributed significantly to reducing our greenhouse gas footprint. Due to the favourable w-t-w emissions profile of the bio-LNG used, the biogenic fuel share resulted in a total impact of – 2,764 tCO₂eq. This means that, on a w-t-w basis, emissions were not only reduced but achieved a negative result. Unlike conventional fossil fuels, renewable fuels can have widely varying greenhouse gas intensities depending on their production pathway and feedstock.

While t-t-w emissions from biofuels are considered biogenic CO₂, their w-t-t emissions can range from strongly negative to moderately positive under FuelEU Maritime methodology.

For comparison, conventional marine fuels typically have a w-t-w emissions intensity of around 90 gCO₂e/MJ. The bio-LNG used in our operations achieved a weighted emissions intensity of -43.04 gCO₂e/MJ, demonstrating the potential of sustainable fuels to support maritime decarbonisation.

The use of FAME biodiesel in 2025 was primarily focused on gaining operational experience and building knowledge within the fleet. While its contribution to overall fleet emissions was still limited, it provided valuable insights that support a planned increase in biodiesel uptake from 2026 onwards.

Annual Efficiency Ratio (AER) and Net Zero Ratio (NZR) assessment
Analysis of fossil funnel emissions, normalised against vessel capacity and distance sailed, resulted in an AER of 32.4 gCO₂/dwt·nm decreasing from last year score of 34.6 gCO₂/dwt·nm. A similar positive trend was observed for both the total AER and the Net Zero Ratio (NZR).

The NZR benchmark of 2022 with a value of 40.4 is based on w-t-w emissions, and for current year shows a reduction to 38.9. This results in a total NZR score being 96.3% of the 2022 benchmark, whereby our target for 2025 was 95%.

Performance Trends per Trade segment differentiation
To monitor operational performance more effectively, vessel operations are divided into four trade segments:

• Petchem vessels < 4,500 cbm
• Petchem vessels 4,500 – 7,000 cbm
• Petchem vessels 7,000 – 10,000 cbm
• LNG vessels

With only limited biodiesel use in the 7,000-10,000 cbm segment, no additional measures were implemented that would be expected to materially influence the results. The observed deviations in performance are therefore attributed primarily to the vessels’ operational and trading profiles, including variations in utilisation.

For LNG, despite significantly lower utilization of the Coral Nordic and Coral Evolution, the LNG segment still showed an improvement compared with last year. The NZR improved more strongly than the AER, reflecting the impact of bio‑LNG consumption. This outcome is expected and fully aligned with our strategy to reach net‑zero via the methane pathway, transitioning from fossil LNG toward increasing blends of bio‑ and e‑methane over time.

Key takeaways
The introduction of biofuels in 2025, specifically bioLNG and bioMGO, delivered a positive, though still limited, improvement in fleet emissions performance. Even at modest uptake levels, these fuels produced measurable reductions in CO2, CH₄, SOₓ, and NOₓ, emissions. As renewable fuel deployment scales in the coming years, biofuels are expected to play an increasingly material role in driving absolute greenhouse gas reductions across the fleet.

Shifts in trading patterns are also likely to remain of major influence on future efficiency metrics, particularly in operational scenarios characterized by shorter sailing distances, such as bunkering trades, floating‑storage activities and overall vessel utilisation.

Carbon Intensity Indicator (CII) and vessel performance
The Annual Efficiency Ratio is adjusted using several correction factors, including cargo reliquefication, ice navigation, and ice-class features. The adjusted AER is subsequently used to determine the applicable Carbon Intensity Indicator (CII). The CII rating is based on vessel type and summer deadweight and ranges from A, representing the highest performance level, to E, representing the lowest.

A significant part of the fleet continues to receive repeated D and E ratings. Under current IMO regulations, a corrective action plan must be developed when a vessel receives an E rating or a D rating for three consecutive years. For some vessels this has been done and primarily focuses on improving the operational profile (more sailing) of the vessels.

However, improving the CII rating remains challenging due to the operational nature of the trades performed. The number of nautical miles sailed has a significant impact on the CII calculation methodology, meaning that operational waiting time, idle periods and employment as LNG bunker vessels can negatively affect vessel performance scores.

Currently, the preparation of corrective action plans remains the primary regulatory consequence of low CII ratings, while further IMO guidance on future enforcement measures is still under development.

Vessel exemptions
Vessels below 5,000 GT are exempt from CII reporting requirements. As a result, Coral Medusa, Coral Monactis, and Coral Siderea do not receive CII scores. 

Vessel performance & idle time impact
Overall, tightening regulatory frameworks are contributing to a gradual downward shift in CII outcomes, with vessels reaching lower ratings more quickly as benchmarks become increasingly stringent. As a result, ships that previously achieved an A rating are now more frequently classified as B, even when operating in a similar manner, for example, Coral Ivory.

As with AER and NZR, low utilisation negatively affects CII performance, while active sailing generally improves these indicators. This effect is particularly pronounced for larger LNG vessels, which are relatively fuel‑efficient in operation but disproportionately penalised during idle periods.

This dynamic is evident in Coral Evolution and Coral Nordic, both of which saw their CII ratings decline from A to D. Extended idle time while awaiting suitable voyages, combined with continued emissions during non‑productive periods, significantly impacted their scores. The larger LNG carrier Coral Encanto received an E rating year‑on‑year, having been employed as an FSU and remaining idle for most of the year.

Similarly, LNG vessels such as Coral Anthelia and Coral Methane also received E ratings due to limited sailing inherent to their trade patterns. This in comparison to LNG carriers Coral Energy and Coral EnergICE having A scores.

Coral Star and Coral Sticho, although capable of operating on LNG, do not consistently do so due to customer requirements. As a result, their operational deployment does not fully leverage their efficiency potential, contributing to their E ratings.

Other vessels with E ratings include Coral Favia, Coral Fraseri, and Coral Fungia. The first two were primarily engaged in LNG bunkering, while Coral Fungia experienced substantial idle time, both factors contributing to lower CII performance.

Operational profile
Operational trading profiles remain the most significant driver of CII performance across the fleet. Continued optimisation of voyage planning, together with active engagement with IMO stakeholders, is essential to further improve future CII performance.