Global Ship Lease : 2022 ESG Report

ESG REPORT

2022

Table

of contents

Message from our Executive Chairman . . . . . 3 About this report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1. About Global Ship Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Company profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Our value chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Our fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Our commercial and operational performance . . . 10 Our ESG roadmap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2022 Summary of performance . . . . . . . . . . . . . . . . . . . . . . . 14

2. Materiality analysis	17
Impact materiality analysis process	18
Overview of results and material topics	20
Supporting the United Nations
Sustainable Development Goals	22

3. Climate strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Our industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Our approach to decarbonization . . . . . . . . . . . . . . . . . . . 27

4. Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Complying with environmental regulations . . . . . . . 37 Energy efficiency and GHG emissions . . . . . . . . . . . . . . . 38 SOx, NOx and Particulate Matter emissions . . . . . . . 41 Waste management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Water management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Protection of the marine environment . . . . . . . . . . . . . . 44 Responsible ship recycling . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Our environmental impact ashore . . . . . . . . . . . . . . . . . . . 46

5. Social . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Health and safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Our employment practices . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Respecting human rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Responding to social crises . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Our strong social engagement . . . . . . . . . . . . . . . . . . . . . . 53 Responsible and sustainable procurement . . . . . . . 54

6. Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 ESG Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Business ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Risk management and internal controls . . . . . . . . . . . 62 Cyber security and data protection . . . . . . . . . . . . . . . . 63

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 I: Management and impact of material topics . . . . 65 II: Materiality assessment process . . . . . . . . . . . . . . . . . 67 III: GRI content index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 IV: SASB content index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

2	2022 ESG REPORT

Message
from our Executive Chairman	George Youroukos
		Executive Chairman
		of Global Ship Lease, Inc

For our industry, the first half of 2022 continued in the vein of 2021 - with earnings and asset values reaching record highs. Capitalizing on the strong market and the full year benefit of the ships we purchased during 2021, we were able to grow revenues in 2022 by 44% and net income by almost 74% year-on-year.

However, the conflict in Ukraine, worryingly high inflation worldwide, slower than expected post-Pandemic growth in China, and increasingly extreme climate- related phenomena (wildfires beset many parts of the Mediterranean as I write this) have since changed the humanitarian, macro-economic, and environmental landscape quite dramatically.

In response to the decarbonization challenges we all face, significant regulatory milestones have been put in place over the last 12 to 18 months. These will help mark the road to emissions reduction going forward, and will continue to ratchet up pressure on the industry to decarbonize. Shipping's global regulator, the IMO, has targeted net zero emissions by around 2050, and the ongoing implementation of EEXI and CII are already having a positive impact on industry behavior and emissions reduction. This will be further accelerated in 2024, as shipping is folded into the European Union's Emission Trading System (EU-ETS), with further regulatory tightening to come.

In this, our fourth annual ESG report, we provide an update on what we are doing to manage the challenges, and grasp the opportunities, that lie ahead. To highlight a few points:

In a period when our vessel-owning days grew by 33.4%, our Scope 1 and 2 Emissions grew by less than half that, at 14.9% - reflecting improvements in our AER and EEOI

emissions-related performance metrics. In the climate section of this report, we provide a progress update on the implementation of our decarbonization strategy, which is based on a full life-cycle approach to the carbon footprint of ships and a well-to-wake approach to that of clean fuels. In the near term, we believe that reducing emissions by improving the energy-efficiency of existing ships - both technically and operationally - will provide the most immediate and tangible societal benefits and economic returns. With this in mind, the four pillars of our decarbonization and fleet enhancement strategy in the near term are:

• Energy Saving Technologies (ESTs). We are upgrading our ships with energy-saving,and emission-reducing,technologies - in close cooperation with our charterers.
• Data. We are installing automated data capture and performance management systems on our ships, which will allow us to share real-time performance information with our charterers - targeting improved cooperation to unlock operational improvements, efficiency gains, and emissions reduction. Over time, as we gather ever richer data and AI continues to evolve at a break-neck pace, we expect these benefits to grow and accelerate.
• Fuels. Our charterers source and pay for fuel, and so this element of our decarbonization strategy will be strongly informed both by their preferences and by the market availability of clean and transition fuels. However, bio- fuel blends look promising, and we are working on making our fleet bio-fuel compatible.
• Carbon capture & storage (CCS). Transitioning to next- generation clean fuels, and supporting infrastructure, will take time. Although not without its challenges, we

see CCS as an important transition solution towards more sustainable decarbonization, and have invested in a promising carbon capture venture accordingly. We have also established an R&D budget to support selective investment in other promising, value- generative decarbonization innovations.

In time, once genuinely clean fuels are commercially available and the technological, safety, regulatory, and economic implications are clearer, we will explore the benefits of next-generation fleet renewal.

In terms of social impact, The Safe Haven Project, which we established in 2022 to protect and accommodate the displaced families of our Ukrainian seafarers, has supported almost 300 people - a number of whom have decided to stay on in Greece. While we feel privileged to have been in a position to help, this is of course overshadowed by the humanitarian tragedy that inspired us to take action.

On the governance front, we were delighted during 2022 to welcome our first female director to the GSL Board. We have continued to regularly review, and enhance, our governance structures, policies and practices, and Ms. Helfer's guidance and leadership have been instrumental in those efforts.

To conclude: everything we do in the ESG sphere is shaped not only by regulatory requirements and commercial relevance, but also by input gathered from a broad range of our stakeholders by way of our annual survey and materiality analysis. I hope all of you will be interested by the contents of this ESG report and will be encouraged by our direction of travel and efforts to continuously improve.

3	2022 ESG REPORT

About

this report

This is our 4th annual Environmental, Social, and Governance (ESG) report; unless otherwise noted, it covers the period from January 1, 2022 through December 31, 2022. As in previous years, where relevant, some of the data in this report includes the activities of our strategic partners: Technomar and ConChart, the technical and commercial managers of our fleet.

The report focuses on ESG topics identified as material* both by us and by our stakeholders, with a particular emphasis on decarbonization and Greenhouse Gas (GHG) reduction objectives established by the International Maritime Organization (IMO) and other regulatory and environmental bodies. It includes a roadmap towards our continuously evolving sustainability goals, togetherwith an overview ofthe measures we are implementing and progress we have made to date.

In preparing this report we considered the following standards and reporting frameworks:

	Global Reporting Initiative		Sustainability Accounting Standards
	(GRI) Standards		Board (SASB) for Marine Transportation
	Reporting based on the GRI Standards	The report discloses information
	ensures that the content and issues	on the basis of SASB maritime
	discussed are relevant, consistent, and	industry-specific metrics.
comparable across companies and sectors.

• This report covers information we have determined to be important from an ESG reporting perspective, which is distinct from the materiality standard used for other purposes, including with respect to disclosures pur- suant to U.S. Securities and Exchange Commission (SEC) rules and regulations. Thus, while certain matters discussed in this report may be significant, any significance should not be read as necessarily rising to the level of materiality used for the purposes of complying with the U.S. federal securities laws and regulations, even if we use the words "material" or "materiality" in this report.

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01.01	Reporting Period	31.12
2022		2022

2022 ESG REPORT

1 About Global Ship Lease