Environment and energy efficiency

GRI 3‑3, 2‑23, 2‑24, 2‑25

Key regulations

• Uniform Industry‑Wide Environmental Policy of Rosatom State Corporation and its Organisations;
• Occupational Health and Industrial, Environmental and Fire Safety Policy of FESCO and its Controlled Entities;
• Production and Consumption Waste Management Standard of FESCO and its Controlled Entities;
• Industrial Safety Management System Regulations of FESCO and its Controlled Entities, along with the list of entities and resolutions required to initiate their consolidation;
• Regulations on a System for Accounting Greenhouse Gas Emissions at Rosatom Organisations Operating in Russia;
• Regulations on Occupational Health and Industrial, Environmental and Fire Safety Training;
• Resource and Energy Efficiency Regulations of FESCO and its Controlled Entities.

Management system

GRI 2‑23, 2‑24, SPBC 18

FESCO follows the principles of responsible natural resource management, focusing on decarbonisation and improving fleet energy efficiency in line with the strategic goals of the International Maritime Organisation (IMO). The Group’s key priorities are set out in the Occupational Health and Industrial, Environmental and Fire Safety Policy, which applies to all structural units of FESCO and its subsidiaries.

In the reporting period, FESCO continued to implement Rosatom’s Uniform Industry‑Wide Environmental Policy, which the Group joined in 2024. This integration ensures compliance with regulations for participating in environmentally significant decision‑making and strengthens engagement with regional authorities and local communities for environmentally sustainable development.

The high quality of the Company’s management and operations is confirmed by valid certificates of compliance with international management standards.

• ISO 14001:2015 / GOST R ISO 14001‑2016 (Environmental Management System): provides a systematic approach to minimising environmental impact, including regular audits, risk monitoring and management reviews. In 2025, the first inspection audit by an accredited body was successfully passed, confirming compliance with the standard’s requirements. The certificate is valid until the end of 2027.
• ISO 9001:2015 / GOST R ISO 9001‑2015 (Quality Management System): confirms that FESCO’s branch complies with the quality requirements for maritime and coastal cargo transportation services. The certificate is valid until the end of 2027.
• ISO 50001:2018 / GOST R ISO 50001‑2023 (Energy Management System): in 2025, the Group successfully passed an inspection audit by an accredited body. The certificate is valid until the end of 2026. As at the end of 2025, the certification covered FESCO’s key energy‑consuming organisations. In 2026, its scope is planned to be expanded by integrating new subsidiaries that joined the Group late in the reporting period.

Environmental protection expenses

GRI 2‑25, MED 21, SPBC 10, 17

FESCO’s environmental protection spending covers legal compliance with environmental laws, fixed asset maintenance, and planned repairs and upgrades to treatment facilities and sewerage networks.

Total environmental protection expenses in 2025 amounted to RUB 361.6 million, up 12.8% from 2024. The bulk of this amount (RUB 311 million) was allocated to water management and protection at water bodies, including:

• repair of worn‑out pavements at wharf areas, hard pavements and roads – RUB 289.8 million;
• construction, reconstruction and repair of treatment facilities and sewerage networks – RUB 10.4 million;
• timely waste removal – RUB 7.1 million;
• water body monitoring – RUB 3.7 million.

RUB 6.9 million was allocated to maintaining wastewater treatment and disinfection systems and bilge water separators, and to converting the fleet to hull coatings safe for the marine environment. To mitigate water pollution risks during bunkering, vessels were supplied with dispersantsSubstances used to sink oil slicks. – special agents that prevent oil pollution of the sea. As part of its energy efficiency efforts, the Group funded innovative silicone‑based paints that save fuel on high‑speed vessels, as well as modern fuel additives that improve combustion and reduce air emissions.

Environmental compliance

GRI 2‑25, 2‑27, SPBC 14, 15, 16

FESCO strictly follows the environmental laws of Russia and the countries where it operates, making timely payments for negative environmental impact.

For infrastructure expansion and ongoing port and terminal operations, FESCO obtains all required permits and design documents according to each facility’s environmental impact category. Design solutions always include biodiversity preservation and human‑induced impact minimisation programmes.

Waste disposal accounts for 65% of the Group’s permissible impact limit payments. In 2025, the main excess charges were related to air pollutant emissions from stationary sources.

FESCO paid RUB 1.9 million in environmental damage compensation in 2025 for damage recorded in 2024.

There were no environmental accidents in 2025, and no non‑financial sanctions involving operational suspensions were imposed following inspections.

Physical climate risks

GRI 3‑3, 2‑25, SPBC 53, 70

Management of climate and natural risks at FESCO Group companies is carried out in accordance with the Guidelines for Managing Climate and Natural Risks. This document sets out a single procedure for identifying, assessing and managing such risks that impact FESCO’s operations. The guidelines are binding for all Group companies as part of the unified risk management system.

In 2025, FESCO conducted a qualitative assessment of physical climate and natural risks, identifying the Group’s key assets most vulnerable to these risks.

Key risks and mitigation efforts

Under the approved methodology, the key risks were identified, with a mitigation strategy and efforts defined for each.

Risk mitigation efforts

Based on the risk management methods described above, FESCO defined the following set of mitigation efforts:

• Weather monitoring and forecasting. Most actively used in maritime transportation, port and terminal operations, and refrigerated transportation. In particular, AIS monitoring of meteorological data and ice forecasts on the route is used to reduce the risk of collision with icebergs. Optimising navigation based on weather conditions is widely practised to minimise risks and mitigate their consequences.
• Timely repair and modernisation of infrastructure. Includes maintenance and repair of equipment on vessels, in ports and terminals to ensure operational continuity. For example, modernisation of lighting (transition to LED technology) removes restrictions on operation in foggy conditions. Modernisation and timely repair of hydraulic structures aim to reduce the risks of flooding and storm surges and mitigate their consequences.
• Insurance of assets and cargo. A universal method of risk delegation. Insurance coverage currently extends to natural disasters, including storms and typhoons. Both cargo and vessels are subject to insurance.
• Development of response and compensatory action plans. Particularly relevant for flood and typhoon risks. Efforts include:
  • developing alternative routes;
  • using backup capacities and warehouses;
  • opting for non‑floodable warehouses/terminals;
  • connecting backup diesel generators at key stations along refrigerated container routes in the event of cooling equipment failure.
• Implementing technology solutions to ensure operational resilience. Efforts include:
  • developing and implementing a container lashing specification for each terminal, port and vessel. Flexible lashings are applied. The specification takes into account wind strength and direction, as well as the shielding factor;
  • equipping container trucks with GPS/GLONASS systems and panic buttons. In an emergency, the driver can immediately alert the dispatcher and emergency services. Navigation systems provide precise vehicle coordinates, enabling rescue services to quickly locate a stricken container truck even in remote or unfamiliar areas cut off by the elements.

In 2026, FESCO plans to quantify its potential financial losses from climate and natural risks with a view to improving the effectiveness of climate and natural risk management. The results of this quantitative assessment will be used to produce a final risk matrix, enabling the Group to prioritise risks by significance and focus resources on the most critical areas.

Transition climate risks

In addition, in 2025 the Company conducted a high‑level assessment of transition climate risks in accordance with the draft amendments set out in Circular Letter No. 5005 of the IMO Marine Environment Protection Committee (MEPC) dated 11 April 2025. The draft proposed that from 2028, a pricing mechanism based on attained annual GHG fuel intensity (GFI) would apply to all vessels of 5 thousand tonnes or more (excluding ships solely engaged in voyages within national waters, semi‑submersible vessels and oil platforms). Adoption has been postponed to 2026.

In 2026, FESCO will update the assessment and broaden the scope of transition risks it reviews.

FESCO Group’s Energy Policy

GRI 3‑3, SASB TR‑MT‑110a.2, TR‑RA‑110a.2

The Company systematically improves its energy efficiency and reduces its carbon footprint when providing logistics services. The Energy Policy serves as a basis for setting goals, analysing performance and selecting the most promising energy saving measures.

The policy is implemented in accordance with the following documents and regulations:

• Uniform Industry‑Wide Guidelines for Greenhouse Gas Emissions Calculations at Rosatom State Corporation and its Organisations;
• FESCO Group’s Energy Saving and Energy Efficiency Improvement Programme;
• Resource and Energy Efficiency Regulations of FESCO and its Controlled Entities;
• FESCO Order on Fuel and Energy Resources and Lubricants Consumption Reporting;
• Energy Analysis Methodology for FESCO Group’s Business Units;
• Order on the Energy Management System Working Group.

Digitalisation of management

FESCO is developing digital solutions to improve energy efficiency. Its greenhouse gas emission reduction management system is designed to optimise the consumption of fuel and energy resources, reducing their specific consumption and minimising the Group’s carbon footprint.

System implementation includes:

• developing an automated fuel and energy resource management system based on Russian 1C software and integrating it with production automated information systems;
• automating direct and indirect greenhouse gas emission calculations for FESCO’s facilities, using Rosatom’s greenhouse gas emission calculation methodology;
• implementing energy efficiency improvement measures;
• introducing a methodology to standardise, analyse and forecast fuel and energy consumption and СО₂ emissions;
• monitoring the achievement of emission reduction targets and KPIs.

As a result, data on resource consumption and greenhouse gas emissions has been consolidated into a single digital framework. Automated data uploading has replaced manual entry, reducing staff workload and errors. Reporting time was cut by 95%. The monitoring system put in place enabled faster coordination with related departments and government bodies.

Environmental aspects of shipping

FESCO’s shipping priorities include preserving marine and coastal ecosystems, minimising negative impacts, improving fleet energy efficiency and cutting the carbon footprint of transportation.

The Company’s fleet of over 30 vessels operates in line with international environmental regulations and standards.

Under the International Convention for the Prevention of Pollution from Ships (MARPOL, 1973), FESCO’s vessels comply with established limits on emissions of pollutants and ozone‑depleting substances, discharge of wastewater and waste, as well as other regulatory requirements set by international and national rules, including navigation restrictions in certain areas of the world’s oceans.

Special attention is paid to vessel energy efficiency and reducing greenhouse gas emissions. Where applicable, the Company calculates the actual Energy Efficiency Design Index (EEDI), the Energy Efficiency Existing Ship Index (EEXI) and the actual annual operational carbon intensity indicator (CII). The CII is used to assign an energy efficiency rating of A, B, C, D or E (from very high to very low).

According to the latest assessment, 23% of FESCO’s vessels received an A rating, 13% a B rating, and the remainder a C rating, which does not require additional corrective measures.

All vessels hold an International Air Pollution Prevention (IAPP) Certificate.

Vessels also manage wastewater, ballast water, ship waste and biofouling. Detailed information on these aspects is provided in the relevant sections of the Report.

Energy consumption

GRI 302‑1, 302‑3, 302‑4, SASB TR‑MT‑110a.3, TR‑RA‑110a.3, MED 23

FESCO Group’s fuel and energy resource usage is split between two core operational segments: transportation and terminal operations, where fuel and energy costs are allocated to maritime cargo transportation, and containerised and non‑containerised cargo handling at ports and inland terminals.

In 2025, FESCO Group consumed a total of 258.3 thousand tonnes of reference fuel, of which transportation operations accounted for 92.6%, terminal operations for 5.8%, and other operations for 1.6%.

In 2025, FESCO upgraded its automated corporate system for accounting fuel and energy resources. New features were added to plan and standardise fuel and energy use in terminal operations, factoring in changes in both external and internal environments.

Energy intensity

GRI 302‑3, MED 23

Energy saving

GRI 302‑4

As part of its energy management system and Energy Policy implementation, FESCO developed and put in place the Energy Saving and Energy Efficiency Improvement Programme for 2025. It includes Organisational and Technical Action Plans for Energy Saving and Energy Efficiency Improvement at FESCO and its Controlled Entities, targeting reductions in energy consumption across maritime transport operations, building heating systems, loading/unloading equipment, special and motor transport vehicles and equipment, railway infrastructure needs, lighting system upgrades, and process flow streamlining.

To achieve the programme’s goals FESCO relies on its energy management system involving:

• regular analysis of fuel and energy consumption using visualisation tools;
• internal, certification and inspection audits.

Energy efficiency metrics are part of the KPIs for responsible managers and relevant professionals, both in the parent company and in controlled entities.

In 2025, total fuel and energy savings driven by the Energy Saving and Energy Efficiency Improvement Programme amounted to 5.75 thousand tonnes of reference fuel (vs planned savings of 4.25 thousand tonnes). For 2026, an updated programme raises the savings target to 4.41 thousand tonnes of reference fuel.

Resource savings in physical terms

As part of the 2025 Energy Saving and Energy Efficiency Improvement Programme:

• a range of measures were implemented to restore heating grids insulation, with entrance areas of administrative and production buildings also being insulated;
• the refrigerated container fleet was renewed with containers having improved thermal characteristics;
• organisational measures were carried out to improve the efficiency of fleet operations and loading and unloading equipment;
• the share of container handling using cranes instead of reachstackers was increased;
• the roll‑out of the SSV (Smart Ship View) system for comprehensive monitoring of operational parameters and fuel consumption on vessels continued. As at the end of 2025, 20 vessels were equipped with the SSV system, up 33% from 2024.

The Group’s fleet complies with the energy efficiency requirements of the MARPOL Convention. Fuel consumption is monitored in accordance with the approved Ship Energy Efficiency Management Plans (SEEMP). All vessels under FESCO management have Registry certificates confirming proper data collection.

FESCO operates its fleet in line with an approved Energy Efficiency Plan, collecting and reporting data on fuel consumption, greenhouse gas emissions, and completed activities. These measures are also designed to reduce GHG emissions into the air.

Specific greenhouse gas emissions

FESCO Group’s primary mechanism for reducing greenhouse gas emissions is the efficient use of fuel and energy resources. Through energy saving measures and reduced specific energy consumption, the Group prevented 13.2 thousand tonnes of СO₂‑e emissions in 2025.

Air protection

GRI 305‑7, SASB TR‑MT‑120a.1, TR‑RA‑120a.1, MED 19, SPBC 7

Waste management

GRI 306‑1, 306‑2

Waste management is one of the priorities of FESCO Group’s environmental policy. The Company places special emphasis on measures and initiatives aimed at reducing the total volume of waste generated and increasing the share of waste sent for recycling and neutralisation.

All temporary waste storage facilities fully comply with current environmental, sanitary, and epidemiological laws.

Waste generation

GRI 306‑3, MED 17, SPBC 5

Waste management

GRI 306‑4, GRI 306‑5, MED 18, SPBC 6

FESCO manages waste safely. Hazard class I and II waste is transferred to licensed organisations for recycling and neutralisation.

As part of its household waste reduction efforts, the Company ensures offices have no disposable tableware and provide bins for plastic collection. In addition, FESCO’s controlled entities also operate separate waste collection, accumulation and sorting areas.

Ship waste management

Waste generated during the operation of FESCO’s vessels is managed in accordance with the International Convention for the Prevention of Pollution from Ships (MARPOL 73/78), including Annex V (Prevention of Pollution by Garbage from Ships), as well as applicable national laws.

To prevent negative impacts on the marine environment, the Group’s vessels are equipped with a separate waste collection and accounting system. Each vessel maintains a Garbage Record Book, which forms part of the ship’s log or is kept as a separate document. The book records all waste handling operations, including transfer to reception facilities, incineration in shipboard incineratorsUnits intended for burning waste., authorised discharge at sea, and exceptional cases of loss or accidental discharge. For each operation, the date, vessel position, waste category and volume are recorded.

Waste is recorded according to the MARPOL classification, which includes nine main waste categories. Depending on the type of waste and operating conditions, the following methods apply: Categories B and C waste may be disposed of directly on board in shipboard incinerators. The resulting ash is recorded as a separate waste category and must be further managed as required. Waste that cannot be incinerated is transferred to port reception facilities or other vessels, and then to specialised organisations for processing, recycling or neutralisation.

Permitted waste discharges at sea are carried out strictly in accordance with MARPOL requirements and are recorded in the ship’s log. Exceptional cases of accidental discharge or waste loss are documented with reasons and circumstances. No accidental discharges or waste losses were recorded in 2025.

Compliance with waste management requirements is monitored through the environmental management and industrial control system. The data from this monitoring is used to prepare the Group’s consolidated environmental reporting, analyse waste generation structure and trends, and plan waste reduction measures.

Water consumption and protection of water resources

GRI 303‑1, 303‑2

In water resource management, FESCO follows national laws and international standards.

To control the impact of the Group’s entities on water bodies, prevent contamination of open water bodies, and reduce water consumption, the Company implements the following measures:

• monthly monitoring of wastewater for compliance with permissible discharge limits as part of industrial environmental control conducted by an accredited organisation;
• studies of seabed sediments and marine biota in the Golden Horn Bay;
• comprehensive efforts to clean the water area adjacent to the wharves of the Golden Horn Bay of floating oil slicks and non‑natural debris;
• measures to foster a culture of responsible water consumption.

Water consumption and discharge

GRI 303‑3, 303‑4, 303‑5, MED 13, 15, SPBC 1, 4

FESCO has a minimal impact on natural water bodies. Group companies do not withdraw ambient water from surface or groundwater sources. All water used by Group entities is fresh, and none of the Company’s operating regions are water‑stressed.

Water is supplied under a contract with a utility provider. Consumption from centralised sources is metered using water flow meters. In 2025, centralised consumption fell by 26.8% to 208.5 thousand cu m, due to reduced spraying of coal stockpiles.

To reduce its impact on water bodies, the Company discharges wastewater (stormwater and domestic sewage) into surface water bodies only after preliminary treatment at local treatment facilities.

Ship water management

FESCO manages ship wastewater in accordance with the International Convention for the Prevention of Pollution from Ships (MARPOL 73/78), the International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWM), and applicable national laws.

Ballast, bilge and wastewater operations are recorded in ship logs:

• Sewage Record Book (SRB) – records of sewage operations, including their dates, volumes and locations;
• Oil Record Book (ORB) – records of operations related to the generation and discharge to shore reception facilities of oil sludgeOil‑containing residues resulting from fuel oil separation., bilge waterOily bilge water. and oil residues;
• Ballast Water Record Book (BWRB) – records of ballast water operations, including dates, volumes, coordinates and the methods of ballast water treatment or exchange.

Ship water is handled by type. Oil sludge, bilge water and water containing oil residues are discharged to shore reception facilities for further treatment. Domestic sewage is collected in separate onboard tanks, disinfected using special lamps (units), and may then be discharged in MARPOL‑permitted waters.

Emergency discharges are permitted only in the event of an emergency threatening the safety of the vessel or crew. No such incidents occurred in 2025.

FESCO’s vessels are also equipped with ballast water management systems that provide mechanical filtration and disinfection before water is loaded into ballast tanks, as well as anti‑fouling systems.

Biodiversity

GRI 101‑1, 101‑2, 101‑4

Responsible biodiversity management

FESCO operates in accordance with national laws and also takes into account international requirements, including the provisions of the Convention on Biological Diversity, the International Convention for the Control and Management of Ships’ Ballast Water and Sediments, the International Convention on the Control of Harmful Anti‑fouling Systems on Ships, the Kunming‑Montreal Global Biodiversity Framework, and other documents that align with the Group’s goals.

FESCO’s activities do not affect areas with high biodiversity value, including UNESCO World Heritage sites, federal and regional protected areas, wetlands, key ornithological territories of Russia, nor do they have any confirmed impact on the Russian Red Data Book plant and animal species protected by law or listed on the IUCN Red List.

To monitor biodiversity at the Group’s assets, FESCO engages a specialised organisation to carry out regular studies of marine biota. These include surveys of aquatic biological resources in the work area to promptly prevent any negative impact from the Company’s operations and to avoid pollution of open water bodies.

In July 2025, industrial environmental monitoring of seabed sediments and marine biota was conducted in the Golden Horn Bay, near the wharves of Commercial Port of Vladivostok.

Specialists from the engaged organisation took samples at twelve observation points using an auxiliary vessel. The study included observations of phytoplankton, zooplankton, ichthyoplankton, zoobenthos and macrophytobenthos.

To prevent open water bodies from deteriorating, an accredited organisation regularly monitors wastewater to ensure it meets discharge limits. In addition, FESCO cleans its controlled water area of floating debris and other contaminants.

Preventing invasive species spread

FESCO complies with the requirements of MARPOL, the International Convention for the Control and Management of Ships’ Ballast Water and Sediments, and the International Convention on the Control of Harmful Anti‑fouling Systems on Ship, including:

• prohibition of untreated wastewater discharge at sea;
• mandatory installation of wastewater treatment systems on all vessels;
• mandatory treatment of vessel ballast water;
• use of anti‑fouling systems;
• ban on tin‑containing organic compounds in ship coatings and paints used to limit or prevent hull fouling.

When necessary, vessels are cleaned of biofouling in ports using diving services. Vessels are also retrofitted with anti‑fouling systems during dry docking, and these systems are periodically inspected by regulatory authorities.

Ballast water management

Ballast water is essential for safe and efficient shipping. Managing it properly is a key part of maritime environmental safety, aimed at preventing invasive species from spreading between different marine areas.

FESCO complies with the International Convention for the Control and Management of Ships’ Ballast Water and Sediments, which sets rules for ballast water exchange and quality standards. All FESCO’s vessels are equipped with ballast water treatment systems that mechanically filter and disinfect water before it enters ballast tanks.

Ballast water operations are subject to mandatory logging. Each vessel keeps a Ballast Water Record Book, where it logs records dates, volumes, coordinates and methods of ballast water treatment or exchange operations. The Company uses this data for internal control and provides it to port and supervisory authorities upon request.

Reproduction of aquatic biological resources

FESCO runs projects to preserve populations of aquatic biological resources and support their natural reproduction. In April 2025, as part of the Save the Salmon campaign, the Company released 10 thousand juvenile Pacific salmon into the Barabashevka River in the Khasansky Municipal District of the Primorye Territory.