KNOT Offshore Partners LP : ESG Report
KNOP
Published on 06/25/2025 at 08:28
2024
ESG : Report
2 - KNOT Offshore Partners LP : ESG REPORT 2024 ESG REPORT 2024 : KNOT Offshore Partners LP - 3
KNOT OFFSHORE PARTNERS LP ("KNOP" or
the "Company") is a market-leading shuttle tanker owner and operator serving the oil
SEAFARERS ONBOARD AT DEC 31, 2024:
773
1 : Introduction
and gas industry. KNOP is organized as a master limited partnership and is listed on the New York Stock Exchange (NYSE) under the ticker 'KNOP'.
KNOP owned 18 shuttle tankers as of December 31, 2024. KNOP's most critical objective is to operate safely. Shuttle tankers transport oil from offshore installations to onshore facilities in much the same way
as a pipeline but with greater flexibility and without requiring the construction and installation of extensive, fixed sub-sea infrastructure.
All shuttle tankers today are built to the customer's requirements, typically on a long-term contracted basis. KNOP's vessels primarily operate in Brazil, the North Sea and the Barents Sea, and are managed on third-party terms by one of its sponsors, Knutsen NYK Offshore Tankers AS ("KNOT") who themselves are also a market-leading operator of shuttle tankers. KNOT is part
of the wider Knutsen Group of shipping companies that have owned and operated shuttle tankers since the market's inception in the 1970s.
This report is compiled in accordance with the Norwegian Shipowners' Association's 2021 ESG reporting guidelines. These guidelines are based on a set of predefined material issues and corresponding disclosures for the shipping industry developed by the Sustainability Accounting Standards Board (SASB)/Value Reporting Foundation, and reference is also made to the UN Sustainable Development Goals.
This report covers the period 1 January to 31 December 2024.
FLEET SIZE AT DEC 31, 2024:
18
DEADWEIGHT TONNAGE AT DEC 31, 2024:
2 490 024
278
NUMBER OF CARGOES IN 2024*:
NAUTICAL MILES TRAVELLED BY VESSELS IN 2024:
450 845
206.6M
EBITDA FOR 2024:
38.8%
EQUITY RATIO AT DEC 31, 2024:
THE SHIPPING INDUSTRY stands at the intersection of energy security and environmental responsibility. As global concerns over energy supply intensify, KNOP remains committed to ensuring the reliable
transportation of energy resources while proactively aligning with evolving climate regulations. Our strategic focus is on innovation and advancing technological solutions that address key environmental, social, and governance (ESG) challenges. We recognize our responsibility to the environment in which we operate, to our people, and to the broader stakeholder community. This commitment is reflected in our ability
to reduce our Scope 1 emissions by over 20,000 mt CO2 eq. compared to 2023. This achievement underscores our dedication to sustainable
operations and our ability to adapt effectively to regulatory developments while meeting rising stakeholder expectations.
A major development in 2024 was the inclusion of maritime shipping in the EU Emissions Trading System (EU ETS), applying carbon costs to emissions from voyages to, from, or within the European Economic Area. This marked a significant shift toward embedding emissions pricing into maritime operations and highlighted the sector's growing commitment to reducing greenhouse gas emissions.
KNOP navigated a pivotal year of regulatory change, with a strong focus on the implementation of the EU Emissions Trading System (EU ETS) requirements and at the same time, KNOP advanced preparations for the FuelEU Maritime regulation, which complement the EU ETS by shifting attention from stack emissions to the carbon intensity of fuel used
onboard. The Fuel EU regulation would come into force on January 1, 2025. The regulation follows a GHG well-to-wake approach, evaluating emissions across the full lifecycle of fuel. The GHG intensity of energy use is measured in terms of GHG emissions per unit of energy (gCO₂e/MJ). The baseline for this calculation is the fleet's average well-to-wake GHG intensity in 2020, which was 91.16 gCO₂e/MJ.
Starting in 2025, a phased reduction will be implemented beginning with a 2% decrease, increasing to 6% by 2030, and accelerating from 2035 onward to achieve an 80% reduction by 2050. By the end of 2024, all KNOP vessels had their new FuelEU Monitoring Plans approved, ensuring that robust systems were in place for precise data collection and verification. These combined efforts reflected KNOP's commitment to a smooth and proactive transition into the evolving regulatory landscape
To further strengthen our fleet towards a lower GHG footprint, KNOP acquired the Tuva Knutsen from KNOT on September 1, 2024 and, in turn, divested the Dan Cisne to KNOT. The Tuva Knutsen represents a strategic upgrade in fleet efficiency and environmental performance. The vessel
is equipped with advanced technologies, including a KVOC (Knutsen Volatile Organic Compound) recovery system, a Mewis duct for improved propulsion efficiency, a reverse osmosis water treatment plant, energy-efficient LED lighting, and the ShipShave hull cleaning system, which
In 2023, the European Sustainability Reporting Standard (ESRS), the draft reporting framework set out under the EU Corporate Sustainability Reporting Directive (CSRD), was finalized and adopted by the European Commission. In 2024, KNOP started preparing for the upcoming CSRD requirements. Our dedicated environmental team collaborated closely with CSRD authorities and underwent CSRD training to ensure a deep understanding of the directive's operational framework.
In 2024, KNOP undertook a comprehensive double materiality assessment as part of our broader sustainability strategy. This process involved collaboration across multiple departments and was guided by the requirements of the ESRS, in preparation for the CSRD, originally set to take effect on January 1, 2025. The assessment enabled us to systematically identify and prioritize the most material environmental, social, and governance (ESG) factors relevant to our operations. It also included a structured evaluation of our impacts, risks, and opportunities (IROs) to ensure alignment with the evolving regulatory landscape.
In April 2025, the European Parliament and Council approved the Stop the Clock Directive, delaying implementation timelines for certain sustainability reporting and due diligence requirements. In light of the revised CSRD timeline, we anticipate publishing our first fully compliant sustainability report in 2028. Nonetheless, KNOP remains committed to advancing our sustainability reporting framework in accordance with CSRD principles. This interim step is intended to ensure a structured and transparent transition, demonstrate our commitment to enhanced ESG disclosures, and support stakeholders in assessing our progress toward full compliance.
With data reliability being more important than ever KNOP entered into a new agreement with DNV as our accredited verifier in 2024, leveraging their Emissions Connect platform to enhance the accuracy and timeliness of our emissions data. This digital portal provides verified emissions data on a daily basis, covering key regulatory areas such as the Carbon Intensity Indicator (CII), EU Emissions Trading System (EU ETS), and FuelEU Maritime.
The adoption of Emissions Connect enables KNOP to access trusted, high-frequency emissions data, significantly reducing the risk of reporting errors. This enhanced level of data transparency and accuracy ensures more informed decision-making and strengthens our ability to comply with evolving regulatory requirements in the maritime sector.
With focus, innovation, and commitment, we continue to strengthen our Company and prepare for the future. This report outlines our values, progress, and dedication to ESG, offering transparent and consistent updates on our key initiatives, policies, and performance.
June 2025
* Since the vessels are engaged in numerous smaller cargo operations, it was decided to calculate the total cargo loaded in 2024 (in m³) and divide it by the vessel's capacity. As a result, the recorded number of cargo operations in 2024 appears significantly lower compared to 2023.
enables continuous hull maintenance while in transit. These features contribute to reduced fuel consumption and emissions, aligning with our commitment to environmental sustainability.
Trygve Seglem
Chairman
KNOT Offshore Partners
Derek Lowe
Chief Executive Officer and Chief Financial Officer KNOT Offshore Partners
2 : ESG framework and disclosures
MANAGEMENT SYSTEM
KNOP has outsourced the day-to-day management of its vessels to KNOT and the Partnership also receives administrative and technical support from the wider Knutsen Group. To monitor the fleet's ESG performance, the Board of Directors ("the Board") receives quarterly reports from KNOT which include performance metrics
on ESG issues, operational KPIs and financial variances as well as maintaining regular dialogue with KNOT's technical management teams.
The KNOT Management System is an ISM Code-certified system, ensuring compliance with all applicable requirements and regulations for vessels and companies. This system is regularly audited and approved by a third party. All vessels and crew hold the necessary permits, licenses and certificates to carry out operations and did so throughout 2024. KNOT is also ISO 14001-2015, ISO 9001-2015
COOPERATION INITIATIVES
Incentra supports the International Marine Purchasing Association (IMPA) ACT and its member companies
to become sustainability frontrunners. IMPA has been representing the interests of the marine procurement profession and promoting cooperation between buyers and suppliers since 1978. The IMPA ACT is a standardised responsible supply chain management system which decreases bureaucracy both for suppliers and shipping companies. KNOT, through the Knutsen Group's membership of Incentra, has implemented a responsible supply chain management system in line with the IMPA ACT.
The International Association of Independent Tanker Owners (INTERTANKO) is a trade association working on a range of operational, technical, legal and commercial issues affecting tanker owners and operators around the world. The Knutsen Group has been a member since the organization
KNOP IS CONVINCED that sustainable operations support the long-term interests of the Company and its stakeholders, as well as being in its best financial interest. The Company's core values are credibility, innovation, and care, and these are reflected in the Company's work, culture and reputation amongst business partners.
KNOP reports in accordance with the Norwegian Shipowners' Association's ESG Guidelines (the "Guidelines") as updated in November 2021. The Guidelines allow KNOP to report on issues that are material and relevant to both internal and external stakeholders.
The Guidelines are based on internationally recognized reporting frameworks, including the Sustainable Stock
Exchange Initiative, the Poseidon Principles, the Global Reporting Initiative (GRI) and the Marine Transportation Disclosure Framework established by the Value Reporting Foundation and the Sustainability Accounting Standards Board (SASB). SASB has developed 77 globally applicable industry-specific standards which identify financially material sustainability topics and associated metrics.
The 17 Sustainable Development Goals (SDGs) define global sustainable development priorities and aspirations for 2030. The SDGs call for worldwide action among governments, businesses and civil society to end poverty and create a life of dignity and opportunity for all, within the boundaries of the planet. While not a reporting framework per se, many businesses refer to the SDGs in their reports.
and OHSAS 18001 certified. The Company is regularly vetted and audited by the oil majors as well as Class and Flag States which ensures alignment with regulatory standards and application of best practices. In 2024, KNOP had two office audits by oil majors, and Class and Flag administrations.
KNOP's vessels are vetted by the oil majors on average every 4 to 6 months.
RESPONSIBLE SUPPLY CHAIN MANAGEMENT
In selecting suppliers, KNOP works hard to choose reputable business partners who are committed to the highest ethical standards and who maintain strong and robust business practices. All suppliers above a de minimis limit must sign
a Supplier Code of Conduct which states the Company's expectations and standards regarding legal obligations as well as covering issues such as human and labour rights, employment conditions, health and safety, environment and corruption.
was established in 1970.
The Knutsen Group, of which KNOT is a part, joined the NCE Maritime Clean-Tech in 2016. This is a Norwegian cluster focusing on finding new clean maritime solutions with commercial potential.
The Knutsen Group has been an active member of the Maritime Anti-Corruption Network (MACN) since 2014. This is a global business network, working towards the vision of a maritime industry free of corruption, enabling fair trade to the benefit of society at large.
is the most widely used international reporting framework for sustainability reporting, with over 90 per cent of
the largest companies in the world using this standard. GRI is based on international standards such as the UN Guiding Principles of Business and Human Rights, UN Global Compact and OECD Guidelines
for Multinational Enterprises.
help businesses identify, manage and report on the sustainability topics that matter most to their investors. SASB has developed 77 globally applicable industry-specific standards which identify a minimum set of financially material sustainability topics and their associated metrics for the typical company in an industry.
define global sustainable priorities and aspirations for 2030. The SDGs call for worldwide action among governments, business and civil society to end poverty and create a life of dignity and opportunity for all, within the boundaries of the planet. While not a reporting framework per se, many businesses refer to the SDGs in their reports.
RESPONSIBLE SHIP RECYCLING
The Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships aims to ensure that ship recycling processes do not pose any unnecessary risks to human health, safety or the environment. In 2021, EU ship recycling rules entered into force requiring EEA/EU flagged ships and third-party ships visiting EU ports to ensure the safe and environmentally viable management of hazardous materials, and the sustainable recycling of ships. A central requirement is to document any hazardous materials on board (Inventory of Hazardous Materials [IHM]). KNOP supports the Hong Kong Convention and seeks to fulfil all requirements set by the EU regarding ship recycling. All KNOP ships have received IHM certificates and documents of compliance. In the event of a sale to a scrap yard or to a buyer intending to scrap the vessel, environmental and safety procedures and audits
are carried out prior to signing a contract. In 2024, no KNOP
vessels were recycled or sold to be recycled.
3 : Environment and ecology
facilitate EUA management, KNOP opened a Maritime Operator Holding Account (MOHA) in the Union Registry, enabling us to receive and manage allowances efficiently. All EUAs related to KNOP vessels were verified and submitted to the administering authority by March 31, 2025. We are currently finalizing the process of receiving the remaining outstanding EUAs from charterers, with the final submission deadline set for September 30, 2025.
Although the majority of the KNOP fleet operates in Brazil and is therefore minimally impacted by EU ETS
requirements, we have proactively established contractual clauses with charterers to clarify EUA responsibilities for vessels trading into or within the EU. Charterers have
been informed of the number of outstanding allowances required for compliance. To support accurate tracking and reporting, KNOP has adopted Siglar Carbon's digital solution for effective EUA management across the fleet. While we
have not yet purchased EUAs directly, this system provides
THE COMPANY'S ENVIRONMENTAL RESPONSIBILITY
The Company recognizes its responsibility to take proactive measures in addressing the challenges - and opportunities -of climate change. We seek to protect the local environment and ecosystems where the vessels operate. The Company's policy commits to delivering environmentally friendly services that meet or exceed contractual obligations.
Suppliers and business partners, including charterers, are expected to adhere to the same environmental standards as the Company, which are stated in the Company's Supplier Code of Conduct.
All operations within the Company's control are planned and executed in a manner that minimizes environmental consequences. Managing environmental risks is therefore integrated into the overall management of the Company and environmental issues are aligned with other business priorities. The Company's environmental plan has a long-
REGULATORY FRAMEWORK
International environmental regulations are primarily set by IMO (UN Agency for international shipping). IMO's Initial GHG Strategy envisages a reduction in the Carbon Intensity of international shipping by at least 40 per cent by 2030, pursuing efforts towards 70 per cent by 2050, compared to 2008.
In 2023, this strategy was revised to ensure alignment with the Paris Agreement ambitions. The updated strategy includes an enhanced common ambition to reach net-zero GHG emissions from International shipping by or around, 2050, a commitment to ensure an uptake of alternative zero and near-zero GHG fuels by 2030, as well as indicative checkpoints for 2030 and 2040.
At the 81st session of the Marine Environment Protection Committee, a set of measures was defined to reach the 2023 IMO GHG Strategy target. These measures include two key components: a technical element focused on fuel GHG intensity and an economic element involving a GHG emissions pricing mechanism. In 2023, the IMO also introduced the "Annual Emission Ratio (AER)" and the
corresponding Carbon Intensity Index rating (CII). This rating is a key performance indicator for charterers, operators
and regulators. All vessels in the KNOP fleet are capable of achieving a C rating, which remains our operational goal. In 2024, one vessel received an E rating. A corrective action plan has been implemented to bring the vessel back to a C rating. The lower rating was primarily due to extended anchorage periods, with the vessel spending approximately 70 percent of its time at anchor. It is important to note that the Poseidon Principles, which assess the climate alignment of shipping finance portfolios, do not currently account for correction factors specific to shuttle tankers. As a result, the AER calculation for these vessels may not accurately reflect their
operational realities. Without these adjustments, the ratings can present a misleading view of shuttle tankers' actual carbon intensity performance, due to their unique trading patterns and extended periods of non-ballast operation.
This is why the effectiveness of the regulation is scheduled to be evaluated in 2026.
KNOP supports the Norwegian Shipowners' Association's Greenhouse Gas ("GHG") Strategy for 2030 and towards 2050, which is more stringent than the current IMO's ambitions. Ships must also comply with the regulations in the country of registration (Flag State). However, we believe that regional and national requirements, first and foremost EU and US regulations, will drive technical and operational improvements.
To prepare for the implementation of the FuelEU Maritime regulation in January 2025, KNOP took early and strategic steps to ensure compliance. By 2024, all KNOP vessels had their FuelEU Monitoring Plans approved by an accredited verifier, confirming our readiness ahead of the deadline.
These plans outline how emissions will be monitored and reported for each vessel. In addition, we continue to assess key regulatory mechanisms such as pooling, banking, and borrowing, with a focus on determining which entities within the Knutsen Group may be eligible to apply these flexibilities. We are also developing streamlined systems for tracking compliance balances to support efficient and transparent reporting under FuelEU Maritime.
In alignment with the European Union's decision to include maritime emissions in the EU Emissions Trading System (EU ETS) from 2024, KNOP has taken active steps to ensure full compliance with the regulation. Under this framework,
shipping companies are required to surrender EU Allowances (EUAs) corresponding to their verified CO₂ emissions. To
transparency and facilitates future decision-making. It is important to note that the current EU ETS includes only carbon dioxide (CO₂) emissions. However, as part of the broader regulatory changes, the EU MRV (Monitoring, Reporting and Verification) system was expanded in 2024 to include the reporting of methane (CH₄) and nitrous oxide (N₂O), two additional greenhouse gases emitted by ships.
These gases will be incorporated into the EU ETS from 2026, further extending the scope of the regulation.
term focus, but as regulations and available technologies change, it is periodically revised. The IMO's Carbon Intensity regulation became effective from January 1st 2023 and had top priority. In parallel, we introduced enhancements to vessel design, particularly in our new shuttle tanker models, which feature optimized hull forms that contribute to reduced fuel consumption and improved energy efficiency. Looking ahead, all vessels contracted after January 1, 2025, will comply with Energy Efficiency Design Index (EEDI) Phase
ESG REPORT 2024 : KNOT Offshore Partners LP - 9
3 standards. These vessels are designed to be 30 percent more energy efficient compared to EEDI Phase 0 vessels, which were introduced on January 1, 2013. These initiatives are fully aligned with the prioritized areas outlined in KNOP's five-year Environmental Plan (2024-2028), which focuses on reducing emissions, improving operational efficiency, and supporting the transition to a low-carbon shipping sector.
In 2024, we also increased the frequency of hull cleaning operations across the fleet as part of our efforts to enhance operational efficiency and reduce fuel consumption. Routine hull maintenance mitigates biofouling, thereby decreasing hydrodynamic drag and contributing to our overarching objective of reducing greenhouse gas emissions.
Environmental risks are managed through the ISO and ISM-certified Knutsen OAS Shipping's Shipping Management System (SMS). The system allows for
continuous monitoring of operations to make sure they are aligned with Company policies, international and statutory regulations, and contractual and legal obligations. The system registers, identifies and tracks all events including comprehensive preventive reporting and incidents covering all environmental aspects. This allows us to continuously improve operational procedures and technologies to meet environmental targets.
EFFORTS TO COMBAT CLIMATE CHANGE
The Carbon Intensity of our operations is reflected in the metrics "attained AER" and the corresponding "CII rating". This rating depends on vessel design as well as maintenance and operation of the ship and its equipment.
The design of shuttle tankers is based on charterers' requirements, regulations and the Yard's technical solution. Over time the design has become more efficient with less fuel consumption, reflected by the Energy Efficiency Design Index (EEDI). KNOP operates a young shuttle tanker fleet with an average age at the end of 2024 of 10.5 years, compared to the world average of 9.5 years. In 2024, Knutsen intensified its efforts to enhance operational sustainability through several key initiatives. As part of the GAAS (Green AI for Sustainable Shipping) project, the company began testing AI-driven optimization technologies on two vessels -Synnøve and Tove - to improve energy efficiency and reduce emissions.
KNOP continues to explore new ways to cut emissions, such as the use of biofuels, hull cleaning optimizing, as well as nuclear solutions. Additionally, the fleet saw expanded deployment of reverse osmosis systems, contributing to reduced boiler fuel consumption by minimizing reliance on traditional freshwater production methods. These developments reflect KNOP's ongoing commitment to
operational decarbonization and proactive compliance with upcoming maritime regulations. Since 2015, an ECO Care action plan to promote energy-saving onboard vessels has
also been implemented. Each ship is requested to carry out at least 15 defined actions. KNOP's fleet reported in total 621 ECO Care actions in 2024 (2023:596), with an average of over
34.5 per vessel.
Combined with other initiatives this contributes to raising the crew's awareness of environmentally friendly ship operations. An internal environmental group consisting of naval architects, and environmental and operational personnel has been established to find solutions to the environmental challenges the Company faces. One very significant and prime example of this is when Knutsen Technology (part of the Knutsen Group) developed a technology to reduce VOC emissions to the atmosphere
during the loading of cargo. As of the end of 2024, 13 vessels in KNOP's fleet have so far installed the KVOC technology or similar technology. Moreover, this technology is patented
and sold as KVOC®. The Company's focus on innovation and its passion for sustainable operations drive technological development in the direction needed to meet the Company's responsibilities and face relevant challenges.
A ZERO-SPILL POLICY
KNOP has a zero-spill policy. The Company's risk management systems and procedures and the implementation of its environment plan reduce the risk of harming the environment in which the Company operates, as well as ensuring compliance with international and local regulations. There were zero incidents related to spills in 2024.
TREATMENT OF BALLAST WATER
Ballast water is essential for safe and efficient modern shipping operations, however, it may pose serious ecological, economic and health problems due to the multitude of marine species carried in ships' ballast water. In line with IMO requirements and KNOP's Ballast Water Management Plan, each vessel complies with discharge standards. The whole KNOP fleet has installed Ballast Water Treatment Plants.
The whole KNOP fleet has installed Ballast Water Treatment Plants. 12 of the 18 systems are K-Bal (Knutsen design).
PLASTIC POLLUTION
Plastic pollution is harming the oceans and it endangers life at sea and on land. The IMO has announced a plan to prevent plastic pollution caused by the shipping industry.
The Company fully supports this initiative and abides by the MARPOL Convention Annex V, which states that plastic must either be incinerated or delivered ashore.
Over the last few years, the Company's awareness campaign reinforced the Company's desire to operate according to best practices in all aspects of plastic management.
8 - KNOT Offshore Partners LP : ESG REPORT 2024
Disclaimer
KNOT Offshore Partners LP published this content on June 25, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 25, 2025 at 12:27 UTC.