Matson : 2022 Sustainability Report

Message

From Our Chairman

and CEO

Aloha!

Over our 141-year history of serving the Pacific, Matson has adapted and responded to a variety of changes in our world. From Matson's early sailing ships, to the advent of passenger liners, to the conversion of these ships into troop transport vessels in World War II, and to our modern fleet, our company has evolved and grown through both prosperous and challenging times. Last year was no exception.

We started 2022 with very strong demand for all of our services as customers sought expedited delivery solutions. But as the months passed, the economic environment shifted and we began returning to a "new normal." Matson remained well-positioned for success because we stayed focused on our mission: To move freight better than anyone.

Doing it right

Our mission may sound simple, but staying true to this commitment takes diligence and hard work. Consistently delivering on time and handling cargo with care are critical to reinforcing the confidence our customers have in Matson as a reliable and resilient partner. We also recognize that earning the trust of our customers and other stakeholders extends beyond just what we do: how we operate and manage the risks and opportunities associated with our business are just as important.

We continue to focus on our environmental, social and governance (ESG) priorities. Among our top ESG priorities are reducing our impact on climate change; cultivating a diverse, equitable and inclusive workplace; providing our employees with opportunities for career growth and development; strengthening Board oversight of our ESG strategy; and maintaining a strong companywide governance structure.

ESG governance

Matson's full Board of Directors is actively engaged in overseeing our ESG strategy. This strategy includes our approach to climate change and climate adaptation planning; workforce management; diversity, equity and inclusion (DE&I); regulatory compliance; health and safety; information security; and community giving.

In 2022, ESG topics were presented or discussed at every regularly scheduled Board meeting. Our Board has reviewed and approved Matson's ESG-related disclosures, including this 2022 Sustainability Report.

Consideration of ESG goals is part of Matson's decision-making and capital allocation planning. For example, in approving Matson's recent approximately $1 billion investment to build three new Aloha Class vessels, it was important that these vessels advance our environmental objectives through state-of-the-art design such as fuel efficient hulls and dual-fuel engines that allow them to run on liquified natural gas (LNG). The fuel tanks in these vessels are also being designed to accommodate future carbon-neutral or renewable fuels. These new ships are expected to be delivered in 2026 and 2027.

Addressing climate change

To help address the urgent problem of climate change, we are making significant investments in green technology and LNG sourcing. The three new LNG- ready Aloha Class vessels, as well as the planned modifications to three existing Matson vessels over the next two years to enable use of LNG, are expected to move us significantly closer to achieving our near-term goal of a 40% reduction in emissions from our owned fleet. Along with preparing for the transition to LNG, we are also taking steps to improve the efficiency of our vessels and reduce fuel consumption.

We recognize that LNG is not the ultimate solution for achieving our long-term goal of net zero Scope 1 greenhouse gas (GHG) emissions for our owned fleet.

To get there, we are working collaboratively with industry partners on potential fuel sources of the future. While no easy answers are readily available, we are working to make our transition to a zero-carbon future a reality.

Promoting diversity, equity and inclusion

Matson believes that an inclusive, diverse and equitable work environment is important not only to being a great place to work for everyone, but also contributes to the success of our business. As part of our overall business strategy, we actively promote diversity within our leadership ranks by offering development opportunities for employees of diverse backgrounds. In 2022, more than one-third of internal promotions and new hires into management roles were women and over half were minorities.

We are purposeful about cultivating an inclusive environment consistent with our culture of aloha. Annual trainings on DE&I topics have served to deepen our understanding and appreciation of each other and promote the value of inclusion. And our commitment to equal pay for equal work drives periodic assessments that advance equity in our compensation programs.

To help promote diversity in our industry, Matson is investing in scholarship programs and internships to encourage more women and minorities to pursue careers in the maritime and logistics sectors. In 2022, we awarded 20 scholarships to diverse, high-achieving students and we recruited five interns from diverse backgrounds.

Developing our workforce

Matson's workforce is characterized by uniquely skilled, long-tenured employees. To create career pathways for future leaders while planning for the loss of retiring employees, we take a proactive approach to succession and career planning. We focus on providing the next generation of promising talent with the tools they need to build their careers at Matson. In 2022, 44% of our open positions were filled through internal promotions. In addition, Matson provided approximately 3,500 hours

of employee training and professional development opportunities and offered a tuition reimbursement program.

Having a robust strategy for workforce development is essential in today's challenging labor market - and it is important to Matson's long-term success that we continue to attract, retain and engage employees and live up to our vision of being a great place to work for everyone.

Working sustainably

While we began the journey of sustainability reporting in late 2019, our tradition of sustainable business practices has been a part of our company's success for more than a century. Our external reports have formalized our efforts and helped focus our priorities, improving the way we measure progress while elevating our transparency and communications. I'm proud of the progress we've made in three and a half short years and am excited about the work ahead. As our journey continues, Matson will stay on course with the continuing oversight of our Board of Directors and the dedication of our employees.

We invite you to read Matson's 2022 Sustainability Report to get a clearer view of the progress we are making toward a more sustainable future. Feedback is important to us, so please let us know what we are doing well and how we can improve.

Sincerely,

Matt Cox

Chairman and Chief Executive Officer

July 18, 2023

We also recognize that earning the trust of our customers and other stakeholders extends beyond just what we do: how we operate and manage the risks and opportunities associated with our business are just as important.

Matson's

Business

Founded in 1882, Matson (NYSE: MATX) is a leading provider of ocean transportation and logistics services. Matson provides a vital lifeline of ocean freight transportation services to the domestic noncontiguous economies of Hawaii, Alaska and Guam, and to other island economies in Micronesia. Matson also

2022 FAST FACTS

Fairbanks

operates premium, expedited services from

Anchorage

Wasilla

China to Long Beach, California, provides service to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from ports in Alaska to Asia. The company's fleet of owned and chartered vessels includes containerships, combination container and roll-on/roll-off ships and custom-designed barges.

Matson Logistics, established in 1987, extends the geographic reach of Matson's transportation network throughout North America and Asia. Its integrated, asset-light logistics services include rail intermodal, highway brokerage, warehousing, freight consolidation, supply chain management and freight forwarding to Alaska. Additional information about the company is available at www.matson.com.

Soldotna

Kodiak

Dutch Harbor

Brisbane

Juneau

Monterrey

Mexico City

Nawiliwili

HAWAII

LEGEND

Hawaii Service

China-Long Beach Express (CLX)

China-Long Beach Express+ (CLX+)

Alaska-Asia Express (AAX)

Alaska Service

Guam / Micronesia / Okinawa Service

South Pacific Service

Partner Carrier