MMA Offshore : 2023 Sustainability Report

Sustainability Report

ESG Strategy

Sustainability continues to be at the core of MMA's purpose and is integral to our overall strategy to grow the business sustainably into the future.

Building a Diversified Revenue Base

Our core belief that "marine resources should be developed sustainably" drives our strategic direction as we continue to transform our business along with the global energy transition.

Whilst our traditional markets of oil and gas will continue to be an important revenue source for the business for some time, we are focused on diversifying our revenue streams into sectors which support the energy transition such as offshore wind along with other adjacent marine markets such as government and defence and environmental services.

Pleasingly, offshore wind represented 24% of our total revenue during FY2023 and we expect this to grow over time.

Our environmental and stabilisation business, which was acquired in July 2022, is now fully integrated and we are excited to be able to contribute to the improvement of our coastlines and marine habitats through our artificial reefs and coastal erosion solutions. We also see significant opportunity to incorporate our reefs into new wind farm developments to enhance the marine ecology around these large- scale developments.

MMA is also ideally positioned to support the decommissioning of oil and gas infrastructure and has experience in converting decommissioned structures into artificial reefs, significantly enhancing the ecological outcomes of these projects.

MMA's ESG strategy continues to be focused on the following key elements:

Environment - how MMA performs as a steward of nature.

Social - how MMA manages its relationships with employees, suppliers, customers and the community.

Governance - how MMA is governed.

During FY2023, we made significant progress across a range of initiatives within our ESG strategy.

MMA's key ESG initiatives are aligned with several of the United Nations Sustainable Development Goals, which address the key challenges currently faced globally.

MMA is focused on Goals 3, 5, 7, 8, 10, 12, 13 and 14 which are the most relevant to our operations.

We believe marine resources should be developed sustainably.

Environment

Waste Management

MMA is committed to the responsible management of waste generated as a result of our operations which includes both waste minimisation and waste recycling programs. A dedicated 'Waste Management Working Group' has been established which is led by the Executive General Manager Risk and reports to MMA's ESG Steering Committee. This working group is dedicated to establishing waste management strategies across

all our operations with a number of programs underway including waste recycling, elimination of single use plastics onboard our vessel fleet and supply chain improvements.

The waste recycling program ensures that both our onshore facilities and vessels have the ability to segregate and recycle waste. This is supported by a robust compliance program that ensures end-to-end management, providing comfort that our waste recycling initiatives are in fact making a difference. MMA's waste management and recycling program is extensive and includes wastepaper and cardboard, plastics, glass, e-waste and hazardous items.

Management of Adverse

Environmental Events

MMA has stringent controls in place to mitigate the risk of adverse environmental events such as spills.

Our marine operations are conducted in accordance with approved procedures which are regularly reviewed and revised to ensure they capture operational improvements and regulatory changes. All vessel crew are appropriately trained and have a robust understanding of these processes and are empowered to call a 'Stop to the Job' if risks or changes are identified that have the ability to negatively impact the environment.

During FY2023, MMA recorded three minor environmental spill events, however due to the small volumes and preparedness processes, these did not result in

any release to the environment, were contained and addressed with no negative environmental impact.

MMA's vessel fleet operates in multiple geographical locations and as such, effective and compliant ballast water management is critical to ensuring we do not cause biodiversity incidents that have

Emissions Reduction

In support of our overarching ESG strategy, MMA has established a Decarbonisation Working Group which is actively working on operational efficiencies, new technologies and changes in processes to reduce the emissions from our operations.

As our emissions predominantly stem from the CO2 emitted by our vessels burning Marine Gas Oil ("MGO"), a low-sulphur marine fuel, this is our primary area of focus. MMA utilises MGO in comparison to Heavy Fuel Oil ("HFO") which is utilised by the majority of the shipping industry, and as such, our fuel burn in comparison has a much lower level of carbon emissions.

To effectively address and fulfil our commitment towards further reducing our emissions, we have developed a comprehensive decarbonisation strategy with a focus on fuel efficiency initiatives until such a time as alternative fuels for vessels are available. Significant progress has been made with this strategy over the past year, specifically in the following areas.

Digitalisation

Digital transformation is a crucial enabler

Environmental Management Systems

MMA believes that marine resources should be developed sustainably and has a robust suite of management systems and associated programs to support that aim.

Our ISO 14001 certified Integrated Business Management System provides the foundation and key operational processes to ensure we go about our day-to-day operations with a focus on minimising our environmental impact. These processes are regularly reviewed, assessed and audited to ensure our level of compliance never wavers.

We are proud to report that once again MMA had no non-compliance against industry standards and regulations and no adverse or reportable environmental incidents during FY2023.

Environmental Regulations & Conventions

As a marine and subsea service provider, MMA operates in a highly regulated industry and is committed to 100% compliance with all applicable international regulations and conventions to ensure we continue to protect the marine environments in which we operate.

These include:

• International Convention for the Prevention of Pollution from Ships
  (MARPOL 73/78);
• Technical Code on Control of Emission of Nitrogen Oxides from Marine Diesel
  Engines;
• MARPOL Chapter IV - Regulations on Energy Efficiency for Ships -
  Collection and Reporting of Ship Fuel
  Consumption Data for >5000 GRT Vessels;
• International Ballast Water Management and Performance
  Standard (D-2);
• Biofouling management applies to All
  Vessels in line with MEPC.207(62); and

• Inventory Hazardous Materials ("IHM")
  Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 certification in place, allowing for efficient ship recycling when needed.

In addition to those regulated standards, MMA remains abreast of upcoming changes in the regulatory environment and is focused on implementing systems and processes to ensure that regulatory change transitions are smooth and compliance is never compromised.

The Energy Efficiency Existing Ship Index ("EEXI") is a measure introduced by the International Maritime Organization ("IMO") with the aim to reduce the greenhouse gas emissions of existing ships. The EEXI is a measure related to the technical design of a ship, which requires vessel owners to assess and demonstrate the energy efficiency of their vessels. Although the EEXI regulation currently does not apply to the vessels within MMA's fleet, we are proactively implementing internal systems that will facilitate future compliance and robust reporting capability.

The elimination of single use water bottles will be a significant step forward for MMA once fully implemented. Potable water systems had previously been trialled onboard a select number of vessels, however due to the systems being incompatible with the vessel operating environment and a discontinuation of supplier maintenance support, this trial was halted. MMA is currently investigating alternative vendors with the aim of progressively installing potable water systems across the fleet.

We have embarked on a comprehensive fleet digitalisation program to harness emerging technologies and data analytics to drive efficiencies and minimise our environmental footprint.

the ability to impact the delicate balance of our ocean ecosystem. In accordance with the IMO's Ballast Water Management Convention (D-2 Standard) we have a change management program in place to ensure compliance is effectively managed to mitigate ballast water management incidents and maintain compliance with the Standard. Having taken into consideration the nature of our operations, four vessels within our fleet have converted closed loop ballast water management systems, completely mitigating the requirement to conduct ballast water exchange at sea, two vessels have approved exemptions

to the Standard due to their limited area of operation and a portion of our fleet are currently in planning to have D-2 compliant systems fitted in accordance with their International Oil Pollution Prevention ("IOPP") expiry dates. The remainder of the fleet is D-2 compliant with approved ballast water management systems fitted.

of our decarbonisation strategy, and we have embarked on a comprehensive fleet digitalisation program to harness emerging technologies and data analytics to drive efficiencies and minimise our environmental footprint. Through this program, we will equip all our vessels with the technology required to optimise efficiency and sustainability, to provide further transparency for our clients and to enhance the welfare of our crews.

As a preliminary step towards digitalisation and as a key enabler for operational improvements, we undertook a substantial upgrade of our Daily Vessel Reports ("DVR") in late 2022. These reports, completed by the vessel staff on a daily basis to record operational vessel data, have undergone a comprehensive review. The enhanced DVR now incorporates a detailed breakdown of activities, engine and fuel usage, cargo information, crew and passenger details, HSE KPIs and other metrics. By incorporating automations, we have ensured the data is readily available onshore for further analysis and sharing with our clients. A range of reports and dashboards have been developed to facilitate analysis, particularly in support of our operational improvement efforts.

MMA has digitised its daily vessel reports, and increased the parameters reported by 300% - this valuable data can be used to track energy efficiency initiatives.

FY2023 Emissions

MMA has calculated its emissions for its global operations for the financial year ended 30 June 2023 with its Scope 1, Scope 2 and Scope 3 emissions outlined below.

Scope 1 emissions reduced consistent with the higher utilisation of our vessels, with Scope 1 reflecting the fuel usage when vessels are not under charter.

Scope 2 emissions reduced due to the divestment of our Batam Supply Base as well as a number of leased facilities being

Supporting the Energy Transition

Offshore Wind

MMA is focused on growing its revenue from sectors such as offshore wind, utilising our skills and assets to facilitate the global energy transition.

Operational Improvements

Our digitalisation program will include the installation of advanced sensors and monitoring systems, enabling real-time data on fuel consumption, emissions and operations performance. This data will be integrated into data analytics platforms to facilitate continuous monitoring, analysis and informed decision-making.

The acquisition and accessibility of fuel consumption patterns allows us to establish baselines from which operational improvements can be identified and efficiency gains implemented. Detailed data on fuel consumption, engine load and trim relative to the vessel's operating profile will allow us to optimise the engine configurations used, determine the optimal trim and speed and maximise fuel economy in different operating modes. We will then outline and implement best practices for vessel operations, emphasising fuel- efficient navigation, maintenance and onboard practices. This approach will yield substantial fuel savings.

As a pilot trial, MMA has successfully installed a digitised fuel monitoring system onboard one of our OSVs, the Mermaid Cove. We collaborated closely with a Singapore-based technology partner, Brightree, who specialise in providing accurate real-time measurement and

Another critical aspect of optimising the fuel efficiency of our vessels is hull condition.

A hull covered in marine growth will have a significantly higher drag coefficient, resulting in loss of speed or increased fuel consumption to maintain the same speed. We are therefore rolling out hull initiatives to our fleet, including the application of top- grade anti-fouling treatments, which offer a reduced/slower rate of fouling, and are looking to carry out mid-docking cycle hull and blade cleans.

Team Engagement Campaigns

We firmly believe that engaging our vessel team members is vital to achieving our sustainability goals. To foster engagement and a culture of environmental stewardship and energy-consciousdecision-making among our marine staff, we are conducting annual engagement campaigns. These campaigns serve as a platform for sharing our initiatives and findings with the crew, while simultaneously gathering their feedback and ideas. We will also establish regular communication channels to share updates, success stories and challenges related to decarbonisation, as well as implement an incentive program to encourage and reward innovative ideas and initiatives.

New Technologies

MMA has dedicated extensive efforts to researching the potential benefits of Energy Storage System ("ESS") battery technology onboard our vessels. However, based on our operational profiles and the current available technology, the associated benefits have not yet justified its adoption as a practical option. Nonetheless, we will periodically reassess the value of implementing this technology onboard our vessels.

When renewing our fleet, the incorporation of alternative fuel technology will be a key driver in our investment decisions,

to support our drive to reduce our fleet's carbon footprint. Significant research and trials have been conducted in recent years, in particular by the major marine engine manufacturers, around adapting engine technology to the use of alternative fuels such as methanol, ammonia and hydrogen. However, at this stage there are still no readily available engines which can run on one of these alternative fuels, nor regional availability of the fuels. Until a specific alternative fuel reaches a sufficient level of technological maturity and is determined to be the optimal alternative fuel for our type of marine operations, with secure availability, MMA is not in a position to utilise alternative fuels in our current fleet. This consideration will however be pivotal for any future newbuild vessel. In the

Scope 1 reflects MMA's direct fuel use and associated emissions while our vessels are off-hire and fuel is under MMA's operational control. Typically, once MMA's vessels have been contracted, fuel comes under the client's operational control and emissions are classified as Scope 3. Vessels used in our subsea survey operations are classified as either Scope 1 or Scope 3 based on the scope of work and operational control test.

Vessel emissions are calculated based on the fuel used as recorded on the Daily Vessel Reports with the appropriate emissions factor applied. The other key emissions sources are electricity, oil and gas used to power our premises and emissions related to travel. These are calculated using the source data provided from suppliers with appropriate regional emissions factors applied.

Fuel burn and total emissions are correlated with vessel utilisation, with fuel use considerably higher when vessels are working. To facilitate a comparison over time, we have used "available vessel days" as a normalisation factor to calculate emissions intensity for MMA's owned fleet as the fleet size and utilisation fluctuates.

MMA's overall emissions for FY2023 decreased by 10% in comparison to FY2022. The primary reason for the reduction in emissions was fewer owned and chartered vessels in the fleet in comparison to the prior year.

shut down or subleased.

Scope 3 emissions increased reflecting the higher percentage of days our vessels were on charter.

Total emissions per available vessel day increased due to the higher vessel utilisation which increased from 73% in FY2022 to 80% in FY2023, whilst total emissions per utilised vessel day decreased slightly from the prior year.

Emissions intensity is highly dependent on the nature and location of the work, the distances required to be travelled and the modes of operation while the vessel is working, limiting the insights to be gained from a simple emissions intensity ratio. During FY2023, vessels operated between the Middle East, Africa, Asia and Australia.

The work being carried out by our decarbonisation team will provide greater insights into our emissions intensity at various modes of operation and enable us to work with our clients (who generally direct our operations) to optimise fuel burn and ultimately reduce our overall emissions.

During FY2023, we increased our share of revenue from offshore wind from 9% to 24% and remain focused on increasing this percentage over time.

We had several vessels working the offshore wind market in Taiwan during the year including three of our larger vessels

• the MMA Pride, MMA Prestige and MMA Pinnacle. Our subsea division was also active with a number of geophysical survey scopes conducted during the year.
  Pleasingly, we completed our first project in
  South Korea opening up a new market for
  MMA with significant development forecast over the coming years.

Momentum is also building in the Australian offshore wind market. Following a change of government, Australia has committed to significantly increasing its renewable energy capacity by 2030 and has commenced the licencing process for six designated offshore wind zones around Australia.

This has led to a swathe of potential Australian projects totalling up to 45GW in capacity being announced, reflecting the strong momentum in the industry. Whilst the Australian offshore wind industry is in its infancy, site feasibility studies will require significant seabed mapping and geotechnical survey work which MMA is ideally positioned to provide.

We will continue to focus on growing this part of our business with the longer- term aim of continuing to increase our revenue from supporting clean energy developments.

monitoring of fuel consumption, as well as real-time asset tracking. This system allows detailed and accurate monitoring of fuel consumption for each engine across the vessel's various operating modes, with instant remote access to the data and associated reporting dashboards. We will also be exploring the integration of voyage planning technology, which considers factors such as tides or weather, to further enhance fuel efficiency.

MMA's Decarbonisation Working Group is closely monitoring the advancements in applicable technologies including alternative fuels, hull cleaning technology and battery technologies. We actively participate in relevant forums to ensure we remain up to date with the latest relevant technological advances.

In order to assess the viability of promising technologies, we are conducting desktop studies which will be followed by onboard trials where feasible. The objective is to identify effective technologies that can be implemented to reduce our carbon footprint.

meantime, we are however exploring the utilisation of biofuels as a temporary drop-in fuel, once their availability reaches a point where it becomes a viable option.

MMA remains steadfast in our commitment to decarbonisation and sustainability. Over the past year, significant progress has been achieved through our decarbonisation strategy and we will continue to leverage technology, innovation and collaboration to reduce our carbon footprint while upholding the highest standards of safety, efficiency and reliability in our operations.

Offshore Wind Revenue Growth % of Revenue from Offshore Wind

Supporting Healthy Oceans

As a marine services company, MMA is passionate about enabling the ocean communities in which we operate to thrive, above and below the waterline. In FY2023, we continued our pioneering work in ecosystem engineering with projects

in Tasmania, the North Sea and Western Australia whilst supporting research with leading institutes.

Enhancing Offshore Wind

During FY2023, MMA collaborated with DEME Group to deploy a prototype reef off the Belgian coast, exploring the benefits of incorporating engineered reef substrates into the North Sea's wind parks. The massive scale of these offshore wind parks presents a unique opportunity for operators to create multifunctional ecosystems that benefit multiple users and the environments within which they coexist.

Contributing to Coastal Resilience

Researchers have been investigating the benefits of the coral canopy, seagrass and dune restoration in combination with engineered fringing reefs to establish resilient shorelines for our coastal communities.

Building on our 2022 installation of a wave attenuating reef off C.Y. O'Connor Beach situated along the coastline of Perth, Western Australia, the Australian Government's Coastal and Estuarine Risk Mitigation Program is co-funding the second stage of the reef development with the City of Cockburn. Early engineering and project planning is currently underway with installation planned for later in 2023. The C.Y. O'Connor project will be monitored over a three-year period by UWA to gauge the success of coastal erosion mitigation, serving as a valuable example for national and international government and commercial organisations.

We see MMA's attenuating reef designs as a potential scalable solution to combat

King Reef, Exmouth

Recently commissioned underwater photography of the King Reef site in Exmouth showed a plethora of coral and fish species have inhabited the reef in the five years since the reef was installed.

Social

Fringing reefs act as natural barriers, reducing the energy of incoming waves before they reach the shore. Engineered fringing reefs can be designed to enhance this wave attenuation effect. By absorbing and dissipating wave energy, they help protect the shoreline from erosion and minimise the impact of storm surges.

MMA is making an important contribution to improving coastal resilience through our long-term collaboration with the University of Western Australia ("UWA"), which has resulted in a multi-year research program into working with nature solutions for coastal erosion control. With co-funding from MMA and the Australian Research Council, UWA researchers have made

a number of advances in the design of fringing reefs, mimicking natural reefs which attenuate wave energy.

the erosion of our coastlines globally as a result of rising sea levels and more frequent extreme weather events as a result of climate change.

Enhancing Australian Fisheries

Artificial Reef Installations, Tasmania

During FY2023, MMA installed two new artificial reefs in Tasmania - one off Bruny Island and the other at Turners Beach on the north coast. The reefs, the first of their kind in Tasmania, consisted of a total of 318 reef modules across a total area of eight hectares of seabed. Over time we expect the reef to be colonised with marine organisms similar to the surrounding rock reef habitats, as well as the establishment of a new resident fish population including species such as snapper, morwong and yellowtail kingfish.

King Reef was designed and installed by MMA as an innovative 'rigs to reef' concept using decommissioned oil and gas infrastructure to create a significant new marine habitat. The resounding success of this project should provide further opportunities for MMA to partner with the oil and gas industry on future projects to sustainably decommission infrastructure for the benefit of our oceans and communities.

Tourism & Marine Habitat Creation

The Wonder Reef on Australia's Gold Coast has been installed for just over 12 months and is exceeding expectations as both a dive attraction and ecosystem. Some of the new marine species on the reef include large Queensland groupers that have made the site their home. Divers during the whale migration season have also been treated to a unique soundtrack of whale song as they explore the reef.

Employee Health & Safety

At MMA, we protect and prioritise the health, safety and wellbeing of our people. This commitment is at the heart of our Target 365 philosophy to achieve "a Perfect Day, Every Day," and serves as the guiding principle that shapes our operations, practices and policies.

In FY2023, MMA's Total Recordable Case Frequency ("TRCF") was 0.26, a slight improvement on the previous year. We recorded one medical treatment case which occurred during routine subsea back deck operations. When compared to our industry peers and the industries in which we operate, our TRCF demonstrates world- class performance and is evidence that our safety culture is thoroughly embedded in all areas of our operations.

Total Recordable Case Frequency

(Per Million Manhours)

Target 365 Leadership Engagement Program Refresh

MMA's Target 365 Leadership Engagement Program has been developed to promote and facilitate active engagements by MMA's leadership group with the broader MMA workforce. This program ensures transparent accountability throughout

the peer group and fosters a culture of responsibility and oversight, from the Managing Director downwards.

Engagement targets are agreed by all, engagement tasks and activities are visible to all within the program and performance against those targets is visibly managed. The conduct of active leadership engagements has positively contributed to MMA's safety performance whilst also supporting MMA as an employer of choice and one that is recognised for its investment in the development and

We see MMA's attenuating reef designs as a potential scalable solution to combat the erosion of our coastlines globally.

In line with MMA's Target 365 program, an internal measure utilised as an assessment of our safety performance is our number of 'Perfect Days' achieved. 'Perfect Days' are the key metric of our Target 365 program, with a perfect day being a day free of recordable injuries or material incidents.

In FY2023, we achieved 347 (95%) perfect days - a slight improvement on the previous year.

However, MMA recognises that such measures are lagging indicators of performance and as such, a considerable focus is placed on our leading indicators, HSEQ programs and initiatives and ongoing leadership engagements. During FY2023, the following initiatives and improvements were delivered and continue to positively contribute to maintaining our strong safety focus and performance.

recognition of its employees. During FY2023, MMA's Target 365 Leadership Engagement Program was also announced as a joint winner of the International Marine Contractors Association ("IMCA") Safety Awards.