Norwegian Cruise Line Holdings Releases 2021 Environmental, Social and Governance (ESG) Report
Mumbai , India– June 9, 2022 – Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (the “Company”), a leading global cruise company which operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, today published
Mumbai , India– June 9, 2022 – Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (the “Company”), a leading global cruise company which operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, today published its 2021 Environmental, Social and Governance (“ESG”) Report and Sustainability Accounting Standards Board (“SASB”) index as part of the Company’s global sustainability program, Sail & Sustain. Highlights from the Company’s previously published 2021 Task Force on Climate
related Financial Disclosures (“TCFD”) Report are also included in the 2021 ESG Report.
“We are more focused now than ever on our commitment to drive a positive impact on society and the environment through our global sustainability program, Sail & Sustain. The success of our business and our ability to deliver long-term value to our stakeholders is undeniably linked to the health of our planet, our people and the communities we visit worldwide,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. “Our 2021 ESG Report highlights our progress and commitments on our top ESG priorities, providing critical transparency to our key stakeholders. We do not plan to stop here and we will continue to build upon our accomplishments to-date as we collectively chart a path towards a more sustainable future.”
The 2021 ESG Report highlights the Company’s key advancements since its last published report and impactful initiatives underway across the five pillars of its Sail & Sustain program, including:
Reducing Environmental Impact
• Committed to pursue net zero greenhouse gas emissions by 2050 across the Company’s operations and value chain. To support the path to net zero, the Company also committed to develop short- and near-term greenhouse gas reduction targets.
• Joined the Methanol Institute in 2022, a global trade association for the methanol industry which represents the world’s leading methanol producers, distributors and technology providers, to collaborate, share and adapt solutions for the future. Alongside strategic partners such as engine manufacturers and classification societies, the Company is assessing the feasibility of retrofitting existing engines to operate with dual fuels – diesel and methanol – with the goal to test the use of methanol by 2025.
• Committed to offset three million metric tons of carbon dioxide equivalent (MTCO2e) over a three year period from 2021-2023 to help bridge the gap in its decarbonization efforts as it explores long term solutions such as alternative fuels.
• Established target for approximately 70% of the Company’s fleet to be equipped with shore power capabilities by 2025, allowing these ships to connect to onshore electrical power grids while in ports with the required infrastructure.
• Welcomed guests to its new state-of-the-art PortMiami terminal, the first LEED Gold New Construction V4.0 cruise ship terminal in the world.
• Continued focus on water stewardship by self-producing approximately 80% of water used onboard in 2021. Targeting a 4% decrease in bunkered water by 2025, as compared to 2019. • Updated Supplier Code of Conduct in 2022 and introduced a Responsible Sourcing Mission Statement and Animal Welfare Commitment all of which can be found here.
• Enhanced existing robust commitment to health and safety in response to COVID-19 with its comprehensive SailSAFE™ health and safety program. The robust SailSAFE program consists of new and enhanced protocols to create multiple layers of protection against COVID-19.
• Established the SailSAFE Global Health and Wellness Council, the Company’s expert public health council, chaired by former Commissioner of the U.S. Food and Drug Administration Dr. Scott Gottlieb.
• Strengthened commitment to maintaining the Company’s culture of diversity, equity and inclusion in the workplace with President and CEO Frank Del Rio signing the CEO Action pledge for Diversity & Inclusion in March 2022. As of year-end 2021 approximately 48% of the global shoreside manager and above team was female and approximately 49% of the U.S. shoreside manager and above team self-identified as an under-represented minority.
• Launched new team member resource group in 2022, EMBRACE, which focuses on diversity in leadership for managers and above.
• As part of its supplier diversity program, the Company estimates that approximately 39% of U.S. supply chain spending in 2021 was with small businesses or businesses with minority, veteran or economically disadvantaged qualifications.
• Named by Forbes to the 2021 list of the World’s Best Employers and by the South Florida Business Journal to its 2022 Healthiest Employers honorees.
• Nearly $1.5 million was invested in office protocols such as antigen testing, office safety enhancements and onsite nurses since 2020 to protect team members during the COVID-19 pandemic.
• Supported employees through Company’s student loan repayment and tuition reimbursement programs, paying over $375,000 in 2021.
Strengthening our Communities
• Provided a Paid Volunteer Day for all U.S. shoreside team members beginning in 2021 to support community involvement efforts.
• Provided approximately $12 million in cash, cruise and other in-kind donations in 2021 to various important causes.
• Launched numerous philanthropic initiatives including Norwegian Cruise Line’s Giving Joy campaign which recognized hardworking teachers. As part of the 2021 Giving Joy campaign, 100 teachers across the U.S. and Canada were awarded a free week-long cruises for two, which were collectively valued at over $750,000. In addition, the top three winners were awarded $10,000, $15,000 or $25,000 for their schools from the cruise line.
• Activated Company’s Crew Relief Fund and providing ongoing communications and logistical support and
counseling to Ukrainian and other team members impacted by the Russia-Ukraine conflict in 2022. Also pledged an additional $100,000 to Save the Children’s Ukraine Crisis Relief Fund.
Operating with Integrity and Accountability
• ESG oversight at the Board of Directors level with the Technology, Environmental, Safety and Security (“TESS”) Committee.
• The Compensation Committee of the Board approved the inclusion of an ESG metric, tied to progress on setting greenhouse gas reduction targets, as part of the Company’s 2022 short-term incentive compensation program (“STI”). STI eligible employees extend deep into the organization encompassing the shoreside Manager and above leadership team.
• Created a formal governance structure to oversee and accelerate progress on climate action and decarbonization strategy consisting of the Decarbonization Executive Steering Committee and a Decarbonization Action Group.
The 2021 ESG Report and additional information on the Company’s global sustainability program, Sail & Sustain, can be found on the Company’s website at http://nclhltd.com/sustainability.
About Norwegian Cruise Line Holdings Ltd.
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a leading global cruise company which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. With a combined fleet of 28 ships with approximately 60,000 berths, these brands offer itineraries to approximately 500 destinations worldwide. The Company has nine additional ships scheduled for delivery through 2027, comprising approximately 24,000 berths.
About Sail & Sustain
Sail & Sustain is Norwegian Cruise Line Holdings’ global sustainability program centered around its commitment to drive a positive impact on society and the environment while delivering on its vision to be the vacation of choice for everyone around the world. This program is structured around five pillars developed through cross-functional collaboration with key internal and external stakeholders. The pillars include: Reducing Environmental Impact, Sailing Safely, Empowering People, Strengthening our Communities and Operating with Integrity and Accountability.