Norwegian Cruise Line Holdings has 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.
“We are now more focused than ever on fulfilling 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 around the world,” said Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings Ltd. “Our 2021 ESG Report highlights our progress and commitments on our key ESG priorities, providing critical transparency to our major stakeholders. We don’t plan to stop here and will continue to build on our achievements to date as we collectively chart a path toward a more sustainable future.”
The 2021 ESG Report highlights the company's key progress since its last published report and the impact initiatives underway across the five pillars of its Sail & Sustain program, which include:
1. Reducing Environmental Impact
● Committed to achieving net-zero greenhouse gas emissions by 2050 across all operations and the company's value chain.
● Joined the Methanol Institute in 2022 to collaborate, share, and adapt solutions for the future.
● Committed to offsetting three million metric tons of carbon dioxide equivalent (MTCO2e) over a three-year period, from 2021 to 2023, to help bridge the gap in its decarbonization efforts while exploring long-term solutions, such as alternative fuels.
● Set a goal to have approximately 70% of the company's fleet equipped with shore power capabilities by 2025, enabling these vessels to connect to shore power grids while in ports with the appropriate infrastructure.
● New PortMiami terminal, the world's first LEED Gold New Construction V4.0 cruise terminal.
● Water management has continued through self-production of approximately 80% of the water used on board in 2021.
● The Supplier Code of Conduct was updated in 2022 and a Responsible Sourcing Mission Statement and an Animal Welfare Commitment were introduced.
2. Sailing Safely
● The existing strong commitment to health and safety has been enhanced in response to COVID-19 with its comprehensive SailSAFE™ health and safety program.
● The SailSAFE Global Health and Wellbeing Council has been established, chaired by Dr. Scott Gottlieb.
3. Employee Motivation
● The commitment to maintaining a culture of diversity, equity, and inclusion in the workplace has been strengthened with the signing of the CEO Action Commitment for Diversity and Inclusion by President and CEO Frank Del Rio in March 2022.
● At the end of 2021, approximately 48% of the global ground managers and senior team were women, and approximately 49% of the U.S. ground managers and senior team identified as belonging to an underrepresented minority.
● 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.
● Nearly $1.5 million was invested in office protocols, such as antigen testing, office safety improvements, and on-site nurses, since 2020 to protect team members during the COVID-19 pandemic. Employee support was provided through the company's student loan and tuition reimbursement programs, with over $375,000 paid out in 2021.
4. Community Building
● It has been established that, beginning in 2021, all U.S. ground crew members will have one paid volunteer day to support community engagement efforts.
● Numerous philanthropic initiatives have been launched.
● The company’s Crew Relief Fund was activated, and ongoing communications, logistical support, and counseling were provided to Ukrainians and other crew members affected by the Russia-Ukraine conflict in 2022. An additional $100,000 was also pledged to Save the Children’s Ukraine Crisis Relief Fund.
5. Operating with Integrity and Responsibility
● ESG oversight at the Board of Directors with the Technology, Environment, Safety and Security (“TESS”) Committee.
● A formal governance structure has been created to monitor and accelerate progress on climate action and the decarbonization strategy, consisting of the Decarbonization Steering Committee and a Decarbonization Action Group.
