Climate Change Data

Norwegian Cruise Line Holdings Ltd.

Climate Impact & Sustainability Data (2020)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:1,442,306 MTCO2e
Scope 1 Emissions:1,442,306 MTCO2e
Scope 2 Emissions:3,931 MTCO2e
Scope 3 Emissions:1,287 MTCO2e
Renewable Energy Share:0%
Total Energy Consumption:18,658,337.74 GJ
Water Consumption:2.5 million m3
Waste Generated:1,031 tons recycled
Carbon Intensity:Estimated 14% reduction in CO2 emissions per capacity day between 2015-2019

ESG Focus Areas

  • Reducing Environmental Impact
  • Sailing Safely
  • Empowering People
  • Strengthening our Communities
  • Operating with Integrity and Accountability

Environmental Achievements

  • Purchased 3 million tons of carbon offsets (commitment over 2021-2023)
  • Estimated elimination of ~11 million single-use plastic water bottles and ~50 million plastic straws annually
  • ~70% of operational capacity or 13 ships equipped with Exhaust Gas Cleaning Systems by the end of 2021
  • 100% of ships have Advanced Wastewater Purification systems
  • ~83% of water used onboard in 2020 was self-produced

Social Achievements

  • Provided approximately $10 million of cash support to six Alaska port communities impacted by loss of tourism during COVID-19
  • Provided more than $2 million of in-kind humanitarian relief to support various community organizations worldwide
  • Launched online diversity, equity & inclusion training, including unconscious bias training
  • 45% of total U.S. supply spending in 2020 was with small businesses or businesses with minority, veteran or economically disadvantaged qualifications
  • Offered a Paid Volunteer Day to all U.S. shoreside team members beginning in 2021

Governance Achievements

  • Established the Technology, Environmental, Safety and Security (TESS) Committee in 2019 to oversee corporate social responsibility and sustainability
  • Created a dedicated ESG department in early 2020
  • Established the Sail & Sustain Executive Leadership Council and the Sail & Sustain Task Force in early 2021 to further integrate ESG oversight
  • 100% code of ethical business conduct certification annually

Climate Goals & Targets

Long-term Goals:
  • Reach carbon neutrality
Medium-term Goals:
  • Reduce the carbon emissions rate industry-wide by 40% by 2030 compared to a 2008 fleet baseline
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • COVID-19 pandemic significantly impacted operations and financial performance
  • Supply chain disruptions due to the pandemic
  • Climate change risks (transition risks from potential future carbon pricing policies and physical risks from increased storm frequency and severity)
Mitigation Strategies
  • Developed the comprehensive SailSAFE™ health and safety program, including mandatory vaccinations for initial voyages
  • Implemented strategies to minimize supply chain disruptions, including re-directing product and consolidating orders
  • Purchasing carbon offsets to address gaps in decarbonization efforts
  • Undertaking carbon risk scenario planning to evaluate financial impacts of climate risks and develop mitigation strategies

Supply Chain Management

Supplier Audits: 67 quarterly business reviews with suppliers in 2019; 55 third-party food safety audits conducted over the past 12 months

Responsible Procurement
  • Vendor Code of Conduct launched in 2018
  • Supplier diversity program
  • Focus on sustainable sourcing of seafood, chicken, and eggs
  • Eliminating single-use plastics

Climate-Related Risks & Opportunities

Physical Risks
  • Increased storm frequency and severity leading to business interruption
Transition Risks
  • Potential future policies that would create a cost of carbon
Opportunities
  • Development of energy-efficient products and technologies

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 14001

Third-party Assurance: DNV

UN Sustainable Development Goals

  • Goal 3: Good Health and Well-being
  • Goal 5: Gender Equality
  • Goal 6: Clean Water and Sanitation
  • Goal 7: Affordable and Clean Energy
  • Goal 8: Decent Work and Economic Growth
  • Goal 11: Sustainable Cities and Communities
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action
  • Goal 14: Life Below Water
  • Goal 15: Life On Land

Company initiatives contribute to these goals through various programs and partnerships

Sustainable Products & Innovation

  • JUST® Water partnership
  • Vero Water® partnership
  • Eco-friendly cocktails
  • Bio-based cups
  • Unbleached wheat straw fiber foodservice containers
  • Biodegradable or stainless steel cutlery

Awards & Recognition

  • Forbes America’s Best Large Employers
  • USCG William M. Benkert Marine Environmental Award- Gold (2018, 2014, 2012)
  • 2020 IIDASFC Bragg Award for “Best Hospitality Commissioned” interior
  • 2018 American Institute of Architecture Award in the Unbuilt category