Norwegian Cruise Line Holdings Ltd.
Climate Impact & Sustainability Data (2020, 2023)
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:1,442,306.11 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 (significantly reduced due to voyage suspension)
Waste Generated:1,031 tons recycled
Carbon Intensity:Reductions in CO2 emissions per capacity day
ESG Focus Areas
- Climate Change
- Ocean Stewardship
- Waste Management
- Water Conservation
- Sustainable Sourcing
- Health & Safety
- Human Capital (including Diversity, Equity & Inclusion)
- Corporate Governance & Ethics
- Community Engagement & Economic Development
- Responsible Supply Chain
Environmental Achievements
- 3M tons of carbon offsets purchased (commitment for 2021-2023)
- 100% of ships on order equipped with cold-ironing capabilities
- 100% of ships with Advanced Wastewater Purification systems
- ~11M single-use plastic water bottles and ~50M plastic straws estimated to be eliminated annually
- ~70% of operational capacity equipped with Exhaust Gas Cleaning Systems by end of 2021
- Over 80% self-produced water used onboard
Social Achievements
- 100% participation in diversity, equity & inclusion training across U.S. shoreside workforce
- ~49% women in global shoreside leadership
- ~64% ethnically diverse U.S. shoreside employees
- $15/hr minimum wage for all U.S. shoreside employees
- 100% medical insurance premiums covered for furloughed team members due to COVID-19
- 100% U.S. shoreside team members receiving annual Paid Volunteer Day
- ~87% voluntary retention rate for U.S. shoreside team in 2020
Governance Achievements
- 1/3 female representation on Board of Directors
- 55% diverse Board of Directors
- 7 independent Directors out of 9 members
- 100% Code of Ethics certification annually
- ZERO tolerance policy for any discrimination or retaliation
Climate Goals & Targets
Long-term Goals:
- Carbon neutrality
Medium-term Goals:
- 40% reduction in industry-wide carbon emissions rate by 2030
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 and physical risks)
Mitigation Strategies
- Developed comprehensive SailSAFE™ health and safety program
- Implemented cost-cutting measures and furloughs
- Carbon offset program to address emissions gaps
- Collaborating on research and development for zero-emission technologies
- Scenario planning to assess climate change risks
Supply Chain Management
Supplier Audits: 67 quarterly business reviews in 2019; 55 third-party food safety audits
Responsible Procurement
- Supplier Code of Conduct; focus on diversity and sustainability; local sourcing
Climate-Related Risks & Opportunities
Physical Risks
- Increased storm frequency and severity
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 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)
- Goal 5 (Gender Equality)
- Goal 6 (Clean Water and Sanitation)
Company initiatives contribute to these goals through various programs and partnerships
Sustainable Products & Innovation
- Bio-based cups; plant-based cartons for water; eco-friendly cocktails
Awards & Recognition
- Forbes America’s Best Large Employers; IIDASFC Bragg Award; American Institute of Architecture Award; USCG William M. Benkert Marine Environmental Award
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:3,162,836 tCO2e/year
Scope 1 Emissions:3,162,836 tCO2e/year
Scope 2 Emissions:5,675 tCO2e/year (market-based), 4,861 tCO2e/year (location-based)
Scope 3 Emissions:2,655,885 tCO2e/year
Renewable Energy Share:<0.01% of total energy use
Total Energy Consumption:42,740,313 GJ/year
Water Consumption:7.6 million m3/year
Waste Generated:69,074 tons/year (landfilled), 15,941 tons/year (recycled), 47,479 tons/year (donated)
Carbon Intensity:Targets to reduce GHG intensity by 10% by 2026 and 25% by 2030.
ESG Focus Areas
- Reducing Environmental Impact
- Sailing Safely
- Empowering People
- Strengthening Our Communities
- Operating with Integrity & Accountability
Environmental Achievements
- Achieved target to test biodiesel on 20% of fleet, with plans to expand to 40% for 2024
- ~89% of total freshwater consumption was produced on board
- ~80% of wastewater discharge was treated
- ~48% of total ship waste diverted from landfills
- 50% of fleet equipped with shore power technology (goal of 70% by end of 2025)
Social Achievements
- Donated nearly $1.6 million in cash, cruise and other in-kind donations to various causes
- 94% of shoreside team members would recommend NCLH as an employer
- Over 300,000 training and development hours completed
- 59% of shoreside team members are women
- Established NCLH PRIDE resource group for LGBTQ+ community and allies
- Launched a parent mentor program
Climate Goals & Targets
Long-term Goals:
- Pursue net zero GHG emissions by 2050
Medium-term Goals:
- Reduce GHG intensity by 25% by 2030
- 100% of chicken that meets GAP or similar standards by 2025
- 100% cage-free eggs by 2025
- 100% gestation crate-free pork by 2027
- 100% certified sustainable seafood by 2025
Short-term Goals:
- Reduce GHG intensity by 10% by 2026
- Equip 70% of fleet with shore power technology by 2025
Environmental Challenges
- Limitations in green fuel production and financing for necessary infrastructure risk the cruise and maritime sector from decarbonizing.
- Challenges in scaling green methanol production and distribution.
Mitigation Strategies
- Implementing solutions for efficiency today, innovating for future solutions, and collaborating with stakeholders.
- Investing in shore power technology.
- Testing biodiesel blends and exploring green methanol.
- Reconfiguring designs for Prima Class ships to accommodate green methanol.
- Partnering with Global Maritime Forum, Methanol Institute, DNV, and ABB.
Supply Chain Management
Supplier Audits: Over 85 business reviews in 2023, third-party audits of food safety and waste vendors.
Responsible Procurement
- Supplier Code of Conduct
- Modern Slavery Statement
- ESG due diligence
- Sustainability training for Supply Chain Department
- Local and regional sourcing
Climate-Related Risks & Opportunities
Physical Risks
- Sea level rise & coastal flooding
- Wind & storm damage
- Power outages
- Flooding
- Grid reliability
- Drought & wildfire
- Temperature rise
- Team member & guest safety from changing temperatures
Transition Risks
- Cost of carbon
- Mandates & regulations
- Cost of energy transition
- Ability to attract capital
- Availability/cost of materials
- Climate-related reporting requirements
- Higher cost of equity & debt
- Customer demand for responsible practices
- Cost of carbon credits
- Litigation risk
Opportunities
- Development of energy-efficient products and services
- Investments in fuel efficiency reducing exposure to future carbon costs
Reporting Standards
Frameworks Used: SASB, TCFD
Certifications: ISO 14001
Third-party Assurance: Third-party verification over selected data
UN Sustainable Development Goals
- 3
- 5
- 6
- 7
- 8
- 11
- 12
- 13
- 14
- 15
The report details how various initiatives contribute to these SDGs.
Sustainable Products & Innovation
- Sail & Sustain cocktails
- Plant-based menu options
- Sustainable sourcing of food and beverages
- Aluminum cans replacing glass bottles for beer
Awards & Recognition
- Forbes’ 2023 list of World’s Best Employers