Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, environment, safety, security and sustainability

Environmental Achievements

• Reduced unit fuel consumption by almost 5% in 2014 and 25% since 2007
• Achieved a 20% reduction (per unit) in the intensity of carbon dioxide emissions from shipboard operations one year ahead of schedule
• Installing new exhaust gas cleaning systems on ships to meet 2015 low sulfur regulatory requirements
• Implementing energy saving technology initiatives across the fleet

Social Achievements

• Continued to strengthen relationships with travel agents through increased communication, feedback implementation, trade marketing, and educational programs
• Relocated Chief Operations Officer to China to oversee strategic initiatives and coordinate growth strategy

Governance Achievements

• Boards of Directors have Health, Environment, Safety & Security Committees (HESS Committees) comprised of independent directors to supervise and monitor HESS policies, programs, and initiatives

Climate Goals & Targets

Environmental Challenges

• Geopolitical factors impacting attractive itineraries
• Large cruise industry capacity increases in the Caribbean
• Increases in fuel prices
• Incidents affecting guest and crew health, safety, and security
• Negative publicity
• Compliance with environmental laws and regulations
• Changes in and compliance with laws and regulations relating to the protection of persons with disabilities, employment, health, safety, security and other regulations

Mitigation Strategies

• Fuel derivatives program to mitigate fuel price increases
• Policies, procedures, and best practices to limit incidents
• Comprehensive marketing and advertising programs to maintain reputation
• Installing exhaust gas cleaning systems and implementing energy-saving initiatives to meet environmental regulations
• Implementing appropriate measures to manage identified risks effectively

Supply Chain Management

Responsible Procurement

• Negotiating company-wide contracts for various goods and services

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather patterns or other natural disasters

Transition Risks

• Regulatory changes, stricter emission limits

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Environmental

Environmental Achievements

• AIDAnova, a cruise ship, was awarded the Blue Angel certification for environmentally friendly ship design.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Voyage disruptions from Hurricane Dorian, tensions in the Arabian Gulf, and delayed delivery of Costa Smeralda.
• Weakening economies affecting the Europe & Asia segment, a strong dollar, and IMO 2020 regulations.

Mitigation Strategies

• Additional cost improvements driven by leveraging scale.
• Close-in deployment changes to address the situation in the Arabian Gulf.
• Actions to bring capacity in Southern Europe more in line with demand.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CES® 2019 Innovation Awards Honoree for Ocean Medallion™

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved a 2% reduction in carbon intensity compared to 2019 (11% reduction for ships in guest cruise operations)
• Achieved a 30% reduction in food waste compared to 2019
• Used 290 million fewer single-use items compared to 2018
• Announced the rollout of Service Power Packages to improve energy and fuel efficiency
• Announced the expansion of Air Lubrication Systems to generate savings in fuel consumption and reduce carbon emissions
• AIDA Cruises and Holland America Line piloted the use of a blend of marine biofuel

Social Achievements

• Re-boarded over 100,000 team members to its ships
• Welcomed back nearly nine million guests
• Renewed focus on travel agent partner relationships and a growing sales force

Governance Achievements

• Reduced capital expenditures by over $500 million compared to previous guidance
• Commitment to excellence in compliance, environmental protection, and safety

Climate Goals & Targets

Environmental Challenges

• Uneven reopening of cruise travel around the world following the effects of COVID-19
• Impact of the invasion of Ukraine on European countries
• Impacts weighed on consumer confidence resulting in greater uncertainty and closer-in booking patterns
• High inflationary environment

Mitigation Strategies

• Strategic deployment decisions to increase closer-to-home and shorter duration itineraries
• Relaxed COVID-19 related protocols
• Significantly increased advertising activities
• Utilizing pricing philosophies to maximize revenue
• Rebuilding demand by providing extraordinary cruise vacations
• Working to optimize the combination of occupancy levels with ticket and onboard prices

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increasing frequency and/or severity of adverse weather conditions

Transition Risks

• Evolving and increasing regulations
• Shift in climate-conscious consumerism and stakeholder scrutiny

Opportunities

• Development of energy-efficient products