Norwegian Cruise Line Holdings (NCLH) publishes Annual ESG Report

   June 6, 2023 ,   Cruise Industry

Norwegian Cruise Line Holdings Ltd (NCLH), currently the world's 4th-largest cruise shipowner, managing the fully owned subsidiaries NCL-Norwegian Cruise Line, Oceania, and RSSC-Regent Seven Seas, has released its 2022 ESC (Environmental, Social, and Governance) report and Sustainability Accounting Standards Board (SASB) index.

The publication is part of NCLH's comprehensive sustainability program "Sail & Sustain" which focuses on five key areas: Reducing Environmental Impact, Sailing Safely, Strengthening Communities, Empowering People, and Operating with Integrity and Accountability.

The report emphasizes the corporation's progress in implementing its ESG strategy and goals. Harry Sommer, the president and chief executive officer-elect of Norwegian Cruise Line Holdings Ltd., highlights the company's commitment to operating in a socially responsible and environmentally respectful manner while contributing positively to society. The Sail & Sustain program is a crucial driver of the company's long-term value and stakeholder engagement.

Jessica John, the vice president of ESG, Investor Relations, and Corporate Communications of NCLH, states that the report reflects the company's progress, commitment to transparency, and dedication to strengthening disclosures for stakeholders.

The report covers various ESG initiatives implemented by NCLH throughout the year. Key highlights include:

  • Reducing Environmental Impact:

Climate action strategy and emissions reduction targets: NCLH has introduced an updated climate action strategy that focuses on efficiency, innovation, and collaboration. The company has set ambitious short- and near-term targets to reduce greenhouse gas (GHG) emissions intensity by 10% by 2026 and 25% by 2030, compared to a 2019 baseline.

Methanol-Ready newbuilds: NCLH has modified two PRIMA Class ships to accommodate the future use of green methanol as an alternative fuel source, demonstrating its commitment to decarbonization.

Water stewardship: NCLH has improved water production rates while implementing efforts to decrease water consumption. In 2022, 90% of the freshwater used across the fleet was produced on board.

Testing biodiesel fuels: NCLH has successfully tested small quantities of biodiesel blends in four of its ships, with plans to expand testing to more than 20% of the fleet by the end of 2023.

Investing in shore power: NCLH has equipped 12 ships with shore power capabilities, allowing them to connect to onshore electrical grids for power supply while docked. The company continues to invest in expanding this technology, with the goal of enabling approximately 60% of the fleet with shore power by the end of 2023 and approximately 70% by the end of 2025.

  • Sailing Safely:

Comprehensive public health program: NCLH operates a robust 24/7/365 public health and safety program, exceeding regulatory requirements and working closely with health authorities worldwide to continuously improve policies and procedures. The company's crew members are highly trained in outbreak prevention and response.

Continuous public health training and education: NCLH conducts regular online collaborations and annual in-person summits in partnership with government agencies and suppliers to provide ongoing public health training.

Prioritized safety and security efforts: NCLH places utmost importance on safety and security at sea, conducting regular third-party audits to ensure compliance. Each ship has a resident Safety Officer, and crew members participate in regular safety training and drills.

  • Empowering People:

Enhanced employee benefits: NCLH has expanded its suite of employee benefits, including fully paid maternity, paternity, and adoption leave, as well as family planning assistance for full-time USA shoreside team members.

Fostering an inclusive workforce: The company prioritizes diversity and inclusion, with a significant representation of women and underrepresented minorities in its global shoreside workforce. NCLH has also appointed diverse candidates to lead its brands, promoting internal talent and empowering employees.

Training and development opportunities: NCLH offers extensive training and development programs for its team members, accumulating over 800,000 hours of training across various roles and responsibilities.

  • Strengthening Communities:

Philanthropic contributions: NCLH has made significant monetary and in-kind donations, contributing over $2 million to nonprofit organizations worldwide. The company has supported disaster and crisis relief efforts, including recovery efforts after Hurricane Ian in Southwest Florida.

Connection between travel and education: NCLH's Giving Joy program recognizes top educators each year and awards them with free cruises for their outstanding commitment to inspiring students. In 2022, the program awarded 100 teachers across North America, accompanied by contributions to their schools.

Carbon offsets: NCLH has purchased 1.6 million carbon offsets, supporting 14 projects globally and investing in cleaner energy sources. These offsets contribute to the company's decarbonization journey and promote local job creation.

  • Operating with Integrity and Accountability:

ESG metric tied to compensation: The Board of Directors' Compensation Committee has included an ESG metric in the short-term incentive plans, ensuring accountability for NCLH's progress in reducing GHG emissions.

Ethical business conduct: NCLH maintains a strong emphasis on ethical practices, requiring team members to review and certify the Code of Ethical Business Conduct annually.

Diverse board composition: NCLH welcomed a new board member, Zillah Byng-Thorne, bringing her extensive experience in the technology sector to the company. The board is approximately 50% diverse, including female and under-represented minority representation.