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Norwegian Cruise Line Holdings publishes 2023 “Sail & Sustain” report showcasing progress in sustainability initiatives

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (the “Company”), a leading global cruise company which operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands, recently published its 2023 “Sail & Sustain” Report, which details the Company’s progress in its global sustainability programme, emphasising the Company’s dedication to driving positive environmental and societal impact. This effort is a cornerstone of the recently unveiled “Charting the Course” strategy, guiding the Company’s mission for guests to “Vacation Better, Experience More.”

“Sustainability is at the core of our ‘Charting the Course’ strategy, which is built on four key pillars: people, product, platform, and performance, all deeply rooted in the foundation of our Sail & Sustain programme. We understand that the success of our business is inextricably linked to the health of our planet and communities, and that’s why we are dedicated to holistically integrating sustainability into our business strategy,” said Harry Sommer, President and CEO of Norwegian Cruise Line Holdings Ltd. “Our commitment to sustainability drives us to maintain high standards of operational excellence, achieve results responsibly, and create lasting value for our business and stakeholders.”

The 2023 Sail & Sustain Report highlights key advancements and commitments across the five pillars of Sail & Sustain: Reducing Environmental Impact, Sailing Safely, Strengthening Our Communities, Empowering People, and Operating with Integrity and Accountability.

Norwegian Cruise Line Holdings has received recognitions for its advancements through the “Sail & Sustain” programme, earning accolades such as the ESG Leader Gold Award at the 2024 ESG Shipping Awards, as well as being listed in Forbes’s Best Employer Lists in 2023 and 2024.

Key highlights from the 2023 Report under each pillar:

Reducing Environmental Impact:

  • Active Steps Toward Climate Action: In 2023, Norwegian Cruise Line Holdings introduced short- and near-term GHG intensity reduction targets to guide its path toward net zero by 2050. The net zero ambition applies to shipboard and shoreside operations (Scopes 1 & 2) and the value chain (Scope 3) including supply chain, well-to-wake fuel emissions, business travel, and more. Short- and near-term targets include reducing GHG intensity[1] by 10% by 2026 and 25% by 2030, compared with a 2019 baseline.
  • Expanding Shore Power Capabilities: By the end of 2023, the Company achieved its 2024 target of equipping 50% of the fleet with shore power technology and remains on track to equip ~70% by 2025.
  • Exploring Alternative Fuels: In 2023, we achieved our goal to test 20% of the fleet with a biodiesel blend by expanding tests to four ships throughout the year. Our new target is for 40% of the fleet to test biodiesel by 2024.
  • Boosting Onboard Water Production: In 2023, the Company consumed ~7.6 million cubic meters of fresh water on board, with ~89% produced on board through evaporators and reverse osmosis plants, reducing the need to bunker fresh water. The target is to reduce bunkering by 4% by 2025, compared with 2019.
  • Improving Waste Management: The Company is committed to reducing onboard waste, successfully recycling, incinerating, or donating ~48% of total ship waste in 2023 through innovative technologies, staff training, and stringent recycling programmes.
  • Enhancing Greenhouse Gas Emissions Reporting: Annually, the Company’s Scope 1, Scope 2, and relevant Scope 3 emissions are measured, estimated, and independently verified. Since 2019, emissions data and other climate-related information have been disclosed to the CDP, with the most recent submission earning a climate change score of “B,” higher than the Marine Transport Sector, North America, and global averages.
  • Sourcing Responsibly: In 2023, supplier diversity efforts allowed more than $635 million to be spent with small businesses and businesses with minority, veteran, or economically disadvantaged qualifications.

Sailing Safely:

  • Strengthening Health and Safety Oversight: The Health Safety Environment & Security Committee oversees the implementation of established standards for safe ship operations, pollution prevention, and security.
  • Maintaining Robust Public Health Protocols: Norwegian Cruise Line Holdings operates a comprehensive public health programme with a 24/7/365 compliance culture, including external and internal public health professionals who regularly visit each ship.
  • Providing Excellent Medical Care: Each ship is equipped with a state-of-the-art medical center staffed by highly qualified doctors and nurses, providing high-quality care for guests and crew.

Strengthening Our Communities:

  • Committing to Charitable Giving: In 2023, the Company gave nearly $1.6 million in cash, cruise, and other in-kind donations to various causes. This includes significant contributions to disaster relief efforts, such as for the wildfires in Maui, and support for local communities.
  • Recognising Educators through the Giving Joy Programme: Norwegian Cruise Line’s Giving Joy Programme honored 20 educators with a free weeklong cruise for their dedication to education and expanded the programme to provide discounts and onboard credits for teachers.
  • Supporting Military Families: The Norwegian Military Appreciation Programme extends exclusive cruise fare discounts to military members, veterans, and their spouses, with over 220,000 registered since the programme’s launch in 2022.
  • Supporting Renewable Energy Projects: We successfully purchased 3 million carbon offsets, contributing to 16 projects globally. The offsets not only support our decarbonisation journey but invest in cleaner energy sources and local job creation in these communities.

Empowering People:

  • Promoting Diversity, Equity, and Inclusion: The Company launched a Corporate Leadership Diversity Initiative to reinforce inclusive hiring practices. In 2023, of the new hires and promotions in shoreside positions, 51% and 62%, respectively, were women. Additionally, the Company supports five Team Member Resource Groups (TMRGs) to connect and support employees.
  • Enhancing Employee Benefits: Benefits include fully paid maternity, paternity, and adoption leave, and family planning assistance for full-time U.S. shoreside team members. In 2023, the Company’s team member cruise benefit programme was revamped to include new deeply discounted rates at Norwegian Cruise Line and interline rates at Regent Seven Seas Cruises.

Operating with Integrity and Accountability:

  • Maintaining Diverse Board Composition: 50% of the Board of Directors’ seats are held by women and/or underrepresented minorities.
  • Upholding Ethical Conduct: Norwegian Cruise Line Holdings emphasises conducting business legally and ethically, requiring all team members, executives, and directors to adhere to the Code of Ethical Business Conduct at all times.

[1] GHG intensity is measured by MTCO2e on a per Capacity Day basis. The short- and near-term targets cover the Company’s emissions from its fleet of ships, islands and facilities (Scopes 1 & 2) as well as upstream fuel- and energy-related activities, including well-to-tank emissions (portion of Scope 3). Capacity Days is defined as berths available for sale multiplied by the number of cruise days for the period for ships in service.

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