Sustainability

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Sail & Sustain: Our Global Sustainability Program

Driving a Positive Impact on Society and the Environment

At Norwegian Cruise Line Holdings, we are committed to driving a positive impact on society and the environment through our global sustainability program, Sail & Sustain. We visit approximately 700 destinations globally, allowing our guests to travel and explore the world, and our business is inextricably linked to the health of our communities and planet.

2022 ESG REPORT

Climate Action Strategy

Key Highlights for 2022

Ambitious climate action strategy and targets to reduce greenhouse gas (“GHG”) emissions:

Our revamped climate action strategy is focused on efficiency, innovation and collaboration. Our short- and near-term emissions reduction targets support our pursuit of net zero by 2050. We are targeting a reduction in GHG intensity of 10% by 2026 and 25% by 2030, compared to a 2019 baseline with intensity measured on a per Capacity Day basis.*

Methanol-Ready newbuilds on order:

Modified the final two Prima Class ships, expected to be delivered in 2027 and 2028, to accommodate the use of green methanol as an alternative fuel source in the future. While additional modifications will be needed in the future to fully enable the use of methanol in addition to traditional marine fuel on these ships, this reinforces our commitment to decarbonization.

Focus on water stewardship:

We continue to improve water production rates while at the same time focusing on efforts to decrease consumption. Across our fleet, 90% of the fresh water used in 2022 was produced on board.

Testing biodiesel fuels:

Successfully tested small quantities of biodiesel blend B30, which is 70% marine gas oil and 30% biodiesel, in four of its ships to-date. By the end of 2023, we anticipate more than 20% of our fleet will have tested and operated on biodiesel blends.

Investing in shore power:

We currently have 13 ships equipped with shore power capabilities which allows these ships to connect to onshore electrical power grids to supply much of the power needed while docked when available at-port. We are targeting for ~50% of our fleet to be equipped with shore power technology by year-end 2024 and ~70% by year-end 2025.

*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).

Reducing Single-Use Plastics:

We have a strong focus on reducing single-use plastics through a multitude of initiatives. The various initiatives in place have resulted in the elimination of more than 20 million single-use plastic water bottles and 57 million plastic straws to-date.

Robust public health program to protect guests, crew and communities we visit:

We operate a comprehensive 24/7/365 public health and safety program, working closely with health authorities around the world to implement and continuously improve policies and procedures that meet and, in many cases, exceed regulations. Crew members are also highly trained in our Outbreak Prevention and Response Plan, designed to mitigate, and help prevent the spread of communicable diseases.

Continuous public health training and education:

In partnership with representatives from various government agencies and suppliers, we continue to host public health training through monthly online collaborations as well as annual in-person summits.

Prioritized safety and security efforts:

Utmost importance placed on safety and security at sea with third-party audits conducted regularly to verify compliance. Each ship also has a resident Safety Officer, with experience ranging between 10 and 15 years in various roles at sea, and ship crews participate in regular safety training, exercises and drills on board and shoreside.

Fostering inclusive workforce where diverse backgrounds are represented and empowered:

Across our global shoreside workforce, 61% of team members are female, including 47% of managers and above. In addition, across the U.S. shoreside workforce, 67% of team members were under-represented minorities, including 54% of managers and above. In 2023, we also appointed three new Presidents to lead our brands, all three of whom were internal and ethnically or gender diverse candidates, including the appointment of our first female brand President, Andrea DeMarco, to lead Regent Seven Seas Cruises.

Provided training and development opportunities across workforce:

Our team members logged more than 800,000 hours of training and development across various roles and responsibilities, cementing the corporate philosophy to empower top talent and foster robust career development. Additionally, we supported our team members through our student loan repayment and tuition reimbursement programs, contributing more than $500,000 in 2022.

Enhanced employee benefits demonstrate commitment to team members:

We expanded our suite of employee benefits by adding new Family Care Benefits which provides fully paid maternity, paternity and adoption leave as well as family planning assistance for full-time U.S shoreside team members.

Sourcing from small and diverse businesses:

~47% of our total U.S. supply chain spending, or $780 million, was with small businesses and businesses with minority, veteran or economically disadvantaged qualifications.

Ongoing corporate efforts to philanthropic contributions:

We contributed more than $2 million in monetary and in-kind donations to nonprofit organizations around the world. This included over $300,000 donated to aid in disaster and crisis relief, including Hurricane Ian recovery efforts in Southwest Florida.

Honoring the connection between travel and education:

Each year, Norwegian Cruise Line’s Giving Joy program recognizes top educators for their unwavering commitment to inspiring students every day. In 2022, the Giving Joy program awarded 100 teachers across North America a free week-long cruise for two, valued at over $750,000 collectively, along with thousands of dollars in contributions from NCL and its partners to the schools of the top three grand prize winners.

Offsetting emissions and supporting communities through carbon offsets:

We have purchased 1.6 million carbon offsets to date contributing to 14 projects globally including in South Korea, Brazil and Turkey. The offsets purchased not only support our decarbonization journey but also invest in cleaner energy sources and local job creation in these communities.

Protecting and restoring biodiversity:

Over the past few years, we have donated nearly $500,000 to support the researchers from Dr. David Gilliam’s Coral Reef Restoration, Assessment and Monitoring Lab at NSU’s Oceanographic Center that are studying and improving the health of the coral reefs at one of our private island destinations, Great Stirrup Cay in the Bahamas. Our other private island destination, Harvest Caye in Belize, is home to a wildlife sanctuary and is also one of the few nesting sites for critically endangered hawksbill turtles.

Tied ESG metric to compensation:

The Board of Directors’ Compensation Committee approved the inclusion of an ESG metric for the first time as part of the 2022 short-term incentive (“STI”) and once again approved the inclusion of an ESG metric in 2023. This metric is tried to the progress made on our GHG reduction goals and builds greater accountability across our company to accelerate the progress on ESG goals.

Fostering a culture of ethical conduct:

We continuously emphasize the importance of ethical business practices and uphold all team members to a Code of Ethical Business Conduct which team members are required to review and certify on an annual basis.

Committed to maintaining a strong board with diverse experiences and backgrounds:

We welcomed a new board member in 2022, Zillah Byng-Thorne. Zillah brings her extensive technology sector, digital media and e-commerce experience to the board. Currently, the board is approximately 50% diverse, including 37.5% female and 12.5% under-represented minorities, with an average tenure of 6.6 years.

Environmental

Reducing our Impact

One of our core company values is environmental stewardship. The future of our business is closely intertwined with the health of our oceans and the destinations we visit, and environmentally friendly practices allow our business to thrive. That’s why we’re pursuing net zero by 2050 across our operations and value chain.

Learn About Our Environmental Initiatives

Social

Empowering and Protecting People & Uplifting Communities

We support our team members, strengthen communities and protect our stakeholders as we sail safely around the globe. Our goal is to leave each place a little better than we found it. Find out how we empower over 40,000 team members, approximately 700 destinations.

Learn About Our Social Impact

Governance

Operating with Integrity and Accountability

We have a strong corporate governance system in place to provide high standards of transparency and accountability and strive to be a leader in ethics and responsible business practices.

Learn About Our Governance

Reporting and Downloads

We invite you to learn more about our accomplishments and are pleased to offer these materials for you to access at your leisure.

Access Our Reporting and Downloads