NCLH commits to net zero emissions by 2050

2022-04-28T12:16:56+00:00 April 28th, 2022|Environment|

Norwegian Cruise Line Holdings (NCLH) is to pursue net zero emissions by 2050 across its operations and brands.

The company has also committed to develop short- and near-term greenhouse gas (GHG) reduction targets to support its path to net zero. In addition, it has published its first Task Force on Climate-related Financial Disclosures (TCFD) report, which provides transparency to its stakeholders.

“The pursuit of net zero will be one of the most defining voyages that our company will take. The scope of our net zero ambition spans our entire value chain as we aim to bring key partners, including our vast network of global suppliers, along with us on this transformational journey,” said Frank Del Rio, NCLH President and CEO. “While we recognise that the pathway will be complex, requiring significant collaboration, innovation and technological advancement, we are committed to doing our part to contribute to the transition to a low-carbon economy.”

NCLH said that its new climate commitments broaden and strengthen its existing climate action strategy, which is centred around three key focus areas: 1) reducing carbon intensity, 2) investing in technology and exploring alternative fuels and 3) implementing a voluntary carbon offset programme.

The company will continue to monitor and invest in opportunities to reduce emissions including and beyond its fleet, working closely with its partners to identify best practices and accelerate de-carbonisation efforts.

Last year, NCLH committed to purchase 3 mill tonnes of carbon dioxide equivalent (MTCO₂e) offsets to address de-carbonisation gaps in the short-term, while the company explores long-term solutions.

A key driver to achieving net zero is the development of alternative fuels along with the associated critical infrastructure at destinations globally to support the usage of these fuels.

NCLH added that it is committed to partnering, researching and driving discussions to identify an appropriate alternative fuel source that can also be sufficiently scaled. For example, the company is currently actively engaging with partners, including engine manufacturers and classification societies, in planning for a safe and effective methanol engine retrofits.

The company has also released its inaugural TCFD report. As part of this process, it engaged teams across the organisation to conduct an extensive climate risk screening and identify priority climate-related risks.

A scenario analysis was then completed to estimate the impact of sea level rise and the cost of carbon, the company’s top physical and transition risks identified through the screening, under different hypothetical climate scenarios.

Using the results of the assessment, NCLH is to further align its risk management and strategic planning processes with the challenges of climate change.

“The release of our inaugural TCFD report demonstrates our desire to continually improve and expand upon our ESG disclosures to provide additional transparency to our stakeholders,” said Jessica John, NCLH’s ESG Vice President, Investor Relations and Corporate Communications. “Last summer we published our first comprehensive ESG report and the first Sustainability Accounting Standards Board (SASB) index in the cruise industry and our new TCFD report represents another significant step forward.

“We are focused on improving our resiliency, and the results of our climate assessment will assist us in further integrating climate-related risks into our strategy and decision-making processes across our company,” she concluded.