NCLH publishes sustainability report

2024-06-15T19:29:11+00:00 June 15th, 2024|Environment|

Norwegian Cruise Line Holdings (NCLH), which operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands, has published its 2023 ‘Sail & Sustain’ report.

This details the company’s progress in its global sustainability programme, emphasizing its dedication to driving positive environmental and societal impact.

This 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,” explained Harry Sommer, NCLH’s President and CEO (pictured).

“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,” he said.

The report highlights key advancements and commitments across the five pillars  – Reducing Environmental Impact, Sailing Safely, Strengthening Our Communities, Empowering People, and Operating with Integrity and Accountability.

Key highlights under each pillar

Reducing Environmental Impact:

  • Active Steps Toward Climate Action: In 2023, NCLH 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 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 around 70% by 2025.
  • Exploring Alternative Fuels: In 2023, NCLH achieved its goal to test 20% of the fleet with a biodiesel blend by expanding tests to four ships throughout the year. The new target is for 40% of the fleet to test biodiesel by 2024.
  • Boosting on Board Water Production: In 2023, the company consumed about 7.6 mill cu m of fresh water on board, with around 89% produced on board through evaporators and reverse osmosis plants, reducing the need to bunker fresh water.

Here, the target is to reduce bunkering by 4% by 2025, compared with 2019.

  • Improving Waste Management: The company is committed to reducing on board waste, successfully recycling, incinerating, or donating about 48% of total ship waste in 2023 through innovative technologies, staff training, and stringent recycling programs.
  • 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 US 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 mill to be spent with small businesses and businesses with minority, veteran, or economically disadvantaged qualifications.

Sailing Safely:

  • Strengthening Health and Safety Oversight: NCLH’s Health Safety Environment & Security Committee oversees the implementation of established standards for safe ship operations, pollution prevention, and security.
  • Maintaining Robust Public Health Protocols: The company operates a comprehensive public health programme with a 24/7 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 centre staffed by highly qualified doctors and nurses, providing high-quality care for guests and crew.

Strengthening Communities:

  • Committing to Charitable Giving: In 2023, the company gave nearly $1.6 mill 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: NCL’s ‘Giving Joy’ programme honoured 20 educators with a free weeklong cruise for their dedication to education and expanded the programme to provide discounts and on-board 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: NCLH purchased 3 mill carbon offsets, contributing to 16 projects globally. The offsets not only support the de-carbonisation 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 US shoreside team members. In 2023, the company’s team member cruise benefit programme was revamped to include new deeply discounted rates at NCL 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 under represented minorities.
  • Upholding Ethical Conduct: NCLH emphasised conducting business legally and ethically, requiring all team members, executives, and directors to adhere to the Code of Ethical Business Conduct at all times.