Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (the “Company”), a
leading global cruise company which operates Norwegian Cruise Line,
Oceania Cruises and Regent Seven Seas Cruises, today published its
2021 Environmental, Social and Governance (“ESG”) Report and
Sustainability Accounting Standards Board (“SASB”) index as part of
the Company’s global sustainability program, Sail & Sustain.
Highlights from the Company’s previously published 2021 Task Force
on Climate-related Financial Disclosures (“TCFD”) Report are also
included in the 2021 ESG Report.
“We are more focused now than ever on our
commitment to drive a positive impact on society and the
environment through our global sustainability program, Sail &
Sustain. The success of our business and our ability to deliver
long-term value to our stakeholders is undeniably linked to the
health of our planet, our people and the communities we visit
worldwide,” said Frank Del Rio, president and chief executive
officer of Norwegian Cruise Line Holdings Ltd. “Our 2021 ESG Report
highlights our progress and commitments on our top ESG priorities,
providing critical transparency to our key stakeholders. We do not
plan to stop here and we will continue to build upon our
accomplishments to-date as we collectively chart a path towards a
more sustainable future.”
The 2021 ESG Report highlights the Company’s key
advancements since its last published report and impactful
initiatives underway across the five pillars of its Sail &
Sustain program, including:
Reducing Environmental
Impact
- Committed to
pursue net zero greenhouse gas emissions by 2050 across the
Company’s operations and value chain. To support the path to net
zero, the Company also committed to develop short- and near-term
greenhouse gas reduction targets.
- Joined the
Methanol Institute in 2022, a global trade association for the
methanol industry which represents the world’s leading methanol
producers, distributors and technology providers, to collaborate,
share and adapt solutions for the future. Alongside strategic
partners such as engine manufacturers and classification societies,
the Company is assessing the feasibility of retrofitting existing
engines to operate with dual fuels – diesel and methanol – with the
goal to test the use of methanol by 2025.
- Committed to
offset three million metric tons of carbon dioxide equivalent
(MTCO2e) over a three-year period from 2021-2023 to help bridge the
gap in its decarbonization efforts as it explores long-term
solutions such as alternative fuels.
- Established
target for approximately 70% of the Company’s fleet to be equipped
with shore power capabilities by 2025, allowing these ships to
connect to onshore electrical power grids while in ports with the
required infrastructure.
- Welcomed guests
to its new state-of-the-art PortMiami terminal, the first LEED Gold
New Construction V4.0 cruise ship terminal in the world.
- Continued focus
on water stewardship by self-producing approximately 80% of water
used onboard in 2021. Targeting a 4% decrease in bunkered water by
2025, as compared to 2019.
- Updated Supplier
Code of Conduct in 2022 and introduced a Responsible Sourcing
Mission Statement and Animal Welfare Commitment all of which can be
found here.
Sailing Safely
- Enhanced existing
robust commitment to health and safety in response to COVID-19 with
its comprehensive SailSAFE™ health and safety program. The robust
SailSAFE program consists of new and enhanced protocols to create
multiple layers of protection against COVID-19.
- Established the
SailSAFE Global Health and Wellness Council, the Company’s expert
public health council, chaired by former Commissioner of the U.S.
Food and Drug Administration Dr. Scott Gottlieb.
Empowering People
- Strengthened
commitment to maintaining the Company’s culture of diversity,
equity and inclusion in the workplace with President and CEO Frank
Del Rio signing the CEO Action pledge for Diversity & Inclusion
in March 2022. As of year-end 2021 approximately 48% of the global
shoreside manager and above team was female and approximately 49%
of the U.S. shoreside manager and above team self-identified as an
under-represented minority.
- Launched new team
member resource group in 2022, EMBRACE, which focuses on diversity
in leadership for managers and above.
- As part of its
supplier diversity program, the Company estimates that
approximately 39% of U.S. supply chain spending in 2021 was with
small businesses or businesses with minority, veteran or
economically disadvantaged qualifications.
- Named by Forbes
to the 2021 list of the World’s Best Employers and by the South
Florida Business Journal to its 2022 Healthiest Employers
honorees.
- Nearly $1.5
million was invested in office protocols such as antigen testing,
office safety enhancements and onsite nurses since 2020 to protect
team members during the COVID-19 pandemic.
- Supported
employees through Company’s student loan repayment and tuition
reimbursement programs, paying over $375,000 in 2021.
Strengthening our
Communities
- Provided a Paid
Volunteer Day for all U.S. shoreside team members beginning in 2021
to support community involvement efforts.
- Provided
approximately $12 million in cash, cruise and other in-kind
donations in 2021 to various important causes.
- Launched numerous
philanthropic initiatives including Norwegian Cruise Line’s Giving
Joy campaign which recognized hardworking teachers. As part of the
2021 Giving Joy campaign, 100 teachers across the U.S. and Canada
were awarded a free week-long cruises for two, which were
collectively valued at over $750,000. In addition, the top three
winners were awarded $10,000, $15,000 or $25,000 for their schools
from the cruise line.
- Activated
Company’s Crew Relief Fund and providing ongoing communications and
logistical support and counseling to Ukrainian and other team
members impacted by the Russia-Ukraine conflict in 2022. Also
pledged an additional $100,000 to Save the Children’s Ukraine
Crisis Relief Fund.
Operating with Integrity and
Accountability
- ESG oversight at
the Board of Directors level with the Technology, Environmental,
Safety and Security (“TESS”) Committee.
- The Compensation
Committee of the Board approved the inclusion of an ESG metric,
tied to progress on setting greenhouse gas reduction targets, as
part of the Company’s 2022 short-term incentive compensation
program (“STI”). STI eligible employees extend deep into the
organization encompassing the shoreside Manager and above
leadership team.
- Created a formal
governance structure to oversee and accelerate progress on climate
action and decarbonization strategy consisting of the
Decarbonization Executive Steering Committee and a Decarbonization
Action Group.
The 2021 ESG Report and additional information
on the Company’s global sustainability program, Sail & Sustain,
can be found on the Company’s website at
http://nclhltd.com/sustainability.
About Norwegian
Cruise Line
Holdings Ltd.
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
is a leading global cruise company which operates the Norwegian
Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands.
With a combined fleet of 28 ships with approximately 60,000 berths,
these brands offer itineraries to approximately 500 destinations
worldwide. The Company has nine additional ships scheduled for
delivery through 2027, comprising approximately 24,000 berths.
About Sail
& Sustain
Sail & Sustain is Norwegian Cruise Line
Holdings’ global sustainability program centered around its
commitment to drive a positive impact on society and the
environment while delivering on its vision to be the vacation of
choice for everyone around the world. This program is structured
around five pillars developed through cross-functional
collaboration with key internal and external stakeholders. The
pillars include: Reducing Environmental Impact, Sailing Safely,
Empowering People, Strengthening our Communities and Operating with
Integrity and Accountability.
Cautionary
Statement Concerning
Forward-Looking Statements
Some of the statements, estimates or projections
contained in this release are “forward-looking statements” within
the meaning of the U.S. federal securities laws intended to qualify
for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts contained in this release,
including, without limitation, those regarding our business
strategy, financial position, results of operations, plans,
prospects, actions taken or strategies being considered with
respect to our liquidity position, valuation and appraisals of our
assets and objectives of management for future operations
(including those regarding expected fleet additions, our ability to
weather the impacts of the COVID-19 pandemic, our expectations
regarding the impact of Russia's recent invasion of Ukraine, our
expectations regarding cruise voyage occupancy, the implementation
of and effectiveness of our health and safety protocols,
operational position, demand for voyages, plans or goals for our
sustainability program, ESG and decarbonization efforts, our
expectations for future cash flows and profitability, financing
opportunities and extensions, and future cost mitigation and cash
conservation efforts and efforts to reduce operating expenses and
capital expenditures) are forward-looking statements. Many, but not
all, of these statements can be found by looking for words like
“expect,” “anticipate,” “goal,” “project,” “plan,” “believe,”
“seek,” “will,” “may,” “forecast,” “estimate,” “intend,” “future”
and similar words. Forward-looking statements do not guarantee
future performance and may involve risks, uncertainties and other
factors which could cause our actual results, performance or
achievements to differ materially from the future results,
performance or achievements expressed or implied in those
forward-looking statements. Examples of these risks, uncertainties
and other factors include, but are not limited to the impact of:
the spread of epidemics, pandemics and viral outbreaks and
specifically, the COVID-19 pandemic, including its effect on the
ability or desire of people to travel (including on cruises), which
is expected to continue to adversely impact our results,
operations, outlook, plans, goals, growth, reputation, cash flows,
liquidity, demand for voyages and share price; implementing
precautions in coordination with regulators and global public
health authorities to protect the health, safety and security of
guests, crew and the communities we visit and to comply with
regulatory restrictions related to the pandemic; legislation
prohibiting companies from verifying vaccination status; our
indebtedness and restrictions in the agreements governing our
indebtedness that require us to maintain minimum levels of
liquidity and be in compliance with maintenance covenants and
otherwise limit our flexibility in operating our business,
including the significant portion of assets that are collateral
under these agreements; our ability to work with lenders and others
or otherwise pursue options to defer, renegotiate, refinance or
restructure our existing debt profile, near-term debt amortization,
newbuild related payments and other obligations and to work with
credit card processors to satisfy current or potential future
demands for collateral on cash advanced from customers relating to
future cruises; our need for additional financing or financing to
optimize our balance sheet, which may not be available on favorable
terms, or at all, and our outstanding exchangeable notes and any
future financing which may be dilutive to existing shareholders;
the unavailability of ports of call; future increases in the price
of, or major changes or reduction in, commercial airline services;
changes involving the tax and environmental regulatory regimes in
which we operate, including new regulations aimed at reducing
greenhouse gas emissions; the accuracy of any appraisals of our
assets as a result of the impact of the COVID-19 pandemic or
otherwise; our success in controlling operating expenses and
capital expenditures; trends in, or changes to, future bookings and
our ability to take future reservations and receive deposits
related thereto; adverse events impacting the security of travel,
such as terrorist acts, armed conflict, such as Russia's recent
invasion of Ukraine, and threats thereof, acts of piracy, and other
international events; adverse incidents involving cruise ships;
adverse general economic and related factors, including as a result
of the impact of the COVID-19 pandemic, Russia's recent invasion of
Ukraine or otherwise, such as fluctuating or increasing levels of
interest rates, inflation, unemployment, underemployment and the
volatility of fuel prices, declines in the securities and real
estate markets, and perceptions of these conditions that decrease
the level of disposable income of consumers or consumer confidence;
breaches in data security or other disturbances to our information
technology and other networks or our actual or perceived failure to
comply with requirements regarding data privacy and protection;
changes in fuel prices and the type of fuel we are permitted to use
and/or other cruise operating costs; mechanical malfunctions and
repairs, delays in our shipbuilding program, maintenance and
refurbishments and the consolidation of qualified shipyard
facilities; the risks and increased costs associated with operating
internationally; our inability to recruit or retain qualified
personnel or the loss of key personnel or employee relations
issues; our inability to obtain adequate insurance coverage;
pending or threatened litigation, investigations and enforcement
actions; any further impairment of our trademarks, trade names or
goodwill; volatility and disruptions in the global credit and
financial markets, which may adversely affect our ability to borrow
and could increase our counterparty credit risks, including those
under our credit facilities, derivatives, contingent obligations,
insurance contracts and new ship progress payment guarantees; our
reliance on third parties to provide hotel management services for
certain ships and certain other services; fluctuations in foreign
currency exchange rates; our expansion into new markets and
investments in new markets and land-based destination projects;
overcapacity in key markets or globally; and other factors set
forth under “Risk Factors” in our most recently filed Annual Report
on Form 10-K, Quarterly Report on Form 10-Q and subsequent filings
with the Securities and Exchange Commission. Additionally, many of
these risks and uncertainties are currently amplified by and will
continue to be amplified by, or in the future may be amplified by,
the COVID-19 pandemic and Russia's recent invasion of Ukraine. It
is not possible to predict or identify all such risks. There may be
additional risks that we consider immaterial or which are unknown.
The above examples are not exhaustive and new risks emerge from
time to time. Such forward-looking statements are based on our
current beliefs, assumptions, expectations, estimates and
projections regarding our present and future business strategies
and the environment in which we expect to operate in the future.
These forward-looking statements speak only as of the date made. We
expressly disclaim any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement
to reflect any change in our expectations with regard thereto or
any change of events, conditions or circumstances on which any such
statement was based, except as required by law.
Investor
Relations &
Media Contact |
Jessica John(305)
468-2339InvestorRelations@nclcorp.com |
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