SINGAPORE, 25 April 2022: Norwegian Cruise Line Holdings Ltd (NYSE: NCLH), which operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, announced on Earth Day 22 April its commitment to pursue net-zero emissions by 2050 across its operations and value chain.
The company has also committed to developing short- and near-term greenhouse gas (“GHG”) reduction targets to support its path to net zero. In addition, the company has published its first Task Force on Climate-related Financial Disclosures (“TCFD”) Report, which provides critical 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 Norwegian Cruise Line Holdings Ltd, president and chief executive officer Frank Del Rio.
“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.”
The company’s 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 program. 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 decarbonisation efforts. Last year, the company committed to purchasing three million metric tons of carbon dioxide equivalent (MTCO₂e) offset as a measurable action to address decarbonisation gaps in the short term while the company explores long-term solutions. A key driver to achieving the company’s net-zero ambition is the development of alternative fuels along with the associated critical infrastructure at destinations globally to support the usage of these fuels.
As such, the company 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 actively engaging with partners, including engine manufacturers and classification societies, to plan for a safe and effective methanol engine retrofit.
The company also released today its inaugural TCFD report. As part of this process, the company 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, the company is further aligning its risk management and strategic planning processes with the challenges of climate change. View the full report here: 2021 TCFD Report.
“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 Norwegian Cruise Line Holdings Ltd vice president of ESG, investor relations and corporate communications, Jessica John.
“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.”
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 programme centred around its commitment to driving a positive impact on society and the environment while delivering on its vision to be the vacation of choice for everyone worldwide. This programme 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.
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