Norwegian Cruise Line Holdings has committed to striving for net-zero emissions to all its operations and value chain by the year 2050. NCLH operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands, which have a combined fleet of 28 ships.
“The pursuit of net zero will be one of the most defining voyages that our company will take,” said Frank Del Rio, president and CEO of NCLH. “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. 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 will expand its existing climate strategy, focusing on three main areas: reducing carbon intensity, investing in technology and research into alternative fuels, and implementing a voluntary program to reduce carbon emissions. In 2021, NCLH has committed to buying three million tons of equivalent carbon offsets while exploring long-term solutions. The feasibility of overhauling methanol engines is also being discussed with partners, including engine manufacturers and classification societies.
NCLH also published its first report of the Working Group on Climate Financial Disclosure (TCFD), which provides relevant information to its stakeholders. The company has hired teams across the organization to conduct climate risk screening and identify climate risk priorities. Scenario analysis was then completed to assess the impact of rising sea levels and carbon prices, the company’s greatest physical and transition risks, under different hypothetical climate scenarios. Using the assessment results, the company further aligns its risk management and strategic planning processes with the climate change challenges it has identified.
“The release of our inaugural TCFD report demonstrates our desire to continually improve and expand upon our environmental, social and governance disclosures to provide additional transparency to our stakeholders,” said Jessica John, vice president of environmental, social and governance, investor relations and corporate communications at NCLH. “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.”
