Our Strategy

As I step into my new role as President and CEO of this storied Company, I am immensely proud of the collective actions of our team members worldwide, who along with our vast network of partners continue to advance our efforts to drive a positive impact on society and the environment. It is truly an honor and privilege to be given the opportunity to lead this team of nearly 40,000 passionate, dedicated and talented individuals who are committed to deliver on our business and financial goals in a responsible way, while striving to make a difference in the world. I firmly believe that our Sail & Sustain efforts are not just the right thing to do, but make us a stronger and more resilient company for years to come.

Guided by our core values, our Sail and Sustain program is centered around five key pillars: Reducing Environmental Impact, Sailing Safely, Strengthening our Communities, Empowering People and Operating with Integrity and Accountability. Our 2022 ESG report highlights several initiatives that support these key pillars as well as the meaningful progress we’ve made since our last update. The report also demonstrates our commitment to transparency, as we continue to refine and improve our data and disclosures to inform our stakeholders on where we stand today and where we strive to go.

Reducing Environmental Impact

Decarbonization is without a doubt one of the most complex challenges we face as a company, industry and a society and while none of us have all the answers today, we are committed to doing our part in this shared global effort. Since our last report, we revamped our climate action strategy and announced new short- and near-term GHG reduction targets to support our path to net zero emissions by 2050. We are now targeting a reduction in GHG intensity of 10% by 2026 and 25% by 2030, compared to a 2019 baseline¹ . Our revamped strategy is centered around three key focus areas, Efficiency, Innovation and Collaboration as we are acting now to implement solutions for efficiency today, innovate for future solutions and collaborate with our stakeholders along the way.

Underpinning this strategy is good governance and effective risk management. Our commitment to decarbonization starts at the top with our Board of Directors, who once again included an ESG metric tied to our GHG reduction efforts as part of our 2023 short-term management incentive compensation plan. This ensures shared accountability to support our climate action goals runs deep within our organization.

Strengthening our Communities

As a travel company, our success is dependent on the health and vibrancy of not only our local communities but also the over 500 destinations we visit across the globe. We strive to be a great partner to each destination we visit, working together to find sustainable, long-term solutions for the communities, while at the same time allowing our guests to experience all that these incredible destinations have to offer. In 2022, we donated over $2 million to various causes including $100,000 to Save the Children’s Ukraine Crisis Relief Fund, over $100,000 to the American Red Cross to assist in Hurricane Ian relief efforts and $100,000 to Belize to assist in Hurricane Lisa relief efforts. Last year, we donated over $750,000 in cash and cruise donations to hardworking educators through Norwegian Cruise Line’s Giving Joy program. We also launched our first-ever Military Appreciation Program at Norwegian Cruise Line to recognize active and retired U.S. military members and have already registered 80,000 members across the country.

Empowering People

Our people are the driving force of our past, current and future success. We aim to empower our team members worldwide, providing them opportunities to grow and develop and comprehensive benefits that support them to thrive both physically and mentally. A testament to our talent development and succession planning process was our recent leadership transitions which resulted in four internal candidates succeeding their predecessors in not only my new role as CEO but also at the top seat for each of our brands. I am also proud that we appointed our first female brand president, Andrea DeMarco, to lead Regent Seven Seas Cruises. We remain committed to fostering an inclusive workforce across all levels of the Company, where diverse backgrounds are represented, engaged and empowered to generate and execute innovative ideas. We will continue to invest in our team as we recognize that our people are this company’s most valuable asset.

As we look to the future, I can say with confidence that we are fully embracing our responsibility as a leader in the cruise industry and are committed to further strengthening our Sail & Sustain program. Under my leadership, we will continue to evolve and enhance our ESG strategy, which we believe goes hand-in-hand with delivering long-term value for all of our stakeholders. I look forward to working with our team members worldwide on our quest to leave a lasting positive impact, and I welcome all of our guests, travel partners, suppliers, destination partners, investors and all of our stakeholders to join us on this journey.

Thank you for your continued support,

Harry Sommer
President and Chief Executive Officer-Elect
Norwegian Cruise Line Holdings Ltd.

_{¹ Measured on a per Capacity Day basis. Targets cover the Company’s emissions from its fleet of ships, islands and facilities (Scopes 1 & 2) as well as upstream fuel- and energy-related activities, including well-to-tank emissions (portion of Scope 3).}