Our Strategy

Whether our guests are snorkeling in the crystal blue waters of the Pacific Islands or immersing themselves in the beauty of Alaska’s natural wonders and culture, we recognize that our guests’ experiences are inextricably linked to the protection of our planet, its communities and our shared resources. As the leader of our 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 through our global sustainability program, Sail & Sustain.

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. We have continued to enhance our disclosures to provide critical transparency with new goals and initiatives across these focus areas in our 2023 Sail & Sustain Report.

Voyage to Net Zero

In April 2023, we announced short- and near-term targets to provide a roadmap on our pursuit to net zero greenhouse gas (GHG) emissions by 2050. We are targeting a reduction of GHG intensity of 10% by 2026 and 25% by 2030, compared to a 2019 baseline and measured on a Capacity Day[1] basis. These targets encompass our Company’s emissions from our fleet, islands and facilities (Scopes 1 & 2), as well as upstream fuel- and energy-related activities, including well-to-tank emissions (portion of Scope 3). As such, the targets capture the full well-to-wake emissions impact of our Company’s fuel consumption.

Along with these new targets, we also launched our revamped climate action strategy, which focuses on three main actions: implementing solutions for efficiency today, innovating for future solutions and collaborating with our stakeholders along the way. We are enhancing our fleet’s efficiency with measures such as HVAC upgrades and waste heat recovery systems in addition to optimizing our itineraries. We are also investing in shore power technology, which will allow us to connect to onshore electrical power grids with the appropriate port infrastructure. 50% of our fleet is currently equipped with shore power technology, and we have a goal that 70% of our fleet will be equipped by year-end 2025. While these measures will be key for our short- and near-term targets, we are also exploring long-term solutions and technologies that will further support GHG reductions. For example, we have successfully tested the use of biofuel blends on over 20% of our fleet as a potential transition fuel, while we continue to explore the viability of green methanol. To prepare for this transition, we continue to collaborate with our partners and have reconfigured the designs for the final two Prima Class ships, expected to be delivered in 2027 and 2028, to accommodate the use of green methanol as a future fuel source.

Underpinning this strategy is good governance and effective risk management. Climate action is managed at multiple levels throughout our Company, starting from the Board of Directors. Our Compensation Committee once again highlighted the importance of our sustainability commitments by including a metric tied to our climate action strategy as part of our 2023 short-term management incentive compensation, an important step toward shared accountability for this critical effort.

Strengthening Communities

We also believe it is our responsibility to contribute to the communities around the world where we visit, live and work. In 2023, we donated nearly $1.6 million in cash, cruise and other in-kind donations to various important causes. In Miami-Dade County alone, where our corporate headquarters is located, we donate to over 30 organizations, including Habitat for Humanity of Greater Miami, National Diversity Council and Teach for America Miami-Dade. Over $200,000 of cash and in-kind donations such as food, clothing and mattresses were quickly mobilized to support the local community in Maui in connection with the impacts of the devastating wildfires.

We also continued to show our appreciation to members of our community from military members to educators. We proudly stand behind the mission of Honor and Remember to publicly honor and remember every American fallen service member and the enduring sacrifices of their families. Through our Military Appreciation Program at Norwegian Cruise Line, active and retired U.S. military members as well as their spouses are recognized and honored through an exclusive discount program. Over 220,000 qualified military members have registered since the program launched in November 2022.

Through Norwegian’s Giving Joy® program, a Giving Joy contest is annually launched during Teach Appreciation Week in May. In 2023, the contest drew support for over 3,400 teachers across the U.S. and Canada and garnered hundreds of thousands of votes. 20 educators with the most votes won a week-long cruise for two and three grand prize winners had the opportunity to experience the exclusive four-day christening voyage on Norwegian Viva, the newest ship in the Norwegian Cruise Line fleet. Since 2019, the program has awarded 250 educators with free cruises and donated over $350,000 to local schools and teachers.

We also achieved our target to purchase verified carbon credits to offset three million metric tons of carbon dioxide equivalent over a three-year period. The three million carbon offsets contributed to 16 projects globally, supporting our decarbonization journey while also investing in cleaner energy sources and creating jobs in these communities.

Empowering People

We firmly believe our culture and commitment to empowering people allows us to attract and retain top talent, while simultaneously providing robust career development opportunities that ultimately result in significant value to our stakeholders. In 2023, we reinforced our commitment to culture by redefining our culture value anchors of collaboration, innovation, transparency, and passion.

With approximately 41,000 team members representing over 110 nationalities, we embrace the backgrounds, skills, passions and perspectives that our team members bring to our Company each day. In 2023, following listening sessions with team members, NCLH PRIDE was established as a new resource group for our LGBTQ+ community and its allies, as well as a new parent mentor program to offer support to working parents returning to the workforce following maternity and paternity leave.

In 2023, we also enhanced our benefits package with new physical, financial and emotional well-being benefits. We are especially proud of the NCLH Wellness at Sea initiative, which was introduced to shipboard team members to enhance a wellness-conscious work environment. Guidelines, resources and activities were developed to support nutrition, fitness, sleep, and stress management to name a few.

Along with a history of strong return rates across our shoreside and shipboard teams, our commitment to culture has been recognized by organizations like Forbes with inclusion on its 2023 list of World’s Best Employers.

I firmly believe that our efforts to Sail & Sustain are not just the right thing to do, but will make us stronger and more resilient for years to come. We’re so proud to share this incredible journey with you, our valued stakeholders.

Thank you for your continued support,

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

_{¹ Capacity Days is defined as Berths available for sale multiplied by the number of cruise days for the period of ships in service.}