Operator of Norwegian Cruise Line, Oceania Cruise Line and Regent Seven Seas sets 2025 as target date.
Norwegian Cruise Line Holdings Ltd. which operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, yesterday announced its commitment to pursue net-zero emissions by 2050 across its operations and value chain. The Company has also committed to develop 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 Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. “While we recognize 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 centered 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 decarbonization efforts. Last year, the Company committed to purchase 3 million metric tons of carbon dioxide equivalent (MTCO₂e) offsets as a measurable action to address decarbonization 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. 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 currently actively engaging with partners including engine manufacturers and classification societies, in planning 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 organization 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 Jessica John, vice president of ESG, Investor Relations and Corporate Communications of Norwegian Cruise Line Holdings Ltd.
“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.”