Norwegian Cruise Line Commits to Net-Zero Emissions by 2050

Norwegian Cruise Line Holdings Ltd., the third largest cruise line by passengers, announced net-zero commitments by 2050 across its operations and value chain. It operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. 

The cruise line has developed short-and near-term greenhouse gas (GHG) reduction targets to achieve its net-zero goals. The company has also published a Task Force on Climate-related Financial Disclosures (TCFD) report to provide stakeholders with critical transparency.

Norwegian Cruise Line Holdings Ltd, president and chief executive officer Frank Del Rio, said: "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."

“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.”

Norwegian's present climate action strategy centres around three areas: 

• lowering carbon intensity
• investing in technology and researching alternative fuels
• instituting a voluntary carbon offset program

The company will invest in opportunities to reduce emissions and identify the best solutions to accelerate decarbonisation efforts. Last year, it made commitments to purchase three million metric tonnes of carbon dioxide to identify decarbonisation gaps in the short term. The development of alternative fuels will help the company achieve its net-zero ambitions. 

As a result, the organisation is devoted to collaborating, studying, and leading conversations to develop a suitable alternative fuel source that can also be scaled up. In order to make sure the methanol engine conversion goes smoothly, the company is working with other people, like engine manufacturers and classification societies.

It also released its first TCFD report recently. The corporation enlisted teams from across the organisation to perform a thorough climate risk screening and identify priority climate-related issues. Its top physical and transition risks identified through the screening were subjected to a scenario study to determine the impact of sea-level rise, carbon cost, and other potential climate scenarios.

Jessica John, Norwegian Cruise Line Holdings Ltd vice president of ESG, investor relations and corporate communications, said: "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."

“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.”