Royal Caribbean Group Releases 2020 "Seastainability" Report

Rhea-AI Summary

Royal Caribbean Group (RCL) released its 13th annual sustainability report, showcasing progress on its ambitious sustainability goals for 2020. The company met or surpassed nearly all targets, notably achieving a 35% carbon reduction and committing to a further 25% reduction by 2025. Their Kansas wind farm project is expected to offset 12% of global emissions. While sustainable seafood sourcing goals were delayed due to the pandemic, Royal Caribbean is committed to sourcing 90% wild-caught seafood sustainably. The report emphasizes the company’s focus on emissions, waste management, and circular economy practices.

Positive

• Achieved 35% carbon reduction target; committed to additional 25% reduction by 2025.
• Kansas wind farm project will offset approximately 242,000 tons of CO2 annually, covering 12% of global emissions.
• Sustainable sourcing commitment of 90% for wild-caught seafood and 75% for farmed seafood.

Negative

• Sustainable seafood sourcing target delayed due to global service suspension from the pandemic.

MIAMI, Sept. 22, 2021 /PRNewswire/ -- Today Royal Caribbean Group (NYSE: RCL) published its 13th annual sustainability report, providing a comprehensive update on the company's sustainability efforts. In particular, the 2020 report documents that the company has met or exceeded nearly all of its 2020 sustainability targets.

"We believe that what gets measured gets better. Sustainability is a core area for our business, and this report reflects our successes and challenges over the past year," said Richard Fain, Chairman and CEO, Royal Caribbean Group. "While I'm proud of the progress we have achieved, the importance of this area has grown exponentially. Consistent with our mantra of continuous improvement, we have significantly expanded our aspirations in this critical area and are setting even more aggressive goals for the coming years."

The report is organized into four main sections conveying Royal Caribbean Group's strategic approach to sustainability, from emissions reductions to supporting employees and crew in the wake of the COVID-19 pandemic. This year's report also includes the latest Materiality Assessment as well as additional disclosures in line with the Sustainability Accounting Standards Board (SASB) reporting metrics.

"We are living in an era of profound and interconnected changes, which call for bold and positive action. Our ESG work and goals are focused on ensuring we play a leadership role in contributing to a healthy and thriving workplace, society and environment," said Silvia M. Garrigo, Chief Environmental, Social and Governance (ESG) Officer, Royal Caribbean Group.

In 2016, in partnership with World Wildlife Fund (WWF), the company set specific, ambitious and measurable 2020 sustainability targets to reduce its environmental footprint, increase sustainable tourism, respect for coastal communities and cultural heritage, and support WWF's global ocean conservation work. As of this year, Royal Caribbean Group has met or exceeded all of its 2020 goals, with the exception of the sustainable seafood sourcing target, which was impacted by global suspension of service from the pandemic.

The company is working to develop a new set of targets around the reduction of carbon emissions, the sustainable growth and development of our business, sustainable commodity sourcing and tourism, the elimination of single-use plastics, and waste management.

Highlights from the Report
Throughout the pandemic, Royal Caribbean Group continued to address several key issues important to stakeholders, including:

• Emissions reduction: Royal Caribbean Group achieved its carbon reduction target of 35% and has committed to further reduce emissions 25% by 2025.
• Royal Caribbean Group's wind farm project in Kansas, developed in partnership with Southern Power, began operations and generated approximately 242,000 tons of CO2 offsets. It is expected that the wind farm will offset up to 12% of the company's global emissions each year.
• Celebrity Apex joined the fleet with shore power connectivity and with an energy efficiency standard (EEDI) 39% more efficient than the current International Maritime Organization (IMO) requirement.
• Our next class of ships, Icon-Class, expected to launch in 2023, will use cleaner-burning liquefied natural gas and fuel cell technology, which reduces ship emissions.
• Sustainable sourcing: The company has a commitment to source 90% of wild-caught seafood and 75% of farmed seafood, served on Royal Caribbean Group ships from certified sustainable sources, a first for the cruise industry. 
• While the global suspension of service delayed this goal, as cruise operations resume, Royal Caribbean Group remains committed to tracing back to its origin the sustainable seafood served across the company's fleet.
• Additionally, the company is constantly working to identify sustainable products, from cage-free eggs to humanely raised pork.
• Circular economy: The company is working to achieve zero waste across the Royal Caribbean Group fleet.
• Today, 100% of the company's fleet is equipped to be landfill-free. Only 0.50 pounds of waste are sent to landfill per passenger each day — 80% less than the U.S. average on shore.
• Whenever possible, the waste on Royal Caribbean Group ships is reused, recycled or converted to energy.
• The company has removed 60% of single-use plastics from its supply chain. 
• Water and wastewater: Royal Caribbean Group ships work to ensure fresh water on their ships is used sparingly and efficiently.
• 90% of fresh water is produced on board its ships in order to not deplete local resources.
• On average, only 66 gallons of water per person per day are used, compared with the U.S. average of 100 gallons per person.
• Each ship is equipped with a water treatment plant. Advanced wastewater purification systems are designed to be twice as stringent as U.S. federal standards, with a company policy of no untreated waste released into the ocean.

To view Royal Caribbean Group's 2020 sustainability report and learn more about the company's efforts, click here.

About Royal Caribbean Group
Royal Caribbean Group (NYSE: RCL) is one of the leading cruise companies in the world with a global fleet of 60 ships traveling to more than 800 destinations around the world. Royal Caribbean Group is the owner and operator of three award-winning cruise brands: Royal Caribbean International, Celebrity Cruises, and Silversea Cruises, and it is also a 50% owner of a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. Together, the brands have an additional 13 ships on order as of June 30, 2021. Learn more at www.royalcaribbeangroup.com or www.rclinvestor.com.

Forward-Looking Statements
Certain statements in this press release constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, the company's expectations, estimates, forecasts and projections regarding environmental, social and governance (ESG) initiatives and the company's ability to achieve its ESG goals. Forward-looking statements reflect management's current expectations and are subject to risks, uncertainties and other factors that could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Factors that could affect our results include, among others, those discussed under the caption "Risk Factors" in our most recent annual report on Form 10-K, as well as our other filings with the SEC, copies of which may be obtained by visiting our Investor Relations website at www.rclinvestor.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Royal Caribbean Group

FAQ

What does the 2020 sustainability report by Royal Caribbean Group entail?

The report outlines Royal Caribbean Group's achievements in sustainability, including meeting most of its 2020 targets and setting new goals.

How much has Royal Caribbean Group reduced its carbon emissions?

Royal Caribbean Group achieved a 35% reduction in carbon emissions and aims for an additional 25% by 2025.

What is the sustainable seafood sourcing goal of Royal Caribbean Group?

Royal Caribbean aims to source 90% of its wild-caught and 75% of its farmed seafood from certified sustainable sources.

What impact did the pandemic have on Royal Caribbean's sustainability targets?

The pandemic delayed the company's sustainable seafood sourcing goals due to a global suspension of service.

What are the new sustainability targets set by Royal Caribbean Group?

Royal Caribbean plans to focus on carbon emissions reduction, sustainable sourcing, eliminating single-use plastics, and waste management.