A Welcome Message From Our President and CEO

The more people cruise the world the more the world becomes a better place. The more people discover what they share in common, the more they learn to appreciate, respect and even celebrate their differences, rather than fear them.

As we travel the world, we want our ships and crew to always be welcomed, bringing hope, prosperity and goodwill wherever they sail. We at Carnival Corporation & plc recognize that to be a responsible global organization, we need to incorporate sustainability in all aspects of our operation. In 2015, we announced our 2020 sustainability goals focused on our environmental, safety, labor & social performance.

I’m pleased to share with you that through the commitment of our dedicated and diverse workforce, we reached our carbon reduction goal ahead of schedule and are on track with all our other goals. We are currently defining our sustainability strategy beyond 2020 and are using the United Nations’ 2030 sustainable development goals as framework.

We aim to be the model for sustainable tourism partnerships throughout the world. As a highly visible, global company we are held to a high standard by the public, however, we hold ourselves to an even higher standard.

We work with our partners in manufacturing and shipbuilding to constantly improve our technology and systems to lessen our impact on the environment.

We work with our supply-chain partners to source responsibly and have created our Business Partner Code of Conduct and Ethics which covers human rights, anti-corruption, safe working conditions, and environmental protection. We work with our tour operator partners to ensure high safety standards for our guests and crew, and to conserve the environment.

We promote an appreciation of marine conservation and biodiversity by connecting our guests and crew to the marine environment while at sea, but also on local beaches or while diving or snorkeling underwater in amazing locations around the world and through our series of media programs for our future guests onshore.

We partner with organizations that are doing a phenomenal job in conserving the marine environment. We have been partnering with the Nature Conservancy since 2014, sponsoring their Mapping Ocean Wealth initiative, which was awarded the World Travel and Tourism Council’s 2017 Innovation Award in the Tourism for Tomorrow program.

The most recent CLIA (Cruise Line Industry Association) reports for 2016 show that cruise industry expenditures generated more than $126 billion in total output worldwide, employing more than one million people in some aspect of the global cruise industry, either with a cruise line, as a travel agent, or in the industries directly affiliated, such as shipbuilding or suppliers that generated $41 billion in wages.

Cruising helps create small and large businesses around the world, and brings jobs and hope in many isolated places where opportunities may be scarce. Cruise tourism contributes to the economic vitality of ports, neighboring communities and their citizens.

We also provide direct employment onboard our ships to the crew members that may have limited opportunities due to socio-political situations in their home countries. Crew members enjoy safe and stable employment onboard our ships which enables them to support themselves as well as their families back home, and gain experience and skills.

The following are some of the key sustainability events, trends and actions within our cruising, commitment and community efforts in 2017:

CRUISING

  • Carnival Cruise Line and Holland America Line both received approval to sail to Cuba directly from the U.S. and to combine Cuban stops with other Caribbean ports on the same cruise resulting in more variety in itineraries and lengths of cruises.
  • In 2017 our 103 ships visited more than 700 different ports around the world on all seven continents.
  • More than 12 million guests sailed on a Carnival Corporation brand ship in 2017 with a daily average of close to 250,000 guests on our ships all over the world.
  • Ocean Medallion was introduced in January at CES, the world’s largest consumer show in Las Vegas. Ocean Medallion delivers a more personalized and immersive guest experience for the cruise industry.
  • Two new ships debuted in 2017, AIDAperla for AIDA Cruises and Majestic Princess for Princess Cruises. AIDAperla is our second ship that can be operated while in port with liquefied natural gas, the world’s cleanest fossil fuel for the cruise industry. Majestic Princess is our first ship designed specifically for Chinese guests. It combines new features tailored for the Chinese market with many of the classic Princess Cruises elements.
  • Carnival Corporation and its brands were recognized with a number of sustainability and diversity awards including: Lloyd’s List Americas 2017 Cleaner Safer Seas Solutions award; Port of Seattle’s Green Gateway Award and Program Innovator Award; and Corporate Responsibility Magazine’s Top 100 Best Corporate Citizens. Carnival Corporation was named as a top 50 best company for diversity by Black Enterprise Magazine and earned a perfect score on the Human Rights Campaign (HRC) Corporate Equality Index, and was included on the FTSE4Good Index that measures the performance of companies demonstrating strong environmental, social and governance practices.
  • Our original content television programs generated more than 100 hours of cumulative airtime and reached over 200 million viewers on major TV netowrks. Each of these unique programs seeks to inspire viewers to travel the world while educating them about the cruise experience. They also showcase ways we are working to protect the world’s oceans and seas, and educate and inform viewers about how they too can reduce their footprint as they travel the globe.
  • Our new digital streaming network, OceanViewTM features our television programs and other original content. It can be found at Ocean.com/ocean/oceanview and on major digital platforms including Roku, AppleTV and Amazon Fire TV, via the OceanViewTM mobile app as well as onboard our ships.

COMMITMENT

  • We are working to reduce and improve the quality of our air emissions by pursuing new technologies and innovations through our partnerships with shipyards, manufacturers, and fuel companies. These new technologies will benefit the entire maritime industry. For example, we are pioneering the use of liquefied natural gas (LNG) for the cruise industry. LNG is the world’s cleanest fossil fuel. With the delivery of AIDAperla in 2017, we now have two ships that can be operated with LNG while in port. The second step in our LNG strategy is a new generation of ships that will receive 100% of their power entirely from LNG – both in port and at sea. Our first fully LNG-powered ship, AIDAnova, is expected to join the fleet in late 2018. We currently have nine of these next-generation cruise ships on order. We are also continuing to install and retrofit our existing ships with exhaust gas cleaning systems that reduce sulfur and particulate matter from our engine exhaust resulting in emissions cleaner than marine gas oil.
  • In 2017, we established a long-term partnership with Wärtsilä, one of our main engine manufacturers. Core to this partnership is improving our engine performance and efficiency. We expect this work to deliver significant additional fuel savings.
  • At Carnival Corporation, we aspire to make every place we go even better than it was before we went there. As a responsible corporate citizen, we recognize that our reputation and success depend on being transparent and responsible. In December 2016, Princess Cruises, one of our brands, entered into a plea agreement with the U.S. Department of Justice as a result of irresponsible actions by some employees who violated company policies and environmental law. Since April 2017 and for the following five years, we are following an Environmental Compliance Plan that ensures we continually adopt best practice measures that help prevent, control and mitigate the risk of environmental pollution. As a result of these events, we are stronger and better than ever. We have heightened our sense of responsibility and are moving beyond compliance. We have made a commitment to foster a culture that ensures we always do the right thing every day, and to empower our employees to speak up and to help us do the right thing every time all the time.

COMMUNITY

  • In response to the severe 2017 hurricane season that affected the U.S. and parts of the Caribbean, Carnival Foundation (the philanthropic arm of Carnival Corporation & plc), the Micky and Madeleine Arison Family Foundation, and all the Carnival brands have pledged together up to $12 million dollars to support the relief and rebuilding efforts. In addition, our ships delivered critical supplies and provided temporary shelter and transportation for the affected areas.
  • Our Fathom brand experience has expanded to all our brands by offering customizable group experiences, called Travel Deep Groups, to deeply connect and inspire like-minded guests. Fathom also developed immersive “get local” shore excursions across the Caribbean in partnership with our destination communities to enable our guests to make a real sustainable impact on the people and communities they visit.

Our vision at Carnival Corporation is to deliver unmatched joyful vacation experiences and breakthrough shareholder returns by exceeding guest expectations and leveraging our scale.

That simple sentence sums up everything we do. But in order to bring that vision to life, we need to ensure our freedom to operate by maintaining a safe and environmentally responsible reputation and in cooperation with the communities we touch. Our sustainability efforts, from Ship to Shore, are an essential part of that vision.

I’m proud of the positive influence we can have in the world and for the role we are playing in bringing that world closer together today and in the future.

I invite you to read our 2017 sustainability report and share your thoughts with us at sustainability@carnival.com

Arnold W Donald Signature

Arnold W. DonaldPresident & CEO, Carnival Corporation & plc