• Our Costa brand delivered two new ships, Costa Venezia and Costa Smeralda. Costa Smeralda joins our AIDA brand’s AIDAnova as the only two cruise ships in the world powered 100% by environmentally friendly liquefied natural gas (LNG). Also in 2019, our Princess brand introduced Sky Princess and Carnival Cruise Line introduced Carnival Panorama.
• We continued our long history of third-party recognitions, earning nearly 600 awards and honors in 2019 across our nine global cruise line brands. The recognitions include: 152 Cruise Critic awards; 23 USA Today 10 Best Readers’ Choice Awards; 23 CruiseLine.com awards; and 10 awards from Conde Nast Traveler - being named as best in the industry for cruise ships, value, service, shore excursions, itineraries, family friendliness, private islands, onboard entertainment and more. We were also recognized in Newsweek’s first ranking of America’s Most Responsible Companies, and as one of Corporate Responsibility Magazine’s 100 Best Corporate Citizens. Forbes media recognized us as one of America’s Best Large Employers for the second consecutive year, and we earned a perfect score of 100 for the third consecutive year from the Human Rights Campaign.
• We welcomed to our company and to our executive leadership team, a Chief Ethics and Compliance Officer, a newly formed position focused on further developing our ethics and compliance program across the entire corporation. The Boards of Directors also established a new Compliance Committee to oversee the ethics and compliance program.

Our entire management team, including our Boards of Directors, is committed to addressing climate change. Our path to decarbonization involves multimillion-dollar investments and a multi-faceted strategy, and as part of our commitment, in 2019 we:

• Committed to a new carbon goal of 40% reduction in the intensity of CO2e (carbon dioxide equivalent) emissions from our operations by 2030 relative to our 2008 baseline, as measured in grams of CO2e per ALB-km. In 2019, we achieved a 24.8% reduction.

• Continued to pioneer the use of LNG in the cruise industry by introducing Carnival Corporation & plc’s second LNG-powered ship, Costa Smeralda.

• Signed an agreement with the world’s leading marine battery supplier to begin production and installation of a first-of-its-kind lithium-ion battery storage system onboard a cruise ship.

• Announced a joint venture project to develop a decentralized energy network and a hybrid energy system using a new generation of fuel cells in oceangoing passenger vessels. The fuel cells will be powered by hydrogen derived from methanol.

• Became the first cruise company to join the Getting to Zero Coalition. This is a global alliance of organizations across the maritime, energy, infrastructure, and finance sectors committed to accelerating the decarbonization of the international shipping industry.

As part of Operation Oceans Alive, our environmental stewardship program, we made new environmental commitments that support our sustainability strategy:

• Reducing all non-essential single-use items, including plastics, on board our ships by the end of 2021. In our first six months we reduced single-use plastics by approximately 80 million items and other single-use materials by approximately 95 million items. Single-use items such as straws, cups, lids, stir sticks, cocktail picks, toothpicks, butter foil packets, and plastic shopping bags have been eliminated or replaced with sustainable alternatives.

• Committing to a food waste reduction goal across our entire fleet of 10% by the end of 2021.

• Continuing to implement food waste digester technology in our fleet over the next few years, further reducing the volume of food waste discharged.

• Partnered with ocean explorer and environmental advocate Jean-Michel Cousteau and his Ocean Futures Society, a nonprofit marine conservation and education organization that serves as a “Voice for the Ocean” on the importance of effective environmental and sustainability policy. Cousteau is providing valuable external expertise on environmental initiatives as we continue our commitment to sustainability and our oceans.

• As part of our global disaster relief commitment, we strive to make a difference in affected areas by working with government officials, local and international relief organizations, and coordinating corporate and employee donations for emergencies such as hurricanes, earthquakes, and other natural disasters. In 2019, Hurricane Dorian became the most intense hurricane on record to strike The Bahamas. We pledged up to $2 million for Hurricane Dorian relief efforts. We also partnered with Tropical Shipping, World Central Kitchen and others to support disaster relief efforts.

• Signed an agreement with The Bahamas to build two new major port developments. Under the agreement, we will develop a new cruise port destination on Grand Bahama and construct a new addition, including a pier, on the Bahamian island of Little San Salvador, home to Holland America Line’s award-winning Half Moon Cay. Due to the COVID-19 outbreak in the first quarter of 2020 and the pandemic impact on our industry, the permitting and startup of construction for both projects are expected to be delayed.

Thank you for the opportunity to share some of our sustainability milestones. We look forward to resuming cruise operations when it is safe to do so and to set sail again soon.