MSC CRUISES PUBLISHES ITS 2021 SUSTAINABILITY REPORT LAYING THE FOUNDATIONS FOR ACHIEVING ZERO IMPACT OPERATIONS

• On World Oceans Day, MSC Cruises publishes its 2021 Sustainability Report, highlighting the Company’s environmental commitments and important steps taken in its long-term sustainability strategy
• MSC Cruises has developed a comprehensive Sustainability Action Plan, establishing six key areas with corresponding activities, goals and targets
• Significant progress has been achieved in every area, targeting net zero operations by 2050, as well looking after its people and supporting sustainable tourism

Geneva, Switzerland – 8 June 2022 – MSC Cruises has chosen World Oceans Day to publish its 2021 Sustainability Report. While the past year has again been marked by the challenges brought by the pandemic, MSC Cruises made significant progress in its sustainability practices.

MSC Cruises’ Sustainability Action Plan, developed with the active engagement of employees and external partners, establishes six key workstreams across the business: transitioning to net-zero emissions, scrutinising resource use and waste, supporting our people, investing in sustainable tourism, building greener terminals, and procuring sustainably. Actions within the plan are accompanied by goals, with measurable targets. Where possible, these align with relevant industry-approved metrics. These six key workstreams fall into the Company’s four focus areas of sustainability: Planet, People, Place, and Procurement.

The Sustainability Advisory Board for the Cruise Division of MSC Group, which includes the MSC Cruises brand and is chaired by Executive Chairman Pierfrancesco Vago, is responsible for ensuring the continued relevance of the sustainability strategy and for reviewing progress, guided and supported by the Sustainability Team.

Pierfrancesco Vago, Executive Chairman of the MSC Group’s Cruise Division, said, “While navigating our way through the extraordinary turbulence of the past two years, we have kept focused on sustainable business practices and on protecting our guests, employees and the communities in which we operate. Today more than ever, we recognise the vital importance of our environment, and a healthy and viable planet. We are firmly committed to achieving our long-term goal of zero-impact cruise operations by 2050 and we are well advanced on this journey.”

“At the same time as a company and an industry we are investing heavily in the accelerated development of environmental technologies and solutions that don’t exist just yet to make these objectives achievable. It must be recognized that for this endeavor we also need the full engagement of Governments and other public and private entities to ensure, for example, that the right infrastructure exists on land and green fuels become available at scale for our ships around the world. This we cannot do alone.”

Linden Coppell, MSC Cruises’ Sustainability Director, added, “The appropriateness and relevance of our Sustainability Strategy and action plans have been confirmed through a materiality assessment requiring engagement with employees, guests and other key external stakeholders, and helping us to prioritise our sustainability topics. For each one of them, we have established clear metrics against which to measure progress. Through our future annual Sustainability Reports we will be held to account in achieving our targets.”

In 2021, progress has been achieved in all areas of MSC Cruises’ Sustainability Action Plan, and these are the highlights:

PLANET

1. Transitioning to net-zero emissions

Energy efficient operations across our fleet support our net zero journey. In 2021, we conducted advanced trials of energy efficiency measures on MSC Grandiosa, cutting emissions by 8% compared to design performance.  We are committed to replicating these measures across the rest of the fleet.

We aim to limit SOx, NOx and particulates, particularly in ports. By the end of 2021, 14 of our vessels were fitted with hybrid exhaust gas cleaning systems, reducing SOx by 98%. Our three newest ships have selective catalytic converters, which convert NOx into harmless nitrogen and water.

By the end of 2021, seven of our 19 ships, including all our new ships, had been fitted with shore power capability. This enables onboard engines to be switched off, cutting emissions. We are committed to using these systems whenever shore power is available.

A key step in our net zero journey is collaborating with technology providers to support and test new energy systems, as well as new lower or zero emissions fuels. We are also working closely with governments to encourage effective policy measures to support an industry-wide transition.

Speed has a major impact on emissions. In 2021, we carried out a thorough review of our itineraries, resulting in an average speed reduction of over two knots, compared to 2019. 

1. Scrutinising resource use and waste

We aim to reduce onboard water demand by 3% per year for each ship, through a combination of monitoring usage, fitting water saving technologies, and training and educating crew.

All MSC Cruises’ vessels are fitted with approved and certified ballast water treatment systems. In 2021, 100% of ballast water was filtered and UV treated before being discharged at sea, to ensure that it does not contain harmful aquatic organisms and pathogens, which can damage the local environment.

PEOPLE

1. Supporting our people

In 2021, we continued to invest in the wellbeing of our employees, both onboard and ashore, keeping them safe and supporting them physically and mentally. Despite the ongoing pandemic, we also maintained our extensive training programmes, ensuring our teams were compliant with mandatory systems and prepared for the introduction of new technologies and future changes. We also remained committed to building a healthy and diverse work culture across the Company.

PLACE

1. Investing in sustainable tourism

Our shore excursions team has worked with tour operators to identify excursions founded on strong sustainability principles. Known as ‘Protectours’, these excursions are specifically designed to educate our guests. Around 70% of these tours include low impact transportation, including walking, cycling or kayaking, and many make a direct contribution to the environment through supporting species or habitat protection.

We partnered with Travelife to deliver training and capacity building for all the tour operators we work with. Travelife is an initiative for tourism companies committed to achieving sustainability: its specialised indicators, based on the Global Sustainable Tourism Council’s Industry Standard criteria, focus on supply chain impact and the responsibilities of tour operators.

We are committed to playing our full part in protecting natural ecosystems, by supporting initiatives that promote responsible and sustainable tourism. Through the MSC Foundation, wildlife protection and habitat regeneration – particularly for ocean species – are being supported, including around our island destination, Ocean Cay. In 2021, we also started working with several NGOs to identify new ways of avoiding whale strikes.

1. Building greener terminals

In 2021, we continued to invest in new sustainable terminal facilities, and work has progressed on several of these. The Durban Cruise Terminal in South Africa became operational in December 2021. It was the first South African port to resume MSC Cruises itineraries since the start of the pandemic. Construction of the new MSC Cruises terminal in Miami began in the summer of 2021 with a comprehensive environmental and social management system in place for the construction and subsequent operation of the terminal. A third new MSC Cruises terminal is under construction in Barcelona and is due to be operational in 2023.

We are committed to meeting LEED certification for all new terminals in which we invest. LEED (Leadership in Energy and Environmental Design) is a widely used global green building rating system. Its rigorous score-based systems ensure high levels of efficiency in building design and operation.

PROCUREMENT

1. Procuring sustainably

In 2021, we created a new internal committee dedicated to ensuring our approach to procurement has a positive impact on society and minimises damage to the environment. It is comprised of heads of procurement, logistics and sustainability, and meets every two months to review operational standards across our supply chain and to identify specific opportunities for positive change.