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MSC Cruises Sustainability Report 2019

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MSC Cruises Sustainability Report 2019 CHARTING OUR SUSTAINABLE FUTURE Sustainability Report 2019 SUSTAINABILITY REPORT 2019 2019 SUSTAINABILITY REPORT 1 “As we are finalising this report, we find ourselves in uncharted waters; the public health emergency created by COVID-19 is one of the biggest challenges that the travel and tourism sector and the cruise industry has ever faced. Rather than distracting us from delivering our sustainability ambitions, this crisis has reminded us that we are all connected and responsible for taking care of one another. We continue to be as committed to our sustainability ambitions and from 1st January 2020 will be carbon neutral for our ship operations through investment in credible carbon reduction projects around the world.” PIERFRANCESCO VAGO, EXECUTIVE CHAIRMAN CONTENTS SUSTAINABILITY REPORT 2019 Introduction 4 Welcome from our Executive Chairman 6 MSC Cruises at a glance 8 Our four areas of focus 10 How we conduct our business 14 Working in partnership 16 Shared goals 17 Materiality assessment Planet 19 Cleaner air 20 Reducing carbon 22 Conserving energy 26 Environmental innovations 28 Water and wastewater management 31 Waste management People 33 Health and safety 36 Talent acquisition, training and development 38 Creating leaders 40 Diversity and inclusion 41 Crew wellbeing 43 Crew satisfaction Place 45 Economic impact, jobs and prosperity 46 Our port commitments 49 Managing tourism 51 Shore excursions 54 Ocean Cay MSC Marine Reserve 58 Introducing the MSC Foundation Procurement 65 Creating a strong supply chain 66 Ethic and human rights 67 Reducing environmental impact 71 Promoting local sourcing 72 COVID-19 update 74 Data table 3 SUSTAINABILITY REPORT 2019 INTRODUCTION Welcome from our Executive Chairman On behalf of MSC Cruises, I’d like to welcome you to our 2019 Sustainability Report. As we are finalising this report, we find ourselves in uncharted waters; the public health emergency created by COVID-19 is one of the biggest challenges that the travel and tourism sector and the cruise industry has ever faced. I want to thank my colleagues who have tackled this crisis with such professionalism and dedication. They have worked incredibly hard despite the many challenges that we face. Rather than distracting us from delivering on our sustainability ambitions, this crisis has reminded us that we are all connected and responsible for taking care of one another. My goal is for MSC Cruises to provide the leadership that will help the entire cruising industry advance on its journey towards a more sustainable future. The ships that we are designing today will be in service for more than 30 years, so we must plan ahead, invest in R&D and prepare to retrofit our existing ships as new technologies emerge. Our ultimate goal is to build zero emissions ships. We acknowledge that this will take time, and that climate change is an urgent issue. This is why, while we work on the development of new technologies that will allow this, we have taken the decision to bridge the technology gap by compensating for our ships’ emissions through investing in carbon offsetting projects. We will begin by sourcing high integrity carbon offset projects, with a focus on forest conservation and renewable energy production in developing countries, and we are committed to investing in the blue carbon economy. 4 INTRODUCTION SUSTAINABILITY REPORT 2019 “My goal is for MSC Cruises to provide the leadership that will help make the entire cruising industry truly sustainable.” Beyond protecting the environment, sustainability also Another important milestone was the launch of the means supporting the people who work with us and MSC Foundation, through which we give back to choose to travel with us, as well as the communities our destinations economically and socially. During and places that we visit and do business with. We want Hurricane Dorian in The Bahamas in August and to increase sustainable tourism, encouraging our tour September we were there providing relief, delivering operators to operate more sustainably and providing real goods and services, including over 300 containers of value to the communities where we operate. food, medical items, generators and housing materials valued at over US$5.5 million. The opening in December 2019 of the Ocean Cay Marine Reserve in The Bahamas was a major milestone. As a rapidly-growing and environmentally ambitious We successfully converted an industrial wasteland into major cruise line, our success is down to our over a natural paradise founded on strong sustainability 20,000 dedicated employees, who represent 124 principles for our guests to enjoy. Engaging extensively nationalities. Respecting their rights and providing with local stakeholders and the employment of a working conditions that meet international best primarily Bahamian workforce, has been integral to its practices and standards is important to us. Moreover, success. supporting our people’s wellbeing and development is at the very centre of our operations and will be critical for our continued growth. On behalf of the Aponte family and our entire MSC Cruises family, we’d like to thank you for your interest in our sustainability ambitions. Our industry faces big challenges - and also opportunities – and we are excited about the journey ahead. My very best wishes, PIERFRANCESCO VAGO, EXECUTIVE CHAIRMAN 5 SUSTAINABILITY REPORT 2019 INTRODUCTION MSC CRUISES AT A GLANCE Our fleet consists of 17 ships, in operation 365 days a year, taking our passengers to ports all over the world. Delivering this experience requires thousands of crew and support staff, and a truly global infrastructure. Our operations 17 5,704 102 SHIPS OPERATING DAYS COUNTRIES VISITED (+2 on 2018) (up 10% on 2018) 7.5 years 17.4m 239 AVERAGE AGE OF FLEET AVAILABLE LOWER BERTH DAYS DIFFERENT ITINERARIES (up 14% on 2018) Our Ships 2003 2006 2008 MSC LIRICA MSC MUSICA MSC FANTASIA 2004 2007 2009 MSC ARMONIA MSC ORCHESTRA MSC SPLENDIDA 2004 2008 2012 MSC OPERA MSC POESIA MSC DIVINA 2004 2010 2013 MSC SINFONIA MSC MAGNIFICA MSC PREZIOSA 6 INTRODUCTION SUSTAINABILITY REPORT 2019 Our Employees Our Guests 22,468 2,608 2,7m EMPLOYEES AT YEAR END SHORESIDE EMPLOYEES GUESTS (up 16% on 2018) 19,860 124 185 CREW EMPLOYEE NATIONALITIES GUEST NATIONALITIES Our Future Plans 2017 2017 MSC SEASIDE MSC MERAVIGLIA 10 NEW SHIPS ON ORDER 2020 TO 2025 2018 2019 (+4 future options) MSC SEAVIEW MSC BELLISSIMA 2019 3 MSC GRANDIOSA LNG SHIPS 2022 TO 2025 (+2 future options) Our latest ship, MSC Grandiosa, uses 28% less fuel per passenger than our Fantasia 25,000 class of ships EXPECTED HIRES IN NEXT 5 YEARS 7 SUSTAINABILITY REPORT 2019 INTRODUCTION OUR FOUR AREAS OF FOCUS Our sustainability programme is organised around four themes: Planet, People, Place and Procurement. Here are some highlights from 2019. Planet People From Barcelona to Buenos Aires our ships can be found From Italy to India we employ talented team members sailing the oceans. We travel the world and care about from around the world. We care about our people who our precious planet. care for our guests. -28% 80% 8,045 €8.7m reduction in carbon of our freshwater new employees from investment in employee intensity since 2008 onboard comes from across the world training seawater -98% 26,531m3 49% 0 reduction in sulphur of waste from our ships of new crew managers outbreaks of dioxide from a ship with was segregated for promoted from within the gastrointestinal or flu-like an exhaust gas cleaning recycling company illness system 8 INTRODUCTION SUSTAINABILITY REPORT 2019 Place Procurement From the Caribbean to China we help our guests From ships to straws we think carefully about every explore the world. We’re committed to ensuring future purchase we make. We also care about how we dispose generations can explore too. of used items. $101 20 97m 80% is the average spent by destinations offering single-use plastic items food and beverage items passengers in each port tours for those with eliminated locally sourced destination (CLIA statistic) limited mobility 95% 100% 420 4,000 local employment on goal for tour operators tonnes of cod and hake food safety analysis tests Ocean Cay MSC Marine to be GSTC engaged or procured was certified as Reserve certified sustainably sourced 9 SUSTAINABILITY REPORT 2019 INTRODUCTION HOW WE CONDUCT OUR BUSINESS Our company values Five key values form the bedrock of our Company. These values support our vision, shape our culture and set our future course. The commitment of the MSC Cruises’ employees are founding family serves to passionate about what they inspire dedication and trust in do. We challenge ourselves MSC Cruises’ employees. to achieve excellence and we Sharing the family’s are tenacious in overcoming entrepreneurial spirit leads us obstacles. Working together with to act in a proactive, courageous passion and enthusiasm, we and responsible manner to provide a unique experience for safeguard the best interests of our guests. our guests and our Company. Our tradition, expertise, MSC Cruises’ mission is to MSC Cruises believes that each professionalism and ambition provide its people with personal person brings unique value. We drive the Company’s fast fulfilment and enrichment. We develop authentic relationships and sustainable growth. We are committed to sharing our built on ethics, respect and team strive for the most innovative knowledge as well as delivering spirit. We genuinely care about solutions to embrace change, training and support to enable the satisfaction and loyalty of always respecting safety and the our people’s professional growth. our guests and employees. environment. We ensure fair opportunities and provide long-term career development. We embrace diversity and value all cultures equally. 10 INTRODUCTION SUSTAINABILITY REPORT 2019 How we govern our sustainability programme The key sponsor of our sustainability efforts is our Executive Chairman, who establishes the overall vision.
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