CARNIVAL UK | 2012CARNIVAL UK | 2013

CARNIVAL U

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Sustainability Report 2013

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SUSTAINABILITY REPORT 2013 | WELCOME

A message

In the European Commission’s “Strategy for more growth in Coastal and Maritime Tourism” published in 2013, cruising was identified as a key sector in achieving its target of generating jobs and economic benefits for coastal communities which have suffered more than most in the economic downturn since 2009.

It clearly recognised the way cruise companies generate additional tourism for the ports and destinations their ships visit which, in turn, creates jobs in a range of sectors and stimulates regional economies with a much lower call on local resources than land-based tourism. This is especially beneficial for emerging destinations which lack the marketing budgets to raise their own profiles in the highly competitive tourism arena.

TO CARNIVAL UK STAKEHOLDERS

In the UK, the previously sharp upward growth curve has slowed down since 2009 with the 1.5% increase (to 1.73m passengers) in 2013 limiting the five-year average to 3.4%. But, as detailed later in this report, there has been significant growth in the benefits generated by the sector for the UK economy. In terms of economic input and jobs supported by the cruise industry, the UK is second only to Italy as the major beneficiaries among European countries. It also remains the second largest source of global cruise passengers, a position it has held (behind the USA) for several decades.

The European Commission report also reflected a new awareness of the dynamism of an industry which has demonstrated its ability to grow through difficult as well as favourable economic times. Globally, passenger numbers increased again in 2013 – by about 2% to top the 21m mark for the first time; from Europe, numbers rose nearly 4% to just short of 6.4m and this meant that over the five-year period since 2009, annual growth had averaged more than 8%. (fig. 1).

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2013 – 6.4m passengers

2012 – 6.3m passengers

2009 – 4.5m passengers

20132009 2012

fig.1Total number of passengers cruising in Europe (in millions)

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Carnival UK brands attract about 40% of UK cruise passengers. Headquartered in Southampton and employing 1,300 staff in 2013, the company also generates more than half of the economic benefits from the cruise industry for the UK. Every time one of our ships begins a cruise in Southampton, it brings in more than £1m to the local economy – and there are about 200 cruises every year. The number of cruises – along with the benefits – will increase significantly in 2015 with the delivery of the largest and most environmentally-friendly ship ever to be built for P&O Cruises: Britannia.

This will confirm Carnival UK as the market leader in the UK, a role which also requires us to set the agenda for building an industry that is sustainable economically, socially and environmentally.

This is the fifth annual Carnival UK sustainability report and it is a key part of that agenda for it details the company’s ongoing commitment to operating in an ever-more sustainable way through constant evaluation of operational procedures and investment in new technologies which has already resulted in a significant reduction in fuel consumption and GHG emissions.

We also strive to be a good and ethical employer, ensuring the health and safety of all our staff as well as of all our passengers. In an increasing number of ways, Carnival UK is also contributing to the wellbeing of the communities in which it is based and also – as recognised by the European Commission – to those to which its ships take their passengers.

David Noyes Carnival UK, Chief Executive Officer

SUSTAINABILITY REPORT 2013 | WELCOME

We also strive to be a good and ethical employer, ensuring the health and safety of all our staff as well as of all our passengers.

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Carnival Corporation & plc set an overall target of a 20% reduction (from a 2005 baseline) in Greenhouse Gas (GHG) emissions (measured in CO2 emissions from shipboard operations) by 2015 and was on target to achieve this a year early after a reduction of more than 2% in 2013 brought the overall drop since 2005 to more than 19%. This has been achieved largely by reducing energy consumption across the ships (fuel use was down by more than 5% between 2005 and 2013) and the Corporation is continuing to develop practical and feasible energy reductions and conservation initiatives.

Shore power system connections have been installed on 20% of the Carnival Corporation & plc fleet and several more ships have partial plug-in installations which can be adapted for full connections on itineraries featuring ports offering shore power options which reduce ship emissions.

All brands also have sewage treatment systems installed on their ships which are approved and certified by the International Maritime Organisation (IMO), as well as being endorsed by the relevant countries’ coastguard regulatory agencies.

There are now Advanced Wastewater Treatment Systems (AWTS) on 48 of the Corporation’s ships (up from 36 in 2012). These are able to treat sewage and grey water (from sinks, showers, galleys as well as laundry and cleaning activities) to a higher discharge standard than typical shoreside municipal treatment plants.

The Carnival Corporation & plc Health, Environmental, Safety and Security (HESS) policy spells out a commitment to protecting the environment – in particular, the marine environment and the communities in which (and to which) its brands and ships operate.

The board of directors at Carnival Corporation & plc have established a board-level HESS Committee to assist the board in fulfilling their responsibility to supervise and monitor HESS policies, programmes, sea and onshore initiatives, and compliance with HESS legal and regulatory requirements.

Carnival’s Maritime Policy Department, which is headed by a senior vice president and has a full-time professional and administrative staff, is responsible for providing a common, integrated approach to management of HESS matters and also for reporting to the HESS Committee on such matters.

This includes developing fleetwide standards and procedures for safe and environmentally-responsible ship operations, assessing and managing maritime risks and overseeing corporate HESS and sustainability programmes.

In 2012, its sustainability responsibilities were expanded and a dedicated sustainability director and manager were appointed who continued to oversee this area through 2013.

Carnival UK is part of Carnival Corporation & plc, the leading global cruise company which, in 2013, owned and operated 10 cruise brands. Two of these are UK-based – P&O Cruises and Cunard Line – while the sales and marketing of US-based Carnival brand Princess Cruises is also supported in the UK and Europe by Carnival UK.

The other seven Carnival brands are Carnival Cruise Lines/CCL (US-based), AIDA Cruises (Germany), P&O Cruises Australia, Costa Cruises (Italy), Holland America Line/HAL (US), Seabourn Cruises (US) and (until 2015) Ibero Cruceros (Spain). Carnival Australia encompasses the various Carnival brand operations in that region while Carnival Asia and Carnival Japan support multiple brand activities in China, Japan and Southeast Asia.

STRUCTURE

Our company

SUSTAINABILITY REPORT 2013 | COMPANY STRUCTURE

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CORPORATE COMMITMENT TO CUT EMISSIONS

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SUSTAINABILITY REPORT 2013 | COMPANY STRUCTURE

In 2013, the US Environmental Protection Agency and US Coast Guard announced that an agreement had been reached with Carnival Corporation which would see this cruise company develop new emission control technology: scrubbers (exhaust gas cleaning systems). Carnival committed $180m to implementing this technology on 32 ships (on the Cunard, HAL, CCL and Princess brands) being deployed in the North American Emissions Control Area (ECA) extending 200 miles off the North American coastline and also in the US Caribbean ECA. This commitment has since been increased to cover 70 ships.

Carnival Corporation & plc has been recognised for its efforts by a number of public environmental disclosure forums and socially-responsible investment rating agencies including the Carbon Disclosure Leadership, FTSE4Good and Maplecroft Climate Innovation indexes.

It has also been ranked among the “100 Best Corporate Citizens” by Corporate Responsibility Magazine and was top-rated in Florida in the Southeastern Corporate Sustainability Rankings.

It has been publicly disclosing environmental performance data since 2006 and, in 2011, published its first corporate-level Sustainability Report for fiscal year 2010 in accordance with the G3 Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI). Two more have followed, covering 2012 and 2013. There have also been a series of such reports by individual brands or brand groups, including Carnival UK.

All operating lines are certified in accordance with the ISO 14001 Environmental Management Systems

COMPANY BACKGROUND

Carnival Corporation & plc was formed in 2003 from a combination of Carnival Corporation and P&O Princess Cruises plc with the UK-based arm of the newly-created company becoming Carnival plc and operating under the Carnival UK branding.

In 2013, total Carnival Corporation & plc revenues were $15.5bn (up 0.5% on 2012) (fig. 2) from the operation of more than 100 ships and two Alaska tour operating companies.

Of those revenues, 50% was generated from passengers sourced in North America compared with 52% in 2012; 35% (35%) from Europe and more than 14% (13%) from other international markets led by Australia and Asia (fig. 3). Net income was nearly $1.1bn, a 17% decrease compared with 2012’s $1.3bn. Staff employed worldwide remained at about 90,000.

Operating at an average 105.1% (105.5%) occupancy (based on double occupancy of cabins, some of which have third/fourth berths), the Carnival brand ships carried nearly 10.1m passengers – a 2.4% rise on 2012 (fig. 4).

Carnival dates back to 1972 when entrepreneur Ted Arison formed CCL as a subsidiary of American International Travel Service (AITS). Two years later he purchased CCL outright for $1 and assumption of $5m debt. The company grew both organically and by acquisition over the next 30 years so that by 2003 – under the leadership of Chairman and Chief Executive Officer Micky Arison – it owned six brands: CCL, Costa, Cunard, HAL, Seabourn and Windstar Cruises (since sold).

At the time of the merger, P&O Princess Cruises owned and operated three other brands (AIDA, Ocean Village Holidays, Swan Hellenic) in addition to P&O Cruises, P&O Cruises Australia and Princess. Both Ocean Village and Swan Hellenic have since been discontinued or sold leaving Carnival Corporation & plc operating ten brands in 2013 under the leadership of Chairman Arison and the newly-appointed CEO Arnold Donald.

Carnival UK was marketing three brands (Cunard, P&O Cruises and Princess) in the UK in 2013 with no significant capacity increase compared with 2012. Carnival UK accounts for about 40% of UK cruise sales with most going to P&O Cruises and Cunard, which also have the longest histories in the cruise industry. Unless otherwise specified, Carnival UK data in this report applies only to P&O Cruises and Cunard.

standard and these sustainability reports include multi-year environmental performance indicators.

Carnival Corporation & plc is also a member of several global and national organisations driving environmental and sustainability efforts. These include the Global Environmental Management Initiative, Sustainable Shipping Initiative, National Association for Environmental Management and – through HAL – the Marine Conservation Institute’s sustainable seafood programme.

This is because it believes that sustainability is not a cost of doing business but rather is a way of doing business. It is about preserving the environment, respecting its employees and communities while also returning value to its shareholders. It also recognises that – in today’s business climate – the viability of its business and its reputation depends on being more sustainable and also being more transparent about its operations.

Details of Carnival’s public policy positions on issues beyond those in its corporate sustainability report are addressed on the websites of the following organisations:

Cruise Lines International Association: www.cruising.org

Florida-Caribbean Cruise Associations: www.f-cca.com

International Chamber of Shipping/ International Shipping Federation: www.marisec.org

European Community Shipowners’ Association: www.ecsa.be

The UK Chamber of Shipping: www.british-shipping.org

Ship Emission Abatement and Trading: www.seaat.org

Global Environmental Management Initiative: www.gemi.org

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2013 – $15.5bn

2012 – $15.4bn

20132012

fig.2Carnival Corporation & plc revenues

Other markets – 15%

Europe – 35%

North America – 50%

fig.3Carnival Corporation and plc revenues regional split

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2013 – 10.1m passengers

2012 – 9.8m passengers

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fig.4Carnival ships’ passengers

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1835 Arthur Anderson runs a dummy advertisement in his own Shetland Journal for “cruises” around the Shetland Isles to the Faroes and Iceland.

1837 The Peninsular Steam Navigation Company – owned by Anderson and Brodie McGhie Willcox – was awarded the contract to deliver the Royal Mail to the Iberian Peninsula (Spain and Portugal).

1840 Name is changed to the Peninsular and Oriental Steam Navigation Company when it wins the Royal Mail contract to Egypt.

1844 William Makepeace Thackeray is given a free cruise to Egypt which involves travel on several P&O ships. Although his review is mixed, to say the least, it brings P&O welcome publicity.

Late 1800s Orient Line (later bought by P&O in 1918) effectively established cruising as a holiday choice, with Caribbean, Mediterranean and Norwegian fjords itineraries.

1904 P&O buys the liner Rome and turns it into its first full-time cruise ship, Vectis.

1922 Orient Line resumes cruising post-World War I.

1929 P&O launches Viceroy of India, its first turbo electric-powered ship and the first to have an indoor swimming pool.

1957 Two liners – Canberra and Oriana – are ordered for the UK-Australia run and, by the time both were launched (1960/1961), P&O Cruises had created a new brand – P&O Orient Lines – for which they operated. This reverts to P&O Cruises just six years later.

1974 P&O Cruises buys Princess Cruises, a US West Coast brand created in 1965 by Stanley MacDonald, creating P&O Princess plc. Canberra returns from its liner-to-cruise ship conversion to begin sailing from Southampton.

1982 Canberra, along with Cunard’s QE2 and the Uganda from P&O Cruises educational cruise brand British India, were requisitioned by the British Government for the Falklands War.

1988 Princess Cruises takes over Sitmar and P&O Cruises makes the provisional decision (confirmed with an order in 1991) to build a new cruise ship, which became Oriana in 1995.

2000 P&O Cruises takes delivery of a second new ship, Aurora. In the same year P&O Princess plc demerged from P&O’s other key business areas, trading as an independent company on the London and New York stock exchanges.

2002 Princess Cruises’ Ocean Princess switches to P&O Cruises and is renamed Oceana.

2003 P&O Princess Cruises is merged into Carnival Corporation.

2005 A third new ship, Arcadia, joins P&O Cruises and a second Princess ship, Royal Princess, is switched and starts operating as Artemis for P&O Cruises. Adonia, which had previously been switched from Princess, rejoins its former fleet as Sea Princess.

2008 P&O Cruises first ship in excess of 100,000t, Ventura, enters service.

2009 Sale of Artemis (effective 2011) is announced with Adonia (now Royal Princess) to be switched from Princess Cruises to replace it at the same time.

2010 A sister ship to Ventura, Azura, enters service.

2011 P&O Cruises orders the largest ship in the company’s history – 141,000t/3,611 passengers – for delivery in early 2015 and a €560m cost.

2012 Celebrates the 175th anniversary of the awarding of that original Royal Mail contract by organising a spectacular sail past of the entire seven-ship fleet in the Solent.

2013 Major, multi-million pound refits for Ventura and Arcadia reflect customer demand for more alternative dining options and single cabins.

SUSTAINABILITY REPORT 2013 | P&O CRUISES

Historical highlights 1835-2013

P&O CRUISES FLEET 2013 GROSS REGISTERED TONNAGE

NORMAL OPERATING CAPACITY

MAXIMUM OPERATING CAPACITY

ADONIA 30,300 798 838

ARCADIA 83,700 2,016 2,120

AURORA 76,000 1,870 1,950

AZURA 115,000 3,100 3,574

OCEANA 77,000 2,016 2,272

ORIANA 69,840 1,818 1,928

VENTURA 115,000 3,078 3,574

TOTALS 566,840 14,696 16,256

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1839 Samuel Cunard establishes the British and North American Royal Mail Steam Packet Company – known as Cunard Line – principally to carry the Royal Mail to Canada and the USA.

1881 Cunard’s first steel vessel, Servia, enters service as the line’s first solely passenger ship.

1906/7 Lusitania and Mauretania launched with the latter going on to hold the Blue Riband for the fastest Atlantic crossing for 22 years.

1920s/30s The heyday of transatlantic crossings with Cunard’s slogan “Getting there is half the fun!” becoming a household phrase.

1922 Laconia makes the first-ever world cruise.

1934 Queen Mary is first merchant vessel to be launched by a Royal Family member – Queen Mary herself.

1939-1945 Winston Churchill remarks that the requisitioning of Cunard’s Queen Mary and Queen Elizabeth as troop carriers helps shorten World War II by at least a year.

Late 1940s The two liners begin carrying film stars and other celebrities among many thousands of other business and leisure passengers on transatlantic crossings.

1949 Cunard’s first ship to be built solely for cruising, Caronia (AKA Green Goddess) enters service.

1950s Cunard liners carry a third of all passengers crossing the Atlantic.

1959 First jet crosses the Atlantic, signalling a time when more passengers fly rather than sail across.

1967/1969 Launch and maiden voyage of Queen Elizabeth 2.

1971 Cunard Steamship Company taken over – after 131 years – by Trafalgar House PLC.

1976/7 Cunard Countess/Cunard Princess launched and Cunard Countess is later requisitioned – along with QE2 – for the Falklands War in 1982.

1983 Cunard buys Norwegian America Cruises’ Sagafjord and Vistafjord.

1986 Cunard acquires Sea Goddess I and II, bringing fleet to seven ships – the largest number for 25 years.

1993 Cunard enters joint venture with Crown Cruise Line.

1994 The world’s highest-rated ship, Royal Viking Sun, is bought by Cunard for $170m.

1996 Norwegian conglomerate Kvaerner buys Trafalgar House and takes control of Cunard.

1997 The headquarters of Cunard moves from New York to Miami.

1998 Carnival Corporation-led consortium buys Cunard for $500m and merges it with Seabourn Cruise Line to form Cunard Line Limited.

1999 Carnival buys another 32% of Cunard to gain 100% ownership.

2000 Cunard signs final contract for France’s Chantiers de l’Atlantique to build Queen Mary 2.

2001 Pamela Conover becomes the first woman to take the Cunard helm when she is appointed President/CEO.

2004 Queen Mary 2 is named by Her Majesty the Queen and enters service.

2007 Another new ship, Queen Victoria – this time purpose- built for cruising – is named by her Royal Highness The Duchess of Cornwall and enters service.

2009 Farewell year for QE2 before “retired” to Dubai.

2010 HM The Queen names Queen Elizabeth, the arrival of which gives Cunard the industry’s youngest fleet.

2011 Cunard schedules all three ships for world cruises in 2013 – the largest such programme in its history.

2012 The three ships meet in Southampton to mark HM The Queen’s Diamond Jubilee. Also, for the first time in its 172-year history, Cunard offered its passengers the opportunity to be married on board with ceremonies carried out (at sea) by the Captain.

2013 Queen Mary 2 prepares to celebrate 10 years in service in the first week of 2014.

CUNARD LINE FLEET 2013 GROSS REGISTERED

TONNAGE

NORMAL OPERATING

CAPACITY

MAXIMUM OPERATING

CAPACITY

QUEEN ELIZABETH 92,000 2,092 2,170

QUEEN MARY 2 151,400 2,620 3,090

QUEEN VICTORIA 90,000 1,980 2,170

TOTALS 333,400 6,692 7,430

Historical highlights 1839-2013

SUSTAINABILITY REPORT 2013 | CUNARD

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Policies

Carnival UK CEO David Dingle was a key signatory (on behalf of Carnival Corporation) to Vision 2040 – the major statement of intent from the newly-formed Sustainable Shipping Initiative (SSI) set up by Forum for the Future and founding member, the World Wide Fund for Nature. (SO5/EN26) Other signatories represented 16 companies from across the shipping industry spectrum which had agreed to a “Vision 2040” strategy which committed them to various actions and policies through to 2040. (SO5/EN26)

* pioneering or implementing aggressive improvements in energy efficiency in new ship designs, retrofitting and operations

* seeking out renewable and other energy sources to achieve significantly reduced greenhouse gas intensity

* implementing systems to trace and increase accountability for shipbuilding materials and their sources

* engaging with partners to achieve major supply chain efficiency gains

* exploring ways to put a financial value on ecosystem goods and services to ensure responsible resource use and to reduce ecosystem impacts

* adopting labour standards to improve safety, security, living conditions, wages and reward for workers

* developing and facilitating the implementation of economic, social and governance best practices that benefit the key communities affected by the industry

* working in partnership to share risks and benefits associated with developing, testing, and implementing sustainable innovation and technology for both newbuilds and retrofitting of ships

* pioneering methods for shipping’s stakeholders to compare sustainability performance to drive improvement, encouraging customers to make this performance a key factor in selection and also promoting global adoption of an agreed set of performance standards

* developing preferential access to capital and insurance that rewards high sustainability performance

AND

* supporting the development of coordinated and progressive legislation aimed at significantly improving social, environmental, and economic sustainability across the shipping industry.

In 2012, four SSI work streams were set in motion to achieve some of the objectives above, notably in the areas of financing new technology and reducing energy consumption and greenhouse gases. (SO5/EN26)

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CARNIVAL UK KEY PARTNER IN MAJOR INDUSTRY INITIATIVE

THESE INCLUDE:

SUSTAINABILITY REPORT 2013 | POLICIES

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SUSTAINABILITY REPORT 2013 | POLICIES

Most recently, it helped fund the pilot Wild Beach school programme that the Sussex Wildlife Trust (SWT) set up in 2012 to “enable children to enjoy, learn from and be inspired by their local beach and to value its place in our world”.

In 2013, SWT trained teachers and youth workers on two-day courses designed to empower them to run their own beach programmes at their schools, pre-schools and nurseries. It is still offering the 10 week Wild Beach programme to schools who want to buy SWT in but the Trust believes the way forward is by training schools to do it themselves.

Carnival UK has been supporting three other wildlife trusts (Dorset, Kent, and Hampshire & Isle of Wight) in various coastal or marine-related programmes over recent years.

It continued to fund the Kimmeridge Kayak Safari project run by the Dorset Wildlife Trust (DWT) through 2013. This project gives people the chance to see marine life in Kimmeridge Bay on Dorset’s Jurassic Coast and so highlight (as with Wild Beach) the need for more Marine Protected Areas to reverse the decline in the British marine environment. In 2013, there was increased use of social media (and the production of a short promotional film) to promote the guided kayaking trips.

The Carnival UK funding for DWT is provided (in conjunction with Veolia and Betts Metals) from monies raised by the silver retrieved from the processing of cartridges used to filter the photographic waste generated on board its ships.

Carnival UK also links with Veolia and Biodriven to turn cooking oil used on the ships into biodiesel and the revenue from this goes to the Hampshire & Isle of Wight Trust (HWT) and Kent Wildlife Trust (KWT).

This has enabled the two trusts to expand their volunteer engagement and marine survey work across the three counties. This, in turn, contributes to an increased knowledge and understanding of the local marine environment.

It also contributes to the National Biodiversity Network database, enabling local people to engage with that marine environment.

Since 2004, the KWT has been running Shoresearch survey and training events and more than 11,000 records of plants and animals living along the Kent Coast have been made with more than 500 different species identified.

Ten events – including one for training – were scheduled in 2013 when the trust becomes involved in PANACHE (Protected Area Network Across the Channel Ecosystem) set up to develop techniques to monitor the seas and gather comparable data on the state of protected areas throughout the Channel.

Carnival UK’s Environmental Manager Richard Catt said: “It is very exciting to be engaged with all the Wildlife Trusts and to help their visions become reality.”

FURTHER INFORMATION:

www.sussexwildlifetrust.org.uk

www.dorsetwildlifetrust.org.uk/kayaking.html

www.kentwildlifetrust.org.uk/what-we-do/living-seas

www.hiwwt.org.uk

www.biodriven.co.uk

www.bettsmetals.co.uk

Carnival UK offers more than 2,000 excursions and tour experiences in destinations all around the world. The aim is to provide a wide variety which cater to passengers’ different interests and activity levels and thereby ensure they enjoy the best possible experience during their port stay.

It works with the local tour operators to ensure that they have put in place – and adhere to – strict safety management systems. They are also screened for the adequacy of their insurance cover while quality checks are carried out on a continuous basis.

The potential impact on the local environment is a key factor when Carnival UK brands select or create shore excursions for their passengers. This is why the brands work in partnership with excursion operators that adopt a more sustainable approach to tourism and also develop tours which raise awareness about environmental and cultural issues. (SO1)

If visits are being made to an environmentally fragile site, steps are taken to minimise the impact from passengers who are also advised of any relevant environmental issues regarding their visit. (SO1)

On all Carnival UK excursions in mainland France and in any French Overseas Departments or Territories, the carbon footprint of the transport element is declared (on request) to passengers. This is calculated on a per-person basis by the Carnival UK Shore Excursions Team with information provided by the excursion provider using methods recommended by the French Government. This information is also displayed on Cunard’s “Voyage Personaliser” and P&O Cruises’ “Cruise Personaliser”. (SO1)

Carnival UK brands avoid tours they believe will cause damage to the natural environment and prefer to be supportive of those providers that adopt a sustainable approach. Both brands offer a specific programme of charitable and socially and environmentally responsible excursions called ‘Green World Tours’ which has won the prestigious

LEAVE ONLY FOOTPRINTS – TAKE AWAY MEMORIES

Seatrade Insider Environmental Initiative award for “its notable contribution to advancing the environmental aspect of cruising.” (SO1)

The tours and visits are designed to make a positive difference to the environment, communities and social wellbeing at ports visited by the brands’ ships. They also focus on animal welfare and environmental awareness and conservation by shining a positive light on the unique characteristics of destinations and the work being carried out to understand, protect or improve those sites or areas. (SO1)

Green World Tours represent an increasing if still small share of the 2,000-plus excursions offered on Carnival UK brand cruises but many of the other tours also offer genuinely sustainable tourism experiences. (SO1)

There are an increasing number of activities which promote more environmentally-friendly ways to travel such as bicycle tours – some on eco-friendly E-bikes – and walking or hiking tours guided by local naturalists which enable passengers to learn about the area’s nature and eco-systems and give them an insight into local research or animal study centres. (SO1)

Also featured are ‘local experience’ tours which – through a combination of home visits and culinary experiences – provide small groups with the opportunity to meet locals and sample regional produce and thereby enjoy a deeper cultural experience than is typically afforded by more traditional shore tours. (SO1)

Carnival UK passengers are also provided with advice about the types of souvenirs that cause damage to the natural environment. Turtle shells, coral and plants are among those that the company recommends passengers do not buy so as to help preserve natural species in the places they visit. Passengers are reminded through the ship’s newspaper and the port presentations to dispose of rubbish in a responsible manner, using local rubbish bins where possible. If passengers are unable to dispose of rubbish ashore, they are encouraged to take it back to the ship so that it can be deposited in recycling/waste bins on board. (SO1)

WORKING FOR WILDLIFE

Carnival UK has formed strong relationships with a number of wildlife trusts in the regions around its Southampton headquarters.

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Environmental

Carnival UK plays an active part in the UK Chamber of Shipping, being well-represented on the Safety and Environment Committee during 2013. It also has a leading role in CLIA UK & Ireland. (SO5)

Its brands adhere to company and industry standards which meet and often exceed regulatory requirements in areas such as waste discharges. Carnival UK also has an Environmental Manager responsible for ensuring Environmental Management System (EMS) implementation and for monitoring environmental performance and compliance. Each ship has an Environmental Compliance Officer ensuring that these standards are met. (SO5)

The ships in the Carnival UK fleet use a variety of different diesel and gas turbine engines and their pro-rata consumption of fuel in recent years has been steadily decreasing due to a range of energy conservation measures both technological and operational.

On the technology side, 2013 saw one major innovation: Variable Frequency Drives, which are essentially dimmer switches on the fans that cool the engine space. Just a small reduction in fan speed can significantly reduce the energy being consumed while having a minimal impact on the engine room temperature. (EN5/EN6)

The major operational innovation has been the introduction of so-called ‘smarter itineraries’ which allow for reduced average speeds by – inter alia – tweaking port arrival and departure times and reducing the mileage being covered in between ports (sometimes by reducing the number of ports per itinerary). (EN5/EN6)

As a result of such measures in 2013, overall fuel consumption fell more than 8% with similar drops for both Heavy Fuel Oil (HFO) and Marine Gas Oil (MGO). This was a marginal increase in the level of fuel consumption reduction achieved in 2012 and was aided by the further reduction – 4.5% compared with 1% in 2012 – in the distance travelled by the Carnival UK fleet during 2013. (EN3)

CO2 emissions reduced by nearly 20% in 2013 following a 7% fall in 2012. Using conversion factors from the Marine Environmental Protection Committee (MEPC/Circ 471 29 July 2005), HFO and MGO usage contributed

1,222,433 (1,343,602 in 2012) tonnes of CO2 to the atmosphere. This decrease was mainly due to the reduction in fuel consumption. (EN16) The amount of CO2 emitted from fuel per ALB (Available Lower Berths) was about a 3% reduction on 2012 and about 25% down on 2008. (EN16) (fig. 5)

GHG emissions are not calculated for refits due to the lack of data on the mix of power supply to the docks but figures for other GHG emissions involved in Carnival UK ship operations in 2013 continued the downward trends of recent years. (EN16)

After several years of steady reductions, there was a small (5%) increase (primarily caused by a series of issues with air-conditioning equipment) to 7.93 tonnes of refrigerant gas lost in 2013 but this was still less than a third of the 2008 total of 24 tonnes lost. Again, using conversion factors contained in EC 842/2006 and the UNEP Technology and Economic Panel Review 2009 where available and the Material Data Safety Sheet (MSDS) where not, the CO2 equivalent to the 2013 total was just short of 21,700 tonnes, which was 11% down on 2012 and less than a fifth of 2008’s nearly 110,000 tonnes. (EN16) (fig. 6) .

A 65% decrease in the Ozone Depleting Potential (ODP) in 2013 means that this has now fallen spectacularly – by 99% – since 2008 (fig. 7), primarily due to the continued phasing out of R22 gas (in CFCs and HCFCs) across the Carnival UK fleet. (EN19)

Currently each ship has a range of refrigerators with gas capacity running from a few kgs up to several tonnes. The ships also have air-conditioning plants with fixed gas detection systems augmented by regular handheld detector monitoring by Ventilation Officers. (EN19)

The Technical Department is tasked with finding the most appropriate refrigerants to keep the ships comfortably cool and the foodstuffs chilled or frozen and this means phasing out those most harmful to the environment. (EN19)

NEW DIMMER SWITCHES FOR FANS HELP REDUCE FUEL CONSUMPTION

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SUSTAINABILITY REPORT 2013 | ENVIRONMENTAL ISSUES

FEWER SPILLS AND LEAKS

There were just four oil or oily water spills or suspected leakages from Carnival UK ships in 2013 compared with nine in 2012. All were relatively minor with three reported on Adonia (P&O Cruises) and the other on Azura (P&O Cruises). On Adonia, two litres of hydraulic oil was lost in Olden (Norway) harbour due to a faulty hose on a tender platform door and between a quarter and half-litre of MGO fuel was spilt during the refuelling of tenders at the same port. There was also a suspected oil leak in the port stabilisers while about 500ml of MGO was lost from Azura due to a dislodged seal. (EN23). None of these incidents was serious enough to incur a fine or other legal penalty. (EN28)

There were four reported discharges of black or grey water in 2013 (eight in 2012) that were in breach of company requirements. These included the accidental discharge of 18m3 of pool water from Arcadia (P&O Cruises) in the Russian port of St Petersburg; a power failure-prompted discharge of treated sewage and grey water from Oriana (P&O Cruises); and the discharge of grey water from Ventura (P&O Cruises) within four nautical miles of land. All were investigated and appropriate performance management was instigated where individuals were involved. (EN23)

In November 2013, both of Adonia’s sewage treatment plants failed and this resulted in the discharge of untreated sewage while they were repaired. This took place in accordance with international regulations well away from land.

There were also five incidents in 2013 where small quantities of stores ranging from potatoes and dairy produce to mattresses were lost overboard during the loading of various Carnival UK ships in Southampton harbour. (EN23)

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fig.7Ozone Depleting Potential

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fig.6Refrigerant gas lost

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fig.5CO2 Emissions per ALB

A reduction in the time Carnival UK brand ships spent in ECAs and Sulphur Emissions Control Areas (SECAs) caused a modest (11%) rise in sulphur oxide (SOx) emissions from Carnival UK operations but the 6,325 tonnes total for 2013 was still 36% down on 2008. (EN20) (fig. 8)

The long term trend is downward, partly due to the introduction of new ships with engines compliant with MARPOL Annex VI requirements to reduce NOx and SOx and to a steady reduction in fuel consumption. (EN20)

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fig.8SOx Emissions

LONG TERM TRENDS FOR FALLING EMISSIONS

20 21

The impact of the reduced mileage covered by the ships and the allied reduction in fuel consumption levelled out in 2013 when there was just a 1.3% decrease in bilge water, most of which is generated by the services powered by the main engines. This compared with the dramatic 23% fall in 2012. There was, though, another increase (up 18%) in bilge water generated per nm travelled following 2012’s 38% rise. (EN21)

In the discharge of treated and untreated black, grey and ballast water, Carnival UK meets or exceeds all international and national recommended standards and requirements. All its ships have IMO-approved sewage treatment plants including membrane bio-reactors which are more efficient at removing pathogens such as E-coli. Although, in one of the trade-offs which are prevalent in the emerging environmental problem-solving technology sector, they use more energy in so doing. (EN21)

All bilge water discharged into the sea is first processed by MARPOL-approved separators while that discharged ashore is done so during overnight berthing and/or in areas where it is a local authority requirement. There is no international legislation restricting the discharge of grey water (collected from laundries and showers) at sea but Carnival UK ships conform to local restrictions and discharge at least 4nm from shore and when travelling at six knots or more. (EN21)

Some advanced waste water treatment systems (AWWTS) can also treat grey water and this has led to significant increases – 63% in 2011 and 71% in 2012 – in the amount of treated grey water discharged at sea. But there was again a levelling off in 2013 which saw a small (3%) increase alongside a 42% increase in the amount discharged ashore. The amount of untreated grey water discharged into the sea increased marginally (0.7%) while the amount discharged rose by more than a third (37%). (EN21)

The ships continue to comply with the specific requirements to discharge ashore at ports such as Quebec and Montevideo which are aiming to protect estuaries and other coastal zones. (EN21)

Although MARPOL regulations allow treated sewage to be discharged more than 3nm offshore, Carnival UK ships will discharge this, whenever possible, more than 12nm from shore and again when the ship is travelling at six knots or more. (EN21)

Carnival UK’s Ballast Water Management Plan conforms to the relevant IMO Ballast Water Convention and any differing host nation requirements. When a ship cannot comply with a national requirement, it seeks permission to discharge. During 2013, 430,616 (444,763 in 2012) tonnes of ballast water were discharged at sea and zero (799 in 2012) tonnes ashore. (EN21) In an ongoing process, Carnival UK is reviewing commercially available, IMO type approved Ballast Water Treatment Systems to determine which might be suitable to fit to the fleet. (EN21)

Carnival UK is also engaged in the “No Special Fee” agreement with HELCOM, playing a significant role in developing wastewater characterisation and quantification for the Baltic States so that they can assess whether they are ready to request that the Baltic Special Area be enforced by IMO. The Baltic suffers with the particular problem of eutrophication (an excess of nutrients which encourage algal blooms and subsequent de-oxygenation leading to marine life mortality). (EN12)

Although the ECC has calculated that cruise ships and ferries are responsible for less than 0.1% of nutrients (nitrogen and phosphorous) in the Baltic (verified by a separate study by Finland’s VTT Technical Research Centre), Carnival UK CEO David Dingle has committed Carnival UK ships to discharging all sewage (treated and untreated) ashore within the Baltic Sea area where there are adequate reception facilities. (EN12)

SAVING AND PRODUCING WATER

There was a 4% reduction in water consumption on board Carnival UK ships during 2013 and, when calculated on a per-person basis, the decrease rose to 5%. This was due to a range of water-saving initiatives implemented fleetwide in recent years. (EN8)

For the second successive year, there was a drop in the amount of water produced on board with the 1,993,663 tonnes representing an 8% fall while the amount of water taken on board from shore supplies rose 15% to 485,436 tonnes. But this still meant that the ships were producing – on average – 80% (84% in 2012) of the water used. (fig. 11) It was only 65% in 2008 so there has been a significant reduction in the impact on shoreside supplies which can be under severe pressure in some locations. (EN8)

Water is produced on board by reverse osmosis and by the use of waste engine heat within an evaporation process and each ship can make its own potable water to recognised drinking water standards with none of the feed-water drawn from areas that may be contaminated or at risk of infection. (EN8)

Water focus groups are set up to share best practices in water management around the fleet and there is a monthly water conservation conference call process designed to initiate specific measures to reduce consumption by passengers and also in technical areas. (EN8)

WASTEWATER DISPOSAL IS NO GREY AREA

There was a 0.8% reduction in the amount of grey water generated on board Carnival UK ships during 2013. This compared with the 4% rise in 2012 with the number of litres generated per POBD (Passenger On Board Day) dropping from nearly 168 to just over 164. (fig. 12) (EN21) Black water also decreased – by 3.4% – from 77.5l to 74.9l per POBD. (EN21)

SUSTAINABILITY REPORT 2013 | ENVIRONMENTAL ISSUES

A substantial contribution to hazardous waste landings comes during ship refits. (EN22)

Of the incinerated hazardous waste, most constituted oily rags and medical waste although all sharps (scalpels, hypodermic needles etc) are landed ashore in secure containers along with other hazardous waste (typically consisting of chemical waste and acidic boiler washdown water) for disposal by licensed contractors. (EN22)

The largest non-hazardous waste stream landed ashore is general non-compacted garbage not burnt in the ship incinerators as it is not possible to incinerate all dry waste due to the logistics involved with turnaround days and restrictions on when incinerators may be run in port. (EN22)

Incinerator ash is, though, the second largest waste stream while plastics are segregated and compacted for land disposal. Other hazardous waste landed ashore for recycling typically includes used batteries – some from emergency generator rooms on the ships – waste electrical equipment and crushed glass. (EN22)

Routine sea discharges of black, grey and bilge waters are – like food waste – made at distances beyond MARPOL requirements and the company’s ships avoid all discharges in protected areas such as marine nature reserves, fisheries zones and coral reefs. Crews also have guidance on whale avoidance in the migration routes of endangered species (such as the North Atlantic Right Whales) along the US East Coast and in the Ligurian Sea. (EN12)

GENERATING LESS HAZARDOUS WASTE

For the second successive year, there was a significant reduction in the amount of hazardous waste generated on board Carnival UK ships. In 2013, the total fell nearly 20% to 7,844 tonnes. This followed a 17% drop in 2012. Once again, the bulk of it – 88% (87% in 2012) – was recycled while an increased share of it was incinerated: 1.7% compared with 1.1% in 2012. The rest was disposed of ashore as none is ever discharged at sea. (fig. 9) (EN22)

After a near-11% increase in non-hazardous waste in 2012, there was a 2.5% reduction (to 94,689 tonnes) in 2013 which meant a 12% decrease over just three years. The share of this being incinerated on board remained steady at 71% while that being recycled grew from 2.4% to 4.3%. (fig. 10) (EN22)

After a blip in 2012, food waste has continued to decrease so that the 2013 total (down 27% on 2012) represents only slightly more than half the 2010 total. This has been achieved through on-board initiatives to reduce galley wastage and over-ordering of food stores. (EN22)

Food waste on the ships passes through a pulper system which macerates it before it is discharged more than 12nm (nautical miles) from shore. This is more than the statutory limit of 3nm but the volume of food waste generated by a cruise ship is clearly significantly higher than that of non-passenger ships so Carnival has taken the decision to go the extra mile or – to be more precise – the extra nine. (EN12)

Wherever possible, waste is recycled but waste collection facilities do vary widely from port to port so it is not always clear how much is being effectively recycled. As a result, the company remains conservative in its estimates. (EN22)

In 2010, it also changed the way it collected and reported data on waste so that it could provide a more accurate picture of its waste streams. This means that – in this area – comparisons with previous years are limited – so far – to 2010-2013. (EN22)

Oil sludge represents by far the greatest quantity of hazardous waste landed ashore and – given that all of this is either reprocessed or the energy from it recovered – Carnival UK decided from 2010 onwards to classify it all as being recycled and so it accounts for 98.5% of all recycled hazardous waste reported by the company. (EN22)

The amount landed is linked directly to the utilisation of the main engines on the ships as it is created by the fuel purification process. This explains the reductions in 2012 and 2013 as there was a decrease in fuel consumption during both years. (EN22)

1.7% Incinerated

10.3% Disposed of ashore

88% Recycled

fig.9Hazardous Waste

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2011 – 87,468 tonnes

fig.10Non-Hazardous Waste

201320122011

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2013grey water 164 l

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fig.12Wastewater (litres per POBD)

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2013taken on board 485,436 tonnes

2012taken on board 423,477 tonnes

2013generated on board 1,993,683 tonnes

2012generated on board 2,160,302 tonnes

fig.11On board water

2012 2013 2012 2013

Generated on board

Takenon board

22

Carnival UK

As part of Carnival UK’s commitment to improving environmental performance, it has defined specific environmental aims and objectives in order to ensure these can be effectively managed. (EN5)

In setting these targets, other factors have been taken into consideration as well as the prevailing and prospective legal and regulatory requirements and the company’s own financial, operational and business requirements. (EN5)

These included current environmental policy and performance, the available technological options, communications from interested parties and recommendations for environmental performance improvements. (EN5)

The results of the objectives relating to fuel reduction, water consumption and refrigerant gas consumption have been detailed earlier but one of the other key objectives is to maintain the EMS (Environmental Management System) and ensure all ships remain compliant. (EN5)

The current EMS complies with the most widely-recognised standard: ISO 14001 (developed to help organisations manage their processes, products and services to minimise environmental impact). (EN5)

Having originally received certification from the UK Maritime Coastguard Agency (MCA), Carnival UK switched external certification to Lloyds Register QA in June 2008. This enables the company to look both inwardly and externally to develop policies in a systematic way based on how its operations interact with the environment. (EN5)

The company has also been working to increase its recycling effort including through specific initiatives – such as the already mentioned one with Veolia Environmental Services– to increase the amount of used cooking oil recycled. (EN5)

Also, for every tonne of high quality office paper recycled, 17 trees and 32,000 litres of water are saved and there is a reduction of 27kg in air pollutants while enough electricity to heat the average home for six months is conserved. (EN5) (fig. 13 - overleaf)

Carnival UK has also started to collect data on what is achievable on board in order that benchmarks can be set. (EN5)

ENVIRONMENTAL PLAN

23

24 25

SUSTAINABILITY REPORT 2013 | ENVIRONMENTAL PLAN

The on board hotel department has a wide range of operational initiatives to reduce consumption, waste, and emissions.

THESE INCLUDE:IN THE AREA OF ACCOMMODATION:

Passengers are encouraged to conserve water by re-using towels so that they are washed periodically rather than daily. Those in balcony cabins or suites are also asked to keep the balcony door closed to reduce the call on air conditioning. As another way of reducing energy use within the accommodation, cabin entry/cruise cards which double as cabin power cards have been introduced on the newest ships – Azura and Queen Elizabeth. (EN5)

A range of measures to reduce water usage are also in place from water flow resistors in showers which cut water flow by up to 50% to magic eye taps, the re-use of rinse water in the main laundries to an Evac toilet system which uses two instead of the usual seven litres of water in each flush. (EN5)

IN FOOD AND BEVERAGE:

A new Meal Counts system, which provides a constant real time overview of production compared to orders,assists in forecasting consumption and thereby reduces food waste. (EN5)

About 85% of seafood comes from sustainable sources i.e. fisheries with sourcing practices which can be maintained indefinitely without reducing the target species’ ability to maintain its population and without adversely impacting on other species within the ecosystem by removing their food source, accidentally killing them or damaging their physical environment. (EN5)

More local produce is being sourced from suppliers at or close to home and transit ports. This reduces fuel consumed and emissions created during the delivery process. (EN5) Products are targeted which come without or with reduced plastic packaging. (EN5)

IN OTHER AREAS:

The hotel department monitors an increasingly wide-ranging no-smoking policy; is ensuring garbage separation; the recycling of toner cartridges and batteries; the reduction in the use of chemicals during cleaning and the screening of all chemicals used on board; refers to a chemical information database to prevent use of any unauthorised chemicals and reduce the use of chemicals containing phosphates; and the minimising of flight times, durations, and distances involved in crew repatriations and joining through strategic crew changes driven by itinerary. (EN5)

There is also a Hotline through which staff and passengers can report their concerns and observations on environmental or any other compliance matters to Carnival Corporation & plc. (EN5)

CRUISING KEEPS IT GREEN AND CLEAN

Passenger shipping is just a small part of the international shipping fleet with just 7% (6,912) of the global fleet of more than 100,000 vessels. In tonnage terms, it is even smaller at 4%. So cruising, with 300 or so ships is a tiny sector to which Carnival UK (P&O Cruises and Cunard) contributed 10 ships in 2013.

It is also the case that, in some cruising destinations, regular cruise ship visits reduce the pressure on locations to provide additional hotels and the associated power, water supply and treatment plus the level of transport infrastructure that would be necessary to support the extra demand of longer-staying tourists. (EN26)

Nevertheless, cruising is subject to a wide-ranging and ever-expanding raft of operational restrictions and requirements introduced not just internationally but also locally and regionally.

The Baltic Sea and North Sea now have an offshore Sulphur Emissions Control Area (SECA) where a new 1% limit on sulphur (SOx) came into force in 2010 which will reduce to 0.1% in 2015. (EN12)

A North American Emissions Control Area (ECA) became effective in August 2012 with similar SOx and further NOx limits while the EU has its own directives on SOx emissions which, since 2010, have been limited to 1.5% at sea for passenger ships on “regular” service (which may or may not be interpreted as including cruise ships) and 0.1% in port or at anchor. (EN26)

fig. 13 For every tonne of high quality office paper recycled by Veolia, 17 trees and 32,000 litres of water are saved. (page 23)

BUILDING AND OPERATING EVER-MORE EFFICIENT SHIPS

The IMO is introducing several voluntary measures to encourage energy efficiency in the building of new ships and in the operation of existing ships. Using best shared practices, these include: the Energy Efficiency Design Index (EEDI) for newbuilds – a measure of ships’ CO2 efficiency calculated by an environmental cost-benefit formula; the Energy Efficiency Operational Indicator (EEOI) for existing ships and, also for existing ships, the Ship Energy Efficiency Management Plan. Carnival UK has supported and taken part in the development of all these initiatives. (EN6)

Carnival UK – as part of the Carnival Group – has also been registering its carbon emissions and activities designed to reduce those and other emissions to the Carbon Disclosure Project (www.cdproject.net) since 2004.

Each of Carnival UK’s ships continues to be awarded the Venice Blue Flag for voluntarily agreeing to use low sulphur fuels when visiting the city. (EN12)

ON-BOARD PUBLIC HEALTH AND SANITATION

The US Vessel Sanitation Program public health inspection of visiting cruise ships is widely considered the most stringent sanitation inspection and, during 2013, five ships were inspected (one twice) and the scores ranged between 89 and 97, with a perfect score being 100. (PR2) Along with compulsory Ship Sanitation Certificate Inspections, all ships in the Carnival UK fleet passed every public health and port health inspection world-wide in 2013. This demonstrates Carnival UK’s ongoing commitment to the health and wellbeing of all those sailing on its ships. ENERGY-SAVING DESIGN CONTINUES TO PAY OFF AT CARNIVAL HOUSE

During 2009, Carnival UK staff in its various Southampton offices began moving into the new Carnival House (also in Southampton) which has become its sole office headquarters in the UK, reaching full occupation in July 2010. Energy-saving was a key element in its design and in its ongoing operation.

The call centre uses HP terminals and Citrix, saving power and facilitating support. This also saves on energy use which, in turn, lowers the demand on the office air-conditioning and reduces the need for maintenance and support. (EN16)

Desktop printers, scanners and 30 photocopiers were replaced with 36 centrally-managed `follow-me’ multi-function devices (MFDs), combining privacy with the elimination of wasted print-outs. These automatically shut down after a period of non-use. (EN6)

Each floor has eight printers and the fact that staff have to walk to use them (they are required to be at the printer when initiating a print-out) also reduces unnecessary printing while the use of Quitrac print management software enables the company to monitor exactly what is being printed. (EN6) (fig. 14)

Along with measures to control the amount of colour as opposed to black and white printing, these changes have contributed to a significant drop in energy use as well as that of paper and other consumables.

The datacentre itself was virtualised and consolidated, reducing 150 servers to just 15, once again with associated power, management and cost benefits. (EN6)

The same external company – Externus – which had advised on the IT service and support improvement programme conducted an eight-week assessment to help Carnival UK create a green IT strategy roadmap. (EN6)

This concluded that a combination of the changes already made and other improvements identified in the assessment would deliver not just a £1.4m return on investment over five years but a reduction in the projected IT-related carbon footprint of more than 50%. (EN6)

The IT department accounts for more than a third of the office building’s carbon emissions and about half of this was required for cooling the datacentre. The assessment report recommended that the temperature of the datacentre and secondary equipment rooms be raised to 25-26C because modern equipment does not need to run at the more traditional 18-20C. This has led to a significant drop in energy use. (EN6)

Forest Stewardship Council (FSC) European oak was used on all veneered surfaces and more than 50% of the materials used to produce the carpet tiles is recycled. (EN26)

Desks are made from 34% recyclable material without any chrome, mercury or lead and are, in themselves, 99% recyclable as they conform to the manufacturer’s Eco-design “golden rules” which cover their environmental impact over their entire lifecycle. (EN26)

The energy and waste management processes put in place contributed towards a BRE Environmental Assessment rating (BREEAM) of “Very Good”. (EN6)

fig. 14 Staff are required to be at the printer when initiating a print-out which helps reduce unnecessary printing

SUSTAINABILITY REPORT 2013 | ENVIRONMENTAL PLAN

26 27

The heating and cooling system is provided via the Southampton District Heating Scheme which – as a geothermal aquifer – replaces the need to have chillers and boilers. (EN6)

All office lighting lamps (with the exception of safety lighting) are energy efficient and programmed to turn off after a period without nearby movement. Display lighting is LED which uses minimal electricity. (EN6)

The preferred catering contractor uses devices to minimise electricity supply to appliances such as fridges and freezers. (EN6)

The building management system enables flexibility in controlling the amount of lighting as well as air conditioning required in both the office and common areas while automatic taps in the washrooms minimise water consumption. (EN6)

For waste management, banks of recycling bins replace individual office bins and waste is separated into landfill and mixed dry recyclable (paper, cardboard, plastics – including vending cups and aluminium). Shredders are located in each of the floor hubs and MFDs print double-sided copies unless specifically requested otherwise. (EN26)

The catering contractor uses sustainable food suppliers and the company works with the refuse contractor on a monthly basis to reduce waste volumes and ensure responsible disposal. Food waste is incinerated to generate electricity for the National Grid and food packaging has been reduced. Environmentally friendly cleaning products are used throughout the building. (EN6/EN26)

Carnival UK also runs a Cycle to Work scheme to help reduce the number of vehicles coming into the city and this also brings a variety of benefits to its employees including increasing their general health and wellbeing. (EN26)

SUSTAINABILITY AND ENVIRONMENTAL REPORTING

Carnival Corporation & plc has been issuing Corporate Environmental Management Reports annually since 2005. This has not, though, precluded the individual brands and companies within the organisation (including Carnival UK) from producing their own annual sustainability reports.

Forest Stewardship Council (FSC) European oak was used on all veneered surfaces and more than 50% of the materials used to produce the carpet tiles is recycled. (EN26)

28 29

No operations have been identified as having a significant risk of child labour as Carnival UK shoreside employs no-one under the age of 18, with successful job applicants’ passports being checked to confirm age and eligibility to work. Anyone under 18 – including those on unpaid work experience – is subject to a Young Person’s Risk Assessment and Young Person’s induction. (HR6)

GOING OUT TO SEA

With a 24% turnover, there was a significant (7%) increase in Carnival UK seagoing employees from 14,410 at the end of 2012 to 15,467 as at 30 November 2013. (fig. 17) (LA1) Of the total staff, nearly 65% were Asian, 28% from the UK and Europe with the rest from Australia, North, South and Central America. (fig. 18) (LA1/LA2)

For its fleet operation, Carnival UK recognises several trade unions for collective bargaining purposes. These include Nautilus International; the National Union of Rail, Maritime and Transport Workers; Federazione Italiana Transport – CISL; the International Transport Workers Federation and the National Union of Seafarers of India but the company does not prevent individuals from joining any trade union. (LA4/HR5)

Of Carnival Corporation & plc’s total worldwide fleet employees, 9% (3.9% for Carnival UK brands) are covered by collective bargaining agreements (LA4). In line with the 1999 Employment Relations Act, Carnival

UK also recognises trade unions for representation purposes even when the crew member is not covered by a CBA. (LA4/HR5)

Notice periods range from 30 days to three months but the company always aims to provide notice in line with best practice according to the potential impact of any change. In the event of significant operational changes, the company also consults and informs staff in line with their contract or CBA. (HR5)

All crew members receive a contract outlining their terms and conditions which they sign to demonstrate their agreement to these terms and, following an analysis of activities, no operations have been identified as having a significant risk of forced or compulsory labour. (HR7)

It is company policy not to employ anyone under 18 and, to ensure this is the case, applicants’ passports are checked to confirm their age and eligibility to work.

Similarly, no operations have been identified as having a significant risk of forced or compulsory labour. All new employees are provided with a contract which they are asked to sign and return prior to starting work in order to demonstrate their agreement to the terms and conditions it contains. (HR7)

30

Social performance

Carnival UK shoreside staff numbered 1,324 on 30 November 2013 (1,209 at the end of the company’s previous fiscal year) (fig.15). Of these, more than 87% were full-time. Of the total, 60.6% (61.6%) were women and 39.4% (38.4%) men. (fig.16) (LA1)

Staff turnover during the year was 19% compared with just short of 15% for each of the two previous years. (LA2)

Trade unions are not recognised within the shoreside operation so no staff are covered by collective bargaining agreements but – in accordance with the Employment Relations Act 1999 – Carnival UK offers employees the right to be accompanied by a trade union representative or work colleague to formal meetings held under the company’s policies and procedures. (LA4/HR5)

Similarly, there is no formal management-worker health and safety committee monitoring and advising on occupational health and safety programmes. (LA6) But Carnival UK aims to optimise the safety and environmental health conditions in all its workplaces, putting in place all necessary occupational disease and injury prevention measures and being ready to adopt any new measures required to prevent all emergencies. (LA6)

It is also committed to providing adequate health and safety training for its shoreside employees. All prospective employees undergo a medical examination of their fitness to do the work for which they are being hired and then have regular check-ups. (LA6)

All shoreside employees are included in a Health Monitoring Plan defined by a contracted physician on the basis of the periodically-updated Risk Assessment Document. They are also covered by the Carnival UK Health, Environment, Safety and Security (HESS) committee. (LA6)

In 2013, there were 36 injuries (13 in 2012) to shoreside staff – none of them reportable to the HSE regulator and no work-related fatalities. (LA7)

The 6,040 (5,940 in 2012) working days lost in 2013 due to sickness absence represented just under 2% of total working days. (LA7)

Figures for frequency and gravity of accidents and occupational diseases were reported against UK legislation. To ensure that employees have a channel through which to make complaints, Carnival UK has a Grievance Policy and Procedure in place. (LA7)

EMPLOYMENT RULES AND RIGHTS

There is also a Disciplinary Policy and Procedure which clearly defines discriminatory practices as constituting gross misconduct. All employees are informed of these policies and procedures when they join the company and they are accessible in full on the intranet. (HR4)

There were just two complaints of discrimination in 2013 compared with 10 in 2012 and neither – as one did in 2012 – resulted in further action after being followed up by the Employee Relations Team. (HR4) Carnival UK complies with the 1996 s.86 (1) Employment Rights Act by committing to informing and consulting employees of significant operational changes within the following notice periods: one week, if the staff member has been in continuous employment with the company for between one month and two years rising by a further week for each year of continuous employment between two and 12 years to a maximum of 12 weeks for 12 years or more of continuous employment. (LA5)

Where an individual’s contract of employment entitles them to additional notice periods, these extended notice periods would be adhered to. At present, notice periods within Carnival UK range from one week to 12 months however the company would always aim to provide notice in line with best practice according to the potential impact of the change. (LA5)

STAFF NUMBERS UP 10% IN 2013

31

SUSTAINABILITY REPORT 2013 | SOCIAL PERFORMANCE

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fig.15UK Shoreside staff numbers

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UK & Europe – 28%

Asian – 65%

fig. 18Shipboard sta� nationality split

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fig.17UK Seagoing staff

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Men – 39.4%

Women – 60.6%

fig. 16UK Shoreside staff gender split

32 33

In 2007, the company reviewed the service that was being provided to passengers in those unusual circumstances which include medical or family emergencies or accidents ashore. As a result, the Customer Care team was created to enhance that service.

This comprises firstly a team of office-based staff at Carnival House, Southampton, who are dedicated to working with passengers who find themselves in difficult situations. In 2013, there were 995 (1,047 in 2012) passengers landed from Carnival UK ships for medical or compassionate reasons, along with 606 crew (293 in 2012 – part year only as new processes started mid-year). The drop in passenger numbers is related to Princess Cruises now managing their own passengers.

The Customer Care office focuses on supporting such passengers and, of course, their families through these difficult and often stressful events. They follow up with passengers, their insurance companies and friends and families at home to ensure that they are getting the best service possible.

Often all that they need is a friendly voice at the end of the telephone, someone who they know they can reach at any time of the day or night which is precisely why the Customer Care Office provides a service seven days a week, 365 days a year.

About 200 people from the office-based Carnival UK team have also been trained to be able to drop whatever they are doing and travel to passengers around the globe to offer them assistance in situ. They have had specialist training in how to respond to people who have experienced some kind of unusual or traumatic event. Sometimes their support extends to accompanying family members of the passengers involved in the medical incident when they return home.

They are all volunteers drawn from across the organisation from reservations to the main board directors. They also form part of a 2,000 strong Care Team from across the Carnival Corporation brands. A further 2,000 officers and crew of the Carnival UK ships have also had the same training.

As is the case for shipboard employees and is now corporate Maritime Policy, injuries sustained by passengers must be reported to Carnival Corporation & plc MP&C when they occur anywhere on board ship, while on a shore excursion sold by the company or when ashore independently.

Passengers with pre-existing medical conditions are advised to verify with their doctors that they are well enough to travel and, if so, provide details from their doctor about any recent special treatment or investigations they have been receiving as well as any recent related test results.

They are also advised to check with the doctor (or public health travel advisory service) about specific vaccinations and health precautions for ports of call on their chosen itinerary.

Passengers who will be in their 24th week of pregnancy during the cruise will not be accepted for travel. If they are earlier in their pregnancy, they are advised to alert Reservations at the time of booking. Similarly, those using electric medical equipment, oxygen or who are on peritoneal dialysis should notify the cruise line in advance.Low sodium, low-fat, low-sugar and vegetarian diets can be provided on board but other dietary needs, allergies or medical requests must be submitted in writing in advance of the cruise.

Each Carnival UK ship has comprehensive policies in place to help prevent and control outbreaks of Norovirus and respiratory viruses.

SUSTAINABILITY REPORT 2013 | SOCIAL PERFORMANCE

All doctors and nurses take part in a monthly professional development programme with regular drills for specific medical emergencies.

safety and security throughout all business activities. All incidents are promptly reported and investigated and the appropriate action taken to prevent recurrence. (LA7)

TAKING CARE OF PASSENGERS AND CREW

Depending on the size of the ship and the length of the itinerary, the on board medical team will include one or two doctors and between two and four nurses. They operate twice daily clinics for routine cases but are on call 24/7.

The aim of the medical teams on board Carnival UK ships is to provide quality medical care for both passengers and crew. This includes initiating appropriate stabilisation, diagnostic and therapeutic measures for critically ill or medically unstable patients. The medical teams are able to manage fractures as well as carry out minor surgical procedures.

The medical centres on Carnival UK ships are equipped for a range of clinical testing from Legionella to HIV and patients generally receive the results within 30 minutes. All also have x-rays using computerised radiography which, by scanning the image into a computer for digital viewing, eliminates all hazardous chemical wastes.

All doctors and nurses take part in a monthly professional development programme with regular drills for specific medical emergencies.

Carnival UK ships’ medical services have been certified to ISO 9001:2008.

A passenger or crew member may need to be landed to a shoreside facility for specialised care and, although usually effected during a port call, in an extreme emergency an at-sea transfer to a helicopter or boat will be carried out. This, though, will depend on the patient’s condition, distance from land, and sea and weather conditions. It would be handled by the on board medical team and – if the patient has valid travel insurance – an assistance company. Once ashore, responsibility for monitoring the patient switches to the shoreside medical department and the brand’s Customer Care team.

At any one time Carnival UK can have as many as 23,000 passengers on board or travelling to or from its ships and there are always going to be occasions when they will require further support from the company above and beyond the safe and successful operation of the cruises they have booked.

The only exception to this policy is for officer trainees within the Deck and Technical department where Carnival UK does consider applications from under-18s but will only offer them employment if they have parental consent. Such individuals are governed by Chapter 2, part 3 Merchant Shipping Act 1995. (HR6)

A complaints procedure is in place and all crew members are made aware of the company’s Harassment, Discrimination and Retaliation Policy and are given a copy of the company’s Code of Conduct in which discriminatory practices are clearly defined as constituting gross misconduct. During 2012, ten complaints of discrimination were made either through the formal grievance route or via the Complaint Hotline. The incidents were reviewed and investigated by the company’s Employment Relations Team following which there was no further action taken in nine of the ten cases. (HR4)

All shipboard workers are covered under the Carnival UK Health, Environment, Safety and Security Committee (HESS), which – on board the ships – comprises the Captain (chair), Deputy Captain (the ship’s statutory Safety Officer), Staff Chief Engineer, Passenger Services Manager, Food & Beverage Manager, Senior Doctor, Environmental Compliance Officer, Cruise Director, Security Officer, Personnel & Development Manager and a secretary (minute-taker) plus elected representatives from the Hotel General Administration, Technical, Deck, Food & Beverage, Accommodation and Entertainment departments. (LA6)

All prospective employees undergo a medical examination of their fitness to do the work for which they are being hired. These medical examinations must be periodically renewed, in accordance with maritime legislation. (LA6)

In 2013, there were no fatalities due to accident or injury among the shipboard crew and staff but there were 187 injuries compared with 237 in 2012 and 261 in 2011. Of the 187, 84 were considered “major” or “serious” with 103 reported as “minor”. (LA7)

These figures were recorded according to ILO 155 (Occupational Health & Safety Convention and Protocol 1981): the ILO Code of Practice on Recording and Notification of Occupational Accidents and Diseases 1995; ILO Guidelines on Occupational Safety and Health Management Systems 2001; and reporting requirements as per Carnival Corporation & plc Maritime Policy & Compliance (MP&C). (LA7)

Carnival Corporation & plc and its operating lines, including those within Carnival UK, are committed to complying fully with – or sometimes exceeding – all legal and statutory requirements related to health, environment,

SUSTAINABILITY REPORT 2013 | CORPORATE RESPONSIBILITIES

Our corporate

As part of the industry leader Carnival Corporation & plc, Carnival UK recognises its responsibility to conduct business as a responsible global citizen committed to achieving and maintaining the highest standards of professional and ethical conduct. (SO3)

It has its own Ethics Committee (chaired by its General Counsel), which draws its members from across the business. This committee is responsible for the oversight of anti-corruption matters, including the assessment and mitigation of risk and the adoption of a proactive approach within the Carnival UK business. This includes an extensive programme of both face-to-face and computer-based training both on its ships and ashore. All required personnel completed the training. (SO2)

The computer-based training programmes run over a two-year cycle which sees all employees trained in the company’s Code of Business Conduct and Ethics. Selected employees in relevant positions are trained in Antitrust, Anticorruption, Insider Trading, Export Controls/Anti-Money Laundering, and Whistleblower Protection (all employees are made aware of the company’s Compliance Hotline and other routes through which any concerns can be reported with impunity from reprisal). Other selected employees also receive face-to-face ethics and anti-corruption training covering certain issues in greater detail. (SO3)

All senior employees are annually required to complete a Business Ethics Disclosure Form on which they either certify compliance with all applicable policies (including re-notifying any potential conflicts of interest that have previously been approved under the policies) or disclose any instances of non-compliance. (SO3)

Carnival UK employees receive at least annual reminders of the company’s Code of Business Conduct & Ethics

(which requires all of them (including board members) to use sound judgment, maintain high ethical standards and demonstrate honesty in all business dealings) and of its Reporting of Improprieties Policy. (SO3)

The company also manages reputational risks arising from corrupt practices by business partners through well-defined policies and supporting procedures. These include specific steps for ensuring the effective deployment of these policies and procedures by employees, suppliers and business partners. Robust business processes exist which are designed to detect, report and effectively address any instances of corruption that do arise. (SO8)

In 2013, there were no significant fines or non-monetary sanctions levied against Carnival UK for non-compliance with laws. (SO8)

PROTECTING DATA AND PRIVACY

Carnival Corporation & plc has established standards and guidelines to be observed by Carnival UK in its privacy programmes. Based on these, Carnival UK has developed extensive policies, procedures and put safeguards in place for the protection of personal data and privacy. These guide the way personal information is collected, used, shared, safeguarded and disposed of during the normal course of business. Responsibility for ensuring compliance lies jointly with the Legal and IT departments with the company’s General Counsel acting as Privacy Officer. (PR8)

RESPONSIBILITIES: COMMITTED TO DOING BUSINESS THE ETHICAL WAY

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SUSTAINABILITY REPORT 2013 | CORPORATE RESPONSIBILITIES

In addition, Carnival UK has developed training for employees to create and maintain awareness of its privacy practices. (PR8)

Carnival UK has also developed a privacy incident response plan designed to address incidents of unauthorised access to, disclosure or use of personal information which it – or its service providers – will maintain. (PR8)

From 2010, Carnival UK has been annually reviewing the adequacy of its privacy programme addressing – for example – the estimated losses incurred by the company or its customers due to breaches, the training status of employees and any attempted and actual unauthorised access to personal information and the management response. (PR8)

In 2013, there were no substantiated complaints regarding breaches of customer privacy or loss of customer data. Such complaints are handled by the company’s Legal department and – where appropriate – the Privacy Incident Response Plan is implemented. (PR8)

The training offered comprises of the following modules:

Module For Who? When? Duration Description

Company Induction Day Shore

All staff invited within the first 8 weeks (P&O Cruises and Cunard)

8 hours • Provides new employees with key information on Carnival Corporation

• CUK board structure and specific detail on the CUK brands

• Gives useful information from HR, IT and Facilities departments

elev8 Module 1 ‘Introducing elev8’ Shore

All staff invited within the first 8 weeks (P&O Cruises and Cunard)

Half day (5 hours)

• Introduction to elev8 principles • Highlights importance of achieving company

mission, vision and objectives • Focuses on adopting a customer centred culture

elev8 Module 1 ‘Introducing elev8’ Ship

All new staff to fleet that were unable to attend shoreside (P&O Cruises and Cunard)

30 minutes As above

elev8 Module 2 ‘Enabling Leadership’ Shore

Supervisors, middle managers and team leaders

2 days(16 hours)

• Focus on using various tools to help them to become a more enabling leader

• Gives individuals an understanding of how to engage their team members and drive forward business priorities

elev8 Module 2 ‘Enabling Leadership’ Ship

All officers on board (P&O Cruises and Cunard)

8 x 90 minute sessions (12 hours)

As above

elev8 Module 3 ‘Coaching for Change’ Shore

Supervisors, middle managers and team leaders (currently shore based only)

2 days (16 hours)

• Enables individuals to focus on their own leadership style and the impact this has on their teams

• Leaders go away with the knowledge to enable their teams to make changes and work more effectively

• Focus on developing effective coaching and feedback techniques

elev8 Module 3 ‘Coaching for Change’ Ship

Senior management team

2 days (16 hours)

As above

Shore Appraisal Training Shore

Shore managers and their team members

7 hours • Understanding appraisal process • How to set SMART objectives • How to have effective two way appraisal

discussions • How to give and receive constructive balanced

feedback

Officer Appraisal Training Ship

All fleet based crew (P&O Cruises and Cunard)

3 sessions 4.5 hours

• Session 1 - Intro to officer appraisal process • Session 2 - How to set areas of job focus and

identify development areas with office behaviours • Session 3 - Listening, questioning and feedback

Leading for the Future Ship

Senior management team

83.5 hours • Core skills in setting objectives, giving feedback (on tasks and behaviours), and courageous conversations

• Focussed on the importance of using these skills to lead others on a daily basis and to role model enabling leadership

• Highlighted the importance of two-way enabling conversations and the impact on ships’ company culture

New in this reporting year is the Leading for the Future development programme for senior management teams on board and the on-board SMT attended elev8 Module 3 ‘Coaching for Change’.

HR DEVELOPMENT

HR Development is responsible for the Carnival UK training and development of shoreside staff and leadership development of officers and supervisors on board. The vision is to: “Develop a strong and successful development culture across CUK aligned to business priorities.” The areas of focus are developing the company’s leadership capability, developing a customer focused culture, succession planning, improving performance and developing talent through a number of different interventions.

The department designs and delivers the company induction day as well as individual development sessions. Support is provided shipside with the roll out of elev8 on board and providing leadership development for officers

CUSTOMER FOCUS THE KEY

There is one core vision behind the training and development of Carnival UK shoreside staff and the development of officers and supervisors on board its ships which is the creation and maintenance of a customer-focused culture. (LA10)

The responsible department – HR (Human Resources) Development – has as its key target a strong and successful development culture across Carnival UK aligned to business priorities. This seeks to develop the company’s leadership capability, a customer-focused culture and its succession planning and development of talent through a number of different interventions. (LA10)

The first of these delivers the Carnival Induction Day which new employees are required to attend. This has been designed to provide key information on Carnival Corporation, the international and UK cruise industries, the Carnival UK board structure and details of its brands and other useful insights from HR, IT and the Facilities departments. (LA10)

through a 360° feedback tool, coaching and individual development planning sessions.

This will change in next year’s report with the introduction of the CUK Training & Development Framework which will offer a wider range of workshops.

ELEV8

elev8 is an initiative that supports the organisational development, becoming a customer centred organisation and developing our leadership capability. It is about driving forward continuous improvement and a winning culture to achieve unrivalled business success and achieving our vision of becoming “the most spectacularly successful cruise company in Britain”.

LA10 – AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE BY EMPLOYEE CATEGORY

There is one core vision behind the training and development of Carnival UK shoreside staff and the development of officers and supervisors on board its ships which is the creation and maintenance of a customer-focused culture. (LA10)

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During 2013, Carnival UK continued to invest significantly in its fleet training to maintain compliance and to increase competence.

To achieve this, the Fleet Training Academy was established, comprising Fleet Safety, Security, Deck, Technical, Environment and Hotel Training, with the aim of delivering efficient and effective training that supports Officers and Crew in providing outstanding service and ensuring that both passengers and crew remain safe and secure.

This Academy is a key platform for changing the way operational training is planned and delivered, focussing on both short term delivery, and longer term strategy and sustainability.

Whilst creating effective working practices, the key aim is to achieve a step change in the culture and attitude towards crew training as well as delivering key business initiatives.

The success of the Fleet Training Academy requires the company to:

• Put the trainee at the centre of all it does• Provide a systematic structure for identifying,

developing, delivering and measuring training • Remain focussed on a strict hierarchy of need,

embedding safety in everything it does • Make the individuals accountable for their learning • Drive personal ownership of training and career

development.

During 2013, the consolidated training matrices for both ratings and officers were published and existing safety training packages were redeveloped in a standard format to meet new legislative requirements including MLC 2006. This provides a more robust and defensible approach to training.

A Fleet Safety Trainer was appointed on board every ship, thereby better enabling CUK to meet training targets.

The company also received the STCW training delivery approvals by Flag State as it also implemented the first phase of standardising the approach to Hotel Training at all training delivery points both on board and ashore. (LA10)

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EXTERNAL TRAINING FOR SHORE-BASED STAFF

There are circumstances when external training is required. This process is managed by the HR Development team which considers the business case and benefits with the department concerned before the requested training is approved. Requests vary from IT training (which cannot be accommodated in-house) to that for professional qualifications as well as for permission to attend at conferences. (LA10)

In 2012/2013, 76 requests for training were approved. The graph (fig 19) shows the breakdown of TD1 requests that were agreed for the period 1 December 2012 to 30 November 2013 and how many each department submitted.

The majority of requests came from the Finance Department where there has been continued focus on developing staff through professional qualifications which range from CIMA (Charted Institute of Management Accountants) and ACCA (Global Body for Professional Accountants). The Medical Department requested professional training to enable staff to keep up to date with medical health conferences as well as general trauma and life support classes. IT requests were mainly based around external Software Training.

SUSTAINABILITY REPORT 2013 | CORPORATE RESPONSIBILITIES

The table below shows the number of staff attending elev8 courses and the number of hours by type of course for years 1 December 2012 to 30 November 2013. The figures below are made up of current staff, new starters or people who were promoted to a management position throughout the year with reference to modules 2 and 3 for leaders.

CourseNumber of Staff

Attended

Number of Hours / Minutes

Total Staff Hours

Company Induction Day 133 8h 1,064

Module 1 Introducing elev8 (Shore) 133 5h 665

Module 1 Introducing elev8 (Cadets) 22 5h 110

Module 1 Introducing elev8 (Ship) 1,330 0.5h 665

Module 2 Enabling Leadership (Shore) 35 16h 560

Module 2 Enabling Leadership (Ship) 211 12h 2,532

Module 3 Making Change Happen (Shore) 34 16h 544

Module 3 Making Change Happen (Ship) 36 16h 576

Shore Appraisal Training 90 7h 630

Officer Appraisal Training 63 4.5h 283.5

Leading for the Future (Ship) 68 8.5h 578

Total 2,155 90.5 8,207.5

A checklist of information has also been designed for shoreside staff which managers took them through within the first seven days of them joining the company. (LA10)

FLEET TRAINING ACADEMY ESTABLISHED

fig. 19Number of TD1 Requests

Other – 1%

Guest Air Travel / Flights – 4%

Commercial Services – 7%

Cunard – 3%

Commercial / Planning – 0%

Technical – 9%

Hotel Services & Ents – 5%

Global Purchasing – 4%

Fleet Operations – 16%

Legal – 0%

IT – 13%

HR – 7%

Finance – 26%

Executive – 0%

Audit – 5%

SUSTAINABILITY REPORT 2013 | CORPORATE RESPONSIBILITIES

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A WINNING CULTURE

elev8 is a company-wide initiative to support the target of developing leadership and a customer-centred organisation. It aims to drive continuous improvement and develop a winning culture so that Carnival UK can achieve its vision of becoming “the most spectacularly successful cruise company in Britain”. (LA10)

Between 1 December 2012 and 30 November 2013, 1,801 staff took one of the elev8 modules (1–3) of whom 1,599 were from the ships and 202 were shoreside. This represented a total of 5,652 staff hours. (LA10)

Module 1: “Introducing elev8” is a half-day course for all P&O Cruises and Cunard staff within their first eight weeks with the company which introduces them to elev8 principles, highlights the company’s vision and mission objectives and its adoption of a customer-centred culture. Any new shipboard staff unable to attend this are required to attend a shorter version (30 minutes) once on board. There is also an elev8 Ship Induction – also 30 minutes – for all P&O Cruises fleet officers. (LA10)

Module 2: “Enabling Leadership” is a two-day (16 hours) course for supervisors, middle managers and team leaders shoreside. This focuses on tools to help them become a more enabling leader and gives individuals an understanding of how to engage those in their team and also drive business priorities. There is a shipboard version for all P&O Cruises and Cunard officers which runs for eight 90-minute sessions. (LA10)

Module 3: “Making Change Happen” is a two-day course, also for shoreside supervisors, middle managers and team leaders to learn effective coaching and feedback techniques, understand the impact their own leadership style has on their teams and to go away knowing how to enable those teams to make changes and work more effectively. (LA10)

There is also a one day shore appraisal training module which 90 staff attended in 2013 plus officer appraisal training sessions (3 x90 minute sessions) which 63 P&O Cruises and Cunard officers attended in 2013. This equated to 913.5 hrs of training. (LA10)

All officers now meet with their line managers within the first seven days of their tour of duty to discuss their strengths, development areas and priorities for their tour of duty. They also meet informally midway through to discuss their progress and any further support they might need. Then, at the end of their tour of duty, they meet formally to discuss their overall performance both in relation to their set priorities and also to how they have gone about their work – i.e. their behavioural competencies. Strengths and development areas are also discussed and the focus for the next tour of duty established. (LA12)

LISTENING TO PASSENGERS DRIVES QUALITY IMPROVEMENT

Much of what Carnival UK does is driven by its passengers so it ensures a simple process is in place for them to communicate what they think and make suggestions as to how the company could improve its product and service levels. (PR5)

The primary route is through the Customer Service Questionnaire (CSQ) which is delivered to every cabin towards the end of each cruise or voyage. A paper CSQ is issued on cruises of seven days or more; on shorter cruises, the CSQ is sent electronically to the customer’s email address. (PR5)

Paper CSQs are scanned on board and the data collated and audited for reports giving satisfaction ratings across an extensive range of products and services. The data and reports go to managers within the business so that they can be informed of areas of success and areas requiring improvement or corrective action. These reports also identify areas for future product and service development. (PR5)

On the CSQ, passengers can rate the quality of all aspects of their cruise or voyage from the pre-cruise service through embarkation to the overall on board experience including service, cabin, food, bars, entertainment, shore excursions, retail outlets, ports of call and ancillary services. (PR5)

About 70% of CSQs are completed, with individual comments as well as ratings to make them even more useful. A set of CSQ targets by ship and trade has been established so the ship and brand performance can be monitored. (PR5)

In 2013, Cunard scored 88.3%, a marginal (0.2%) decrease on 2012’s while P&O Cruises scored 86.2% – up 0.7% on 2012.

TRUST CARNIVAL UK TO BE CHARITABLE

Cunard Line raised just short of £204,000 for the Prince’s Trust in 2013 which took the total contribution over the £1m mark since the two formed their relationship at the naming ceremony for Queen Victoria at the end of 2007. The money is raised on board through auction of nautical charts on every Cunard voyage and the contribution of loose change in foreign coins from passengers. There are also private fundraising events on the ships while Cunard also contributes £5 for every ship visitor booked. Cunard participates in many Trust events, contributing cruises and ship visits as auction prizes while staff at Carnival House organise a range of money-raising events from silent auctions to raffles.

The Carnival UK Human Resources Business Services department also takes part in the Trust’s Team programme. This is designed to help 16 to 25-year-olds improve their skills, presentation and attitudes in order to enhance their employment prospects.

The Team programme brings together a diverse mix of young people of widely ranging abilities, personal circumstances and backgrounds. The aim is to engage with young people through the Team, encouraging them to develop responsible attitudes and respond to an environment of discipline, routine and teamwork.

ANNUAL REVIEWS INTEGRAL PART OF COMPANY VISION

The percentage of Carnival UK shoreside staff undergoing annual reviews in 2012 was 98%. In 2013, 100% of seagoing staff received these reviews along with 94% of shoreside staff. (LA12)

This process is designed to support a culture of open, honest, regular feedback for staff which is provided both formally and informally. As well as being both supported and challenged, individuals are actively praised, listened to and recognised for their contribution, which is measured and rated along with their overall performance and effectiveness. (LA12) The company also has identified target behaviours for managers and staff which will help Carnival UK achieve its vision of being “the most spectacularly successful cruise company in Britain”. (LA12)

The formal reviews took place in November and will have encompassed:-

* a discussion (with their managers) of individuals’ overall job performance over the past year and an agreed assessment (and rating) of that performance against those target behaviours.

* a review of the goals set for 2013, a rating of how far those goals had been achieved and the setting up of agreed new goals for 2014. This rating was combined with that agreed for behaviours for an overall performance rating.

* a discussion on career aspirations and what development an individual might require to achieve them. (LA12)

In 2013, calibration meetings were held at the half year and full year to drive the consistent accuracy of appraisal ratings. At these, managers were asked to discuss their team’s performance at a high level and the rating they are proposing. This enables managers across a department to compare ratings and ensure similar levels of performance were being awarded a similar rating. (LA12)

Managers also attend a one day practical appraisal workshop and are encouraged to run the workshop with their teams while the HR Development team is on hand to “train the trainer”. (LA12)

As well as the formal annual review, there are informal discussions during the year which identify what support managers need to provide and also recognise and discuss the behaviour adopted by each individual to achieve their goals. (LA12)

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Staff from Carnival UK HR run mock interview sessions with the young people for a specified “position”. They will then ask them to identify positive areas of their interview performance and also those where they think they can improve. Afterwards, Carnival UK HR will provide detailed feedback on each individual which is then discussed with them at a later meeting.

At the end of each Team programme, there is a presentation ceremony to reward and recognise the individuals for their achievements, but the most important result is ensuring the young people are better prepared to gain employment or an educational place in their chosen field.

In 2013, Carnival UK hosted one of the Trust’s “Get into Customer Services” programmes for 12 young people from Southampton.

Beyond the Prince’s Trust involvement, HR Business Services has also linked with the reservations department and training academy to organise work experience on a regular basis for travel and tourism students from a variety of colleges.

Up to eight students come in for a week and spend time in different departments. They complete a workbook and present their findings to staff and their college tutors.

This programme’s target is to build up a stronger working relationship with the colleges and at the same time be better able to assess the potential of students for full-time employment at the end of their studies.Carnival UK Guest Services also allows students from Plymouth University to board ships on turnaround days to learn how they function.

The university has a degree course in cruise operations management and has been a source for Hotel Officer Cadets. Carnival UK has offered discounted rates on weekend cruises to course students and arranged meetings and interviews with key staff on board during their stay.

MACMILLAN NEVER HAD IT SO GOOD

A new partnership between P&O Cruises and Macmillan Cancer Support, which began in February 2013, had already seen £293,000 raised by the brand staff and crew by the end of November that year.

This was raised by weekly coffee mornings as well as sponsored bike rides and runs made by the ships’ crew and senior officers. In fact, the largest fundraiser was their participation in the World’s Biggest Coffee Morning that took place at the end of September. The ships also ran “money can’t buy” auctions on every cruise which featured prizes including dinners and/or masterclasses with celebrity chefs.

Carnival UK’s corporate donations policy is to support charities which are local to its operations at home (such as The Magic Wand Foundation which is supported by Helen Bull, a Carnival UK employee with cancer).

Staff also support the annual Children in Need and Sport Relief appeals.

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The Economic

A 4% increase to nearly €40bn in the cruise sector’s impact on European economies in 2013 meant that the total had more than doubled in the eight years since the first impact study was carried out in 2005 to show €19bn in economic benefits. A similar year-on-year rise in the number of jobs (up 12,000) generated meant that impact on employment had increased by 80% since 2005. (EC1)

To put this into a broader context, the total impact of the cruise industry on global economies is estimated at $100bn – about €80bn. (EC1) Within Europe, only Italy – because it has one of the leading specialist cruise shipbuilders – earns more from cruising than the UK which enjoyed a 6%-7% rise in direct spending from the cruise sector (to €3.1bn); number of jobs generated (to more than 70,000) and the associated wages (to nearly €2.6bn). (EC1)

The UK is now home to more cruise line employees than any other European nation, with it being the country of residence for more than a third (37.8%) of them. European cruise line employees (including those in the UK) accounted for more than a third (38%) of the direct jobs generated by the industry and 29% of the wages/compensation. (EC1)

Although there were slightly fewer ships operating in Europe during 2013, capacity still increased due to the increasing size of the ships. The result was a 5.2% increase (to 6m) in the number of passengers embarking cruises in European ports and a near-9% growth (to 31.2m) in the number of passenger visits to about 250 UK and European ports. Passenger/crew spending in European ports and destinations increased 4.5% to 3.8bn in 2013. (EC1)

IMPACT: GENERATING JOBS FOR THE UK AND EUROPE

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SUSTAINABILITY REPORT 2013 | ECONOMIC IMPACT

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SUSTAINABILITY REPORT 2013 | ECONOMIC IMPACT

For more information visit www.pocruises.com or www.cunard.com and for media enquiries contact michele.andjel@carnivalukgroup.com

EN3 Direct energy consumption by primary source

EN4 Indirect energy consumption by primary source

EN5 Energy saved due to conservation and efficiency improvements

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives

EN8 Total water withdrawal by source

EN12 Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

EN16 Total direct and indirect greenhouse gas emissions by weight

EN19 Emissions of ozone-depleting substances by weight

EN20 NOx, SOx and other significant air emissions by type and weight

EN21 Total water discharge by quality and destination

EN22 Total weight of waste by type and disposal method

EN23 Total number and volume of spills

EN26 Initiatives to mitigate environmental impacts of products, services and extent of impact mitigation

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

HR4 Total number of incidents of discrimination and actions taken

HR5 Operations identified in which the right to exercise freedom of association or collective bargaining may be at significant risk and actions taken to support these rights

HR6 Operations identified as having significant risk for incidents of child labour and measures taken to contribute to the elimination of child labour

HR7 Operations identified as having significant risk for incidents of forced or compulsory labour and measures taken to contribute to the elimination of forced or compulsory labour

LA1 Total workforce by employment type, employment contract and region

LA2 Total number and rate of employee turnover by age group, gender and region

LA4 Percentage of employees covered by collective bargaining agreements

LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements

LA6 Percentage of workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programmes

LA7 Rates of injury, occupational diseases, lost days, absenteeism and total of work-related fatalities by region

LA9 Health and safety topics covered in formal agreements with trade unions

LA10 Average hours of training per year per employee by employee category

LA12 Percentage of employees receiving regular performance and career development review

PR1 Lifecycle stages in which health and safety impacts of products and services are assessed for improvement and percentage of significant products and service categories subject to such procedures

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

SO1 Nature, scope and effectiveness of any programmes and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting

SO2 Percentage and total number of business units analysed for risks related to corruption

SO3 Percentage of employees trained in organisation’s anti-corruption policies and procedures

SO5 Public policy positions and participation in public policy development and lobbying

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments.

This sustainability report was compiled for Carnival UK in accordance with the G3 Guidelines of the Global Reporting Initiative (GRI). This index details the explanations for the Indicator numbers featured in the text of this report.

GRI INDICATORS

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CARNIVAL HOUSE, 100 HARBOUR PARADE, SOUTHAMPTON, SO15 1ST

www.Carnivalcorp.com