2009 Sustainability Report
Transcription
2009 Sustainability Report
2009 Sustainability Report Table of Contents Introduction 1 A Message From Our President and CEO 2 Our Company Our Employees 42 Working for Princess Cruises 42 The Workplace 45 3 Health & Wellness 48 Princess Cruises Profile 3 Recruitment & Retention 49 Worldwide Destinations 5 Training & Development 51 History of Princess Cruises 7 Compensation & Benefits 53 Timeline of Company Milestones 8 Engagement & Recognition 54 Code of Conduct 9 A Safe Working Environment 56 Our Values 10 Our Stakeholders 11 Our Ships 13 Our Passengers 58 Princess’ C.R.U.I.S.E. Program 58 Passenger Satisfaction 59 Continuous Innovation 61 Fleet Overview 13 Our Care Team 62 Safety Standards 14 Protecting Passenger Privacy 62 Health 19 Deployment Decisions 21 Shore Excursions 21 Our Planet 22 Our Approach to Environmental Management 22 Energy Use, Conservation & Air Quality 27 Water Use & Conservation 32 Wastewater & Waste Management 33 Operating in Sensitive Areas 39 Compliance 41 Our Public Policy 63 Our Communities 66 Economic Contributions to Port Communities 66 Community Philanthropy 67 Princess Cruises Community Foundation 67 Disaster Relief 68 Volunteerism 68 Susan G. Komen Walk for the Cure 69 Delivering Benefits to Alaska 69 Our Performance: GRI Index 70 Contact Information 73 Introduction Princess Cruises is one of the best-known names in cruising, and is a leader in worldwide cruise and cruisetour vacations. For more than 45 years, our ships have sailed around the globe, bringing our passengers to fascinating destinations on all seven continents. We’re recognized as the destination cruise line, with 1 15 distinct itineraries calling at more than 315 ports. Each year we carry 1.3 million passengers on approximately 540 cruises aboard our fleet of modern ships, renowned for their innovative and comfortable design and wide array of choices in dining, entertainment and amenities. Thanks to our 25,000 employees around the world who are dedicated to providing exceptional customer service, we’re proud to be known as “the consummate host.” Report Scope This is Princess Cruises’ first sustainability report, and includes the measured results of Princess Cruises’ activities in fiscal year 2009, which began on December 1, 2008 and ended on November 30, 2009. The report contains information about activities relating to performance indicators as defined by the Global Reporting Initiative (GRI). We are reporting on indicators in the areas of Environment, Labor, Human Rights, Society, Product Responsibility, and Economic Impact. These performance indicators were identified, selected, and agreed upon by all of Carnival Corporation’s operating lines. The current report is focused on the operation of our ships and on our shoreside headquarters and offices. Princess Cruises is a subsidiary of Carnival Corporation & plc, whose cruise brands are dedicated to being responsible corporate citizens. 2009 Sustainability Report | 1 A Message from Our President and CEO At Princess Cruises we understand that the most successful companies are those that embrace a strong set of values that support responsible and ethical behavior. We’re therefore pleased to share our first sustainability report that underscores our commitment to operating our business in an environmentally safe, economically efficient and socially responsible manner. Throughout this report, you’ll read about our practices including safety and security, medical and public health, employment, environment, waste management, resource conservation, passenger care and community philanthropy. These and many other topics covered in the following pages are our compass points — they set our course and guide us in all that we do. For more than 45 years our company has made its living on the oceans, taking passengers to fascinating destinations around the world. We are therefore well aware of our role — and responsibility — to ensure the health of the precious marine environment and the communities in which we operate, not only today, but for future generations. In this report we’ll introduce you to Princess Cruises’ core values, which form our beliefs about how we must and do operate as a company, and as individual employees. These values include such things as accountability, respect and service to others, innovation, integrity and professionalism. These are not just words and concepts — we live and breathe these principles every day. And we do so while also being committed to delivering an unforgettable vacation experience for our passengers. Thank you for your interest in Princess Cruises, and we look forward to continuing to share our sustainability programs and progress. Sincerely, Alan Buckelew President & Chief Executive Officer 2009 Sustainability Report | 2 Our Company Princess Cruises Profile Seven continents and five oceans. This is the world of Princess Cruises. It’s a world that joins people of different countries, backgrounds and experiences. A world that is increasingly interconnected and accessible — especially by sea, and by our ships. •7 continents, 5 oceans •Crew from 77 countries •315 ports worldwide •1.3 million passengers from 180 countries •1 15 unique itineraries •4,000 local land excursions Our ships sail across the 70 percent of our planet that’s made up of the oceans, yet we are connected to the world by more than just the sea. Princess operations touch every continent and approximately 90 percent of the world’s 194 countries. Our footprint includes the places from which we operate — our headquarters in Santa Clarita, California, and our offices in Seattle, Washington and Fort Lauderdale, Florida; and our operations in Alaska, which includes five wilderness lodges. We have a sales force located throughout the U.S., and Canada, and we have offices in Southampton, England, and Sydney, Australia. Our 25,000 employees include those coming from nearly 80 different countries — including from Asia, India, Europe, Central and South America, North America, South Africa, the South Pacific, the Caribbean and Africa. Princess carries 1.3 million passengers each year, and while the majority come from North America, we also source passengers from more than 180 other countries. We take these passengers on incredible voyages aboard our fleet of 17 beautiful ships, on more than 115 unique itineraries calling at 315 ports. We’re proud to say that Princess is one of the most famous names in cruising. And in fact, we were one of Headquarters — Santa Clarita, California the pioneers of the modern-day cruise vacation. Today, over 45 years after our first ship plied the waters of the Mexican Riviera, we remain one of the largest cruise lines in the world, with a loyal following of enthusiastic passengers whose numbers grow each year. But we don’t just bring people to fascinating places. We have an important brand promise for our passengers that is as much about the onboard experience, as it is about exploring new destinations. We enable our passengers to “escape completely,” because in every aspect of their cruise we strive to be the Consummate Host. We do this by being warm and welcoming, by paying close attention to our customers’ needs, and by providing a relaxed, 2009 Sustainability Report | 3 Our Company Princess Cruises Profile and onboard medical centers which are the only ones at sea to have received an international quality accreditation. And because Princess makes its living on the oceans, we are committed to environmental practices which meet a high standard for excellence and responsibility, and which help preserve the marine environment in which we operate. Princess Cruises was the first cruise company to pioneer The Sanctuary ® rejuvenating retreat at sea onboard our comfortably elegant ships that are designed to delight our passengers. At Princess we understand that the most successful companies are those that embrace a strong set of values that clearly communicate a philosophy toward responsible and ethical behavior. Our company’s core values, which are the inspiration for all our employees, embrace service, teamwork and respect, accountability, innovation, dependability and integrity. And at the forefront of our priorities is the safety and security of our passengers and crew. This commitment takes many forms — our exacting operating procedures, officers and crew training, technology and equipment, public health standards, shore power — this enables our ships to turn off our ships’ diesel engines while in some ports and literally “plug in” to a power supply ashore to minimize air emissions — plus stringent procedures for treating and properly disposing of all waste, recycling and energy conservation. So as Princess sails the world, we recognize the impact we make not only on our customers’ vacations, but also on the lives and livelihoods of so many. 2009 Sustainability Report | 4 Our Company Worldwide Destinations Worldwide Destinations Our cruises range in length from 3-day coastal cruises to 108-day world cruises, though our average cruise length is 10 days. Our destinations include: Alaska Europe The Americas The Exotics Asia, Africa & India • Australia & New Zealand Hawaii, Tahiti & South Pacific • South America World Cruises Canada & New England • Caribbean • Hawaii Mexican Riviera • Panama Canal Cruisetours Combining Sea and Land Travel In addition to offering our passengers cruise vacations, we also provide opportunities to combine a cruise with a multi-night land tour to inland destinations. We offer cruisetours in Alaska, Asia, Australia & New Zealand, Canada & New England, Europe and South America. 2009 Sustainability Report | 5 Our Company Worldwide Destinations Alaska Cruisetours Princess Cruises was one of the pioneers of Alaska cruising, and early on recognized that a full sea and land experience was the best way to experience the majesty and wonder of “The Great Land.” Our Seattle-based Princess Tours subsidiary develops and oversees our Alaska cruisetour product which is designed to offer our passengers and guests an immersive Alaska experience featuring the state’s “must see’ attractions, including Glacier Bay National Park and Denali National Park. Princess owns and operates five wilderness lodges nestled in scenic riverside locations throughout the state, as well as a fleet of glass-domed railcars and a fleet of deluxe motorcoaches — giving travelers the opportunity to combine cruise, rail and lodge options to see all the best of Alaska. Alaska Cruisetour Direct to the Wilderness Rail Service ® Copper River Princess Wilderness Lodge ® 2009 Sustainability Report | 6 Our Company History of Princess Cruises History of Princess Cruises In 1962, Canadian-born Seattle businessman Stanley B. McDonald bought a small passenger ship, the Yarmouth, and created package tours from California to Oregon, British Columbia, and the World’s Fair in Seattle, Washington. He sold the ship, but the venture had been so successful that it inspired him to try winter cruising in the opposite direction, southward to Mexico. In 1965, he chartered Canadian Pacific Railway’s 6,000-ton ex-ferry Princess Patricia and named his new company Princess Cruises after her. such a series would be an ideal way of broadening public awareness of its cruises. Filming began and the series attracted a world-wide audience for “The Love Boat” and a public relations bonanza for Princess Cruises. The series continued in production for 10 seasons and remains in syndication around the world. Princess Patricia In the winters of 1965 and 1966 the little “Princess Pat” proved that cruises to the Mexican Riviera could sell. No other ships were taking passengers there, and she opened up the market so successfully that in 1967 Princess Cruises chartered the brand new 12,500-ton Italia and renamed her Princess Italia. This increased the company’s capacity and enabled it to operate on a year-round basis. Another ship was added and the company inaugurated summer cruises to Canada and Alaska and added trans-Panama Canal cruises to its itinerary line-up. Two things would happen in the mid-1970s that would change everything for Princess Cruises. The British P&O / Orient Line was competing unsuccessfully in the Mexican Riviera trade when it decided to join forces with Princess, the market leader. In 1974 P&O acquired Princess Cruises which infused the company with resources to acquire ships and expand its operations. In 1988 P&O bought competitor Sitmar Cruises and merged it into Princess, which immediately doubled in size and benefitted from new ships Sitmar had on order. A period of growth and new ships continued and Princess became the third largest cruise line in the world. Along the way Princess became a destination cruise leader, and pioneered many worldwide cruise routes. Twelve years later in 2000, the cruise division of P&O was demerged into a separate entity called P&O Princess Cruises. Then, in 2003, P&O Princess Cruises was acquired by Carnival Corporation, joining their family of cruise brands. More new ships continued to be added to the fleet, all featuring the evolutionary innovations and casually elegant surroundings Princess is known for providing. Today the fleet includes 17 modern ships. Two new ships are on order and will be introduced in the spring of 2013 and 2014. Then in 1975 television producer Douglas S. Cramer and Aaron Spelling suggested that a luxury cruise ship would be an ideal setting for a TV series. Although the line was operating at near capacity, Princess felt that 2009 Sustainability Report | 7 Our Company A Timeline of Milestones in Princess Cruises History A Timeline of Milestones in Princess Cruises History 1965 1989 • Company founder Stanley B. McDonald charters Princess Patricia and forms Princess Cruises. The first winter season of Mexico cruises starts in November • Star Princess joins fleet. With this ship, Princess introduces concept of affordable private balcony cabins, expanding this feature beyond suites 1967 1990 • Princess Italia (one of the first modern ships built specifically for cruise vacations) chartered • Crown Princess joins fleet • Kenai Princess Wilderness Lodge opens in Alaska 1968 1991 • Princess Carla chartered • Princess Cruises’ now-famous “seawitch” logo makes first appearance • Regal Princess joins fleet 1972 • Island Princess joins fleet (formerly Island Venture) • Princess Tours founded in Seattle to support Alaska Cruisetour operations 1974 • Princess Cruises acquired by the Peninsular & Oriental Steam Navigation Company (P&O) • Pacific Princess (formerly Sea Venture) and Sun Princess (formerly P&O’s Spirit of London) join the fleet 1975 • “The Love Boat” television pilot is developed; Princess agrees to become the location for the show 1976 • The now-iconic “The Love Boat” TV show begins filming, introducing millions of viewers to the concept of cruise vacations. Princess will be the “star” of the show for the next 10 seasons 1981 • Princess Cruises begins calling at its first private Caribbean island, Palm Island in Grenadines 1984 • Royal Princess joins fleet. Ship is christened by Princess Diana 1986 • Sea Princess joins fleet from P&O (formerly Kungsholm) • New private island, Mayreau (Grenadines), replaces Palm Island 1987 • Denali Princess Wilderness Lodge opens in Denali National Park, Alaska 1988 • P&O acquires Sitmar Cruises and merges company into Princess Cruises. In the process, three new ships are added to the Princess fleet — Dawn Princess (formerly Fairwind), Fair Princess (formerly Fairsea) and Sky Princess (formerly Fairsky) • First Midnight Sun Express Railcars introduced to take Princess cruisetour passengers through the interior of Alaska 1992 • New private island debuts — Princess Cays® in Eleuthera, Bahamas 1993 • Golden Princess chartered (formerly Royal Viking Sky) • Fairbanks Princess Riverside Lodge opens in Alaska 1995 • Sun Princess joins fleet 1997 • Dawn Princess joins fleet • Mt. McKinley Princess Wilderness Lodge opens in Alaska 1998 • Grand Princess and Sea Princess join fleet • Princess moves its Customer Service Center to Santa Clarita, California 2000 • P&O Princess cruise unit demerged from P&O, forming P&O Princess Cruises plc • Ocean Princess joins fleet 2001 • New Golden Princess joins fleet • Princess Cruises headquarters moves to Santa Clarita, California • Use of shore power debuts in Juneau, Alaska 2002 • New Star Princess and Tahitian Princess join fleet • Copper River Princess Wilderness Lodge opens in Alaska 2003 • P&O/Princess Cruises purchased by Carnival Corporation • Coral Princess, new Pacific Princess and new Island Princess join fleet 2004 • Diamond Princess, Caribbean Princess and Sapphire Princess join fleet 2006 • New Crown Princess joins fleet 2007 • Emerald Princess and new Royal Princess join fleet 2008 • Ruby Princess joins fleet 2009 Sustainability Report | 8 Our Company Our Code of Conduct Our Code of Conduct As indicated in Carnival Corporation & plc’s Corporate Health, Environmental, Safety and Security Policy, Princess Cruises is committed to fully complying with or exceeding all legal and statutory requirements related to health, environment, safety and security throughout our business activities. To implement this policy, we promptly report and properly investigate all health, environmental, safety and security incidents, and take appropriate action to prevent recurrence. Training in Company Anti-Corruption Policies and Procedures In our business, adherence to the rule of law, ethical working practices, good corporate governance and transparency are critically important to our guests, our employees and our investors — and to our sustainable business success. We have strong corporate policies and safeguards in place, and a long history of adhering to, and promoting, high ethical standards and the law. It takes more than having the right mechanisms, standards and training in place to ensure an ethical business environment. Ethics are an integral part of how a company and its employees — from the executive and Board level on down — conduct themselves every day. Every Princess employee is responsible for adhering to business practices that are in accordance with the letter and spirit of the law and with ethical principles that reflect the highest standards of corporate and individual behavior. Integrity of performance is a Princess standard wherever we do business, and ignorance of that standard is never an acceptable excuse for improper behavior. We cannot rationalize improper behavior as being in the company’s interest. No act of impropriety advances the interest of the company; no act of impropriety will be tolerated. As a part of Carnival Corporation & plc, a global cruise operator and one of the largest vacation companies in the world, we recognize our responsibility to provide industry leadership and to conduct our business as a responsible global citizen. Our corporate leadership is manifested in our Code of Business Conduct and Ethics and requires that every employee and member of the Board of Directors will use sound judgment, maintain high ethical standards and demonstrate honesty in all business dealings. As a responsible global citizen, we are ardently committed to achieving and maintaining the highest standards of professional and ethical conduct. 2009 Sustainability Report | 9 Our Values Strong companies are guided by shared principles These core values are a compass providing on different experiences, talents, and perspectives to produce better ideas for our business and our customers. direction and inspiration to employees about what We Innovate. is truly important to the organization. Princess is a strong but quiet innovator. We listen and analyze, we create and evolve in ways that are meaningful and relevant to our passengers, travel agents, and employees. Our innovations are not gimmicks, nor bold claims without substance. We are always thinking of and moving forward with new ways to satisfy and delight our customers. that reflect their essential character and culture. At Princess, our core values have helped shape us into one of the most successful cruise lines in the world. These ideas have been at the heart of our company for many years. They clarify who we are and what we stand for, guiding the decisions we make and the way we do business. They reflect the type of person who works for our company, how we treat our customers and business partners, and how we work with others. They are beliefs that are a part of everything we do. They have withstood the test of time, and they will see us into the future. These values are the foundation of our past accomplishments, and serve as the compass for our continuing success. We Serve. In every role, we are consummate hosts. Onboard and on shore, we demonstrate this by being warm and welcoming, respectful and efficient, gracious and polite. By embracing the ideals of the C.R.U.I.S.E. program — paying close attention to our customers’ needs and desires, and treating them and each other as we would wish to be treated — we’re inspired to make each interaction with Princess ideal. We Respect our Team. The creativity, commitment and teamwork of Princess people drives our success; we value each employee’s contribution. We hire employees who share our values, invest in their development, and respect and recognize their accomplishments. We are strongest when we work together; we build teams that draw We Are Steady. Our customers can depend on Princess. Whether cruising with us or working with us, people know what to expect, because we deliver consistently every time. Every ship in our fleet is designed with a familiar, comfortable elegance that “welcomes people home.” We are a more predictable business partner because our policies are fair and consistent. We Are Accountable. Princess is, first and foremost, a business, that must be profitable to fund our future innovation and success. We have been entrusted with extensive resources to manage and grow our company. Each of us shares a duty to use those resources wisely. Results, both financial and non-financial, are important to all of us; we each take ownership of our responsibilities and our performance. We Do It Right. We do not compromise on things that matter. The safety and security of our passengers and employees is our most important responsibility. Our reputation for integrity, fairness, and professionalism is our greatest asset; we adhere to the highest ethical standards. We respect the communities in which we work and visit. We create and commit the necessary resources that demonstrate to our passengers that they can trust Princess to care for them. 2009 Sustainability Report | 10 Our Stakeholders We take seriously the consideration of the individuals, our stakeholders. We have identified several distinct The majority of our passengers book their cruises through a professional travel agent, and therefore the agency community is a vital customer to us as well. groups of stakeholders which include: Corporate Shareholders Our Employees As an operating brand of Carnival Corporation & plc, the world’s largest cruise company, Princess Cruises is responsible to the Corporation’s shareholders for its performance. Business decisions and policies are to some extent affected by this relationship, which is subject to certain regulations. organizations and other companies that comprise The success of our company is based upon a passion for service excellence. Identifying, nurturing and rewarding that passion is a key part of Princess Cruises’ interaction with our employees. Aside from meeting the standard human resources needs, Princess works to ensure that all employees are familiar with, and share the company’s vision and mission. Our Suppliers Princess strives to maintain long-term relationships with suppliers as a means to ensure consistent delivery of the onboard experience. This often entails a certain learning curve as suppliers become familiar with the standards and procedures we require to operate. Thus it is in our interest to maintain established relationships so long as they deliver the required goods and services and remain competitively priced. Princess does enjoy substantial benefits with certain suppliers as a part of the larger Carnival Corporation structure. NGOs Our Passengers Passenger satisfaction is a vital measure of our success, and this is measured systematically and regularly so we may respond to comments and concerns, and innovate or adjust our product accordingly. Our cruise experience is created to provide passengers with a memorable vacation, and to inspire them to cruise again with Princess. Our marketing initiatives, booking processes and policies are designed in consideration of our passengers, to help make the vacation decision and planning process simple and satisfying. Returning past passengers represent over one third of our annual business. Special interest groups exist which have a particular focus on a number of areas in which we operate, and we understand that these groups have an interest in our activities and plans. We strive to satisfy that interest, not least by the creation and publication of this and subsequent reports on our achievements and progress toward sustainability. Regulatory Bodies Princess Cruises is subject to regulation and monitoring by a number of local, national and international regulatory bodies. Princess’ standard operating procedures are established to meet or exceed the guidelines and requirements of these entities at all times. For instance, the standards utilized by the United States Public Health Service for food handling are maintained at all times even though our vessels operate mainly outside the United States and may only infrequently be inspected by that body. 2009 Sustainability Report | 1 1 Our Stakeholders Local Communities Cruise tourism creates a diverse array of effects within a community. There are positive economic effects from the employment of local businesses such as the port contractors, tour operators, retail and service providers. There are often benefits to the government in terms of taxes, fees and other levees. There are corresponding pressures on the community to provide security, manage traffic, and absorb increased activity that exceeds the norm. Therefore it is incumbent upon us to ensure that we communicate with the community stakeholders, are aware of and sensitive to their issues, and that we create and maintain a relationship of goodwill with them. It is our intention to operate in such a way that our visits to every community where we operate will create a net benefit to the community. 2009 Sustainability Report | 12 Our Ships All Princess ships are registered in Bermuda, a British Overseas Territory, which is our flag administration. A flag state has regulatory authority over the commercial vessels that are registered within their country, including inspection, certification, and issuance of safety and pollution prevention documents. Fleet Overview Ship Name Tonnage Passenger Capacity Entered Service Ruby Princess 113,000 3,080 2008 Emerald Princess 113,000 3,080 2007 Crown Princess 113,000 3,080 2006 Caribbean Princess 113,000 3,080 2004 Diamond Princess 116,000 2,670 2004 Sapphire Princess 116,000 2,670 2004 Island Princess 92,000 1,970 2003 Coral Princess 92,000 1,970 2002 Star Princess 109,000 2,590 2002 Golden Princess 109,000 2,590 2001 Grand Princess 109,000 2,590 1998 Sea Princess 77,000 1,990 1998 Dawn Princess 77,000 1,990 1997 Sun Princess 77,000 1,990 1995 Royal Princess 30,200 680 2001 (built) 2007 (joined Princess) Ocean Princess 30,277 680 1999 (built) 2002 (joined Princess) Pacific Princess 30,277 680 1999 (built) 2002 (joined Princess) Our passengers and crew entrust us with their safety and security, and we acknowledge this responsibility. We’re guided by our Health, Environmental, Safety and Security Policy (HESS) to maintain strict protocols in these important areas. 2009 Sustainability Report | 13 Our Ships Safety Standards Safety Standards Princess is committed to providing our passengers with not only a pleasant and enjoyable experience, but a safe experience as well. To ensure passenger and crew safety, we abide by international regulations, provide continuous crew safety training, conduct onboard passenger drills, invest in safety technology and equipment, maintain a 24-hour emergency response system, develop shipboard safety programs, and maintain a dedicated shoreside Safety Department. Compliance with International Ship Safety Standards All of our ships comply with the standards set forth by the International Safety Management (ISM) Code developed by the International Maritime Organization (IMO), a United Nations agency focused on the safety and security of shipping, as well as numerous other U.S. and international regulations. Lloyd’s Register and Bureau Veritas, Princess’ ship classification societies, ensure that we are in compliance with their classification rules and international conventions regarding the safety of life at sea and environmental preservation. Princess’ vessels are routinely inspected by the U.S. Coast Guard and other port state control authorities regarding their design, construction, alteration and repair. They ensure that Princess adheres to applicable international and local standards, laws and regulations. Safety in Ship Design Princess ships are equipped with a broad range of systems and technologies designed to prevent collisions, mechanical failures and fires. Our ships include advanced lifesaving and communications equipment as well as modern navigation and weather tracking systems. Examples include: • Watertight compartments that are secured by specialized doors and valves to prevent flooding and maintain watertight integrity. • A collision bulkhead designed to withstand collision impact. • Ship stability software that uses a 3D model of the ship to assess the ship’s stability characteristics and longitudinal strength in intact or damaged conditions. • A safety management and control system integrates all of the ships’ safety systems and allows them to be monitored and controlled from the Safety Center. Each ship has an integrated fire detection and suppression system. Structural fire protection is provided to limit fires and their damage through the use of fire-rated bulkheads, doors and insulation as well as fire-resistant materials throughout the ship. • An automatic identification system that broadcasts the ship’s name, position and technical details to nearby ships, and collects their information for our use, to facilitate emergency communications. • Global Maritime Distress Safety System that encompasses an international standard set of safety procedures, equipment and protocols that make it easier to rescue distressed vessels. • Integrated Bridge Systems with computerized collision avoidance system and electronic charts. Our Fleet Regulations In 1995, Princess became the first cruise line to be awarded the “Document of Compliance” by the U.K. Maritime and Coast Guard Agency (MCA) — three years ahead of the International Maritime Organization’s 1998 deadline — clearly demonstrating our commitment to safety and pollution prevention standards and practices set forth by the International Safety Management (ISM) Code. In addition to adhering to the more than 40 protocols and over 800 codes set forth by the ISM Code, Princess has its own internal Fleet Regulations under the Safety Management System (SMS), which provides an elevated set of standards for each of our ships. Our Fleet Regulations guide the management and operations for shipboard safety, security, environmental management, emergency response, and health. 2009 Sustainability Report | 14 Our Ships Safety Standards Key Regulations / Codes Purpose Safety of Life at Sea (SOLAS) Governs the construction and operation of cruise ships. (See box below) International Regulations for Preventing Collisions at Sea (COLREG) Sets the rules to be followed by ships and other vessels at sea. International Ship and Port Facility Security Code Governs the creation of ship security plans, personnel and equipment. U.S. Maritime Transportation Security Act Governs the development of vulnerability assessments and security plans; security patrols; establishing restricted areas; personnel identification procedures; access control measures; and/or installation of surveillance equipment. Port State Control Allows domestic maritime authorities such as coast guards to inspect foreign-flagged ships calling at the domestic country’s ports. Standards of Safety, Training, Certification and Watchkeeping (STCW) Governs the training that mariners must have to work aboard cruise ships. Carnival Corporate Health, Environmental, Safety and Security (HESS) policy Describes our commitment to protecting our employees’ and passengers’ health, safety and security. Safety Management System Shipboard Safety Committees Our comprehensive health, environmental, safety and security management system, designed in accordance with international standards, brings order and predictability to our workplace safety systems. Our Safety Management System (SMS) ensures safety is part of the managerial process that must be considered at the same level and along the same lines as any other managerial process. Each shipboard department has a representative on the shipboard safety committee, which meets monthly to address safety-related matters and analyze actual or potential emergency situations, incidents, accidents and near misses. The committee’s goal is to engage employees in safety and develop plans of action to prevent such incidents from occurring or reoccurring. Each ship’s committee is supported by a dedicated member of the safety department. Princess’ SMS establishes lines of safety accountability throughout the organization and integrates regulatory and managerial safety requirements established by the International Safety Management (ISM) Code for the Safe Operation of Ships and for Pollution Prevention. This code, among other things, requires vessel owners to obtain a safety management certification for each vessel they manage. SOLAS 2010 Since 1948, the International Maritime Organization has been setting standards for the construction and operation of cruise ships. Codified in the Safety of Life at Sea Convention (SOLAS), the standards are continually updated and on October 1, 2010, required all ships to comply with the latest fire safety regulations. All Princess ships already meet these standards. 2009 Sustainability Report | 15 Our Ships Safety Standards Shoreside Health, Environmental, Safety and Security Committee This shoreside committee is an important component of the company’s Shoreside Safety Committee (SMS). Chaired by the Executive Vice President of Fleet Operations and composed of the department heads who oversee the SMS, the committee meets regularly to discuss any problems related to safety and environmental protection, as well as corresponding policy. In addition, the committee discusses shoreside facility safety-related concerns so the committee includes representatives from facility management and Princess’ risk management and medical services departments. The committee also analyzes technical issues of relevance and emergency situations that have occurred aboard our ships or that may occur in the future. Furthermore, the committee discusses marine incidents, accidents, near misses and any other hazardous situations that may occur. Safety Training Training is a fundamental component to our safety management system and the key to preventing accidents, injuries and fatalities — as well as material loss or damage. Extensive training, both ashore and at sea is conducted to minimize the chance of anything from a minor injury to a major incident and to ensure that the ship can respond correctly. All officers must complete Standards of Training, Certification and Watchkeeping (STCW) requirements. In accordance with international law, all shipboard employees must be familiar with safety procedures before being assigned to a work schedule. Our shipboard training and development managers overseeing crew training centers have a variety of safety-related supporting materials. Additional training opportunities are available, including: • Formal orientations, with an overview of our culture of health and safety • On-board training to increase officers’ skills in the areas of engineering, nautical management and public health • Resource management training for bridge officers, emphasizing effective use of personnel and technical resources, and effective emergency communication methods Our crew members play a vital role in maintaining a safe environment onboard all of our ships, which is why Princess is dedicated to providing comprehensive and continuous crew safety training. We developed the Sail Safe program for crew members, which educates and tests their knowledge about safety requirements through safety campaigns, computerbased training, and safety competitions. In addition to general crew safety training, we conduct specialized training for departments requiring a high level of expertise, such as training ashore for the onboard fire fighting teams. We also conduct training drills with the crew each week for various emergencies, such as fire and evacuation procedures. Our Shipboard fire fighting teams regularly train and drill ships are subject to inspections by the U.S. Coast Guard, in which our drills, equipment, and vessel operations are examined for compliance with International Regulations and relevant U.S. regulations. In addition regular drills and inspections are held by our Flag State and Port State Control Authorities around the world. Passenger Safety Communications & Preparation Passengers are encouraged to participate in our safety efforts through initiatives such as: • Mandatory safety briefings at each turnaround port • In-cabin videos that emphasize the importance of security, sanitation and safety procedures • Safety and accident prevention information in passenger staterooms 2009 Sustainability Report | 16 Our Ships Safety Standards Like crew members, our passengers also play a vital role in maintaining a safe environment onboard our ships. On their first day aboard, all passengers are required to attend a muster drill for safety instructions. These muster drills educate our passengers on the correct way to wear a lifejacket, general safety, and procedures to follow in the event of an emergency. In addition, a designated channel on stateroom televisions provides safety information to all passengers on the day of boarding. Safety Equipment & Technology Princess is committed to investing in safety equipment and technology that complies with, and often exceeds, U.S. and international regulations. For instance, we carry more lifejackets than is required by SOLAS and have provided lifejackets for infants and animals well before they were required by law. We have also invested in some of the latest technological systems onboard our ships, such as providing all our fire teams with thermal imaging cameras. Our ships are also equipped with a Safety Center, containing a computerized safety management system that automatically checks the ship’s safety systems and enables staff to monitor and control each of these systems, such as fire doors, alarms, and fire detectors, through a computer terminal. Our safety equipment and technology allows staff to respond quickly and comprehensively to onboard emergency situations. inspected by the Safety Officer, Occupational Safety and Environmental Officer, the ship’s Safety Manager and members of senior management. The ships are also independently audited for compliance with the International Safety Management (ISM) code and procedures. CSMART Training Center In order to provide our ships’ bridge management teams with the most relevant simulator training, Princess developed CSMART, the Center for Simulator Maritime Training, a new maritime training facility located in Almere, Netherlands. CSMART features the latest state-of-the-art equipment and instructional tools to provide our bridge crews with a superior maritime training experience that will foster critical thinking, problem solving, ethical decision making, and confidence. CSMART offers two full mission bridge simulators, six part-task simulators, and the ability to simulate fixed propeller and azipod stimulation, plus full service instructional classrooms. The bridge simulators provide participants access to the visual environments of some of the world’s major ports and cruise destinations, including Los Angeles, Ft. Lauderdale, Copenhagen, Stockholm, Singapore and Glacier Bay to name but a few. Certain CSMART courses are accredited by the MCA (Maritime and Coast Guard Agency) and other regulatory bodies. Accident Prevention The best way for us to maintain safety onboard our ships is to prevent any accidents or emergencies from occurring. At Princess, we believe that you can never be too cautious, which is why we take measures to counter potentially hazardous situations. Our Safety Department is constantly working to improve procedures designed to decrease the chance of injuries. All injuries and safety incidents are reported to our shoreside Safety Department for our safety managers to investigate, work to identify trends and strategize processes to prevent similar incidents from occurring in the future. Our ships are frequently 2009 Sustainability Report | 17 Our Ships Safety Standards U.S. and International Regulations. We adhere to requirements regarding restriction of access to our ships, screening of passengers and baggage, and monitoring the supplies that are loaded onto each ship. The ERC is prepared to support ship emergencies Emergency Response Center In the rare event of an emergency situation onboard one of our ships, Princess has an Emergency Response Center (ERC) located at our Santa Clarita head office, that is equipped to provide full support and communication to our ships at sea. Our emergency response team is on call 24 hours a day and consists of specialists from a variety of operational departments trained to handle emergency situations. The ERC provides the Princess response team with the resources necessary to support any ship and its passengers experiencing an emergency. Complete with features necessary to handle an emergency anywhere in the world, the ERC is equipped with virtual command center technology, multiple phone lines, computer links ensuring dedicated emergency communications, and digital data display capabilities. Emergency drills are held throughout the year. Princess’ security program is guided by the regulations set forth by the International Maritime Organization (IMO), and we practice risk management following the guidelines set forth by the International Ship and Port Facility Security (ISPS) Code. When combined with the other industry standards, regulations and measures, including our own internal standards, Princess uses these tools to assess risk and adopt robust security measures enhance passenger and crew safety Overseeing our shipboard security program is Princess’ dedicated onshore Security Department, which maintains active relationships with government, law enforcement and private security organizations worldwide, and ensures we are meeting or exceeding all applicable regulatory requirements. Princess has a team of security personnel onboard all of our ships and at our corporate office. Each ship has a ship security officer who is responsible for updating and implementing the security plan, training security staff, record-keeping, and ensuring compliance with the ISPS Code. Additionally, Princess has appointed a Vice President as the Company Security Officer to oversee security operations and maintain high level scrutiny. Shipboard Security A cruise vacation is one of the safest vacations available because a cruise ship is like a small gated community where access is strictly controlled. There is round-the-clock security and all passengers and crew are identified before they’re allowed to board the ship. Nevertheless, because the safety and well-being of our ships, passengers and crew is our highest priority, Princess maintains a comprehensive shipboard security program which operates in accordance with relevant 2009 Sustainability Report | 18 Our Ships Safety Standards • Health Health Public Health Ship security is enhanced by the A-PASS system Officers and staff onboard and at our corporate office have extensive security experience, including military, Coast Guard or other law enforcement services. Our staff undergoes initial and ongoing training in security procedures, investigation, detection and assessment, including drills and exercises, as directed by the ISPS Annual Security Exercises program, which helps to gauge the effectiveness of security plans. In addition to security on board our ships, Princess security personnel regularly review security at various ports of call and tour venues. Further, we maintain strict adherence to the basic fundamentals of onboard ship security. Princess screens all passengers, crew and vendors embarking and disembarking our ships. We were the first cruise line to enhance security protection by implementing the cruise card system called A-PASS (Automated Personnel Assisted Security Screening), which links an electronic photo of the passenger to their individual card, ensuring only those authorized are welcome aboard, and keeps an accurate record of who is onboard the ship at all times. All Princess ships have extensive CCTV surveillance systems and we are continuously testing new technologies to further enhance our security program. We have a “zero tolerance” policy for criminal or excessive behavior, by either our crew or passengers. Any crime committed onboard our ships is immediately reported to the appropriate law enforcement authorities, including the Federal Bureau of Investigation (FBI). The Princess Cruises Public Health Department is overseen by a Director of Public Health who reports to the Chief Medical Officer. The Director leads a team of academically and professionally trained Public Health Officers to maintain the highest standards of public health onboard our ships. All our ships adhere to rigorous public health standards developed by the U.S. Centers for Disease Control and Prevention (CDC), as outlined in the CDC Vessel Sanitation Program Operations Manual. Among these requirements are two unannounced public health inspections annually for ships sailing in U.S. waters. These inspections include evaluation of potable and recreational water systems, food safety and hygiene practices, and the management and reporting of all cases of gastrointestinal illness. Ships also undergo additional inspections by local and regional port health authorities worldwide. All these international regulatory health agencies work to ensure that the cruise ship industry consistently maintains the highest levels of sanitation aimed to prevent and control the spread of diseases. In addition to external inspections, our ships maintain compliance with company comprehensive public health policies and procedures. These policies and procedures are multi-tiered levels which include training for shipboard staff, prevention and control measures for disease outbreaks, and potable water system requirements. They have been designed to ensure consistent delivery throughout the fleet and are equivalent to, if not more rigorous than international requirements. These policies are evaluated by the Public Health Officers, who conduct regular internal audits throughout the fleet. Princess takes great pride in maintaining high public health scores and in 2009, the fleet obtained an average fleet score of 98 out of a possible 100 points on inspections conducted by the CDC. Aside from operational standards, all vessels are duly designed and constructed to standards included in the CDC 2009 Sustainability Report | 19 Our Ships Health Vessel Construction Guidelines which ensures the fleet is in full compliance with stringent standards prior to setting sail. Medical Care Princess is dedicated to creating one of the industry’s most advanced shipboard medical programs. Our staff of well-qualified, dedicated medical professionals works in modern facilities which are suited to the practice of medicine in the maritime environment. The company’s medical and public health program is overseen by the Senior Vice President and Chief Medical Officer who has extensive experience as a maritime physician. As a cruise ship is typically not located close to a major metropolitan hospital, Princess’ goal is to equip our medical facilities, and have the trained staff available, to handle the most common medical emergencies, in addition to providing primary care for our crew while they are onboard. Healthcare Accreditation and Certification Since 2006, both the Princess Cruises shipboard and shoreside medical departments have been accredited to international quality healthcare standards by CHKS and certified to ISO 9001:2008. CHKS is a major UK-based organization that works with public and private health care providers worldwide. They develop best practice standards and are accredited by the International Society for Quality in Healthcare (ISQua), the leading international healthcare quality policy and research organization. The CHKS accreditation followed a comprehensive survey of our medical facilities, staff and procedure against more than 400 quality healthcare standards. In addition to this, Princess’ medical program meets or exceeds the guidelines issued by the American College of Emergency Physicians (ACEP) which are intended to promote quality medical care aboard cruise ships. Medical Staff We have a stringent recruitment process for retaining full time qualified physicians and registered nurses. All medical staff must have a minimum of three years post-graduate medical experience in areas of primary care, emergency medicine including minor surgery and cardiac care. Additionally, each staff member is required to maintain certification in advanced cardiac life support and to participate regularly in continuing professional development. Medical Facilities To best respond to our passengers’ and crew medical needs, our facilities are well equipped to deal with a variety of medical conditions, ranging from the common cold to fractures and heart attacks. Our ships are equipped with EKG machines, ventilators, infusion pumps, x-ray machines, blood pressure monitors and defibrillators. Facilities include a reception area, dispensary, consulting rooms, treatment rooms, an x-ray area, up to eight in-patient beds including ICUs and a laboratory. Our laboratory is capable of testing many parameters within 30 minutes including blood chemistry, liver functions, complete 2009 Sustainability Report | 20 Our Ships Health • Shore Excursions blood count, blood clotting (INR), and cardiac biomarkers (Troponin-I). We are also able to test for infectious diseases such as Legionella, influenza, streptococcus, hepatitis and malaria. In line with our commitment to protecting the environment, the vast majority of our ships employ digital radiology for the processing of x-rays thus eliminating the need for chemicals. Princess has also implemented a contingency medical plan that designates an Alternate Care Site, located in a separate fire zone of the ship, which can operate using its own emergency power, lighting, equipment, and supplies in the event our primary medical center becomes non-operational. Emergency Medicine and Evacuation at Sea Medical emergencies onboard a ship at sea can be a traumatic experience for patients, their companions and their families at home. Princess’ onboard medical staff is available to assist patients 24 hours a day, 7 days a week and all persons can quickly access medical help through our 911 emergency number. Some medical conditions may necessitate evacuation to a land-based medical facility. The medical staff in conjunction with the patient’s insurance assistance company will arrange safe transfer to an appropriate facility. Our Care team will provide support until patients are able to return home. Deployment Decisions Shore Excursions More than 4,000 different excursions, each selected with our guests’ range of interests and activity levels in mind, are available on our cruises. Our goal is to work with tour operators who provide the highest level of quality, safety, convenience and value. Guests can experience any destination the way they want to — through sea kayaking, a helicopter tour, beach horseback riding or a visit to a local museum. Every shore excursion operator must meet Princess’ quality standards before they are selected to provide excursions to our passengers. Prior to contracting with an operator, we screen the tour operator for insurance, reputation, experience and quality. We also avoid selecting high-risk excursions, such as moped riding and jet skiing, due to the inherent risks. Should a guest register a safety-related complaint, we conduct an investigation. The worldwide deployment of the Princess fleet is based on assessments of the desirability and marketability of destinations, combined with the logistical feasibility of access both from the maritime and shoreside delivery perspectives. Most of Princess’ itineraries combine a mix of well-known, marquee ports and unique, emerging ports. The key elements in selecting a port are the safety and utility of the facility, the access to features of interest from the ports, and other factors that might affect the guest experience such as restrictions, customs and immigration clearance procedures and costs. 2009 Sustainability Report | 21 Our Planet Princess Cruises makes its living on the oceans, Environmental Management System and therefore we are committed to environmental Princess operates under a formalized Environmental Management System (EMS) that provides a framework for minimizing our environment impacts. Our EMS focuses on such issues as environmental matters, legal requirements, training, communications, emergency preparedness and audits, and provides us with a structure ensuring that our entire fleet is following the same rigorous and consistent standards. practices which set a high standard for excellence and responsibility, and which help preserve the marine environment in which we operate. Princess has defined clear environmental goals and policies, we have established strict lines of responsibility and accountability within our company for adhering to these guidelines, and we provide our shipboard staff with the equipment, expertise and training to achieve our environmental standards. We are committed to: • Reducing air emissions • Increasing energy efficiency • Conserving fuel and water • Reducing solid waste generation • Managing waste streams responsibly • Preventing oil pollution • Increasing recycling • Training our crew • Protecting marine life • Auditing our procedures and equipment • Meeting or exceeding regulatory requirements Our Approach to Environmental Management As part of Carnival Corporation & plc’s commitment to environmental stewardship, in 2007 the company established a Health, Environmental, Safety and Security (HESS) Policy endorsed by its Board of Directors. The policy states that all of its operating lines — including Princess Cruises — will work to minimize the environmental impact of our operations through improved efficiency, rigorous management and innovative technology. Our guiding principle is that accidents and environmental harm are preventable and that continuous improvement and pollution prevention should be inherent in all our activities. In 2006 Princess Cruises received ISO 14001 certification and in 2009 that certification was renewed. ISO is an acronym for the International Organization of Standardization, and ISO 14001 is a structured approach to establishing environmental objectives and targets. As part of our ISO 14001-certified EMS, we monitor the amount of water consumed, waste generated and fuel consumed on each ship. Each ship works toward a company goal of reducing water and fuel consumption, minimizing waste generation and increasing recycling by a variety of methods. The ISO 14001 process is based on the methodology known as Plan-Do-Check-Act (PDCA), which focuses on the importance of planning with training, procedures, instructions, and checklists to ensure we understand and are meeting all environmental requirements. We never act before taking into account all possible effects of our actions, and continuously gather and analyze results of our environmental impact, for ongoing improvement of our processes. Our Environmental Organization In 1993, Princess was the first cruise line to appoint an environmental expert to a full-time senior management position. Early on, we recognized the need, as a company dependent upon marine conservation, to create a formal department dedicated to minimizing adverse effects on the environment. Today our Environmental Operations Department is responsible for the implementation and management of our environmental policies and procedures, as well as pursuing innovative technology and operations that will further enhance our existing practices. 2009 Sustainability Report | 22 Our Planet Our Approach to Environmental Management Our shoreside environmental team is comprised of marine professionals, with engineering, environment and U.S. Coast Guard experience. Each member of the department has ISO 14001 lead auditor certification. are a key part of our planning and decision-making process, and for guaranteeing that environmental practices are executed fleetwide. Our shoreside team directs and oversees the Occupational Safety and Environmental Officers onboard each of our ships, whose responsibility is to oversee environmental compliance by each vessel and its crew. Through daily shipboard inspections and training of staff, this officer plays a vital role in meeting the company’s environmental goals. Princess ensures full compliance with legal and statutory obligations. These include a broad range of international, national, state, regional and local requirements in the form of statutes, regulations, ordinances, Memorandums of Understanding and permits. We strive to meet or exceed environmental regulations by setting measurable objectives for improvements in waste management, fuel and water consumption, energy efficiency, recycling, and air emissions. Employees at all levels of our organization are responsible for ensuring that environmental concerns Regulatory Framework Environmental Regulations Regulation Purpose How Princess Meets or Exceeds Regulation International Convention for the Prevention of Pollution from Ships, 1973 MARPOL To govern/reduce pollution from ship operations • Discharges treated bilge water outside 12 nautical miles from land, though not required • Installs “white boxes,” a voluntary monitoring and control device that monitors treated bilge water discharges to ensure that they contain less than 15 ppm of oil before being discharged • Discharges treated blackwater and comminuted food waste outside 12 nautical miles (to reduce the potential for pollutants to reach shore, thereby preserving coastal water quality): a.from the nearest land, though not required b.from boundaries of restricted areas/marine sanctuaries, though not required • Bans disposal of: a.incinerator ash at sea, though allowed by law b.any nonfood solid waste (glass, china, metal) at sea, though allowed by law International Management Code for the Safe Operation of Ships and for Pollution Prevention (the ISM Code) An international standard for the safe management and operation of ships and for pollution prevention Earned the following certifications to enhance our environmental, quality and occupational and safety programs. These programs are structured to follow internationally accepted standards that can be audited. Each standard requires written management systems with measurable goals and procedures for corrective action and management review: • ISO 14001 in 2006 (renewed in 2009) 2009 Sustainability Report | 23 Our Planet Our Approach to Environmental Management Regulation Purpose How Princess Meets or Exceeds Regulation Flag state marine environmental rules and regulations Rules and regulations from the places where our ships are registered: Bermuda Complies with all flag state requirements Port state marine environmental rules and regulations Rules and regulations from the countries and areas where we operate Bans incineration in port even if allowed by local authorities (this reduces air pollutants blown ashore that contribute to smog and health issues). Directive 2000/59/EC of the European Parliament and of the Council 27 November 2000 Reduce discharges of generated waste and cargo residues to sea Complies with the Directive Council Directive of 12 December 1991 on hazardous waste (91/689/EEC) amending Directive 78/319/ EEC on hazardous waste Defines hazardous waste and how it is managed Complies with the Directive U.S. Act to Prevent Pollution from Ships Implements MARPOL and governs ship air and water pollution Complies with the Act U.S. Clean Water Act (CWA) Sets standards for effluent discharges to bodies of water and territorial waters to prevent pollution • Discharges treated blackwater and treated bilge water outside 12 nautical miles from shore (to reduce potential for pollutants to reach shore and to preserve coastal water quality) • Despite no restrictions, only discharges graywater outside 4 nautical miles as well U.S. Vessel General Permit (VGP) Regulates discharges incidental to the normal operation of vessels Despite the VGP one nautical mile restriction, discharges graywater and treated bilge water outside 4 nautical miles from shore U.S. Clean Air Act (CAA) Protects the public from exposure to airborne contaminants that are hazardous to human health Equips ships with opacity meters which allow for faster correction / adjustments if emissions are out of range 2009 Sustainability Report | 24 Our Planet Our Approach to Environmental Management Regulation Purpose How Princess Meets or Exceeds Regulation U.S. Resource Conservation and Recovery Act (RCRA) Hazardous waste management regulations • Voluntarily follows the intent of the RCRA as it pertains to the generation and storage of hazardous waste while the waste is on board the vessel. Also follows RCRA as it applies to transportation requirements such as packaging, labeling, manifesting, and record-keeping and reporting for the waste that is landed ashore (this helps prevent spills on board, reduces the possibility of having unidentified wastes, and reduces the potential for employees to be harmed due to contact with unlabeled or unidentified wastes) • Voluntarily performs a “due diligence” review of various hazardous waste vendors. Due diligence involves a review of the vendor’s operations, including insurance, permits, and can also include property inspection to help ensure compliance with regulatory requirements (this ensures wastes are handled properly during transportation and intermediate storage as well as properly disposed of) Alaska Cruise Ship Legislation Regulates water, air and waste from cruise ships • Complies with Alaska legislation • Installed advanced wastewater treatment systems (AWWTS) on our Alaskan ships to treat accommodation graywater and blackwater discharges (though not required) • Applied for and received approval from the Alaska Department of Environmental Protection and U.S. Coast Guard to discharge AWWTS effluent into AK waters • Equipped Alaska ships with opacity meters, though not required Hawaii Cruise Ship Legislation Regulates water, air and waste from cruise ships • Complies with Hawaii legislation Ballast Water Management Regulations: U.S. Coast Guard, California, IMO, Canadian, Bermuda and European Nations To prevent impacts to marine and aquatic life • Monitors levels of fuel, potable water, graywater and blackwater (and uses those tanks when possible) to stabilize the vessel, as opposed to taking in or discharging ballast water • Coordinates fuel and potable water bunkering to reduce the need for ballast water tank usage (this reduces the potential for invasive species to transfer from one location to another, which could harm the environment) 2009 Sustainability Report | 25 Our Planet Our Approach to Environmental Management Regulation Purpose How Princess Meets or Exceeds Regulation Limits on fuel sulfur content Requires compliance certificate; sets sulfur content limits • Complies with all low sulfur fuel requirements where imposed Voluntary Guidelines: • Memorandum of Understanding Cruise Operations in Washington State • Florida Department of Environmental Protection Memorandum of Understanding • Cruise Lines International Association Guidelines to responsibly handle and dispose of various waste streams • Complies with all MOUs where in place and agreed Education and Training Princess has an environmental training program in place to ensure shipboard crew and operationally related shoreside staff, have the knowledge and skills necessary to follow the company’s environmental policies and procedures. Our employees are taught what they need to know and also, importantly, why these environmental practices are important, what behaviors are acceptable, and which are not. Developing and implementing these training programs is critical to protecting the environment, complying with laws and regulations, and strengthening our approach to environmental management. Employees receive training based on their job responsibilities. The specifications of the required training, as well as those individuals who must undergo environmental training, are included in the EMS. Effective training ensures that: • All shipboard and applicable shoreside employees receive environmental awareness training. • Any employee whose job could significantly impact the environment has job-specific training, including equipment training, prior to commencing work in his or her job. • Any person whose job entails oversight and verification of environmental management, performance or compliance is competent in these areas. • Avenues are available for shipboard and shoreside employees to communicate best practices, new training requirements, and other information that may enhance environmental awareness and performance. Based on effective training requirements, Princess’ environmental training programs for shipboard and shoreside personnel typically utilize a multi-tiered approach that includes one or more of the following, based on the job duties of the individuals being trained: • Environmental awareness training • Advanced environmental training for management and supervisory personnel • Environmental oversight and verification training Occupational Safety and Environmental Officers, upon joining the company, receive specialized training using lectures, hands-on courses and computer-based modules and certain personnel receive continuing education. 2009 Sustainability Report | 26 Our Planet Our Approach to Environmental Management • Energy Use, Conservation & Air Quality It can be challenging to monitor the extent of training delivered to each officer and crew member, because they hail from all over the world and work on different vessels at various times throughout the year. To overcome that challenge, Princess uses an electronic tracking system to identify personnel who require training and document when that training was delivered. Energy Use, Conservation & Air Quality Planet Princess In 1993, Princess launched an environmental program called “Planet Princess” to encourage and inspire our crew members and passengers to be good stewards of our environment and the oceans. The program emphasizes three key principles that are the cornerstone of our anti-litter and conservation efforts: • No solid waste is ever thrown overboard • We must recycle • We must conserve water and energy We educate our crew and passengers that simple everyday actions make a big difference, such as reusing bath towels to conserve water and electricity. We involve the passengers and crew at the earliest stage of waste separation with visible and conveniently located recycle and sorting bins around each ship, asking for their cooperation in saving energy by conserving water, and turning off cabin lights and TVs when not in staterooms. Additionally, we ask passengers to keep their balcony sliding doors closed to conserve air conditioning, and offer robes upon request only to save millions of gallons of water and detergent each year. Energy Conservation Princess is committed to reducing our impact on the environment by decreasing the emissions from our ships and increasing fuel efficiency. Air Quality Princess monitors and reduces our air impact where possible, not only to comply with required regulations, but because it is our duty to foster clean air in the port communities where we operate. Reduced emissions largely stem from reduced energy consumption. 2009 Sustainability Report | 27 Our Planet Energy Use, Conservation & Air Quality Planet Princess at Work The Cape Eleuthera Island School The Cape Eleuthera Island School collects between 200 and 400 gallons of used cooking oil each week from Princess Cruises for their renewable fuels program. This collection of used cooking oil from Princess Cruises’ ships began over ten years ago. Once it is collected, the oil is brought back to the Island School processing lab on the Cape Eleuthera campus. Cooking oil prepared for collection A sign on Cape Eleuthera describes the program To date, the Island School has produced roughly 20,000 gallons of fuel for use in their fleet of vans, heavy trucks, generators, sawmills, air compressors, and personal vehicles. Juneau’s Boy Scout Troops During the Alaska cruise season for the past ten years, Princess has donated aluminum cans from its ships to Juneau’s Boy Scout Troops. The program generates more than $500 each week and has thus far raised more than $25,000 for the scouts. Princess donates tens of thousands of cans each year, and the troop uses the proceeds to fund camps, equipment and scholarships for its members. Princess routinely separates all recyclable materials — aluminum, glass, and metals — aboard each ship fleetwide. Recycling is just a part of the company’s environmental program, designed to protect the environment and minimize the ships’ impact on the communities we visit. 2009 Sustainability Report | 28 Our Planet Energy Use, Conservation & Air Quality Shore Power Princess pioneered the use of shore power in the cruise industry in 2001 when Juneau, Alaska became the first city to create a shoreside power connection. Currently nine of our ships feature this capability to turn off their diesel engines and literally “plug in” to a power supply in port. To create this power system, we have outfitted our ships with custom-built electrical connection cabinets that automatically connect the ship’s electrical network to the local electrical network ashore through a sophisticated system of cables, circuit breakers and control circuits. As a result, shore-based electricity runs all onboard services during the day-long calls. In 2009 shorepower was available in three North American Ports (Juneau, Seattle and Vancouver) all of which use hydro-electric power to produce the shore-to-ship electricity. Other ports in North America and around the world have or will launch this capability. Shore Power at Work With our shore power systems in Juneau and Seattle, we estimate that approximately 25 to 35 metric tons of fuel is eliminated per ship call by connecting to shoreside power, resulting in a significant reduction of fuel saved for the entire summer season. In Juneau, custom-built gantry and festooning equipment were designed to accommodate the 20 foot rise and fall of the tide and withstand 100 mph winds during the winter. The power cables enter the ship through hull doors cut into the side of each vessel to allow the joining of the power cables to the connection equipment in the engine room. In Seattle, a power cable winch was designed to hold the cables. Five flexible electrical cables enter the ship to connect with the vessel’s power equipment, housed in a specially built one-and-a-half ton cabinet. Cables connect to the ship with traditional, though quite large, plugs and sockets, adapted from the American mining industry. 2009 Sustainability Report | 29 Our Planet Energy Use, Conservation & Air Quality Managing Emissions and Efficiencies 2009 Energy Consumption We employ proper emission practices to reduce our environmental footprint in ports around the world. The following is a partial list of some of the environmental measures incorporated throughout the fleet: (GRI METRIC DESCRIPTION EN3, EN4 AND EN16) Practices • Maintain our engines according to manufacturer specifications in order to ensure efficient performance resulting in cleaner emissions GRI Metric Description EN3 — fuel used on ships IFO 682,154 MT (682,154,000 KG) MGO 50,898 MT (50,898,000 KG) TOTAL = 733,052,000 KG ALBDS 13,382,970 TOTAL KM 3,247,744 EN4 — energy used ashore Total kWH purchased from renewable source 5,946,080 (Princess Tours) EN16 — energy consumed Total CO2 Equivalent 0.3185 Kilograms/Available Lower Berths Kilometers (Kgs/ALB - Km) Refrigerants Total CO2 Equivalent 0.001555 tonnes/Available Lower Berths (MT/ALB) • Do not burn hazardous waste; we limit the burning of plastics • Prevent incineration of items that may contain heavy metals • Designate specially trained crew to inspect garbage prior to incineration and to monitor incinerator temperatures to confirm optimum combustion • Use low-sulfur fuel in accordance with laws and regulations in certain cruising areas • Voluntarily use low-sulfur fuel within three nautical miles of the California shoreline and while in port since January 2008 • Employ dedicated personnel responsible for servicing and repairing refrigeration equipment • Monitor leaks by conducting manual pressure and temperature checks as well as by using automatic monitoring devices. Types and quantities of leaks are recorded in a dedicated logbook • Cruising at slower speeds and planning more efficient routes reduces fuel consumption and emissions. Princess has made a concerted effort to educate ship captains and other navigation officers about the benefits that lower speeds provide. In addition, we participate in the Port of Los Angeles Voluntary Vessel Speed Reduction Program, which is aimed at decreasing vessel speed in an effort to help reduce air pollution. In 2009 we received the Port of Los Angeles Green Environmental Achievement Flag award for meeting the program’s requirements. Data 2009 Emissions by Type and Weight (GRI EN19) Emission Type Amount (kgs) Ozone-depleting substances 10,158 kgs 2009 Emissions by Type and Weight — Ship fuel per ALBD (GRI EN20) Type Amount SOx 0.792 Kgs/ALB CO2e 0.1725 tonnes/ALB CO2 0.1709 tonnes/ALB NOx 0.0036 tonnes/ALB PMs 0.0001 tonnes/ALB Acronyms ALB ALBD AWT GRI HFO IFO KG KW MGO MT Available Lower Berths Available Lower Berth Days Advanced Wastewater Treated Global Reporting Initiative Heavy Fuel Oil Intermediate Fuel Oil Kilograms Kilowatts Marine Gas Oil Metric Ton 2009 Sustainability Report | 30 Our Planet Energy Use, Conservation & Air Quality • Carnival Corporation & plc continuously evaluates engineering designs and consults with manufacturers to develop advanced approaches to propulsion systems when considering new ship construction • Princess utilizes a special silicone paint that reduces friction on the ship’s hull and therefore requires less fuel to travel the same distance. Also, maintenance is reduced due to less attachment of marine growth • Princess continuously refurbishes and updates our vessels to make them more efficient and to reduce fuel consumption and air emissions • We implement routine hull and propeller cleaning programs to reduce marine growth and resulting hull friction. These programs lower fuel consumption and therefore air emissions • We plan itineraries to reduce fuel consumption by evaluating routes, currents and weather patterns, and adjusting ship speed and departure schedules • We optimize the use of diesel generators on board to improve efficiency, and we use heat generated by the ships’ engines to heat water instead of relying on the ships’ boilers. This, too, cuts fuel consumption and exhaust emissions Systems • Opacity meters have been installed on all Princess ships. These meters continuously monitor particulate matter that exits ship stacks to ensure compliance with opacity standards The ships’ hulls receive a special silicone paint • Princess has implemented evaporator management programs aimed at optimizing the operation of fresh water evaporators to produce fresh water by utilizing the waste heat generated by the ships’ engines. This initiative reduces use of the ships’ boilers to produce fresh water • Princess is replacing existing incandescent lightbulbs with more efficient fluorescent and LED bulbs that potentially will lower energy costs per ship. Princess upgraded our Heating Ventilation and Air-Conditioning (HVAC) Control/Automation System with new control hardware and software to optimize the onboard climate and to minimize energy consumption and resulting air emissions. The systems are designed to control onboard HVAC temperatures more effectively 2009 Sustainability Report | 31 Our Planet Water Use & Conservation Water Use & Conservation Water-Conservation Princess continuously looks for new and innovative ways to conserve and reduce water use and we’re committed to reducing fresh water consumption without impacting passenger convenience. As part of our ISO14001-certified EMS we monitor the amount of water consumed on each ship. Each vessel works toward a company goal of reducing water use, and each employee participates in a training process to reduce, protect and conserve water. Reducing water use is also economically beneficial as it is more cost effective to use less water than to continuously purchase, desalinate and treat water. Recycling and Saving Water Princess uses a number of ways to recycle and save water such as: • Retrofitting older ships and installing more efficient laundry machines and dishwashers on new ships Water Sources The potable (drinking) water used aboard Princess vessels is either purchased shoreside or generated on board from sea water using specialized desalinization equipment. Shoreside potable water is purchased from port water utilities and stored aboard the ship in designated tanks. Whether the potable water is generated from sea water or comes from shoreside facilities, it must meet the U.S. Centers for Disease Control requirements, which are incorporated into our company procedures and management systems. Desalination is a process of removing salt from ocean water using waste heat from the ships’ engines. 2009 Water Withdrawn By Source (GRI EN8) Type Water Produced by Ship Quantity (Metric tons) 3,995,393 Water Bunkered 1,111,320 Total Consumed 5,106,713 • Collecting condensate water produced by heating, ventilation and air conditioning chillers and reusing it as technical water • Promoting a towel reuse program onboard, which encourages guests to not replace towels after a single use. Not washing and drying towels daily helps save water and energy, and reduces wastewater and use of chemicals • Installing aerators on faucets and low-flow shower heads reduce water flow • Installing improved systems in public restrooms, which shut off water instantly, saving 30 percent to 50 percent more water • Using vacuum-pressure toilets fleetwide, which use less water than traditional flush toilets 2009 Sustainability Report | 32 Our Planet Wastewater & Waste Management Wastewater & Waste Management Wastewater Management Princess strives to improve the quality of discharged wastewater as well as reduce wastewater volumes, thereby reducing our impact on the marine environment. Princess’ ships discharge as far from land as possible given geographical constraints based on our itineraries. In environmentally sensitive areas such as Alaska, national parks or marine sanctuaries, additional discharge limitations are met. Blackwater and Graywater Blackwater and graywater are collected in designated tanks segregated from other waste streams. We process and treat blackwater through a marine sanitation device (MSD), certified in accordance with the U.S. Coast Guard and international regulations. The on-board blackwater treatment consists of settling, aeration and disinfection. Following treatment, the disinfected blackwater is sent to holding tanks or discharged overboard once an approved distance from shore is reached. This treatment is similar to how land-based municipal wastewater treatment facilities operate — settling, aeration, and disinfection, followed by permitted discharges to bodies of water such as rivers and oceans. Wastewater Types & Descriptions Wastewater Type Description Ballast Water Sea water pumped into or out of the ship to adjust ship’s stability Bilgewater Water collected in engine room spaces, such as from condensation, valve and pipe leaks Blackwater Sewage and waste from medical center drains Graywater Wastewater from sinks, drains, showers, galleys, laundry Permeate Treated wastewater from Advanced Wastewater Treatment System (Combined Blackwater and Graywater) 2009 Wastewater Discharges (GRI EN21) Type Discharged To Sea (metric tons) Discharged To Shore (metric tons) Treated black water — MSD Type II 372,499 0 Untreated gray water 3,027,746 47,174 Untreated black water 288 0 1,471,644 0 Ballast water 11,440 0 Bilgewater 49,644 0 Permeate discharged (treated black water from AWTS) 2009 Sustainability Report | 33 Our Planet Wastewater & Waste Management Advanced Wastewater Treatment Systems Twelve Princess ships treat the sewage and accommodations graywater with Membrane Bio Reactors (MBRs). Sewage (also known as blackwater) is delivered directly from the ships’ vacuum system EVAC tanks to the MBRs. Accommodations graywater from the various sink and scupper drains is delivered from the dedicated graywater collection tanks and then to the MBRs buffer tanks where the grey water is provided with some aerobic aeration through the usage of blowers. The graywater and blackwater are then mixed into a common line before entering the MBRs. Graywater from the galleys and laundry is not treated by the MBRs and is held in double bottom tanks. The MBR system has a 1st Stage Screen Press Waterlink which filters paper and other solids called “screenings” out of the feed. The screenings are collected from the dry waste outlet and into a bagging unit. The bagging is manually removed periodically throughout the day and delivered to the incinerator for incineration while at sea. The feed then flows into the 1st Stage of the Bioreactor. The 1st Stage of the Bioreactor operates as an aerobic biological treatment system. Incoming feed enters into a high strength biomass within the bio-reactor, where there is a diverse microbial ecology that breaks down and consumes the raw sewage and grey water mix. Air supplied to the biomass via fine-bubble diffusers also lowers the chemical oxygen demand (COD) of the waste. From the 1st Stage of the Bioreactor further filtering is completed in each of the two Russel Type Bag Filters. Any further solids are then redirected back to the Screen Press Waterlink, and the remaining filtrate is pumped to the 2nd Stage of the Bioreactor where further aeration is completed. The 2nd Stage of the Bioreactor is then pumped down via cross-flow pumps which deliver feed to the membrane modules. The final effluent is then pumped from the membranes into a permeate tank where it is then circulated through an Ultra Violet (UV- System) for further disinfection before it is finally pumped overboard. These systems are tested by the environmental officers using onboard laboratory testing equipment. Additionally, samples are sent ashore frequently for analysis to ensure the systems are performing optimally and consistently. Membrane Bio Reactor Membrane bank and single membrane detail Bilge Water The area of the ship at the very bottom of the hull is known as the bilge, which is where water collects from various operational sources such as water-lubricated shaft seals, propulsion system cooling and other machinery. All engine and machinery spaces collect oil that leaks from machinery fittings and engine maintenance activities. To maintain ship stability and eliminate potential hazardous conditions from oil vapors in engine and machinery spaces, the bilge spaces periodically are pumped dry. This oily water/bilge water is pumped into designated on-board storage tanks. Princess treats and discharges bilge water according to international regulations, which require that all ships have equipment installed on board that limits the oil content of discharged bilge water to 15 parts per million (ppm) when “en route” (meaning the ship is underway or on its way), and provided the ship is not in a special area where discharge of bilge water is prohibited. Oil not meeting this criteria and oily residues / sludges must be offloaded shoreside. Princess’ discharge policy follows international regulations, and we require that discharges occur outside 12 nautical miles from land, marine sanctuaries and restricted areas. The bilge water is treated on board using 2009 Sustainability Report | 34 Our Planet Wastewater & Waste Management internationally approved oily water separators that utilize gravity, centrifugal force and / or flocculation to reduce the oil content to less than 15 ppm. In 2002, Princess began integrating “white boxes” — a voluntary monitoring and control device which bilge water passes through prior to being discharged overboard. If the white box reading indicates 15 ppm or greater of oil in the system, it sounds an alarm and automatically stops the discharge, redirecting the flow to storage tanks on board. Currently all our ships are equipped with this system. The ship’s Occupational Safety and Environmental Officer checks these white boxes to ensure compliance. The white box’s digital recorder records the oil content, volume, date and time, and latitude and longitude of all overboard discharges. Employees responsible for the operation and maintenance of this equipment are specially trained and overseen by a licensed engineer. Ballast Water Ballast water is often considered one of the biggest threats to the environment. It is for this reason that Princess Cruises is leading the way to find the best technology available for treating ballast water. Princess Cruises now has four ships fitted with ballast water treatment systems; Regal Princess, Sea Princess, Star Princess and Coral Princess. Princess has made major commitments to this initiative in terms of capital expenditure and manpower. In 2000, Regal Princess was the first cruise ship ever equipped with a ballast water treatment system and the first to conduct testing using an onboard fully equipped mobile laboratory. In 2001, Sea Princess and Star Princess were installed with second generation ballast water treatment systems. Coral Princess was installed with the latest developed system in 2004. The operational experience and testing from the previous three systems were applied to the most recent system aboard Coral Princess. Princess Cruises has most recently reaffirmed its commitment to continue with the U.S.C.G. Shipboard Technology Evaluation Program (STEP) for the Coral Princess. The STEP program is designed to provide shipping companies with an opportunity to obtain interim approval for Ballast Water Treatment Technology in exchange for corporate investment in installing and testing leading treatment technologies. 2009 Sustainability Report | 35 Our Planet Wastewater & Waste Management Garbage and Waste Management Waste Reduction and Recycling Initiatives Princess has a formalized garbage and waste management program that requires each ship to follow an established fleetwide written policy with procedures for collecting, storing, processing and disposing of all waste streams generated on board — as well as complying with local and international laws. We seek to recover, reuse or recycle waste when possible. Solid Waste Princess manages solid waste onboard similar to how it is managed on land, except for food, which is ground and discharged overboard at an approved distance. We segregate solid waste to be recycled shoreside, incinerated onboard, ground and discharged overboard (food). Each ship is equipped with incinerators, pulpers and compactors to process onboard waste. Employees are trained in reducing and sorting materials into labeled bins to ensure proper processing and disposal. Effective waste management requires a comprehensive program of awareness, action and commitment to continuous improvement. As members of the Cruise Lines International Association (CLIA), we have endorsed policies and practices based upon the following fundamental principles: • Full compliance with applicable laws and regulations • Maintaining cooperative relationships with the regulatory community • Designing, constructing and operating vessels so as to minimize their impact on the environment • Embracing new technology • Managing water discharges Recycling Princess recycles glass, aluminum, scrap metal, cooking oil, petroleum oil, metal, toner cartridges, electronics, and refrigerants. Recycling containers are placed throughout each ship for passenger and crew use. Designated crew sort trash to ensure all recyclable items are segregated for recycling. After sorting, materials are crushed and baled and stored for shoreside recycling. Princess’ shoreside environmental team works closely with vendors to ensure recyclable items are indeed recycled where possible. • Conserving resources through purchasing strategies and product management • Minimizing waste generated and maximizing reuse and recycling • Optimizing energy efficiency through conservation and management • Educating staff, guests and the community Waste generated from our ships includes everything from used paint, batteries and cardboard packaging to aluminum cans and leftover food. 2009 Sustainability Report | 36 Our Planet Wastewater & Waste Management 2009 Amount of Waste Disposed (GRI EN22) Type Hazardous (metric tons) Non-Hazardous (metric tons) Shoreside Disposal 725 22,164 Recycled 197 24,123 Sea Discharge 0 15,240 Shipboard Incineration 47 39,195 Incineration Princess does not operate our incinerators in port. We do not dispose of incinerator ash at sea. When incineration does take place, a variety of important information, including the quantity and type of waste, date of incineration, incineration start and stop times, and ship’s position are logged in accordance with regulations. As new ships are introduced, we test incinerator ash quarterly the first year and annually thereafter for a number of heavy metals including arsenic, barium, cadmium, chromium, lead, mercury, selenium and silver. Not all solid waste generated onboard can be incinerated. Solid waste which is not able to be incinerated is landed. Disposal At Sea Princess does not dispose at sea incinerator ash or any nonfood solid waste, such as glass, china or metal. We do not discharge in marine sanctuaries and restricted areas. Aside from bones, coffee grounds and certain fruit parts, such as pineapple husks, we grind food waste to 25 millimeters or smaller in size per international regulations and discharge it at sea outside 12 nautical miles from shore. This process is carefully monitored to ensure that nonfood wastes, such as plastics or metals, do not enter the ocean. Similar to the incineration process, Princess logs the quantity of food waste disposed at sea, date, start and stop times, and the ship’s position in accordance with regulations. Hazardous Waste Management Princess generates a limited amount of hazardous waste. Most of Princess’ hazardous waste is generated from photo processing operations, with other hazardous wastes resulting from maintenance activities such as painting and light bulb replacement. We developed a custom database system to track the waste quantities, types, and location it was landed, among other details. This facilitates reporting to government agencies and helps to monitor trends and performance. Hazardous waste generated onboard is handled using procedures and technologies allowing adequate collection, storage and subsequent disposal. All hazardous waste is stored in a locked metal cage. Additionally, the drains in the photo laboratories have been permanently sealed to prevent spills or leaks from draining into greywater system. Princess has tested hazardous wastes in the past to determine each waste stream’s hazardous properties. Based on test results, Princess’ waste contractors determine the appropriate shipping and disposal methods. Chemicals The Safety Department at Princess maintains an electronic database known as the Chemical Management System, which includes acceptable chemicals for use onboard our ships, and the procedures for using and handling them. We test new environmentally friendly products, such as cleaning products, to determine if we can achieve the same efficiencies while reducing environmental impacts. 2009 Sustainability Report | 37 Our Planet Wastewater & Waste Management To eliminate the hazardous chemical Perc, all dry cleaning machines were removed from the fleet in 2009 and 2010. We have substituted the dry cleaning machines with wet cleaning systems which do not use any hazardous chemicals. Photo Waste Photo developing fluid is processed onboard to remove the silver content, which is the hazardous component, and this is recycled. Medical Waste We have strict procedures for the handling, processing and disposing of medical waste. Medical sharps are collected in sharps containers and are landed ashore for proper disposal. Expired medications are generally landed ashore to the supplier or a waste disposal contractor. Batteries We collect consumer-type batteries (e.g., alkaline, lithium) from guests and crew through the use of small collection containers in strategic locations onboard. Batteries also are sorted from garbage and recycled ashore. Dry-cell batteries are manifested to a licensed firm for recycling to prevent these items from being sent to a landfill. Mercury-Containing Lamps Any lamps that contain mercury are collected for disposal as hazardous waste. We properly handle, store and dispose of these lamps as mercury. Used mercury-containing lamps are collected and stored in designated areas inside labeled containers with any necessary padding to prevent breakage. 2009 Sustainability Report | 38 Our Planet Operating in Sensitive Areas Operating in Sensitive Areas Alaska Each season, Princess reviews our operations in sensitive areas in which we operate. As one of the largest cruise operators in Alaska, we are committed to employing a wide range of programs to help protect this pristine environment. As mentioned earlier in the report, in 2001 we were the first cruise line to create a shore power capability which helped to reduce air emissions in Juneau, Alaska. The introduction of shore power there was an innovative and cooperative effort between numerous entities including the local power companies and Princess. Working together, an infrastructure was developed which used the city’s surplus hydro-electric power to supply electricity to our ships, enabling us to shut down our diesel-powered engines while in port. Prior to each Alaska summer season, a management team visits a variety of Alaska officials to discuss regulatory requirements and best practices for operating our ships while in these waters. This information is provided to each ship in advance of their first call in May. In addition, at the start of each cruise season the technical teams on our ships check the engines to make sure they are operating at the highest level of efficiency to reduce air emissions during the season. A shoreside operations manager visits each ship for a full day of environmental briefings with shipboard management to reinforce Princess’ commitment to responsible cruise practices in Alaska. Despite all of these efforts, we received one notice of violation for visible air emissions in 2009. Princess has clear guidelines to avoid marine mammal strikes, and we follow established procedures if marine mammals are sighted nearby including altering the ship’s course, reducing speed, utilizing additional bridge lookouts and notifying appropriate authorities and shoreside personnel. We monitor feeding and migration patterns of whales known to be found in areas where we operate, and adjust course as needed. Our nautical officers also participate in whale protection training in conjunction with the U.S. National Oceanic and Atmospheric Administration (NOAA). Right whales in protected areas (including in the Northern and Southern Atlantic Ocean) are protected with similar procedures. Specific to seal protection, during seal-pupping season (early May to mid-June) our practice is that our ships not approach closer than 500 yards from ice flows where seals reside. At all other times our ships do not approach closer than 100 yards. 2009 Sustainability Report | 39 Our Planet Operating in Sensitive Areas Protecting Endangered Wildlife Some souvenirs on sale in tourist areas contain illegal wildlife products. The purchase of such items undermines local and global wildlife conservation efforts. Passengers and crew are notified that if they are found in the possession of these items, they risk seizure of the goods and sizeable fines. A sample of such ‘souvenirs’ that are prohibited from entry into the United States and countries signatory to the Convention on International Trade in Endangered Species (CITES) include: Antarctica Princess respects Antarctica as a special natural wilderness preserve and has demonstrated this through our responsible visits in the past. Since 2003 Princess has been bringing passengers to the unspoiled region of Antarctica and travel here is carefully regulated under the International Antarctica Treaty and U.S. Laws which govern our actions. We are members of the International Association of Antarctica Tour Operations (IAATO) which sets guidelines and monitors the activities of ships visiting the region. To protect this pristine destination: • The ship carries two experienced Captains and other mariners and also two experienced Ice Pilots • A senior shoreside manager is deployed to Punta Arenas, Argentina to monitor the ship’s operation, provide local support and serve as a direct liaison with the Marine Rescue Coordination Centre • We observe all marine wildlife watching guidelines. • We spend approximately 90 hours in the Antarctic Treaty Area waters during each visit, during which time passengers observe the environment and wildlife from the ship, but passengers are not landed ashore • Reptile skins (crocodile and caiman which are stuffed or made into watchbands, handbags, belts and/or shoes) • All sea turtle products (stuffed turtles, tortoiseshell jewelry and combs, food products, cosmetics, leather items) • Some pangoline leather products (often labeled ‘anteater skins’) originating in Thailand, Malaysia and Indonesia • Elephant ivory products • Whalebone products such as carvings and scrimshaw work on whale teeth (unless a documented antique) • Birds and feathers • Wild animal furs and skins including handbags, sealskin toys, purses, wallets, key cases etc. • Jewelry and ornaments made from black corals and seashells • Plants and plant products (orchids, cacti and cycads) • We have an emergency action response plan • The ships that visit there have state-of-the-art navigational equipment, with multiple back-up systems covering these areas 2009 Sustainability Report | 40 Our Planet Compliance Compliance Auditing Incident Reporting Princess uses an electronic database to manage various tasks related to shipboard management, one of which is to record environmental incidents. Any violation of applicable laws or company policy is documented in this system, which then sends an automated notice to appropriate shoreside management. Examples of reported environmental incidents range from small piece of plastic furniture blown overboard by the wind to an air emission exceedence. Employees and passengers can report environmentrelated concerns and observations through a special Carnival Corporation & plc hotline: 1-888-290-5105 (tollfree in North America) or 1-305-406-5863 (from all other locations). Carnival Corporation & plc coordinates investigations and responses for all operating lines through the corporation as well, and has a dedicated compliance website, www.carnivalcompliance.com, that is administered by an independent third party. All options allow for the individual making the complaint to remain anonymous if they wish. Princess undergoes a comprehensive integrated auditing process which includes environmental audits every year. In 2009 Princess was subjected to 17 internal shipboard environmental audits and four external shipboard audits — plus our shoreside headquarters. These audits are performed to ensure we comply with the certification requirements as established by the ISO Standard 14001:2004 and all company and environmental corporate standards, as well as U.S. Coast Guard, flag state administrations, port state administrations and classification societies. External environmental audits are performed by our classification societies. Internal audits are performed by a dedicated group of Princess auditors who are responsible for verifying compliance with international rules and regulations as well as Princess’ policies and procedures. Environmental Reporting Princess is required to complete and submit many reports to various government agencies both inside and outside the United States. The majority of these reports pertain to hazardous waste management, however, there are a few related to other environmental issues. 2009 Spills (GRI EN23) Incident Type Number Of Incidents Quantity Fines Hydraulic oil leak 1 2 liters No Stern thruster leak 3 125 liters No Fuel oil spill while bunkering 1 0.5 liters No Sludge spill 1 300 liters No 2009 Sustainability Report | 41 Our Employees No single factor is more important to the success of our company than our employees, who deliver great vacations to our passengers. At Princess we know that to remain an employer of choice in our expanding industry we must not only offer competitive wages and benefits, but also provide our employees with a safe and fair work environment, opportunities for training and advancement, and recognition for achievements. Our primary goals in 2009 were to provide enhanced management tools for employees, increase training opportunities and expand our health and wellness efforts. Countries of origin for sea-based employees Total onboard staff by region Percentage Working for Princess Cruises Asian (other) 3% Our Shipboard Organization European 15% The Princess Cruises shipboard team is an international group of employees who come from nearly 80 nations and work together with enthusiasm and professionalism to deliver memorable vacations to our passengers. Our shipboard employees choose to live and work at sea because of the opportunities it offers to travel, meet people and improve their professional skills. Additionally, working at Princess offers many shipboard employees an opportunity to earn higher wages than are typically available in their home countries, enabling them to better support their families and improve their quality of life. Indian 12% Indonesian 5% Italian 4% Caribbean 1% Mexican 5% Filipino 42% South African 2% Thai 3% UK 4% USA / Canada 4% Roles and Responsibilities On board, our ships are managed by three interdependent areas: the deck, engine and hotel departments. The captain has responsibility and authority for safety, environmental, security and port and nautical operations, while the chief engineer, hotel general manager and staff captain have primary reporting responsibility to the captain for responsibilities related to those areas. The captain reports to the shoreside Executive Vice President of Fleet Operations. Total workforce by employment type Staff Type Male Female Total 879 1,460 2,339 Seasonal employees 1,296 1,116 2,412 Total 2,175 2,576 4,751 On board at any time — — 14,629 On leave at any time — — 7,360 18,579 3,410 21,989 Shoreside Staff Regular employees Shipboard Staff Total 2009 Sustainability Report | 42 Our Employees Working for Princess Cruises Deck The deck department is composed of officers and employees who navigate our vessels, provide shipboard security, maintain the non-mechanical areas of our vessels’ exteriors and interiors, and ensure that passengers and supplies are transferred safely between ship and shore. Deck officers also manage shipboard emergencies and communicate with maritime authorities and regulators. Additionally, this group manages operational aspects of the ship’s safety systems. The captain is ultimately responsible for navigation and coordination of the ship’s operations, including ensuring the health, safety and welfare of our passengers and employees. Hotel By far our largest shipboard department is the hotel operations department. Similar to large land-based resorts, our hotel operations staff oversees the management of areas such as passenger staterooms, public lounges and dining areas for both passengers and employees. The hotel operations department is composed of various sub-departments including passenger services, food and beverage, accommodation, entertainment, spa, gift shop, casino, information systems, youth programming, shore excursions, provisions, and photo, as well as medical services. All of these departments work together to ensure we create a relaxing and memorable vacation experience for our passengers. Engine Each ship also employs officers and employees of the engine department who are responsible for operating the vessel’s engines and maintaining the engine room and hotel and food catering equipment. The engine control room is staffed 24 hours a day by licensed engineers who monitor all on-board operating systems, from propulsion and heating, ventilation and air-conditioning systems to the power plant, desalination and environmental systems. 2009 Sustainability Report | 43 Our Employees Working for Princess Cruises Our Shoreside Team We have a combined total of approximately 2,400 year-round employees and 3,000 seasonal employees who work at our shoreside locations in Santa Clarita, CA; Fort Lauderdale, FL; Seattle, WA and throughout Alaska. The numbers also include sales representatives who are located across the U.S. and Canada. Roles and Responsibilities Approximately 1,800 employees work in our headquarters office located in Santa Clarita, just north of Los Angeles. The corporate office comprises marketing, human resources, sales management, hotel and marine operations, entertainment, shore operations, medical, information technology, finance and many other areas. Santa Clarita is also home to our main customer service center and call center, which is supplemented by an additional group of reservations staff in our Seattle office. The Seattle operation provides primary oversight and support for the operation of our Alaska cruisetour program, along with other cruisetour products offered in destinations around the world. Our office in Fort Lauderdale services our operations in the Caribbean and Atlantic regions, and our nearby warehouse operation supports the provisioning of our ships. In nearby Dania Beach, FL is Global Fine Arts, which supports the fulfillment of our fleet’s onboard art auction program. We also have full-time shore-based employees across Alaska, who work at our five wilderness lodges and hotel, and support our rail and motorcoach operations throughout the interior of the state. Most of the people who staff our Alaska operations during the Alaska summer cruisetour season are hired seasonally. 2009 Sustainability Report | 44 Our Employees The Workplace The Workplace Employees Working Onboard The shipboard environment is unique in the respect that our crew not only works as a team to provide a great vacation experience for our passengers, but they also live together onboard the ships for months at a time. Given the long hours and demands of shipboard life, we strive to make it as pleasant as possible, providing onboard recreation facilities and comfortable amenities. Freedom of Association Our shipboard employees are offered written employment contracts based on their positions. Employment contract terms differ between officers, staff and crew, and are based primarily on the needs and requirements of the specific hiring departments. Princess complies with working and living condition requirements and often exceeds international standards. Shipboard staff are covered by some form of union agreement or union-approved terms and conditions, depending upon rank and nationality. In none of our operations are the rights to exercise freedom of association or collective bargaining at significant risk. Seafarer Agreement The Seafarer Agreement sets forth basic conditions of employment, including position, wages, work hours and duration of contract for shipboard employees. It also informs the seafarer of his or her rights concerning grievances and the right to arbitrate any claims against Princess. Seafarers are not subject to state worker compensation laws, but instead can enter into arbitration with the company for negligence, improper working conditions, the right to receive room and board while ill and medical care and wage claims. Filipino seafarers’ hiring and employment contracts are regulated by the Philippines Overseas Employment Agency. Before they leave the Philippines, Filipino seafarers sign a contract that sets forth basic conditions of employment including position, wages, hours and contract duration. Anti-discrimination Policy Princess has well developed and robust policies against discrimination. All employees, both shoreside and shipboard, receive training on these policies. Our company also has extensive complaint and grievance procedures, including direct access to senior shipboard and shoreside management, to ensure that all employees can report concerns about discrimination. All complaints are investigated and resolved as appropriate. There is no retaliation for the good-faith reporting of discrimination concerns. Labor Standards Princess maintains crew working hours and resting periods that are typical for the marine industry and follows the conventions of the International Labor Organization (ILO). The ILO is the global body responsible for drawing up and overseeing international labor standards. Working with its member states, the ILO seeks to ensure that labor standards are respected in practice as well as principle. The ILO’s Maritime Labor Convention 2006 provides comprehensive rights and protection at work for the world’s more than 1.2 million seafarers. The convention sets out seafarers’ rights to decent working conditions on a wide range of subjects and aims to be globally applicable, easily understandable, readily updatable and uniformly enforced. 2009 Sustainability Report | 45 Our Employees The Workplace Princess is committed to compliance with all applicable ILO conventions and flag state regulations. Examples of ILO conventions include ILO Convention No. 180, concerning Seafarers’ Hours of Work and the Manning of Ships; ILO Convention No. 164, concerning Health, Protection and Medical Care for Seafarers, and ILO Convention No. 166, concerning the Repatriation of Seafarers. Princess meets or exceeds all standards established by these and similar regulations. ILO Convention No. 180 specifically addresses hours of work and rest, and minimum age for shipboard employees. The Seafarer’s Agreement or Officer’s Agreement, signed by each shipboard employee or officer, specifies the hours of work, wage and overtime rates as well as other pay and incentives available to the employee. While permitted by ILO Convention No. 180, Princess does not employ any shipboard employees under the age of 18. Many of the standards of the existing ILO conventions have been rewritten into the Maritime Labor Convention 2006 (MLC 2006). Various agreements, including collective bargaining and other union agreements, company agreements and government-mandated agreements, provide minimum notice periods for any shipboard job reductions based upon significant operational changes. The details depend upon rank, nationality and seniority. Given the way shipboard assignments work, any significant operational change would have to affect a large portion of the fleet before there would be any practical consequence at the crew member level. The collective bargaining agreements between Princess and the unions that represent our employees include commitments to worker health and safety. Compliance Reporting Carnival Corporation & plc’s compliance reporting system allows all of our employees to submit reports, anonymously if desired, by telephone, via a dedicated web site or by regular mail to the general counsel’s office. Information and details of the reporting system are made available in the Princess Cruises employee handbook and on the employee intranet site, and are posted throughout Princess ships, employee areas and shoreside offices. Any employee may submit a good-faith complaint concerning possible improprieties by employees, customers, vendors / contractors, external stakeholders or others to our general counsel confidentially or directly to company management, including the employee’s supervisor or department head, without fear of dismissal or retaliation. The scope of matters covered by the policy of achieving compliance with all applicable laws and regulations, accounting standards and internal controls includes fraudulent activities, accounting and reporting concerns, environmental, safety and security issues, and employment-related areas. The latter category includes issues related to harassment or discrimination of any kind, concealment of any harassing or discriminatory activities, or retaliation for reporting any illegal or improper activities. Shipboard Living Environment & Crew Welfare We believe that creating a pleasant and supportive work environment greatly enhances the enthusiasm our crew brings to their job of serving our passengers. Sleeping Accommodations Officers sleep in single-berth cabins and are welcome to have spouses and children sail with them at no charge (up to certain limits as set forth in the Relatives Travel Policy). Crew members are paired by gender and share a room. In 2009 we enhanced the bedding in crew accommodations and placed DVD players in each crew cabin. Dining We prepare three healthy meals for officers and crew each day, employing chefs trained in world cuisines who can meet the needs of the many cultures of the staff. We have particularly focused on providing an enhanced food selection with many healthy alternatives. 2009 Sustainability Report | 46 Our Employees The Workplace Recreation & Facilities The crew on each ship have their own gym, pool, library, Internet café, bar and recreation room. There is also a dedicated crew shop where crew members can purchase sundries, snacks, souvenirs and other items. Other enhancements during 2009 included creating dedicated training rooms on most ships, upgrading gym equipment, installing flat screen TVs in the crew dining rooms, providing low-cost Wi-Fi and Internet, and creating designated crew smoking areas. Crew Travel We want to ensure the transition of a crew member leaving or joining a ship is smooth and stress-free. Our Crew Travel Services team coordinates travel and accommodations for crew members arriving to or leaving their assignments. Crew Travel Services strives to make the travel to and from our ships as smooth and comfortable as possible. We have also invested in an automated scheduling program, which allows our crew members to receive their next assignment before they leave the ship from their current assignment. This allows for planning — both for our company and for our crew and their families. Employees Working Shoreside Freedom of Association We strive to ensure fair, progressive, and individualized treatment for every employee. We believe in open and honest communication with employees about all aspects of their work environments, and in providing good working conditions and competitive wages and benefits. We greatly value our ability to work directly with our employees and firmly believe the best interests of our employees can be served without third-party intervention. Our shoreside employees are not covered by collective bargaining agreements. In none of our operations are the rights to exercise freedom of association or collective bargaining at significant risk. Anti-discrimination Policy Princess has well developed and robust policies against discrimination. All employees, both shoreside and shipboard, receive training on these policies. Our company also has extensive complaint and grievance procedures, including direct access to senior shipboard and shoreside management, to ensure that all employees can report concerns about discrimination. All complaints are investigated and resolved as appropriate. There is no retaliation for the good-faith reporting of discrimination concerns. All of these policies are described in the employee handbook available on the shoreside intranet site. As with our shipboard team, all employees are encouraged to make use of our compliance reporting hotline to report improprieties by customers, vendors / contractors, external stakeholders or others. 2009 Sustainability Report | 47 Our Employees Health & Wellness Health & Wellness Employees Working Onboard To create and sustain the gracious, warm and welcoming atmosphere that makes our cruises so memorable, shipboard employees are on duty around the clock to serve and entertain our passengers while still maintaining working hours and rest periods that are typical for the marine industry. Given the technical demands of shipboard life, we do everything possible to make our employees’ downtime as pleasant as possible. Our programs include: • Recreational opportunities: Life at sea is busy, but shipboard employees also enjoy time for recreation. Each ship has a crew recreational committee that meets regularly to organize a variety of activities such as parties, dances, bingo nights, celebrations and sporting events. In addition, each ship is equipped with a crew gym and crew training center, offering free training programs to further enhance employees’ professional and personal skills. All shipboard employee accommodations also are equipped with TVs and VCRs or DVD players. • Medical care: We provide our crew with free medical care while onboard our ships. Our onboard medical department offers office hours specifically for crew members free of charge. We also have a Health at Sea program aimed at promoting general health concepts to the crew, including important topics such as high blood pressure, alcohol use, diabetes, and HIV. The program also features a “Quit Completely” campaign, which helps those crew members who smoke drop the habit. Crew members are also provided with flu vaccinations. • Shore tours: Princess encourages shipboard employees to enjoy the shore excursions and activities offered to passengers, providing an opportunity to experience our destinations firsthand. During their time off, our crew members may take complimentary or reduced-rate tours offered through the shore excursion department on a space-available basis. • Accommodating religious beliefs: With such a diverse employment base, Princess respects all religious beliefs and allows employees the freedom to practice their chosen faiths on board. We have undertaken a variety of initiatives to create a safe and healthy workplace and encourage healthy behaviors. From flu shots to smoking cessation programs, fitness challenges to nutritious meals, we want to make healthy living an easy choice. Employees Working Ashore Princess is committed to the health and wellbeing of our shoreside employees for their own benefit as well as that of the company. Health and wellness programs help attract and retain top talent. Furthermore, a healthy workforce is more energetic and productive, and happy employees provide better customer service, thereby contributing to our company’s overall financial performance. Beyond offering subsidized health insurance, we take steps to ensure our shoreside workforce stays healthy. Our programs include: • Complimentary health screenings: Employees enrolled in our medical plan are encouraged to complete a health risk assessment to understand their risk of contracting certain illnesses and diseases • Stress relief and fitness programs: Princess works with local fitness companies to provide low-cost classes and memberships including weight training, cardiovascular exercise and yoga • Complimentary workshops throughout the year on such topics as weight loss and skin cancer prevention • Smoking cessation programs 2009 Sustainability Report | 48 Our Employees Recruitment & Retention Recruitment & Retention Recruitment and retention are strategic priorities for Princess Cruises. In such a customer-focused business, our workforce is the public face of our company, and is directly responsible for passenger satisfaction. Our employees must fulfill their roles as brand ambassadors who can adapt and evolve with the company as our needs and those of our guests change. Employees Working Onboard Many of our employees have been with us more than 10 years; in fact, it’s not unusual to celebrate 30 or even 40 years of service with the company. Since experienced employees are more productive than new hires, our programs aim to attract, develop and retain the best crew and staff. In 2009, 91 percent of our crew members completed their contracts and 93 percent were on their second or later contract. We start by hiring qualified employees who are enthusiastic and passionate about hospitality and guest service. We then seek to retain our existing team members because experienced employees are more productive and understand our protocols. Recruiting and training new employees also is expensive, so we devote significant resources to listening to and enhancing the workplace for our existing, valued workforce. Officers Princess is fortunate to have a strong supply of officer applicants. To recruit and retain the best officers, we’ve forged strong relationships with top naval schools and merchant marine academies in the United Kingdom, Italy and other regions within Europe. Hotel officers and our top-level hotel and restaurant staff are recruited from hospitality schools across Europe, North America and Asia. Our marine and technical officers are covered by collective bargaining agreements. It is not uncommon for our officers to maintain a commitment to Princess for long portions of their careers. Crew We hire most shipboard employees through employment agencies, also known as manning agencies, most of which are licensed in their countries. Princess recruits qualified employees from nearly 80 countries. These agencies are located in various countries around the world, and they locate, prescreen and interview potential employees on our behalf. All hiring decisions are made either by a Princess representative or by a person designated by Princess within a third-party agency. We audit these manning agencies to monitor their job assignment processes, recordkeeping, preemployment screening and post-employment followup. We interview crew aboard the ship about their recruitment process. Detailed crew employment records — including proof of age — are maintained both in the local recruiting office and in our Fleet HR database to monitor compliance with our employment guidelines. In accordance with MLC 2006, although not yet in force, we have enhanced audits of our manning agencies in line with the convention’s requirements and our own expanded initiatives. The minimum age of employment in our fleet is 21, except for cadets in training and a limited number of entertainment staff for whom 18 is the minimum age. Princess Cruises does not employ child labor and none of its operations have been identified as having significant risk of incidents of child labor. 2009 Sustainability Report | 49 Our Employees Recruitment & Retention All crew sign agreements, which they have been given an opportunity to review well in advance of joining the vessel, and which explain their compensation and other entitlements. Ships are in port every few days and ample communication methods are available onboard to employees. We have not identified any operations as having significant risk for incidents of forced or compulsory labor. For the 2009 calendar year, we had a total of 4,623 shipboard employees sign off at the end of their contracts and not return, which equates to a turnover rate of 17.8%. Retaining Qualified Employees While recruiting top candidates is a strategic priority, retaining them is even more important. Like every company, we are challenged to keep our best performers. This is especially true in a shipboard environment, which requires officers and crew to leave their family and friends for extended periods. We strive to promote from within for all officer and crew functions, offering opportunities for advancement. Often, crew members with five years of experience in our fleet may advance to supervisory positions. Our retention efforts include such initiatives as: • Professional development training and advancement • Enhanced crew scheduling tools to provide advance notice of what ship they may be assigned to during specific periods • Comfortable living environment and amenities • Responsiveness to crew suggestions through a formal feedback program reviewed by senior shoreside executives • Formal recognition of contributions by crew members Employees Working Ashore Similar to our shipboard programs, retaining our best shoreside employees is a key priority for Princess Cruises. As part of our commitment to providing long-term career opportunities for employees who perform well, we have in place a job transfer system for internal employees. Opportunities and careers in hospitality and tourism are attractive choices for high school, travel school and college students, and we are fortunate to have a steady supply of qualified applicants. We recruit staff through job fairs, online recruitment and staffing agencies. We also offer summer internships for college and graduate school students interested in our industry. Our minimum age requirements exceed all applicable laws. Shoreside employees of course have easy recourse to governmental agencies. We have not identified any operations as having significant risk for incidents of forced or compulsory labor. In 2009 shoreside employee turnover (excluding Alaska seasonal employees) was 11.97%. Our practices with regard to job reductions are consistent with local law and practice. Diversity The cruise industry has had a long tradition of a diverse workforce, which has added a richness to the cruise vacation product, and Princess benefits from diversity among all our employees. Our longstanding policy is to afford equal opportunity for employment for all individuals regardless of race, creed, color, religion, national origin, gender, sexual orientation, age, or marital status. 2009 Sustainability Report | 50 Our Employees Training & Development Senior Management Conferences: Shipboard or off-site conferences are held for senior shipboard management on a regular basis. These provide opportunities for shoreside and shipboard management to discuss industry and company issues, and engage in dialogue with each other about issues facing our industry and our company. Training & Development Employees Working Onboard Princess’ business is subject to evolving regulatory structures, requiring that employees frequently adapt to new rules, systems and technical advancements. In addition, our ships undergo frequent enhancements, and we continually upgrade health, safety and environmental policies and procedures. To meet this challenge, we provide all employees with ongoing training. Training helps our employees work confidently and safely within new management systems and protocols. It also underscores our commitment to hospitality and guest service, while helping to retain top talent. Training topics include leadership development, professional development, compliance training, and job skills. Officers: Some of our officers join us as cadets directly from marine academies, while others come to the cruise industry after working in other sectors of the maritime industry or in the military. Regardless, officers must complete required training as specified by the International Maritime Organization so they can progress in their careers and renew their certificates. Nautical training centers worldwide provide these officer education programs. Department heads evaluate officer performance at the end of each contract. Promotions are based on professional, managerial and leadership skills. Princess provides officers with customized training and refresher courses specific to their careers. Most receive specialized training related to technical advancements, safety and leadership as well. “C.R.U.I.S.E. Career Path”: We invest heavily in our crew’s career development with Princess, providing tools and paths that lead to higher positions. Our “C.R.U.I.S.E. Career Path” program gives all crew members the opportunity to advance in the company and consider Princess as a long-term career option. We post available positions on our “C.R.U.I.S.E. Connections” shipboard intranet, and crew members can apply for positions that match their background, training, skills and interest. Onboard Traveling Trainers: Trainers regularly visit each ship to work closely with all shipboard department managers to offer specialized courses and ensure employees receive relevant, innovative professional development. Princess keeps detailed records of employee training, which are stored on our centralized personnel training system. We are particularly interested in developing employees’ leadership, safety and regulatory compliance, customer service and hospitality skills. Princess U Computer-Based Learning: For several years, Princess has had in place a “Princess U” program with the goal of providing training to all employees. Every Princess ship has a computerequipped training center that allows employees to access training courses and language-learning software at no charge. Employees may access these classes through any networked computer on board. In 2009, shipboard staff completed 23,843 training classes (officers 2,799, crew 21,044). All crew averaged 5 hours a month training or 60 total for the year. 2009 Sustainability Report | 51 Our Employees Training & Development Employees Working Ashore Regardless of position, we believe each of our employees can benefit from professional and personal development. The goal of our shoreside training department is to align itself strategically with our staff to meet their ongoing business and professional development goals. A number of training initiatives are conducted for shoreside team members, including: “Welcome to Princess” Orientation: To welcome new employees to the Princess family, they participate in an orientation that gives them an overview of the company, our core values and brand pillars, and specific product knowledge. In 2009 110 employees participated in these orientations. Princess U: Princess U is a comprehensive educational program that covers a range of customer service and business-related skills as well as several lifestyle and personal development offerings, all designed to help our team succeed with Princess as well as in their own personal lives. The courses are designed to: • Build and enhance job specific skills • Advance leadership skills • Build expertise in Princess products and services • Meet departments’ specialized training needs • Comply with safety and workplace conduct requirements Courses include such topics as leadership development, professional development, compliance training, and job skills. In 2009, 1,946 shoreside staff participated in training, averaging 29 hours per participant. Meet the Experts: Meet the Experts is a series of informational seminars designed to give employees more information and understanding about the company directly from the key people who oversee our internal operations. The more an employee knows about the company, the better customer service he or she can provide. Senior Management Leadership Training: The company believes ongoing management education helps foster outstanding performance. To that end, on a regular basis company officers attend off-site executive leadership training presented by a major educational institution. The goal is to provide senior-level training and insights from subject experts that will guide and inspire the company’s executive team, and develop new skills in process improvement, strategy, teambuilding and leadership. Leadership Development for Managers: Many of the same topics covered in the senior management training are adapted for training various levels of management within Princess. This leadership and process training is presented to directors, managers and supervisors company-wide. Discover Your World: For the past several years we have presented an annual week-long “fair” of seminars to educate employees about their benefits and share important and practical advice that can help them in their personal lives. All shoreside employees are encouraged to participate and are given time off from their duties to attend the sessions, which include such topics as caring for an aging parent, estate and retirement planning and college funding. Performance Appraisals Most shoreside employees are evaluated at least once every 12 months, and shipboard employees are evaluated at the end of their contract. In 2009 86% of shoreside employees, and 98% of shipboard employees, received performance appraisals. These appraisals play a role in our pay-for-performance strategy, in identification of high potential performers, and in identifying coaching and development needs. 2009 Sustainability Report | 52 Our Employees Compensation & Benefits Compensation & Benefits Princess compensates shoreside employees based on prevailing market wages and performance. We strive for consistency across the company in how we evaluate, develop and compensate our shoreside employees, and salaries are typically reviewed on an annual basis. The amount and timing of a particular salary increase reflects such factors as an employee’s performance and disciplinary record, competitive pay rates, market conditions and Princess’ financial performance. Shoreside employees are welcome to discuss any compensation concerns with their management team or the Human Resources department. Based on the profitability of Princess Cruises and / or the attainment of certain budgetary goals, year-end bonuses may be granted to certain full-time and part-time employees. Additionally, grants of restricted stock units are awarded to certain management-level employees. Shipboard Wages and Overtime Operating a cruise ship is a 24-hour, 365-days-a-year business. Seagoing personnel work under contract typically seven days per week, working three to ten months, with two to three months off between contracts. As described in the Labor Relations and Fair Employment section, Princess negotiates wages for most of our seagoing workers through unions. We pay higher wages than many of these workers could receive performing similar work at shoreside jobs abroad or in their home countries. In addition to wages, we provide room, board and amenities. 9 / 80 Schedule In fall 2008 Princess provided an opportunity for many of our full-time regular shoreside employees to adopt a 9/80 alternative workweek schedule. Under the 9/80 schedule, participating employees work four 9-hour days and one 8-hour day in a calendar week, followed by four 9-hour days and one day off the following week. The extra day off is usually a Monday or Friday, which provides our employees with a long weekend twice each month, and also allows them to save on commuting costs. This has proved one of our most popular benefits. Shoreside Employees Princess offers full-time regular employees a comprehensive flexible benefits program that includes: • medical, dental and vision • company-paid long-term and short-term disability • company-paid life insurance • supplemental voluntary programs (disability, life and accidental death & dismemberment) • business travel accident and assistance • 401(k) savings plan with company match • holidays, sick and vacation time • flexible spending accounts • employee assistance program Princess offers part-time regular employees employee medical coverage, employee assistance program and business travel accident coverage. Benefits Our benefits program is commensurate with that of other major corporations, particularly those in the maritime and cruise industry. We offer the following benefits, including benefits for California registered domestic partners, as a strategy to ensure employee satisfaction and boost retention. 2009 Sustainability Report | 53 Our Employees Compensation & Benefits • Engagement & Recognition Engagement & Recognition We believe that sharing information, encouraging feedback, and recognizing our employees’ accomplishments are vital elements of our success. Shipboard Employees Princess offers its crew members a comprehensive and competitive benefits package. Coverage varies for these employees based on a variety of factors, including country of residence, home country social system health coverage, collective bargaining agreements and position. These benefits may include: • company-paid employee medical • dental and vision • company-paid long-term disability • company-paid life insurance • supplemental voluntary programs (life and accidental death & dismemberment) • employee assistance program Approximately every three years, Princess conducts a climate survey among employees to gauge employee satisfaction with their job, company policies, management and work environment. The results of this survey are carefully reviewed by management, and become the guide for future programs and changes to enhance the work environment for our shoreside team. The highlights of the most recent climate survey (conducted in fall 2009) were: • Improvement in all categories since 2006 survey • Employees are proud of their work, pleased with their co-workers, and pleased with their supervisors’ level of knowledge • Most employees believe the organization is moving in the right direction • 9 / 80 work schedule is appreciated by most employees Princess has also continued an initiative introduced in 2008 called “Employee Journey,” the goal of which is to examine every touchpoint of an employee’s career — from the interview process to retirement. Six task forces were created to explore and refine processes and programs relating to: • Recruitment • Orientation • Career Progression • Milestone Celebration • Employee Benefits • Day-to-Day Service The committees’ contributions continue to be incorporated into the way we communicate to, motivate and reward our employees. 2009 Sustainability Report | 54 Our Employees Engagement & Recognition Princess interacts with employees in a variety of ways, including the following: “Share Your Views”: Through the shoreside intranet, employees at all levels are able to communicate with management regarding any topic of concern. Employee submissions are reviewed by the relevant departments and appropriate responses are conveyed to the employees. Service Improvement Suggestion: The Service Improvement Suggestion program encourages employees to submit ideas for shipboard or shoreside service improvements, efficiencies, cost savings, or additional sources of revenue. Employees whose suggestions are implemented receive cash rewards. Quarterly Management Meetings: Princess Cruises management gathers quarterly for a halfday meeting that presents topics of importance to this team. Hosted by Princess’ President and Chief Executive Officer Alan Buckelew, the session includes presentations by select senior management on a variety of current topics, including financial performance, product news, marketing initiatives and employee programs. The meeting concludes with a celebration of employee promotions and anniversaries, with employees who are being celebrated invited to attend. “Portholes” Employee Intranet: Princess’ intranet is a vital source of up-to-date news and information for employees, and also serves as a reference point for policies and benefits. Exit interviews: Because feedback on how well we are managing our employees is important to us, voluntarily departing shoreside employees are asked to complete an exit interview with our Human Resources department. This interview provides the departing employee an opportunity to comment on his or her Princess work experience, and such comments are routinely reviewed by Human Resources management and shared with the employee’s upper management team. Recognizing the achievements of Princess employees has been a long-standing priority for our company. Some of the key ways we recognize employees are: Employee of the Month: The Employee of the Month program recognizes employees who have gone above and beyond their work responsibilities to support the company’s customer service principles. Winners are often employees who work diligently and modestly behind the scenes to support the success and growth of their departments. The Employee of the Month program recognizes extra performance efforts and teamwork. I Make the Difference: The coveted I Make the Difference C.R.U.I.S.E. awards are presented every spring and fall to shoreside employees who consistently exemplify the Shoreside C.R.U.I.S.E. Service Credo and Cornerstone Statement. Winners are nominated by co-workers for their teamwork, and by managers / supervisors for their exceptional performance. Employee of the Year: In 2004 the Corporate C.R.U.I.S.E. Committee created the Employee of the Year program to honor employees who exceed the C.R.U.I.S.E. program’s standard of service excellence. Employee of the Year recognition is generally considered to be the company’s “Academy Award,” honoring a deserving individual for his or her dedication, service, and attitude. One winner (selected from the year’s Employees of the Month and I Make the Difference winners) is generally named each year in Santa Clarita, Seattle, and Florida. World of Thanks: World of Thanks was introduced as part of the shoreside C.R.U.I.S.E. program in 2002, and remains one of the most popular elements of the C.R.U.I.S.E. program. World of Thanks provides an opportunity to show appreciation to co-workers throughout the company who have gone beyond expectations. Many recipients say World of Thanks gives them a meaningful “thank you” for delivering outstanding customer service. Employees complete an electronic World of Thanks “postcard” that 2009 Sustainability Report | 55 Our Employees Engagement & Recognition • A Safe Working Environment describes the extra internal customer service received from another employee, as well as the results of the service performed. These notes are collected and certified by the World of Thanks committee, and are distributed with specially logoed balloons to the recipients on World of Thanks Appreciation Day, celebrated each month. Employees Working Onboard Similar to Princess’ shoreside initiatives, onboard engagement and recognition includes: • C.R.U.I.S.E. Connections shipboard intranet • C.R.U.I.S.E. Service Suggestion Awards • Employee of the Month aboard each ship • New-hire joining and exit interviews C.R.U.I.S.E. program initiatives especially for onboard crew include: • You Made the Difference Cards enabling passengers to recognize crew members who have gone the “extra mile” to make their cruise special. Passengers are encouraged to fill out the card(s) and return them to the Passenger Services Desk. The cards are considered when selecting the Employee of the Month and are placed in the recognized employee’s personnel file where they serve as documentation for career growth. • C.R.U.I.S.E. Video Competition offering shipboard employees the opportunity to win a $1,000 grand prize by viewing a video that displays the C.R.U.I.S.E. program and Core Values at work and answering a short quiz to test their comprehension. This program helps keep the C.R.U.I.S.E. service credo alive and well in the minds of our shipboard personnel. A Safe Working Environment Princess takes our responsibility for the safety of our employees seriously. Providing a safe and accidentfree workplace makes good business sense, as preventing injuries reduces expenses through lower medical, time away from work, litigation and claims management costs. Accidents and injuries also can lead to overtime costs for other employees, reduced morale and losses to equipment, machinery and work areas. Our company’s safety vision is to provide all our employees with a safe and healthy place to live and work. This is consistent with our policy to do everything we can to keep our shoreside and shipboard employees and passengers safe and free from all recognized hazards while they are with us. Our safety management systems are designed to reduce or eliminate any risk that could result in personal injury, illness or property damage. Maintaining safety awareness among a large, diverse shipboard workforce that is employed on a contract basis is challenging. We are additionally challenged because our employees live and work aboard our ships, extending our responsibility for their safety to a larger sphere than in a traditional workplace. We manage these challenges through continuous standardized training, a rigorous safety management system and workplace safety committees that meet regularly. In 2009, 100% of shipboard and shoreside staff were represented by Health & Safety Committees. 2009 Sustainability Report | 56 Our Employees A Safe Working Environment PCL Shoreside OSHA recordable summary of work-related injuries and illnesses Total number of injuries 54 Cases with days away from work 6 Cases with job transfer or restrictions 31 Other cases 17 Total days away from work 238 Total injuries x 1,000/total hours worked (index of frequency) .013938 Days of absence due to injuries x 1,000/total hours worked (index of gravity) .061428 Princess Tours OSHA recordable summary of work-related injuries and illnesses Total number of injuries 53 Cases with days away from work 23 Cases with job transfer or restrictions 12 Other cases 18 Total days away from work 241 Total injuries x 1,000/total hours worked (index of frequency) .017125 Days of absence due to injuries x 1,000/total hours worked (index of gravity) .082544 2009 Sustainability Report | 57 Our Passengers Princess’ C.R.U.I.S.E. Program Our company exists to provide our passengers with memorable vacations combining warm, attentive service excellence, comfortable ships, modern amenities, and exciting destinations — all in the safest environment. And we’re committed to continuously improving the quality of each of these areas. Much of our business comes from our repeat passengers, and from their friends and family to whom they’ve recommended a Princess cruise vacation. We therefore place a high value on retaining our loyal customers, and inspiring them to be advocates of our brand. Our approach to achieving this is to: • Foster a service culture across our company • Deliver a strong service training program to our employees • Monitor our performance continuously • Introduce new offerings, and make adjustments as necessary We Are The Consummate Host No matter where Princess ships sail, passengers enjoy warm and gracious service in an atmosphere of comfortable elegance. Princess crew members are dedicated to providing exceptional service to ensure guests can escape completely from their everyday routine with an unforgettable vacation. We like to say we treat our passengers as if they were guests in our own home. How do we develop our employees so they can deliver an outstanding customer service experience to our passengers? In 1996 we introduced our C.R.U.I.S.E. customer service program, which is now the longest running of any customer service program in the cruise industry. The acronym stands for Courtesy, Respect, Unfailing in Service Excellence, and is our customer service credo that is the standard for how everyone at Princess interacts with our passengers, travel agents, suppliers and each other. The C.R.U.I.S.E. program applies to — and is embraced by — both shipboard and shoreside environments. In addition to training, the C.R.U.I.S.E. program is designed to inspire staff and crew through honors and recognition programs based on the performance of individuals and recommendations from others. The Princess C.R.U.I.S.E. program is summed up by this goal: “Working together to provide the finest possible experience for our passengers, in every area of the ship, during every moment of their day.” As such every crew member proudly wears their C.R.U.I.S.E. pin and carries a card with the following program credo: Princess C.R.U.I.S.E. Credo 1. We strive to be the very best. We do the best job we are capable of all the time in every part of the ship. We are proud of what we do. 2. We react quickly to resolve guest problems immediately. We do everything possible to please our passengers. 3. We smile; we are on stage. We always maintain positive eye contact and use our service vocabulary. We greet our passengers; we tell them “Certainly, I will be happy to do so,” and “It will be a pleasure.” 2009 Sustainability Report | 58 Our Passengers Princess’ C.R.U.I.S.E. Program • Passenger Satisfaction Passenger Satisfaction Approximately 1.3 million passengers cruise with Princess each year, and we’re focused on ensuring an exceptional vacation is delivered to them, across our entire fleet regardless of destination or ship size. Although revenue and occupancy rate is important to us, the most significant measure of our success is the satisfaction of our passengers, both our loyal repeat passengers and first-time cruisers. We therefore focus on: Customer Service Training 4. We are friendly, helpful and courteous. It is the Princess way. We treat our guests and fellow crew members as we would like to be treated ourselves. 5. We are ambassadors of our C.R.U.I.S.E. ship, when at work and at play. We always speak positively and never make negative comments. 6. Our uniforms are immaculate. We wear proper and safe footwear that is clean and polished, and we wear our nametags. We take pride and care in our personal grooming. 7. We are positive. We always find a way to get it done. We always try to make it happen. We never, never give up. 8. We use proper telephone etiquette. We always try to answer within three rings and with a smile in our voice. If necessary, we always ask if we may place our customers on hold, and we eliminate call transfers whenever possible. 9. We are knowledgeable about all C.R.U.I.S.E. ship information and always recommend the shipboard services. 10.We never say “no.” We say “I will be pleased to check and see.” We suggest alternatives. We call our supervisor or manager if we feel we cannot satisfy our guests’ needs. We train our employees to deliver excellent customer service, recognizing that our passengers’ vacations begin as soon as they visit our website or call our reservation center. Training for our front-line employees underscores our requirements for them to be friendly, patient, and knowledgeable about our product. Onboard Questionnaires and Feedback We encourage our guests to voice their opinion — either positive or negative — about their cruise experience. Our shipboard customer service team logs every guest comment or concern. Although the vast majority of our passengers are satisfied with their Princess cruise, there are occasions when things don’t go as expected. Our shipboard management team is empowered to resolve issues in a timely manner when the passenger is still onboard, rather than waiting until our passengers return home. Not only does this process enable our passengers to more fully enjoy their vacation, it also serves as a learning tool that enhances our procedures, policies and onboard product. As well, on every voyage we ask our passengers to provide their views on how we delivered on their vacation expectations through an end-of-cruise questionnaire. We have a high response rate for return of these surveys and use them not only as a customer service barometer but also to address specific issues that may have arisen on a sailing. These questionnaires are reviewed by senior 2009 Sustainability Report | 59 Our Passengers Passenger Satisfaction Convenient Online Tools We realize that today’s consumers are quite comfortable with online processes and the convenience they provide, and in 2009 we focused on adding more selfservice options to www.princess.com so our passengers could have more convenient access to servicing their booking. Whether it’s entering dining preferences or reserving shore excursions, our passengers can manage their booking anytime, day or night, with our convenient online Cruise Personlizer. customer service shipboard management as well as management ashore for action and response. In 2009 we began transitioning from our long-time paper-based evaluation system which asked for passengers to fill out our questionnaire while still onboard, to a web-based questionnaire which is emailed to them on the day their cruise ends. Within this new system, the results are made immediately available to senior customer service shipboard management as well as management ashore as the survey responses are returned. 2009 Sustainability Report | 60 Our Passengers Continuous Innovation Movies Under the Stars ® Continuous Innovation For all of our 45-plus year history, innovation has been at the heart of the Princess experience. Our early innovations included building ships featuring hundreds of cabins with private balconies, multiple restaurants and showlounges, wedding chapels and 24-hour dining. In recent times, newer innovations have debuted such as our adults-only relaxing retreat called The Sanctuary, giant Movies Under the Stars outdoor viewing screen and exclusive Chef’s Table experience. But innovation hasn’t just been confined to our more significant hardware investments. We’ve also introduced smaller, special touches that tell passengers we care about them and their vacation experience. Like offering our passengers a cool, wet towel when they return from their visit ashore, serving fresh-baked chocolate chip cookies as an afternoon treat, streamlining the disembarkation process, and introducing room service for our famous pizza. We’ve also introduced innovative changes and features to make planning a cruise easier than ever for our passengers. This includes the ability to make reservations for shore excursions and spa treatments online, conveniently providing necessary travel and passenger details through our Cruise Personalizer, introducing new pre- and post-cruise emails that give our passengers the relevant information about their cruise at the exact time they need it, and adding meaningful amenities to our passenger loyalty benefits such as free Internet and laundry for the highest levels. Many of our innovations started with passenger observation and feedback, which will continue as a vital business process for Princess. 2009 Sustainability Report | 61 Our Passengers Our Care Team • Protecting Passenger Privacy Our Care Team In a time of need, we call upon the Princess Cruises Care Team, whose responsibilities are to provide emotional and logistical support to passengers and crew, and their families, who may be affected by illness or injury during their cruise. The Princess Care Team consists of approximately 430 Princess employees from all levels of the company who have volunteered to be a part of this program, and who have undergone specialized training in how to provide sensitive and appropriate support. The Care Team responds to a variety of passenger and employee emergencies, which are primarily medical in nature, and team members are also dispatched to locations around the world to provide personal care and attention as needed. Our Care Team members view their participation as a source of pride, as they’re able to provide comfort and compassion to our passengers, crew and families during challenging situations. Protecting Passenger Privacy Princess Cruises observes standards for privacy based on guidelines developed by Carnival Corporation & plc. Based on these criteria, we have developed our own privacy policy, which describes the principles and practices that guide the manner in which our customer’s personal information is collected, used, shared, safeguarded and disposed of during the normal course of business. In addition, we have developed processes, policies and procedures to support the principles established in the privacy policy, while providing training to our employees to create and maintain awareness of these practices. We have also developed a privacy incident response process designed to address incidents of unauthorized access to, disclosure or use of personal information maintained by us or our service providers. This process continues to be enhanced and formalized. State laws vary in the circumstances that require notification of privacy breaches. Regardless, in 2009 Princess Cruises did not have any privacy breaches that would have required notification to our passengers. On an annual basis, beginning in 2010, we will review the adequacy of our privacy program, addressing, for example, the estimated losses incurred by us or our customers due to breaches, training status of employees and attempted and actual unauthorized access to personal information and management’s responses. 2009 Sustainability Report | 62 Our Public Policy Our Public Policy and Participation in Public Policy Development & Lobbying Carnival Corporation & plc establishes its public policy positions and participates in public policy development and lobbying on behalf of all of its subsidiary operating lines, including Princess Cruises, via the associations listed below. Princess representatives participate directly in selected activities of these organizations. Details of public policy positions on significant issues beyond those disclosed in this sustainability report are addressed on the websites of these associations. Cruise Lines International Association Princess is a part of and actively participates in the Cruise Lines International Association (CLIA), the world’s largest cruise association, which is dedicated to the promotion and growth of the cruise industry. CLIA is composed of 23 of the major cruise lines serving North America. CLIA serves as a non-governmental consultative organization to the International Maritime Organization, an agency of the United Nations. CLIA was formed in 1975 and in 2006 merged with the International Council of Cruise Lines (ICCL), a sister entity created in 1990 dedicated to participating in the regulatory and policy development process of the cruise industry. CLIA exists to promote all measures that foster a safe, secure and healthy cruise ship environment, educate and train its travel agent members, and promote and explain the value, desirability and affordability of the cruise vacation experience. Florida Caribbean Cruise Association Princess is a part of and actively participates in the Florida Caribbean Cruise Association (FCCA), a not-for-profit trade organization composed of 10 member cruise lines operating more than 100 vessels in Floridian, Caribbean and Latin American waters. Created in 1972, the FCCA’s mandate is to provide a forum for discussion on legislation, tourism development, ports, tour operations, safety, security and other cruise industry issues. By fostering an understanding of the cruise industry and its operating practices, the FCCA seeks to build cooperative relationships with its partner destinations and to develop productive bilateral partnerships with every sector. The FCCA works with governments, ports and all private/public sector representatives to maximize cruise passenger, cruise line and cruise line employee spending, as well as enhancing the destination experience and the amount of cruise passengers returning as stay-over visitors. European Cruise Council Princess is a part of and actively participates in the European Cruise Council (ECC). The ECC represents the leading cruise companies operating in Europe, and aims to promote the interests of cruise operators with the EU Institutions (European Parliament, Council of the European Union, and European Commission) in all matters of shipping policy and ship operations. The ECC also promotes cruising by the European public and encourages expansion of the European cruise market. To accomplish this, the ECC: 2009 Sustainability Report | 63 Our Public Policy • Encourages high standards of operation and the provision of high quality and efficient shipping services. • Strives for an EU regulatory environment that supports safe shipping operations and protection of the environment, and that recognizes the international dimension of the sector and the role played by IMO/ILO in particular. • Works for an EU regulatory environment that will foster the continued growth of the cruise sector in Europe. • Raises the profile of the cruise sector with EU Institutions in relation to its economic and social contribution to Europe. • Promotes cruising with the general public and the travel trade as a reliable, affordable and enjoyable holiday experience. • Cooperates with EU institutions and nongovernmental organizations in the pursuit of these objectives. • Anticipates whenever possible and responds wherever appropriate to policies and actions which conflict with the above. International Chamber of Shipping Princess actively participates in the International Chamber of Shipping (ICS), the international trade association for merchant ship operators. ICS represents the collective views of the international industry from different nations, sectors and trades. ICS membership comprises national shipowners’ associations representing over half of the world’s merchant fleet. A major focus of ICS activity is the International Maritime Organization (IMO), the United Nations agency with responsibility for the safety of life at sea and the protection of the marine environment. ICS is heavily involved in a wide variety of areas including any technical, legal and operational matters affecting merchant ships. ICS is unique in that it represents the global interests of all the different trades in the industry: bulk carrier operators, tanker operators, passenger ship operators and container liner trades, including shipowners and third-party ship managers. ICS has consultative status with a number of intergovernmental bodies that have an impact on shipping. Its close ties with IMO stretch back to this body’s inception in 1958. Other partners include the World Customs Organization, the International Telecommunications Union, the United Nations Conference on Trade and Development and the World Meteorological Organization. ICS also enjoys close relationships with industry organizations representing different maritime interests such as shipping, ports, pilotage, the oil industry, insurance, and classification societies responsible for the surveying of ships. ICS is committed to the principle of maritime regulation being formulated at an international level. Shipping is by nature international: the regulations that apply to a ship when it sails from Buenos Aires must apply equally when it arrives in Brisbane. The alternative to an international system of shipping legislation would be a chaotic web of local rules and regulations that would result in commercial distortions and mass economic deficiencies. The objective of ICS is the maintenance of a sound, well-considered global regulatory environment in which well-run ships can operate safely and efficiently. 2009 Sustainability Report | 64 Our Public Policy European Community Shipowners’ Associations Princess participates in the European Community Shipowners’ Associations (ECSA), formed in 1965, which is comprised of the national shipowner associations of the EU and Norway. ECSA works through a permanent secretariat in Brussels and a Board of Directors, as well as a number of specialized committees. Its aim is to promote the interests of European shipping so that the industry can best serve European and international trade and commerce in a competitive free enterprise environment to the benefit of shippers and consumers. Most ECSA members are also members of ICS. The Chamber of Shipping (UK) Princess is a part of and actively participates in the Chamber of Shipping, the trade association for the UK shipping industry, which works to promote and protect the interests of its members both nationally and internationally. With 144 members and associate members, the Chamber represents over 860 ships of about 23 million gross tonnes and is recognized as the voice of the UK shipping industry. The Chamber works with government, parliament, international organizations, unions and the general public on behalf of the sectors that make up the shipping industry (including deep-sea bulk, short-sea bulk, containers, ferry, cruise, offshore support and specialized operators) to ensure that the UK continues to be a global center for shipping business — with worldclass standards and an internationally competitive and consistent fiscal and policy environment. 2009 Sustainability Report | 65 Our Communities As a worldwide cruise company, Princess Cruises makes our living taking passengers to intriguing places on all seven continents. But our focus is about more than just providing enjoyable and safe vacations. As our ships and passengers explore the globe, we are reminded on a daily basis just how interconnected we are with communities and people around the world. And because of this connection, it’s important that we do our part to help improve communities and enhance lives in those places where we do business. As guided by our company’s core values, Princess is committed to respecting the communities in which we work and visit, to fair business practices, to supporting organizations which improve the health and welfare of local communities, to contributing time and resources to those in need, and to facilitating the economic development and sustainability of the destinations and ports in which we visit. Economic Contributions to Port Communities We believe our worldwide business provides significant value to the port communities in which we operate, and we make every effort to contribute positively through the relationships we build and the economic growth we generate through the taxes we pay, the jobs we create and the suppliers we support. Princess Cruises operates in 315 ports worldwide. Approximately 35 of these ports are home ports — or “turnaround” ports — where our ships begin or end their cruises. These home ports typically have substantial infrastructure with major airport access so we can easily transfer our guests to their ship for embarkation and disembarkation. Princess provides substantial economic benefits to these communities, generating an estimated one million dollars in economic activity for every home port call. During the cruise, our ships call at smaller ports and communities where passengers have the opportunity to explore tourist and historical sites, along with the local culture. Industry estimates are that cruise line passengers can contribute as much as $100 per person per day during a ship call, and these dollars generate jobs for local residents. Many of the developing countries our ships visit are economically stimulated through visitor spending and job creation. According to a 2009 study commissioned by the Cruise Lines International Association (CLIA), Princess Cruises and other North American cruise operators, their employees and passengers generated $35.1 billion in gross output in the U.S. in 2009, including 313,998 jobs paying a total of $14.23 billion in wages and salaries, and direct cruise industry spending totaling $17.15 billion. 2009 Sustainability Report | 66 Our Communities Community Philanthropy • Princess Cruises Community Foundation Community Philanthropy Princess Cruises has a long legacy of giving back to communities. Our philanthropic program is primarily focused in the areas where we have The “Princess Striders” participate significant shoreside in the Making Strides Against Breast Cancer Walk in Florida operations, namely our corporate headquarters in Santa Clarita, our Princess Tours operation in Seattle and Alaska, and in South Florida. Our contributions span a range of giving opportunities including in-kind cruise donations and room nights in our Alaska lodges, fundraising sponsorships and cash donations. Our company-wide philanthropic activities in 2009 included support of approximately 240 organizations and initiatives including such diverse programs as: • Funding for the University of Alaska Fairbanks to support their Marine Advisory Program, helping their local agents who live and work in Alaska’s coastal communities to work with residents to conserve ocean resources that sustain the local economy • Working with the Cape Eleuthera Institute on the island of Eleuthera in the Bahamas to donate used cooking oil from our ships which is converted into renewable energy Over the years Princess Cruises, our passengers, shipboard crew and shoreside employees have generously given to a variety of organizations. In order to formalize this giving program, in 2009 Princess Cruises established a new non-profit public benefit corporation, the Princess Cruises Community Foundation. The Foundation is committed to supporting charitable causes around the word, and provides grants to organizations dedicated to children, education, the environment, and community health and welfare in ports visited by Princess ships, in regions where Princess seafarers reside, and in locales from which Princess operates. In 2009 the Princess Cruises Community Foundation distributed more than 20 grants to organizations serving individuals and communities within the United States, American Samoa, Samoa, New Zealand, Indonesia and the Philippines. These grants aided in natural disaster relief, have been used to promote awareness, research and treatment of life-threatening diseases, have provided care for the needs of underserved children, and have enriched the lives of seafarers worldwide. • Donating aluminum cans from our ships to the Boy Scouts of America in Juneau, Alaska. The contribution has totaled more than $20,000 over the past 11 years the program has been in place • Providing local charities in ports around the world with needed items such as mattresses, bed linens, and furniture which are donated by our ships Princess is also a member of the Cruise Industry Charitable Foundation, which coordinates a wide range of philanthropic and charitable activities in our home port communities, as well as other areas throughout the country. PCCF donates to Make-A-Wish, New Zealand 2009 Sustainability Report | 67 Our Communities Princess Cruises Community Foundation Among the organizations that received financial support from the Foundation in 2009 were: • Help the Children • American Heart Association® • Western Justice Center Foundation • Make-A-Wish,® New Zealand • Arthritis Foundation ® • Mission to Seafarers and Seafarers’ House • American Diabetes Association® • American Cancer Society® • American Heart Association • Hands On Santa Clarita • The Leukemia & Lymphoma Society® • Santa Clarita Food Pantry • American Red Cross Assistance can sometimes be provided directly by our ships if they call near disaster areas. On behalf of the Princess Cruises Community Foundation, our ships have offloaded supplies including water, food, and other needed items. Following the disastrous 2009 tsunami in Samoa and American Samoa, Star Princess and Sun Princess delivered supplies during scheduled calls, and Sun Princess was also able to host dozens of Red Cross relief workers onboard for the day to provide them with a place to rest, eat lunch, make phone calls, do laundry and take a hot shower before resuming their local relief work. 2009 Disaster Relief Grants Country / Territory Disaster Supported Organization American Samoa Tsunami American Red Cross Indonesia Earthquake American Red Cross Philippines Earthquake The Homer Foundation Philippines Typhoon The Homer Foundation Samoa Tsunami American Red Cross Volunteerism Relief supplies delivered in Samoa Disaster Relief The Princess Cruises Community Foundation stands ready to help those affected by natural disasters around the world. Through donations made to international relief organizations, we’re able to help them respond to an emergency, providing people with the food, supplies, medicine and shelter they need. In response to natural disasters around the globe in 2009, which included tsunamis, earthquakes and typhoons, the Foundation distributed grants to the American Red Cross (for international relief) and the Homer Foundation in the Philippines. As stated in one of our core values, Princess Cruises believes in serving others. Part of that commitment is being involved in our communities to make them a better place to live, and to enrich the lives of those who live there. Princess employees — both ashore and onboard our ships — give their time and talents to a variety of communities and projects. This includes our company executives and employees who serve on various non-profit boards, as well as employees who come together as a team to support a specific cause. Princess Cruises’ shipboard employees also participate in a variety of Princess Cruises Community Foundation charitable and community projects in ports around the world. Our shipboard staff often initiate these projects, including “adopting” 2009 Sustainability Report | 68 Our Communities Princess Cruises Community Foundation Princess employees volunteer for local school clean-up project orphanages in Caribbean and Mexican ports of call, beautification projects for local schools, and hosting onboard events for groups of underprivileged children including lunch and entertainment. Our ships’ crews also regularly participate in beach cleanup programs when visiting Caribbean and Mexican ports, typically in conjunction with the Florida-Caribbean Cruise Association. Susan G. Komen Walk for the Cure® In collaboration with Susan G. Komen for the Cure, an organization dedicated to fighting breast cancer around the world, the Princess Cruises Community Foundation sponsors On Deck for the Cure, a 5-kilometer walk on the promenade decks of Princess Cruises’ ships, held during each cruise. Following the fundraising walk, for which passengers register and donate at least $15 to participate, participants enjoy a post-walk reception with refreshments and snacks. In 2009 alone, 489 walks were sponsored with over 18,000 passengers participating. This program raised $261,216 for Susan G. Komen for the Cure in 2009 (the Princess Cruises Community Foundation began administering the funds in October 2009). Since the program was launched in 2007, total contributions have surpassed $1 million which has supported the vital work of this organization. Delivering Clear Benefits to Alaska Our visitors, like people the world over, want to get close to the Great Land and its unique qualities. At Princess we believe that a close relationship with Alaskans is the best way to bring visitors a true Alaska experience and exceed expectations. We recognize that our success depends on working closely with Alaska, and we do so in the following ways: • By doing business with more than 1,000 local vendors • By using Alaska-made and Alaska-grown products aboard our ships and in our restaurants • By investing in the most advanced technology to reduce our emissions • By supporting more than 180 local nonprofit organizations • By sustaining 235 employees year round and more than 2,400 employees during the summer season We like to think of ourselves as a partner and believe this is a relationship that’s good for this state — and good for Princess. We’re proud to play a role in showing off this spectacular land and its incredible people to our guests. 2009 Sustainability Report | 69 Our Performance: GRI Index Princess Cruises prepared this sustainability report in according with the Global Reporting Initiative guidelines (G3) which is the world’s most widely used sustainability reporting framework. This framework sets out the principles and performance indicators that organizations can use to measure and report their economic, environmental and social performance. The GRI Index was developed with input from global business, labor and professional institutions. This 2009 report includes those indicators that our company and stakeholders consider material or significantly important. We plan to report on additional indicators in the coming years. An index of indicators is provided below. Indicator Environment Page No. EN3 Direct energy consumption by primary source 30 EN4 Indirect energy consumption by primary source 30 EN6 Initiatives to provide energy-efficient services and reductions in energy consumption because of these initiatives EN8 Total water withdrawal by source 32 EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. 39 EN16 Total direct and indirect greenhouse gas emissions by weight 30 EN19 Emissions of ozone-depleting substances by weight 30 EN20 NOx, SOx, and other significant air emissions by type and weight 30 EN21 Total water discharge by quality and destination 33 EN22 Total weight of waste by type and disposal method 37 EN23 Total number and volume of significant spills 41 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 27, 29 22–41 41 We are limiting reporting on environmental metrics to shipboard, unless specified otherwise. 2009 Sustainability Report | 70 Our Performance GRI Index Indicator Labor Page No. LA1 Total workforce by employment type, employment contract, and region 42 LA2 Total number and rate of employee turnover by age group, gender and region 42 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 45 LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs 16 LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region 57 LA9 Health and safety topics covered in formal agreements with trade unions 46 LA10 Average hours of training per year per employee by employee category 52 LA12 Percentage of employees receiving regular performance and career development reviews 52 Indicator 45, 47 Human Rights Page No. HR4 Total number of incidents of discrimination and actions taken 45 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 45 HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor 49 HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced or compulsory labor 45 2009 Sustainability Report | 71 Our Performance GRI Index Indicator Society Page No. SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting 21 SO2 Percentage and total number of business units analyzed for risks related to corruption 9 SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures 9 SO5 Public policy positions and participation in public policy development and lobbying 63 SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations Did not incur any significant fines for non-compliance Indicator Product Responsibility Page No. PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services 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, by type of outcomes 19 PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction 59 PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data 62 Indicator EC1 Economic 14–17 Page No. 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 66 2009 Sustainability Report | 72 Contact Information Princess Cruises (Corporate Headquarters) 24844 Avenue Rockefeller Santa Clarita, CA 91355 Princess Tours 800 5th Avenue, Suite 2600 Seattle, WA 98104-3176 Information www.princess.com 1-800-PRINCESS (1-800-774-6237) 2009 Sustainability Report | 73