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