Sustainability report - PRINCESS CRUISES 2017
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PRINCESS CRUISES 2017
sustainability
report
Ruby Princess
>
sustainability report
FOR PRINCESS CRUISES 2017 FISCAL YEAR
Table of Contents
3 Message from the President
4 Introduction
6 Regulatory Landscape
8 Employees
14 Safety, Security and Health
19 Environment
29 Community
35 Performance Summary
39 Report Parameters
41 Glossary
46 GRI Table
Majestic Princess
Message from the President
At Princess Cruises we are a team dedicated to sharing our world,
sharing our hearts and creating lasting memories. We deliver
memorable cruise vacations to more than two million guests a
year, sailing to six continents and over 300 destinations. For more
than 50 years Princess Cruises has sailed the world, delighting our
guests and protecting the oceans we call home.
As a worldwide leader in cruising, Princess Cruises is committed to
maintaining the highest standards of safety and sustainability. We
understand our responsibility to safeguard our people, our guests
and our oceans, and we consider it our highest priority to operate
every day in a way that is safe and socially responsible.
In this report we review our company’s progress in 2015-2017
toward meeting our 2020 sustainability goals. Sustaining our
environment is a responsibility we take very seriously – and we are
continuously working to improve our business operations through
investments in state-of-the-art technologies and extensive training
Jan Swartz opportunities for our officers and crew. I hope you will appreciate
Group President, the uncompromising values, strict practices and high standards
Princess Cruises and Carnival Australia that govern our operations and guide our progress as a company.
Thank you for taking the time to learn more about Princess Cruises’
sustainability programs.
3 Table of Contents
Introduction
Time Line: In 2000, P&O Princess International demerged from P&O and the
fleet transferred to British/Bermuda registry. In 2001 Princess Cruises’
1965 — Founder Stanley McDonald chartered Canadian Pacific headquarters moved to Santa Clarita, California. Princess was aquired by
Limited’s Alaska cruise ship Princess Patricia Carnival Corporation & plc in 2003. In 2015 Princess Cruises celebrated
its 50th anniversary while operating a fleet of 17 vessels.
1972 — Princess Tours founded
1974 — Britain’s Peninsular & Oriental Steam Navigation Company The line’s largest vessels include Majestic Princess (2017), Regal Princess
(P&O) acquired Princess Cruise Lines (2014), Royal Princess (2013), Caribbean Princess (2004), Crown Princess
(2006), Diamond Princess (2004), Emerald Princess (2007), Golden
1976 — Princess Cruises and Pacific Princess cast to play a co-starring
Princess (2001), Grand Princess (1998), Ruby Princess (2008), Sapphire
role in the hit TV series The Love Boat
Princess (2004) and Star Princess (2002). Mid-sized vessels are Coral
2000 — P&O Princess Cruises establishes as an independent company Princess (2003), Dawn Princess (1997), Island Princess (2003), Sea Princess
2001 — Princess Cruises headquarters moves to Santa Clarita, (1998) and Sun Princess (1995); while the line’s small ship features a more
California intimate cruising experience aboard Pacific Princess (1999). In 2017
Princess sold a ship, bringing the total number of ships to 17.
2003 — Princess Cruises merged with Carnival Corporation & plc
2015 — Princess Cruises celebrates its 50th anniversary
Comprehensive Timeline of Key Events
History:
Princess Cruises’ story began more than 50 years ago when company
founder Stanley B. McDonald chartered Princess Patricia and formed
Princess Cruises. Princess Patricia set sail to Mexico from Los Angeles.
In 1967 the Princess Italia was chartered and started Princess Cruises’
first Alaska season out of San Francisco.
In 1972, Princess Tours was founded.
In 1974, Princess Cruises was acquired by the Peninsular & Oriental
Steam Navigation Company (P&O) and Pacific Princess and Sun Princess
joined the fleet. Pacific Princess played a significant role in the TV series
The Love Boat in 1976.
Diamond Princess
4 Table of Contents
Introduction
Commitment to sustainability: Additionally, the company has a long-standing track record of making
cruising accessible, and we are increasing that commitment even
Princess Cruises is committed to environmental practices that set a high further with enhancements in staff training, accessibility policies and
standard for excellence, responsibility and preservation of the marine communications, and additional accessible shipboard design features.
environment.
In 2013 some employees on one ship were reported to be violating
In collaboration with our parent company, Carnival Corporation & plc, Princess Cruises’ policies and environmental law by bypassing part of
Princess Cruises established a working framework for important our bilge water treatment system. In the course of investigating this
measurements, and in 2010 Princess Cruises released its first incident, we have learned about some other practices that were not
sustainability report. correct. We have taken responsibility for these actions and have agreed
Organizational changes: to pay a substantial fine. In November 2016 Carnival Corporation &
plc and the United States Department of Justice (DOJ) reached an
In 2013, Stein Kruse was named CEO of Holland America Group, an agreement which included a monetary penalty and the institution of
expanded role that includes the oversight of Princess Cruises, Holland a required Environmental Compliance Program designed to assure
America – Princess Alaska, Seabourn, P&O Australia and Holland Princess stays in complete compliance with the law. It also requires that
America Line. Jan Swartz was appointed President of Princess Cruises Princess pay for a third party and independent court-appointed monitor
in November 2013 after serving in senior management roles with the to help supervise probation. The entire Carnival Corporation will also
cruise line since 2001. participate in an Environmental Compliance Plan. Learn more
Opportunities:
Whether being good stewards of the environment, treating our
In July 2015 Carnival Corporation & plc and the United States employees and others with respect or being a conscientious partner to
Department of Justice (DOJ) reached an agreement about requirements ports and communities around the world, we recognize that we have the
aboard cruise ships for Americans with disabilities. The agreement ability – and duty – to make a positive difference in the world in which we
ensures the protection of civil rights of persons with disabilities in work and live. Over the next three years, we will focus on achieving our
public accommodations, which addresses requirements of Title III of 2020 Corporate Sustainability goals as well as developing the next set of
the Americans with Disabilities Act (ADA). This eight-year agreement targets.
requires us to reasonably modify policies, practices and procedures to
We appreciate your interest in our efforts. If you have any questions
accommodate individuals with disabilities, properly provide and reserve
or ideas you’d like to share with us, please contact us at
accessible staterooms for individuals with mobility disabilities, allow
sustainability@ HollandAmericaGroup.com.
individuals with disabilities the same opportunities to participate in
programs and services, and provide effective means of communication
for persons with disabilities. Princess Cruises is dedicated to exceeding
the expectations of all guests, with a strong focus on accessibility.
5 Table of Contents
Regulatory Landscape
Princess Cruises adheres to all international, national and state IMO also introduced the Convention for the Prevention of Pollution
from Ships, more commonly known as MARPOL, to protect the maritime
regulations applicable to our vessel operations. At the end of 2017 environment from pollution that is either accidental or the result of
Princess Cruises had 17 ships, 14 are registered in Bermuda and three routine operations. IMO amended MARPOL in 2010, designating the
are registered in the United Kingdom. The country of registration holds North American Emission Control Area (ECA) to reduce emissions from
the ultimate authority and responsibility to enforce laws and regulations ships. MARPOL has in total six Annexes, four of which are applicable to
pertaining to our fleet operations. Additionally, governments in all of the Princess Cruises. In compliance with ECA guidelines, we’ve invested in
port locations we visit have the authority to inspect our ships, including new initiatives that will help minimize our air quality impacts. Carnival
the U.S. Coast Guard when our ships call to U.S. ports. Our health, Corporation & plc 2017 Annual Sustainability Report (pages 127-140)
environmental, safety, and security practices are based in international
convention as established through the International Maritime Other core international conventions include IMO’s Convention on
Organization (IMO) and the International Labour Organization (ILO). Standards of Training, Certification, and Watchkeeping for Seafarers
(STCW), which establishes consistent minimum requirements across
IMO’s Convention for the Safety of Life at Sea (SOLAS) specifies borders, and ILO’s Maritime Labour Convention 2006 (MLC 2006),
minimum standards for the construction, equipment and operation which aims to protect seafarers’ rights and to secure economic interests
of ships. Under SOLAS, the International Safety Management (ISM) through fair competition.
Code requires that all companies and their ships implement a safety
management system (SMS), and the International Ship and Port Facility
Security (ISPS) Code prescribes measures to enhance the security of
ships and port facilities.
SOLAS contains safety requirements for design, construction, The ISM Code is an international standard for the safe management The ISPS Code:
equipment, operations,safety management, and security. It and operation of ships and for pollution prevention. It requires all ship • defines security standards, requirements,
includes 12 Chapters, seven of which apply to Princess Cruises operating companies and ships to develop, implement and obtain arrangements and procedures for ships,
operations: certification of their Safety Management System (“SMS”). The SMS ports, and governments; and
• Chapter I – General Provisions covers both shipboard and shore-based activities and must include • prescribes responsibilities for governments,
• Chapter II-1 – Construction – Subdivision and stability, • a company safety and environmental protection policy; shipping companies, shipboard
machinery and electrical installations • instructions and procedures to ensure the safe operation of ships personnel, and port/facility personnel,
• Chapter II-2 – Fire protection, fire detection and fire extinction and protection of the environment; among others, to develop security plans,
• Chapter III – Life-saving appliances and arrangements • procedures for preparing for and responding to emergencies; detect security threats and take preventative
• Chapter IV – Radio-communications • defined levels of authority and lines of communication between measures against potential security
• Chapter V – Safety of navigation shore and shipboard personnel, and identification of a designated incidents affecting ships or port facilities.
• Chapter IX – Management for the safe operation of ships person ashore responsible for ISM Code compliance;
• Chapter XI-1 – Special measures to enhance maritime safety • procedures for reporting accidents and ISM Code non-conformities; Princess Cruises meets ISPS requirements
• Chapter XI-2 – Special measures to enhance maritime security and
• procedures for internal and external audits and management
Princess Cruises exceeds SOLAS Regulations reviews.
Princess Cruises exceeds ISM requirements
6 Table of Contents
Regulatory Landscape
Entered into force in 2013, MLC 2006 was designed to become the
fourth pillar of the international regulatory regime for quality shipping STCW requirements include
• standards for the training, qualification and certification of seafarers;
alongside SOLAS, STCW and MARPOL. MLC 2006 establishes • specific standards of competency of crew members; and
standards for seafarers’ rights to decent conditions of work and helps to • methods for demonstrating competency. All eight chapters of STCW apply to
create conditions of fair competition for ship owners. Princess Cruises Carnival Corporation & plc’s operations:
complied with all MLC 2006 requirements prior to the convention’s Chapter I: General provisions
enforcement. Chapter II: Master and Deck Department
Chapter III: Engine Department
Princess Cruises is based in Santa Clarita, California and adheres to the Chapter IV: Radio-communication and radio personnel
Chapter V: Special training requirements for personnel on certain types of ships
state requirement; California Code of Regulations, Title 2, Division 3,
Chapter VI: Emergency, occupational safety, medical care and survival functions
Chapter 1, Articles 4.5–4.8 concerning ballast water management. The Chapter VII: Alternative certification
regulation requires a company to implement a ballast water management Chapter VIII: Watchkeeping
to reduce the threat to the world’s oceans and resultant environmental,
economic and public health impacts from invasive aquatic species, by Princess Cruises meets STCW requirements
addressing the transfer of harmful aquatic organisms and pathogens in
ships’ ballast water.
Princess Cruises is a standing member of the Cruise Lines International MLC 2006, which was ratified in August 2012, entered into force August 2013,
consolidates and updates the International Labor Organization standards into a
Association (CLIA), Carnival Corporation & plc 2017 Annual single document. It
Sustainability Report (page 145) which supports policies and practices • provides comprehensive rights and protection at work for seafarers on a
that foster safe, secure, healthy and sustainable cruise ship environments. global basis;
We send representatives to CLIA committee and subcommittee • aims to be globally applicable, easily understandable, readily updatable and
meetings as industry experts. Additionally we send subject matter uniformly enforced; and
• was designed to become the “fourth pillar” of the international regulatory
experts to International Maritime Organization as representatives of
regime for quality shipping (SOLAS, MARPOL and STCW).
CLIA.
The MLC establishes standards regarding the working conditions of seafarers
All ships that carry more than 13 guests and that call to U.S. ports are also including:
subject to the Cruise Vessel Security and Safety Act (CVSSA), which was • minimum requirements for seafarers, to work on a ship;
• conditions of employment;
passed into law in 2010. We undertook significant efforts to meet CVSSA • accommodation, recreational facilities, food and catering;
requirements. Carnival Corporation & plc 2017 Annual Sustainability • health protection, medical care, welfare; and
Report (page 137). • social security protection.
Princess Cruises meets MLC 2006 requirements
7 Table of Contents
Employees
Princess Cruises’ employees are dedicated to providing memorable Gender Distribution:
vacations to our guests through exceptional service. As an employer that offers equal opportunity to our employees, we hire
both men and women for every department on board our ships and in
We offer outstanding opportunities for land-based and seagoing our shoreside offices. A majority of our shipboard employees are men,
cruise industry careers. We recruit top talent, provide comprehensive which reflects a gender imbalance in the applicant pool for officer and
training, create opportunities for development and advancement and crew positions.
offer a competitive pay and benefits package. We follow the complex
employment laws and regulations that apply to our global operations. Workforce Sourcing Region:
We understand that to succeed, our company must be profitable. We take Our goal is to continue to build a diverse and inclusive workforce.
responsibility for our own performance and use resources wisely. As a truly global company, we embrace cultural diversity. We believe
a variety of backgrounds and perspectives strengthens every area
We employ 19,286 skilled employees around the world, who are dedicated of our operations, from our engagement in port communities to our
to providing guests with a ‘Come Back New’ experience. Despite the interactions with guests.
many miles that separate our headquarters and our vessels, we’re
committed to working together toward this common mission. More than 60 percent of our shipboard employees are from Asia —
specifically, Indonesia, India and the Philippines — where we have
Shoreside Workforce: long-term relationships with local employment agencies. A majority of
Approximately 11 percent of our employees work shoreside in our offices our shoreside employees are from North America, which aligns with the
in Santa Clarita, California; Fort Lauderdale, Florida; Seattle, Washington; location of our in Santa Clarita, California, headquarters.
Southampton, England; and Sydney, Australia and our offices in Asia:
Singapore, Taiwan, China, South Korea, Japan and Hong Kong. A
majority are in full-time positions, while approximately 3 percent are in
part-time or seasonal positions.
Many of our shoreside employees are responsible for selling cruises and
tours, taking reservations and completing the financial and accounting
transactions required for internal and external controls. Dedicated
personnel in the United Kingdom and Australia
are employed by our parent company, Carnival
Corporation & plc, and provide reservations and sales
assistance to support our expanding international
presence.
8 Table of Contents
Employees
Employee Engagement: We hire a majority of our crew members through employment agencies.
Our company has worked with the same primary employment agencies
Since 2014 we have conducted regular town hall sessions where in Indonesia and the Philippines for several decades. Many nationalities
employees have the chance to hear top executives discuss the state of the are represented among our crew. We require our employment agencies
business and plans for the future. These sessions are intended to keep to be certified in line with the Maritime Labour Convention (MLC)
all informed and provide employees an opportunity to connect with the 2006. We also perform our own audits of these agencies on a regular
executives. basis, monitoring their job assignment processes, record keeping, pre
In 2015 small-scale coffee connection sessions with executives were employment screening and post-employment follow-up.
introduced, giving shoreside employees the opportunity to talk directly Detailed crew employment records are maintained in local recruiting
with one or more of our company’s leaders in a casual setting. offices and at our Santa Clarita, California, headquarters. The minimum
In 2016 the We Innovate Ideas intranet site was established, giving age of employment within our fleet is 21, with the exception of cadets
employees the opportunity to share their ideas with senior management. in training, new officers coming from the cadet program and a limited
The ideas summited through the site are being reviewed by the We number of entertainment staff who must be age 18 or older.
Innovate Committee, which works with department leaders to review Shoreside Recruitment:
these ideas, provide feedback and award cash prizes for implemented
ideas. Careers in hospitality and tourism are attractive choices for students in
high school, travel schools and universities. We source and hire full-
RECRUITMENT & RETENTION time roles through our Shoreside Talent Acquisition teams in Human
We maintain high standards for recruitment of our shipboard and Resources. The teams have developed partnerships with colleges and
shoreside employees and often partner with intermediaries to help us universities to recruit high-caliber employees for leading-edge careers
find the best talent. with Princess Cruises. We also support development programs at the
high school and travel school levels. Our internship program continues
Shipboard Recruitment: to grow in popularity.
The recruitment of officers for our shipboard positions is particularly Retention:
challenging due to intense competition for skilled labor in the maritime
industry. To recruit strong candidates, we’ve built relationships with top We strive to promote from within and offer opportunities for
naval schools and merchant marine academies in the United Kingdom, advancement in order to keep our best performers. Many of our
the Philippines and Italy. Our hotel officers and our top-level hotel and employees stay with us for more than 10 years. We proudly celebrate
restaurant employees are recruited from hospitality schools in Europe, multi-decade (20 years-plus) employment anniversaries on a regular
North America and Asia. basis.
9 Table of Contents
Employees
Among shipboard employees, our turnover rate fell from 21.2 percent in Today the CRUISE program is embraced and exemplified by shipboard
2016 to 18.2 percent in 2017. Our turnover rate for shoreside employees and shoreside staff alike and forms the basis for the teamwork and pride
has fluctuated over the past two years between 13 and 14 percent. that have come to define Princess Cruises. Our overarching goal is to
always be The Consummate Host and consistently deliver great service
We believe good communication, recognition, our commitment to to our guests and colleagues. We achieve this when every employee lives
an ethical corporate culture, opportunities to give back and reduced- our core values. The CRUISE program rewards, recognizes, educates and
rate continuing education all significantly enhance our employees’ supports employees with this ultimate goal in mind.
experiences with the company and contribute to employee retention. We
conduct employee engagement surveys of all crew and employees every Additionally, as part of our commitment to support employees in
two years. The data we collect helps to identify and prioritize where to their efforts to contribute to their community, we encourage and offer
direct funding and resources to improve the employee experience. Our programs for those who share their time and resources with nonprofit
employee orientation program, Your Journey, is designed to help guide organizations through donations, board service and volunteerism. Learn
our employees through their career at Princess Cruises. Additionally, we more about our community-building efforts.
connect with newly hired crew after 30 days on board to ensure they are
receiving the tools, training and means to succeed. TRAINING & DEVELOPMENT
Performance Reviews: We do not compromise on things that matter, and this is reflected in
our training and development programs. Shaped in accordance with the
In 2016 we updated our shoreside performance review process. All International Maritime Organization’s (IMO) Convention on Standards
employees are required to set five S.M.A.R.T. goals at the beginning of of Training, Certification and Watchkeeping for Seafarers (STCW), these
the year. The process includes detailed comments per set goal and a programs also address security, health and sanitation, ethics, company
rating per goal. policies and procedures, regulatory requirements and job-specific skills.
In 2016 and 2017, 100 percent of our eligible shipboard and shoreside As graduates of merchant marine academies, our deck and engine
employees completed a performance review. officers are knowledgeable about all aspects of maritime safety and
crisis management. They participate in our training programs alongside
One way we recognize exemplary service is with our Cruise Loyalty & the rest of our employees in order to stay current with our policies and
Recognition programs. The CRUISE program began on our ships in 1996 procedures, which are regularly updated based on enhancements to our
as a way of distinguishing our company from other cruise lines through vessels and changes in regulatory requirements.
excellent customer service. As a result, our scores in guest satisfaction
climbed to new heights, demonstrating our crew members’ dedication to Our training efforts leverage classroom sessions, supervisory guidance,
providing the highest level of service. e-learning programming and toolbox discussions to ensure employees
are informed and prepared. This training is augmented by frequent drills
that enhance skills and assess readiness.
10 Table of ContentsEmployees
Our Learning Management System, Discover U, designed for both Our training program includes e-learning and instructor-led courses on
shipboard and shoreside employees, is a training platform that helps ethical conduct as well as topics related to human rights, labor relations,
ensure training consistency across our large, mobile workforce. customer privacy and social issues such as fraud and corruption, among
Leveraging scenarios, games and visuals, the system provides others. We abide by the Cruise Lines International Association’s (CLIA)
standardized training courses in personal and professional development anti-corruption principles. We have adopted and implemented policies
for every employee at every location and skill level. and procedures to prevent bribery and corruption. Our officers and
employees receive training that is specific to their job responsibilities
We invest in our shoreside and seagoing staff and offer the following and are informed in a timely manner of any changes to policies and
additional programs: procedures through our communication methods.
• Health Wise, our in-house wellness program to help staff stay fit COMPENSATION, BENEFITS & WELLNESS
• Medical care while on board from our dedicated medical team We provide a competitive pay and benefits package that focuses on
• Crew Assistance Program, providing legal and financial counseling performance and results, rewarding employees for meeting specific
as well as help with personal issues goals.
Princess Cruises offers other travel-related benefits to employees, For both our shipboard and shoreside employees, merit pay increases are
supplementary and extended leave, plus reimbursement of certain visa tied to performance discussions which are conducted at the end of each
expenditures. contract or year of service, respectively. Wages for most of our shipboard
employees are negotiated through their unions, and we pay competitive
Carnival Corporation, Princess Cruises’ parent company, owns and wages that are higher than many of these employees would otherwise
operates the Arison Maritime Center, home of the Center for Simulator earn in shoreside jobs abroad or in their home countries.
Maritime Training Academy (CSMART Academy). Opened in July 2009
and located in Almere, Netherlands, outside Amsterdam, the CSMART Our benefits program is designed to be an integral part of our
Academy is a world-class training center for safety and excellence employees’ overall compensation. We offer our eligible employees
in maritime operations. It features the most advanced simulator medical, dental, vision, life and disability insurance coverage and also
equipment, technology, instructional tools and curriculum, which provide the option to add eligible dependents and same-sex domestic
provide participants with a superior maritime training experience that partners to plans at discounted rates.
emphasizes team-based critical thinking, problem solving and decision- Beyond pay and health benefits, another important aspect of our
making. The Center provides rigorous safety training for bridge and compensation package is the opportunity we offer employees to invest in
engineering officers responsible for the navigation and operation of the their future and share in the growth of the company. All employees have
world’s largest fleet of cruise ships. For more information please visit the option of purchasing Carnival Corporation stock at favorable prices.
www.csmartalmere.com We provide a 401K savings plan which is available to all eligible U.S.
shoreside employees and U.S. shipboard officers immediately upon hire,
with company matching contributions subject to vesting rules.
11 Table of ContentsEmployees
We believe all employees should experience our cruise offerings from LABOR RELATIONS & FAIR EMPLOYMENT
the guests’ perspective, so we encourage employees to apply for free or
reduced-fare cruises of up to 14 days anywhere we sail when space is In keeping with our commitment to integrity, honesty and high ethical
available. Our shipboard crew may bring family and friends on board standards, we follow the complex employment laws and regulations
as our guests at no charge in line with our Seagoing Travel Companion that apply to our global operations, including all of the provisions
Policy. These guests stay with crew members in their cabins and enjoy all of the International Maritime Conventions (IMO and ILO) and
of the crew’s privileges, such as access to gyms and other amenities. Flag Administration regulations that are in effect for seafarers. We
also recognize our employees’ rights to freedom of association and
All of our employees are eligible to participate in our education participation in collective bargaining. As of 2017, 100 percent of our
assistance program, offering opportunities to expand job-related shipboard employees were covered by collective bargaining agreements.
knowledge and skills by providing reimbursement of 80 percent of
tuition registration, books and lab fees up to $3,000 per year for full- We maintain excellent working relationships with the unions that
time employees and up to $2,000 per year for part-time employees. represent our employees. The employees’ trade union organizations,
Additionally, our shipboard officers are eligible to participate in our Federazione Italiana Transporti-CISL (FIT-CISL) and Federazione
seagoing study leave program, covering 100 percent of the cost of Italiana Lavoratori Transporti – CIGL (FILT-CGIL), represent the
maritime courses. majority of our crew. Nautilus International represents our British deck
and engine officers and crew.
Our officers and crew members work under contract, typically seven
days per week, between three and 10 months in duration with typically No shoreside employees participate in collective bargaining agreements.
two to three months off between contracts. We have formal systems on Minimum notice periods regarding operational changes are set
board our ships to ensure we properly compensate crew members for according to local rules and regulations and according to standard
the hours they work and that they receive adequate time for rest and Collective Bargaining Agreements (CBA) for seafarers, where applicable.
recreation. We also make every effort to help them strike a positive Concerns and questionable behavior must be reported. You can reach the
work-life balance by providing comfortable living quarters, nutritious Carnival Corp. Hotline within the United States by calling 888-290-5105,
meals, transportation, onboard recreation facilities, shore leave and shore or internationally by calling +1-305-406-5863. If you would prefer to make
excursion opportunities. We also promote events and activities designed a report online, you may do so by going to www.carvivalcompliance.com.
to cultivate personal development, a sense of community, health, Reports may be made anonymously (without giving your name) where
spirituality and other aspects of wellness. allowed by local law. However, keep in mind that doing so makes it more
difficult for our company to conduct a thorough investigation.
12 Table of ContentsEmployees
ETHICS We occasionally receive grievances about labor practices, human rights,
impacts on society (climate impacts), the environment, guest privacy and
Our long-standing policy is to afford equal opportunity for employment guest relations, among others. We evaluate all grievances that we receive.
to all individuals regardless of race; creed; color; religion; national origin; Our goal is to complete their evaluation within a reasonable timeframe
gender; sexual orientation; gender identity and expression; age; marital based on circumstances and legal complexity. However, thorough
status; veteran status; or mental, sensory or physical disability. On investigation may require an extended period of time to close some
board our ships we have complaints complaints.
procedures posted in all crew areas
which explain to our crew how issues Discrimination claims filed internally by shipboard or shoreside
can be raised on these topics. employees or through an external agency, such as the U.S. Equal
Employment Opportunity Commission (EEOC), are investigated
We strive to provide a workplace that thoroughly by the Human Resources Department, assisted by the Legal
is fair to all. All of our employees Department. In 2015 and 2016 there was one employment discrimination
are required to complete our Code of Business Conduct and Ethics lawsuit and one employment discrimination charge filed with the EEOC
training, which serves as a guide to ethical business conduct and covers or state/municipal agency each year. Each of the 2015 and 2016 claims
a wide range of business practices and procedures including employee has been resolved. In fiscal year 2017, there were no filed litigation
responsibilities, anticorruption, conflicts of interest, etc. Our employees employment matters. Of the four agency matters alleging employment
also receive training on how to recognize and report misconduct. All discrimination, three were dismissed and one is pending investigation.
employees are encouraged to report any harassment or discrimination
concerns immediately to their direct supervisor, the Human Resources
Department or the Legal Department. Employees making a report in
good faith are safeguarded from retaliation. In the event an employee
wishes to make a report anonymously, we have provided the ability
to do so online or by phone. All reports of misconduct are thoroughly
investigated and resolved.
In 2016 Princess Cruises was awarded the Ethics Inside® Certification
from the Ethisphere® Institute, which is valid for two years. This highly
regarded seal is the only independent verification of a company’s ethics
and compliance program and practices. The seal is awarded exclusively
to companies that can demonstrate a superior employee and leadership
culture that promotes ethical business practices and that have adequate
compliance systems and programs in place to reasonably prevent
compliance failures.
13 Table of ContentsSafety, Security and Health
At Princess Cruises we never compromise. Safety, security and health • Safeguarding the health of guests, crew, contractors and shoreside
employees
are some of our most important responsibilities.
• Protecting the environment, using resources efficiently and
Hiring competent people, providing and tracking completion of ongoing sustainably
training and adhering to rigorous standards are vital components of • Operating all ships and land-based assets safely to prevent damage,
our safety, security and health strategies. As is the case in all areas of injury or loss of life
our operations, we closely monitor our performance and continuously • Ensuring the security of all
strive for improvement, aiming to exceed regulatory requirements. In
collaboration with our parent company and sister companies, we update Management System:
our policies and procedures on an ongoing basis to leverage learning
opportunities and innovations. We encourage near-miss reporting and Our Safety Management System (SMS) is core to our company
share best practices among our shipboard and shoreside employees, our operations. It goes beyond the requirements of the International
peers and other stakeholders to strengthen the impact of our efforts. Safety Management (ISM) Code to address broader considerations
such as compliance with the Maritime Labour Convention 2006 (MLC
Learn about our regulatory landscape (pages 127-140). 2006), workplace safety, resource conservation and our dedication to
high quality and performance. It’s also subject to ongoing internal
SAFETY and external audits and inspections to ensure the effectiveness of our
policies, procedures and continuous improvement initiatives.
At Princess Cruises our top priority is the safety of our guests and
crew. We meet and often exceed Flag State, U.S. and international In 2015 we updated a significant number of our SMS policies and
regulations that govern our operations as we sail the world’s seas. Our procedures (P&P) after going through a diligent review process led by
officers undergo extensive training, including exacting instruction at our Carnival Corporation & plc, which included all sister companies. This
corporate parent’s Center for Simulator Maritime Training in Almere, the was done not only to standardize a significant number of key procedures
Netherlands. but also to allow each sister company to benefit from the others’ best
practices. The compilation of all revised P&P is called the Health,
In March 2016 the Health, Environment, Safety, Security and Environment, Safety and Security (HESS) management system (MS),
Sustainability ‘HESSS’ Policy Statement was announced. This policy which aims to ensure the consistent application of best practices across
is required by the regulations that govern safety and environmental all sister companies.
operations such as the International Safety Management (ISM) Code
and the ISO Standard for Environmental Management Systems, ISO As the HESS MS evolves, P&P will be constantly reviewed and updated,
14001. The policy states Princess Cruises’ management commitment to and shipboard management will be provided with resources and time to
act in accordance with the following high standards: successfully implement any revised P&P. The HESS-MS is a set of living
documents and subject to ongoing updates as we strive for continuous
improvement.
14 Table of ContentsSafety, Security and Health
Ship Design: by means of thermographic cameras and contact probes. Furthermore,
enhanced CCTV cameras with advanced smoke detection systems
Lloyd’s Register and Bureau Veritas are our maritime classification were rolled out to the fleet in addition to a bilge foam flooding system
societies which establish and maintain guidelines for the construction that required a significant company investment. We are constantly
and maintenance of our ships. researching and implementing further improvements to prevent
machinery-space fires.
Our ships are routinely inspected by the U.S Coast Guard and other
Port State control authorities regarding design, construction, alteration Additionally, advanced navigational, weather monitoring and
and repair. These authorities ensure that we adhere to applicable communication technologies are critical components of our ship design.
international and local laws, standards and regulations. For example, in the event of inclement weather, our ship performance
optimization system enables the captain to adjust route calculations
To ensure structural integrity, our ships utilize double-bottom hull based on forecast information and the ship’s specific characteristics.
construction and employ a collision bulkhead near the bow. Subdivided We’ve also invested in a fleet-wide satellite phone system to ensure
into multiple watertight compartments, our ships can sustain flooding in, constant global coverage.
at a minimum, two adjacent compartments and still remain safely afloat.
As part of our everyday operations, we leverage computerized stability Key Regulations/Codes Purpose
systems to support ship safety. We also have contracts with partners who Safety of Life at Seat (SOLAS) Governs the construction and operation of cruise ships.
can provide stability expertise from the shore on an as-needed basis.
International Regulations for Preventing Sets the rules to be followed by ships and other vessels
Collisions at Sea (COLREG) at sea.
Our ships are equipped with automated fire detection and suppression International Ship and Port Facility Governs the creation of ship security plans, personnel
systems in all cabins, galleys, control rooms, mooring decks and public Security Code and equipment.
areas. Galley exhaust, foam, water mist and CO2 suppression systems U.S. Maritime Transportation Security Act Governs the development of vulnerability assessments
on our ships are designed to isolate, contain and extinguish fires. We and security plans; security patrols; establishing
restricted areas; personnel identification procedures;
continue to invest in adding new fire safety systems and improving access control measures; and/or installation of
existing systems, leveraging proven technologies such as infrared surveillance equipment.
detectors and infrared handheld cameras. Port State Control Allows domestic maritime authorities such as coast
guards to inspect foreign flagged ships calling at the
domestic country’s ports.
In 2014 and 2015 we conducted an initial focus of machinery-space fire
Prevention, Detection and Suppression (PDS) to prevent flammable Standards of Safety, Training, Certification Governs the training that mariners must have to work
and Watchkeeping (STCW) aboard cruise ships.
liquids from leaking and/or spraying and thereby prevent exposure to
Carnival Corporate Health, Environmental, Describes our commitment to protecting our employees’
any potential ignition sources. We accomplished that by fitting spray Safety and Security (HESS) policy and passengers’ health, safety and security.
shields and tape on flanged flammable oil connections. Our second focus
was to eliminate hot spots or potential ignition sources, and we achieved Note: Carnival Corporation & plc 2017 Annual Sustainability Report
that by fitting hot boxes on all engines and monitoring temperature (pages 126–140)
15 Table of ContentsSafety, Security and Health
Employee Training: Emergency Preparedness:
Accident prevention at our company is built on a solid workplace safety Our contingency plans are designed to handle shipboard emergencies
program that uses job hazard analyses, risk assessments and toolbox with immediate and effective support. In case of an actual emergency,
discussions to evaluate and manage risk. We foster a strong safety our ships are equipped with life jackets, lifeboats and emergency
culture that allows our officers and crew members to learn from accidents supplies for every guest and every crew member on board. And all of
when they do occur, reducing the likelihood of recurrences. our ships are equipped with Emergency Low Location Lighting and
broadcast communication equipment, including the Global Maritime
Our commitment to safety is reflected throughout our training and Distress Safety System (GMDSS).
development programs. Shaped in accordance with the Convention on
Standards of Training, Certification, and Watchkeeping for Seafarers Since 2010 we’ve implemented mandatory shipboard safety briefings
(STCW), these programs also address emergency preparedness, for all guests prior to setting sail. Upon boarding our ships, guests and
security, health and sanitation, ethics, company policies and procedures, crew members also receive written safety instructions in their preferred
regulatory requirements and job-specific skills. In addition, our language. When a significant number of guests speak a language other
employee-led Safety committees are focused on sharing best practices to than English, we conduct the live safety briefings in multiple languages.
drive continuous improvement. For more information, view the Employee We provide written safety information and a copy of the lifeboat drill
Training & Development section. safety speech to our guests who are hearing impaired.
A significant portion of our employee training program content is In the rare event of an emergency situation on board one of our ships,
dedicated to the prevention of shipboard accidents. Any injury sustained Princess Cruises has an Emergency Response Operations Center
by a shipboard employee or contractor must be reported according to (EROC) located at our headquarters in Santa Clarita.
our guidelines, whether it occurs during working or rest hours, on board
the ship or during shore excursions. In 2016 a total of 260 incidents Periodic announced and unannounced drills are conducted at the center
were reported among our shipboard employees, impacting less than 2 to ensure shoreside teams are fully prepared to assist ships in cases
percent of our workforce. We continue to strive for improvement in this of severe weather or emergency. The EROC is a state-of-the-art center
area. In 2017 a total of 98 incidents were reported among our shipboard and can handle an emergency anywhere in the world, as it is equipped
employees, impacting less than 1 percent of our workforce. with virtual command center technology, multiple communication lines
and digital data display capabilities. We also collaborate with our sister
brands and local and foreign authorities and providers.
16 Table of ContentsSafety, Security and Health
SECURITY In addition to the specialized training we provide for security teams, we
require each and every shipboard employee to participate in security
As is the case with our safety programs, we’ve developed security training in accordance with the provisions of STCW and ISPS, which
standards that go beyond regulatory requirements to protect our guests includes Human Rights training. We also conduct regular security drills
and employees. We will not go to a port where our guests or crew would and exercises in coordination with government agencies.
be presented with an unreasonable risk to their safety and security.
Nonetheless, we are operating in a changing world which can at times The STCW Manila Amendments became effective Jan. 1, 2012, with a
present situations where we will be compelled to cancel a port call or transition period until 2017, when all seafarers must be certified and
re-route a ship. This is done only after careful consideration and in an trained according to these new standards. In 2015 we required all of our
abundance of caution to ensure the continued safety and security of shipboard employees to participate in mandated security awareness
our guests, crew and vessels. Our Security operations are managed training. This training was approved by our flag state and conducted on
and coordinated by our shoreside Fleet Security team. Fleet Security board by our experienced security teams.
is composed of a group with significant law enforcement, military and
analytical experience. They provide support and guidance to the fleet Technology & Tools:
in dealing with crime and general security issues on board, monitor and
review global security issues, and provide security-related information We regularly upgrade our shipboard screening and surveillance systems
and recommendations to various corporate departments and executives. to leverage technology advancements. These systems enable us to
effectively monitor and control ship access and screen guests, crew
Shipboard Security Teams: members and luggage.
Our ships are staffed with dedicated security teams responsible for We also ensure all ships are equipped with the necessary tools for
managing systems and enforcing policies around the clock. Led by internal and external communication in the event of a security incident.
officers who have extensive experience in law enforcement and maritime
security as well as specialized training in investigations and emergency Privacy:
planning, our shipboard security teams are fully certified in accordance
with the provisions of STCW, the Maritime Transportation Security Act We respect the privacy of our guests and crew, and we have
(MTSA), the International Ship and Port Facility Security (ISPS) Code implemented policies and procedures designed to safeguard their
and the Cruise Vessel Security and Safety Act (CVSSA). personal information. We are compliant with U.S. and European Union
requirements, including standards for protecting information related
to the acceptance of credit and debit cards for payment. We also take
steps to ensure the privacy of our princess.com website users. Our
online privacy policy discloses how we collect, protect, use and share
information gathered on our website.
17 Table of ContentsSafety, Security and Health
HEALTH With regard to public health, our certified and well-trained subject matter
experts focus on continually improving disease surveillance, outbreak
Our onboard medical facilities meet or surpass standards established reporting and data analytics and promoting high public health standards
by the American College of Emergency Physicians. We are inspected on board our vessels. This team responds to norovirus and influenza
regularly by the U.S. Centers for Disease Control and Prevention as part activity and is also prepared for other public health threats. As is the
of its Vessel Sanitation Program. case in all other areas of the Health Services Department, the public
health team is currently working toward the standardization of disease
Our public health program is built around worldwide public health prevention and control activities. Plans also include standardizing
and sanitation regulations and best practices. The program and its internal vessel inspection programs and public health training.
implementation are monitored internally by public health specialists and
externally by national and port health authorities. Vessel Sanitation:
Health emergencies and communicable disease outbreaks can affect All of our ships that call at U.S. ports voluntarily participate in
guests’ vacations, disrupt onboard services and shorten shipboard unannounced, twice-yearly inspections by the Centers for Disease
careers. Therefore, the capability to manage evidence-based health Control and Prevention (CDC) Vessel Sanitation Program (VSP),
interventions is essential. The need for robust health programs at sea which aims to prevent and control the introduction, transmission and
is further highlighted by the ever-increasing complexity of the cruise spread of illnesses on cruise ships. We proactively share our experience
industry business model. Ships have become larger and now carry and expertise in this area by contributing to the CDC’s periodic VSP
populations that equal the size of small cities. Itineraries have become operations manual updates, the most recent of which concluded in 2018.
more remote, which can decrease access to well-equipped shoreside Areas of inspection include medical facilities, potable water systems,
health facilities. Markets have expanded, potentially exposing guests and recreational water facilities, galleys and dining rooms, child activity
crew to new illnesses. centers, hotel accommodations, ventilation systems and common spaces.
To pass an inspection, ships must score a minimum of 86 out of 100
Furthermore, guests and crew have become increasingly sophisticated points.
in terms of their expectations for evidence-based, patient-centered and
culturally sensitive health services and facilities. Responding to these In 2017 20 ship inspections were conducted, with three scoring 100
new challenges requires highly qualified onboard health practitioners points, 16 scoring 86–99 points and one scoring less than 86 points.
as well as shoreside professionals with expertise in multiple health Immediate corrective actions were implemented on the ship that
disciplines. received a less-than-satisfactory score.
18 Table of ContentsEnvironment
A t Princess Cruises we are committed to environmental practices that
set a high standard for excellence and responsibility and help preserve
the marine environment. The ocean provides our livelihood and serves
as the home for more than 20,000 of our employees.
We meet environmental requirements, and in many cases, we go beyond
what is required by law. We also continuously work to identify ways
we can raise the level of our environmental performance. In 1993 we
launched a holistic environmental program called Planet Princess to
encourage and inspire our crew members and guests to be good stewards
of our environment and the oceans.
MANAGEMENT SYSTEM
All of our shipboard employees have environmental responsibilities
incorporated into their duties. They receive environmental training We manage the environmental aspects of our operations through our
during their first day on board and are supported by our shoreside ISO 14001:2015 certified Environmental Management System (EMS).
employees who develop policies and procedures and facilitate The EMS provides a framework for the fleet’s interactions with the
communication on an ongoing basis across the fleet. environment, and the Environmental Management System Manual
illustrates how we meet the requirements of ISO 14001 and provides a
In addition, each ship in our fleet has a full-time Environmental Officer road map to all required procedures.
who oversees environmental compliance and implementation of
procedures. The Environmental Officer reports to the ship’s Captain We have aligned our EMS with the comprehensive management system
and has a direct line of communication to our shoreside environmental established by our parent company, Carnival Corporation & plc. This
management team. We share common goals, despite the many miles that system, known internally as the Health, Environment, Safety and Security
separate our employees, and we embrace opportunities for continuous (HESS) Management System, aims to ensure the consistent application
improvement through annual corporate conferences and training at the of best practices across all corporate lines.
Center for Simulator Maritime Training (CSMART ), senior management
meetings, our quarterly HESS & Sustainability Newsletter, monthly We’re working to integrate sustainable solutions into all areas of
phone calls with Environmental Officers and numerous informal our business, with a strategic focus on optimizing our operations to
communications. maximize efficiency; exploring new ideas and technology to improve
performance; and strengthening our data collection, analysis and
management processes.
19 Table of ContentsEnvironment
We established the following environmental goals with a target date We adhere to local, national and international environmental laws and
of 20201: regulations in the jurisdictions where our ships sail. Our environmental
practices comply with or exceed the requirements of the International
Objectives and Targets Maritime Organization (IMO). The Convention for the Prevention
Objective Units of Measure Results of Pollution from Ships — also known as MARPOL — establishes
regulations to protect the maritime environment from pollution that is
Meet or beat the planned metric tonnes of fuel J ACHIEVED
fuel quantity2 either accidental or the result of routine operations.
Reduce non-recycled waste
generated by our shipboard
liters of non-recycled
waste per person per day
4 ON TRACK Learn about our regulatory landscape (Pages 126–140).
operation by 5 percent below 2016
Princess Cruises has won many environmental awards for its operations
on the west coast of the United States for air emission reductions,
Decrease Water Consumption by
5 percent below 2010
liters per person per day 4 ON TRACK wastewater treatment and recycling and disposal programs for solid
waste. Learn more about our Awards and Accolades.
Developing, deploying and
operating Exhaust Gas Cleaning
ships with EGCS 4 ON TRACK
Systems (EGCS)
ENERGY & EMISSIONS
Increase cold ironing coverage ships with cold ironing J ACHIEVED Responsible energy management is an important component of our
sustainability strategy — it’s one of the most powerful levers we have to
reduce our environmental footprint while supporting the bottom line.
1
The target date is FY2020 for all goals listed above except fuel consumption. That target is set on a
year-over-year basis. We’re making progress in this area by ensuring our ships are designed
2
The objective changed from Fuel Consumption Rate measured in grams of fuel used/available and operate as efficiently as possible while identifying opportunities to
lower berth (ALB)* nautical miles traveled (NMT) in 2015 to “Meet or beat the planned fuel quantity” reduce emissions through the use of new technology.
measured in metric tonnes of fuel.
Direct Energy — Fuel Use:
We strive to save fuel — the primary source of energy used by our fleet —
by purchasing new, more fuel-efficient ships, investing in fuel efficiency
technology in the existing fleet, selecting itineraries that allow optimum
ship speed, maintaining equipment in accordance with manufacturers’
specifications, circulating monthly fuel use data to support awareness
across ships and sharing fuel conservation best practices.
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